Final

2000 MOBILEHOME BILL LIST

Major Mobilehome & Related Bills in the California State Legislature

compliments of

TREES & DRIVEWAYS

Background: The Mobilehome Residency Law (MRL) provides that a homeowner in a mobilehome park shall not be charged a fee for other than rent, utilities and incidental reasonable charges for services actually rendered. The MRL also specifies that the park management may include reasonable landscaping requirements in the park rules and regulations and charge a homeowner a reasonable fee for the maintenance of the space on which the mobilehome is located if the homeowner fails to maintain the space as required by park rules. A 1992 state Department of Housing and Community Development (HCD) legal opinion took the position that the park is responsible for the maintenance (including removal) of trees on a mobilehome space which constitute a fixture to the land, unless responsibility is shifted to the homeowner through a lease or rental agreement. In recent years, many parks have changed their rental agreements or leases to include a clause requiring the homeowner to assume this responsibility. Who is responsible for paying for the costs to prune or remove large trees and the damage which root systems cause to driveways and mobilehome foundations is a common problem in mobilehome parks and a frequent complaint from mobilehome owners.

AB 862 (Correa) Parks to be Responsible for Trees and Driveways

Requires mobilehome park operators, not homeowners, to be solely responsible for the trimming and removal of any tree on any space, including the cost thereof, upon the determination of management, or notice by a homeowner to management, that the tree is a health and safety violation. In the event of a dispute, the management or the homeowner may request an inspection by the enforcement agency (HCD or local government) to determine whether the tree poses a violation of health and safety. The bill requires the management to be responsible for the costs of trees in park common areas and repair, maintenance, replacement or paving of all driveways installed by park management, including repair caused by root damage to driveways and foundation systems, but requires homeowners to be responsible for these driveway expenses on homeowner installed driveways. The bill provides that these provisions shall not apply to alter terms of rental agreements entered into prior to January 1, 2001, until those leases are renewed or extended. The bill also prohibits a homeowner from planting a tree on his/her space without obtaining the written authorization of park management.

STATUS: Passed Assembly (46-24); passed Senate (21-11). Signed by Governor, Chapter 423, Statutes of 2000, effective January 1, 2001.

Support: CMRAA, GSMOL; Opposition: CMPA
 

MOBILEHOME PARK FIRE SAFETY

Background: The Department of Housing and Community Development (HCD) has jurisdiction to license and inspect mobilehome parks throughout the state under the Mobilehome Parks Act. A fatal fire in a mobilehome park in Compton in December, 1999, where local firefighters discovered park fire hydrants had no water, brought to light the fact that older pre-1966 mobilehome parks are not required under the Act to have fire hydrants to help contain fires in parks (by regulation pre-1968 parks). Moreover, local jurisdictions that are responsible for fighting fires cannot impose their own local fire code requirements in mobilehome parks unless they agree to take on enforcement of the entire Mobilehome Parks Act, not just fire code enforcement, from the state. A February, 2000 hearing of the Senate Select Committee on Mobile and Manufactured Homes determined that even newer parks with hydrants under state jurisdiction are not required to maintain their fire hydrants and the Department of Housing and Community Development does not test or inspect hydrants to assure that they work.

SB 1627 (Dunn) Enhances Fire Prevention Enforcement in Parks

Requires HCD to adopt and enforce standards for maintenance and annual inspection of fire hydrants in mobilehome parks by January, 2002. The bill also allows local governments to enforce fire prevention standards for mobilehome parks that are equal to or more stringent than the Mobilehome Parks Act with regard to fire hydrants, equipment access, debris and combustible materials abatement, parking, lot identification and burglar bars, without having to take on enforcement of the entire Parks Act.

STATUS: Passed Senate, (24-13), Passed Assembly (41-25). Signed by Governor, Chapter 433, Statutes of 2000, effective January 1, 2001.

Support: CMHI, CMRAA, California Professional Firefighters, California Fire Chiefs Association, California Fire Districts Association, California Rural Legal Assistance, City of Compton, City of Garden Grove, City of Stockton, County of Los Angeles, GSMOL, League of California Cities, Western Center on Law and Poverty.

