BILL NUMBER: AB 253 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 6, 2013
INTRODUCED BY Assembly Member Levine
FEBRUARY 6, 2013
An act to amend Sections 11010.8 and 11010.9 of the Business and
Professions Code, and 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 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 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 or floating home marina 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 or floating home marina, and a majority of the members of the
board of directors of the nonprofit corporation are homeowners of the
mobilehome park or the floating home marina.
(2) All members of the corporation are residents of the mobilehome
park or the floating home marina. 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 or floating home marina 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 or floating home marina, 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
or floating home marina are deposited in escrow until the document
transferring title of the mobilehome park or floating home marina 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 or floating home marina 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 or floating home marina, 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 or floating home marina 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 or marina, 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 or marina, as the result of conditions imposed
by the state or local government for approval of the park or marina
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 or
floating home marina 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 or marina,
or to engage in any other activities that are otherwise prohibited,
with regard to subdividing the park or marina 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
or floating home marina to another use, the subdivider shall also
file a report on the impact of the conversion upon the displaced
residents of the mobilehome park or floating home marina to be
converted. In determining the impact of the conversion on displaced
mobilehome park or floating home marina residents, the report shall
address the availability of adequate replacement space in mobilehome
parks or floating home marinas.
(b) The subdivider shall make a copy of the report available to
each resident of the mobilehome park or floating home marina 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 or floating home marina residents to find
adequate space in a mobilehome park or floating home marina,
respectively.
(d) This section establishes a minimum standard for local
regulation of conversions of mobilehome parks and floating home
marinas 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 or rental
floating home marina 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 or rental floating home marina 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 or marina 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 or the floating home
marina 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 or the floating home marina 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 or the floating home marina 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 or floating home marina owner.
(3) The survey shall be obtained pursuant to a written ballot.
(4) The survey shall be conducted so that each occupied mobilehome
space and floating home berth 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 or floating homes who are tenants in the mobilehome park
or floating home marina sign a petition indicating their intent to
purchase the mobilehome park or the floating home marina 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,
spaces, or floating home berths 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
(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:
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
(d) 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.
(e) 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 of floating
home marina berths.
(f) 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.
(g) 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 or the
floating home marina 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.
(h) 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 or rental floating home marina to a
resident initiated subdivision, cooperative, or condominium for
mobilehomes or floating homes if the conversion will not result in an
expansion of or change in existing use of the property.
SEC. 7. SEC. 6. 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.