BILL NUMBER: AB 253 CHAPTERED
BILL TEXT
CHAPTER 432
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2013
APPROVED BY GOVERNOR SEPTEMBER 30, 2013
PASSED THE SENATE SEPTEMBER 9, 2013
PASSED THE ASSEMBLY SEPTEMBER 10, 2013
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
INTRODUCED BY Assembly Member Levine
FEBRUARY 6, 2013
An act to amend Section 11010.9 of, and to add Section 11010.85
to, 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, 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 2/3 of the owners of mobilehomes
who are tenants have applied, as specified, for a waiver, unless
specified conditions exist.
This bill would exempt floating home marinas from the requirement
of the filing of a tentative and final map for all subdivisions
creating 5 or more condominiums, if at least 2/3 of the owners of
floating homes who are tenants have applied, as specified, for a
waiver, unless specified conditions exist.
(3) Existing law, the Subdivided Lands Act, requires any person
who intends to offer subdivided lands for sale or lease, as
specified, to file with the Department of Real Estate an application
for a public report consisting of, among other things, a notice of
intention, as specified. Existing law exempts from the notice of
intention requirement the purchase of a mobilehome park by a
nonprofit corporation, under specified circumstances. Existing law
requires the subdivider of a mobilehome park that is proposed to be
converted to resident ownership to make a written disclosure, as
specified, to homeowners and residents of the park, with regard to
the tentative price of the subdivided interest proposed to be sold or
leased.
This bill would exempt from the notice of intention requirement
the purchase of a floating home marina by a nonprofit corporation,
under specified circumstances. The bill would also require the
subdivider of a floating home marina that is proposed to be converted
to resident ownership to make a specified written disclosure to
homeowners and residents of the marina, with regard to the tentative
price of the subdivided interest proposed to be sold or leased.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11010.85 is added to the Business and
Professions Code, to read:
11010.85. (a) The requirement that a notice of intention be filed
pursuant to Section 11010 is not applicable to the purchase of a
floating home marina by a nonprofit corporation if all of the
following occur:
(1) A majority of the shareholders or members of the nonprofit
corporation constitute a majority of the homeowners of the floating
home marina, and a majority of the members of the board of directors
of the nonprofit corporation are homeowners of the floating home
marina.
(2) All members of the corporation are residents of the floating
home marina. Members of the nonprofit corporation may enter into
leases with the corporation that are greater than five years in
length. "Homeowners" or "residents" of the floating home marina shall
include a bona fide secured party who has, pursuant to a security
interest in a membership, taken title to the membership by means of
foreclosure, repossession, or voluntary repossession, and who is
actively attempting to resell the membership to a prospective
resident or homeowner of the floating home marina, in accordance with
subdivision (f) of Section 7312 of the Corporations Code.
(3) A permit to issue securities under Section 25113 of the
Corporations Code is obtained from the Department of Business
Oversight, Division of Corporations. In the case of a nonissuer
transaction (as defined by Section 25011 of the Corporations Code)
involving the offer to resell or the resale of memberships by a bona
fide secured party as described in paragraph (2) of this section, a
permit is not required where the transaction is exempt from the
qualification requirements of Section 25130 of the Corporations Code
pursuant to subdivision (e) of Section 25104 of the Corporations
Code. The exemption from qualification pursuant to subdivision (e) of
Section 25104 of the Corporations Code available to a bona fide
secured party does not eliminate the requirement of this section that
the nonprofit corporation shall either file a notice of intention
pursuant to Section 11010 or obtain a permit pursuant to Section
25113 of the Corporations Code.
(4) All funds of tenants for the purchase of the floating home
marina are deposited in escrow until the document transferring title
of the floating home marina to the nonprofit corporation is recorded.
The escrow also shall include funds of homeowners that shall be
available to the homeowners association nonprofit corporation for
payment of any and all costs reasonably associated with the
processing and conversion of the floating home marina into
condominium interests. Payment of these costs may be made from the
funds deposited in escrow prior to the close of escrow upon the
direction of the homeowners association nonprofit corporation.
