Amended in Assembly May 2, 2013

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 66427.4 and 66428.1 of, and to add Section 66427.6 to, 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 also 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 further 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
P4    1members of the board of directors of the nonprofit corporation are
2homeowners of the mobilehome park or the floating home marina.

3(2) All members of the corporation are residents of the
4mobilehome park or the floating home marina. Members of the
5nonprofit corporation may enter into leases with the corporation
6that are greater than five years in length. “Homeowners” or
7“residents” of the mobilehome park or floating home marina shall
8include a bona fide secured party who has, pursuant to a security
9interest in a membership, taken title to the membership by means
10of foreclosure, repossession, or voluntary repossession, and who
11is actively attempting to resell the membership to a prospective
12resident or homeowner of the mobilehome park or floating home
13marina, in accordance with subdivision (f) of Section 7312 of the
14Corporations Code.

15(3) A permit to issue securities under Section 25113 of the
16Corporations Code is obtained from the Department of
17Corporations. In the case of a nonissuer transaction (as defined by
18Section 25011 of the Corporations Code) involving the offer to
19resell or the resale of memberships by a bona fide secured party
20as described in paragraph (2) of this section, a permit is not
21required where the transaction is exempt from the qualification
22requirements of Section 25130 of the Corporations Code pursuant
23to subdivision (e) of Section 25104 of the Corporations Code. The
24exemption from qualification pursuant to subdivision (e) of Section
2525104 of the Corporations Code available to a bona fide secured
26party does not eliminate the requirement of this section that the
27nonprofit corporation shall either file a notice of intention pursuant
28to Section 11010 or obtain a permit pursuant to Section 25113 of
29the Corporations Code.

30(4) All funds of tenants for the purchase of the mobilehome
31park or floating home marina are deposited in escrow until the
32document transferring title of the mobilehome park or floating
33home marina to the nonprofit corporation is recorded. The escrow
34also shall include funds of homeowners that shall be available to
35the homeowners association nonprofit corporation for payment of
36any and all costs reasonably associated with the processing and
37conversion of the mobilehome park or floating home marina into
38condominium interests. Payment of these costs may be made from
39the funds deposited in escrow prior to the close of escrow upon
40the direction of the homeowners association nonprofit corporation.

P5    1(b) The funds described by paragraph (4) of subdivision (a), or
2any other funds subsequently received from tenants for purposes
3other than the purchase of a separate subdivided interest in any
4 portion of the mobilehome park or floating home marina, are not
5subject to the requirements of Section 11013.1, 11013.2, or
611013.4.

7

SEC. 2.  

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

9

11010.9.  

(a) Notwithstanding any other provision of law, the
10subdivider of a mobilehome park or floating home marina that is
11proposed to be converted to resident ownership, prior to filing a
12notice of intention pursuant to Section 11010, shall disclose to
13homeowners and residents of the park or marina, by written notice,
14the tentative price of the subdivided interest proposed to be sold
15or leased.

16(b) The disclosure notice required by subdivision (a) shall
17include a statement that the tentative price is not binding, could
18change between the time of disclosure and the time of
19governmental approval to commence the actual sale or lease of
20the subdivided interests in the park or marina, as the result of
21conditions imposed by the state or local government for approval
22of the park or marina conversion, increased financing costs, or
23other factors and, in the absence of bad faith, shall not give rise to
24a claim for liability against the provider of this information.

25(c) The disclosure notice required by subdivision (a) shall not
26be construed to authorize the subdivider of a mobilehome park or
27floating home marina that is proposed to be converted to resident
28ownership to offer to sell or lease, sell or lease, or accept money
29for the sale or lease of, subdivided interests in the park or marina,
30or to engage in any other activities that are otherwise prohibited,
31with regard to subdividing the park or marina into ownership
32interests, prior to the issuance of a public report pursuant to this
33chapter.

34

SEC. 3.  

Section 66427.4 of the Government Code is amended
35to read:

36

66427.4.  

(a) At the time of filing a tentative or parcel map for
37a subdivision to be created from the conversion of a mobilehome
38park or floating home marina to another use, the subdivider shall
39also file a report on the impact of the conversion upon the displaced
40residents of the mobilehome park or floating home marina to be
P6    1converted. In determining the impact of the conversion on displaced
2mobilehome park or floating home marina residents, the report
3shall address the availability of adequate replacement space in
4mobilehome parks or floating home marinas.

