SB 434, as introduced, Allen. Manufactured housing: vehicle license fee: property taxation.
The Mobilehome Parks Act requires the Department of Housing and Community Development to establish regulations for manufactured home, mobilehome, and commercial modular foundation systems. Existing law requires the installation of a manufactured home, mobilehome, or commercial modular as a fixture or improvement to real property to comply with specified provisions, including obtaining a building permit and submission of plans as required by the department’s regulations.
The Vehicle License Fee Law exempts from imposition of the vehicle license fee mobilehomes sold and installed on a foundation system pursuant to the above-described provisions and provides that a mobilehome exempted by this provision is subject to local property taxation. Existing law also requires the Department of Housing and Community Development to transfer a manufactured home or mobilehome which is subject to the vehicle license fee to local property taxation upon a request executed by the owner, legal owner, and each junior lienholder.
This bill would require the owner of a manufactured home or mobilehome to request a transfer from the vehicle license fee to local property taxation in order for the manufactured home or mobilehome to be installed as a fixture or improvement on real property.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 18551 of the Health and Safety Code is
2amended to read:
begin insert(a)end insertbegin insert end insert The department shall establish regulations for
4manufactured home, mobilehome, and commercial modular
5foundation systems that shall be applicable throughout the state.
6When established, these regulations supersede any ordinance
7enacted by any city, county, or city and county applicable to
8manufactured home, mobilehome, and commercial modular
9foundation systems. The department may approve alternate
10foundation systems to those provided by regulation if the
11department is satisfied of equivalent performance. The department
12shall document approval of alternate systems by its stamp of
13approval on the plans and
specifications for the alternate foundation
14system. A manufactured home, mobilehome, or commercial
15modular may be installed on a foundation system as either a fixture
16or improvement to the real property, in accordance with subdivision
17begin delete (a),end deletebegin insert (b),end insert or a manufactured home or mobilehome may be installed
18on a foundation system as a chattel, in accordance with subdivision
19begin delete (b).end deletebegin insert (c).end insert
20(a)
end delete
21begin insert(b)end insert Notwithstanding any other law, prior to a manufactured
22home, mobilehome, or commercial modular being deemed a fixture
23or improvement to the real property, the installation shall comply
24with all of the following:
25(1) Prior to installation of a manufactured home, mobilehome,
26or commercial modular on a foundation system, the manufactured
27home, mobilehome, or commercial modular owner or a licensed
28contractor shall obtain a building permit from the appropriate
29enforcement agency. To obtain a permit, the owner or contractor
30shall provide the following:
31(A) Written evidence acceptable to the enforcement agency that
32the manufactured home, mobilehome, or commercial modular
33owner owns, holds title to, or is purchasing the real property where
34the mobilehome is to be installed on a foundation system. A lease
35held by the manufactured home, mobilehome, or commercial
P3 1modular
owner, that is transferable, for the exclusive use of the
2real property where the manufactured home, mobilehome, or
3commercial modular is to be installed, shall be deemed to comply
4with this paragraph if the lease is for a term of 35 years or more,
5or if less than 35 years, for a term mutually agreed upon by the
6lessor and lessee, and the term of the lease is not revocable at the
7discretion of the lessor except for cause, as described in
8subdivisions 2 to 5, inclusive, of Section 1161 of the Code of Civil
9Procedure.
10(B) Written evidence acceptable to the enforcement agency that
11the registered owner owns the manufactured home, mobilehome,
12or commercial modular free of any liens or encumbrances or, in
13the event that the legal owner is not the registered owner, or liens
14and encumbrances exist on the manufactured home, mobilehome,
15or commercial modular, written evidence provided by the legal
16owner and any lienors or encumbrancers that the legal
owner,
17lienor, or encumbrancer consents to the attachment of the
18manufactured home, mobilehome, or commercial modular upon
19the discharge of any personal lien, that may be conditioned upon
20the satisfaction by the registered owner of the obligation secured
21by the lien.
22(C) Plans and specifications required by department regulations
23or a department-approved alternate for the manufactured home,
24mobilehome, or commercial modular foundation system.
25(D) The manufactured home, mobilehome, or commercial
26modular manufacturer’s installation instructions, or plans and
27specifications signed by a California-licensed architect or engineer
28covering the installation of an individual manufactured home,
29mobilehome, or commercial modular in the absence of the
30manufactured home, mobilehome, or commercial modular
31manufacturer’s instructions.
32(E) Building permit fees established by ordinance or regulation
33of the appropriate enforcement agency.
34(F) A fee payable to the department in the amount of eleven
35dollars ($11) for each transportable section of the manufactured
36home, mobilehome, or commercial modular, that shall be
37transmitted to the department at the time the certificate of
38occupancy is issued with a copy of the building permit and any
39other information concerning the manufactured home, mobilehome,
P4 1or commercial modular that the department may prescribe on forms
2provided by the department.
3(2) (A) Within five business days of the issuance of the
4certificate of occupancy for the manufactured home, mobilehome,
5or commercial modular by the appropriate enforcement agency,
6the enforcement agency shall record a document naming the owner
7of the real property, describing the real
property with certainty,
8and stating that a manufactured home, mobilehome, or commercial
9modular has been affixed to that real property by installation on a
10foundation system pursuant to this subdivision. The document
11shall be recorded with the county recorder of the county where the
12real property, upon which the manufactured home, mobilehome,
13or commercial modular that has been installed, is situated.
