BILL ANALYSIS �
AB 1938
Page 1
ASSEMBLY THIRD READING
AB 1938 (Williams)
As Amended May 17, 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.
4)Allows the management of a mobilehome park to pass on to the
homeowner any fines or damages relating to a code enforcement
AB 1938
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violation for which the homeowner was initially responsible.
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
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
AB 1938
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agency against the management for a violation of the Mobilehome
Parks Act, which governs health and safety conditions in
mobilehome parks. Management would be able to pass through to a
homeowner any fines or damages related to violations for which
the homeowner was initially responsible.
Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085
FN: 0003679