BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 253
                                                                  Page  1

          Date of Hearing:   May 1, 2013

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                    AB 253 (Levine) - As Amended:  April 24, 2013
           
          SUBJECT  :   Floating home marinas: conversion: subdivision map  
          requirements.

           SUMMARY  :   Extends various provisions of law that apply to the  
          subdivision of mobilehome parks to the subdivision of floating  
          home marinas. Specifically,  this bill  :  

          1)Extends to floating home marinas the same requirements that  
            apply 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, as follows:

             a)   Requires the subdivider to file a report on the impact  
               of the conversion upon the displaced residents of the  
               floating home marina to be converted;

             b)   Requires the report to address the availability of  
               adequate replacement space in other floating home marinas;

             c)   Requires the subdivider to 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 legislative body of the city or county  
               in which the marina is located;

             d)   Allows the advisory agency or legislative body to  
               require the subdivider to take steps to mitigate any  
               adverse impact of the conversion on the ability of  
               displaced floating home marina residents to find adequate  
               space in another floating home marina;

             e)   Provides that a local agency may enact more stringent  
               measures for the conversion of floating home marinas into  
               other uses and establishes a minimum standard for local  
               regulation of conversion of floating home marinas;

             f)   Specifies that these requirements constitute a minimum  
               standard for local regulation of conversions of floating  
               home marinas into other uses and do not prevent a local  








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               agency from enacting more stringent measures; and

             g)   States that these requirements are not applicable to a  
               subdivision to be created from the conversion of a rental  
               floating home marina to resident ownership.

          2)Extends to floating home marinas similar requirements that  
            apply at the time of filing a tentative or parcel map for the  
            conversion of a rental mobilehome park to resident ownership,  
            as follows:

             a)   Requires the subdivider to offer each existing tenant an  
               option to either purchase his or her condominium or  
               subdivided unit that will be created by the conversion or  
               continue residency as a tenant;

             b)   Requires the subdivider to file a report on the impact  
               of the conversion upon existing residents;

             c)   Requires the subdivider to make a copy of the report  
               available to each resident of the marina at least 15 days  
               prior to the hearing on the map by the advisory agency or  
               legislative body of the jurisdiction in which the marina is  
               located;

             d)   Requires the subdivider to obtain a survey of support of  
               residents of the marina for the proposed conversion, which  
               must be done pursuant to a written ballot and conducted in  
               accordance with an agreement between the subdivider and a  
               resident homeowners' association, if any, that is  
               independent of the subdivider or marina owner.

             e)   Requires that the results of the survey 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;

             f)   Allows the local 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 marina's  
               homeowners;

             g)   Authorizes local legislative bodies to enact local  
               regulations to implement the survey requirement; and








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             h)   Requires that the subdivider be subject  to a hearing by  
               a legislative body or advisory agency, which is authorized  
               to approve, conditionally approve, or disapprove the map.

          3)Extends to floating home marinas the same  requirements for  
            avoiding the economic displacement of nonpurchasing residents  
            that apply to the conversion of a rental mobilehome park to  
            resident ownership, as follows:

             a)   For nonpurchasing residents who are not lower income,  
               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; and

             b)   For nonpurchasing residents who are lower income, 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. 

          4)Specifies that the requirement for a parcel map or a tentative  
            and final map must be waived when at least two-thirds of the  
            owners of floating homes who are tenants in the floating home  
            marina sign a petition indicating their intent to purchase the  
            marina for purposes of converting it to resident ownership,  
            unless any of the following conditions exist:

             a)   There are design or improvement requirements  
               necessitated by significant health or safety concerns.

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

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








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             d)   The conversion would result in the creation of more  
               condominium units or interests than the number of floating  
               home berths that exist prior to conversion.

          5)If a tentative or parcel map is required for a conversion to  
            resident ownership, prohibits the local agency from imposing  
            any offsite design or improvement requirements unless these  
            are necessary to mitigate an existing health or safety  
            condition, and prohibits the local agency from requiring any  
            other dedications, improvements, or in-lieu fees.  

          6)Applies to floating home marinas the existing provision of the  
            Subdivided Lands Act that exempts the purchase of a mobilehome  
            park by a nonprofit corporation from the requirement to file a  
            notice of intention to offer subdivided lands for sale when a  
            majority of the shareholders or members of the corporation  
            constitute a majority of the homeowners in the park, a  
            majority of the members of the board of the corporation are  
            homeowners of the park, and all members of the corporation are  
            residents of the park.

