Amended in Assembly August 17, 2015

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 BillNo. 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 prospectivebegin delete homeownerend deletebegin insert homeowner,end insert 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 wouldbegin delete authorize the establishment ofend deletebegin insert allow a park to establishend insert reasonable rulesbegin insert or regulationsend insert 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; would authorize management to require the use of a step-in L-frame sign; 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:

P2    1

SECTION 1.  

Section 798.70 of the Civil Code is amended to
2read:

3

798.70.  

(a) A homeowner, an heir, joint tenant, or personal
4representative of the estate who gains ownership of a mobilehome
5in the mobilehome park through the death of the owner of the
6mobilehome who was a homeowner at the time of his or her death,
7or the agent of any such person, may advertise the sale or exchange
8of his or her mobilehome, or, if not prohibited by the terms of an
9agreement with the management, may advertise the rental of his
10or her mobilehome, by displaying a sign in the window of the
11mobilehome, or by a sign posted on the side of the mobilehome
12facing the street, or by a sign in front of the mobilehome facing
13the street, stating that the mobilehome is for sale or exchange or,
14if not prohibited, for rent by the owner of the mobilehome or his
15or her agent. Any such person also may display a sign conforming
16to these requirements indicating that the mobilehome is on display
17for an “open house,” unless the park rules prohibit the display of
18an open house sign. The sign shall state the name, address, and
P3    1telephone number of the owner of the mobilehome or his or her
2agent and the sign face shall not exceed 24 inches in width and 36
3inches in height. Signs posted in front of a mobilehome pursuant
4to this section may be of an H-frame or A-frame design with the
5sign face perpendicular to, but not extending into, the street.
6Homeowners may attach to the sign or their mobilehome tubes or
7holders for leaflets which provide information on the mobilehome
8for sale, exchange, or rent.

9(b) This section shall remain in effect only until July 1, 2016,
10and as of that date is repealed.

11

SEC. 2.  

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

12

798.70.  

(a) A homeowner, an heir, joint tenant, or personal
13representative of the estate who gains ownership of a mobilehome
14in the mobilehome park through the death of the owner of the
15mobilehome who was a homeowner at the time of his or her death,
16or the agent of any such person, may advertise the sale or exchange
17of his or her mobilehome, or, if not prohibited by the terms of an
18agreement with the management, may advertise the rental of his
19or her mobilehome, by displaying one sign in the window of the
20mobilehome, or by one sign posted on the side of the mobilehome
21facing the street, or by one sign in front of the mobilehome facing
22the street, stating that the mobilehome is for sale or exchange or,
23if not prohibited, for rent by the owner of the mobilehome or his
24or her agent. Any such person also may display one sign
25conforming to these requirements indicating that the mobilehome
26is on display for an “openbegin delete house.”end deletebegin insert house,” if allowed by the park.end insert
27 The parkbegin insert may allow open houses andend insert may establishbegin delete by rule or
28regulation reasonable rulesend delete
begin insert reasonable rules or regulationsend insert
29 governing how an open house may be conducted, including rules
30regardingbegin delete hoursend deletebegin insert the number of houses allowed to be open at one
31time, hours,end insert
and parking. The sign shall state the name, address,
32and telephone number of the owner of the mobilehome or his or
33her agent and the sign face shall not exceed 24 inches in width and
3436 inches in height. Signs posted in front of a mobilehome pursuant
35to this section may be of an H-frame, A-frame, L-frame, or
36generally accepted yard-arm type design with the sign face
37perpendicular to, but not extending into, the street. Management
38may require the use of a step-in L-frame sign. Homeowners may
39attach to the sign or their mobilehome tubes or holders for leaflets
P4    1that provide information on the mobilehome for sale, exchange,
2or rent.

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

4

SEC. 3.  

Section 798.71 of the Civil Code is amended to read:

5

798.71.  

(a) (1) The management may not show or list for sale
6a manufactured home or mobilehome without first obtaining the
7owner’s written authorization. The authorization shall specify the
8terms and conditions regarding the showing or listing.

