Amended in Assembly April 24, 2013

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, and to amend Sections 66427.4begin delete, 66427.5,end delete and 66428.1 ofbegin insert, and to add Section 66427.6 to,end insert the Government 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 alsobegin insert require the local agency to consider the results of the survey in making its decision to approve, conditionally approve, or disapprove the map, and would authorize the agency to disapprove the map if it finds that the results of the survey have not demonstrated the support of at least a majority of the park’s homeowners. The bill would authorize local legislative bodies to enact local regulations to implement the survey requirements. The bill would furtherend insert 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.

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:

7(1) A majority of the shareholders or members of the nonprofit
8corporation constitute a majority of the homeowners of the
9mobilehome park or floating home marina, and a majority of the
10members of the board of directors of the nonprofit corporation are
11homeowners of the mobilehome park or the floating home marina.

P4    1(2) All members of the corporation are residents of the
2mobilehome park or the floating home marina. Members of the
3nonprofit corporation may enter into leases with the corporation
4that are greater than five years in length. “Homeowners” or
5“residents” of the mobilehome park or floating home marina shall
6include a bona fide secured party who has, pursuant to a security
7interest in a membership, taken title to the membership by means
8of foreclosure, repossession, or voluntary repossession, and who
9is actively attempting to resell the membership to a prospective
10resident or homeowner of the mobilehome park or floating home
11marina, in accordance with subdivision (f) of Section 7312 of the
12Corporations Code.

13(3) A permit to issue securities under Section 25113 of the
14Corporations Code is obtained from the Department of
15Corporations. In the case of a nonissuer transaction (as defined by
16Section 25011 of the Corporations Code) involving the offer to
17resell or the resale of memberships by a bona fide secured party
18as described in paragraph (2) of this section, a permit is not
19required where the transaction is exempt from the qualification
20requirements of Section 25130 of the Corporations Code pursuant
21to subdivision (e) of Section 25104 of the Corporations Code. The
22exemption from qualification pursuant to subdivision (e) of Section
2325104 of the Corporations Code available to a bona fide secured
24party does not eliminate the requirement of this section that the
25nonprofit corporation shall either file a notice of intention pursuant
26to Section 11010 or obtain a permit pursuant to Section 25113 of
27the Corporations Code.

28(4) All funds of tenants for the purchase of the mobilehome
29park or floating home marina are deposited in escrow until the
30document transferring title of the mobilehome park or floating
31home marina to the nonprofit corporation is recorded. The escrow
32also shall include funds of homeowners that shall be available to
33the homeowners association nonprofit corporation for payment of
34any and all costs reasonably associated with the processing and
35conversion of the mobilehome park or floating home marina into
36condominium interests. Payment of these costs may be made from
37the funds deposited in escrow prior to the close of escrow upon
38the direction of the homeowners association nonprofit corporation.

39(b) The funds described by paragraph (4) of subdivision (a), or
40any other funds subsequently received from tenants for purposes
P5    1other than the purchase of a separate subdivided interest in any
2portion of the mobilehome park or floating home marina, are not
3subject to the requirements of Section 11013.1, 11013.2, or
411013.4.

5

SEC. 2.  

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

7

11010.9.  

(a) Notwithstanding any other provision of law, the
8subdivider of a mobilehome park or floating home marina that is
9proposed to be converted to resident ownership, prior to filing a
10notice of intention pursuant to Section 11010, shall disclose to
11homeowners and residents of the park or marina, by written notice,
12the tentative price of the subdivided interest proposed to be sold
13or leased.

14(b) The disclosure notice required by subdivision (a) shall
15include a statement that the tentative price is not binding, could
16change between the time of disclosure and the time of
17governmental approval to commence the actual sale or lease of
18the subdivided interests in the park or marina, as the result of
19conditions imposed by the state or local government for approval
20of the park or marina conversion, increased financing costs, or
21other factors and, in the absence of bad faith, shall not give rise to
22a claim for liability against the provider of this information.

23(c) The disclosure notice required by subdivision (a) shall not
24be construed to authorize the subdivider of a mobilehome park or
25floating home marina that is proposed to be converted to resident
26ownership to offer to sell or lease, sell or lease, or accept money
27for the sale or lease of, subdivided interests in the park or marina,
28or to engage in any other activities that are otherwise prohibited,
29with regard to subdividing the park or marina into ownership
30interests, prior to the issuance of a public report pursuant to this
31chapter.

32

SEC. 3.  

Section 66427.4 of the Government Code is amended
33to read:

34

66427.4.  

(a) At the time of filing a tentative or parcel map for
35a subdivision to be created from the conversion of a mobilehome
36park or floating home marina to another use, the subdivider shall
37also file a report on the impact of the conversion upon the displaced
38residents of the mobilehome park or floating home marina to be
39converted. In determining the impact of the conversion on displaced
40mobilehome park or floating home marina residents, the report
P6    1shall address the availability of adequate replacement space in
2mobilehome parks or floating home marinas.

