Amended in Senate April 6, 2015

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 amended, 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 begin insert the end insert 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 begin insert the end insert management, upon request, to provide a prospective homeowner with the information begin insert the end insert 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 begin delete a end delete begin insert one end insert sign of begin insert an L-frame or end insert a generally accepted yard-arm type design and require begin insert the end insert management, upon request, to provide the information and standards begin insert the end insert management will use to review a prospective homeowner to the prospective homeowner or seller in writing. The bill would also begin insert make technical changes and end insert 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 seller or the agent of a seller 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 begin delete a end delete begin insert one end insert sign in the
window of the mobilehome, or by begin delete a end delete begin insert one end insert sign posted on the side
of the mobilehome facing the street, or by begin delete a end delete begin insert one end insert 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 begin delete a end delete begin insert one end insert sign conforming to these requirements indicating
that the mobilehome is on display for an “open house.” 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. begin delete Signs end delete begin insert A sign end insert
posted in front of a mobilehome pursuant to this section may be
of an H-frame begin delete or end delete begin insert , end insert A-frame begin insert , L-frame, end insert or generally accepted
yard-arm type design with the sign face perpendicular to, but not
extending into, the street. Sellers may attach to the sign or their
mobilehome tubes or holders for leaflets begin delete which end delete begin insert that end insert 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 seller, or the agent of the seller other than the management.
For purposes of this section, “listing” includes advertising the
address of the home to the general public.

(c) The management shall not require the seller 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 seller or seller’s 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 any seller or begin delete any end delete prospective homeowner who
proposes to purchase a mobilehome that will remain in the park,
management shall inform that person, in writing, of the information
management will require and the standards that will be utilized in
determining 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.