          7)Applies to floating home marinas the existing provision of the  
            Subdivided Lands Act that requires the subdivider of a  
            mobilehome park that is proposed to be converted to resident  
            ownership to disclose to existing homeowners and residents of  
            the park, by written notice, the tentative price of the  
            subdivided interest proposed to be sold or leased.

           EXISTING LAW  

          1)Establishes various requirements under the Subdivision Map Act  
            related to the conversion of a mobilehome park to another use  
            (Government Code Section 66427.4).

          2)Establishes various requirements under the Subdivision Map Act  
            related to the conversion of a rental mobilehome park to  
            resident ownership, including requirements to avoid the  
            economic displacement of residents who choose not to purchase  
            their subdivided lot and to conduct a survey or resident  
            support for the conversion (Government Code Section 66427.5).

          3)Exempts from the requirement for a parcel map or tentative and  
            final map the conversion of a mobilehome park to resident  
            ownership where two-thirds of the homeowners sign a petition  








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            indicating their intent to purchase the park, under specified  
            conditions (Government Code Section 66428.1).

          4)Pursuant to the Subdivided Lands Act, requires any person who  
            intends to offer subdivided lands within California for sale  
            or lease to file with the Department of Real Estate an  
            application for a public report consisting of a notice of  
            intention and a completed questionnaire containing specified  
            information (Business and Professions Code Section 11010).

          5)Exempts from the notice of intention requirement the purchase  
            of a mobilehome park by a nonprofit corporation whose members  
            are the  residents of the park (Business and Professions Code  
            Section 11010.8).

          1)Requires the subdivider of a mobilehome park that is proposed  
            to be converted to resident ownership to disclose to existing  
            homeowners and residents of the park, by written notice, the  
            tentative price of the subdivided interest proposed to be sold  
            or leased (Business and Professions Code Section 11010.9).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          A floating home marina is similar to a mobilehome park in that  
          residents typically own their homes but rent the spaces upon  
          which their homes are installed. Similar to a mobilehome that  
          has been installed in a park, once a floating home is installed  
          in a berth it is nearly impossible to move it. Much like the  
          vast majority of mobilehomes, floating homes are treated like  
          real property and are subject to property tax. There are five  
          floating home marinas in California, one small marina in Alameda  
          County and four in Richardson Bay in Marin County. The Marin  
          County marinas collectively have about 500 homes.

          The Subdivision Map Act includes provisions that govern the  
          conversion of a mobilehome park to resident ownership, as well  
          as the conversion of a mobilehome park to another use. The  
          Subdivided Lands Act also includes provisions related to the  
          conversion of mobilehome parks to resident ownership. Despite  
          the similarities between floating home marinas and mobilehome  
          parks, none of these provisions applies to floating home  
          marinas. Because the law is silent, local governments have no  
          guidance on how to handle an application to subdivide a marina.








                                                                  AB 253
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          AB 253 applies both provisions of the Subdivided Lands act that  
          relate to mobilehome park conversions and two of the three  
          provisions of the Subdivision Map Act that relate to mobilehome  
          park conversions to floating home marinas. The bill creates a  
          new section of the Subdivision Map Act that applies exclusively  
          to the conversion of floating home marinas to resident  
          ownership. The section is nearly identical to the existing  
          section of the Map Act that applies to the conversion of  
          mobilehome parks to resident ownership, except that it allows a  
          local government to disapprove a conversion if a survey of  
          existing homeowners shows that less than a majority supports the  
          conversion. For mobilehome parks, current law requires a survey  
          of resident support, which the local government may consider in  
          deciding on the conversion application, but provides no further  
          direction on how the survey is to be used.

          The author and sponsor argue that this bill will allow a  
          homeowners' association to purchase a marina in the event that  
          the owner wants to sell.  Without the ability to subdivide the  
          marina, it would be nearly impossible for marina residents to  
          get financing to purchase the marina. Additionally, the author  
          and sponsor note that the process created in the bill will treat  
          existing homeowners fairly, whether they want to purchase their  
          subdivided interest in the marina or remain as a renter.




           Double-referral:
           
          This bill was also referred to the Assembly Committee on Local  
          Government, where it passed on April 10 by a vote of 9-0.

           Proposed amendment:
           
          On page 8, line 33, strike "park's" and insert "marina's."

           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Floating Homes Association (sponsor)
          Marin County Supervisor Kathryn Sears








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           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916)  
          319-2085