BILL NUMBER: SB 2095 CHAPTERED
BILL TEXT
CHAPTER 542
FILED WITH SECRETARY OF STATE SEPTEMBER 17, 1998
APPROVED BY GOVERNOR SEPTEMBER 16, 1998
PASSED THE SENATE AUGUST 19, 1998
PASSED THE ASSEMBLY AUGUST 11, 1998
AMENDED IN ASSEMBLY JUNE 17, 1998
AMENDED IN SENATE MAY 12, 1998
AMENDED IN SENATE APRIL 21, 1998
AMENDED IN SENATE APRIL 13, 1998
INTRODUCED BY Senator Polanco
FEBRUARY 20, 1998
An act to amend Sections 798.55 and 798.56a of the Civil Code, and
to amend Section 18035.2 of the Health and Safety Code, relating to
mobilehome parks.
LEGISLATIVE COUNSEL'S DIGEST
SB 2095, Polanco. Mobilehome parks.
(1) Existing law prohibits management from terminating or refusing
to renew a tenancy, except for specified reasons and upon the giving
of a prescribed written notice.
This bill would require the resident of a mobilehome that remains
in the mobilehome park after service of this notice to continue to be
subject to the Mobilehome Residency Law and the rules and
regulations of the park. It would also provide that no lawful act by
the management to enforce the law or rules and regulations may be
deemed or construed to waive or otherwise affect the notice to remove
the mobilehome.
(2) Under existing law, legal owners and holders of junior liens
against mobilehomes in mobilehome parks may sell the mobilehome
within the park to a third party and keep the mobilehome on the site
within the park until it is sold only if specified requirements are
met. Existing law provides that, if these requirements are not met
and the management of the park either removes the mobilehome from the
premises and places it in storage or stores it on its site, the
management shall have a warehouseman's lien against the mobilehome
for specified costs.
This bill would similarly provide that if a registered owner of a
mobilehome that is not encumbered by a lien, either held by a legal
owner or a junior lienholder, fails to comply with a notice of
termination and is either legally evicted or vacates the premises,
the management may either remove the mobilehome from the premises and
place it in storage, or store it on its site, in which case the
management has a warehouseman's lien. It also would provide that a
warehouseman's lien established pursuant to these provisions may be
enforced after the date of judgment in an unlawful detainer action or
after the date the mobilehome is vacated, whichever occurs earlier.
This bill would also require, upon completion of any sale to
enforce this lien, the management to provide the purchaser at the
sale with evidence of the sale, as specified by the Department of
Housing and Community Development. This bill would require the
department, upon request of the purchaser of the mobilehome, to
register title to the mobilehome to the purchaser.
(3) Existing law provides that a manufactured home or mobilehome
may be installed on a foundation system as either a fixture or
improvement to the real property or installed on a foundation system
as a chattel. Existing law requires a dealer of a new or used
manufactured home to execute each sale in writing with the buyer's
signature, provide a statement of fact, as specified, and establish
an escrow account with an escrow agent. Existing law requires the
escrow instructions for a sale by a dealer of a new manufactured home
or mobilehome to provide specified information. Existing law
requires the escrow instructions for a sale by a dealer of a new or
used manufactured home or mobilehome that is subject to a specified
inspection and for which the issuance of a document certifying or
approving occupancy is conditioned upon a specified payment to
provide that the payment be made to the appropriate school district
upon the close of escrow.
This bill would limit the applicability of these sale requirements
to a manufactured home or mobilehome installed on a foundation
system as a fixture or improvement to the real property.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 798.55 of the Civil Code is amended to read:
798.55. (a) The Legislature finds and declares that, because of
the high cost of moving mobilehomes, the potential for damage
resulting therefrom, the requirements relating to the installation of
mobilehomes, and the cost of landscaping or lot preparation, it is
necessary that the owners of mobilehomes occupied within mobilehome
parks be provided with the unique protection from actual or
constructive eviction afforded by the provisions of this chapter.