3(b) The subdivider shall make a copy of the report available to
4each resident of the mobilehome park or floating home marina at
5least 15 days prior to the hearing on the map by the advisory
6agency or, if there is no advisory agency, by the legislative body.

7(c) The legislative body, or an advisory agency which is
8authorized by local ordinance to approve, conditionally approve,
9or disapprove the map, may require the subdivider to take steps to
10mitigate any adverse impact of the conversion on the ability of
11displaced mobilehome park or floating home marina residents to
12find adequate space in a mobilehome park or floating home marina,
13respectively.

14(d) This section establishes a minimum standard for local
15regulation of conversions of mobilehome parks and floating home
16marinas into other uses and shall not prevent a local agency from
17enacting more stringent measures.

18(e) This section shall not be applicable to a subdivision which
19is created from the conversion of a rental mobilehome park or
20rental floating home marina to resident ownership.

begin delete
21

SEC. 4.  

Section 66427.5 of the Government Code is amended
22to read:

23

66427.5.  

At the time of filing a tentative or parcel map for a
24subdivision to be created from the conversion of a rental
25mobilehome park or rental floating home marina to resident
26ownership, the subdivider shall avoid the economic displacement
27of all nonpurchasing residents in the following manner:

28(a) The subdivider shall offer each existing tenant an option to
29either purchase his or her condominium or subdivided unit, which
30is to be created by the conversion of the park or marina to resident
31ownership, or to continue residency as a tenant.

32(b) The subdivider shall file a report on the impact of the
33conversion upon residents of the mobilehome park or the floating
34home marina to be converted to resident owned subdivided interest.

35(c) The subdivider shall make a copy of the report available to
36each resident of the mobilehome park or the floating home marina
37at least 15 days prior to the hearing on the map by the advisory
38agency or, if there is no advisory agency, by the legislative body.

P7    1(d) (1) The subdivider shall obtain a survey of support of
2residents of the mobilehome park or the floating home marina for
3the proposed conversion.

4(2) The survey of support shall be conducted in accordance with
5an agreement between the subdivider and a resident homeowners’
6association, if any, that is independent of the subdivider or
7mobilehome park or floating home marina owner.

8(3) The survey shall be obtained pursuant to a written ballot.

9(4) The survey shall be conducted so that each occupied
10mobilehome space and floating home berth has one vote.

11(5) The results of the survey shall be submitted to the local
12agency upon the filing of the tentative or parcel map, to be
13considered as part of the subdivision map hearing prescribed by
14subdivision (e).

15(e) The subdivider shall be subject to a hearing by a legislative
16body or advisory agency, which is authorized by local ordinance
17to approve, conditionally approve, or disapprove the map. The
18scope of the hearing shall be limited to the issue of compliance
19with this section.

20(f) The subdivider shall be required to avoid the economic
21displacement of all nonpurchasing residents in accordance with
22the following:

23(1) As to nonpurchasing residents who are not lower income
24households, as defined in Section 50079.5 of the Health and Safety
25Code, the monthly rent, including any applicable fees or charges
26for use of any preconversion amenities, may increase from the
27preconversion rent to market levels, as defined in an appraisal
28conducted in accordance with nationally recognized professional
29appraisal standards, in equal annual increases over a four-year
30period.

31(2) As to nonpurchasing residents who are lower income
32households, as defined in Section 50079.5 of the Health and Safety
33Code, the monthly rent, including any applicable fees or charges
34for use of any preconversion amenities, may increase from the
35preconversion rent by an amount equal to the average monthly
36increase in rent in the four years immediately preceding the
37conversion, except that in no event shall the monthly rent be
38increased by an amount greater than the average monthly
39percentage increase in the Consumer Price Index for the most
40recently reported period.

end delete
P8    1begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 66427.6 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
2read:end insert

begin insert
3

begin insert66427.6.end insert  

At the time of filing a tentative or parcel map for a
4subdivision to be created from the conversion of a rental floating
5home marina to resident ownership, the subdivider shall avoid the
6economic displacement of all nonpurchasing residents in the
7following manner:

8(a) The subdivider shall offer each existing tenant an option to
9either purchase his or her condominium or subdivided unit, which
10is to be created by the conversion of the marina to resident
11ownership, or to continue residency as a tenant.

12(b) The subdivider shall file a report on the impact of the
13conversion upon residents of the floating home marina to be
14converted to resident owned subdivided interest.

15(c) The subdivider shall make a copy of the report available to
16each resident of the floating home marina at least 15 days prior
17to the hearing on the map by the advisory agency or, if there is no
18advisory agency, by the legislative body.

19(d) (1) The subdivider shall obtain a survey of support of
20residents of the floating home marina for the proposed conversion.

21(2) The survey of support shall be conducted in accordance with
22an agreement between the subdivider and a resident homeowners’
23association, if any, that is independent of the subdivider or floating
24home marina owner.

25(3) The survey shall be obtained pursuant to a written ballot.

