BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 682


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          682 (Williams) - As Amended May 13, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes a person to have specified alterations,  
          conversions, and repairs made to a mobilehome, for purposes of  
          participating in the Mobilehome Park Utility Upgrade Program  
          (pilot program), without filing an application with the  








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          Department of Housing and Community Development (HCD).  Requires  
          HCD to inspect any alterations and conversions made to ensure  
          that health and safety standards are met, and authorizes HCD to  
          establish an hourly technical service fee to cover the  
          reasonable costs of inspections.


          FISCAL EFFECT:


          Unknown costs to HCD (Mobilehome-Manufactured Home Revolving  
          Fund) to fund the necessary health and safety inspections  
          associated with the mobilehome upgrades. This cost is expected  
          to be fully offset by a technical service fee authorized in the  
          bill.


          Staff notes that HCD inspection costs are generally recovered as  
          part of its owner permit application fee.  This bill exempts  
          participating mobilehome owners from acquiring a permit for the  
          needed work, and thus from paying the permit fee; but instead  
          authorizes HCD to establish an hourly technical service fee to  
          cover the reasonable inspection costs.


          COMMENTS:


          1)Purpose. According to the author, "the law requires  
            construction permits for alterations made to a mobilehome, and  
            a permit can only be issued if a homeowner has the title or  
            proper paperwork certifying they own their unit.  However,  
            it's not uncommon for a mobilehome owner to lack the title or  
            appropriate paperwork for their mobilehome, due to multiple  
            title transfers.  


            "AB 682 provides a narrow exemption to the permit requirements  
            for alterations to mobilehomes thereby ensuring the smooth  








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            implementation of the Mobilehome Park Utility Upgrade Program.  
            The narrow exemption would allow a utility to upgrade the  
            electric and gas system to mobilehome park tenants who may or  
            may not have up-to-date paperwork.  Mobilehome tenants would  
            be able to participate in the pilot program without a current  
            title or appropriate paperwork. The pilot program's successful  
            implementation means upgrading aging gas and electric  
            distribution systems in an effort to enhance both public  
            safety and service reliability for the state's mobilehome  
            residents." 


          2)Background. Existing law establishes the procedure for  
            transferring master-metered mobilehome parks to utilities that  
            provide direct service.  However, due to a variety of reasons,  
            few transfers have actually occurred since the law took effect  
            in 1997.  In 2014, the CPUC initiated a voluntary three-year  
            pilot program to encourage park owners to transfer  
            master-meter and submeter service to direct utility service.  


            The MHP Pilot Program authorizes each California  
            investor-owned utility to convert 10%, approximately 40,000,  
            of master-metered gas and/or electric mobilehome park spaces  
            within its operating territory to direct utility service.  The  
            pilot program involves the replacement of utility lines and  
            installation of new meters for new locations, and existing  
            service inlets. It also requires new service lines from the  
            new meters to the existing service inlets for the mobilehomes  
            which will be accompanied by installing new gas and/or  
            electric lines to the underside of mobilehomes in the park. It  
            requires extensive plan reviews and inspections of contractor  
            work.  


            
            Once the park is converted to direct utility services, current  
            residents will become new customers of the local serving CPUC  
            regulated utility, and will be "grandfathered" into the  








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            program so as to avoid the normal credit check and service  
            deposit requirements.   


            The lack of current and proper documentation, by mobilehome  
            owners, has been an impediment to implementing the utility  
            transfer pilot program. This bill seeks to address this by  
            allowing the necessary safety upgrades to occur even without  
            proper title or paperwork.


          3)Related Legislation. 



             a)   AB 587 (Chau), pending in the Committee, creates a tax  
               abatement program for mobilehome owners who cannot transfer  
               title into their names due to delinquent taxes and fees  
               that may have been incurred by prior owners.  



             b)   AB 999 (Daly), pending in this Committee, would  
               establish due process requirements for mobilehome park  
               owners to dispose of an abandoned mobilehome without first  
               being required to pay any unpaid property taxes on the  
               mobilehome.  
          





          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081












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