BILL ANALYSIS                                                                                                                                                                                                    Ó





                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                             2015-2016  Regular Session


          AB 999 (Daly)
          Version: June 24, 2015
          Hearing Date: July 7, 2015
          Fiscal: Yes
          Urgency: No
          TH   


                                        SUBJECT
                                           
                                Mobilehomes: Disposal

                                      DESCRIPTION  

          This bill would amend the Mobilehome Residency Law to, among  
          other things, authorize the management of a mobilehome park to  
          enforce a warehouse lien and to designate a mobilehome for  
          disposal without requiring the management or other person  
          enforcing the lien to pay past or current vehicle license fees  
          or to obtain a tax clearance certificate.  This bill would also  
          authorize the management of a mobilehome park to dispose of an  
          abandoned mobilehome and its contents without requiring the  
          management to pay past or current vehicle license fees or to  
          obtain a tax clearance certificate.  This bill would require the  
          management of a mobilehome park to notify the county tax  
          collector in the county in which the mobilehome park is located  
          that management will either apply to have the mobilehome  
          designated for disposal after a warehouse lien sale or dispose  
          of an abandoned mobilehome and its contents.

                                      BACKGROUND  

          Enacted in 1978, the Mobilehome Residency Law (MRL) governs the  
          relationship between mobilehome park owners or managers and the  
          residents of the more than 4,500 mobilehome parks and  
          manufactured housing communities in California.  In most of  
          these parks, residents own their home but lease the land on  
          which their home is installed.  Although they have historically  
          been called "mobilehomes," it is often very difficult to  
          actually move a mobilehome once it has been installed in a  








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          mobilehome park.

          Just as with other types of residential communities, mobilehome  
          parks experience blight when owners and residents abandon their  
          mobilehomes, especially when the abandoned homes are in a state  
          of disrepair.  The MRL contains two sets of procedures that  
          authorize the management of mobilehome parks to remove  
          mobilehomes under specified circumstances.  The first set  
          involves mobilehomes occupied by residents who have had their  
          tenancies terminated, such as for the non-payment of rent.   
          Under this set of procedures, if the mobilehome of the evicted  
          tenant is not timely removed or otherwise disposed of, the  
          management of the park can secure a warehouse lien against the  
          mobilehome for unpaid obligations and proceed to sell the  
          mobilehome and its contents to satisfy the lien.  The second set  
          of procedures involves disposing of "abandoned" mobilehomes.   
          When a resident abandons their mobilehome, the MRL authorizes  
          park management to petition for a judicial declaration of  
          abandonment, which, if granted, permits the management to sell  
          the home and its contents, and offset its bid on the home by the  
          amount owed by the former resident.

          This bill would modify both sets of procedures for removing  
          mobilehomes from a mobilehome park.  Under the first set  
          involving removal of mobilehomes occupied by evicted tenants,  
          this bill would specify that the management may "dispose" of a  
          home instead of sell it when the mobilehome at issue is no  
          longer habitable.  Since it has no resale value, this bill would  
          provide that the disposal and destruction of an uninhabitable  
          mobilehome would relieve the management of an obligation to pay  
          outstanding taxes and vehicle license fees when enforcing a  
          warehouse lien and obtaining title to remove the home.  Under  
          the second set of procedures involving disposition of abandoned  
          mobilehomes, this bill would similarly authorize park management  
          to dispose of a home instead of sell it when it is no longer  
          habitable.  The management would be relieved of the obligation  
          to pay outstanding taxes and vehicle license fees when disposing  
          of the abandoned mobilehome pursuant to a judicial declaration  
          of abandonment, provided certain conditions are satisfied.

          This bill was heard by the Senate Transportation and Housing  
          Committee on June 23, 2015, and passed out on a vote of 8-0.

                                CHANGES TO EXISTING LAW
           







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           1.Existing law  , the Mobilehome Residency Law, governs the  
            relationship between park owners or managers and the residents  
            and homeowners in mobilehome parks and manufactured housing  
            communities.  (Civ. Code Sec. 798 et seq.)