(b) The funds described by paragraph (4) of subdivision (a), or
any other funds subsequently received from tenants for purposes other
than the purchase of a separate subdivided interest in any portion
of the floating home marina, are not subject to the requirements of
Section 11013.1, 11013.2, or 11013.4.
SEC. 2. Section 11010.9 of the Business and Professions Code is
amended to read:
11010.9. (a) Notwithstanding any other provision of law, the
subdivider of a mobilehome park or floating home marina that is
proposed to be converted to resident ownership, prior to filing a
notice of intention pursuant to Section 11010, shall disclose to
homeowners and residents of the park or marina, by written notice,
the tentative price of the subdivided interest proposed to be sold or
leased.
(b) The disclosure notice required by subdivision (a) shall
include a statement that the tentative price is not binding, could
change between the time of disclosure and the time of governmental
approval to commence the actual sale or lease of the subdivided
interests in the park or marina, as the result of conditions imposed
by the state or local government for approval of the park or marina
conversion, increased financing costs, or other factors and, in the
absence of bad faith, shall not give rise to a claim for liability
against the provider of this information.
(c) The disclosure notice required by subdivision (a) shall not be
construed to authorize the subdivider of a mobilehome park or
floating home marina that is proposed to be converted to resident
ownership to offer to sell or lease, sell or lease, or accept money
for the sale or lease of, subdivided interests in the park or marina,
or to engage in any other activities that are otherwise prohibited,
with regard to subdividing the park or marina into ownership
interests, prior to the issuance of a public report pursuant to this
chapter.
SEC. 3. Section 66427.4 of the Government Code is amended to read:
66427.4. (a) At the time of filing a tentative or parcel map for
a subdivision to be created from the conversion of a mobilehome park
or floating home marina to another use, the subdivider shall also
file a report on the impact of the conversion upon the displaced
residents of the mobilehome park or floating home marina to be
converted. In determining the impact of the conversion on displaced
mobilehome park or floating home marina residents, the report shall
address the availability of adequate replacement space in mobilehome
parks or floating home marinas.
(b) The subdivider shall make a copy of the report available to
each resident of the mobilehome park or floating home marina at least
15 days prior to the hearing on the map by the advisory agency or,
if there is no advisory agency, by the legislative body.
(c) The legislative body, or an advisory agency that is authorized
by local ordinance to approve, conditionally approve, or disapprove
the map, may require the subdivider to take steps to mitigate any
adverse impact of the conversion on the ability of displaced
mobilehome park or floating home marina residents to find adequate
space in a mobilehome park or floating home marina, respectively.
(d) This section establishes a minimum standard for local
regulation of conversions of mobilehome parks and floating home
marinas into other uses and shall not prevent a local agency from
enacting more stringent measures.
(e) This section shall not be applicable to a subdivision that is
created from the conversion of a rental mobilehome park or rental
floating home marina to resident ownership.
SEC. 4. Section 66427.6 is added to the Government Code, to read:
66427.6. At the time of filing a tentative or parcel map for a
subdivision to be created from the conversion of a rental floating
home marina to resident ownership, the subdivider shall avoid the
economic displacement of all nonpurchasing residents in the following
manner:
(a) The subdivider shall offer each existing tenant an option to
either purchase his or her condominium or subdivided unit, which is
to be created by the conversion of the marina to resident ownership,
or to continue residency as a tenant.
(b) The subdivider shall file a report on the impact of the
conversion upon residents of the floating home marina to be converted
to a resident-owned subdivided interest.
(c) The subdivider shall make a copy of the report available to
each resident of the floating home marina at least 15 days prior to
the hearing on the map by the advisory agency or, if there is no
advisory agency, by the legislative body.
(d) (1) The subdivider shall obtain a survey of support of
residents of the floating home marina for the proposed conversion.
(2) The survey of support shall be conducted in accordance with an
agreement between the subdivider and a resident homeowners'
association, if any, that is independent of the subdivider or
floating home marina owner.
