California Legislature—2013–14 Regular Session

Assembly Bill No. 253

Introduced by Assembly Member Levine

February 6, 2013

An act to amend Sections 11010.8 and 11010.9 of the Business and Professions Code, to amend Sections 66427.4, 66427.5, and 66428.1 of the Government Code, and to amend Section 21080.8 of the Public Resources Code, relating to floating home marinas.

LEGISLATIVE COUNSEL’S DIGEST

AB 253, as introduced, Levine. Floating home marinas: conversion: subdivision map requirements.

(1) Existing law, the Subdivision Map Act, generally requires that a tentative and final map shall be required for all subdivisions creating 5 or more condominiums, as defined, with specified exceptions. Existing law requires a subdivider, at the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a mobilehome park to another use, to file a report on the impact of the conversion upon the displaced residents of the mobilehome park to be converted, addressing the availability of adequate replacement space in mobilehome parks. Existing law exempts from these requirements the conversion of a rental mobilehome park to resident ownership, and instead requires a subdivider for that conversion to avoid the economic displacement of nonpurchasing residents, as specified, and file a report on the impact of the conversion upon the displaced residents of the mobilehome park to be converted. Existing law also subjects the subdivider of a rental mobilehome park to resident ownership to a hearing regarding the impact of the conversion upon the displaced residents of the park, and requires the subdivider to offer each existing tenant the option to purchase his or her condominium unit to be created by the conversion.

This bill would extend the same requirements to the conversion of floating home marinas. The bill would require a subdivider, at the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a floating home marina to another use, to file a report on the impact of the conversion upon the displaced residents of the floating home marina to be converted, addressing the availability of adequate replacement space in floating home marinas. The bill would exempt from these requirements the conversion of a rental floating home marina to resident ownership, and would instead require a subdivider for that conversion to avoid the economic displacement of nonpurchasing residents, as specified, and file a report on the impact of the conversion upon the displaced residents of the floating home marina to be converted. The bill would also subject the subdivider of a rental floating home marina to resident ownership to a hearing regarding the impact of the conversion upon the displaced residents of the marina, and would require the subdivider to offer each existing tenant the option to purchase his or her condominium unit to be created by the conversion.

(2) Existing law exempts mobilehome parks from the requirement of the filing of a tentative and final map for all subdivisions creating 5 or more condominiums, if at least 2⁄3 of the owners of mobilehomes who are tenants have applied, as specified, for a waiver, unless specified conditions exist.

This bill would exempt floating home marinas from the requirement of the filing of a tentative and final map for all subdivisions creating 5 or more condominiums, if at least 2⁄3 of the owners of floating homes who are tenants have applied, as specified, for a waiver, unless specified conditions exist.

(3) Existing law, the Subdivided Lands Act, requires any person who intends to offer subdivided lands for sale or lease, as specified, to file with the Department of Real Estate an application for a public report consisting of, among other things, a notice of intention, as specified. Existing law exempts from the notice of intention requirement the purchase of a mobilehome park by a nonprofit corporation, under specified circumstances. Existing law requires the subdivider of a mobilehome park that is proposed to be converted to resident ownership to make a written disclosure, as specified, to homeowners and residents of the park, with regard to the tentative price of the subdivided interest proposed to be sold or leased.

This bill would exempt from the notice of intention requirement the purchase of a floating home marina by a nonprofit corporation, under specified circumstances. The bill would also require the subdivider of a floating home marina that is proposed to be converted to resident ownership to make a specified written disclosure to homeowners and residents of the marina, with regard to the tentative price of the subdivided interest proposed to be sold or leased.

(4) Existing law, the California Environmental Quality Act (CEQA), requires the lead public agency, as defined, after the conduct of an initial study, to prepare a negative declaration or an environmental impact report for a proposed project, as specified. Existing law exempts from the environmental impact report and other requirements of CEQA the conversion of an existing rental mobilehome park to a resident initiated subdivision, cooperative, or condominium for mobilehomes under specified circumstances.