             Existing law  authorizes park managers to terminate the tenancy  
            of a homeowner or resident of a mobilehome park under  
            specified circumstances, including the nonpayment of rent and  
            utility charges.  (Civ. Code Sec. 798.56.)

             Existing law  requires, within 60 days after receipt of a  
            notice of termination of tenancy, the legal owner of a  
            mobilehome, and each junior lienholder, if any, to notify the  
            management in writing of:
                 its offer to sell the obligation secured by the  
               mobilehome to the management for the amount specified in  
               its written offer;
                 its intent to foreclose on its security interest in the  
               mobilehome; or
                 its request that the management pursue the termination  
               of tenancy against the homeowner.  (Civ. Code Sec.  
               798.56a(a).)

             Existing law  provides that if neither the legal owner nor a  
            junior lienholder notifies the management of its decision  
            pursuant to the above provision within the period allowed, or  
            performs as agreed within 30 days, or if a registered owner of  
            a mobilehome that is not encumbered by a lien held by a legal  
            owner or a junior lienholder fails to comply with a notice of  
            termination and is either legally evicted or vacates the  
            premises, the management may either remove the mobilehome from  
            the premises and place it in storage or store it on its site.   
            (Civ. Code Sec. 798.56a(e).)

             Existing law  grants the management, when a mobilehome is  
            removed from the premises and placed in storage or stored on  
            its site, a warehouse lien against the mobilehome for the  
            costs of dismantling and moving, if appropriate, as well as  
            storage, that is superior to all other liens, except a lien in  
            favor of the State of California for the nonpayment of  
            registration fees, renewal fees, license fees, and other fees  
            and penalties that are due on a mobilehome, manufactured home,  
            commercial coach, truck camper, or floating home.  (Civ. Code  
            Sec. 798.56a(e); Health & Saf. Code Sec. 18116.1.)








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             Existing law  states that the management may enforce a  
            warehouse lien either after the date of judgment in an  
            unlawful detainer action or after the date the mobilehome is  
            physically vacated by the resident, whichever occurs earlier.   
            Existing law specifies that upon completion of a sale to  
            enforce the warehouse lien, the management shall provide the  
            purchaser with evidence of the sale, as specified by the  
            Department of Housing and Community Development, that shall be  
            used to register title to the mobilehome to the purchaser,  
            whether or not there existed a legal owner or junior  
            lienholder on this title to the mobilehome.  (Civ. Code Sec.  
            798.56a(e).)

             Existing law  directs the county tax collector to issue a tax  
            clearance certificate or a conditional tax clearance  
            certificate when the tax collector finds that no local  
            property tax is due or is likely to become due, or that any  
            applicable local property taxes have been paid or are to be  
            paid in a manner not requiring the withholding of registration  
            or the transfer of registration.  Existing law specifies that  
            a tax clearance certificate shall be used to permit  
            registration of used manufactured homes.  (Rev. & Tax. Code  
            Sec. 5832.)

             This bill  would require, in order to dispose of a mobilehome  
            after a warehouse lien sale, the management to file a notice  
            of disposal with the Department of Housing and Community  
            Development no less than 10 days after the date of sale to  
            enforce the lien against the mobilehome, and thereafter would  
            authorize the management to dispose of the mobilehome, as  
            specified.

             This bill  would state that if the management of a mobilehome  
            park acquires a mobilehome after enforcing the warehouse lien  
            and files a notice of disposal, the management or any other  
            person enforcing the warehouse lien shall not be required to  
            pay past or current vehicle license fees or obtain a tax  
            clearance certificate, provided that management notifies the  
            county tax collector in the county in which the mobilehome is  
            located of management's intent to apply to have the mobilehome  
            designated for disposal after a warehouse lien sale.