(3) The survey shall be obtained pursuant to a written ballot.
(4) The survey shall be conducted so that each occupied floating
home berth has one vote.
(5) The results of the survey shall be submitted to the local
agency upon the filing of the tentative or parcel map, to be
considered in the agency's decision as to whether to approve,
conditionally approve, or disapprove the map, and the agency may
disapprove the map if it finds that the results of the survey have
not demonstrated the support of at least a majority of the marina's
homeowners.
(6) Local legislative bodies may enact local regulations to
implement the requirements of this subdivision.
(e) The subdivider shall be subject to a hearing by a legislative
body or advisory agency, which is authorized by local ordinance to
approve, conditionally approve, or disapprove the map. The scope of
the hearing shall be limited to the issue of compliance with this
section.
(f) The subdivider shall be required to avoid the economic
displacement of all nonpurchasing residents in accordance with the
following:
(1) As to nonpurchasing residents who are not lower income
households, as defined in Section 50079.5 of the Health and Safety
Code, the monthly rent, including any applicable fees or charges for
use of any preconversion amenities, may increase from the
preconversion rent to market levels, as defined in an appraisal
conducted in accordance with nationally recognized professional
appraisal standards, in equal annual increases over a four-year
period.
(2) As to nonpurchasing residents who are lower income households,
as defined in Section 50079.5 of the Health and Safety Code, the
monthly rent, including any applicable fees or charges for use of any
preconversion amenities, may increase from the preconversion rent by
an amount equal to the average monthly increase in rent in the four
years immediately preceding the conversion, except that the monthly
rent shall not be increased by an amount greater than the average
monthly percentage increase in the Consumer Price Index for the most
recently reported period.
SEC. 5. Section 66428.1 of the Government Code is amended to read:
66428.1. (a) When at least two-thirds of the owners of
mobilehomes or floating homes who are tenants in the mobilehome park
or floating home marina sign a petition indicating their intent to
purchase the mobilehome park or the floating home marina for purposes
of converting it to resident ownership, and a field survey is
performed, the requirement for a parcel map or a tentative and final
map shall be waived unless any of the following conditions exists:
(1) There are design or improvement requirements necessitated by
significant health or safety concerns.
(2) The local agency determines that there is an exterior boundary
discrepancy that requires recordation of a new parcel or tentative
and final map.
(3) The existing parcels that exist prior to the proposed
conversion were not created by a recorded parcel or final map.
(4) The conversion would result in the creation of more
condominium units or interests than the number of tenant lots,
spaces, or floating home berths that exist prior to conversion.
(b) The petition signed by owners of mobilehomes in a mobilehome
park proposed for conversion to resident ownership pursuant to
subdivision (a) shall read as follows:
MOBILEHOME PARK PETITION
AND
DISCLOSURE STATEMENT
SIGNING THIS PETITION INDICATES YOUR SUPPORT
FOR CONVERSION OF THIS MOBILEHOME PARK TO
RESIDENT OWNERSHIP. THIS DISCLOSURE STATEMENT
CONCERNS THE REAL PROPERTY SITUATED IN THE CITY
OF ____, COUNTY OF ____, STATE OF CALIFORNIA,
DESCRIBED AS ____. THE TOTAL COST FOR
CONVERSION AND PURCHASE OF THE PARK IS $____ TO
$____, EXCLUDING FINANCING COSTS. THE TOTAL
COST TO YOU FOR CONVERSION AND PURCHASE OF YOUR
OWNERSHIP INTEREST IS $____ TO $____, EXCLUDING
FINANCING COSTS. IF TWO-THIRDS OF THE
RESIDENTS IN THIS PARK SIGN THIS PETITION
INDICATING THEIR INTENT TO PURCHASE THE
MOBILEHOME PARK FOR PURPOSES OF CONVERTING IT
TO RESIDENT OWNERSHIP, THEN THE
REQUIREMENTS FOR A NEW PARCEL, OR TENTATIVE AND
FINAL SUBDIVISION MAP IN COMPLIANCE WITH THE
SUBDIVISION MAP ACT MUST BE WAIVED, WITH
CERTAIN VERY LIMITED EXCEPTIONS. WAIVING THESE
PROVISIONS OF LAW ELIMINATES NUMEROUS
PROTECTIONS THAT ARE AVAILABLE TO YOU.
