Amended in Senate September 4, 2013

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 amendbegin delete Sections 11010.8 andend deletebegin insert Sectionend insert 11010.9 ofbegin insert, and to add Section 11010.85 to,end insert 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:

begin delete
P3    1

SECTION 1.  

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

3

11010.8.  

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

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

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

18(3) A permit to issue securities under Section 25113 of the
19Corporations Code is obtained from the Department of Business
20Oversight, Division of Corporations. In the case of a nonissuer
21transaction (as defined by Section 25011 of the Corporations Code)
22involving the offer to resell or the resale of memberships by a bona
23fide secured party as described in paragraph (2) of this section, a
24permit is not required where the transaction is exempt from the
25qualification requirements of Section 25130 of the Corporations
26Code pursuant to subdivision (e) of Section 25104 of the
27Corporations Code. The exemption from qualification pursuant to
28subdivision (e) of Section 25104 of the Corporations Code
29available to a bona fide secured party does not eliminate the
30requirement of this section that the nonprofit corporation shall
31either file a notice of intention pursuant to Section 11010 or obtain
32a permit pursuant to Section 25113 of the Corporations Code.

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

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

end delete
10begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 11010.85 is added to the end insertbegin insertBusiness and
11Professions Code
end insert
begin insert, to read:end insert

begin insert
12

begin insert11010.85.end insert  

(a) The requirement that a notice of intention be
13filed pursuant to Section 11010 is not applicable to the purchase
14of a floating home marina by a nonprofit corporation if all of the
15following occur:

16(1) A majority of the shareholders or members of the nonprofit
17corporation constitute a majority of the homeowners of the floating
18home marina, and a majority of the members of the board of
19directors of the nonprofit corporation are homeowners of the
20floating home marina.

21(2) All members of the corporation are residents of the floating
22home marina. Members of the nonprofit corporation may enter
23into leases with the corporation that are greater than five years
24in length. “Homeowners” or “residents” of the floating home
25marina shall include a bona fide secured party who has, pursuant
26to a security interest in a membership, taken title to the membership
27by means of foreclosure, repossession, or voluntary repossession,
28and who is actively attempting to resell the membership to a
29prospective resident or homeowner of the floating home marina,
30in accordance with subdivision (f) of Section 7312 of the
31Corporations Code.

32(3) A permit to issue securities under Section 25113 of the
33Corporations Code is obtained from the Department of Business
34Oversight, Division of Corporations. In the case of a nonissuer
35transaction (as defined by Section 25011 of the Corporations Code)
36involving the offer to resell or the resale of memberships by a bona
37fide secured party as described in paragraph (2) of this section,
38a permit is not required where the transaction is exempt from the
39qualification requirements of Section 25130 of the Corporations
40Code pursuant to subdivision (e) of Section 25104 of the
P6    1Corporations Code. The exemption from qualification pursuant
2to subdivision (e) of Section 25104 of the Corporations Code
3available to a bona fide secured party does not eliminate the
4requirement of this section that the nonprofit corporation shall
5either file a notice of intention pursuant to Section 11010 or obtain
6a permit pursuant to Section 25113 of the Corporations Code.

7(4) All funds of tenants for the purchase of the floating home
8marina are deposited in escrow until the document transferring
9title of the floating home marina to the nonprofit corporation is
10recorded. The escrow also shall include funds of homeowners that
11shall be available to the homeowners association nonprofit
12corporation for payment of any and all costs reasonably associated
13with the processing and conversion of the floating home marina
14into condominium interests. Payment of these costs may be made
15from the funds deposited in escrow prior to the close of escrow
16upon the direction of the homeowners association nonprofit
17corporation.

18(b) The funds described by paragraph (4) of subdivision (a), or
19any other funds subsequently received from tenants for purposes
20other than the purchase of a separate subdivided interest in any
21portion of the floating home marina, are not subject to the
22requirements of Section 11013.1, 11013.2, or 11013.4.

end insert
23

SEC. 2.  

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

25

11010.9.  

(a) Notwithstanding any other provision of law, the
26subdivider of a mobilehome park or floating home marina that is
27proposed to be converted to resident ownership, prior to filing a
28notice of intention pursuant to Section 11010, shall disclose to
29homeowners and residents of the park or marina, by written notice,
30the tentative price of the subdivided interest proposed to be sold
31or leased.

