BILL NUMBER: AB 1803 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Nava
FEBRUARY 10, 2010
An act to amend Section 1369.520 of the Civil Code,
relating to common interest developments. An act to
add Section 798.31.5 to, and to add Article 8.5 (commencing with
Section 798.90) to Chapter 2.5 of Title 2 of Part 2 of
Division 2 of, the Civil Code, relating to mobilehomes.
LEGISLATIVE COUNSEL'S DIGEST
AB 1803, as amended, Nava. Common interest developments:
dispute resolution. Mobilehome Residency Law Mediation
Act.
The Mobilehome Residency Law governs residency in mobilehome parks
and includes provisions that are applicable to those who have an
ownership interest in a subdivision, cooperative, or condominium for
mobilehomes, or a resident-owned mobilehome park, as specified. Among
other things, these provisions set forth the rights of residents and
homeowners regarding the use of the property.
This bill would create the Mobilehome Residency Law Mediation Act
and would require the Attorney General to administer a mobilehome
dispute resolution program. This bill would require the Attorney
General to produce and distribute educational materials, collect
information about mobilehome communities and make it publicly
available, and provide an annual report to the Legislature. This bill
would also require the Attorney General to receive complaints,
investigate alleged violations at its discretion, and facilitate
negotiations, as provided.
This bill would also establish the Mobilehome Residency Law
Mediation Fund, for the fees collected by the Attorney General and
the Department of Housing and Community Development pursuant to the
above provisions. This bill would impose a $10 assessment on
landlords for each mobilehome within the community and a $250 late
fee, as provided.
The Davis-Stirling Common Interest Development Act requires a
common interest development association, owner, or member to submit
their dispute to alternative dispute resolution before filing an
enforcement action in superior court, as specified.
This bill would make a technical, nonsubstantive change to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) It is the intent of the Legislature
to provide an equitable, less costly, and more efficient way for
mobilehome tenants and mobilehome community landlords to resolve
disputes.
(b) The Legislature finds that taking legal action against a
mobilehome community landlord for violations of the Mobilehome
Residency Law can be a costly and lengthy process, and that many
people cannot afford to pursue a court process to vindicate statutory
rights. Mobilehome community landlords will also benefit by having
access to a process that resolves disputes quickly and efficiently.
(c) The Legislature intends to authorize the Department of Housing
and Community Development to modify the registration and fee
collection process for mobilehome communities, in order to collect
the information and revenue necessary for the administration of the
mediation process developed in this article.
(d) The Legislature intends to authorize the Attorney General to
do all of the following:
(1) Produce and distribute educational materials regarding the
Mobilehome Residency Law and the mobilehome dispute resolution
program created in this act.
(2) Administer the mobilehome dispute resolution program by taking
complaints, conducting investigations, making determinations,
issuing fines and other penalties, and participating in
administrative dispute resolutions, when necessary.
(3) Collect and annually report upon data related to disputes and
violations, and make recommendations on modifying the Mobilehome
Residency Law Mediation Act, to the appropriate committees of the
Legislature.
SEC. 2. Section 798.31.5 is added to the
Civil Code , to read:
798.31.5. (a) There is hereby established in the State Treasury
the Mobilehome Residency Law Mediation Fund into which funds
collected by the Department of Housing and Community Development
pursuant to this section will be deposited, including fines and
registration fees from sources to fund the mobilehome dispute
resolution program. Expenditures from the account may be used only
for the costs associated with administering the Mobilehome Residency
Law mediation program.
(b) Each mobilehome community landlord shall pay to the department
an annual registration assessment of ten dollars ($10.00) for each
mobilehome that is subject to the Mobilehome Residency Law within a
mobilehome community. Mobilehome community landlords may charge a
maximum of five dollars ($5.00) of this assessment to tenants. The
registration assessment for each mobilehome shall be deposited to
fund the costs associated with the Mobilehome Residency Law Mediation
Act, including costs incurred by the department.
(c) Initial registrations of mobilehome communities shall be filed
with the department before November 1, 2011, or within three months
of the availability of mobilehome lots for rent within the community.
The mobilehome community is subject to a delinquency fee of two
hundred fifty dollars ($250) for late initial registrations.
(d) Thirty days after sending late fee notices to a noncomplying
landlord, the department may refer the past due account to a
collection agency. If there is no response from a noncomplying
landlord after 60 days in collections, the department may file an
action to enforce payment of unpaid registration assessments and late
fees in the superior court in the county in which the mobilehome
community is located. If the department prevails, the mobilehome
community landlord shall pay the department's costs, including
reasonable attorney's fees, for the enforcement proceedings.
