Amended in Assembly July 6, 2015

Amended in Senate May 19, 2015

Amended in Senate April 27, 2015

Amended in Senate April 6, 2015

Senate Bill No. 419

Introduced by Senator McGuire

February 25, 2015

An act to amend, repeal, and add Sections 798.70, 798.71, and 798.74 of 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. That law, among other things, sets forth certain rights and requirements for the management and selling homeowners in connection with the listing, sale, or exchange of a mobilehome, and, if not prohibited by management, the rental of a mobilehome, including, but not limited to, authorizing the display of signs advertising the sale, exchange, or rental, and authorizing the display of an “open house” sign unless prohibited by park rules; requiring the signs to contain specified information and be of an H-frame or A-frame design; and requiring the management, upon request of a prospective homeowner to provide the information the management will use to determine if the person will be acceptable as a homeowner in the park. Under that law, the management or owner may be held liable for damages proximately resulting from the withholding of approval of a prospective homeowner for any reason not stated in that law.

On and after July 1, 2016, this bill would no longer condition the display of an open house sign on the lack of prohibition in park rules, but would authorize the establishment of reasonable rules governing the conduct of open houses, as specified; would additionally authorize a seller to display one sign of an L-frame or a generally accepted yard-arm type design; begin insert would authorize management to require the use of a step-in L-frame sign; end insert and would define a “listing.” The bill would require the management, upon written request, to provide in writing the information and standards the management will use to review a prospective homeowner to the prospective homeowner or seller and make technical changes. The bill would additionally condition the liability for damages resulting from withholding approval of a prospective homeowner for reasons based upon fraud, deceit, or concealment of material facts by the prospective purchaser.

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) A 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,
or the agent of any such person, 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 house,” unless the park rules prohibit the display of
an open house sign. 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 design with the
sign face perpendicular to, but not extending into, the street.
Homeowners may attach to the sign or their mobilehome tubes or
holders for leaflets which provide information on the mobilehome
for sale, exchange, or rent.

(b) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed.

SEC. 2.  

Section 798.70 is added to the Civil Code, to read:

798.70.  

(a) A 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,
or the agent of any such person, 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 one sign in the window of the
mobilehome, or by one sign posted on the side of the mobilehome
facing the street, or by one 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 one sign
conforming to these requirements indicating that the mobilehome
is on display for an “open house.” The park may establish by rule
or regulation reasonable rules governing how an open house may
be conducted, including rules regarding hours and parking. 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, A-frame, L-frame, or generally accepted yard-arm
type design with the sign face perpendicular to, but not extending
into, the street. begin insert Management may require the use of a step-in
L-frame sign. end insert Homeowners may attach to the sign or their
mobilehome tubes or holders for leaflets that provide information
on the mobilehome for sale, exchange, or rent.

(b) This section shall become operative on July 1, 2016.

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 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, or the agent of any such
person other than the management.

(c) The management shall not require the 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, 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.

(f) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed.

SEC. 4.  

Section 798.71 is added to the Civil Code, to read:

798.71.  

(a)  begin delete (1)   end delete begin insert (1) end insert begin insert   end insert 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 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, or the agent of any such
person 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 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, 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.

(f) This section shall become operative on July 1, 2016.

SEC. 5.  

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 selling homeowner or his or her 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 prospective homeowner who proposes to
purchase a mobilehome that will remain in the park, management
shall inform that person of the information management will
require in order to determine 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.

(c) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed.

SEC. 6.  

Section 798.74 is added to the Civil Code, 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 selling homeowner or his or her 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 written request of any selling homeowner or 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 either of the following, the management
or owner may be held liable for all damages proximately resulting
therefrom:

(1) Reasons stated in this article.

(2) Reasons based upon fraud, deceit, or concealment of material
facts by the prospective purchaser.

(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.

(c) This section shall become operative on July 1, 2016.