             This bill  would require the management to submit to the  
            Department of Housing and Community Development the following  
            information to complete the disposal process within 30 days of  







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            the date of the disposal of the mobilehome:
                 photographs identifying and demonstrating that the  
               mobilehome was uninhabitable by the removal or destruction  
               of all appliances and fixtures such as ovens, stoves,  
               bathroom fixtures, and heating or cooling appliances prior  
               to its being moved;
                 a statement of facts as to the condition of the  
               mobilehome when moved, the date it was moved, and the  
               anticipated site of further dismantling or disposal; and
                 the name, address, and license number of the person or  
               entity removing the mobilehome from the mobilehome park.

             This bill  would define "dispose" or "disposal" to mean the  
            removal and destruction of an abandoned mobilehome from a  
            mobilehome park, thus making it unusable for any purpose and  
            not subject to, or eligible for, use in the future as a  
            mobilehome.

           1.Existing law  specifies a process for the disposition of an  
            abandoned mobilehome, which is a mobilehome that:
                 is located in a mobilehome park on a site for which no  
               rent has been paid to the management for the preceding 60  
               days;
                 is unoccupied; and
                 is one that a reasonable person would believe to be  
               abandoned.  (Civ. Code Sec. 798.61(a).)
             
            Existing law  provides that after determining a mobilehome in a  
            mobilehome park is abandoned, the management shall post a  
            notice of belief of abandonment on the mobilehome for not less  
            than 30 days, and shall mail copies of the notice to the  
            homeowner at the last known address and to any known  
            registered owner, if different from the homeowner, and to any  
            known holder of a security interest in the abandoned  
            mobilehome.  (Civ. Code Sec. 798.61(b).)

             Existing law  states that thirty or more days following posting  
            of the notice, the management may file a petition in the  
            superior court for a judicial declaration of abandonment of  
            the mobilehome.  Existing law requires copies of the petition  
            to be served upon the homeowner, any known registered owner,  
            and any known person having a lien or security interest of  
            record in the mobilehome by posting a copy on the mobilehome  
            and mailing copies to those persons at their last known  
            addresses.  (Civ. Code Sec. 798.61(c).)







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            Existing law  specifies that if, at the hearing, the petitioner  
            shows by a preponderance of the evidence that the criteria for  
            abandonment have been satisfied and no party establishes an  
            interest in the mobilehome, the court shall enter a judgment  
            of abandonment, determine the amount of charges to which the  
            petitioner is entitled, and award attorney's fees and costs to  
            the petitioner.  Existing law specifies that a default may be  
            entered by the court clerk upon request of the petitioner, and  
            a default judgment shall be thereupon entered if no responsive  
            pleading is filed within 15 days after service of the  
            petition.  (Civ. Code Sec. 798.61(d).)

             Existing law  provides that within 10 days following a judgment  
            of abandonment, the management shall enter the abandoned  
            mobilehome and complete an inventory of the contents and  
            submit the inventory to the court, and during this period the  
            management shall post on the mobilehome and mail notice of  
            intent to sell the abandoned mobilehome and its contents to  
            the homeowner, any known registered owner, and any known  
            person having a lien or security interest of record in the  
            mobilehome.  At any time prior to the sale of a mobilehome,  
            any person having a right to possession of the mobilehome may  
            recover and remove it from the premises upon payment of all  
            rent or other charges due, including reasonable costs of  
            storage and other costs awarded by the court.  (Civ. Code Sec.  
            798.61(e).)

             Existing law  states that not less than 10 days following the  
            notice of sale, the management may conduct a public sale of  
            the abandoned mobilehome and its contents.  The management may  
            bid at the sale and shall have the right to offset its bids to  
            the extent of the total amount due it.  The proceeds of the  
            sale shall be retained by the management, but any unclaimed  
            amount over and above the amount to which the management is  
            entitled under this section shall be deemed abandoned property  
            and shall be paid into the treasury of the county in which the  
            sale took place within 30 days of the date of the sale.    
            (Civ. Code Sec. 798.61(f).)

