BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 951
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  correa
                                                         VERSION: 2/4/10
          Analysis by: Carrie Cornwell                   FISCAL:  yes
          Hearing date: March 23, 2010








          SUBJECT:

          Mobilehomes: park inspections and fees

          DESCRIPTION:

          This bill extends the Department of Housing and Community  
          Development's Mobilehome Park Maintenance Inspection Program  
          until January 1, 2017.

          ANALYSIS:
          
          The Mobilehome Parks Act requires the Department of Housing and  
          Community Development (HCD) to regulate the construction,  
          installation, use, maintenance, and occupancy of mobilehomes and  
          mobilehome parks.  

          Under the Mobilehome Park Maintenance (MPM) Inspection Program,  
          existing law requires HCD or a local enforcement agency, until  
          January 1, 2012, to inspect mobilehome parks proactively with a  
          goal of inspecting at least five percent of the parks per year  
          and a focus on those parks for which the enforcement agency has  
          received complaints about serious health and safety violations.   


          Existing law provides for HCD or a local enforcement agency,  
          until January 1, 2012, to collect annually a per space fee of $4  
          to fund the MPM inspection program, $2 of which the mobilehome  
          park owner may charge to individual homeowners.

          Existing law requires HCD to convene a task force every six  
          months to provide input to HCD on the conduct and operation of  
          the MPM inspection program. The task force includes mobilehome  




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          park owners, mobilehome owners, local enforcement agencies, and  
          legislative representatives.  HCD must report to the task force  
          information on the number of parks and spaces that were  
          inspected, the fees collected, the most common violations  
          discovered, and the number of violations identified plus  
          progress on correcting those violations.





           This bill  :
          
          1)Extends the sunset date on the MPM inspection program and  
            related fees until 2017.

          2)Requires that HCD report  in writing  to the MPM Task Force and  
            that HCD include additional information in its report on:

             i)   The number of violations issued to mobilehome owners,  
               including the number that have been corrected, the number  
               that are uncorrected, and progress in correcting the  
               uncorrected violations.
             ii)        The number of violations issued to mobilehome park  
               owners, including the number that have been corrected, the  
               number that are uncorrected, and progress in correcting the  
               uncorrected violations.
             iii)       Recommendations for statutory or administrative  
               changes to the MPM program.

          BACKGROUND:

          AB 925 (O'Connell), Chapter 1125, Statutes of 1990 first created  
          the Mobilehome Park Maintenance (MPM) Inspection Program, and it  
          required HCD or a local enforcement agency to inspect every  
          mobilehome and every mobilehome park in the state once every  
          five years.
           
          Because of delays created by the Northridge Earthquake and other  
          factors, HCD was not able to complete the inspection of all  
          mobilehome parks in the first five years.  Therefore, the  
          Legislature twice extended the program to require that all  
          inspections be completed in eight-years, or by 1999.  By 1999,  
          HCD and local agencies had completed the inspection of all  
          mobilehome parks.





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          In 1999, SB 700 (O'Connell), Chapter 520 extended the MPM  
          inspection program until January 1, 2007, and made some changes  
          to the inspection program. In particular, SB 700 limited the  
          inspection program to mobilehome parks that have a history of  
          serious health and safety code violations and required  
          inspections at least once every seven years. SB 700 limited the  
          inspections in part because of the limited funding provided by  
          the $4-fee that supports the MPM program.

          SB 106 (Dunn) of 2005 would have deleted the 2007 sunset date on  
          the MPM inspection program and increased the existing $4-fee to  
          $6 that pays for the inspections.  The Governor vetoed SB 106  
          because of the fee increase, so in 2006, SB 1231 (Dunn), Chapter  
          644, and a companion bill, AB 2250 (Coto), Chapter 858, extended  
          the sunset date from 2007 to 2012 but did not increase the  
          inspection fee.

          COMMENTS:

           1.Purpose  .  The author, who chairs the Senate Select Committee  
            on Manufactured Homes and Communities, believes it is  
            important to extend the MPM inspection program for another  
            five years. He notes that California's nearly 4,000 mobilehome  
            parks house approximately 550,000 residents and that the MPM  
            program provides a complete scheduled inspection of those  
            mobilehome parks, as contrasted with the complaint-driven  
            inspections that otherwise occur. The author asserts that the  
            MPM inspection program came about in1990 because of concerns  
            that the complaint inspection process by itself did not  
            adequately address deteriorating health and safety conditions  
            in some parks. As a result of the MPM program, HCD and local  
            enforcement agencies since 1991 have cited both park owners  
            and homeowners for tens of thousands of health and safety  
            violations, which as a result have been remedied. The author  
            argues that some of these would not otherwise have been  
            addressed. With the impending January 1, 2012 sunset date, the  
            author reports interest from homeowners, HCD, and the park  
            industry in extending the program another five years.

           2.Amendment request  . The Western Manufactured Housing  
            Communities Association (WMA) supports this bill if it is  
            amended to allow mobilehome park owners to pass through to  
            residents fees they pay to operate. This bill does not  
            currently relate to permit-to-operate (PTO) fees. Last year a  
            budget trailer bill (SB 73 [Budget and Fiscal Review], Chapter  
            341) increased the annual PTO fee for each park from $25 plus  




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            $2 per lot to $140 plus $7 per lot. No policy committee heard  
            SB 73, so no discussion of the fee increase or whether it  
            could be passed on to mobilehome park residents occurred. WMA  
            would like that discussion to occur during consideration of  
            this bill. 

            WMA argues that because PTO fees fund the administrative and  
            complaint investigation costs of the Codes and Standards  
            Division of HCD, they benefit both park owners and homeowners.  
            WMA asserts that the state last raised the PTO fees in 1975  
            prior to mobilehome park rent control being adopted in any  
            California communities. Since then, over 100 jurisdictions  
            have established rent control on their mobilehome parks with  
            different standards and conditions for park owners to pass  
            through additional costs to mobilehome owners. For this  
            reason, WMA seeks authorization to pass through last year's  
            increase in the PTO fee.
            
          RELATED LEGISLATION

          AB 1964 (Torres) extends the Mobilehome Park Maintenance  
          Inspection Program until January 1, 2019. Set for hearing in the  
          Assembly Housing and Community Development Committee on April  
          14th.
          
          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     March 17, 2010)

               SUPPORT:  California Rural Legal Assistance Foundation
                         Golden State Mobilehome Owners League
                         Western Center on Law & Poverty
                         
               OPPOSED:  None received.