BILL ANALYSIS Ó
SB 1421
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Date of Hearing: August 15, 2012
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
SB 1421 (Correa) - As Amended: August 13, 2012
SENATE VOTE : 36-0
SUBJECT : Mobilehomes: resident-owned mobilehome parks.
SUMMARY : Makes clarifying changes related to the application
of the Mobilehome Residency Law (MRL) in a mobilehome park owned
and operated by a non-profit mutual benefit corporation.
Specifically, this bill :
1)Deletes language specifying that Articles 1 through 8 of the
MRL apply to residents who rent their space in a mobilehome
park owned and operated by a non-profit mutual benefit
corporation for which there is no recorded parcel or tract
map.
2)Clarifies that in a mobilehome park owned and operated by a
non-profit mutual benefit corporation, Articles 1 through 8 of
the MRL apply to any residents who rent their space from the
corporation.
3)Includes an urgency clause.
EXISTING LAW specifies that in a mobilehome park owned and
operated by a non-profit mutual benefit corporation whose
members consist of park residents where there is no recorded
condominium plan, tract, parcel map, or declaration, Articles 1
through 8 of the MRL shall govern the rights of members who are
residents that have a rental agreement with the corporation
(Civil Code Section 799.1).
FISCAL EFFECT : None
COMMENTS :
Enacted in 1978, the MRL governs the relationship between park
owners or managers and the residents of the over 4,800
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.
SB 1421
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Over the past twenty years, residents have been increasingly
interested in various ways to purchase their parks and the
spaces upon which their homes are installed. One method of
purchasing a park-the nonprofit mutual benefit corporation-is
described by the Department of Real Estate as follows:
Park residents need a legal entity to purchase their park.
A nonprofit mutual benefit corporation is well suited to
this purpose. In general, the nonprofit corporation makes
an offer of participation to the residents. Residents who
decided to participate become shareholders or members of the
corporation. As residents purchase shares or memberships in
the corporation, cash is accumulated for the down payment
required to purchase the park. The officers of the
corporation, elected by the members and acting on their
behalf, negotiate with the seller to purchase the park and
solve problems relating to conversion. After conversion,
the corporation may manage the park.
The provisions of the MRL are separated into nine different
articles. The first eight apply to residents who rent their
space from the park and include requirements regarding the
rental agreement, rules and regulations, fees, utilities, rent
control, homeowner communications and meeting, termination of
tenancy, and transfer of mobilehomes. Article 9, the last
article, applies to residents who have an ownership interest in
a subdivision, cooperative, or condominium for mobilehomes, or a
resident-owned mobilehome park. SB 1047 (Correa), Chapter 17,
Statutes of 2011, clarified that in a mobilehome park owned and
operated by a non-profit mutual corporation whose members
consist of park residents where there is no recorded condominium
plan, tract, parcel map, or declaration, Articles 1-8 of the MRL
govern the rights of members who are residents that have a
rental agreement with the corporation.
SB 1421 makes three technical changes to the subdivision enacted
by SB 1047 in order to further clarify the language and address
issues that arose since enactment. First, it strikes the
reference to tract and parcel map. As noted above, in order for
Articles 1-8 to apply in a resident-owned park owned by a
non-profit mutual benefit corporation, among other things, SB
1047 stated that there must not be a recorded tract or parcel
map. According to the author:
SB 1421
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In SB 1047, the inclusion of the term "parcel map"
resulted, without intention, in significantly reducing
the number of affected parks. The inclusion of this term
in many cases removes the protection of the amendment and
places the parks to which it should apply back in the
category of subdivided parks. Consequently, since its
enactment at the beginning of this year, a small loophole
has been unearthed by some unscrupulous homeowners'
association board members who are using it to charge
penalty fees on members who, under the intent of this
section, are not subject to such penalties.
SB 1421 would address this issue by striking the term "parcel
map," thus ensuring that Articles 1-8 of the MRL apply to any
resident renting his or her space regardless of whether the park
has a recorded parcel map. This bill additionally deletes the
term "tract," because the same issue could arise with a tract
map.
Second, SB 1421 replaces the phrase "residents who have a rental
agreement" with "residents that rent their space" because not
all residents who rent their spaces in these types of parks have
a signed rental agreement with the corporation. Many only have
an oral agreement. The change will ensure that all residents who
rent their space from the corporation are covered by Articles
1-8 of the MRL.
Finally, SB 1421 replaces the term "declaration" with
"subdivision declaration" to improve clarity. While the word
subdivision is implied, given the problems that have emerged
with other portions of the language, it seems appropriate to
ensure that the language is as clear as possible.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
SB 1421
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None on file
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085