BILL NUMBER: AB 1287 CHAPTERED 10/11/03 CHAPTER 767 FILED WITH SECRETARY OF STATE OCTOBER 11, 2003 APPROVED BY GOVERNOR OCTOBER 10, 2003 PASSED THE ASSEMBLY AUGUST 28, 2003 PASSED THE SENATE AUGUST 25, 2003 AMENDED IN SENATE JULY 17, 2003 AMENDED IN SENATE JULY 10, 2003 AMENDED IN SENATE JUNE 23, 2003 AMENDED IN ASSEMBLY MAY 22, 2003 AMENDED IN ASSEMBLY APRIL 22, 2003 AMENDED IN ASSEMBLY MARCH 25, 2003 INTRODUCED BY Assembly Member Lieber FEBRUARY 21, 2003 An act to amend Section 798.71 of, and to add Section 798.74.5 to, the Civil Code, relating to mobilehomes. LEGISLATIVE COUNSEL'S DIGEST AB 1287, Lieber. Mobilehome parks: information for prospective tenants. Existing law, the Mobilehome Residency Law, governs tenancies and residency in mobilehome parks. Among other things, the law authorizes the management to require the right of prior approval of a purchaser of a mobilehome that will remain in the park. This bill would, beginning October 1, 2004, require the park management to provide prospective homeowners with a separate document containing specified information about tenancy in a mobilehome park, within 2 business days of receiving a request for an application for residency, as specified. The bill would further require management to provide a prospective homeowner, upon request, with a copy of the rules and regulations of the park and with a copy of the Mobilehome Residency Law. This bill would also specify that management may require that a homeowner advise management in writing that his or her mobilehome is for sale. The bill would provide that failure to comply with that requirement would not invalidate a transfer. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 798.71 of the Civil Code is amended to read: 798.71. (a) (1) The management may not show or list for sale a manufactured home or mobilehome without first obtaining the owner's written authorization. The authorization shall specify the terms and conditions regarding the showing or listing. (2) Management may require that a homeowner advise management in writing that his or her mobilehome is for sale. If management requires that a homeowner advise management in writing that his or her mobilehome is for sale, failure to comply with this requirement does not invalidate a transfer. (b) The management shall prohibit neither the listing nor the sale of a manufactured home or mobilehome within the park by the homeowner, an heir, joint tenant, or personal representative of the estate who gains ownership of a mobilehome in the mobilehome park through the death of the owner of the mobilehome who was a homeowner at the time of his or her death, or the agent of any such person other than the management, nor require the selling homeowner, or an heir, joint tenant, or personal representative of the estate who gains ownership of a mobilehome in the mobilehome park through the death of the owner of the mobilehome who was a homeowner at the time of his or her death, to authorize the management to act as the agent in the sale of a manufactured home or mobilehome as a condition of management's approval of the buyer or prospective homeowner for residency in the park. (c) Nothing in this section shall be construed as affecting the provisions of the Health and Safety Code governing the licensing of manufactured home or mobilehome salespersons or dealers. SEC. 2. Section 798.74.5 is added to the Civil Code, to read: 798.74.5. (a) Within two business days of receiving a request from a prospective homeowner for an application for residency for a specific space within a mobilehome park, if the management has been advised that the mobilehome occupying that space is for sale, the management shall give the prospective homeowner a separate document in at least 12-point type entitled "INFORMATION FOR PROSPECTIVE HOMEOWNERS," which includes the following statements: "As a prospective homeowner you are being provided with certain information you should know prior to applying for tenancy in a mobilehome park. This is not meant to be a complete list of information. Owning a home in a mobilehome park incorporates the dual role of "homeowner" (the owner of the home) and park resident or tenant (also called a "homeowner" in the Mobilehome Residency Law). As a homeowner under the Mobilehome Residency Law, you will be responsible for paying the amount necessary to rent the space for your home, in addition to other fees and charges described below. You must also follow certain rules and regulations to reside in the park. If you are approved for tenancy, and your tenancy commences within the next 30 days, your beginning monthly rent will be $____ (must be completed by the management) for space number ____ (must be completed by the management). Additional information regarding future rent or fee increases may also be provided. In addition to the monthly rent, you will be obligated to pay to the park the following additional fees and charges listed below. Other fees or charges may apply depending upon your specific requests. Metered utility charges are based on use. ______________________________________________________________________ _______ ______________________________________________________________________ _______. (Management shall describe the fee or charge and a good faith estimate of each fee or charge.) Some spaces are governed by an ordinance, rule, regulation, or initiative measure that limits or restricts rents in mobilehome parks. Long-term leases specify rent increases during the term of the lease. By signing a rental agreement or lease for a term of more than one year, you may be removing your rental space from a local rent control ordinance during the term, or any extension, of the lease if a local rent control ordinance is in effect for the area in which the space is located. A fully executed lease or rental agreement, or a statement signed by the park's management and by you stating that you and the management have agreed to the terms and conditions of a rental agreement, is required to complete the sale or escrow process of the home. You have no rights to tenancy without a properly executed lease or agreement or that statement. (Civil Code Section 798.75) If the management collects a fee or charge from you in order to obtain a financial report or credit rating, the full amount of the fee or charge will be either credited toward your first month's rent or, if you are rejected for any reason, refunded to you. However, if you are approved by management, but, for whatever reason, you elect not to purchase the mobilehome, the management may retain the fee to defray its administrative costs. (Civil Code Section 798.74) We encourage you to request from management a copy of the lease or rental agreement, the park's rules and regulations, and a copy of the Mobilehome Residency Law. Upon request, park management will provide you a copy of each document. We urge you to read these documents before making the decision that you want to become a mobilehome park resident. Dated: ___________________________ Signature of Park Manager: _________________________ Acknowledge Receipt by Prospective Homeowner: _____________________________" (b) Management shall provide a prospective homeowner, upon his or her request, with a copy of the rules and regulations of the park and with a copy of this chapter. (c) This section shall become operative on October 1, 2004.