BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 244


                                                                    Page  1





          Date of Hearing:   July 1, 2015


               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT


                                   Ed Chau, Chair


          SB  
          244 (Vidak) - As Introduced February 18, 2015


          SENATE VOTE:  37-0


          SUBJECT:  Mobilehomes: injunctions.


          SUMMARY:  Eliminates the January 1, 2016 sunset date on the  
          existing law authorizing the management of a mobilehome park to  
          enjoin violations of park rules by seeking an injunction, rather  
          than filing an unlawful detainer, thus making this authority  
          permanent.  


          EXISTING LAW:   


          1)Provides that a mobilehome tenancy shall be terminated by the  
            management for, among other reasons:


             a)   Conduct by the homeowner or resident, upon the park  
               premises, that constitutes a substantial annoyance to other  
               homeowners or residents; or


             b)   Failure of the homeowner or resident to comply with a  








                                                                     SB 244


                                                                    Page  2





               reasonable rule or regulation of the park that is part of  
               the rental agreement or any amendment thereto. 


            (Civil Code Section 798.56)


          2)Provides that, in addition to other rights to terminate the  
            tenancy of a homeowner, any person in violation of a  
            reasonable rule or regulation of a mobilehome park may be  
            enjoined from the violation as follows:


             a)   Until January 1, 2016, a petition for an order enjoining  
               a continuing or recurring violation of any reasonable rule  
               or regulation of a mobilehome park may be filed by the  
               management thereof within the limited jurisdiction of the  
               superior court of the county in which the mobilehome park  
               is located; and


             b)   After January 1, 2016, a petition for an order enjoining  
               a continuing or recurring violation of any reasonable rule  
               or regulation of a mobilehome park may be filed by the  
               management thereof with the superior court of the county in  
               which the mobilehome park is located. 


             (Civil Code Section 798.88)


          3)Authorizes the petitioner, at the time of filing the petition,  
            to obtain a temporary restraining order, with notice, upon the  
            petitioner's affidavit showing to the satisfaction of the  
            court reasonable proof of a continuing or recurring violation  
            of a rule or regulation of the mobilehome park by the named  
            homeowner or resident and that great or irreparable harm would  
            result to the management or other homeowners or residents of  
            the park from continuance or recurrence of the violation  








                                                                     SB 244


                                                                    Page  3





            (Civil Code Section 798.88).  
          4)Requires the temporary restraining order to be personally  
            served upon the respondent homeowner or resident with the  
            petition for injunction and the notice of hearing.  Further  
            provides that the restraining order shall remain in effect for  
            a period not to exceed 15 days, except as modified or limited  
            by the court (Civil Code Section 798.88).  


          5)Requires a hearing to be held within 15 days of filing the  
            petition for an injunction, and provides that the court shall  
            issue an injunction prohibiting the violation, not to exceed  
            three years in duration, if the court finds the existence of a  
            continuing or recurring violation of a reasonable rule or  
            regulation of the mobilehome park by clear and convincing  
            evidence (Civil Code Section 798.88).


          6)Authorizes the management, not more than three months prior to  
            expiration of the injunction, to petition for a new injunction  
            where there has been recurring or continuous violation of the  
            injunction, or there is a threat of future violation of the  
            mobilehome park's rules upon termination of the injunction  
            (Civil Code Section 798.88).


          FISCAL EFFECT:  None


          COMMENTS:  


           Background:   AB 2272 (Wagner) Ch. 99, Stats. 2012, authorizes,  
          until January 1, 2016, the management of mobilehome parks to  
          file petitions for orders to enjoin violations of reasonable  
          rules or regulations of mobilehome parks within the limited  
          jurisdiction of the superior court. When AB 2272 was heard by  
          this Committee in 2012, the Committee analysis noted that the  
          author decided to include a sunset provision that will permit  








                                                                     SB 244


                                                                    Page  4





          the Legislature to revisit the issue and ensure that asking  
          judges in limited civil cases to issue injunctive relief does  
          not create unanticipated problems.


          Since AB 2272 became law on January 1, 2013, this Committee has  
          not received any information to suggest that there have been any  
          unintended consequences.  The Committee received a letter from  
          Terry Dowdall, an attorney in Orange County, in which he  
          recounts several instances where mobilehome park owners were  
          able to obtain injunctions against residents to enjoin  
          violations instead of seeking evictions.  For example, Dowdall  
          points to examples involving mobilehome maintenance issues as  
          well as pet violations.  


          These and other examples provided to the Committee, and the lack  
          of any countervailing evidence, suggest that AB 2272 appears to  
          be working as intended by the Legislature. 


