BILL NUMBER: AB 1938 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 11, 2012
INTRODUCED BY Assembly Member Williams
FEBRUARY 22, 2012
An act to amend Sections 798.15 and 798.17 of, and to add Section
798.18.5 to, the Civil Code, relating to mobilehomes.
LEGISLATIVE COUNSEL'S DIGEST
AB 1938, as amended, Williams. Mobilehomes: rental agreements.
The Mobilehome Residency Law governs the terms and conditions of
residency in mobilehome parks. Existing law requires mobilehome
rental agreements to be in writing and to contain certain
information, including, among other things, the term of the tenancy,
the rent, the rules and regulations of the park, and
a copy of the Mobilehome Residency Law, as
specified and all other provisions governing the
tenancy .
This
For rental agreements in excess of 12 months' duration, this
bill would additionally require the management of a mobilehome
park to include a written summary of all rent, utilities, and other
specified charges a homeowner would be obligated to pay under the
rental agreement. The bill would prohibit the
inclusion of any provision in a rental agreement that would authorize
the management to increase a homeowner's rent or otherwise
separately charge the homeowner for losses incurred by the park
owner, as specified. The bill would prohibit the inclusion
of any provision in a rental agreement that purports to deny a
homeowner a right to a trial by jury or that would mandate binding
arbitration of any dispute between the management and the homeowner.
The
This bill would also provide that any agreement that
purports to deny a homeowner's right to a trial by jury or mandates
binding arbitration of any dispute between the management and the
homeowner must be set forth in a written agreement, as specified, and
be mutually agreed to by the homeowner and the management.
The Mobilehome Residency Law also exempts a rental agreement, that
satisfies specified criteria, from any ordinance, rule, regulation,
or initiative measure adopted by a local governmental entity that
establishes a maximum amount a landlord may charge a tenant for rent.
In order for the exemption to apply, existing law requires the
rental agreement to, among other things, enable the homeowner to void
the rental agreement by notifying management in writing within 72
hours of the homeowner's execution of the agreement.
This bill would instead require that the rental agreement enable
the homeowner to void the rental agreement by notifying management in
writing within 72 hours of the homeowners execution of a written
acknowledgment indicating that the homeowner has received an executed
copy of the rental agreement.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 798.15 of the Civil Code is amended to read:
798.15. (a) The rental agreement shall be in writing and shall
contain, in addition to the provisions otherwise required by law to
be included, all of the following:
(1) The term of the tenancy and the rent therefor.
(2) The rules and regulations of the park.
(3) A copy of the text of this chapter shall be attached as an
exhibit and shall be incorporated into the rental agreement by
reference. Management shall do one of the following prior to February
1 of each year, if a significant change was made in this chapter by
legislation enacted in the prior year:
(A) Provide all homeowners with a copy of this chapter.
(B) Provide written notice to all homeowners that there has been a
change to this chapter and that they may obtain one copy of this
chapter from management at no charge. Management must provide a copy
within a reasonable time, not to exceed seven days upon request.
(4) A provision specifying that (A) it is the responsibility of
the management to provide and maintain physical improvements in the
common facilities in good working order and condition and (B) with
respect to a sudden or unforeseeable breakdown or deterioration of
these improvements, the management shall have a reasonable period of
time to repair the sudden or unforeseeable breakdown or deterioration
and bring the improvements into good working order and condition
after management knows or should have known of the breakdown or
deterioration. For purposes of this subdivision, a reasonable period
of time to repair a sudden or unforeseeable breakdown or
deterioration shall be as soon as possible in situations affecting a
health or safety condition, and shall not exceed 30 days in any other
case except where exigent circumstances justify a delay.
(5) A description of the physical improvements to be provided the
homeowner during his or her tenancy.
(6) A provision listing those services which will be provided at
the time the rental agreement is executed and will continue to be
offered for the term of tenancy and the fees, if any, to be charged
for those services.
(7) A provision stating that management may charge a reasonable
fee for services relating to the maintenance of the land and premises
upon which a mobilehome is situated in the event the homeowner fails
to maintain the land or premises in accordance with the rules and
regulations of the park after written notification to the homeowner
and the failure of the homeowner to comply within 14 days. The
written notice shall state the specific condition to be corrected and
an estimate of the charges to be imposed by management if the
services are performed by management or its agent.
(8) A For rental agreements in excess of
12 months' duration, a summary page attached to the front of
the rental agreement entitled "Summary Page of Rent, Utilities and
Other Charges" that clearly and concisely summarizes each financial
or monetary charge the homeowner shall be liable for during the term
of the rental agreement, including, but not limited to, any amounts
to be paid for annual rent increases, the passthrough of any expense
amount as part of rent, utilities, known incidental reasonable
charges for services actually rendered, rent increases intended to
take effect upon the sale or transfer of the mobilehome, or any other
rent increases that can be obtained during the term of the rental
agreement.
(9) All other provisions governing the tenancy.
(b) A rental agreement shall not contain any provision that
authorizes the management in any way to increase the amount of rent
to be paid by the homeowner, or to separately charge the homeowner,
for any of the following:
(1) Losses incurred by a park owner that are not fully compensated
by insurance.