(e) Registration is effective on the date determined by the
department, and the department shall issue a registration number to
each registered mobilehome community. The department shall provide an
expiration date, assigned by the department, to each mobilehome
community that registers.
SEC. 3. Article 8.5 (commencing with Section
798.90) is added to Chapter 2.5 of Title 2 of Part 2 of Division 2 of
the Civil Code , to read:
Article 8.5. Mobilehome Residency Law Mediation Act
798.90. This article shall be known and may be cited as the
"Mobilehome Residency Law Mediation Act."
798.90.5. For purposes of this article the following terms are
defined as follows:
(a) "Complainant" means a landlord, community owner, or tenant,
who has a complaint alleging a violation of this article.
(b) "Department" means the Department of Housing and Community
Development.
(c) "Homeowner" has the same meaning as in Section 789.9.
(d) "Landlord" or "community owner" means the owner of a
mobilehome park or a manufactured housing community and includes
agents of the landlord or community owner.
(e) "Mobilehome" has the same meaning as in Section 798.3.
(f) "Mobilehome dispute resolution program" means the provision of
this act.
(g) "Mobilehome lot" means a portion of a mobilehome community
designated as the location of one mobilehome, manufactured home, or
park model and its accessory buildings, and intended for the
exclusive use as a primary residence by the occupants of that
mobilehome, manufactured home, or park model.
(h) "Mobilehome park," "manufactured housing community," or
"mobilehome community" has the same meaning as in Section 798.4.
(i) "Respondent" means a landlord, community owner, or tenant,
alleged to have committed a violation of the Mobilehome Residency
Law.
798.91. (a) Upon collection of fees specified in Section
798.31.5, the Attorney General shall begin administration of the
mobilehome dispute resolution program.
(b) The purpose of the mobilehome dispute resolution program is to
provide mobilehome community landlords and tenants with a
cost-effective and time-efficient process to resolve disputes
regarding alleged violations of the Mobilehome Residency Law.
(c) The Attorney General under the mobilehome dispute resolution
program shall do all of the following:
(1) Produce educational materials regarding the Mobilehome
Residency Law and the mobilehome dispute resolution program,
including a notice in a format a landlord can reasonably post in a
mobilehome community that summarizes tenant rights and
responsibilities, including information on how to file a complaint
with the Attorney General, and a toll-free telephone number and
Internet Web site address that landlords and homeowners can use to
seek additional information and communicate complaints.
(2) Distribute or delegate distribution to the department or the
mobilehome ombudsman, of the educational materials described in
paragraph (1) to all known landlords and distribute information
alerting landlords that:
(A) Notwithstanding items already required to be posted, landlords
shall post the notice provided by the Attorney General that
summarizes tenant rights and responsibilities and includes
information on how to file complaints in the park clubhouse or in
another conspicuous area within the mobilehome park.
(B) The Attorney General may visually confirm that the notice is
appropriately posted.
(C) The Attorney General may issue a fine or other penalty if the
Attorney General discovers that the landlord has not appropriately
posted the notice or that the landlord has not maintained the posted
notice so that it is clearly visible to tenants.
(3) Distribute the educational materials described in paragraph
(1) to any complainants and respondents, as requested.
(4) Perform dispute resolution activities, including
investigations, negotiations, determinations of violations, and
imposition of fines or other penalties pursuant to Section 798.92.
(5) Collect at a minimum the following information about
mobilehome communities and make them available on a publicly
searchable Internet database:
(A) The number of complaints where a violation was substantiated.
(B) The nature and extent of the complaints received.
(C) The violation of law complained about.
(D) The mobilehome dispute resolution program outcomes for each
complaint.
(6) (A) Provide an annual report to the appropriate committees of
the Legislature on the data collected under this section, including
program performance measures and recommendations regarding how the
mobilehome dispute resolution program may be improved, by January 1
of each year, beginning January 1, 2012.
(B) (1) The requirement for submitting a report imposed under this
paragraph is inoperative on January 1, 2016, pursuant to Section
10231.5 of the Government Code.
(2) A report to be submitted pursuant to this paragraph shall be
submitted in compliance with Section 9795 of the Government Code.
(d) The mobilehome dispute resolution program, including all of
the duties of the Attorney General under the program as described in
this section, shall be funded by the collection of fines, other
penalties, and fees deposited into the Mobilehome Residency Law
Mediation Fund created in Section 798.31.5, and all other sources
directed to the mobilehome dispute resolution program.
798.92. (a) An aggrieved party has the right to file a complaint
with the Attorney General alleging a violation of Mobilehome
Residency Law.