(b) The management shall not terminate or refuse to renew a
tenancy, except for a reason specified in this article and upon the
giving of written notice to the homeowner in the manner prescribed by
Section 1162 of the Code of Civil Procedure, to remove the
mobilehome from the park within a period of not less than 60 days,
which period shall be specified in the notice. A copy of this notice
shall be sent to the legal owner, as defined in Section 18005.8 of
the Health and Safety Code, each junior lienholder, as defined in
Section 18005.3 of the Health and Safety Code, and the registered
owner of the mobilehome, if other than the homeowner, by United
States mail within 10 days after notice to the homeowner. The copy
may be sent by regular mail or by certified or registered mail with
return receipt requested, at the option of the management. If the
homeowner has not paid the rent due within three days after notice to
the homeowner, and if the first notice was not sent by certified or
registered mail with return receipt requested, a copy of the notice
shall again be sent to the legal owner, each junior lienholder, and
the registered owner, if other than the homeowner, by certified or
registered mail with return receipt requested within 10 days after
notice to the homeowner. Copies of the notice shall be addressed to
the legal owner, each junior lienholder, and the registered owner at
their addresses, as set forth in the registration card specified in
Section 18091.5 of the Health and Safety Code.
(c) The resident of a mobilehome that remains in the mobilehome
park after service of the notice to remove the mobilehome shall
continue to be subject to this chapter and the rules and regulations
of the park, including rules regarding maintenance of the space.
(d) No lawful act by the management to enforce this chapter or the
rules and regulations of the park may be deemed or construed to
waive or otherwise affect the notice to remove the mobilehome.
SEC. 2. Section 798.56a of the Civil Code is amended to read:
798.56a. (a) Within 60 days after receipt of, or no later than 65
days after the mailing of, the notice of termination of tenancy
pursuant to any reason provided in Section 798.56, the legal owner,
if any, and each junior lienholder, if any, shall notify the
management in writing of at least one of the following:
(1) Its offer to sell the obligation secured by the mobilehome to
the management for the amount specified in its written offer. In
that event, the management shall have 15 days following receipt of
the offer to accept or reject the offer in writing. If the offer is
rejected, the person or entity that made the offer shall have 10 days
in which to exercise one of the other options contained in this
section and shall notify management in writing of its choice.
(2) Its intention to foreclose on its security interest in the
mobilehome.
(3) Its request that the management pursue the termination of
tenancy against the homeowner and its offer to reimburse management
for the reasonable attorney's fees and court costs incurred by the
management in that action. If this request and offer are made, the
legal owner, if any, or junior lienholder, if any, shall reimburse
the management the amount of reasonable attorney's fees and court
costs, as agreed upon by the management and the legal owner or junior
lienholder, incurred by the management in an action to terminate the
homeowner's tenancy, on or before the earlier of (A) the 60th
calendar day following receipt of written notice from the management
of the aggregate amount of those reasonable attorney's fees and costs
or (B) the date the mobilehome is resold.
(b) A legal owner, if any, or junior lienholder, if any, may sell
the mobilehome within the park to a third party and keep the
mobilehome on the site within the mobilehome park until it is resold
only if all of the following requirements are met:
(1) The legal owner, if any, or junior lienholder, if any,
notifies management in writing of the intention to exercise either
option described in paragraph (2) or (3) of subdivision (a) within 60
days following receipt of, or no later than 65 days after the
mailing of, the notice of termination of tenancy and satisfies all of
the responsibilities and liabilities of the homeowner owing to the
management for the 90 days preceding the mailing of the notice of
termination of tenancy and then continues to satisfy these
responsibilities and liabilities as they accrue from the date of the
mailing of that notice until the date the mobilehome is resold.
(2) Within 60 days following receipt of, or no later than 65 days
after the mailing of, the notice of termination of tenancy, the legal
owner or junior lienholder commences all repairs and necessary
corrective actions so that the mobilehome complies with park rules
and regulations in existence at the time the notice of termination of
tenancy was given as well as the health and safety standards
specified in Sections 18550, 18552, and 18605 of the Health and
Safety Code, and completes these repairs and corrective actions
within 90 calendar days of that notice, or before the date that the
mobilehome is sold, whichever is earlier.
(3) The legal owner, if any, or junior lienholder, if any,
complies with the requirements of Article 7 (commencing with Section
798.70) as it relates to the transfer of the mobilehome to a third
party.
