Amended in Senate June 25, 2013

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
P4    1mobilehome park or floating home marina, and a majority of the
2members of the board of directors of the nonprofit corporation are
3homeowners of the mobilehome park or the floating home marina.

4(2) All members of the corporation are residents of the
5mobilehome park or the floating home marina. Members of the
6nonprofit corporation may enter into leases with the corporation
7that are greater than five years in length. “Homeowners” or
8“residents” of the mobilehome park or floating home marina shall
9include a bona fide secured party who has, pursuant to a security
10interest in a membership, taken title to the membership by means
11of foreclosure, repossession, or voluntary repossession, and who
12is actively attempting to resell the membership to a prospective
13resident or homeowner of the mobilehome park or floating home
14marina, in accordance with subdivision (f) of Section 7312 of the
15Corporations Code.

16(3) A permit to issue securities under Section 25113 of the
17Corporations Code is obtained from the Department ofbegin insert Business
18Oversight, Division of end insert
Corporations. In the case of a nonissuer
19transaction (as defined by Section 25011 of the Corporations Code)
20involving the offer to resell or the resale of memberships by a bona
21fide secured party as described in paragraph (2) of this section, a
22permit is not required where the transaction is exempt from the
23qualification requirements of Section 25130 of the Corporations
24Code pursuant to subdivision (e) of Section 25104 of the
25Corporations Code. The exemption from qualification pursuant to
26subdivision (e) of Section 25104 of the Corporations Code
27available to a bona fide secured party does not eliminate the
28requirement of this section that the nonprofit corporation shall
29either file a notice of intention pursuant to Section 11010 or obtain
30a permit pursuant to Section 25113 of the Corporations Code.

31(4) All funds of tenants for the purchase of the mobilehome
32park or floating home marina are deposited in escrow until the
33document transferring title of the mobilehome park or floating
34home marina to the nonprofit corporation is recorded. The escrow
35also shall include funds of homeowners that shall be available to
36the homeowners association nonprofit corporation for payment of
37any and all costs reasonably associated with the processing and
38conversion of the mobilehome park or floating home marina into
39condominium interests. Payment of these costs may be made from
P5    1the funds deposited in escrow prior to the close of escrow upon
2the direction of the homeowners association nonprofit corporation.

3(b) The funds described by paragraph (4) of subdivision (a), or
4any other funds subsequently received from tenants for purposes
5other than the purchase of a separate subdivided interest in any
6portion of the mobilehome park or floating home marina, are not
7subject to the requirements of Section 11013.1, 11013.2, or
811013.4.

9

SEC. 2.  

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

11

11010.9.  

(a) Notwithstanding any other provision of law, the
12subdivider of a mobilehome park or floating home marina that is
13proposed to be converted to resident ownership, prior to filing a
14notice of intention pursuant to Section 11010, shall disclose to
15homeowners and residents of the park or marina, by written notice,
16the tentative price of the subdivided interest proposed to be sold
17or leased.

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

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

36

SEC. 3.  

Section 66427.4 of the Government Code is amended
37to read:

38

66427.4.  

(a) At the time of filing a tentative or parcel map for
39a subdivision to be created from the conversion of a mobilehome
40park or floating home marina to another use, the subdivider shall
P6    1also file a report on the impact of the conversion upon the displaced
2residents of the mobilehome park or floating home marina to be
3converted. In determining the impact of the conversion on displaced
4mobilehome park or floating home marina residents, the report
5shall address the availability of adequate replacement space in
6mobilehome parks or floating home marinas.

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

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

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

22(e) This section shall not be applicable to a subdivisionbegin delete whichend delete
23begin insert that end insert is created from the conversion of a rental mobilehome park
24or rental floating home marina to resident ownership.

25

SEC. 4.  

Section 66427.6 is added to the Government Code, to
26read:

27

66427.6.  

At the time of filing a tentative or parcel map for a
28subdivision to be created from the conversion of a rental floating
29home marina to resident ownership, the subdivider shall avoid the
30economic displacement of all nonpurchasing residents in the
31following manner:

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

36(b) The subdivider shall file a report on the impact of the
37conversion upon residents of the floating home marina to be
38converted tobegin delete resident ownedend deletebegin insert a resident-ownedend insert subdivided interest.

39(c) The subdivider shall make a copy of the report available to
40each resident of the floating home marina at least 15 days prior to
P7    1the hearing on the map by the advisory agency or, if there is no
2advisory agency, by the legislative body.

3(d) (1) The subdivider shall obtain a survey of support of
4residents of the floating home marina for the proposed conversion.

5(2) The survey of support shall be conducted in accordance with
6an agreement between the subdivider and a resident homeowners’
7 association, if any, that is independent of the subdivider or floating
8home marina owner.

9(3) The survey shall be obtained pursuant to a written ballot.

10(4) The survey shall be conducted so that each occupied floating
11home berth has one vote.

12(5) The results of the survey shall be submitted to the local
13agency upon the filing of the tentative or parcel map, to be
14considered in the agency’s decision as to whether to approve,
15conditionally approve, or disapprove the map, and the agency may
16disapprove the map if it finds that the results of the survey have
17not demonstrated the support of at least a majority of the marina’s
18homeowners.