(b) Upon receiving a complaint under this act, the Attorney
General shall do both of the following:
(1) Inform the complainant of any notification requirements under
the Mobilehome Residency Law for tenant or landlord violations and
encourage the complainant to appropriately notify the respondent of
the complaint.
(2) If a statutory time period is applicable, inform the
complainant of the time frame that the respondent has to remedy the
complaint under the Mobilehome Residency Law for tenant violations or
landlord violations.
(c) After receiving a complaint under this act, the Attorney
General shall initiate the mobilehome dispute resolution program by
investigating the alleged violations at its discretion and, if
appropriate, facilitating negotiations between the complainant and
the respondent.
(d) (1) Complainants and respondents shall cooperate with the
Attorney General in the course of an investigation by:
(A) Responding to subpoenas issued by the Attorney General, within
30 days, which may consist of providing access to papers or other
documents.
(B) Providing access to the mobilehome facilities relevant to the
investigation.
(C) Providing written answers to questions from the Attorney
General.
(D) Providing oral testimony or depositions related to a
complaint.
(2) Failure to cooperate with the Attorney General in the course
of an investigation is a violation of this article.
(e) If after an investigation the Attorney General determines that
an agreement cannot be negotiated between the parties, the Attorney
General shall make a written determination on whether a violation of
any provision of the Mobilehome Residency Law has occurred.
(1) If the Attorney General finds by a written determination that
a violation of the Mobilehome Residency Law has occurred, the
Attorney General shall deliver a written notice of violation to the
respondent who committed the violation by certified mail. The notice
of violation shall specify the violation, the corrective action
required, the time within which the corrective action shall be taken,
the penalties including fines, actions that will result if
corrective action is not taken within the specified time period, and
the process for contesting the determination, fines, penalties, and
other actions included in the notice of violation through an
administrative hearing. The Attorney General shall also deliver to
the complainant a copy of the notice of violation by certified mail.
(2) If the Attorney General finds by a written determination that
a violation of the Mobilehome Residency Law has not occurred, the
Attorney General shall deliver a written notice of nonviolation to
both the complainant and the respondent by certified mail. The notice
of nonviolation shall include the process for contesting the
determination through an administrative hearing.
(f) Corrective action shall take place within 30 business days of
the respondent's receipt of a notice of violation, except as required
otherwise by the Attorney General, unless the respondent has
submitted a timely request for an administrative hearing to contest
the notice of violation as required under subdivision (i). If a
respondent, which includes either a landlord or a tenant, fails to
take corrective action within the required time period and the
Attorney General has not received a timely request for an
administrative hearing, the Attorney General may impose a fine, up to
a maximum of two hundred fifty dollars ($250) per violation, per
day, for each day that a violation remains uncorrected. The Attorney
General shall consider the severity and duration of the violation and
the violation's impact on other community residents when determining
the appropriate amount of a fine or the appropriate penalty to
impose on a respondent. If the respondent shows upon timely
application to the Attorney General that a good faith effort to
comply with the corrective action requirements of the notice of
violation has been made and that the corrective action has not been
completed because of mitigating factors beyond the respondent's
control, the Attorney General may delay the imposition of a fine or
penalty.
(g) The Attorney General may issue an order requiring the
respondent, or his or her assignee or agent, to cease and desist from
an unlawful practice and take affirmative actions that in the
judgment of the Attorney General will carry out the purposes of this
article. The affirmative actions may include, but are not limited to,
the following:
(1) Refunds of rent increases, improper fees, charges, and
assessments collected in violation of this article.
(2) Filing and utilization of documents that correct a statutory
or rule violation.
(3) Reasonable actions necessary to correct a statutory or rule
violation.
(h) The Attorney General may require parties, to ensure compliance
with the act from parties who have agreed to settle, to memorialize
any agreement in writing, furnish the Attorney General with a signed
copy of the agreement, and agree to enforcement action in the event
that one or both parties fails to comply with the terms of the
agreement.
(i) A complainant or respondent may request an administrative
hearing before an administrative law judge to contest any of the
following:
(1) A notice of violation issued under paragraph (1) of
subdivision (e) or a notice of nonviolation issued under paragraph
(2) of subdivision (e).
(2) A fine or other penalty imposed under subdivision (f).
(3) An order to cease and desist or an order to take affirmative
actions under subdivision (g).
(j) The complainant or respondent shall request an administrative
hearing within 15 business days of receipt of a notice of violation,
notice of nonviolation, fine, other penalty, order, or action. If an
administrative hearing is not requested within this time period, the
notice of violation, notice of nonviolation, fine, other penalty,
order, or action constitutes a final order of the Attorney General
and is not subject to review by any court or agency.