             Existing law  authorizes the former homeowner or any other  
            owner to claim any or all of the unclaimed amount within one  
            year from the date of payment to the county by making  
            application to the county treasurer or other designated  
            official.  (Civ. Code Sec. 798.61(f).)







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             Existing law  specifies that within 30 days of the date of the  
            sale, the management shall submit to the court an accounting  
            of the moneys received from the sale and the disposition of  
            the money and the items contained in the inventory submitted  
            to the court.  (Civ. Code Sec. 798.61(g).)

             Existing law  directs the management to provide the purchaser  
            at the sale with a copy of the judgment of abandonment and  
            evidence of the sale, as specified by the Department of  
            Housing and Community Development or the Department of Motor  
            Vehicles, which shall register title in the abandoned  
            mobilehome to the purchaser upon presentation thereof.  The  
            sale shall pass title to the purchaser free of any prior  
            interest, including any security interest or lien, except a  
            lien in favor of the State of California for the nonpayment of  
            registration fees, renewal fees, license fees, and other fees  
            and penalties that are due on a mobilehome, manufactured home,  
            commercial coach, truck camper, or floating home.  (Civ. Code  
            Sec. 798.61(h).)

             This bill  , as an alternative to sale, would authorize the  
            management to dispose of an abandoned mobilehome, which is  
            defined as removing the abandoned mobilehome from a mobilehome  
            park and destroying it, thus making it unusable for any  
            purpose and not subject to, or eligible for, use in the future  
            as a mobilehome.

             This bill  would specify that to dispose of an abandoned  
            mobilehome, the management, in its petition for a judicial  
            declaration of abandonment, shall do all of the following:
                 declare in the petition that the management will dispose  
               of the abandoned mobilehome, and therefore will not seek a  
               tax clearance certificate;
                 declare in the petition whether the management intends  
               to sell the contents of the abandoned mobilehome before its  
               disposal;
                 notify the county tax collector that management will  
               dispose of the abandoned mobilehome by sending a copy of  
               the petition; and
                 declare in the petition that management intends to file  
               a notice of disposal with the Department of Housing and  
               Community Development and to complete all disposal process  
               requirements.








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             This bill  would require, within 10 days following a judgment  
            of abandonment, the management to enter the abandoned  
            mobilehome and complete an inventory of the contents and  
            submit the inventory to the court, and during this period the  
            management would be required to post on the mobilehome and  
            mail notice of intent to dispose of the mobilehome and its  
            contents to the homeowner, any known registered owner, and any  
            known person having a lien or security interest of record in  
            the mobilehome.

             This bill  would require the management to file a notice of  
            disposal with the Department of Housing and Community  
            Development, and would specify that the management shall not  
            be required to pay past or current vehicle license fees or  
            obtain a tax clearance certificate, provided that the  
            management notifies the county tax collector in the county in  
            which the mobilehome is located of the management's intent to  
            apply to have the mobilehome designated for disposal.

             This bill  would specify that at any time prior to the disposal  
            of an abandoned mobilehome or its contents, any person having  
            a right to possession of the abandoned mobilehome may recover  
            and remove it from the premises upon payment to the management  
            of all rent or other charges due, including reasonable costs  
            of storage and other costs awarded by the court.

             This bill  would authorize the management to dispose of the  
            abandoned mobilehome, following the judgment of abandonment  
            and approval of the notice of disposal by the Department of  
            Housing and Community Development, provided the management  
            does the following:
                 submits to the court and the county tax collector in the  
               county in which the mobilehome park is located a statement  
               with supporting documentation indicating that the abandoned  
               mobilehome and its contents were disposed of; and
                 submits to the Department of Housing and Community  
               Development:
               o      photographs identifying and demonstrating that the  
                 mobilehome was uninhabitable by the removal or  
                 destruction of all appliances and fixtures such as ovens,  
                 stoves, bathroom fixtures, and heating or cooling  
                 appliances prior to its being moved;
               o      a statement of facts as to the condition of the  
                 mobilehome when moved, the date it was moved, and the  
                 anticipated site of further dismantling or disposal; and







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               o      the name, address, and license number of the person  
                 or entity removing the mobilehome from the mobilehome  
                 park.

