BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2150| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2150 Author: Atkins (D) Amended: 7/3/12 in Senate Vote: 21 SENATE JUDICIARY COMMITTEE : 4-0, 6/26/12 AYES: Evans, Harman, Corbett, Leno NO VOTE RECORDED: Blakeslee ASSEMBLY FLOOR : 68-2, 5/21/12 - See last page for vote SUBJECT : Mobilehome parks SOURCE : Golden State Manufactured-Home Owners League DIGEST : This bill requires every rental agreement in a mobilehome park to include a statutory summary of the rights and responsibilities of homeowners and park management under the Mobilehome Residency Law (MRL). This bill also requires park management to distribute the statutory notice to all homeowners prior to February 1 of each year. ANALYSIS : Existing law, the MRL, contains nine Articles that extensively regulate the rights, responsibilities, obligations, and relationships between mobilehome park owners/management and park residents. (Civil Code (CIV) Section 798 et seq.) Existing law requires the rental agreement to be in writing CONTINUED AB 2150 Page 2 and contain, in addition to the provisions required by law to be included, all of the following: 1. The term of the tenancy and rent therefore; 2. The rules and regulations of the park; 3. A copy of the text of the MRL; 4. A provision specifying that it is the responsibility of management to provide and maintain physical improvements in common facilities, and, with respect to a sudden or unforeseeable breakdown, the management shall have a reasonable period of time to repair the breakdown; 5. A description of the physical improvements to be provided to 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 7. A provision stating that management may charge a reasonable fee for services relating to maintenance, as specified. (CIV Section 798.15) This bill requires management to 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: 1. Provide all homeowners with a copy of this chapter. 2. 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 shall provide a copy within a reasonable time, not to exceed seven days, upon request. This bill additionally requires the rental agreement to contain a copy of the following statutory notice, which management shall also, prior to February 1 of each year, provide a copy to all homeowners: CONTINUED AB 2150 Page 3 IMPORTANT NOTICE TO ALL MANUFACTURED HOME/MOBILEHOME OWNERS: CALIFORNIA LAW REQUIRES THAT YOU BE MADE AWARE OF THE FOLLOWING: The Mobilehome Residency Law (MRL), found in Section 798 et seq. of the Civil Code, establishes the rights and responsibilities of homeowners and park management. The MRL is deemed a part of the terms of any park rental agreement or lease. This law is subject to change. You may request a current copy of the complete text of this law once per year from the park management. This notice is intended to provide recipients with a general awareness of selected parts of the Mobilehome Residency Law (Civil Code Section 798, et seq.). This notice is intended to acquaint recipients with the law, and does not serve as a legal explanation or interpretation. For authoritative information, the recipient must read and understand the laws themselves. These laws change from time to time. This notice is required by Civil Code Section 798.15(i) and the information provided may not be current. Homeowners and park management have certain rights and responsibilities under the MRL. These include, but are not limited to: 1. Management must give a homeowner written notice of any increase in his or her rent at least 90 days before the date of the increase. (Civil Code 798.30) 2. No rental or sales agreement may contain a provision by which a purchaser or a homeowner waives any of his or her rights under the MRL. (Civil Code Sections 798.19, 798.77) 3. Management may not terminate or refuse to renew a homeowner's tenancy except for one or more of the authorized reasons set forth in the MRL. (Civil Code Sections 798.55, 798.56) 4. A homeowner must give written notice to the management of not less than 60 days before vacating CONTINUED AB 2150 Page 4 his or her tenancy. (Civil Code Section 798.59) 5. Homeowners, residents, and their guests must comply with the rental agreement or lease, including the reasonable rules and regulations of the park and all applicable local ordinances and state laws and regulations relating to mobilehomes. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56) 6. Homeowners must pay rent, utility charges, and reasonable incidental service charges in a timely manner. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56) 7. Homeowners have a right to peacefully assemble and freely communicate with respect to mobilehome living and for social or educational purposes. Homeowners have a right to meet in the park, at reasonable hours and in a reasonable manner, for any lawful purpose. Homeowners may not be charged a cleaning deposit in order to use the park clubhouse for meetings of resident organizations or for other lawful purposes, such as to hear from political candidates, so long as a homeowner of the park is hosting the meeting and all park residents are allowed to attend. Homeowners may not be required to obtain liability insurance in order to use common facilities unless alcohol is served. (Civil Code Sections 798.50, 798.51) 8. If a home complies with certain standards, the homeowner is entitled to sell it in place in the park. Management may require certain upgrades. Management may not require a homeowner to sell his or her home to the park, may not charge a transfer or selling fee, and may not require a homeowner to use a broker or dealer approved by the park. A homeowner has a right to advertise his or her home for sale. Management may deny approval of a buyer, but only for certain reasons listed in the law. (Civil Code Sections 798.70-798.74) 9. Management has the right to enter the space upon which a mobilehome is situated for maintenance of CONTINUED AB 2150 Page 5 utilities, trees, and driveways; for inspection and maintenance of the space in accordance with the rules and regulations of the park when the homeowner or resident fails to maintain the space; and for protection and maintenance of the mobilehome park at any reasonable time, but not in a manner or at a time that would interfere with the resident's quiet enjoyment of his or her home. (Civil Code Section 798.26) 10. A homeowner may not make any improvements or alterations to his or her space or home without following the rules and regulations of the park and all applicable local ordinances and state laws and regulations, which may include obtaining a permit to construct, and, if required by park rules or the rental agreement, without prior written approval of management. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56) This bill further provides that all notices required by the MRL to be delivered prior to February 1 of each year may be combined in one notice that contains all the information required by the sections under which the notices are given. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 7/3/12) Golden State Manufactured-Home Owners League (source) California Rural Legal Assistance Foundation Western Center on Law and Poverty ARGUMENTS IN SUPPORT : According to the author, "The ÝMobilehome Residency Law (MRL)] is a lengthy and complex document, and not all homeowners are likely to familiarize themselves with it, until they have a specific question. This bill would provide these homeowners with more meaningful and practical information about their rights, and the content of the MRL, while retaining their right to obtain a full copy of the MRL upon request." The Western Center on Law and Poverty, in support, asserts CONTINUED AB 2150 Page 6 that by requiring a plain-language summary this bill represents an improvement over existing law, and that, "The MRL itself represents a unique area of the law, where the 'bundle of property rights' is apportioned between the park and residents in unique ways. Both residents and some managers might be surprised to learn that some of the MRL's provisions do not comport with their understanding of the law. Your bill provides an additional benefit, since now in most cases the MRL is only delivered to a resident upon request. A party mistaken in their understanding of the law might now think a copy of the MRL is needed. Your bill solves the whole issue by requiring the notice to be delivered once per year." ASSEMBLY FLOOR : 68-2, 5/21/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Hall, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Lara, Logue, Bonnie Lowenthal, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wieckowski, Williams, Yamada, John A. Pérez NOES: Donnelly, Knight NO VOTE RECORDED: Fletcher, Beth Gaines, Gorell, Halderman, Harkey, Roger Hernández, Ma, Mansoor, Perea, Wagner RJG:k 7/3/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED