BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 224
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  Correa
                                                         VERSION: 2/23/09
          Analysis by: Carrie Cornwell                   FISCAL:  yes
          Hearing date: March 31, 2009








          SUBJECT:

          CalHome program: mobilehomes: fire code upgrades

          DESCRIPTION:

          This bill clarifies that CalHome funds may be used for the  
          rehabilitation of mobilehomes to meet new state building code  
          requirements to install fire resistant exteriors in specified  
          circumstances.

          ANALYSIS:

          Under existing law, the CalHome program, administered by the  
          Department of Housing and Community Development (HCD), provides  
          grants and loans to local public agencies and nonprofit  
          corporations for projects or programs that enable low and very  
          low-income to become or remain homeowners.  Local public  
          agencies and nonprofit corporations may use CalHome grants to  
          assist individual households. HCD may also make loans directly  
          to developers to assist multiple homeownership development  
          projects. 

          Local public agencies and nonprofit corporations may use CalHome  
          grants to assist individual households specifically with  
          first-time homebuyers assistance, home rehabilitation, homebuyer  
          counseling, home acquisition and rehabilitation, self-help  
          mortgage assistance, or technical assistance for self help and  
          shared housing. 

          Last year, HCD adopted emergency regulations to require that  
          mobilehomes in specified high wildfire hazard zones be  
          retrofitted with ignition resistant exterior components,  




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          including roofs and siding, when those homes are moved or are  
          undergoing renovations that require issuance of a building  
          permit. Newer mobilehomes already meet this standard.

           This bill  :

          1.Permits local public agencies and nonprofit corporations to  
            make grants of CalHome funds specifically for the installation  
            or retrofit of ignition resistant exterior components on  
            existing mobilehomes as required by the recent amendments to  
            the state building code.

          2.Prohibits local public agencies and nonprofit corporations  
            from conditioning home rehabilitation funds under CalHome upon  
            the rehabilitation of additional or unrelated home components  
            unless also required under this same amendment to the state  
            building code.

          3.Prohibits a local public agency or nonprofit corporation from  
            denying CalHome funding to a housing program or project solely  
            on the basis that the home is a mobilehome or that the home is  
            located in a mobilehome park.
          
          COMMENTS:

           1.Purpose  . The author reports that while the CalHome program  
            provides rehabilitation assistance to preserve and expand  
            affordable housing, including assistance for those living in  
            manufactured homes or mobilehomes in parks, some agencies that  
            administer CalHome-funded grants and loans do not consider  
            mobile homes eligible, despite the low-income status of the  
            homeowner.  The author chairs the Senate Select Committee on  
            Manufactured Housing and Communities. He notes that mobilehome  
            owners have queried his committee about why local agencies  
            administering state funds from a program that ostensibly  
            recognizes mobilehome eligibility can deny them access to  
            funding because they live in mobilehomes.   

            The author points out that new requirements in the state  
            building code require mobilehome owners in parks located in  
            wildfire-prone zones to upgrade components of their homes.  
            This makes access to CalHome funds all the more important for  
            some low-income park residents who do not have the resources  
            to make these improvements.  Although the new requirements are  
            only imposed at the time that repair or replacement of a  
            component is required, mobilehome parks could potentially  




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            impose these requirements as part of their park rules,  
            violations of which may subject residents unable to comply  
            with various sanctions, including eviction. Although HCD has  
            indicated on an informal basis that low-income mobilehome  
            owners in parks are eligible for CalHome rehabilitation  
            funding, some homeowners believe there should be greater  
            clarification of such eligibility. This bill provides that  
            clarity.

           2.Previous legislation  . SB 753 (Correa), Chapter 561, Statutes  
            of 2007, made CalHome funds available to the owners of  
            manufactured homes and mobilehomes to purchase their homes as  
            well as the land beneath those homes. 

          
          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     March 25, 2009)

               SUPPORT:  American Federation of State, County, and  
          Municipal Employees

               OPPOSED:  None received.