Amended in Assembly March 6, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 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,begin insert andend insert to amend Sections 66427.4, 66427.5, and 66428.1 of the Government Code,begin delete and to amend Section 21080.8 of the Publicend deletebegin deleteResources Code,end delete relating to floating home marinas.

LEGISLATIVE COUNSEL’S DIGEST

AB 253, as amended, 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 23 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 23 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.

begin delete

(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.

end delete
begin delete

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.

end delete

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:

P3    1

SECTION 1.  

Section 11010.8 of the Business and Professions
2Code
is amended to read:

3

11010.8.  

(a) The requirement that a notice of intention be filed
4pursuant to Section 11010 is not applicable to the purchase of a
5mobilehome park or floating home marina by a nonprofit
6corporation if all of the following occur:

P4    1(1) A majority of the shareholders or members of the nonprofit
2corporation constitute a majority of the homeowners of the
3mobilehome park or floating home marina, and a majority of the
4members of the board of directors of the nonprofit corporation are
5homeowners of the mobilehome park or the floating home marina.

6(2) All members of the corporation are residents of the
7mobilehome park or the floating home marina. Members of the
8nonprofit corporation may enter into leases with the corporation
9that are greater than five years in length. “Homeowners” or
10“residents” of the mobilehome park or floating home marina shall
11include a bona fide secured party who has, pursuant to a security
12interest in a membership, taken title to the membership by means
13of foreclosure, repossession, or voluntary repossession, and who
14is actively attempting to resell the membership to a prospective
15resident or homeowner of the mobilehome park or floating home
16marina, in accordance with subdivision (f) of Section 7312 of the
17Corporations Code.

18(3) A permit to issue securities under Section 25113 of the
19Corporations Code is obtained from the Department of
20Corporations. In the case of a nonissuer transaction (as defined by
21Section 25011 of the Corporations Code) involving the offer to
22resell or the resale of memberships by a bona fide secured party
23as described in paragraph (2) of this section, a permit is not
24required where the transaction is exempt from the qualification
25requirements of Section 25130 of the Corporations Code pursuant
26to subdivision (e) of Section 25104 of the Corporations Code. The
27exemption from qualification pursuant to subdivision (e) of Section
2825104 of the Corporations Code available to a bona fide secured
29party does not eliminate the requirement of this section that the
30nonprofit corporation shall either file a notice of intention pursuant
31to Section 11010 or obtain a permit pursuant to Section 25113 of
32the Corporations Code.

33(4) All funds of tenants for the purchase of the mobilehome
34park or floating home marina are deposited in escrow until the
35document transferring title of the mobilehome park or floating
36home marina to the nonprofit corporation is recorded. The escrow
37also shall include funds of homeowners that shall be available to
38the homeowners association nonprofit corporation for payment of
39any and all costs reasonably associated with the processing and
40conversion of the mobilehome park or floating home marina into
P5    1condominium interests. Payment of these costs may be made from
2the funds deposited in escrow prior to the close of escrow upon
3the direction of the homeowners association nonprofit corporation.

4(b) The funds described by paragraph (4) of subdivision (a), or
5any other funds subsequently received from tenants for purposes
6other than the purchase of a separate subdivided interest in any
7portion of the mobilehome park or floating home marina, are not
8subject to the requirements of Section 11013.1, 11013.2, or
911013.4.

10

SEC. 2.  

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

12

11010.9.  

(a) Notwithstanding any other provision of law, the
13subdivider of a mobilehome park or floating home marina that is
14proposed to be converted to resident ownership, prior to filing a
15notice of intention pursuant to Section 11010, shall disclose to
16homeowners and residents of the park or marina, by written notice,
17the tentative price of the subdivided interest proposed to be sold
18or leased.

19(b) The disclosure notice required by subdivision (a) shall
20include a statement that the tentative price is not binding, could
21change between the time of disclosure and the time of
22governmental approval to commence the actual sale or lease of
23the subdivided interests in the park or marina, as the result of
24conditions imposed by the state or local government for approval
25of the park or marina conversion, increased financing costs, or
26other factors and, in the absence of bad faith, shall not give rise to
27a claim for liability against the provider of this information.

