Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 587


Introduced by Assembly Member Chau

February 24, 2015


An act tobegin delete amendend deletebegin insert addend insert Sectionbegin delete 798.15 ofend deletebegin insert 798.58.5 toend insert the Civil Code,begin insert to amend Sections 18092.7, 18116.1, and 18550 of the Health and Safety Code, and to amend Section 5832 of the Revenue and Taxation Code,end insert relating to mobilehomes.

LEGISLATIVE COUNSEL’S DIGEST

AB 587, as amended, Chau. begin deleteMobilehome park residencies: rental agreements.end deletebegin insertMobilehomes: payments: nonpayment or late payments.end insert

begin insert

(1) Existing law subjects manufactured homes or mobilehomes sold as new prior to July 1, 1980, to a vehicle license fee and requires annual payment of the fee. Existing law provides that nonpayment of certain fees and penalties, including the vehicle license fee, constitutes a lien on the manufactured home or mobilehome, and prohibits the Department of Housing and Community Development from, among other things, issuing a duplicate or new certificate of title or registration card or amending the permanent title record of the manufactured home or mobilehome that is subject of that lien.

end insert
begin insert

This bill would, when a person who is not currently the registered owner of a manufactured home or mobilehome applies to the department for registration or transfer of registration of the manufactured home or mobilehome prior to December 31, 2018, and meets other specified requirements, require the department to waive all outstanding charges assessed by the department prior to the transfer of title of the manufactured home or mobilehome, release any lien imposed with respect to those charges, issue a duplicate or new certificate of title or registration card, and amend the title record of the manufactured home or mobilehome.

end insert
begin insert

(2) Existing law provides that mobilehomes and manufactured homes not subject to the vehicle license fee are subject to local property taxation, and requires the department to withhold the registration or transfer of registration of any manufactured home or mobilehome subject to local property taxation until the applicant for registration presents a tax clearance certificate or conditional tax clearance certificate issued by the tax collector of the county where the manufactured home or mobilehome is located. Existing law requires the county tax collector to issue a tax clearance certificate or conditional tax clearance certificate if specified requirements are met.

end insert
begin insert

This bill would, when a person who is not currently the registered owner of a manufactured home or mobilehome subject to local property taxation applies to the department for registration or transfer of registration of the manufactured home or mobilehome prior to December 31, 2018, and meets other specified requirements, require the department to issue a conditional transfer of title. The bill would require a county tax collector to issue a tax liability certificate to a person with a conditional transfer of title who applies for the certificate prior to January 1, 2019 and pays the taxes reasonably owed from the date of sale of the manufactured home or mobilehome. By increasing the duties of county tax collectors this bill would impose a state-mandated local program.

end insert
begin insert

(3) Existing law authorizes the management of a mobilehome park to terminate a tenancy for, among other things, failure of the homeowner or resident to comply with a local ordinance or state law or regulation relating to mobilehomes within a reasonable time after the homeowner receives a notice of noncompliance from the appropriate governmental agency. Under existing law, it is unlawful for any person to use or cause, or permit to be used for occupancy, any manufactured home or mobilehome that does not conform to the registration requirements of the department.

end insert
begin insert

This bill would prohibit eviction from a mobilehome park for nonconformance with the registration and titling requirements of state law prior to January 1, 2017, or when an application to transfer title of a manufactured home or mobilehome pursuant to the above-described provisions is filed prior to January 1, 2019, and completed within one year of the filing date. The bill would provide that it is not unlawful under these conditions for a park owner to permit an applicant to transfer title who is not in compliance with the registration requirements of the department to occupy a manufactured home or mobilehome. The bill would also make related and conforming changes.

end insert
begin insert

(4)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.

end insert
begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert
begin insert

(5)Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

end insert
begin insert

This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

end insert
begin delete

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks and prescribes the content of a rental agreement for a tenancy. The law requires that a copy of the Mobilehome Residency Law be provided as an exhibit and incorporated into the rental agreement by reference.

end delete
begin delete

This bill would make technical, nonsubstantive changes in these provisions.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 798.58.5 is added to the end insertbegin insertCivil Codeend insertbegin insert, to
2read:end insert

begin insert
3

begin insert798.58.5.end insert  

Notwithstanding Section 798.56, nonconformance
4with the registration and titling requirements of state law,
5including, but not limited to, nonpayment or late payment of any
6fees, taxes, penalties, or interest related to the ownership of a
7mobilehome or manufactured home, shall not be a basis for
P4    1eviction from a mobilehome park in either of the following
2situations:

3(a) Prior to January 1, 2017.

