BILL ANALYSIS �
AB 1938
Page 1
ASSEMBLY THIRD READING
AB 1938 (Williams)
As Amended May 7, 2012
Majority vote
HOUSING 5-2 JUDICIARY 10-0
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|Ayes:|Torres, Atkins, Bradford, |Ayes:|Feuer, Wagner, Atkins, |
| |Fong, Hueso | |Dickinson, Gorell, Huber, |
| | | |Jones, Monning, |
| | | |Wieckowski, Chesbro |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines, Jeffries | | |
| | | | |
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SUMMARY : Makes changes to the laws governing rental agreements
in mobilehome parks. Specifically, this bill :
1)Specifies that a homeowner who signs a rental agreement in
excess of 12 months' duration may void the agreement by
notifying management in writing within 72 hours of returning
the signed rental agreement to management, provided that
management provides the homeowner with a copy of the signed
rental agreement at the time the homeowner returns it.
2)Specifies that in cases where management does not provide the
homeowner with a copy of the signed rental agreement at the
time the homeowner returns it, the homeowner may void the
agreement within 72 hours of receiving an executed copy of the
rental agreement.
3)Prohibits the management in a mobilehome park from charging or
imposing upon a homeowner any fee or increase in rent that
reflects the cost to the management of any fine, forfeiture,
penalty, money damages, or fee assessed or awarded by a court
of law or an enforcement agency for a violation of the
Mobilehome Parks Act (Health and Safety Code Section 18200, et
seq.), including any attorney's fees and costs incurred by the
management.
EXISTING LAW :
AB 1938
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1)Specifies that a rental agreement in a mobilehome park in
excess of 12 months' duration that is entered into between the
management and a homeowner for the personal residence of the
homeowner is exempt from any ordinance, rule, regulation, or
initiative measure adopted by any local governmental entity
that establishes a maximum amount that a landlord may charge a
tenant for rent (Civil Code Section 798.17).
2)Specifies that a homeowner who executes a long-term rental
agreement may void the agreement by notifying management in
writing within 72 hours of the homeowner's execution of the
rental agreement (Civil Code Section 798.17).
3)Requires management to return an executed copy of the rental
agreement to the homeowner within 15 business days after
management has received the rental agreement signed by the
homeowner (Civil Code Section 798.16).
4)Prohibits management from charging or imposing upon a
homeowner any fee or increase in rent that reflects the cost
to the management of any fine, forfeiture, penalty, money
damages, or fee assessed or awarded by a court of law against
the management for a violation of the Mobilehome Residency
Law, including any attorney's fees and costs incurred by the
management in connection therewith (Civil Code Section
798.39.5).
FISCAL EFFECT : None
COMMENTS : There are approximately 4,822 mobilehome parks and
manufactured housing communities in California, with an
estimated 700,000 residents living in these parks. In the
majority of parks, mobilehome residents own their homes but rent
the spaces on which their homes are installed. "Mobilehome" is
something of a misnomer in that once installed in a park, it is
very rare for a mobilehome to be moved. This is due to both the
difficulty and cost involved, and also because the supply of
mobilehome spaces is very limited, vacancies are rare, and most
park owners do not allow the installation of older mobilehomes
in their parks.
Over 100 jurisdictions in California have some form of local
rent control ordinance limiting the amount of rent or
establishing a maximum amount of rent that the management of a
mobilehome park may charge a tenant. Long-term rental
AB 1938
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agreements, those with a term longer than 12 months, are exempt
from local rent control.
Under current law, a homeowner has 72 hours to void a long-term
rental agreement after signing it. Current law also gives park
management 15 business days to return a copy of the executed
lease to the homeowner. Thus, the window of opportunity for a
homeowner to void the lease closes 12 days before the park
management is required to provide the homeowner with a copy of
the fully executed lease.
This bill addresses this issue by specifying that a homeowner
has 72 hours to void a long-term rental agreement after signing
it, so long as the homeowner gets a copy of the rental agreement
at that time. If the homeowner does not get a copy of the
rental agreement at the time of signing, then the homeowner
would have 72 hours from the time he or she receives an executed
copy of the agreement to void it.
Under current law, park management is prohibited from passing
through to homeowners the costs of any fines, penalties, or
damages awarded by a court against the management for a
violation of the Mobilehome Residency Law. This bill expands
this provision by additionally prohibiting management from
passing through damages awarded by a court or an enforcement
agency against the management for a violation of the Mobilehome
Parks Act, which governs health and safety conditions in
mobilehome parks.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0003528