(2) Losses or expenses that a park owner is ordered by any court
or arbitrator to pay as damages or to compensate any person or group
of persons, because of any claim, lawsuit, arbitration, or
administrative action brought against the park or park owner that for
any reason is not paid by insurance.
Any provision described in this subdivision contained in a rental
agreement shall be deemed void and unenforceable as contrary to
public policy.
(c) A rental agreement shall not contain any provision that
purports to deny a homeowner a right to a trial by jury or that would
mandate binding arbitration of any dispute between the management
and the homeowner.
SEC. 2. Section 798.17 of the Civil Code is amended to read:
798.17. (a) (1) Rental agreements meeting the criteria of
subdivision (b) shall be exempt from any ordinance, rule, regulation,
or initiative measure adopted by any local governmental entity which
establishes a maximum amount that a landlord may charge a tenant for
rent. The terms of a rental agreement meeting the criteria of
subdivision (b) shall prevail over conflicting provisions of an
ordinance, rule, regulation, or initiative measure limiting or
restricting rents in mobilehome parks, only during the term of the
rental agreement or one or more uninterrupted, continuous extensions
thereof. If the rental agreement is not extended and no new rental
agreement in excess of 12 months' duration is entered into, then the
last rental rate charged for the space under the previous rental
agreement shall be the base rent for purposes of applicable
provisions of law concerning rent regulation, if any.
(2) In the first sentence of the first paragraph of a rental
agreement entered into on or after January 1, 1993, pursuant to this
section, there shall be set forth a provision in at least 12-point
boldface type if the rental agreement is printed, or in capital
letters if the rental agreement is typed, giving notice to the
homeowner that the rental agreement will be exempt from any
ordinance, rule, regulation, or initiative measure adopted by any
local governmental entity which establishes a maximum amount that a
landlord may charge a tenant for rent.
(b) Rental agreements subject to this section shall meet all of
the following criteria:
(1) The rental agreement shall be in excess of 12 months'
duration.
(2) The rental agreement shall be entered into between the
management and a homeowner for the personal and actual residence of
the homeowner.
(3) The homeowner shall have at least 30 days from the date the
rental agreement is first offered to the homeowner to accept or
reject the rental agreement.
(4) The homeowner who executes a rental agreement offered pursuant
to this section may void the rental agreement by notifying
management in writing within 72 hours of the homeowner's execution of
a written acknowledgment indicating that the homeowner has received
an executed copy of the rental agreement.
(c) If, pursuant to paragraph (3) or (4) of subdivision (b), the
homeowner rejects the offered rental agreement or rescinds a signed
rental agreement, the homeowner shall be entitled to instead accept,
pursuant to Section 798.18, a rental agreement for a term of 12
months or less from the date the offered rental agreement was to have
begun. In the event the homeowner elects to have a rental agreement
for a term of 12 months or less, including a month-to-month rental
agreement, the rental agreement shall contain the same rental
charges, terms, and conditions as the rental agreement offered
pursuant to subdivision (b), during the first 12 months, except for
options, if any, contained in the offered rental agreement to extend
or renew the rental agreement.
(d) Nothing in subdivision (c) shall be construed to prohibit the
management from offering gifts of value, other than rental rate
reductions, to homeowners who execute a rental agreement pursuant to
this section.
(e) With respect to any space in a mobilehome park that is exempt
under subdivision (a) from any ordinance, rule, regulation, or
initiative measure adopted by any local governmental entity that
establishes a maximum amount that a landlord may charge a homeowner
for rent, and notwithstanding any ordinance, rule, regulation, or
initiative measure, a mobilehome park shall not be assessed any fee
or other exaction for a park space that is exempt under subdivision
(a) imposed pursuant to any ordinance, rule, regulation, or
initiative measure. No other fee or other exaction shall be imposed
for a park space that is exempt under subdivision (a) for the purpose
of defraying the cost of administration thereof.
(f) At the time the rental agreement is first offered to the
homeowner, the management shall provide written notice to the
homeowner of the homeowner's right (1) to have at least 30 days to
inspect the rental agreement, and (2) to void the rental agreement by
notifying management in writing within 72 hours of the acceptance of
a rental agreement. The failure of the management to provide the
written notice shall make the rental agreement voidable at the
homeowner's option upon the homeowner's discovery of the failure. The
receipt of any written notice provided pursuant to this subdivision
shall be acknowledged in writing by the homeowner.
(g) No rental agreement subject to subdivision (a) that is first
entered into on or after January 1, 1993, shall have a provision
which authorizes automatic extension or renewal of, or automatically
extends or renews, the rental agreement for a period beyond the
initial stated term at the sole option of either the management or
the homeowner.
(h) This section does not apply to or supersede other provisions
of this part or other state law.
SEC. 3. Section 798.18.5 is added to the Civil Code, to read:
798.18.5. Any agreement that purports to deny a homeowner a right
to a trial by jury or that would mandate binding arbitration of any
dispute between the management and the homeowner shall not be
contained in a rental agreement, as described in Section 718.15, but
instead shall be set forth in a separate written agreement in at
least 12-point boldface type and must be mutually agreed to by the
homeowner and the management.