Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 692

Introduced by Assembly Member Torres

February 21, 2013

An act to amend begin delete Section 50783 end delete begin insert Sections 50781 and 50782 end insert of begin insert , and to add Section 50784.5 to, end insert the Health and Safety Code, relating to mobilehomes begin insert , and making an appropriation therefor end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 692, as amended, Torres. Mobilehomes: loans.

Existing law authorizes the Department of Housing and Community Development to make loans from the Mobilehome Park Purchase Fund begin insert , a continuously appropriated fund, end insert to qualified mobilehome park residents, resident organizations, and nonprofit housing sponsors or local public entities to finance conversion of the parks to resident ownership and to make monthly housing costs affordable.

This bill would begin delete make a technical, nonsubstantive change to this provision end delete begin insert change the name of the fund to the Mobilehome Rehabilitation and Park Purchase Fund and authorize the department to provide loans from the fund to mobilehome owners end insert begin insert to finance the cost of repairs necessary to ensure that the mobilehome complies with all applicable health and safety standards, or to finance the cost of accessibility features necessary to allow the mobilehome owner to continue living in the home safely end insert .

begin insert

By authorizing a new purpose for the use of continuously appropriated funds, this bill would make an appropriation.

end insert

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 50781 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

50781.  

Unless the context otherwise requires, the following
definitions given in this section shall control construction of this
chapter:

(a) “Affordable” means that, where feasible, low-income
residents should not pay more than 30 percent of their monthly
income for housing costs.

(b) “Conversion costs” includes the cost of acquiring the
mobilehome park, the costs of planning and processing the
conversion, the costs of any needed repairs or rehabilitation, and
any expenditures required by a governmental agency or lender for
the project.

(c) “Department” means the Department of Housing and
Community Development.

(d) “Fund” means the Mobilehome begin insert Rehabilitation and end insert Park
Purchase Fund created pursuant to Section 50782.

(e) “Housing costs” means the total cost of owning, occupying,
and maintaining a mobilehome and a lot or space in a mobilehome
park. The department’s regulations shall specify the factors
included in these costs and may, for the purposes of calculating
affordability, establish reasonable allowances.

(f) “Individual interest in a mobilehome park” means any interest
that is fee ownership or a lesser interest that entitles the holder to
occupy a lot or space in a mobilehome park for a period of not less
than either 15 years or the life of the holder. Individual interests
in a mobilehome park include, but are not limited to, the following:

(1) Ownership of a lot or space in a mobilehome park or
subdivision.

(2) A membership or shares in a stock cooperative, as defined
in Section 11003.2 of the Business and Professions Code, or a
limited equity housing cooperative, as defined in Section 33007.5
of this code.

(3) Membership in a nonprofit mutual benefit corporation that
owns, operates, or owns and operates the mobilehome park.

(g) “Low-income resident” means an individual or household
that is a lower income household, as defined in Section 50079.5.
However, personal assets shall not be considered in the calculation
of income, except to the extent that they actually generate income.

(h) “Low-income spaces” means those spaces in a mobilehome
park operated by a resident organization, a qualified nonprofit
housing sponsor, or a local public entity that are occupied by
low-income residents.

(i) “Mobilehome park” means a mobilehome park, as defined
in Section 18214, or a manufactured home subdivision created by
the conversion of a mobilehome park, as defined in Section 18214,
including a senior park, to resident ownership or ownership by a
qualified nonprofit housing sponsor or local public entity.

(j) “Program” means the Mobilehome begin insert Rehabilitation and end insert Park
Resident Ownership Program.

(k) “Qualified nonprofit housing sponsor” means a nonprofit
public benefit corporation, as defined in Part 2 (commencing with
Section 5110) of Division 2 of the Corporations Code, that (1) has
received its tax-exempt status under Section 501(c)(3) of the
Internal Revenue Code, (2) is not affiliated with or controlled by
a for-profit organization or individual, (3) has extensive experience
with the development and operation of publicly subsidized
affordable housing, (4) the department determines is qualified by
experience and capability to own and operate a mobilehome park
that provides housing affordable to low-income households, and
(5) has formal arrangements for ensuring resident participation or
input in the management of the park that may include, but not be
limited to, membership on the board of directors. “Qualified
nonprofit housing sponsor” also means a limited partnership where
all of the general partners are nonprofit mutual or public benefit
corporations that meet the requirements of paragraphs (1) to (5),
inclusive.