(c) For purposes of subdivision (b), the "homeowner's
responsibilities and liabilities" means all rents, utilities,
reasonable maintenance charges of the mobilehome and its premises,
and reasonable maintenance of the mobilehome and its premises
pursuant to existing park rules and regulations.
(d) If the homeowner files for bankruptcy, the periods set forth
in this section are tolled until the mobilehome is released from
bankruptcy.
(e) Notwithstanding any other provision of law, including, but not
limited to, Section 18099.5 of the Health and Safety Code, if
neither the legal owner nor a junior lienholder notifies the
management of its decision pursuant to subdivision (a) within the
period allowed, or performs as agreed within 30 days, or if a
registered owner of a mobilehome, that is not encumbered by a lien
held by a legal owner or a junior lienholder, fails to comply with a
notice of termination and is either legally evicted or vacates the
premises, the management may either remove the mobilehome from the
premises and place it in storage or store it on its site. In this
case, notwithstanding any other provision of law, the management
shall have a warehouseman's lien in accordance with Section 7209 of
the Commercial Code against the mobilehome for the costs of
dismantling and moving, if appropriate, as well as storage, that
shall be superior to all other liens, except the lien provided for in
Section 18116.1 of the Health and Safety Code, and may enforce the
lien pursuant to Section 7210 of the Commercial Code either after the
date of judgment in an unlawful detainer action or after the date
the mobilehome is physically vacated by the resident, whichever
occurs earlier. Upon completion of any sale to enforce the
warehouseman's lien in accordance with Section 7210 of the Commercial
Code, the management shall provide the purchaser at the sale with
evidence of the sale, as shall be specified by the Department of
Housing and Community Development, that shall, upon proper request by
the purchaser of the mobilehome, register title to the mobilehome to
this purchaser, whether or not there existed a legal owner or junior
lienholder on this title to the mobilehome.
(f) All written notices required by this section shall be sent to
the other party by certified or registered mail with return receipt
requested.
(g) Satisfaction, pursuant to this section, of the homeowner's
accrued or accruing responsibilities and liabilities shall not cure
the default of the homeowner.
SEC. 3. Section 18035.2 of the Health and Safety Code is amended
to read:
18035.2. (a) For every sale by a dealer of a new or used
manufactured home or mobilehome to be installed on a foundation
system pursuant to subdivision (a) of Section 18551, the dealer shall
execute in writing and obtain the buyer's signature on a purchase
order, conditional sale contract, or other document evidencing the
purchase, and provide a statement of fact complying with subdivision
(b) of Section 18035.1, contemporaneous with or prior to the receipt
of any cash or cash equivalent from the buyer and shall establish an
escrow account with an escrow agent. The escrow shall not be subject
to Section 18035.
(b) For every sale by a dealer of a new manufactured home or
mobilehome installed or to be installed on a foundation system
pursuant to subdivision (a) of Section 18551, the escrow instructions
shall provide all of the following:
(1) That the original manufacturer's certificate of origin be
placed in escrow.
(2) That, in the alternative:
(A) The lien of any inventory creditor on the manufactured home or
mobilehome shall be satisfied by payment from the escrow account.
(B) That the inventory creditor shall consent in writing to other
than full payment.
For purposes of this paragraph, "inventory creditor" includes any
person who is identified as a creditor on the manufacturer's
certificate of origin or any person who places the original
certificate of origin in escrow and claims in writing to the escrow
agent to have a purchase money security interest in the manufactured
home or mobilehome as contemplated by Section 9107 of the Commercial
Code.
(3) That the escrow agent shall obtain from the manufacturer a
true and correct facsimile of the copy of the certificate of origin
retained by the manufacturer pursuant to Section 18093.
(c) For every sale by a dealer of a new or used manufactured home
or mobilehome that is subject to inspection pursuant to subdivision
(a) of Section 18551, and for which it is stated, on the face of the
document certifying or approving occupancy, that the issuance of the
document is conditioned upon the payment of a fee, charge,
dedication, or other requirement levied pursuant to Section 17620 of
the Education Code, the escrow instructions shall provide that the
payment of that fee, charge, dedication, or other requirement be made
to the appropriate school district upon the close of escrow.