32(b) The disclosure notice required by subdivision (a) shall
33include a statement that the tentative price is not binding, could
34change between the time of disclosure and the time of
35governmental approval to commence the actual sale or lease of
36the subdivided interests in the park or marina, as the result of
37conditions imposed by the state or local government for approval
38of the park or marina conversion, increased financing costs, or
39other factors and, in the absence of bad faith, shall not give rise to
40a claim for liability against the provider of this information.

P7    1(c) The disclosure notice required by subdivision (a) shall not
2be construed to authorize the subdivider of a mobilehome park or
3floating home marina that is proposed to be converted to resident
4ownership to offer to sell or lease, sell or lease, or accept money
5for the sale or lease of, subdivided interests in the park or marina,
6or to engage in any other activities that are otherwise prohibited,
7with regard to subdividing the park or marina into ownership
8interests, prior to the issuance of a public report pursuant to this
9chapter.

10

SEC. 3.  

Section 66427.4 of the Government Code is amended
11to read:

12

66427.4.  

(a) At the time of filing a tentative or parcel map for
13a subdivision to be created from the conversion of a mobilehome
14park or floating home marina to another use, the subdivider shall
15also file a report on the impact of the conversion upon the displaced
16residents of the mobilehome park or floating home marina to be
17converted. In determining the impact of the conversion on displaced
18mobilehome park or floating home marina residents, the report
19shall address the availability of adequate replacement space in
20mobilehome parks or floating home marinas.

21(b) The subdivider shall make a copy of the report available to
22each resident of the mobilehome park or floating home marina at
23least 15 days prior to the hearing on the map by the advisory
24agency or, if there is no advisory agency, by the legislative body.

25(c) The legislative body, or an advisory agency that is authorized
26by local ordinance to approve, conditionally approve, or disapprove
27the map, may require the subdivider to take steps to mitigate any
28adverse impact of the conversion on the ability of displaced
29mobilehome park or floating home marina residents to find
30adequate space in a mobilehome park or floating home marina,
31respectively.

32(d) This section establishes a minimum standard for local
33regulation of conversions of mobilehome parks and floating home
34marinas into other uses and shall not prevent a local agency from
35enacting more stringent measures.

36(e) This section shall not be applicable to a subdivision that is
37created from the conversion of a rental mobilehome park or rental
38floating home marina to resident ownership.

39

SEC. 4.  

Section 66427.6 is added to the Government Code, to
40read:

P8    1

66427.6.  

At the time of filing a tentative or parcel map for a
2subdivision to be created from the conversion of a rental floating
3home marina to resident ownership, the subdivider shall avoid the
4economic displacement of all nonpurchasing residents in the
5following manner:

6(a) The subdivider shall offer each existing tenant an option to
7either purchase his or her condominium or subdivided unit, which
8is to be created by the conversion of the marina to resident
9ownership, or to continue residency as a tenant.

10(b) The subdivider shall file a report on the impact of the
11conversion upon residents of the floating home marina to be
12converted to a resident-owned subdivided interest.

13(c) The subdivider shall make a copy of the report available to
14each resident of the floating home marina at least 15 days prior to
15the hearing on the map by the advisory agency or, if there is no
16advisory agency, by the legislative body.

17(d) (1) The subdivider shall obtain a survey of support of
18residents of the floating home marina for the proposed conversion.

19(2) The survey of support shall be conducted in accordance with
20an agreement between the subdivider and a resident homeowners’
21 association, if any, that is independent of the subdivider or floating
22home marina owner.

23(3) The survey shall be obtained pursuant to a written ballot.

24(4) The survey shall be conducted so that each occupied floating
25home berth has one vote.

26(5) The results of the survey shall be submitted to the local
27agency upon the filing of the tentative or parcel map, to be
28considered in the agency’s decision as to whether to approve,
29conditionally approve, or disapprove the map, and the agency may
30disapprove the map if it finds that the results of the survey have
31not demonstrated the support of at least a majority of the marina’s
32homeowners.

33(6) Local legislative bodies may enact local regulations to
34implement the requirements of this subdivision.

35(e) The subdivider shall be subject to a hearing by a legislative
36body or advisory agency, which is authorized by local ordinance
37to approve, conditionally approve, or disapprove the map. The
38scope of the hearing shall be limited to the issue of compliance
39with this section.

