BILL NUMBER: AB 1542 ENROLLED BILL TEXT PASSED THE SENATE SEPTEMBER 11, 2007 PASSED THE ASSEMBLY JUNE 7, 2007 AMENDED IN ASSEMBLY JUNE 5, 2007 INTRODUCED BY Assembly Members Evans and Leno (Principal coauthor: Senator Corbett) (Coauthors: Assembly Members Berg, Huffman, Laird, Lieber, and Richardson) (Coauthor: Senator Wiggins) FEBRUARY 23, 2007 An act to amend Section 66427.5 of the Government Code, relating to mobilehome parks. LEGISLATIVE COUNSEL'S DIGEST AB 1542, Evans. Mobilehome parks: conversions. (1) The Subdivision Map Act requires a subdivider, at the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a rental mobilehome park to resident ownership, to avoid the economic displacement of all nonpurchasing residents in accordance with specified provisions that apply to all tenants and specified provisions that apply to nonpurchasing residents who are not lower income households. A violation of the act is a crime punishable as a felony or a misdemeanor. That act also requires that the subdivider is subject to a hearing by the legislative body or the advisory agency, which is authorized by local ordinance to approve, conditionally approve, or disapprove the map, and that the scope of the hearing is limited to the issue of compliance with these provisions. This bill would delete the hearing limitation, but would also require, notwithstanding the conversion, that local rent control measures remain applicable to any rental of mobilehome space within the park. Because the bill would expand the scope of an existing crime, it would impose a state-mandated local program. The bill would also revise these provisions as to nonpurchasing residents who are not low- or moderate-income households where the conversion is not subject to local rent control. (2) The act requires the legislative body, or an advisory agency that is authorized by local ordinance to approve, conditionally approve, or disapprove the map, to require the subdivider to take steps to mitigate any adverse impact of the conversion on the ability of displaced mobilehome park residents to find adequate space in a mobilehome park. This bill would delete these requirements, and would make a conforming change. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 66427.5 of the Government Code is amended to read: 66427.5. At the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a rental mobilehome park to resident ownership, the subdivider shall avoid the economic displacement of all nonpurchasing residents in the following manner: (a) The subdivider shall offer each existing tenant an option to either purchase his or her condominium or subdivided unit, which is to be created by the conversion of the park to resident ownership, or to continue residency as a tenant. (b) The subdivider shall file a report on the impact of the conversion upon residents of the mobilehome park to be converted to resident-owned subdivided interest. (c) The subdivider shall make a copy of the report available to each resident of the mobilehome park at least 15 days prior to the hearing on the map by the advisory agency or, if there is no advisory agency, by the legislative body. (d) (1) The subdivider shall obtain a survey of support of residents of the mobilehome park for the proposed conversion. (2) The survey of support shall be conducted in accordance with an agreement between the subdivider and a resident homeowners' association, if any, that is independent of the subdivider or mobilehome park owner. (3) The survey shall be obtained pursuant to a written ballot. (4) The survey shall be conducted so that each occupied mobilehome space has one vote. (5) The results of the survey shall be submitted to the local agency upon the filing of the tentative or parcel map, to be considered as part of the subdivision map hearing prescribed by subdivision (e). (e) The subdivider shall be subject to a hearing by a legislative body or advisory agency, which is authorized by local ordinance to approve, conditionally approve, or disapprove the map. (f) In the absence of local rent control, the subdivider shall be required to avoid the economic displacement of all nonpurchasing residents in accordance with the following: (1) As to nonpurchasing residents who are not lower income households, as defined in Section 50079.5 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent to market levels, as defined in an appraisal conducted in accordance with nationally recognized professional appraisal standards, in equal annual increases over a four-year period. (2) As to nonpurchasing residents who are lower income households, as defined in Section 50079.5 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent by an amount equal to the average monthly increase in rent in the four years immediately preceding the conversion, except that in no event shall the monthly rent be increased by an amount greater than the average monthly percentage increase in the Consumer Price Index for the most recently reported period. (g) Notwithstanding the conversion, local rent control measures shall remain applicable to any rental of mobilehome space within the park. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.