26(4) The survey shall be conducted so that each occupied floating
27home berth has one vote.

28(5) The results of the survey shall be submitted to the local
29agency upon the filing of the tentative or parcel map, to be
30considered in the agency’s decision as to whether to approve,
31conditionally approve, or disapprove the map, and the agency may
32disapprove the map if it finds that the results of the survey have
33not demonstrated the support of at least a majority of the park’s
34homeowners.

35(6) Local legislative bodies may enact local regulations to
36implement the requirements of this subdivision.

37(e) The subdivider shall be subject to a hearing by a legislative
38body or advisory agency, which is authorized by local ordinance
39to approve, conditionally approve, or disapprove the map. The
P9    1scope of the hearing shall be limited to the issue of compliance
2with this section.

3(f) The subdivider shall be required to avoid the economic
4displacement of all nonpurchasing residents in accordance with
5the following:

6(1) As to nonpurchasing residents who are not lower income
7households, as defined in Section 50079.5 of the Health and Safety
8Code, the monthly rent, including any applicable fees or charges
9for use of any preconversion amenities, may increase from the
10preconversion rent to market levels, as defined in an appraisal
11conducted in accordance with nationally recognized professional
12appraisal standards, in equal annual increases over a four-year
13period.

14(2) As to nonpurchasing residents who are lower income
15households, as defined in Section 50079.5 of the Health and Safety
16Code, the monthly rent, including any applicable fees or charges
17for use of any preconversion amenities, may increase from the
18preconversion rent by an amount equal to the average monthly
19increase in rent in the four years immediately preceding the
20conversion, except that the monthly rent shall not be increased by
21an amount greater than the average monthly percentage increase
22in the Consumer Price Index for the most recently reported period.

end insert
23

SEC. 5.  

Section 66428.1 of the Government Code is amended
24to read:

25

66428.1.  

(a) When at least two-thirds of the owners of
26mobilehomes or floating homes who are tenants in the mobilehome
27park or floating home marina sign a petition indicating their intent
28to purchase the mobilehome park or the floating home marina for
29purposes of converting it to resident ownership, and a field survey
30is performed, the requirement for a parcel map or a tentative and
31final map shall be waived unless any of the following conditions
32exist:

33(1) There are design or improvement requirements necessitated
34by significant health or safety concerns.

35(2) The local agency determines that there is an exterior
36boundary discrepancy that requires recordation of a new parcel or
37tentative and final map.

38(3) The existing parcels which exist prior to the proposed
39conversion were not created by a recorded parcel or final map.

P10   1(4) The conversion would result in the creation of more
2condominium units or interests than the number of tenant lots,
3spaces, or floating home berths that exist prior to conversion.

4(b) The petition signed by owners of mobilehomes in a
5mobilehome park proposed for conversion to resident ownership
6pursuant to subdivision (a) shall read as follows:


7

 

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

35

 

32(c) The petition signed by owners of floating homes in a floating
33home marina proposed for conversion to resident ownership
34pursuant 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

 

21(d) The local agency shall provide an application for waiver
22pursuant to this section. After the waiver application is deemed
23complete pursuant to Section 65943, the local agency shall approve
24or deny the application within 50 days. The applicant shall have
25the right to appeal that decision to the governing body of the local
26agency.

27(e) If a tentative or parcel map is required, the local agency shall
28not impose any offsite design or improvement requirements unless
29these are necessary to mitigate an existing health or safety
30condition. No other dedications, improvements, or in-lieu fees
31shall be required by the local agency. In no case shall the mitigation
32of a health or safety condition have the effect of reducing the
33number, or changing the location, of existing mobilehome spaces
34of floating home marina berths.

35(f) If the local agency imposes requirements on an applicant to
36mitigate a health or safety condition, the applicant and the local
37agency shall enter into an unsecured improvement agreement. The
38local agency shall not require bonds or other security devices
39pursuant to Chapter 5 (commencing with Section 66499) for the
40performance of that agreement. The applicant shall have a period
P12   1of one year from the date the agreement was executed to complete
2those improvements.

3(g) If the waiver application provided for in this section is denied
4by the local agency pursuant to the provisions of subdivision (a),
5the applicant may proceed to convert the mobilehome park or the
6floating home marina to a tenant-owned, condominium ownership
7interest, but shall file a parcel map or a tentative and final map.
8The local agency may not require the applicant to file and record
9a tentative and final map unless the conversion creates five or more
10parcels shown on the map. The number of condominium units or
11interests created by the conversion shall not determine whether
12the filing of a parcel or a tentative and final map shall be required.

13(h) For the purposes of this section, the meaning of “resident
14ownership” shall be as defined in Section 50781 of the Health and
15Safety Code.

16

SEC. 6.  

No reimbursement is required by this act pursuant to
17Section 6 of Article XIII B of the California Constitution because
18a local agency or school district has the authority to levy service
19charges, fees, or assessments sufficient to pay for the program or
20level of service mandated by this act, within the meaning of Section
2117556 of the Government Code.



O

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