4(b) An application to transfer title pursuant to Article 4
5(commencing with Section 18098) of Chapter 8 of Part 2 of
6Division 13 or subdivision (d) of Section 18116.1 of the Health
7and Safety Code is filed prior to January 1, 2019, and completed
8within one year of the filing date.

end insert
9begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 18092.7 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
10amended to read:end insert

11

18092.7.  

(a)  begin deleteThe end deletebegin insertExcept as provided in subdivision (b) and
12Section 18116.1, the end insert
department shall withhold the registration or
13transfer of registration of any manufactured home, mobilehome,
14or floating home which is subject to local property taxation, other
15than a new manufactured home, mobilehome, or floating home
16for which application is being made for an original registration,
17until the applicant presents a tax clearance certificate or a
18conditional tax clearance certificate issued pursuant to Section
192189.8 or 5832 of the Revenue and Taxation Code by the tax
20collector of the county where the manufactured home, mobilehome,
21or floating home is located. Any conditional tax clearance
22certificate presented shall indicate that the tax liability has been
23satisfied pursuant to paragraph (3) of subdivision (m) of Section
2418035.

25(b)  In lieu of the tax clearance certificate or conditional tax
26clearance certificate required by subdivision (a), the department
27may accept a certification signed by the escrow officer under
28penalty of perjury that the tax collector of the county where the
29manufactured home is located has failed to respond to the written
30demand for a conditional tax clearance certificate as prescribed
31by subdivision begin delete ( l)end delete begin insert (m)end insert of Section 18035.

32begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 18116.1 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
33amended to read:end insert

34

18116.1.  

(a)  Nonpayment of the fees and penalties provided
35for in Sections 18114, 18114.1, and 18115, and in subdivisions
36(a), (b), (c), and (d) of Section 18116 that are due on a mobilehome,
37manufactured home, commercial coach, truck camper, or floating
38home shall constitute a lien in favor of the State of California in
39the amount owing.

P5    1(b)  Notwithstanding any other provision of law, the lien
2provided for in subdivision (a) shall include all fees and penalties
3due and unpaid beginning with the fees for original registration
4that became delinquent for 120 days or more and continue to accrue
5to include all fees and penalties that subsequently become due and
6remain unpaid.

7(c)  Until the amount of a lien provided for in subdivision (a)
8or (b) is paid to the department, the department shall not do either
9of the following:

10(1)  Amend the permanent title record of the manufactured
11home, mobilehome, commercial coach, truck camper, or floating
12home which is the subject of the lien for the purpose of transferring
13any ownership interest or transferring or creating any security
14interest in the manufactured home, mobilehome, commercial coach,
15truck camper, or floating home.

16(2)  Issue any duplicate, substitute, or new certificate of title,
17registration card, or copy of a registration card with respect to the
18manufactured home, mobilehome, commercial coach, truck camper,
19or floating home which is the subject of the lien.

begin insert

20(d) (1) When application is made to the department for
21registration or transfer of registration of a manufactured home or
22mobilehome, and the applicant is not currently the registered
23owner, with respect to all charges assessed by the department
24prior to the date the title or interest in the manufactured home or
25mobilehome was transferred to the applicant, the department shall
26release any lien imposed pursuant to this chapter and waive all
27outstanding charges assessed by the department, if all of the
28following requirements are met:

end insert
begin insert

29(A) The applicant provides documentation demonstrating to the
30satisfaction of the department ownership and the date of acquisition
31of title or interest pursuant to Section 18100.5 or 18102.5.

end insert
begin insert

32(B) The application is made prior to December 31, 2018.

end insert
begin insert

33(C) The applicant pays any charges assessed by the department
34during the period between the time the applicant took title or
35interest or December 31, 2014, whichever is later, and the time
36the applicant applies for relief pursuant to this subdivision.

end insert
begin insert

37(D) The applicant has not previously filed for relief pursuant
38to this subdivision.

end insert
begin insert

39(2) If the applicant meets the requirements of paragraph (1)
40and the other requirements of this chapter not related to
P6    1nonpayment or late payment of the department’s charges, fees,
2and penalties related to registration and titling, the department
3shall waive the outstanding charges, fees, or penalties identified
4in paragraph (1), amend the title record, and issue a duplicate,
5substitute, or new certificate of title, registration card, or copy of
6a registration card with respect to the manufactured home or
7mobilehome, in conformance with this chapter.