Opposition: CMPA, WMA.

MOBILEHOME RESALE UPGRADES

Background: Most mobilehome owners own their homes in mobilehome parks and rent the space on which the home sits from the park. "Mobilehome" is to some degree a misnomer, as most mobilehomes are not moved but bought and sold in place. But when a home in a park is resold, it is a three party transaction. Not only must the buyer and seller agree, the park owner also has the right to approve or reject the buyer for park residency. This gives rise to a number of problems, which, despite existing regulation by the Mobilehome Residency Law, has led to numerous complaints from homeowners over the years. One common complaint is that some parks insist that older mobilehomes must be removed upon resale from the park, or that sellers or buyers must make costly improvements on the mobilehome as a condition selling the home if it is to remain in the park. To avoid the management’s claiming the home is in "significantly run-down condition or in disrepair," these repairs may include anything from new paint to requiring new skirting, siding, awnings or even various interior upgrades. Homeowners say these requirements are hard to challenge and make it difficult and costly for them to sell their homes.

AB 2239 (Corbett) Limits Upgrades that Can Be Required on Resale of Home in the Park

Limits the kinds of repairs that a park owner may require be made to a mobilehome that is resold in the park. The bill limits these upgrades to repairs and improvements on the exterior of the home, or its exterior accessories or appurtenances, which are required by state law or local ordinance or park rules and regulations that require implementation of those laws and ordinances. The bill also requires the management to provide a copy of the required repairs or improvements 10 business days after a request for the information from the homeowner.

STATUS: Passed Assembly (74-0); passed Senate (22-13); signed by Governor, Chapter 554, Statutes of 2000, effective January 1, 2001.

Support: CMRAA, GSMOL. Opposition: CMPA, WMA.
 

PETS IN PARKS

Background: Current law provides that a senior who resides in publicly subsidized housing may keep no more than two pets, as defined, in residence. Under the Mobilehome Residency Law, the park management may not impose a fee on a homeowner for keeping a pet in the park and if a rule prohibiting pets in the park is implemented, the new rule shall not prohibit residents from continuing to keep pets now residing in the park. However, when the pet dies, the resident cannot replace the pet. The management also may not prohibit residents from keeping guide, signal or service dogs in the park. Some studies have shown that senior citizens and the disabled, particularly single persons, benefit from the companionship of a pet.

AB 860 (Thomson) Right of Residents to Have One Pet

Prohibits mobilehome parks or common interest developments (CID’s), through their rental agreements, rules and regulations or conditions, covenants and restrictions, from denying a homeowner or resident the right to have at least one pet, subject to reasonable rules and regulations, and applicable to park leases or CID governing documents entered into, renewed, or amended, after January 1, 2001.

STATUS: Passed Assembly (59-18); passed Senate (25-9). Signed by the Governor, Chapter 551, Statutes of 2000, effective January 1, 2001.

Support: AARP, CAR. Opposition: CMPA, WMA
 

HOMEOWNERS & RENTERS ASSISTANCE

Background: First enacted in 1968, the Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law provides property tax and renters tax relief to seniors over 62 and the totally disabled. From 1989 through 1998, this assistance was limited to those with annual household incomes of less than $13,200 in inverse proportion to their income. In 1998 the Legislature and the Governor agreed to update the program by increasing the annual household income cap to $33,360 for the 1999 calendar year, making corresponding changes in income brackets, and providing for indexing to keep up with inflation. Claimants, including mobilehome owners renting spaces in mobilehome parks, may file for either property tax relief (if their mobilehome is subject to property taxes) or rent relief, between May 15 and August 31 with the state Franchise Tax Board.

SB 1664 (Karnette) One-time Augmentation for Homeowner's and Renter's 2000 Claims

This bill provides a one-time increase of 150% in homeowners and renters assistance payments for qualifying individuals, including mobilehome owners, for the 2000 calendar year and moves the filing date of the claims for assistance from May 15 through August 31 to July 1 through October 15. For the lowest income persons the maximum homeowners’ property tax assistance would be increased from $326 to $816 and the maximum renters assistance increased from $240 to $600 for the year 2000 only. Urgency Clause.