(l) “Resident organization” means a group of mobilehome park
residents who have formed a nonprofit corporation, cooperative
corporation, or other entity or organization for the purpose of
acquiring the mobilehome park in which they reside and converting
the mobilehome park to resident ownership. The membership of
a resident organization shall include at least two-thirds of the
households residing in the mobilehome park, or in each park of a
combination of parks where the residents of two or more parks
combine to form a single resident organization. The two-thirds of
households in the resident organization at the time of funding the
park need not be the same households that were residing in the
park when the application for assistance was submitted to the
department. A household’s membership in the resident organization
when the application was submitted to the department shall not be
a requirement for that household to receive a loan or assistance
under this chapter.

(m) “Resident ownership” means, depending on the context,
either the ownership by a resident organization of an interest in a
mobilehome park that entitles the resident organization to control
the operations of the mobilehome park for a term of no less than
15 years, or the ownership of individual interests in a mobilehome
park, or both.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 50782 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

50782.  

(a) The Mobilehome begin insert Rehabilitation and end insert Park Purchase
Fund is hereby created in the State Treasury and, notwithstanding
Section 13340 of the Government Code or any other law, is
continuously appropriated to the department for the purpose of
providing loans pursuant to this chapter and for related
administrative costs of the department. Notwithstanding Section
16305.7 of the Government Code, any moneys received by the
department pursuant to this chapter, and any other sources,
repayments, interest, or new appropriations, shall be deposited in
the fund. Except as described in subdivision (b), moneys in the
fund shall not be subject to transfer to any other fund pursuant to
any provision of Part 2 (commencing with Section 16300) of
Division 4 of Title 2 of the Government Code, except the Surplus
Money Investment Fund. The department may require the transfer
of moneys in the fund to the Surplus Money Investment Fund for
investment pursuant to Article 4 (commencing with Section 16470)
of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government
Code. Notwithstanding Section 16305.7 of the Government Code,
all interest, dividends, and pecuniary gains from the investments
shall accrue to the fund.

(b) Notwithstanding any other law, the Controller may use the
moneys in the Mobilehome begin insert Rehabilitation and end insert Park Purchase Fund
for loans to the General Fund as provided in Sections 16310 and
16381 of the Government Code. However, interest shall be paid
on all moneys loaned to the General Fund from the Mobilehome
begin insert Rehabilitation and end insert Park Purchase Fund. Interest payable shall be
computed at a rate determined by the Pooled Money Investment
Board to be the current earning rate of the fund from which loaned.
This subdivision does not authorize any transfer that will interfere
with the carrying out of the object for which the Mobilehome Park
Purchase Fund was created.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 50784.5 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 50784.5. end insert   

(a) The department may make loans from the fund
to a mobilehome owner whose home is located in a mobilehome
park to finance the cost of repairs necessary to ensure that the
mobilehome complies with all applicable health and safety
standards, or to finance the cost of accessibility features necessary
to allow the mobilehome owner to continue living in the home
safely.

(b) Loans provided pursuant to this section shall be for a term
of no more than three years and shall bear interest at a rate of 3
percent per annum, unless the department finds that a lower
interest rate is necessary and will not jeopardize the financial
stability of the fund.

(c) Loans provided pursuant to this section shall not exceed the
current appraised value of the mobilehome.

end insert

begin delete

SECTION 1.  

Section 50783 of the Health and Safety Code is
amended to read:

50783.  

(a) The department may make loans from the fund to
resident organizations for purposes of financing mobilehome park
conversion costs.

(b) Loans provided pursuant to this section shall be for a term
of no more than three years and shall bear interest at a rate of 3
percent per annum, unless the department finds that a lower interest
rate is necessary and will not jeopardize the financial stability of
the fund.

(c) Loans provided pursuant to this section shall be for the
minimum amount necessary to enable a resident organization to
acquire and convert the mobilehome park. To the extent possible,
the loan amount shall not exceed 50 percent of the approved
conversion costs. However, the loan amount may be for up to 95
percent of the approved conversion costs attributable to the
low-income households in the park when approved by the
department.

(d) The department may grant approval to exceed 50 percent of
the approved conversion costs only if both of the following are
demonstrated:

(1) That the applicant has made an effort to secure additional
funds from other sources and these funds are not available.

(2) That the project would not be feasible, as determined by the
department, without a waiver of the 50-percent financing limitation.

(e) The total secured debt in a superior position to the
department’s loan plus the department’s loan shall not exceed the
value of the collateral securing the loan.

end delete