end insert
begin insert

8(3) For purposes of any amounts owing pursuant to this
9subdivision, the department may establish a long term payment
10program of up to five years. The department may provide that any
11amounts owing under the payment program shall constitute a lien
12in favor of the State of California in the amount owing and shall
13be paid in full if the manufactured home or mobilehome is
14subsequently transferred. Failure to make the payments required
15by the plan is a violation of this chapter for which the department
16may suspend, revoke, or cancel the certificate of title pursuant to
17Section 18122.

end insert
begin insert

18(4) (A) If the manufactured home or mobilehome for which an
19application has been submitted and approved pursuant to this
20subdivision and the other requirements of this chapter not related
21to nonpayment or late payment of the department’s charges, fees,
22and penalties related to registration and titling, is subject to local
23property taxation, the department shall issue a conditional transfer
24of title.

end insert
begin insert

25(B) Upon presentation of a completed tax liability certificate
26as provided in subdivision (f) of Section 5832 of the Revenue &
27 Taxation Code, if the applicant meets all of the requirements of
28this section and the other requirements of this chapter not related
29to nonpayment or late payment of the department’s charges, fees,
30and penalties related to registration and titling, and the
31requirements of paragraph (2) are met, the department shall amend
32the title record and issue a duplicate, substitute, or new certificate
33of title.

end insert
34begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 18550 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
35amended to read:end insert

36

18550.  

It is unlawful for any person to use or cause, or permit
37to be used for occupancy, any of the following manufactured homes
38or mobilehomes wherever the manufactured homes or mobilehomes
39are located, or recreational vehicles located in mobilehome parks:

P7    1(a)  Any manufactured home, mobilehome, or recreational
2vehicle supplied with fuel, gas, water, electricity, or sewage
3connections, unless the connections and installations conform to
4regulations of the department.

5(b)  Any manufactured home, mobilehome, or recreational
6vehicle that is permanently attached with underpinning or
7foundation to the ground, except for a manufactured home or
8mobilehome bearing a department insignia or federal label, that is
9installed in accordance with this part.

10(c)  begin insert(1)end insertbegin insertend insertAny manufactured home or mobilehome that does not
11conform to the registration requirements of thebegin delete department.end delete
12begin insert department, except as otherwise provided in this subdivision.end insert

begin insert

13(2) Nonconformance is not a basis for eviction from a
14mobilehome park of a person claiming to be an owner of a
15manufactured home or mobilehome if the person files an
16application to transfer title pursuant to Article 4 (commencing
17with Section 18098) of Chapter 8 of Part 2 of Division 13 or
18subdivision (d) of Section 18116.1 prior to January 1, 2019, and
19completes the application within one year of the filing date.

end insert
begin insert

20(3) It is not a violation of this section for a park owner to allow
21a person not in compliance with the registration requirements of
22the department to occupy a manufactured home or mobilehome if
23the person meets the requirements of paragraph (2).

end insert

24(d)  Any manufactured home, mobilehome, or recreational
25vehicle in an unsafe or unsanitary condition.

26(e)  Any manufactured home, mobilehome, or recreational
27vehicle that is structurally unsound and does not protect its
28occupants against the elements.

29begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 5832 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
30amended to read:end insert

31

5832.  

(a) (1) Upon application, the county tax collector shall
32issue a tax clearance certificate or a conditional tax clearance
33certificate.

34(2) Any tax clearance certificate issued shall be used to permit
35registration of used manufactured homes and for any other purposes
36that may be prescribed by the Controller. The certificate may
37indicate that the county tax collector finds that no local property
38tax is due or is likely to become due, or that any applicable local
39property taxes have been paid or are to be paid in a manner not
P8    1requiring the withholding of registration or the transfer of
2registration.

3(3) Any conditional tax clearance certificate issued shall indicate
4that the county tax collector finds that a tax liability exists, the
5amount due, and the final date that amount may be paid before a
6further tax liability is incurred. The certificate shall be in any form
7that the Controller may prescribe, and shall be executed, issued,
8and accepted for clearance of registration or permit issuance on
9the conditions which the Controller may prescribe.

10(b) Within five working days of receipt of the written demand
11for a conditional tax clearance certificate or tax clearance
12certificate, the county tax collector shall forward the conditional
13tax clearance certificate or tax clearance certificate, showing no
14tax liability exists, to the requesting escrow officer. In the event
15the final due date of the tax clearance certificate or conditional tax
16clearance certificate expires within 30 days of the date of its
17issuance, an additional conditional tax clearance certificate or tax
18 clearance certificate shall be completed, which has a final due date
19of at least 30 days beyond the date of issuance. The tax collector
20shall not charge a fee for the issuance of a certificate unless a
21previously issued tax clearance certificate or conditional tax
22clearance certificate expires prior to the date upon which title
23transfers. The fee for the issuance of a subsequent certificate with
24respect to that manufactured home shall be an amount equal to the
25actual costs of preparing and processing that certificate.