STATUS: Passed Senate (34-0); passed Assembly (76-0); signed by the Governor, Chapter 60, Statutes of 2000, effective June 30, 2000.

Support: Unknown. Opposition: Unknown
 

MOBILEHOME PARK PROPANE COSTS

Background: In mobilehome parks, utility service is normally provided by the park owner to individual mobilehome spaces through a sub-meter system, with the public utility serving electric or gas to the park "master meter" but not individual park spaces. In master meter parks utility rates levied by the park on residents cannot exceed rates that would be levied if a public utility regulated by the Public Utilities Commission (CPUC) served the residents directly.

In less urbanized areas, propane gas (LPG), rather than natural gas, is often used for cooking and heat. Many of these parks have master tanks with a propane distribution and sub-meter system. Park owners normally purchase propane from a distributor, who delivers it to the park-owned tanks, and the park bills the residents for LPG along with their rent. Some parks, however, have contracted with propane companies to bill residents directly, not through the park.. LPG rates are not subject to CPUC regulation, and mobilehome owners in rural and mountain areas have complained about being overcharged by some park owners for LPG.

Legislation requiring park owners to post their LPG costs and placing a 10% over cost cap on the price which park owners can charge homeowners for LPG was passed by the Legislature in 1990, 1991, and 1998 but vetoed each time by the Governor. SB 476 (Chesbro), a similar bill, was passed and signed by the Governor in 1999, effective 1/1/2000. To circumvent SB 476, some parks have told their homeowners they can buy their own individual propane tanks and contract individually with whomever they like for propane. But the state’s Mobilehome Parks Act does not allow tanks to be filled within 10 feet of a home, and propane tanks up to 500 gallons must be located at least 10 feet from any home, building or source of ignition. Since setback requirements for mobilehomes in parks are often no more than 6 feet from a neighboring home, as a practical matter most homeowners can’t install their own LPG tanks and in reality have no alternative.

SB 1612 (Chesbro) Clarifies Propane Rate Law in Mobilehome Parks

Clarifies that the 10% above cost limitation on park propane also applies in mobilehome parks where residents, even if they could purchase LPG from an alternative source, cannot install their own propane tanks because of code setback restrictions or other local, state and federal regulations.

STATUS: Passed the Legislature, Signed by the Governor, Chapter 232, Statutes of 2000, effective January 1, 2001.

Support: GSMOL. Opposition: WMA

MOBILEHOME DEALERS

Background: The Department of Housing and Community Development (HCD) licenses and regulates mobilehome and manufactured home dealers and salespersons. The Manufactured Home Recovery Fund was established by the Legislature in lieu of dealer bonding requirements to provide relief to mobilehome buyers who are defrauded in the sale of a home on which they have obtained a court judgement but where the dealer is judgement proof. The fund has a $40,000 limit on individual claims.

AB 2256 (Correa) Increases Claim Limits for the Manufactured Home Recovery Fund

Makes minor modifications in requirements for licenses of mobilehome and manufactured home dealers. The bill also increases from $40,000 to $75,000 the maximum payment for cases involving failure to honor mobilehome warranties or fraud or misrepresentation by a dealer in the sale of a mobilehome under the Recovery Fund.

STATUS: Passed Assembly (75-0); passed Senate (39-0). Signed by the Governor, Chapter 555, Statutes of 2000, effective January 1, 2001.

Support: HCD. Opposition: Unknown

MOBILEHOME PARK "PASS THROUGH" FEES"

Background: The Mobilehome Residency Law (MRL), which governs the park owner-homeowner relationship in a park, provides that a mobilehome park rental agreement shall specify that the management is responsible to provide and maintain improvements in the park common areas in good working order and condition. The MRL also provides that a homeowner shall not be charged a fee for other than rent, utilities and incidental reasonable charges for services actually rendered. The MRL specifies that any fee not listed in the rental agreement cannot be imposed without a 60-day notice and must be separately stated on the homeowner’s monthly billing. The MRL further provides that no fees shall be charged to residents for members of the immediate family, guests who stay no longer than 30 days, enforcement of park rules, and for pets unless the park furnishes pet facilities. Lastly, the MRL also prohibits parks from imposing fees on homeowners through the amendment of park rules and regulations that are not listed in the park rental agreement.

