BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 1106           Hearing Date:    4/12/2016
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          |Author:   |Leyva                                                 |
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          |Version:  |2/17/2016                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Sarah Carvill                                         |
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          SUBJECT:  Mobilehome parks


            DIGEST:  This bill authorizes the Department of Housing and  
          Community Development (HCD) to issue citations to mobilehome  
          park owners and residents who do not correct health and safety  
          violations.

          ANALYSIS:
          
          Existing law:

           Directs the Department of Housing and Community Development  
            (HCD) to regulate mobilehome parks to protect the health,  
            safety, and general welfare of all mobilehome park residents.   
            HCD has adopted statewide regulations to this end, covering  
            both park owners and park residents.  Local agencies have the  
            option of assuming enforcement authority within their  
            jurisdictions through agreement with HCD.  One of the duties  
            of enforcement agencies is performing health and safety  
            inspections of mobilehome parks.

           Further stipulates that when a mobilehome park owner or  
            resident is found to be out of compliance with  
            mobilehome-related Health and Safety Code provisions or HCD  
            regulations, the enforcement agency must issue a notice of  
            violation to the park owner or resident.  If a violation by a  
            resident has not been corrected after 60 days, the enforcement  
            agency must notify the park owner.  If a violation by a park  
            owner has not been corrected after 60 days, the owner must  







          SB 1106 (Leyva)                                    Page 2 of ?
          
          
            post the notice of violation conspicuously in the park.  If  
            the enforcement agency determines that a violation constitutes  
            an imminent threat to health and safety, the violation must be  
            corrected within a reasonable time as determined by the  
            enforcement agency.

           Allows an enforcement agency to revoke or suspend a mobilehome  
            park's operating permit if the holder violates either the  
            conditions of the permit or existing law related to mobilehome  
            parks.

          Existing law establishes that willful violation of the portions  
          of the Health and Safety Code or HCD regulations related to  
          mobilehome parks is a misdemeanor, punishable by a $400 fine or  
          30 days in prison.  Any person who willfully violates these  
          provisions and regulations is also liable for a civil penalty of  
          $500 for each day of violation.

          This bill:

          1)Gives HCD and local enforcement agencies the authority to  
            issue citations to mobilehome park owners or residents who  
            fail to correct violations for at least 30 days after the  
            expiration of a notice of violation.

          2)Sets the amount of the penalty associated with the citation  
            to:

             a)   $100 per violation in cases where the violation presents  
               an unreasonable risk to life, health, or safety;
             b)   $250 for each subsequent violation of the same provision  
               within one year of the first violation;
             c)   $200 per violation when the violation represents an  
               imminent hazard requiring immediate correction due to the  
               risk to life, health, and safety; and
             d)   $500 for each subsequent violation of the same provision  
               representing an immediate hazard and within one year of the  
               first violation.

          1)Requires that payment be made to the enforcement agency within  
            45 days, regardless of whether the violation is corrected. 

          2)Gives a park owner or resident who receives a citation 30 days  
            to petition the enforcement agency to dismiss or modify the  
            citation, and requires the enforcement agency to hold an  








          SB 1106 (Leyva)                                    Page 3 of ?
          
          
            informal hearing when it receives petitions showing good  
            cause.

          3)Allows park owners and residents who have challenged a  
            citation in an informal hearing before a local enforcement  
            agency and received a final order to petition the outcome to  
            HCD.

          COMMENTS:

          1)Purpose.  HCD currently has the authority to issue notices of  
            violation to mobilehome park owners and residents who are out  
            of compliance with health and safety code.  According to the  
            author, however, many park owners and residents do not make  
            the necessary repairs, despite repeated notices and follow-up  
            inspections, resulting in unsafe conditions and parks that are  
            community blights.  Under current law, noncompliance with an  
            order to repair a serious health and safety defect can only be  
            enforced by expensive civil or criminal court proceedings by  
            local or state public prosecutors, which the author contends  
            "makes enforcement of serious violations virtually impossible,  
            given other prosecutorial priorities."  The purpose of this  
            bill is to provide HCD with the authority to issue citations  
            for health and safety violations.


