BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 869
                                                                  Page  1

          Date of Hearing:   April 15, 2009

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                 AB 869 (Mendoza) - As Introduced:  February 26, 2009

           SUBJECT  :   Mobilehome parks:  Certified Mobilehome Park Manager

           SUMMARY  :   Creates the title of "Certified Mobilehome Park  
          Manager" and prescribes requirements for using the title.   
          Specifically,  this bill  :  

          1)Defines "park manager" for the purpose of the Mobilehome  
            Residency Law as a person who is primarily responsible for the  
            normal ongoing onsite management of a mobilehome park.

          2)Defines "certified mobilehome park manager" as a park manager  
            who has met specified requirements.

          3)Specifies that to use the title "certified mobilehome park  
            manager," a person must have, within the past two years,  
            completed a course of study that was developed and  
            administered in a manner consistent with the standards and  
            requirements set forth by the American Educational Research  
            Association's "Standards for Educational and Psychological  
            Testing."

          4)Requires that the course of study include at least 10 hours of  
            instruction in, at a minimum, the following subjects:

             a)   At least six hours of instruction in the Mobilehome  
               Residency Law;

             b)   At least three hours of instruction on leases and rental  
               agreements, unlawful detainers, ethics, the adoption and  
               enforcement of the rules and regulations of a manufactured  
               housing community, fair housing law, and other general  
               issues related to property management; and

             c)   At least one hour of instruction on conflict resolution  
               that focuses on teaching participants skills to resolve  
               complaints and disputes with homeowners and residents.

          5)Requires that the person receive a certificate of completion  
            from a manufactured housing trade organization or an  








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            accredited postsecondary educational institution that includes  
            the following information:

             a)   The name of the participant;

             b)   The subject matter;

             c)   The name of the instructor of the course;

             d)   The number of hours of instruction completed; and

             e)   The date the course was completed.

          6)Defines "manufactured housing trade organization" as a  
            not-for-profit organization that has at least 200 members that  
            own or operate a mobilehome park or reside within mobilehome  
            parks in California and that has been in existence for at  
            least five years.

          7)In cases where the mobilehome park has been issued a notice on  
            or after January 1, 2010, regarding a violation of the  
            Mobilehome Parks Act, requires the manager to become a  
            certified mobilehome park manager within 60 days.

          8)For violations that have remained uncorrected for more than  
            120 days as of January 1, 2010, requires the manager to become  
            a certified mobilehome park manager by July 1, 2010.

          9)Requires rental agreements offered to homeowners or  
            prospective homeowners in mobilehome parks to be accompanied  
            by a written notice in at least 12-point type stating whether  
            the park is managed by a certified manager.

          10)Requires that a notice stating whether the park is managed by  
            a certified manager be posted in the clubhouse, or, if there  
            is no clubhouse, in a conspicuous public place in the park  
            accessible to homeowners and residents.

           EXISTING LAW  

          1)Requires, in every mobilehome park, that a person be available  
            in person or by telephone, cellular phone, or similar means  
            who is responsible for and who shall respond in a timely  
            manner to emergencies concerning the operation and maintenance  
            of that park (Health and Safety Code 18603).








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          2)Requires, in parks of 50 or more units, that the emergency  
            contact person reside in the park and have knowledge of the  
            emergency procedures relative to utility systems and common  
            facilities under the ownership and control of the owner of the  
            park (Health and Safety Code 18603).

          3)For violations of the Mobilehome Parks Act (MPA) other than  
            imminent threats to health and safety, provides the owner or  
            operator of a mobilehome park 60 days from the postmarked date  
            or the date of personal delivery of a notice of violation to  
            eliminate the conditions constituting the alleged violation  
            (Health and Safety Code 18420).

          4)Allows the enforcement agency to extend the time for  
            correction of a violation of the MPA, other than imminent  
            threats to health and safety, for 30 days or an additional  
            reasonable period of time after the initial 60-day period if  
            after reinspection the enforcement agency determines that  
            there is a valid reason why the  violation has not been  
            corrected, including, but not limited to, weather conditions,  
            illness, availability of repair persons, or availability of  
            financial resources (Health and Safety Code 18420).

          5)Requires violations of the MPA that constitute an imminent  
            threat to health and safety to be corrected within a  
            reasonable time as determined by the enforcement agency  
            (Health and Safety Code 18420).

          6)Authorizes a person to use the title "Certified Common  
            Interest Development Manager" upon meeting specified training  
            requirements (Business and Professions Code 11502). 

          7)Requires anyone who provides or is contemplating providing the  
            services of common interest development (CID) manager to  
            disclose to the board of directors of the community  
            association whether or not her or she is certified (Business  
            and Professions Code 11504).

          8)Requires, for apartment housing of 16 or more units, that a  
            manager, janitor, housekeeper or other responsible person  
            reside upon the premises if the owner of the property does not  
            reside upon the premises (State Housing Law Title 25).

          9)Provides that for residential rental properties, an onsite  








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            manager is not required to have a license from the Department  
            of Real Estate (Business and Professions Code  
            10131-10131.1).

           FISCAL EFFECT  :   None

           COMMENTS  :   

           Background: 

           In response to a steady increase in complaints from mobilehome  
          park residents about issues with park management, in 2004 the  
          Senate Select Committee on Mobile and Manufactured Homes held a  
          hearing entitled "Mobilehome Park Management Problems." The  
          committee's staff summary of testimony from the hearing details  
          a variety of concerns raised by witnesses, including  
          "allegations that managers unreasonably interfered with  
          residents' resale of their homes, managers made arbitrary rule  
          changes or made up rules as they went along, managers enforced  
          park rules unevenly, managers did not attend to maintenance  
          problems in the park, such as sewage leaks, or back-up or  
          electrical and lighting problems, managers retaliated against  
          homeowners who reported health and safety violations to code  
          enforcement agencies, managers violated or were ignorant of  
          various provisions of the Mobilehome Residency Law (MRL), etc."

