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