9(2) Management may require that a homeowner advise
10management in writing that his or her manufactured home or
11mobilehome is for sale. If management requires that a homeowner
12advise management in writing that his or her manufactured home
13or mobilehome is for sale, failure to comply with this requirement
14does not invalidate a transfer.

15(b) The management shall prohibit neither the listing nor the
16sale of a manufactured home or mobilehome within the park by
17the homeowner, an heir, joint tenant, or personal representative of
18the estate who gains ownership of a manufactured home or
19mobilehome in the mobilehome park through the death of the
20owner of the manufactured home or mobilehome who was a
21homeowner at the time of his or her death, or the agent of any such
22person other than the management.

23(c) The management shall not require the selling homeowner,
24or an heir, joint tenant, or personal representative of the estate who
25gains ownership of a manufactured home or mobilehome in the
26mobilehome park through the death of the owner of the
27manufactured home or mobilehome who was a homeowner at the
28time of his or her death, to authorize the management or any other
29specified broker, dealer, or person to act as the agent in the sale
30of a manufactured home or mobilehome as a condition of resale
31of the home in the park or of management’s approval of the buyer
32or prospective homeowner for residency in the park.

33(d) The management shall not require a homeowner, who is
34replacing a mobilehome or manufactured home on a space in the
35park, in which he or she resides, to use a specific broker, dealer,
36or other person as an agent in the purchase of or installation of the
37replacement home.

38(e) Nothing in this section shall be construed as affecting the
39provisions of the Health and Safety Code governing the licensing
40of manufactured home or mobilehome salespersons or dealers.

P5    1(f) This section shall remain in effect only until July 1, 2016,
2and as of that date is repealed.

3

SEC. 4.  

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

4

798.71.  

(a) (1) The management may not show or list for sale
5a manufactured home or mobilehome without first obtaining the
6owner’s written authorization. The authorization shall specify the
7terms and conditions regarding the showing or listing.

8(2) Management may require that a homeowner advise
9management in writing that his or her manufactured home or
10mobilehome is for sale. If management requires that a homeowner
11advise management in writing that his or her manufactured home
12or mobilehome is for sale, failure to comply with this requirement
13does not invalidate a transfer.

14(b) The management shall prohibit neither the listing nor the
15sale of a manufactured home or mobilehome within the park by
16the homeowner, an heir, joint tenant, or personal representative of
17the estate who gains ownership of a manufactured home or
18mobilehome in the mobilehome park through the death of the
19owner of the manufactured home or mobilehome who was a
20homeowner at the time of his or her death, or the agent of any such
21person other than the management. For purposes of this section,
22“listing” includes advertising the address of the home to the general
23public.

24(c) The management shall not require the selling homeowner,
25or an heir, joint tenant, or personal representative of the estate who
26gains ownership of a manufactured home or mobilehome in the
27mobilehome park through the death of the owner of the
28manufactured home or mobilehome who was a homeowner at the
29time of his or her death, to authorize the management or any other
30specified broker, dealer, or person to act as the agent in the sale
31of a manufactured home or mobilehome as a condition of resale
32of the home in the park or of management’s approval of the buyer
33or prospective homeowner for residency in the park.

34(d) The management shall not require a homeowner, who is
35replacing a mobilehome or manufactured home on a space in the
36park, in which he or she resides, to use a specific broker, dealer,
37or other person as an agent in the purchase of or installation of the
38replacement home.

P6    1(e) Nothing in this section shall be construed as affecting the
2provisions of the Health and Safety Code governing the licensing
3of manufactured home or mobilehome salespersons or dealers.

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

5

SEC. 5.  

Section 798.74 of the Civil Code is amended to read:

6

798.74.  

(a) The management may require the right of prior
7approval of a purchaser of a mobilehome that will remain in the
8park and that the selling homeowner or his or her agent give notice
9of the sale to the management before the close of the sale. Approval
10cannot be withheld if the purchaser has the financial ability to pay
11the rent and charges of the park unless the management reasonably
12determines that, based on the purchaser’s prior tenancies, he or
13she will not comply with the rules and regulations of the park. In
14determining whether the purchaser has the financial ability to pay
15the rent and charges of the park, the management shall not require
16the purchaser to submit copies of any personal income tax returns
17 in order to obtain approval for residency in the park. However,
18management may require the purchaser to document the amount
19and source of his or her gross monthly income or means of financial
20support.