          At the 2004 hearing, the chair of the Select Committee asked  
          that those testifying make constructive suggestions to remedy  
          complaints about managers.  According to the summary of the  
          hearing, "The most frequently mentioned recommendation was that  
          the state set up a process for licensing-or at least  
          certification-of park managers that includes an education and  
          testing component, arguing that this kind of process is  
          necessary to raise the overall quality of managers over time."  

          AB 869 creates a certification process for mobilehome park  
          managers.  Managers would have to undergo 10 hours of training  
          every two years in order to use the designation "certified."   
          Training would include instruction in the MRL, leases and rental  
          agreements, fair housing law, property management, and conflict  
          resolution.  The training could be provided by trade  
          organizations meeting certain criteria, or by any accredited  
          postsecondary educational institution.

          Any park manager could voluntarily complete the training in  








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          order to use the title "certified mobilehome park manager."   
          Managers would be required to become certified in parks that  
          have code violations that have gone uncorrected for 120 days.   
          In such cases, the manager would have 60 days to become  
          certified.  The bill additionally requires that rental  
          agreements be accompanied by a written notice stating whether  
          the park manager is certified, and requires a similar notice to  
          be posted in the clubhouse or some other conspicuous place.
           Arguments in Support
           The bill's sponsor, the Golden State Manufactured-Home Owners  
          League, writes that "AB 869 responds to a long-term and  
          widespread problem that some mobilehome park managers are  
          ignorant of the Mobilehome Residency Law (MRL) and create a  
          hostile environment in parks.  AB 869 would take the first step  
          by establishing an incentive-based manager-training requirement  
          for mobilehome park managers, modeled on a similar approach for  
          condominium managers?.  By encouraging managers to seek  
          appropriate training, AB 869 hopes to foster better  
          relationships between management and residents and ensure more  
          consistent application of the MRL."

           Arguments in Opposition
           Writing in opposition, the California Mobilehome Parkowners  
          Alliance argues that "AB 869 fails to recognize that homeowners  
          have a role in maintaining the overall health and safety of a  
          mobilehome park by properly maintaining their homes.  If the  
          goal of AB 869 is to improve the overall health and safety of  
          mobilehome parks, then the bill should impose training or  
          education standards on park residents who fail to meet their  
          obligations.  Furthermore, AB 869 unfairly imposes training  
          standards on mobilehome park managers while ignoring apartment  
          or common interest development managers.  Far more Californians  
          live in apartments and condominiums than in mobilehome parks.   
          Conflicts are just as common in these landlord tenant  
          situations, yet AB 869 singles out only mobilehome parks."

           Prior Legislation
           
          AB 1469 (Negrete McCleod, 2006) would have established mandatory  
          education requirements for all mobilehome park managers,  
          including five hours of training upon being hired and three  
          hours of  continuing training every year.  The bill was vetoed  
          by the Governor.  The veto message read: 

             "This bill, which would create a new continuing education  








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             requirement for mobilehome park managers, is unnecessary.   
             There is no similar training requirement for onsite managers  
             of traditional rental housing, and the proponents of this  
             measure have not presented a compelling reason to subject  
             managers of mobilehome parks to a higher standard.  As  
             several voluntary educational programs are already available,  
             I see no reason to impose a costly statutory mandate on park  
             owners at this time."

           Staff Comments
           
          AB 869 is modeled on a voluntary certification program for  
          common interest development (CID) managers.  A CID manager can  
          become certified by meeting certain educational requirements,  
          and when offering his or her services to a community association  
          must disclose to the board of directors whether or not he or she  
          is a certified manager.  AB 869 goes a step further for  
          mobilehome parks by requiring managers to become certified in  
          cases where a code violation are not corrected in a timely  
          manner as required by law.

          The only two trade organizations that meet the requirements in  
          AB 869 to offer training appear to be the Western Manufactured  
          Housing Communities Association (WMA) and the Golden State  
          Manufactured Home Owners League (GSMOL).  Of these, only WMA  
          currently offers training for park managers.  WMA points out  
          that their existing training program, while extensive, is not  
          set up to provide training in an expedited manner.  They state  
          that they cannot cost-effectively provide the training within  
          the 60 days required by this bill in cases where a park has  
          violations that have not been resolved in a timely manner.  

          While WMA's current program may not be able to provide training  
          for managers who need it within 60 days, GSMOL could develop its  
          own training program to meet the needs of both those managers  
          who choose to become certified and those who are required to get  
          training as a result of unresolved code violations.  Any  
          accredited post-secondary educational institution could also  
          offer training.  Additionally, parks can entirely avoid having  
          to send a manager through training by ensuring that code  
          violations are corrected.

           Proposed Amendments  :

          1)Clarify that the mandatory certification requirement is only  








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            triggered for unresolved violations that are the  
            responsibility of the park owner or operator to correct.

          2)Require mandatory certification if violations have remained  
            uncorrected either for 120 days or after the expiration of the  
            time period within which the enforcement agency has ordered  
            compliance if longer than 120 days.

          3)For purposes of the notice to be included with rental  
            agreements and posted in the clubhouse, require notice only in  
            cases where the park employs a certified manager.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Golden State Manufactured Home Owners League (sponsor)

           Opposition 
           
          California Mobilehome Parkowners Alliance
          Western Manufactured Housing Communities Association
           
          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916)  
          319-2085