28(c) The disclosure notice required by subdivision (a) shall not
29be construed to authorize the subdivider of a mobilehome park or
30floating home marina that is proposed to be converted to resident
31ownership to offer to sell or lease, sell or lease, or accept money
32for the sale or lease of, subdivided interests in the park or marina,
33or to engage in any other activities that are otherwise prohibited,
34with regard to subdividing the park or marina into ownership
35interests, prior to the issuance of a public report pursuant to this
36chapter.

37

SEC. 3.  

Section 66427.4 of the Government Code is amended
38to read:

39

66427.4.  

(a) At the time of filing a tentative or parcel map for
40a subdivision to be created from the conversion of a mobilehome
P6    1park or floating home marina to another use, the subdivider shall
2also file a report on the impact of the conversion upon the displaced
3residents of the mobilehome park or floating home marina to be
4converted. In determining the impact of the conversion on displaced
5mobilehome park or floating home marina residents, the report
6shall address the availability of adequate replacement space in
7mobilehome parks or floating home marinas.

8(b) The subdivider shall make a copy of the report available to
9each resident of the mobilehome park or floating home marina at
10least 15 days prior to the hearing on the map by the advisory
11agency or, if there is no advisory agency, by the legislative body.

12(c) The legislative body, or an advisory agency which is
13authorized by local ordinance to approve, conditionally approve,
14or disapprove the map, may require the subdivider to take steps to
15mitigate any adverse impact of the conversion on the ability of
16displaced mobilehome park or floating home marina residents to
17find adequate space in a mobilehome park or floating home marina,
18respectively.

19(d) This section establishes a minimum standard for local
20regulation of conversions of mobilehome parks and floating home
21marinas into other uses and shall not prevent a local agency from
22enacting more stringent measures.

23(e) This section shall not be applicable to a subdivision which
24is created from the conversion of a rental mobilehome park or
25rental floating home marina to resident ownership.

26

SEC. 4.  

Section 66427.5 of the Government Code is amended
27to read:

28

66427.5.  

At the time of filing a tentative or parcel map for a
29subdivision to be created from the conversion of a rental
30mobilehome park or rental floating home marina to resident
31ownership, the subdivider shall avoid the economic displacement
32of all nonpurchasing residents in the following manner:

33(a) The subdivider shall offer each existing tenant an option to
34either purchase his or her condominium or subdivided unit, which
35is to be created by the conversion of the park or marina to resident
36ownership, or to continue residency as a tenant.

37(b) The subdivider shall file a report on the impact of the
38conversion upon residents of the mobilehome park or the floating
39home marina to be converted to resident owned subdivided interest.

P7    1(c) The subdivider shall make a copy of the report available to
2each resident of the mobilehome park or the floating home marina
3at least 15 days prior to the hearing on the map by the advisory
4agency or, if there is no advisory agency, by the legislative body.

5(d) (1) The subdivider shall obtain a survey of support of
6residents of the mobilehome park or the floating home marina for
7the proposed conversion.

8(2) The survey of support shall be conducted in accordance with
9an agreement between the subdivider and a resident homeowners’
10association, if any, that is independent of the subdivider or
11 mobilehome park or floating home marina owner.

12(3) The survey shall be obtained pursuant to a written ballot.

13(4) The survey shall be conducted so that each occupied
14mobilehome space and floating home berth has one vote.

15(5) The results of the survey shall be submitted to the local
16agency upon the filing of the tentative or parcel map, to be
17considered as part of the subdivision map hearing prescribed by
18subdivision (e).

19(e) The subdivider shall be subject to a hearing by a legislative
20body or advisory agency, which is authorized by local ordinance
21to approve, conditionally approve, or disapprove the map. The
22scope of the hearing shall be limited to the issue of compliance
23with this section.

24(f) The subdivider shall be required to avoid the economic
25displacement of all nonpurchasing residents in accordance with
26the following:

27(1) As to nonpurchasing residents who are not lower income
28households, as defined in Section 50079.5 of the Health and Safety
29Code, the monthly rent, including any applicable fees or charges
30for use of any preconversion amenities, may increase from the
31preconversion rent to market levels, as defined in an appraisal
32conducted in accordance with nationally recognized professional
33appraisal standards, in equal annual increases over a four-year
34period.