             This bill  would require the management to submit to the court  
            and the county tax collector, within 30 days of the date of  
            the disposal of an abandoned mobilehome or the date of the  
            sale of its contents, whichever date is later, an accounting  
            of the moneys received from the sale and the disposition of  
            the money and the items contained in the inventory submitted  
            to the court and a statement that the abandoned mobilehome was  
            disposed with supporting documentation.

             This bill  would specify that the management shall not be  
            required to obtain a tax clearance certificate to dispose of  
            an abandoned mobilehome and its contents, but that any sale of  
            a mobilehome shall be subject to registration requirements and  
            the tax clearance certificate requirements.

             This bill  would eliminate the provision requiring the  
            management to submit to the court, within 30 days of the date  
            of the sale, an accounting of the moneys received from the  
            sale and the disposition of the money and the items contained  
            in an abandoned mobilehome.

             This bill  would make other technical and conforming changes.
          
                                        COMMENT
           
           1.Stated need for the bill
           
          The author writes:

            Each year manufactured homes and mobilehomes are abandoned in  
            manufactured housing communities that require management to  
            proceed with an "abandonment" or "warehouseman's lien" to  
            dispose of the property (Civil Code [Sec.] 798.61 or 798.56a).  
             Most often these homes are not worth the cost of  
            rehabilitation and must be salvaged (i.e. destroyed).   
            However, before an owner may legally complete the  
            warehouseman's lien they must pay any past due personal  
            property tax to the county tax collector, an amount which can  
            exceed the value of the home.  It is an unfunded burden to the  
            mobilehome park owner to pay the unpaid property taxes because  
            the previous mobilehome owner (i.e. resident) failed to pay  







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            what they owed.  Normally tax collectors would place a lien on  
            the property and dispose of it accordingly, but the tax  
            collectors have been reluctant to do so because the  
            mobilehomes are often worth less than what is owed and they  
            don't want to evict residents.

            By amending Civil Code Sections 798.61 and 798.56a, AB 999  
            would create a new method to expeditiously deal with abandoned  
            property that negatively impacts communities, the landlord and  
            tax collectors.  Abandoned homes are unsightly and potentially  
            hazardous, thus depreciating the value of nearby mobilehomes  
            and impacting the health of residents.  Landlords cannot rent  
            out the space occupied by an abandoned mobilehome, thus  
            decreasing operational revenue and also precluding the  
            collection of taxes.  Replacement of these abandoned tax  
            delinquent homes with newer homes will benefit landlords,  
            residents and tax collectors.

           2.Changes to Mobilehome Removal Procedures
           
          This bill would make changes to the two existing procedures in  
          the Mobilehome Residency Law (MRL) that allow mobilehome park  
          management to remove mobilehomes from a mobilehome park without  
          an owner's consent.  The first procedure involves mobilehomes  
          with tenants who have involuntarily lost their tenancy in a park  
          through such things as the nonpayment of rent.  When tenancy is  
          lost, the legal owner and lienholders of the mobilehome have 60  
          days to arrange for the disposition of the mobilehome with park  
          management.  If arrangements are not made and executed within  
                                               the required timelines, the MRL currently authorizes management  
          to either remove the mobilehome from the premises and place it  
          in storage or store it on site, and grants the management a  
          warehouse lien against the mobilehome for the costs of  
          dismantling, moving, and storing the home that is superior to  
          all other liens except those in favor of the State of California  
          for the nonpayment of mobilehome taxes and registration fees.
          Existing law allows park management to enforce its warehouse  
          lien by selling the mobilehome, which extinguishes all other  
          liens except for specified ones held by the State, and grants  
          the purchaser title to the home.  This bill would, at the  
          conclusion of the sale, authorize management to dispose of a  
          mobilehome acquired after enforcing the warehouse lien without  
          having to pay past or current vehicle license fees or obtain a  
          tax clearance certificate when the home is uninhabitable, and  
          consequently without significant resale value.  This new  







