BILL ANALYSIS
SENATE JUDICIARY COMMITTEE
Senator Ellen M. Corbett, Chair
2009-2010 Regular Session
SB 804
Senator Leno
As Introduced
Hearing Date: May 5, 2009
Civil Code
BCP:jd
SUBJECT
Mobilehomes: Sales and Replacements
DESCRIPTION
This bill would prohibit the management of a mobilehome park
from requiring a homeowner to use a specific broker, dealer, or
other person as an agent in the purchase or installation of a
replacement home.
BACKGROUND
Enacted in 1978, the Mobilehome Residency Law (MRL) governs the
relationship between park owners or managers and the residents
of the more than 4,800 mobilehome parks and manufactured housing
communities in California. In addition, state law and
regulations (Mobilehome Parks Act and Title 25) govern the
installation of those homes in mobilehome parks and the health
and safety standards for those parks.
When purchasing a replacement manufactured home, the Department
of Housing and Community Development (HCD) recommends the
purchase of new homes from a licensed individual, but notes that
"[u]sed manufactured housing may be purchased through a licensed
manufactured home dealer or salesperson, through a real estate
broker or salesperson licensed by the California Department of
Real Estate (DRE), or directly from a private owner/seller."
HCD also notes that a park owner, under certain circumstances,
may sell directly a home either because the owner is a licensed
dealer or because the owner is selling a unit obtained from a
former resident. In all cases, HCD, among other things: (1)
recommends contacting park management before purchasing a home
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to find out about park restrictions; (2) states that the sales
agreement must be in writing; and (3) notes that an inspection
is required from a state or local building department after
installation and prior to occupancy.
In order to increase protections for resident homeowners, this
bill would prohibit park management from requiring a homeowner
to use a specific broker, dealer, or other person in replacing
their home. That prohibition is similar to a provision in
current law that restricts management's actions with regards to
the sale of existing homes.
CHANGES TO EXISTING LAW
Existing law , the Mobilehome Residency Law, governs the
relationship between park owners or managers and the residents
in mobilehome parks and manufactured housing communities. (Civ.
Code Sec. 798 et seq.)
Existing law provides that park management may not prohibit the
listing nor the sale of a manufactured home or mobilehome within
the park by the homeowner, an heir, joint tenant, or personal
representative of the homeowner's estate. (Civ. Code Sec.
798.71 (b).)
Existing law additionally provides that park management may not
require the seller to authorize the management or any other
specified broker, dealer, or person to act as the agent in the
sale of a mobilehome as a condition of either: (1) resale of the
home within the park; or (2) management's approval of the buyer
or prospective homeowner for residency in the park. (Civ. Code
Sec. 798.71(c).)
This bill would provide that the management shall not require a
homeowner, who is replacing a mobilehome or manufactured home on
a space in the park, in which he or she resides, to use a
specific broker, dealer, or other person as an agent in the
purchase of or installation of the replacement home.
COMMENT
1. Stated need for the bill
According to the author:
Existing law does not protect park residents from
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unnecessary obligations that a park owner or management may
require during the purchase or installation of a replacement
mobile home. The resident should enjoy the right to choose
any broker, dealer or agent to assist them. This bill would
clearly codify that right in statute.
2. Ability to choose any broker, dealer, or agent
This bill would provide that the management of a mobilehome park
shall not require a homeowner to use a specific broker, dealer,
or other person in the purchase or installation of a replacement
home. That prohibition is similar to provisions under existing
law that impose restrictions with regards to the sale of a home
in a park. (Civ. Code Sec. 798.71(c).) Furthermore, from a
public policy standpoint, a resident should have the freedom to
contract with whomever they desire in the purchase and
installation of a replacement home.
In support of the above provision, the author contends: "a
resident should enjoy the right to decide the business entity
from which they purchase a replacement home." Although the
author notes that mobilehome park owners and management may have
a concern about constraining their authority within the park,
the Committee received no letters of opposition to this bill.
3. Recent circumstances demonstrating need for owners to
replace their homes
Mobilehome parks and manufactured housing communities, like any
other neighborhood, can become the victim of natural disasters.
A recent example, a fire in the Oakridge Mobile Home Park
resulted in destruction of nearly all of the mobile homes in the
park. Those residents, should they choose to continue living in
the park, will need to purchase replacement homes. The Los
Angeles Times November 16, 2008 article entitled, Firestorm: A
Community Erased, reported:
"Prepare yourselves for the worst," Los Angeles Fire
Department Capt. Steve Ruda told the crowd of frightened,
exhausted people who had been evacuated early Saturday from
Sylmar's Oakridge Mobile Home Park. "I don't have good
news." As some of the 200 evacuees wept nearby, Ruda held
up a charred, tattered flag. "Let this American flag be a
sign of hope," he said, choking up.
But by day's end, that hope was hard to cling to, as 501 of
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the park's 600 mobile homes had been destroyed and at least
40 more had suffered significant damage.
The park was a scene of devastation, where 50-foot flames
had leveled street after street of homes and melted hastily
dropped fire hoses into the pavement after even the
firefighters were forced to flee. With rare exceptions,
only ash and twisted metal remained.
Support : None Known
Opposition : None Known
HISTORY
Source : Author
Related Pending Legislation :
SB 111 (Correa), would reorganize the Mobilehome Residency Law
by: (1) renumbering various provisions; (2) adding a new code
section referencing three sections that relate to the
enforcement of park rules and regulations; and (3) other
technical, conforming changes. This bill is in the Assembly.
Prior Legislation :
SB 1090 (Dunn, Chapter 567, Statutes of 2004), prohibited the
management of a mobilehome park from requiring a homeowner, or
an heir, joint tenant, or personal representative of a
mobilehome to use a specified agent of the management in the
sale of the home as a condition of resale.
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