19(6) Local legislative bodies may enact local regulations to
20implement the requirements of this subdivision.

21(e) The subdivider shall be subject to a hearing by a legislative
22body or advisory agency, which is authorized by local ordinance
23to approve, conditionally approve, or disapprove the map. The
24scope of the hearing shall be limited to the issue of compliance
25with this section.

26(f) The subdivider shall be required to avoid the economic
27displacement of all nonpurchasing residents in accordance with
28the following:

29(1) As to nonpurchasing residents who are not lower income
30households, as defined in Section 50079.5 of the Health and Safety
31Code, the monthly rent, including any applicable fees or charges
32for use of any preconversion amenities, may increase from the
33preconversion rent to market levels, as defined in an appraisal
34conducted in accordance with nationally recognized professional
35appraisal standards, in equal annual increases over a four-year
36period.

37(2) As to nonpurchasing residents who are lower income
38households, as defined in Section 50079.5 of the Health and Safety
39Code, the monthly rent, including any applicable fees or charges
40for use of any preconversion amenities, may increase from the
P8    1preconversion rent by an amount equal to the average monthly
2increase in rent in the four years immediately preceding the
3conversion, except that the monthly rent shall not be increased by
4an amount greater than the average monthly percentage increase
5in the Consumer Price Index for the most recently reported period.

6

SEC. 5.  

Section 66428.1 of the Government Code is amended
7to read:

8

66428.1.  

(a) When at least two-thirds of the owners of
9mobilehomes or floating homes who are tenants in the mobilehome
10park or floating home marina sign a petition indicating their intent
11to purchase the mobilehome park or the floating home marina for
12purposes of converting it to resident ownership, and a field survey
13is performed, the requirement for a parcel map or a tentative and
14final map shall be waived unless any of the following conditions
15begin delete exist:end deletebegin insert exists:end insert

16(1) There are design or improvement requirements necessitated
17by significant health or safety concerns.

18(2) The local agency determines that there is an exterior
19boundary discrepancy that requires recordation of a new parcel or
20tentative and final map.

21(3) The existing parcelsbegin delete whichend deletebegin insert thatend insert exist prior to the proposed
22conversion were not created by a recorded parcel or final map.

23(4) The conversion would result in the creation of more
24condominium units or interests than the number of tenant lots,
25spaces, or floating home berths that exist prior to conversion.

26(b) The petition signed by owners of mobilehomes in a
27mobilehome park proposed for conversion to resident ownership
28pursuant to subdivision (a) shall read as follows:


29

 

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 PROTECTIONSbegin delete WHICHend deletebegin insert THATend insert ARE AVAILABLE TO YOU.

 


Buyer, unit #, date
   
Petitioner, date

17

 

14(c) The petition signed by owners of floating homes in a floating
15home marina proposed for conversion to resident ownership
16pursuant 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 PROTECTIONSbegin delete WHICHend deletebegin insert THATend insert ARE AVAILABLE TO YOU.

 


Buyer, unit #, date
   
Petitioner, date

 

4(d) The local agency shall provide an application for waiver
5pursuant to this section. After the waiver application is deemed
6complete pursuant to Section 65943, the local agency shall approve
7or deny the application within 50 days. The applicant shall have
8the right to appeal that decision to the governing body of the local
9agency.

10(e) If a tentative or parcel map is required, the local agency shall
11not impose any offsite design or improvement requirements unless
12these are necessary to mitigate an existing health or safety
13condition. No other dedications, improvements, or in-lieu fees
14shall be required by the local agency. In no case shall the mitigation
15of a health or safety condition have the effect of reducing the
16number, or changing the location, of existing mobilehome spaces
17 or floating home marina berths.

18(f) If the local agency imposes requirements on an applicant to
19mitigate a health or safety condition, the applicant and the local
20agency shall enter into an unsecured improvement agreement. The
21local agency shall not require bonds or other security devices
22pursuant to Chapter 5 (commencing with Section 66499) for the
23performance of that agreement. The applicant shall have a period
24of one year from the date the agreement was executed to complete
25those improvements.

26(g) If the waiver application provided for in this section is denied
27by the local agency pursuant to the provisions of subdivision (a),
28the applicant may proceed to convert the mobilehome park or the
29floating home marina to a tenant-owned, condominium ownership
30interest, but shall file a parcel map or a tentative and final map.
31The local agency may not require the applicant to file and record
32a tentative and final map unless the conversion creates five or more
33parcels shown on the map. The number of condominium units or
34interests created by the conversion shall not determine whether
35the filing of a parcel or a tentative and final map shall be required.

36(h) For the purposes of this section, the meaning of “resident
37ownership” shall be as defined in Section 50781 of the Health and
38Safety Code.

39

SEC. 6.  

No reimbursement is required by this act pursuant to
40Section 6 of Article XIII B of the California Constitution because
P11   1a local agency or school district has the authority to levy service
2charges, fees, or assessments sufficient to pay for the program or
3level of service mandated by this act, within the meaning of Section
417556 of the Government Code.



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