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          disposal process would require management to file a notice of  
          disposal with the Department of Housing and Community  
          Development (Department) no less than 10 days after the date of  
          sale to enforce the lien against the mobilehome, would require  
          management to notify the county tax collector of its intent to  
          have the mobilehome designated for disposal, and would require  
          management to file specific evidence with the Department proving  
          the mobilehome was destroyed within 30 days of the date  
          indicated for disposal.

          This bill would also amend the process by which abandoned  
          mobilehomes are disposed of under the MRL.  Under existing law,  
          after park management determines that a mobilehome is abandoned,  
          the management must post a notice on the home for 30 days and  
          mail copies to the homeowner at the last known address, to any  
          other registered owners, and to known holders of security  
          interests in the abandoned mobilehome.  After 30 days, the  
          management may file a petition in the superior court for a  
          judicial declaration of abandonment of the mobilehome.  If, at  
          the hearing on the petition, the petitioner shows by a  
          preponderance of the evidence that the criteria for abandonment  
          have been satisfied and no party establishes an interest in the  
          mobilehome, the court enters a judgment of abandonment,  
          determines the amount of charges to which the petitioner is  
          entitled, and authorizes the petitioner to sell the abandoned  
          mobilehome and its contents.  Park management may thereafter  
          enter the abandoned mobilehome and sell both it and its contents  
          within approximately 20 days by following specific notice  
          procedures in the MRL, and recover allowable charges such as  
          unpaid rent and utility charges.  The MRL grants title of the  
          abandoned mobilehome to the purchaser free of any prior  
          interest, including any security interest or lien, except  
          specified liens in favor of the State of California for such  
          things as the nonpayment of taxes and registration fees.

          As an alternative to sale, this bill would authorize park  
          management to receive title and dispose of an abandoned  
          mobilehome by stating in its petition for a judicial declaration  
          of abandonment that it will dispose of the abandoned mobilehome,  
          will not seek a tax clearance certificate, will notify the  
          county tax collector of the intent to dispose of the abandoned  
          mobilehome, and will file a notice of disposal with the  
          Department of Housing and Community Development (Department) and  
          completing all disposal process requirements.  Within 10 days  
          following a judgment of abandonment, this bill would require the  







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          management to enter the abandoned mobilehome, complete an  
          inventory of the contents, and submit the inventory to the  
          court.  Park management would also be required to post on the  
          mobilehome and mail a notice of intent to dispose of the  
          mobilehome and its contents to the homeowner, to any known  
          registered owner, and to any known person having a lien or  
          security interest in the mobilehome.  Thereafter, this bill  
          would require management to file a notice of disposal with the  
          Department, and after completing the disposal process, would  
          require management to submit specific evidence to the court and  
          to the county tax collector indicating that the abandoned  
          mobilehome and its contents were disposed of.  By declaring its  
          intent to complete this disposal process, and by providing  
          appropriate documentation to the court, the Department, and the  
          county tax collector upon completion of the process, this bill  
          would provide that the management shall not be required to pay  
          past or current vehicle license fees or obtain a tax clearance  
          certificate when it takes title of the abandoned mobilehome and  
          disposes of it.

          The changes to the two removal processes proposed in this bill  
          would, in essence, allow park management to obtain title to  
          abandoned or uninhabitable mobilehomes for the purpose of  
          removing and disposing of them without having to satisfy liens  
          related to unpaid taxes and registration fees, as would be  
          required if the mobilehome were sold and re-registered in the  
          name of a third party.