35(2) As to nonpurchasing residents who are lower income
36households, as defined in Section 50079.5 of the Health and Safety
37Code, the monthly rent, including any applicable fees or charges
38for use of any preconversion amenities, may increase from the
39preconversion rent by an amount equal to the average monthly
40increase in rent in the four years immediately preceding the
P8    1conversion, except that in no event shall the monthly rent be
2increased by an amount greater than the average monthly
3percentage increase in the Consumer Price Index for the most
4recently reported period.

5

SEC. 5.  

Section 66428.1 of the Government Code is amended
6to read:

7

66428.1.  

(a) When at least two-thirds of the owners of
8mobilehomes or floating homes who are tenants in the mobilehome
9park or floating home marina sign a petition indicating their intent
10to purchase the mobilehome park or the floating home marina for
11purposes of converting it to resident ownership, and a field survey
12is performed, the requirement for a parcel map or a tentative and
13final map shall be waived unless any of the following conditions
14exist:

15(1) There are design or improvement requirements necessitated
16by significant health or safety concerns.

17(2) The local agency determines that there is an exterior
18boundary discrepancy that requires recordation of a new parcel or
19tentative and final map.

20(3) The existing parcels which exist prior to the proposed
21conversion were not created by a recorded parcel or final map.

22(4) The conversion would result in the creation of more
23condominium units or interests than the number of tenant lots,
24spaces, or floating home berths that exist prior to conversion.

25(b) The petition signed by owners of mobilehomes in a
26mobilehome park proposed for conversion to resident ownership
27pursuant to subdivision (a) shall read as follows:


28

 

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

16

 

13(c) The petition signed by owners of floating homes in a floating
14home marina proposed for conversion to resident ownership
15pursuant to subdivision (a) shall read as follows:

 

FLOATING HOME MARINA PETITION AND
DISCLOSURE STATEMENT

 

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.

 


Buyer, unit #, date
   
Petitioner, date

 

1(d) The local agency shall provide an application for waiver
2pursuant to this section. After the waiver application is deemed
3complete pursuant to Section 65943, the local agency shall approve
4or deny the application within 50 days. The applicant shall have
5the right to appeal that decision to the governing body of the local
6agency.

7(e) If a tentative or parcel map is required, the local agency shall
8not impose any offsite design or improvement requirements unless
9these are necessary to mitigate an existing health or safety
10condition. No other dedications, improvements, or in-lieu fees
11shall be required by the local agency. In no case shall the mitigation
12of a health or safety condition have the effect of reducing the
13number, or changing the location, of existing mobilehome spaces
14of floating home marina berths.

15(f) If the local agency imposes requirements on an applicant to
16mitigate a health or safety condition, the applicant and the local
17agency shall enter into an unsecured improvement agreement. The
18local agency shall not require bonds or other security devices
19pursuant to Chapter 5 (commencing with Section 66499) for the
20performance of that agreement. The applicant shall have a period
21of one year from the date the agreement was executed to complete
22those improvements.

23(g) If the waiver application provided for in this section is denied
24by the local agency pursuant to the provisions of subdivision (a),
25the applicant may proceed to convert the mobilehome park or the
26floating home marina to a tenant-owned, condominium ownership
27interest, but shall file a parcel map or a tentative and final map.
28The local agency may not require the applicant to file and record
29a tentative and final map unless the conversion creates five or more
30parcels shown on the map. The number of condominium units or
31interests created by the conversion shall not determine whether
32the filing of a parcel or a tentative and final map shall be required.

33(h) For the purposes of this section, the meaning of “resident
34ownership” shall be as defined in Section 50781 of the Health and
35Safety Code.

begin delete36

SEC. 6.  

Section 21080.8 of the Public Resources Code is
37amended to read:

38

21080.8.  

This division does not apply to the conversion of an
39existing rental mobilehome park or rental floating home marina
40to a resident initiated subdivision, cooperative, or condominium
P11   1for mobilehomes or floating homes if the conversion will not result
2in an expansion of or change in existing use of the property.

end delete
3

begin deleteSEC. 7.end delete
4begin insertSEC. 6.end insert  

No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6a local agency or school district has the authority to levy service
7charges, fees, or assessments sufficient to pay for the program or
8level of service mandated by this act, within the meaning of Section
917556 of the Government Code.



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