26(c) If the tax collector fails to comply with the demand within
2730 days from the date the demand is mailed, the escrow officer
28may close the escrow in accordance with the provisions of
29subdivision (m) of Section 18035 of the Health and Safety Code.

30(d) Notwithstanding any provisions of law requiring the tax
31collector to issue a tax clearance certificate or conditional tax
32clearance certificate within a specified period of time, when an
33escrow information demand is made pursuant to Section 18035 of
34the Health and Safety Code for a manufactured home that has not
35been enrolled in the county, the tax collector shall be afforded the
36number of working days necessary for the assessor to determine
37the value of the manufactured home and for the auditor to extend
38tax liability.

P9    1(e) The issuance, alteration, forgery, or use of any tax clearance
2certificate or conditional certificate in a manner contrary to the
3requirements of the Controller constitutes a misdemeanor.

begin insert

4(f) (1) Prior to January 1, 2019, a person with a conditional
5transfer of title as described in subparagraph (A) of paragraph
6(4) of subdivision (d) of Section 18116.1 of the Health & Safety
7Code may apply to the tax collector to issue either a tax liability
8or tax clearance certificate. The county tax collector shall issue a
9tax liability certificate if the person pays the taxes reasonably owed
10from the date of sale as shown on the conditional transfer of title,
11without penalties or interest, and not to exceed the amounts
12attributable one year prior to January 1, 2016.

end insert
begin insert

13(2) Upon issuance of a tax clearance or liability certificate, the
14applicant shall be listed as the owner of record for all local
15property tax purposes and the home shall not be subject to lien or
16seizure based on any taxes, penalties, or interest as noted on the
17certificate issued pursuant to paragraph (1). The tax collector
18shall notify the assessor and other county agencies of the change.

end insert
begin insert

19(3) This subdivision does not relieve any owner other than the
20applicant from tax liability, including penalties and interest, arising
21from nonpayment prior to the date of sale, or prohibit a county
22tax collector from collecting delinquent taxes, penalties, or interest
23due prior to the date of sale, from any owner other than the
24applicant.

end insert
25begin insert

begin insertSEC. 6.end insert  

end insert

begin insertThe Legislature finds and declares that the abatement
26of taxes, penalties, and interest incurred prior to the date of sale
27of a mobilehome or manufactured home to an applicant, as
28described in this act, serves a public purpose and does not
29constitute a gift of public funds within the meaning of Section 6 of
30Article XVI of the California Constitution. end insert

31begin insert

begin insertSEC. 7.end insert  

end insert
begin insert

If the Commission on State Mandates determines that
32this act contains costs mandated by the state, reimbursement to
33local agencies and school districts for those costs shall be made
34pursuant to Part 7 (commencing with Section 17500) of Division
354 of Title 2 of the Government Code.

end insert
36begin insert

begin insertSEC. 8.end insert  

end insert
begin insert

Notwithstanding Section 2229 of the Revenue and
37Taxation Code, no appropriation is made by this act and the state
38shall not reimburse any local agency for any property tax revenues
39lost by it pursuant to this act.

end insert
begin delete
P10   1

SECTION 1.  

Section 798.15 of the Civil Code is amended to
2read:

3

798.15.  

The rental agreement shall be in writing and shall
4contain, in addition to the provisions otherwise required by law to
5be included, all of the following:

6(a) The term of the tenancy and the rent therefor.

7(b) The rules and regulations of the park.

8(c) A copy of the text of this chapter shall be provided as an
9exhibit and shall be incorporated into the rental agreement by
10reference. Management shall do one of the following prior to
11February 1 of each year, if a significant change was made in this
12chapter by legislation enacted in the prior year:

13(1) Provide all homeowners with a copy of this chapter.

14(2) Provide written notice to all homeowners that there has been
15a change to this chapter and that they may obtain one copy of this
16chapter from management at no charge. Management shall provide
17a copy within a reasonable time, not to exceed seven days, upon
18request.

19(d) A provision specifying that:

20(1) It is the responsibility of the management to provide and
21maintain physical improvements in the common facilities in good
22 working order and condition.

23(2) With respect to a sudden or unforeseeable breakdown or
24deterioration of these improvements, the management shall have
25a reasonable period of time to repair the sudden or unforeseeable
26breakdown or deterioration and bring the improvements into good
27working order and condition after management knows or should
28have known of the breakdown or deterioration. For purposes of
29this paragraph, a reasonable period of time to repair a sudden or
30unforeseeable breakdown or deterioration shall be as soon as
31possible in situations affecting a health or safety condition, and
32shall not exceed 30 days in any other case except where exigent
33circumstances justify a delay.

