BILL ANALYSIS Ó
AB 317
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 317 (Charles Calderon)
As Amended August 16, 2012
Majority vote
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|ASSEMBLY: |44-22|(January 26, |SENATE: |38-0 |(August 21, |
| | |2012) | | |2012) |
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Original Committee Reference: H. & C.D.
SUMMARY : 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 principal residence may be subject to rent
levels that are not governed by rent control.
The Senate amendments delete language exempting any mobilehome
that is not the sole residence of the homeowner from rent
control and specifying the types of evidence that may be used in
determining that a mobilehome is not the owner's sole residence.
EXISTING LAW :
1)Exempts any mobilehome that is not the principal residence of
the homeowner and that has not been rented to another party
from rent control.
2)Specifies that a mobilehome is considered the homeowners
principal residence unless the homeowner is receiving a
homeowner's exemption for another property or mobilehome in
California, or unless a review of public records reasonably
demonstrates that the principal residence of the homeowner is
out of state.
3)Requires the management of a mobilehome park to provide
prospective homeowners with a statutory notice entitled
"INFORMATION FOR PROSPECTIVE HOMEOWNERS" that includes
specified information about being a tenant in a mobilehome
park.
AS PASSED BY THE ASSEMBLY , this bill exempted any mobilehome
that is not the sole residence of the homeowner from rent
AB 317
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control, specified the types of evidence that may be used in
determining that a mobilehome is not the owner's sole residence,
and established an arbitration process to be used when a
homeowner disputed management's finding that a mobilehome was
not his or her sole residence.
FISCAL EFFECT : None
COMMENTS : Enacted in 1978, the Mobilehome Residency Law (MRL)
governs the relationship between park owners or managers and the
residents of the 4,800 plus mobilehome parks and manufactured
housing communities in California. In most of those parks,
residents own their home but lease the land on which their home
is installed. Although they have historically been called
"mobilehomes," it is very difficult to actually move a
mobilehome once it has been installed in a park.
To protect mobilehome park residents from rent increases on the
property underlying their home, over 100 jurisdictions in
California have enacted some form of rent control for mobilehome
parks. Those rent control ordinances are a proper exercise of
the local government's police power if their provisions are
"reasonably calculated to eliminate excessive rents and at the
same time provide landlords with a just and reasonable return on
their property." (Birkenfeld v. Berkeley (1976) 17 Cal.3d 129,
165.) Although mobilehome parks are not subject to the
Costa-Hawkins Rental Housing Act (which restricts the use of
rent control in other residential properties), the MRL does
limit the application of rent control in certain circumstances,
including if the lease agreement is greater than 12 months, or
if the mobilehome is not the owner's principal residence and is
not being rented to another party.
Existing law requires, within two business days of receiving a
request from a prospective homeowner for an application for
residence for a specific space within a mobilehome park, if the
management has been advised that the mobilehome occupying that
space is for sale, that the management 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
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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.
This bill would add language to the above statutory notice
stating that prospective purchasers who do not occupy the
mobilehome as their principal residence may be subject to rent
levels that are not governed by rent control.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
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