This bill would exempt from the environmental impact report and other requirements of CEQA the conversion of an existing rental floating home marina to a resident initiated subdivision, cooperative, or condominium for floating homes under specified circumstances.

Because this bill would require local agencies to provide a higher level of service, it would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 11010.8 of the Business and Professions
Code is amended to read:

11010.8.  

(a) The requirement that a notice of intention be filed
pursuant to Section 11010 is not applicable to the purchase of a
mobilehome park begin insert or floating home marina end insert by a nonprofit
corporation if all of the following occur:

(1) A majority of the shareholders or members of the nonprofit
corporation constitute a majority of the homeowners of the
mobilehome park begin insert or floating home marina end insert , and a majority of the
members of the board of directors of the nonprofit corporation are
homeowners of the mobilehome park begin insert or the floating home marina end insert .

(2) All members of the corporation are residents of the
mobilehome park begin insert or the floating home marina end insert . Members of the
nonprofit corporation may enter into leases with the corporation
that are greater than five years in length. “Homeowners” or
“residents” of the mobilehome park begin insert or floating home marina end insert shall
include a bona fide secured party who has, pursuant to a security
interest in a membership, taken title to the membership by means
of foreclosure, repossession, or voluntary repossession, and who
is actively attempting to resell the membership to a prospective
resident or homeowner of the mobilehome park begin insert or floating home end insert
begin insert marina end insert , in accordance with subdivision (f) of Section 7312 of the
Corporations Code.

(3) A permit to issue securities under Section 25113 of the
Corporations Code is obtained from the Department of
Corporations. In the case of a nonissuer transaction (as defined by
Section 25011 of the Corporations Code) involving the offer to
resell or the resale of memberships by a bona fide secured party
as described in paragraph (2) of this section, a permit is not
required where the transaction is exempt from the qualification
requirements of Section 25130 of the Corporations Code pursuant
to subdivision (e) of Section 25104 of the Corporations Code. The
exemption from qualification pursuant to subdivision (e) of Section
25104 of the Corporations Code available to a bona fide secured
party does not eliminate the requirement of this section that the
nonprofit corporation shall either file a notice of intention pursuant
to Section 11010 or obtain a permit pursuant to Section 25113 of
the Corporations Code.

(4) All funds of tenants for the purchase of the mobilehome
park begin insert or floating home marina end insert are deposited in escrow until the
document transferring title of the mobilehome park begin insert or floating end insert
begin insert home marina end insert to the nonprofit corporation is recorded. The escrow
also shall include funds of homeowners that shall be available to
the homeowners association nonprofit corporation for payment of
any and all costs reasonably associated with the processing and
conversion of the mobilehome park begin insert or floating home marina end insert into
condominium interests. Payment of these costs may be made from
the funds deposited in escrow prior to the close of escrow upon
the direction of the homeowners association nonprofit corporation.

(b) The funds described by paragraph (4) of subdivision (a), or
any other funds subsequently received from tenants for purposes
other than the purchase of a separate subdivided interest in any
portion of the mobilehome park begin insert or floating home marina end insert , are not
subject to the requirements of Section 11013.1, 11013.2, or
11013.4.

SEC. 2.  

Section 11010.9 of the Business and Professions Code
is amended to read:

11010.9.  

(a) Notwithstanding any other provision of law, the
subdivider of a mobilehome park begin insert or floating home marina end insert that is
proposed to be converted to resident ownership, prior to filing a
notice of intention pursuant to Section 11010, shall disclose to
homeowners and residents of the park begin insert or marina end insert , by written notice,
the tentative price of the subdivided interest proposed to be sold
or leased.

(b) The disclosure notice required by subdivision (a) shall
include a statement that the tentative price is not binding, could
change between the time of disclosure and the time of
governmental approval to commence the actual sale or lease of
the subdivided interests in the park begin insert or marina end insert , as the result of
conditions imposed by the state or local government for approval
of the park begin insert or marina end insert conversion, increased financing costs, or
other factors and, in the absence of bad faith, shall not give rise to
a claim for liability against the provider of this information.