           Purpose of this bill:   According to the author, "Mobilehome  
          residents are entitled to quiet enjoyment of their property and  
          park owners are obligated to preserve that quiet enjoyment.   
          Prior to the enactment of AB 2272, park owners had few options  
          available to deal with residents that were not following the  
          park rules and engaging in disruptive behavior.  If the  
          disruptive behavior became such a problem, park owners were only  
          able to utilize the eviction process, which was burdensome to  
          park owners, the evicted resident, and the entire mobilehome  
          park community.  The injunction order provided by AB 2272 will  
          sunset on January 1, 2016.  Without new legislation, mobilehome  
          park owners will be unable to utilize injunctions to enforce the  
          rules of the park."


           Limited vs. Unlimited Civil Actions:   Prior to their unification  
          in 1998, California had both county superior courts and county  
          municipal courts.  Among other distinctions, a municipal court  








                                                                     SB 244


                                                                    Page  5





          had jurisdiction over cases where the amount in controversy was  
          $25,000 or less, while a superior court had jurisdiction over  
          cases where the amount was above $25,000.  In 1998, the  
          California Constitution was amended to permit unification of the  
          municipal and superior courts into a single superior court  
          system.  Although the municipal courts ceased to exist, civil  
          cases that formerly would have been within the jurisdiction of  
          the municipal courts were then classified as "limited" civil  
          cases, while matters formerly within the jurisdiction of the  
          superior courts were classified as "unlimited" civil actions.   
          The "amount in controversy" distinction, however, remains the  
          same.


          The classification of a case as either a limited or an unlimited  
          action has implications that go beyond the amount of money the  
          court may award.  Generally speaking, a plaintiff in a limited  
          civil action may not obtain a permanent injunction and both  
          parties have more limited discovery rights than litigants in  
          unlimited cases.  


          Prior to the enactment of AB 2272 in 2012, then-existing law  
          required petitions to enjoin continuing or recurring violations  
          of the rules or regulations of a mobilehome park to be filed as  
          "unlimited" civil cases.  This bill would extend indefinitely  
          the current authorization in law for mobilehome park management  
          to file these petitions for temporary restraining orders within  
          the "limited" jurisdiction of the superior court.


           Injunctions vs. evictions:   Without extending the authority  
          granted by AB 2272, the author notes, the law will revert to its  
          previous version in which it is cheaper and sometimes easier for  
          management to evict a resident who refuses to comply with park  
          rules and regulations than to seek an injunction ordering the  
          resident to cease the violation.










                                                                     SB 244


                                                                    Page  6





          Due to court filing fees, there are financial incentives to  
          evict rather than enjoin if an injunction can only be obtained  
          by filing an unlimited civil case.  Of course, there are other  
          factors that influence management's decision to choose between  
          enjoining and evicting a tenant, including the nature of the  
          violation.  For example, a violation can only be enjoined if it  
          is continuing or recurring, whereas the violation may constitute  
          a violation of the rental agreement and the resident must have  
          failed to respond when given a 30-day notice to correct the  
          violation to justify eviction.  By removing the sunset date and  
          extending authority for injunctions in limited civil cases, this  
          bill would create a small financial incentive for management to  
          enjoin rather than evict in many cases (($225 fee vs. $240 fee).  
           Evictions may leave the resident without affordable housing,  
          whereas an injunction could resolve the issue without forcing  
          the resident to vacate his or her home.


           Related legislation:


           AB 2272 (Wagner) Ch. 99, Stats. 2012: Authorizes, until January  
          1, 2016, the management of mobilehome parks to file petitions  
          for orders to enjoin violations of reasonable rules or  
          regulations of mobilehome parks within the limited jurisdiction  
          of the superior court.


          SB 459 (Lockyer) Ch. 270, Stats. 1991: Authorized the management  
          of mobilehome parks to obtain injunctions for three years  
          against continuing or recurring violations of the reasonable  
          rules and regulations of the park.  The bill entitled the  
          management to an injunction upon showing such a violation by  
          clear and convincing evidence, and authorized the court to grant  
          a temporary order restraining the violation for up to 15 days  
          pending a hearing on the injunction.


           Double-referral:   This bill was double-referred to the Assembly  








                                                                     SB 244


                                                                    Page  7





          Judiciary Committee, where it passed 10-0 on June 16, 2015.  


           REGISTERED SUPPORT / OPPOSITION:




          Support


          Western Manufactured Housing Communities Association (Sponsor)


          Educational Community for Homeowners (ECHO)




          Opposition


          None on file




          Analysis Prepared by:Rebecca Rabovsky / H. & C.D. / (916)  
          319-2085