BILL ANALYSIS Ó
AB 317
Page 1
ASSEMBLY THIRD READING
AB 317 (Charles Calderon)
As Amended January 23, 2012
Majority vote
HOUSING 4-1
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|Ayes:|Torres, Atkins, Jeffries, | | |
| |Miller | | |
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|-----+--------------------------+-----+--------------------------|
|Nays:|Cedillo | | |
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SUMMARY : Exempts any mobilehome that is not the sole residence
of the homeowner from rent control. Specifically, this bill :
1)Exempts a mobilehome space within a mobilehome park that is
not the sole residence of the mobilehome owner from any
ordinance, rule, regulation, or initiative measure adopted by
any city, county, or city and county that establishes a
maximum amount that the landlord may charge a tenant for rent.
2)Specifies that evidence that a mobilehome is not the sole
residence of the mobilehome owner must be weighted in light of
the totality of the circumstances and may include, but is not
limited to, the following factors:
a) The mobilehome owner rents, leases, occupies, or has a
present ownership interest in another place of residence,
other than an ownership interest in a place of residence
solely and exclusively occupied by the mobilehome owner's
child or parent and his or her immediate family;
b) Another place of residence appears as a matter of public
record or in other evidence obtained by management;
c) Monthly statements are mailed to, or payments are made
from, a different place of residence;
d) The mobilehome owner is regularly absent from the
mobilehome for extended periods of time, other than for
military service, hospitalization, vacation, family or
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friend emergency care, or other reasonable temporary or
seasonal periods of absence, such as travel necessitated by
employment or education;
e) The mobilehome is used primarily for vacationing,
storage, or business;
f) The mobilehome has been subleased or possession of the
mobilehome has been transferred without management's
approval; and,
g) A review of state or county records demonstrates that
the homeowner is receiving a homeowner's exemption for
another property or mobilehome.
3)Specifies that any disputes related to whether or not a
mobilehome is the sole residence of the mobilehome owner may
be arbitrated and that it is up to the mobilehome owner to
decide whether or not to pursue arbitration.
4)Specifies that if the mobilehome owner chooses arbitration,
the following shall apply:
a) The owner or management of the mobilehome park must pay
the costs of the arbitration;
b) The parties must meet and confer to select a mutually
agreeable arbitrator;
c) If the parties cannot agree to an arbitrator within 10
days after the homeowner's written response is received,
the management must obtain a list of five arbitrators from
any bona fide dispute resolution provider serving the
judicial district in which the mobilehome park is located;
d) Each party may disqualify up to two arbitrators from the
list and allows any remaining arbitrator to be selected;
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e) The arbitrator must hear the evidence relevant to the
dispute within 30 days after selection, at a time and place
reasonably convenient to the parties;
f) No attorney may represent either party at an arbitration
hearing;
g) The arbitrator must render a written decision within 15
days of hearing the evidence as to whether the mobilehome
is the sole residence of the mobilehome owner; and,
h) The decision of the arbitrator is final.
5)Specifies that the exemption from rent control does not apply
under any of the following circumstances:
a) The mobilehome is the sole residence of the mobilehome
owner, which is defined as a person who has a full-time
tenancy in a mobilehome park under a rental agreement, a
senior who is a full-time resident of a mobilehome owned by
a child of the senior, or a child with a disability or
handicap who is a full-time resident of a mobilehome owned
by a parent or guardian of the child;
b) The space is subleased by the owner for a medical
hardship;
c) Ownership of the mobilehome is transferred to an heir,
joint tenant, or personal representative upon the death of
mobilehome owner;
d) Management elects to apply an exemption or right set
forth in the ordinance, rule, regulation, or initiative
measure that establishes a maximum amount that a landlord
may charge a tenant for rent; and,
e) The mobilehome is actively being held available for sale
by the homeowner and the home remains vacant and
unoccupied. If the home remains occupied, provides 120
days from the time management provides notice of a rent
increase based on a finding that the home is not the sole
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residence of the mobilehome owner for the space to remain
under rent control while being actively held available for
sale.
6)Provides that if management authorizes the subleasing of
mobilehomes in the park, management shall not restrict the
amount of rent that the mobilehome owner may charge for rent
in a sublease situation.
7)Provides that sublet mobilehomes are exempt from rent control,
except when subleased for a medical hardship.
8)Specifies that upon reoccupation of the space by the
mobilehome owner after the term of the sublease has expired,
the last rental rate charged to the mobilehome owner shall be
the base rental rate for purposes of rent control, plus any
increases that were allowed during the term of the sublease.
9)Deletes the following exemptions to the current law that
exempts mobilehome spaces that are not the principal residence
of the homeowner from rent control:
a) The homeowner is unable to rent or lease the mobilehome
because the park prohibits subletting; and,
b) The legal owner has taken possession or ownership, or
both, of the mobilehome from a registered owner through
either a surrender of ownership interest by the registered
owner or a foreclosure proceeding.