21Upon request of any prospective homeowner who proposes to
22purchase a mobilehome that will remain in the park, management
23shall inform that person of the information management will
24require in order to determine if the person will be acceptable as a
25homeowner in the park.

26Within 15 business days of receiving all of the information
27requested from the prospective homeowner, the management shall
28notify the seller and the prospective homeowner, in writing, of
29either acceptance or rejection of the application, and the reason if
30rejected. During this 15-day period the prospective homeowner
31shall comply with the management’s request, if any, for a personal
32interview. If the approval of a prospective homeowner is withheld
33for any reason other than those stated in this article, the
34management or owner may be held liable for all damages
35proximately resulting therefrom.

36(b) If the management collects a fee or charge from a prospective
37purchaser of a mobilehome in order to obtain a financial report or
38credit rating, the full amount of the fee or charge shall be credited
39 toward payment of the first month’s rent for that mobilehome
40purchaser. If, for whatever reason, the prospective purchaser is
P7    1rejected by the management, the management shall refund to the
2prospective purchaser the full amount of that fee or charge within
330 days from the date of rejection. If the prospective purchaser is
4approved by the management, but, for whatever reason, the
5prospective purchaser elects not to purchase the mobilehome, the
6management may retain the fee, or a portion thereof, to defray its
7administrative costs under this section.

8(c) This section shall remain in effect only until July 1, 2016,
9and as of that date is repealed.

10

SEC. 6.  

Section 798.74 is added to the Civil Code, to read:

11

798.74.  

(a) The management may require the right of prior
12approval of a purchaser of a mobilehome that will remain in the
13park and that the selling homeowner or his or her agent give notice
14of the sale to the management before the close of the sale. Approval
15cannot be withheld if the purchaser has the financial ability to pay
16the rent and charges of the park unless the management reasonably
17determines that, based on the purchaser’s prior tenancies, he or
18she will not comply with the rules and regulations of the park. In
19determining whether the purchaser has the financial ability to pay
20the rent and charges of the park, the management shall not require
21the purchaser to submit copies of any personal income tax returns
22in order to obtain approval for residency in the park. However,
23management may require the purchaser to document the amount
24and source of his or her gross monthly income or means of financial
25support.

26Upon written request of any selling homeowner or prospective
27homeowner who proposes to purchase a mobilehome that will
28remain in the park, management shall inform that person, in
29writing, of the information management will require and the
30standards that will be utilized in determining if the person will be
31acceptable as a homeowner in the park.

32Within 15 business days of receiving all of the information
33requested from the prospective homeowner, the management shall
34notify the seller and the prospective homeowner, in writing, of
35either acceptance or rejection of the application, and the reason if
36rejected. During this 15-day period the prospective homeowner
37shall comply with the management’s request, if any, for a personal
38interview. If the approval of a prospective homeowner is withheld
39for any reason other than either of the following, the management
P8    1or owner may be held liable for all damages proximately resulting
2therefrom:

3(1) Reasons stated in this article.

4(2) Reasons based upon fraud, deceit, or concealment of material
5facts by the prospective purchaser.

6(b) If the management collects a fee or charge from a prospective
7purchaser of a mobilehome in order to obtain a financial report or
8credit rating, the full amount of the fee or charge shall be credited
9toward payment of the first month’s rent for that mobilehome
10purchaser. If, for whatever reason, the prospective purchaser is
11rejected by the management, the management shall refund to the
12prospective purchaser the full amount of that fee or charge within
1330 days from the date of rejection. If the prospective purchaser is
14approved by the management, but, for whatever reason, the
15prospective purchaser elects not to purchase the mobilehome, the
16management may retain the fee, or a portion thereof, to defray its
17administrative costs under this section.

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



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