(c) The disclosure notice required by subdivision (a) shall not
be construed to authorize the subdivider of a mobilehome park begin insert or end insert
begin insert floating home marina end insert that is proposed to be converted to resident
ownership to offer to sell or lease, sell or lease, or accept money
for the sale or lease of, subdivided interests in the park begin insert or marina end insert ,
or to engage in any other activities that are otherwise prohibited,
with regard to subdividing the park begin insert or marina end insert into ownership
interests, prior to the issuance of a public report pursuant to this
chapter.

SEC. 3.  

Section 66427.4 of the Government Code is amended
to read:

66427.4.  

(a) At the time of filing a tentative or parcel map for
a subdivision to be created from the conversion of a mobilehome
park begin insert or floating home marina end insert to another use, the subdivider shall
also file a report on the impact of the conversion upon the displaced
residents of the mobilehome park begin insert or floating home marina end insert to be
converted. In determining the impact of the conversion on displaced
mobilehome park begin insert or floating home marina end insert residents, the report
shall address the availability of adequate replacement space in
mobilehome parks begin insert or floating home marinas end insert .

(b) The subdivider shall make a copy of the report available to
each resident of the mobilehome park begin insert or floating home marina end insert at
least 15 days prior to the hearing on the map by the advisory
agency or, if there is no advisory agency, by the legislative body.

(c) The legislative body, or an advisory agency which is
authorized by local ordinance to approve, conditionally approve,
or disapprove the map, may require the subdivider to take steps to
mitigate any adverse impact of the conversion on the ability of
displaced mobilehome park begin insert or floating home marina end insert residents to
find adequate space in a mobilehome park begin insert or floating home marina, end insert
begin insert respectively end insert .

(d) This section establishes a minimum standard for local
regulation of conversions of mobilehome parks begin insert and floating home end insert
begin insert marinas end insert into other uses and shall not prevent a local agency from
enacting more stringent measures.

(e) This section shall not be applicable to a subdivision which
is created from the conversion of a rental mobilehome park begin insert or end insert
begin insert rental floating home marina end insert to resident ownership.

SEC. 4.  

Section 66427.5 of the Government Code is amended
to read:

66427.5.  

At the time of filing a tentative or parcel map for a
subdivision to be created from the conversion of a rental
mobilehome park begin insert or rental floating home marina end insert to resident
ownership, the subdivider shall avoid the economic displacement
of all nonpurchasing residents in the following manner:

(a) The subdivider shall offer each existing tenant an option to
either purchase his or her condominium or subdivided unit, which
is to be created by the conversion of the park begin insert or marina end insert to resident
ownership, or to continue residency as a tenant.

(b) The subdivider shall file a report on the impact of the
conversion upon residents of the mobilehome park begin insert or the floating end insert
begin insert home marina end insert to be converted to resident owned subdivided interest.

(c) The subdivider shall make a copy of the report available to
each resident of the mobilehome park begin insert or the floating home marina end insert
at least 15 days prior to the hearing on the map by the advisory
agency or, if there is no advisory agency, by the legislative body.

(d) (1) The subdivider shall obtain a survey of support of
residents of the mobilehome park begin insert or the floating home marina end insert for
the proposed conversion.

(2) The survey of support shall be conducted in accordance with
an agreement between the subdivider and a resident homeowners’
association, if any, that is independent of the subdivider or
mobilehome park begin insert or floating home marina end insert owner.

(3) The survey shall be obtained pursuant to a written ballot.

(4) The survey shall be conducted so that each occupied
mobilehome space begin insert and floating home berth end insert has one vote.

(5) The results of the survey shall be submitted to the local
agency upon the filing of the tentative or parcel map, to be
considered as part of the subdivision map hearing prescribed by
subdivision (e).

(e) The subdivider shall be subject to a hearing by a legislative
body or advisory agency, which is authorized by local ordinance
to approve, conditionally approve, or disapprove the map. The
scope of the hearing shall be limited to the issue of compliance
with this section.