______________________ __________________
Buyer, unit #, date Petitioner, date
(c) The petition signed by owners of floating homes in a floating
home marina proposed for conversion to resident ownership pursuant to
subdivision (a) shall read as follows:
FLOATING HOME MARINA PETITION
AND
DISCLOSURE STATEMENT
SIGNING THIS PETITION INDICATES YOUR SUPPORT
FOR CONVERSION OF THIS FLOATING HOME MARINA TO
RESIDENT OWNERSHIP. THIS DISCLOSURE STATEMENT
CONCERNS THE REAL PROPERTY SITUATED IN THE CITY
OF ____, COUNTY OF ____, STATE OF CALIFORNIA,
DESCRIBED AS ____. THE TOTAL COST FOR
CONVERSION AND PURCHASE OF THE PARK IS $____ TO
$____, EXCLUDING FINANCING COSTS. THE TOTAL
COST TO YOU FOR CONVERSION AND PURCHASE OF YOUR
OWNERSHIP INTEREST IS $____ TO $____, EXCLUDING
FINANCING COSTS. IF TWO-THIRDS OF THE
RESIDENTS IN THIS MARINA SIGN THIS
PETITION INDICATING THEIR INTENT TO PURCHASE
THE FLOATING HOME MARINA FOR PURPOSES OF
CONVERTING IT TO RESIDENT OWNERSHIP, THEN THE
REQUIREMENTS FOR A NEW PARCEL, OR TENTATIVE AND
FINAL SUBDIVISION MAP IN COMPLIANCE WITH THE
SUBDIVISION MAP ACT MUST BE WAIVED, WITH
CERTAIN VERY LIMITED EXCEPTIONS. WAIVING THESE
PROVISIONS OF LAW ELIMINATES NUMEROUS
PROTECTIONS THAT ARE AVAILABLE TO YOU.
______________________ __________________
Buyer, unit #, date Petitioner, date
(d) The local agency shall provide an application for waiver
pursuant to this section. After the waiver application is deemed
complete pursuant to Section 65943, the local agency shall approve or
deny the application within 50 days. The applicant shall have the
right to appeal that decision to the governing body of the local
agency.
(e) If a tentative or parcel map is required, the local agency
shall not impose any offsite design or improvement requirements
unless these are necessary to mitigate an existing health or safety
condition. No other dedications, improvements, or in-lieu fees shall
be required by the local agency. In no case shall the mitigation of a
health or safety condition have the effect of reducing the number,
or changing the location, of existing mobilehome spaces or floating
home marina berths.
(f) If the local agency imposes requirements on an applicant to
mitigate a health or safety condition, the applicant and the local
agency shall enter into an unsecured improvement agreement. The local
agency shall not require bonds or other security devices pursuant to
Chapter 5 (commencing with Section 66499) for the performance of
that agreement. The applicant shall have a period of one year from
the date the agreement was executed to complete those improvements.
(g) If the waiver application provided for in this section is
denied by the local agency pursuant to the provisions of subdivision
(a), the applicant may proceed to convert the mobilehome park or the
floating home marina to a tenant-owned, condominium ownership
interest, but shall file a parcel map or a tentative and final map.
The local agency may not require the applicant to file and record a
tentative and final map unless the conversion creates five or more
parcels shown on the map. The number of condominium units or
interests created by the conversion shall not determine whether the
filing of a parcel or a tentative and final map shall be required.
(h) For the purposes of this section, the meaning of "resident
ownership" shall be as defined in Section 50781 of the Health and
Safety Code.
SEC. 6. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.