34(e) A description of the physical improvements to be provided
35the homeowner during his or her tenancy.

36(f) A provision listing those services which will be provided at
37the time the rental agreement is executed and will continue to be
38offered for the term of tenancy and the fees, if any, to be charged
39for those services.

P11   1(g) A provision stating that management may charge a
2reasonable fee for services relating to the maintenance of the land
3and premises upon which a mobilehome is situated in the event
4the homeowner fails to maintain the land or premises in accordance
5with the rules and regulations of the park after written notification
6to the homeowner and the failure of the homeowner to comply
7within 14 days. The written notice shall state the specific condition
8to be corrected and an estimate of the charges to be imposed by
9management if the services are performed by management or its
10agent.

11(h) All other provisions governing the tenancy.

12(i) A copy of the following notice. Management shall also, prior
13to February 1 of each year, provide a copy of the following notice
14to all homeowners:
15

 

IMPORTANT NOTICE TO ALL MANUFACTURED HOME/MOBILEHOME OWNERS: CALIFORNIA LAW REQUIRES THAT YOU BE MADE AWARE OF THE FOLLOWING:

 

The Mobilehome Residency Law (MRL), found in Section 798 et seq. of the Civil Code, establishes the rights and responsibilities of homeowners and park management. The MRL is deemed a part of the terms of any park rental agreement or lease. This notice is intended to provide you with a general awareness of selected parts of the MRL. It does not serve as a legal explanation or interpretation. For authoritative information, you must read and understand the laws. These laws change from time to time. In any year in which the law has changed, you may obtain one copy of the full text of the law from management at no charge. This notice is required by Civil Code Section 798.15(i) and the information provided may not be current.

 

Homeowners and park management have certain rights and responsibilities under the MRL. These include, but are not limited to:

 

1.

 

Management must give a homeowner written notice of any increase in his or her rent at least 90 days before the date of the increase. (Civil Code Section 798.30)

2.

 

No rental or sales agreement may contain a provision by which a purchaser or a homeowner waives any of his or her rights under the MRL. (Civil Code Sections 798.19, 798.77)

3.

 

Management may not terminate or refuse to renew a homeowner’s tenancy except for one or more of the authorized reasons set forth in the MRL. (Civil Code Sections 798.55, 798.56)

4.

 

A homeowner must give written notice to the management of not less than 60 days before vacating his or her tenancy. (Civil Code Section 798.59)

5.

 

Homeowners, residents, and their guests must comply with the rental agreement or lease, including the reasonable rules and regulations of the park and all applicable local ordinances and state laws and regulations relating to mobilehomes. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56)

6.

 

Homeowners must pay rent, utility charges, and reasonable incidental service charges in a timely manner. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56)

7.

 

Homeowners have a right to peacefully assemble and freely communicate with respect to mobilehome living and for social or educational purposes. Homeowners have a right to meet in the park, at reasonable hours and in a reasonable manner, for any lawful purpose. Homeowners may not be charged a cleaning deposit in order to use the park clubhouse for meetings of resident organizations or for other lawful purposes, such as to hear from political candidates, so long as a homeowner of the park is hosting the meeting and all park residents are allowed to attend. Homeowners may not be required to obtain liability insurance in order to use common facilities unless alcohol is served. (Civil Code Sections 798.50, 798.51)

8.

 

If a home complies with certain standards, the homeowner is entitled to sell it in place in the park. Management may require certain upgrades. Management may not require a homeowner to sell his or her home to the park, may not charge a transfer or selling fee, and may not require a homeowner to use a broker or dealer approved by the park. A homeowner has a right to advertise his or her home for sale. Management may deny approval of a buyer, but only for certain reasons listed in the law. (Civil Code Sections 798.70-798.74)

9.

 

Management has the right to enter the space upon which a mobilehome is situated for maintenance of utilities, trees, and driveways; for inspection and maintenance of the space in accordance with the rules and regulations of the park when the homeowner or resident fails to maintain the space; and for protection and maintenance of the mobilehome park at any reasonable time, but not in a manner or at a time that would interfere with the resident’s quiet enjoyment of his or her home. (Civil Code Section 798.26)

10.

 

A homeowner may not make any improvements or alterations to his or her space or home without following the rules and regulations of the park and all applicable local ordinances and state laws and regulations, which may include obtaining a permit to construct, and, if required by park rules or the rental agreement, without prior written approval of management. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56)

   
P13   9

 

end delete


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