           3.Due Process Protections
           
          As discussed in Comment 2, the Mobilehome Residency Law (MRL)  
          authorizes mobilehome park management to remove mobilehomes from  
          a mobilehome park without an owner's consent under specific  
          circumstances.  To ensure that tenants, owners, and lienholders  
          have a meaningful opportunity to participate in and contest the  
          removal and sale of a mobilehome, existing law includes several  
          due process and procedural safeguards.  For mobilehomes with  
          tenants who have involuntarily lost their tenancy and a  
          warehouse lien has attached, Commercial Code Section 7210  
          requires the several procedures to be observed before an  
          execution sale may occur.  First, all persons with an interest  
          in the mobilehome must receive notice of the amount due, a  
          demand for payment within a specified time not less than 10 days  
          after receipt of the notification, and notice of the nature of  
          the proposed execution sale and the time and place of the sale.   







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          After the expiration of the time given in the notification, an  
          advertisement of the sale must be published once a week for two  
          weeks consecutively in a newspaper of general circulation where  
          the sale is to be held, and the sale must take place at least 15  
          days after the first publication.  Importantly, before the sale  
          can take place, any person claiming a right in the mobilehome  
          must be given an opportunity to pay the amount necessary to  
          satisfy the lien.  In sum, these procedures ensure parties with  
          an interest in the mobilehome receive notice of any proposed  
          execution sale and an opportunity to redeem the property before  
          the sale occurs.

          For abandoned mobilehomes, the MRL requires park management to  
          post a notice of belief of abandonment on the mobilehome itself  
          for at least 30 days, and mail copies of the notice to the  
          homeowner at the last known address, to any known registered  
          owner, and to any known holder of a security interest in the  
          abandoned mobilehome.  Thirty or more days after the posting and  
          mailing of those notices, the MRL authorizes park management to  
          file a petition in the superior court for a judicial declaration  
          of abandonment of the mobilehome, and requires management to  
          again post a copy on the mobilehome and mail a copy of the  
          petition to the same parties listed above.  The court then holds  
          a hearing on the petition, and if the petitioner shows by a  
          preponderance of the evidence that the criteria for abandonment  
          have been satisfied and no other party establishes an interest  
          in the mobilehome, the court enters a judgment of abandonment.   
          Of course, any party with an interest in the mobilehome may  
          appear before the judge and rebut management's claim that the  
          home is abandoned.  Provided judgment of abandonment is granted  
          and park management elects to sell the mobilehome and its  
          contents, management must again post on the mobilehome and mail  
          notice of its intent to sell the abandoned mobilehome to the  
          parties listed above, as well as provide anyone who can  
          establish a right of possession the opportunity to recover and  
          remove the home from the premises upon payment of all rent or  
          other charges due.  As with other processes for involuntarily  
          removing a mobilehome under the MRL, this procedure includes  
          multiple opportunities for interested parties to receive notice  
          of a pending action or sale and either contest claims advanced  
          by park management or pay a set amount to redeem the property.

          The changes proposed by this bill would not disturb the existing  
          due process protections in the MRL, with one exception.  An  
          earlier set of amendments inadvertently removed an oversight  







          AB 999 (Daly)
          Page 14 of ? 

          provision that allowed a court to supervise the distribution of  
          proceeds from the sale of an abandoned mobilehome to, among  
          other things, ensure that any sale proceeds not offset by other  
          claims are segregated and held for the former homeowner or any  
          other owner.  To add that provision of existing law back into  
          the bill, the author offers the following amendment:

             Author's Amendment  :

            On page 9, line 32, insert: "(3) Within 30 days of the date of  
            the sale, the management shall submit to the court an  
            accounting of the moneys received from the sale and the  
            disposition of the money and the items contained in the  
            inventory submitted to the court pursuant to subdivision (e)."