(k) If an administrative hearing is initiated, the respondent and
complainant shall each bear the cost of his or her own legal
expenses.
(l) The administrative law judge appointed shall do all of the
following:
(1) Hear and receive pertinent evidence and testimony.
(2) Decide whether the evidence supports the Attorney General's
finding by a preponderance of the evidence.
(3) Enter an appropriate order within 30 days after the close of
the hearing and immediately mail copies of the order to the affected
parties.
(m) The order of the administrative law judge constitutes the
final order of the Attorney General and may be appealed to the
superior court.
(n) When the Attorney General imposes a fine, refund, or other
penalty against a respondent, the respondent may not seek any
recovery or reimbursement of the fine, refund, or other penalty from
a complainant or from other mobilehome tenants.
(o) All receipts from the imposition of fines or other penalties
collected under this section other than those due to a complainant
shall be deposited into the Mobilehome Residency Law Mediation Fund.
(p) This section is not exclusive and does not limit the right of
landlords or tenants to take legal action against another party.
Exhaustion of the administrative remedy provided in this chapter is
not required before a landlord or tenant may bring a legal action.
This section does not apply to unlawful detainer actions initiated
prior to the filing and service of an unlawful detainer court action;
however, a tenant is not precluded from seeking relief under this
chapter if the complaint claims the notice of termination violates
the Mobilehome Residency Law prior to the filing and service of an
unlawful detainer action.
(q) Nothing in this section is intended to prevent a complainant
from taking civil action against another party at any time if the
incident or violation that resulted in the complaint is not
adequately resolved by the mediation process.
798.93. (a) The department shall annually register all mobilehome
communities. Each community shall be registered separately. The
department shall deliver by certified mail registration notifications
to all known mobilehome community landlords. Registration
information packets shall include both of the following:
(1) Registration forms.
(2) Registration assessment information, including registration
due dates and late fees, and the collections procedures, liens, and
charging costs to tenants.
(b) To apply for registration, the landlord of a mobilehome
community shall file with the department an application for
registration on a form provided by the department and shall pay a
registration fee, pursuant to Section 798.31.5. The department may
require the submission of information necessary to assist in
identifying and locating a mobilehome community and other information
that may be useful to the state, which shall include, at a minimum,
all of the following:
(1) The name and address of any owner of the mobilehome community.
(2) The name and address of the mobilehome community.
(3) The name and address of the landlord and manager of the
mobilehome community.
(4) The number of lots within the mobilehome community that are
subject to the Mobilehome Residency Law.
(5) The addresses of each mobilehome lot within the mobilehome
community that is subject to the Mobilehome Residency Law.
798.94. The department shall have the capability to compile,
update, and maintain the most accurate database possible of all the
mobilehome communities in the state, which shall include all of the
information collected under Section 798.93.
798.95. When requested by the Attorney General, the Office of
Administrative Law shall assign an administrative law judge to
conduct proceedings under this act.
798.96. The Attorney General shall have the authority to
promulgate any necessary procedural rules to administer the
mobilehome dispute resolution program.
798.96.5. The Attorney General may take the necessary steps to
ensure that this act is implemented on its effective date.
798.97. In order to provide general assistance to mobilehome
resident organizations, park owners, and landlords and tenants, the
department may use the mobilehome ombudsman to provide technical
assistance to resident organizations or persons in the process of
forming a resident organization pursuant to this chapter.
798.98. The Attorney General, director, or individuals acting on
behalf of the Attorney General or director are immune from suit in
any action, civil or criminal, based upon any disciplinary actions or
other official acts performed in the course of their duties under
this chapter, except their intentional or willful misconduct.
798.99. The Attorney General may investigate potential violations
that are discovered during the course of an existing formal
investigation, but for which the Attorney General has not received a
formal complaint.
SECTION 1. Section 1369.520 of the Civil Code
is amended to read:
1369.520. (a) An association or an owner or a member of a common
interest development may not file an enforcement action in superior
court unless the parties have endeavored to submit their dispute to
alternative dispute resolution pursuant to this article.
(b) This section applies only to an enforcement action that is
solely for declaratory, injunctive, or writ relief, or for that
relief in conjunction with a claim for monetary damages not in excess
of the jurisdictional limits stated in Sections 116.220 and 116.221
of the Code of Civil Procedure.
(c) This section does not apply to a small claims action.
(d) Except as otherwise provided by law, this section does not
apply to an assessment dispute.