(f) The subdivider shall be required to avoid the economic
displacement of all nonpurchasing residents in accordance with
the following:

(1) As to nonpurchasing residents who are not lower income
households, as defined in Section 50079.5 of the Health and Safety
Code, the monthly rent, including any applicable fees or charges
for use of any preconversion amenities, may increase from the
preconversion rent to market levels, as defined in an appraisal
conducted in accordance with nationally recognized professional
appraisal standards, in equal annual increases over a four-year
period.

(2) As to nonpurchasing residents who are lower income
households, as defined in Section 50079.5 of the Health and Safety
Code, the monthly rent, including any applicable fees or charges
for use of any preconversion amenities, may increase from the
preconversion rent by an amount equal to the average monthly
increase in rent in the four years immediately preceding the
conversion, except that in no event shall the monthly rent be
increased by an amount greater than the average monthly
percentage increase in the Consumer Price Index for the most
recently reported period.

SEC. 5.  

Section 66428.1 of the Government Code is amended
to read:

66428.1.  

(a) When at least two-thirds of the owners of
mobilehomes begin insert or floating homes end insert who are tenants in the mobilehome
park begin insert or floating home marina end insert sign a petition indicating their intent
to purchase the mobilehome park begin insert or the floating home marina end insert for
purposes of converting it to resident ownership, and a field survey
is performed, the requirement for a parcel map or a tentative and
final map shall be waived unless any of the following conditions
exist:

(1) There are design or improvement requirements necessitated
by significant health or safety concerns.

(2) The local agency determines that there is an exterior
boundary discrepancy that requires recordation of a new parcel or
tentative and final map.

(3) The existing parcels which exist prior to the proposed
conversion were not created by a recorded parcel or final map.

(4) The conversion would result in the creation of more
condominium units or interests than the number of tenant lots begin delete or end delete begin insert , end insert
spaces begin insert , or floating home berths end insert that exist prior to conversion.

(b) The petition signed by owners of mobilehomes in a
mobilehome park proposed for conversion to resident ownership
pursuant to subdivision (a) shall read as follows:

 

MOBILEHOME PARK PETITION AND DISCLOSURE STATEMENT

SIGNING THIS PETITION INDICATES YOUR SUPPORT FOR CONVERSION OF THIS MOBILEHOME PARK TO RESIDENT OWNERSHIP.   THIS DISCLOSURE STATEMENT CONCERNS THE REAL PROPERTY SITUATED IN THE CITY OF ____, COUNTY OF ____, STATE OF CALIFORNIA, DESCRIBED AS ____.   THE TOTAL COST FOR CONVERSION AND PURCHASE OF THE PARK IS $____ TO $____, EXCLUDING FINANCING COSTS.   THE TOTAL COST TO YOU FOR CONVERSION AND PURCHASE OF YOUR OWNERSHIP INTEREST IS $____ TO $____, EXCLUDING FINANCING COSTS.   IF TWO-THIRDS OF THE RESIDENTS IN THIS PARK SIGN THIS PETITION INDICATING THEIR INTENT TO PURCHASE THE MOBILEHOME PARK FOR PURPOSES OF CONVERTING IT TO RESIDENT OWNERSHIP, THEN THE REQUIREMENTS FOR A NEW PARCEL, OR TENTATIVE AND FINAL SUBDIVISION MAP IN COMPLIANCE WITH THE SUBDIVISION MAP ACT MUST BE WAIVED, WITH CERTAIN VERY LIMITED EXCEPTIONS. WAIVING THESE PROVISIONS OF LAW ELIMINATES NUMEROUS PROTECTIONS WHICH ARE AVAILABLE TO YOU.