5(b) The subdivider shall make a copy of the report available to
6each resident of the mobilehome park or floating home marina at
7least 15 days prior to the hearing on the map by the advisory
8agency or, if there is no advisory agency, by the legislative body.

9(c) The legislative body, or an advisory agency which is
10authorized by local ordinance to approve, conditionally approve,
11or disapprove the map, may require the subdivider to take steps to
12mitigate any adverse impact of the conversion on the ability of
13displaced mobilehome park or floating home marina residents to
14find adequate space in a mobilehome park or floating home marina,
15respectively.

16(d) This section establishes a minimum standard for local
17regulation of conversions of mobilehome parks and floating home
18marinas into other uses and shall not prevent a local agency from
19enacting more stringent measures.

20(e) This section shall not be applicable to a subdivision which
21is created from the conversion of a rental mobilehome park or
22rental floating home marina to resident ownership.

23

SEC. 4.  

Section 66427.6 is added to the Government Code, to
24read:

25

66427.6.  

At the time of filing a tentative or parcel map for a
26subdivision to be created from the conversion of a rental floating
27home marina to resident ownership, the subdivider shall avoid the
28economic displacement of all nonpurchasing residents in the
29following manner:

30(a) The subdivider shall offer each existing tenant an option to
31either purchase his or her condominium or subdivided unit, which
32is to be created by the conversion of the marina to resident
33ownership, or to continue residency as a tenant.

34(b) The subdivider shall file a report on the impact of the
35conversion upon residents of the floating home marina to be
36converted to resident owned subdivided interest.

37(c) The subdivider shall make a copy of the report available to
38each resident of the floating home marina at least 15 days prior to
39the hearing on the map by the advisory agency or, if there is no
40advisory agency, by the legislative body.

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

3(2) The survey of support shall be conducted in accordance with
4an agreement between the subdivider and a resident homeowners’
5association, if any, that is independent of the subdivider or floating
6home marina owner.

7(3) The survey shall be obtained pursuant to a written ballot.

8(4) The survey shall be conducted so that each occupied floating
9home berth has one vote.

10(5) The results of the survey shall be submitted to the local
11agency upon the filing of the tentative or parcel map, to be
12considered in the agency’s decision as to whether to approve,
13conditionally approve, or disapprove the map, and the agency may
14disapprove the map if it finds that the results of the survey have
15not demonstrated the support of at least a majority of thebegin delete park’send delete
16begin insert marina’s end insert homeowners.

17(6) Local legislative bodies may enact local regulations to
18implement the requirements of this subdivision.

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 the monthly rent shall not be increased by
2an amount greater than the average monthly percentage increase
3in the Consumer Price Index for the most recently reported period.

4

SEC. 5.  

Section 66428.1 of the Government Code is amended
5to read:

6

66428.1.  

(a) When at least two-thirds of the owners of
7mobilehomes or floating homes who are tenants in the mobilehome
8park or floating home marina sign a petition indicating their intent
9to purchase the mobilehome park or the floating home marina for
10purposes of converting it to resident ownership, and a field survey
11is performed, the requirement for a parcel map or a tentative and
12final map shall be waived unless any of the following conditions
13exist:

14(1) There are design or improvement requirements necessitated
15by significant health or safety concerns.

16(2) The local agency determines that there is an exterior
17boundary discrepancy that requires recordation of a new parcel or
18tentative and final map.

19(3) The existing parcels which exist prior to the proposed
20conversion were not created by a recorded parcel or final map.

21(4) The conversion would result in the creation of more
22condominium units or interests than the number of tenant lots,
23spaces, or floating home berths that exist prior to conversion.

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


27

 

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

15

 

12(c) The petition signed by owners of floating homes in a floating
13home marina proposed for conversion to resident ownership
14pursuant 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

 

P10   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
14begin delete ofend deletebegin insert orend insert 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.

36

SEC. 6.  

No reimbursement is required by this act pursuant to
37Section 6 of Article XIII B of the California Constitution because
38a local agency or school district has the authority to levy service
39charges, fees, or assessments sufficient to pay for the program or
P11   1level of service mandated by this act, within the meaning of Section
217556 of the Government Code.



O

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