P9    1(f) The subdivider shall be required to avoid the economic
2displacement of all nonpurchasing residents in accordance with
3the following:

4(1) As to nonpurchasing residents who are not lower income
5households, as defined in Section 50079.5 of the Health and Safety
6Code, the monthly rent, including any applicable fees or charges
7for use of any preconversion amenities, may increase from the
8preconversion rent to market levels, as defined in an appraisal
9conducted in accordance with nationally recognized professional
10appraisal standards, in equal annual increases over a four-year
11period.

12(2) As to nonpurchasing residents who are lower income
13households, as defined in Section 50079.5 of the Health and Safety
14Code, the monthly rent, including any applicable fees or charges
15for use of any preconversion amenities, may increase from the
16preconversion rent by an amount equal to the average monthly
17increase in rent in the four years immediately preceding the
18conversion, except that the monthly rent shall not be increased by
19an amount greater than the average monthly percentage increase
20in the Consumer Price Index for the most recently reported period.

21

SEC. 5.  

Section 66428.1 of the Government Code is amended
22to read:

23

66428.1.  

(a) When at least two-thirds of the owners of
24mobilehomes or floating homes who are tenants in the mobilehome
25park or floating home marina sign a petition indicating their intent
26to purchase the mobilehome park or the floating home marina for
27purposes of converting it to resident ownership, and a field survey
28is performed, the requirement for a parcel map or a tentative and
29final map shall be waived unless any of the following conditions
30exists:

31(1) There are design or improvement requirements necessitated
32by significant health or safety concerns.

33(2) The local agency determines that there is an exterior
34boundary discrepancy that requires recordation of a new parcel or
35tentative and final map.

36(3) The existing parcels that exist prior to the proposed
37conversion were not created by a recorded parcel or final map.

38(4) The conversion would result in the creation of more
39condominium units or interests than the number of tenant lots,
40spaces, or floating home berths that exist prior to conversion.

P10   1(b) The petition signed by owners of mobilehomes in a
2mobilehome park proposed for conversion to resident ownership
3pursuant to subdivision (a) shall read as follows:


4

 

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 THAT ARE AVAILABLE TO YOU.

 


Buyer, unit #, date
   
Petitioner, date

32

 

29(c) The petition signed by owners of floating homes in a floating
30home marina proposed for conversion to resident ownership
31pursuant 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 THAT ARE AVAILABLE TO YOU.

 


Buyer, unit #, date
   
Petitioner, date

 

18(d) The local agency shall provide an application for waiver
19pursuant to this section. After the waiver application is deemed
20complete pursuant to Section 65943, the local agency shall approve
21or deny the application within 50 days. The applicant shall have
22the right to appeal that decision to the governing body of the local
23agency.

24(e) If a tentative or parcel map is required, the local agency shall
25not impose any offsite design or improvement requirements unless
26these are necessary to mitigate an existing health or safety
27condition. No other dedications, improvements, or in-lieu fees
28shall be required by the local agency. In no case shall the mitigation
29of a health or safety condition have the effect of reducing the
30number, or changing the location, of existing mobilehome spaces
31 or floating home marina berths.

32(f) If the local agency imposes requirements on an applicant to
33mitigate a health or safety condition, the applicant and the local
34agency shall enter into an unsecured improvement agreement. The
35local agency shall not require bonds or other security devices
36pursuant to Chapter 5 (commencing with Section 66499) for the
37performance of that agreement. The applicant shall have a period
38of one year from the date the agreement was executed to complete
39those improvements.

P12   1(g) If the waiver application provided for in this section is denied
2by the local agency pursuant to the provisions of subdivision (a),
3the applicant may proceed to convert the mobilehome park or the
4floating home marina to a tenant-owned, condominium ownership
5interest, but shall file a parcel map or a tentative and final map.
6The local agency may not require the applicant to file and record
7a tentative and final map unless the conversion creates five or more
8parcels shown on the map. The number of condominium units or
9interests created by the conversion shall not determine whether
10the filing of a parcel or a tentative and final map shall be required.

11(h) For the purposes of this section, the meaning of “resident
12ownership” shall be as defined in Section 50781 of the Health and
13Safety Code.

14

SEC. 6.  

No reimbursement is required by this act pursuant to
15Section 6 of Article XIII B of the California Constitution because
16a local agency or school district has the authority to levy service
17charges, fees, or assessments sufficient to pay for the program or
18level of service mandated by this act, within the meaning of Section
1917556 of the Government Code.



O

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