Senate Bill No. 419

Introduced by Senator McGuire

February 25, 2015

An act to amend Sections 798.70, 798.71, and 798.74 of, and to add Section 798.70.5 to, the Civil Code, relating to mobilehomes.

LEGISLATIVE COUNSEL’S DIGEST

SB 419, as introduced, McGuire. Mobilehomes: homeowners: sale.

The Mobilehome Residency Law governs tenancies in mobilehome parks. The law, among other things, sets forth certain rights and requirements for management and selling homeowners in connection with the sale of a mobilehome, including, but not limited to, authorizing sellers to display signs advertising the sale unless prohibited by park rules, requiring the signs to contain specified information and be of an H-frame or A-frame design, and requiring management, upon request, to provide a prospective homeowner with the information management will use to determine if the person will be acceptable as a homeowner in the park.

This bill would additionally authorize a seller to display a sign of a generally accepted yard-arm type design and require management, upon request, to provide the information and standards management will use to review a prospective homeowner to the prospective homeowner or seller in writing. The bill would also revise references to a homeowner or other person selling a mobilehome to instead refer to a “seller,” as defined.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 798.70 of the Civil Code is amended to
read:

798.70.  

A begin delete homeowner, an heir, joint tenant, or personal
representative of the estate who gains ownership of a mobilehome
in the mobilehome park through the death of the owner of the
mobilehome who was a homeowner at the time of his or her death, end delete
begin insert seller end insert or the agent of begin delete any such person, end delete begin insert a seller end insert may advertise the
sale or exchange of his or her mobilehome, or, if not prohibited
by the terms of an agreement with the management, may advertise
the rental of his or her mobilehome, by displaying a sign in the
window of the mobilehome, or by a sign posted on the side of the
mobilehome facing the street, or by a sign in front of the
mobilehome facing the street, stating that the mobilehome is for
sale or exchange or, if not prohibited, for rent by the owner of the
mobilehome or his or her agent. Any such person also may display
a sign conforming to these requirements indicating that the
mobilehome is on display for an “open begin delete house,” unless the park
rules prohibit the display of an open house sign. end delete begin insert house. end insert begin insert ” end insert The sign
shall state the name, address, and telephone number of the owner
of the mobilehome or his or her agent and the sign face shall not
exceed 24 inches in width and 36 inches in height. Signs posted
in front of a mobilehome pursuant to this section may be of an
H-frame or A-frame begin insert or generally accepted yard-arm type end insert design
with the sign face perpendicular to, but not extending into, the
street. begin delete Homeowners end delete begin insert Sellers end insert may attach to the sign or their
mobilehome tubes or holders for leaflets which provide information
on the mobilehome for sale, exchange, or rent.

SEC. 2.  

Section 798.70.5 is added to the Civil Code, to read:

798.70.5.  

For purposes of this article, “seller” means a
homeowner, an heir, joint tenant, or personal representative of the
estate who gains ownership of a manufactured home or
mobilehome in the mobilehome park through the death of the
owner of the manufactured home or mobilehome who was a
homeowner at the time of his or her death.

SEC. 3.  

Section 798.71 of the Civil Code is amended to read:

798.71.  

(a) (1) The management may not show or list for sale
a manufactured home or mobilehome without first obtaining the
owner’s written authorization. The authorization shall specify the
terms and conditions regarding the showing or listing.

(2) Management may require that a homeowner advise
management in writing that his or her manufactured home or
mobilehome is for sale. If management requires that a homeowner
advise management in writing that his or her manufactured home
or mobilehome is for sale, failure to comply with this requirement
does not invalidate a transfer.

(b) The management shall prohibit neither the listing nor the
sale of a manufactured home or mobilehome within the park by
the begin delete homeowner, an heir, joint tenant, or personal representative of
the estate who gains ownership of a manufactured home or
mobilehome in the mobilehome park through the death of the
owner of the manufactured home or mobilehome who was a
homeowner at the time of his or her death, end delete begin insert seller, end insert or the agent of
begin delete any such person end delete begin insert the seller end insert other than the management. begin insert For
purposes of this section, “listing” includes advertising the address
of the home to the general public. end insert

(c) The management shall not require the begin delete selling homeowner,
or an heir, joint tenant, or personal representative of the estate who
gains ownership of a manufactured home or mobilehome in the
mobilehome park through the death of the owner of the
manufactured home or mobilehome who was a homeowner at the
time of his or her death, end delete begin insert seller end insert to authorize the management or any
other specified broker, dealer, or person to act as the agent in the
sale of a manufactured home or mobilehome as a condition of
resale of the home in the park or of management’s approval of the
buyer or prospective homeowner for residency in the park.

(d) The management shall not require a homeowner, who is
replacing a mobilehome or manufactured home on a space in the
park, in which he or she resides, to use a specific broker, dealer,
or other person as an agent in the purchase of or installation of the
replacement home.

(e) Nothing in this section shall be construed as affecting the
provisions of the Health and Safety Code governing the licensing
of manufactured home or mobilehome salespersons or dealers.

SEC. 4.  

Section 798.74 of the Civil Code is amended to read:

798.74.  

(a) The management may require the right of prior
approval of a purchaser of a mobilehome that will remain in the
park and that the begin delete selling homeowner or his or her end delete begin insert seller or seller’s end insert
agent give notice of the sale to the management before the close
of the sale. Approval cannot be withheld if the purchaser has the
financial ability to pay the rent and charges of the park unless the
management reasonably determines that, based on the purchaser’s
prior tenancies, he or she will not comply with the rules and
regulations of the park. In determining whether the purchaser has
the financial ability to pay the rent and charges of the park, the
management shall not require the purchaser to submit copies of
any personal income tax returns in order to obtain approval for
residency in the park. However, management may require the
purchaser to document the amount and source of his or her gross
monthly income or means of financial support.

Upon request of begin insert any seller or end insert any prospective homeowner who
proposes to purchase a mobilehome that will remain in the park,
management shall inform that begin delete person end delete begin insert person, in writing, end insert of the
information management will require begin insert and the standards that will
be utilized end insert in begin delete order to determine end delete begin insert determining end insert if the person will be
acceptable as a homeowner in the park.

Within 15 business days of receiving all of the information
requested from the prospective homeowner, the management shall
notify the seller and the prospective homeowner, in writing, of
either acceptance or rejection of the application, and the reason if
rejected. During this 15-day period the prospective homeowner
shall comply with the management’s request, if any, for a personal
interview. If the approval of a prospective homeowner is withheld
for any reason other than those stated in this article, the
management or owner may be held liable for all damages
proximately resulting therefrom.

(b) If the management collects a fee or charge from a prospective
purchaser of a mobilehome in order to obtain a financial report or
credit rating, the full amount of the fee or charge shall be credited
toward payment of the first month’s rent for that mobilehome
purchaser. If, for whatever reason, the prospective purchaser is
rejected by the management, the management shall refund to the
prospective purchaser the full amount of that fee or charge within
30 days from the date of rejection. If the prospective purchaser is
approved by the management, but, for whatever reason, the
prospective purchaser elects not to purchase the mobilehome, the
management may retain the fee, or a portion thereof, to defray its
administrative costs under this section.