In recent years, many mobilehome parks, in addition to rents, have added so-called "pass through" fees to the homeowner’s monthly billing for specified costs of park operation and maintenance, such as resurfacing the park roads, landscaping, or repairing the roof on the park clubhouse. Rent increases and the imposition of fees on homeowners are the most common complaints heard from park residents. Homeowners contend that by imposing both rent increases and fees, park owners are "double dipping" for the costs of operating the park. But park owners argue that "pass throughs" encourage park owners to make improvements in the park for everyone’s benefit and that homeowners should share in the amortized cost of the park upkeep.

AB 479 (Wiggins) Prohibits Pass-Through Fees for Park Maintenance

Provides that park rental agreements must specify that the park management shall maintain physical improvements in the park common areas through revenue derived from rents rather than extra fees.

STATUS: Passed Assembly (41-29); passed Senate (22-12); Assembly refused to concur in Senate amendments; Reconsideration granted. Died on Assembly Floor on last day of session.

Support: GSMOL. Opposition: CAR, CMHI, CMPA, WMA.

MOBILEHOME PARK LEASES & RENTAL AGREEMENTS

Background: The Mobilehome Residency Law governs landlord-resident relations in mobilehome parks and requires, among other provisions, that residency in a park be governed by a rental agreement or lease. Over the years, legislators have received complaints from homeowners about various one-sided or overreaching provisions of park leases. In some parks,buyers of homes in the park who are required to sign a rental agreement before they can move in are allegedly not given copies of the leases in advance of the time they must sign them. Homeowners and buyers alike are often required to sign leases that include binding arbitration clauses included within the leases, signature of which is a condition of approval of the lease by the management and often a condition of tenancy in the park.

SB-1570 (Dunn) Requires Advance Copies of Leases/ Independent Arbitration Documents

Requires parks to provide purchasers of homes in the park with a copy of a rental agreement or lease 10 days in advance of his/her required signature or at the time of application for residency with the amount of the rent filled in. The bill also provides that park owners cannot require the homeowner or registered or legal owner of a mobilehome in the park to sign an arbitration agreement or clause as a condition of tenancy and that the arbitration provision must be an independent document, not tied to the rental agreement.

STATUS: Passed Senate (23-13); Passed Assembly (43-26); vetoed by Governor.

Support: GSMOL, CMRAA, CAOC. Opposition: CMPA, WMA. 

SUBLETTING MOBILEHOMES IN THE PARK

Background: Mobilehome owners living in mobilehome parks normally own their own homes but rent the space on which the home is located. Most parks do not allow homeowners to sublet their homes to others, even in cases where they cannot sell the home and must move because of a sudden job change, illness or other circumstances. Since the park has the power to approve or deny a buyer of a home in the park, anti-subletting policies often put the selling homeowner in a "squeeze", when the park will not approve a buyer, not allow the homeowner to sublet, and still, of course, require the homeowner to pay rent to keep the vacant home on the space. In this manner some parks are allegedly able to buy out the homes for less than market value. Some park owners, who have bought out homeowners, thereafter rent the homes and spaces as one unit, like a conventional apartment. Mobilehome owners argue that this practice, nicknamed "double-renting," can disenfranchise mobilehome owners by changing the nature of the park to that of a more transient population, depresses home values for homeowners still remaining in the park, and allow park operators, in some cases, to circumvent the Mobilehome Residency Law.

SB 1905 (Sher) Permits Homeowner Subletting if Park Rents Homes It Owns in the Park

Provides that a mobilehome park may adopt rules permitting or prohibiting renting or subletting of homes by homeowners in the park. If the park allows subletting, the park can adopt reasonable rules that homeowners must follow in subletting, including qualifications for those who sublet. But if the park prohibits mobilehome owners from subletting their homes, the park cannot, by the same token, rent out the homes that it owns in the park, except to the management and park employees.

