Amended in Assembly April 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2351

Introduced by Assembly Member Roger Hernández

February 18, 2016

An act to begin delete add Section 798.17.5 to end delete begin insert repeal Section 798.17 of end insert the Civil Code, relating to mobilehome parks.

LEGISLATIVE COUNSEL’S DIGEST

AB 2351, as amended, Roger Hernández. Mobilehome parks: rent control.

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks, and exempts a rental agreement that satisfies specified begin delete criteria end delete begin insert criteria, including that it be in excess of 12-months’ duration, end insert from any ordinance, rule, regulation, or initiative measure adopted by a local governmental entity that establishes a maximum amount a landlord may charge a tenant for rent.

This bill would begin delete authorize the legislative body of a local governmental entity to enact a rent control ordinance for a mobilehome park within its jurisdiction when the vacancy rate in the park meets or exceeds an unspecified percentage over a certain period or where the rent charged to mobilehome park residents exceeds an unspecified percent of the average rents for mobilehome park residents within an unspecified radius of the park. end delete begin insert repeal these provisions. The bill would make a statement of legislative findings. end insert

Vote: majority. Appropriation: no. Fiscal committee: no. 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 The Legislature finds and declares all of the
following: end insert

begin insert

(a) California is experiencing a housing crisis throughout the
state.

end insert begin insert

(b) The preservation of affordable housing options and the need
to create more housing opportunities requires increased funding
and policy changes.

end insert begin insert

(c) Mobilehome parks are community-based, affordable housing
options important to many residents in our state.

end insert begin insert

(d) Local governments need tools to ensure mobilehome parks
remain available as affordable hosing options.

end insert begin insert

(e) Current policy barriers inhibit local control on mobilehome
parks.

end insert begin insert

(f) It is necessary to provide local governments with tools to
preserve affordable mobilehome parks in their communities.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 798.17 of the end insert begin insert Civil Code end insert begin insert is repealed. end insert

begin delete

798.17.  

(a) (1) Rental agreements meeting the criteria of
subdivision (b) shall be exempt from any ordinance, rule,
regulation, or initiative measure adopted by any local governmental
entity which establishes a maximum amount that a landlord may
charge a tenant for rent. The terms of a rental agreement meeting
the criteria of subdivision (b) shall prevail over conflicting
provisions of an ordinance, rule, regulation, or initiative measure
limiting or restricting rents in mobilehome parks, only during the
term of the rental agreement or one or more uninterrupted,
continuous extensions thereof. If the rental agreement is not
extended and no new rental agreement in excess of 12 months’
duration is entered into, then the last rental rate charged for the
space under the previous rental agreement shall be the base rent
for purposes of applicable provisions of law concerning rent
regulation, if any.

(2) In the first sentence of the first paragraph of a rental
agreement entered into on or after January 1, 1993, pursuant to
this section, there shall be set forth a provision in at least 12-point
boldface type if the rental agreement is printed, or in capital letters
if the rental agreement is typed, giving notice to the homeowner
that the rental agreement will be exempt from any ordinance, rule,
regulation, or initiative measure adopted by any local governmental
entity which establishes a maximum amount that a landlord may
charge a tenant for rent.

(b) Rental agreements subject to this section shall meet all of
the following criteria:

(1) The rental agreement shall be in excess of 12 months’
duration.

(2) The rental agreement shall be entered into between the
management and a homeowner for the personal and actual
residence of the homeowner.

(3) The homeowner shall have at least 30 days from the date
the rental agreement is first offered to the homeowner to accept
or reject the rental agreement.

(4) The homeowner who signs a rental agreement pursuant to
this section may void the rental agreement by notifying
management in writing within 72 hours of returning the signed
rental agreement to management. This paragraph shall only apply
if management provides the homeowner a copy of the signed rental
agreement at the time the homeowner returns the signed rental
agreement.

(5) The homeowner who signs a rental agreement pursuant to
this section may void the agreement within 72 hours of receiving
an executed copy of the rental agreement pursuant to Section
798.16. This paragraph shall only apply if management does not
provide the homeowner with a copy of the signed rental agreement
at the time the homeowner returns the signed rental agreement.

(c) If, pursuant to paragraph (3) or (4) of subdivision (b), the
homeowner rejects the offered rental agreement or rescinds a signed
rental agreement, the homeowner shall be entitled to instead accept,
pursuant to Section 798.18, a rental agreement for a term of 12
months or less from the date the offered rental agreement was to
have begun. In the event the homeowner elects to have a rental
agreement for a term of 12 months or less, including a
month-to-month rental agreement, the rental agreement shall
contain the same rental charges, terms, and conditions as the rental
agreement offered pursuant to subdivision (b), during the first 12
months, except for options, if any, contained in the offered rental
agreement to extend or renew the rental agreement.

(d) Nothing in subdivision (c) shall be construed to prohibit the
management from offering gifts of value, other than rental rate
reductions, to homeowners who execute a rental agreement
pursuant to this section.

(e) With respect to any space in a mobilehome park that is
exempt under subdivision (a) from any ordinance, rule, regulation,
or initiative measure adopted by any local governmental entity
that establishes a maximum amount that a landlord may charge a
homeowner for rent, and notwithstanding any ordinance, rule,
regulation, or initiative measure, a mobilehome park shall not be
assessed any fee or other exaction for a park space that is exempt
under subdivision (a) imposed pursuant to any ordinance, rule,
regulation, or initiative measure. No other fee or other exaction
shall be imposed for a park space that is exempt under subdivision
(a) for the purpose of defraying the cost of administration thereof.

(f) At the time the rental agreement is first offered to the
homeowner, the management shall provide written notice to the
homeowner of the homeowner’s right (1) to have at least 30 days
to inspect the rental agreement, and (2) to void the rental agreement
by notifying management in writing within 72 hours of receipt of
an executed copy of the rental agreement. The failure of the
management to provide the written notice shall make the rental
agreement voidable at the homeowner’s option upon the
homeowner’s discovery of the failure. The receipt of any written
notice provided pursuant to this subdivision shall be acknowledged
in writing by the homeowner.

(g) No rental agreement subject to subdivision (a) that is first
entered into on or after January 1, 1993, shall have a provision
which authorizes automatic extension or renewal of, or
automatically extends or renews, the rental agreement for a period
beyond the initial stated term at the sole option of either the
management or the homeowner.

(h) This section does not apply to or supersede other provisions
of this part or other state law.

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begin delete

SECTION 1.  

Section 798.17.5 is added to the Civil Code, to
read:

798.17.5.  

Notwithstanding Section 798.17, with respect to
mobilehome park rents within its territorial jurisdiction, the
legislative body of a local governmental entity may enact a rent
control ordinance for a mobilehome park where the vacancy rate
exceeds ____ percent for a period of ____ months or where the
rent charged to mobilehome park residents exceeds ____ percent
of the average rents for mobilehome park residents within a ____
mile radius of that park.

end delete