10)Adds language to an existing disclosure form that the
management of a mobilehome park must provide to prospective
homeowners stating that purchasers who do not occupy the
mobilehome as their sole residence may be subject to rent
levels that are not governed by rent control.
FISCAL EFFECT : None
COMMENTS : Birkenfeld v. Berkeley (1976) 17 Cal. 3d 129,
provides that cities and counties have within their policy and
regulation powers, the authority to enact rent control laws so
long as a fair return is assured to property owners.
Approximately 111 local jurisdictions have enacted measures
limiting the amount of rent or establishing a maximum amount of
rent that the management of a mobilehome park may charge a
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tenant for rent of a lot space. Under existing law, local
governmental entities are free to enact rent control laws
regarding mobilehome parks. These local laws are not subject to
the state's Costa-Hawkins Act restricting permissible rent
control ordinances, but in certain limited circumstances the
Mobilehome Residency Law (MRL) exempts certain mobilehome park
spaces from local rent control. Under existing law rental
agreements which are 12 months or longer are exempt from local
rent control.
SB 1181 (Haynes), Chapter 392, Statutes of 1996, created an
exemption to rent control for mobilehomes that are not the
principal residence of the homeowner and established that a
mobilehome is deemed the principal residence of the homeowner
unless the owner claims the homeowner's exemption on another
residence in California or unless records show that the owner's
principal residence is out of state. At the time, the sponsor
of the bill, the Mobilehome Park Alliance (MPA), stated that as
many as 20% of the mobilehomes in luxury parks in communities
such as Malibu, Palm Springs, Santa Barbara County, Palm Desert,
and Escondido are used as vacation homes and remain vacant for
significant periods of the year while their owners are living
elsewhere. MPA argued that vacation homes should not be
eligible for rent control.
This bill exempts any home that is not the sole residence of the
homeowner from rent control. The bill contains a non-exclusive
list of factors that could be used to determine that a home is
not the sole residence of the owner. The bill requires
arbitration, paid for by the park owner or management, if the
homeowner disputes a finding that the home is not their sole
residence. The arbitrator must be mutually agreed upon by both
parties and the decision of the arbitrator is final.
The bill additionally provides that subleased mobilehomes,
except those subleased in the event of a medical hardship, are
exempt from rent control. If a mobilehome owner reoccupies
their home after a sublease, the bill requires that their base
rent for purposes of rent control be set at their pre-sublease
rent plus any increases that were permitted during the term of
the sublease.
Finally, this bill adds language to an existing disclosure form
that the management of a mobilehome park must provide to
prospective homeowners stating that purchasers who do not occupy
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the mobilehome as their sole residence may be subject to rent
levels that are not governed by rent control.
According to the sponsor, the Western Manufactured Housing
Communities Association (WMA), the homeowner's exemption test
has proved to be an inadequate way of determining whether a
mobilehome is a vacation home. Because the financial benefits
of rent control can be substantial and the value of the
homeowner's exemption is the same no matter what property an
owner claims it on, those who own mobilehomes as vacation
properties have a strong incentive to claim the exemption on the
mobilehome rather than on their true primary residence. While
property tax law requires that the homeowner's be claimed only
on a primary residence, there is no way for county assessors to
determine that a homeowner has instead claimed it on a vacation
property. As long as a homeowner is only claiming the exemption
on one residence, there is no reason why an assessor would
question where someone is claiming the exemption.
WMA additionally states that currently, most mobilehome parks do
not allow subleasing. They state that one reason for this is
that some homeowners have taken advantage of park owners by
purchasing multiple homes in rent-controlled communities and
creating a business of subletting out the homes at rents greater
than what the park owner is permitted to charge.
Arguments in support: WMA argues that the original intent of
rent control was to preserve a source of affordable housing and
protect residents who are captive in the community because they
cannot move their home from large rent increases, not to make it
affordable for someone to own a second home. WMA believes that
current law is inadequate because it is easy for owners to claim
that a mobilehome is their primary residence even when it is
not, and further believes that the laws need to be expanded to
prohibit rent control on any second home. WMA argues that those
who can afford to own two homes should not benefit from rent
control. They additionally argue that it is unfair for
homeowners to profit off of rent control in a sublease situation
and believe that if sublet mobilehomes were no longer subject to
rent control, more parks would allow subletting, providing
homeowners with more options.
Arguments in opposition: The Golden State Manufactured-Home
Owners League (GSMOL) believes that the current requirements for
determining whether a homeowner is entitled to a rent-stabilized
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space are fair and adequate. They argue that the list of
factors that could be used to establish that a home is not the
owner's sole residence is so vague and overbroad that many
innocent activities of homeowners will be used as a basis for
declaring a residence to be a second home, thus ending rent
control protections and allowing park owners to increase space
rent by any amount desired. GSMOL further argues that very few
mobilehome parks allow subleasing, including the vast majority
of parks in jurisdictions without rent control and questions the
argument that removing sublet mobilehomes from rent control will
encourage subleasing.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0003060