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 ----------------------------------------------------------------- |Author: |Leyva | |----------+------------------------------------------------------| |Version: |2/17/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Sarah Carvill | |: | | ----------------------------------------------------------------- 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 -- END --