           4.Liability for Unpaid Taxes
            
           As noted in Comment 1, the author's expressed intent for this  
          bill is, in the case of abandoned or uninhabitable mobilehomes,  
          to allow park management to receive title and dispose of a  
          mobilehome without first having to pay any back taxes or unpaid  
          registration fees owed to the State of California.  While this  
          bill would relieve park managers of the responsibility of paying  
          such things as back taxes, these outstanding tax obligations  
          would not be extinguished when title is transferred to  
          management.  Revenue and Taxation Code Section 2921.5 provides  
          that when uncollected taxes, penalties, and costs due on a  
          mobilehome are transferred from the "secured roll" to the  
          "unsecured roll," as would likely occur when title transfers to  
          park management under the provisions of this bill, the amounts  
          transferred continue to be subject to delinquent penalties until  
          the amounts are paid and are collectible from the person from  
          whom the property was acquired.  Thus, personal liability for  
          unpaid mobilehome property taxes would likely remain even after  
          title to a mobilehome transfers to park management under the  
          provisions of this bill.


           Support :  California Mobilehome Parkowners Alliance

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Western Manufactured Housing Communities Association







          AB 999 (Daly)
          Page 15 of ? 


           Related Pending Legislation  :

          SB 244 (Vidak, 2015) would eliminate a January 1, 2016, sunset  
          on an existing authorization that permits the management of a  
          mobilehome park to file a petition for an order to enjoin  
          violations of a reasonable rule or regulation of the mobilehome  
          park within the limited jurisdiction of the superior court.   
          This bill is pending in the Assembly Housing and Community  
          Development Committee.

          SB 419 (McGuire, 2015) would authorize the seller of a  
          mobilehome to display a "for sale" sign of a generally accepted  
          yard-arm type design and would require the management of a  
          mobilehome park, upon request, to provide in writing the  
          information and standards management will use to review a  
          prospective homeowner to prospective homeowners or the seller.   
          This bill is pending in the Assembly Housing and Community  
          Development Committee.

          AB 587 (Chau, 2015), among other things, would require the  
          Department of Housing and Community Development to waive  
          outstanding charges and release outstanding liens 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.  This bill would also require a county tax  
          collector to issue a tax liability certificate to a person who  
          is not currently the registered owner of a manufactured home or  
          mobilehome with a conditional transfer of title when that person  
          applies for the certificate prior to January 1, 2019, and would  
          provide that such a person shall only pay that portion of the  
          taxes reasonably owed from the date of sale of the manufactured  
          home or mobilehome.  This bill is pending in the Senate  
          Transportation and Housing Committee.
           

           Prior Legislation  :

          SB 69 (Kelley, Ch. 446, Stats. 1995) authorized an owner of a  
          mobilehome park who obtains a final money judgment for unpaid  
          rent against the registered owner of a manufactured home or  
          mobilehome registered with the Department of Housing and  
          Community Development to perfect a lien against that  







          AB 999 (Daly)
          Page 16 of ? 

          manufactured home or mobilehome in accordance with specified  
          provisions.  This bill specified that such a lien would not be a  
          security interest and that it was not subject to execution.   
          This bill specified that an owner of a mobilehome park filing a  
          lien created pursuant to the bill would be treated as a junior  
          lienholder for purposes of the sale of a repossessed or  
          surrendered manufactured home or mobilehome.

          AB 743 (Nolan, Ch. 564, Stats. 1991) revised the procedures  
          required to be followed by the management of a mobilehome park  
          in obtaining a court order declaring the abandonment of a  
          mobilehome.  This bill also revised the definition of an  
          "abandoned mobilehome" to mean a mobilehome located in a  
          mobilehome park on a site for which no rent has been paid to the  
          management for the preceding 60 days, which is unoccupied, and  
          which a reasonable person would believe to be abandoned.

           Prior Vote  :

          Senate Transportation and Housing Committee (Ayes 8, Noes 0)
          Assembly Floor (Ayes 74, Noes 0)
          Assembly Appropriations Committee (Ayes 17, Noes 0)
          Assembly Housing and Community Development Committee (Ayes 6,  
          Noes 0)
          Assembly Judiciary Committee (Ayes 10, Noes 0)

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