BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 317|
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THIRD READING
Bill No: AB 317
Author: Charles Calderon (D)
Amended: 8/16/12 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 7/3/12
AYES: Evans, Blakeslee, Corbett, Leno
NO VOTE RECORDED: Harman
ASSEMBLY FLOOR : Not relevant
SUBJECT : Mobilehomes
SOURCE : Author
DIGEST : This bill clarifies the statutory notice
entitled INFORMATION FOR PROSPECTIVE HOMEOWNERS" notice by
including a statement that prospective purchasers in a
mobilehome park who do not occupy the mobilehome as their
principal residence may not be subject to rent control.
Senate Floor Amendments of 8/16/12 modify the proposed
notice language by adding a citation to Civil Code Section
798.21. Under specified circumstances, that section
currently exempts a mobilehome from rent control if it is
not the primary residence of the homeowner.
ANALYSIS : Existing law requires, within two business
days of receiving a request from a prospective homeowner
for an application for residence for a specific space
CONTINUED
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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
specified information about being a tenant in a mobilehome
park, including that:
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.
(Civ. Code Sec. 798.74.5.)
This bill also adds the following two sentences to the
above statutory notice to clarify the application of rent
control to residents in mobilehome parks:
These laws are commonly known as "rent control."
Prospective purchasers who do not occupy the mobilehome
as their principal residence may be subject to rent
levels which are not governed by these laws.
This bill modifies the notice language by adding a citation
to Civil Code Section 798.21. Under specified
circumstances, that section currently exempts a mobilehome
from rent control if it is not the primary residence of the
homeowner.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/17/12)
California Association of Realtors
Western Manufactured Housing Communities Association
ARGUMENTS IN SUPPORT : According to the author, "Current
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law under Civil Code Section 798.21 requires that a home be
occupied as the homeowner's principal residence in order to
maintain the benefits of rent control. Many individuals
get around this law by various means to qualify for rent
control to secure a vacation home with subsidized rent by
the property owner. . . . AB 318 will add a sentence to
the form requested to be given to all prospective tenants
in Civil Code 798.74.5 to read, 'prospective purchasers who
do not occupy the mobilehome as their principal residence
may be subject to rent levels which are not governed by
these laws (rent control).'"
RJG:k 8/20/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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