Buyer, unit #, date    Petitioner, date

 

begin insert

(c) The petition signed by owners of floating homes in a floating
home marina proposed for conversion to resident ownership
pursuant to subdivision (a) shall read as follows:

end insert

 

begin insert

begin insert FLOATING HOME MARINA PETITION AND DISCLOSURE STATEMENT end insert

begin insert   end insert

begin insert SIGNING THIS PETITION INDICATES YOUR SUPPORT FOR CONVERSION OF THIS FLOATING HOME MARINA TO RESIDENT OWNERSHIP.   THIS DISCLOSURE STATEMENT CONCERNS THE REAL PROPERTY SITUATED IN THE CITY OF ____, COUNTY OF ____, STATE OF CALIFORNIA, DESCRIBED AS ____.   THE TOTAL COST FOR CONVERSION AND PURCHASE OF THE PARK IS $____ TO $____, EXCLUDING FINANCING COSTS.   THE TOTAL COST TO YOU FOR CONVERSION AND PURCHASE OF YOUR OWNERSHIP INTEREST IS $____ TO $____, EXCLUDING FINANCING COSTS.   IF TWO-THIRDS OF THE RESIDENTS IN THIS MARINA SIGN THIS PETITION INDICATING THEIR INTENT TO PURCHASE THE FLOATING HOME MARINA FOR PURPOSES OF CONVERTING IT TO RESIDENT OWNERSHIP, THEN THE REQUIREMENTS FOR A NEW PARCEL, OR TENTATIVE AND FINAL SUBDIVISION MAP IN COMPLIANCE WITH THE SUBDIVISION MAP ACT MUST BE WAIVED, WITH CERTAIN VERY LIMITED EXCEPTIONS. WAIVING THESE PROVISIONS OF LAW ELIMINATES NUMEROUS PROTECTIONS WHICH ARE AVAILABLE TO YOU. end insert

begin insert   end insert

begin insert Buyer, unit #, date    Petitioner, date end insert

end insert

 

begin delete

(c)

end delete

begin insert (d) end insert  The local agency shall provide an application for waiver
pursuant to this section. After the waiver application is deemed
complete pursuant to Section 65943, the local agency shall approve
or deny the application within 50 days. The applicant shall have
the right to appeal that decision to the governing body of the local
agency.

begin delete

(d)

end delete

begin insert (e) end insert  If a tentative or parcel map is required, the local agency shall
not impose any offsite design or improvement requirements unless
these are necessary to mitigate an existing health or safety
condition. No other dedications, improvements, or in-lieu fees
shall be required by the local agency. In no case shall the mitigation
of a health or safety condition have the effect of reducing the
number, or changing the location, of existing mobilehome spaces
begin insert of floating home marina berths end insert .

begin delete

(e)

end delete

begin insert (f) end insert  If the local agency imposes requirements on an applicant to
mitigate a health or safety condition, the applicant and the local
agency shall enter into an unsecured improvement agreement. The
local agency shall not require bonds or other security devices
pursuant to Chapter 5 (commencing with Section 66499) for the
performance of that agreement. The applicant shall have a period
of one year from the date the agreement was executed to complete
those improvements.

begin delete

(f)

end delete

begin insert (g) end insert  If the waiver application provided for in this section is denied
by the local agency pursuant to the provisions of subdivision (a),
the applicant may proceed to convert the mobilehome park begin insert or the end insert
begin insert floating home marina end insert to a tenant-owned, condominium ownership
interest, but shall file a parcel map or a tentative and final map.
The local agency may not require the applicant to file and record
a tentative and final map unless the conversion creates five or more
parcels shown on the map. The number of condominium units or
interests created by the conversion shall not determine whether
the filing of a parcel or a tentative and final map shall be required.

begin delete

(g)

end delete

begin insert (h) end insert  For the purposes of this section, the meaning of “resident
ownership” shall be as defined in Section 50781 of the Health and
Safety Code.

SEC. 6.  

Section 21080.8 of the Public Resources Code is
amended to read:

21080.8.  

This division does not apply to the conversion of an
existing rental mobilehome park begin insert or rental floating home marina end insert
to a resident initiated subdivision, cooperative, or condominium
for mobilehomes begin insert or floating homes end insert if the conversion will not result
in an expansion of or change in existing use of the property.

SEC. 7.  

begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.

end insert