14(B) When recorded, the document referred to in subparagraph
15(A) shall be indexed by the county recorder to the named owner
16and shall be deemed to give constructive notice as to its contents
17to all persons thereafter dealing with the real property.
18(C) Fees received by the department pursuant to subparagraph
19(F) of paragraph (1) shall be deposited in the
20Mobilehome-Manufactured Home Revolving Fund established
21under subdivision (a) of Section 18016.5.
22(3) The certification of title and other indicia of registration
23shall be surrendered to the department pursuant to regulations
24adopted by the department providing for the cancellation of
25registration of a manufactured home, mobilehome, or commercial
26modular that is permanently attached to the ground on a foundation
27system pursuant tobegin delete subdivision (a).end deletebegin insert this subdivision.end insert For the
28purposes of this subdivision, permanent affixation to a foundation
29system shall be deemed to have occurred on the day a certificate
30of occupancy is issued to the manufactured home, mobilehome,
31or commercial modular owner and the document referred to in
32subparagraph (A) of paragraph (2) is recorded. Cancellation shall
33be effective as of that date and the department shall enter the
34
cancellation on its records upon receipt of a copy of the certificate
35of occupancy. This subdivision shall not be construed to affect the
36application of existing laws, or the department’s regulations or
37procedures with regard to the cancellation of registration, except
38as to the requirement therefor and the effective date thereof.
39(4) Once installed on a foundation system in compliance with
40this subdivision, a manufactured home, mobilehome, or commercial
P5 1modular shall be deemed a fixture and a real property improvement
2to the real property to which it is affixed. Physical removal of the
3manufactured home, mobilehome, or commercial modular shall
4thereafter be prohibited without the consent of all persons or
5entities who, at the time of removal, have title to any estate or
6interest in the real property to which the manufactured home,
7mobilehome, or commercial modular is affixed.
8(5) For the purposes of this subdivision:
9(A) “Physical removal” shall include, without limitation, the
10unattaching of the manufactured home, mobilehome, or commercial
11modular from the foundation system, except for temporary
12purposes of repair or improvement thereto.
13(B) Consent to removal shall not be required from the owners
14of rights-of-way or easements or the owners of subsurface rights
15or interests in or to minerals, including, but not limited to, oil, gas,
16or other hydrocarbon substances.
17(6) At least 30 days prior to a legal removal of the manufactured
18home, mobilehome, or commercial modular from the foundation
19system and transportation away from the real property to which it
20was formerly affixed, the manufactured home, mobilehome, or
21commercial modular owner shall notify the department and the
22
county assessor of the intended removal of the manufactured home,
23mobilehome, or commercial modular. The department shall require
24written evidence that the necessary consents have been obtained
25pursuant to this section and shall require application for either a
26transportation permit or manufactured home, mobilehome, or
27commercial modular registration, as the department may decide
28is appropriate to the circumstances. Immediately upon removal,
29as defined in this section, the manufactured home, mobilehome,
30or commercial modular shall be deemed to have become personal
31property and subject to all laws governing the same as applicable
32to a manufactured home, mobilehome, or commercial modular.
33(7) When an owner of a manufactured home or a mobilehome
34subject to the vehicle license fee submits building plans to, and
35requests building permits from, the department pursuant
to
36paragraph (1) to rebuild the manufactured home or mobilehome
37on a foundation system, leaving only the chassis of the original
38home in place, the manufactured home or mobilehome owner shall
39also request a transfer from the vehicle license fee to local property
40taxation as specified in subdivision (c) of Section 18119.
P6 1(b)
end delete
2begin insert(c)end insert The installation of a manufactured home or a mobilehome
3on a foundation system as chattel shall be in accordance with
4Section 18613 and shall be deemed to meet or exceed the
5requirements of Section 18613.4. This subdivision shall not be
6construed to affect the application of sales and use or property
7taxes. No provisions of
this subdivision are intended, nor shall
8they be construed, to affect the ownership interest of any owner
9of a manufactured home or mobilehome.
10(c)
end delete
11begin insert(d)end insert Once installed on a foundation system, a manufactured home,
12mobilehome, or commercial modular shall be subject to
13state-enforced health and safety standards for manufactured homes,
14mobilehomes, or commercial modulars enforced pursuant to
15Section 18020.
16(d)
end delete
17begin insert(e)end insert No local agency shall require that any manufactured home,
18mobilehome, or commercial modular currently on private property
19be placed on a foundation system.
20(e)
end delete
21begin insert(f)end insert No local agency shall require that any manufactured home
22or mobilehome located in a mobilehome park be placed on a
23foundation system.
24(f)
end delete
25begin insert(g)end insert No local agency
shall require, as a condition for the approval
26of the conversion of a rental mobilehome park to a resident-owned
27park, including, but not limited to, a subdivision, cooperative, or
28condominium for mobilehomes, that any manufactured home or
29mobilehome located there be placed on a foundation system. This
30subdivision shall only apply to the conversion of a rental
31mobilehome park that has been operated as a rental mobilehome
32park for a minimum period of five years.
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