STATUS: Passed Senate (23-13). Died in the Assembly Housing and Community Development Committee when it failed passage by one vote (4-1).

Support: GSMOL, CMRAA. Opposition: CMPA, WMA.

MOBILEHOME OMBUDSMAN

Background: Prior to 1986 there was no state office or agency that coordinated or acted as a clearinghouse for mobilehome complaints. Legislation that year established the Department of Housing and Community Development’s (HCD’s) Mobilehome Ombudsman to deal specifically with the resolution of mobilehome complaints relating to mobilehome registrationand titling, mobilehome sales, financing, warranties, mobilehome accessories, mobilehome and mobilehome park inspections and the Mobilehome Residency Law. However, due to opposition to the bill, the Ombudsman was specifically prohibited from negotiating, mediating or providing legal advice on matters relating to mobilehome park rents, rental agreements, leases or
disputes arising therefrom. A pilot program that was inaugurated with the use of surplus funds from the Mobilehome Revolving Account, and the Ombudsman was later made a permanent program in 1989. After fiscal year 1989-90, specific funding for the program was no longer provided in the budget but Ombudsman activities were absorbed within HCD’s existing budget. In recent years, mobilehome owners have criticized the Mobilehome Ombudsman as ineffective and unresponsive in following-through on complaints.

SB 619 (Dunn) Ombudsman Expansion, Funding and Survey

Appropriates $145,000 each year for three years from a surplus in the Mobilehome Park Purchase Fund to expand the present Mobilehome Ombudsman program. Specifically requires the Ombudsman to designate at least 2 people to take complaints and calls, review correspondence and follow-through on the resolution of those complaints. Expands the types of complaints the Ombudsman shall take to include those dealing with mobilehome foundation and Earthquake Resistant Bracing Systems (ERBS) and the conversion of mobilehome parks to resident ownership. The bill also requires the Ombudsman to conduct a survey of specified mobilehome statistics and make an annual report to the Legislature on the Ombudsman’s activities.

STATUS: Passed Assembly (77-0); passed Senate, (40-0). Vetoed by Governor.

Support: CMRAA, GSMOL. Opposition: Unknown.

AB 2605 (Cardenas) Grant Program for Smoke Detectors in Mobilehomes

Requires HCD to establish a grant program for community-based organizations to distribute fire extinguishers, smoke detectors and educational fire safety tips to residents of mobilehome parks where at least 50% have incomes below 75% of the statewide median income. Earlier provisions of the bill that switched jurisdiction over mobilehome parks from HCD to local governments and required all mobilehome parks in the state to install fire hydrants by 1/01/2005 were deleted.   

MOBILEHOME SALES TAX

Background: The sales and use tax applies to most manufactured homes and mobilehomes in California. Used mobilehomes that remain on the Vehicle License Fee (VLF) system are subject to the full sales tax. Used mobilehomes that are subject to local property taxes are not subject to the sales tax. New manufactured homes and mobilehomes are subject to the sales tax less a 25% exemption from the gross sales price. Modular homes have a 40% exemption from the gross sales price for sales tax purposes.

AB 1737 (Correa) Conforms Mobilehome Sales Tax to Modular Home Sales Tax

Increases the 25% exemption of the gross sales price on mobilehomes and manufactured homes, for sales tax purposes, to 40%.

STATUS: Died on Assembly Appropriations suspense file.

Support: CMHI. Opposition: Unknown
 

Legend:

AARP = American Association of Retired Persons

CAR = California Association of Realtors

CID = Common Interest Developments

CMHI = California Manufactured Housing Institute (dealers, manufacturers)

CMPA = California Mobilehome Park Owners Alliance

CMRAA = California Mobilehome Research & Action Association (homeowners)

CAOC = Consumer Attorneys of California

GSMOL = Golden State Mobilehome Owners League (homeowners)

HCD = California Department of Housing and Community Development

WMA = Western Manufactured Home Communities Association (park owners)

Prepared by the Senate Select Committee on Mobile & Manufactured Homes as of 10/1/2000.

# # #

STATUS: Died on Assembly Appropriations suspense file.

Support: GSMOL, Opposition: Unknown