          2)Background regulation of mobilehomes and mobilehome parks.   
            Mobilehomes are unique among housing forms in that they can  
            move between jurisdictions.  Historically, some local  
            governments have tried to discourage mobilehome parks within  
            their jurisdictions through burdensome regulations.  These are  
            some of the reasons that, under the state Mobilehome Parks  
            Act, authority to regulate California's approximately 4,500  
            mobilehome parks and 400,000 mobilehome lots resides at the  
            state level with HCD.  However, local agencies are allowed to  
            assume the authority to enforce statewide rules from HCD.   
            Currently, 63 cities and counties in California are acting as  
            local enforcement agencies under the act.  The agency  
            conducting inspections and issuing notices to mobilehome park  
            owners and residents may therefore be either HCD or a local  
            government agency, depending on the jurisdiction. 


          3)Common violations. Violations of health and safety  
            requirements can be issued to both park operators and  








          SB 1106 (Leyva)                                    Page 4 of ?
          
          
            individual mobilehome residents, and range from relatively  
            benign maintenance failures to serious hazards.  It is  
            important to note, however, that some of the most common  
            violations fall into the latter category.  For example, at the  
            park level, "exposed live electrical parts" was the most  
            frequently cited violation in 2014 and the third most  
            frequently cited violation in 2015.  Among residents, the most  
            common violations in both years were "accumulation of rubbish  
            [and] combustible material" and "extension cord used in lieu  
            of permanent wiring."

          4)Inadequacy of current remedies.  Under existing law, an  
            enforcement agency has several tools for addressing violations  
            at mobilehome parks. However, some of these tools are  
            difficult to use, and the consequences associated with other  
            measures tend to be either immaterial or severe.  Because  
            notices of violation carry no penalty, a recipient has no  
            incentive to address the violation.  Suspending a park's  
            operating permit prevents park owners from collecting rent.   
            While this provides a strong incentive to correct violations,  
            it also deprives park owners from the income that would in  
            many cases be necessary to do so.  Additionally, suspending a  
            permit takes at least six months.  Revoking park operating  
            permits outright is an even longer process, and would displace  
            residents who often have low incomes and may have difficulty  
            finding other housing.  Finally, the author notes that health  
            and safety violations at mobilehome parks are a low priority  
            for the court system, so district attorneys rarely bring  
            misdemeanor charges or pursue civil penalties against  
            violators.  Supporters of this bill argue that in the absence  
            of appropriate tools for addressing violations, unsafe  
            conditions may persist at mobilehome parks for months or even  
            years.  Enforcement data from HCD's Mobilehome Park  
            Maintenance and Inspection Task Force support this claim.  Of  
            the nearly 15,000 violations noticed to park owners and  
            residents in 2015, half had been corrected as of January 2016.

          5)Amount of the fine.  This bill will impose costs on mobilehome  
            park owners and residents. These costs may be burdensome to  
            low-income individuals.  The bill specifies the amounts of the  
            penalties that HCD is authorized to impose.  They range from  
            $100 to $500 and vary based on the seriousness of the  
            violation and the number of times the recipient has received a  
            notice for the same violation in the same year.  To receive a  
            penalty at the high end of the scale, a park owner or resident  








          SB 1106 (Leyva)                                    Page 5 of ?
          
          
            would have to fail to correct a violation for 30 days after  
            the expiration of the notice, and then commit the same  
            violation again within one year and again fail to correct the  
            second violation for 30 days after the expiration of the  
            notice.
            
          6)Double-referral. This bill has also been referred to the  
            Senate Judiciary Committee.

          FISCAL EFFECT:  Appropriation:  Yes    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          April 6, 2016.)
          
            SUPPORT:  

          City of Montclair
          The Educational Community for Homeowners 

          OPPOSITION:

          None received


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