BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2150
                                                                  Page  1

          Date of Hearing:   May 9, 2012

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                 AB 2150 (Atkins) - As Introduced:  February 23, 2012

                        AS PROPOSED TO BE AMENDED MAY 9, 2012
           
          SUBJECT  :   Mobilehome parks.

           SUMMARY  :   Creates a new notice that the management in a 
          mobilehome park must provide to all homeowners on an annual 
          basis. Specifically,  this bill  :  

          1)Requires the management in a mobilhome park to include a copy 
            of the following notice with any rental agreement and, prior 
            to Feburary 1 of each year, provide a copy of the notice to 
            all homeowners:

               IMPORTANT NOTICE TO ALL MANUFACTURED HOME/MOBILEHOME 
               OWNERS: CALIFORNIA LAW REQUIRES THAT YOU BE MADE AWARE OF 
               THE FOLLOWING:

               The Mobilehome Residency Law (MRL), found in Section 798, 
               et seq. of the Civil Code, establishes the rights and 
               responsibilities of homeowners and park management. The MRL 
               is deemed a part of terms of any park rental agreement or 
               lease. This law is subject to change. You may request a 
               current copy of the complete text of this law once per year 
               from the park management.

               Homeowners and park management have certain rights and 
               responsibilities under the MRL. These include, but are not 
               limited to:

               1)     Management must give a homeowner written notice of 
                 any increase in his or her rent at least 90 days before 
                 the date of the increase. �Civil Code 798.30]     

               2)     No rental or sales agreement may contain a provision 
                 by which a purchaser or a homeowner waives any of his or 
                 her rights under the MRL  .  �Civil Code Sections 798.19, 
                 798.77]
                
               3)     Management may not terminate or refuse to renew a 








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                 homeowner's tenancy except for one or more of the 
                 authorized reasons set forth in the MRL. �Civil Code 
                 Sections 798.55, 798.56]

               4)     A homeowner must give written notice to the 
                 management of not less than 60 days before vacating his 
                 or her tenancy. �Civil Code Section 798.59]

               5)     Homeowners, residents, and their guests must comply 
                 with the rental agreement or lease, including the 
                 reasonable rules and regulations of the park and all 
                 applicable local ordinances and state laws and 
                 regulations relating to mobilehomes. Failure to comply 
                 could be grounds for eviction from the park. �Civil Code 
                 Section 798.56]

               6)     Homeowners must pay rent, utility charges, and 
                 reasonable incidental service charges in a timely manner. 
                 Failure to comply could be grounds for eviction from the 
                 park. �Civil Code Section 798.56]

               7)     Homeowners have a right to peacefully assemble and 
                 freely communicate with respect to mobilehome living and 
                 for social or educational purposes. Homeowners have a 
                 right to meet in the park, at reasonable hours and in a 
                 reasonable manner, for any lawful purpose. Homeowners may 
                 not be charged a cleaning deposit in order to use the 
                 park clubhouse for meetings of resident organizations or 
                 for other lawful purposes, such as to hear from political 
                 candidates, so long as all park residents are allowed to 
                 attend. Homeowners may not be required to obtain 
                 liability insurance in order to use common facilities 
                 unless alcohol is served. (Civil Code Sections 798.50, 
                 798.51).

               8)     If a home complies with certain standards, the 
                 homeowner is entitled to sell it in place in the park. 
                 Management may require certain upgrades. Management may 
                 not require a homeowner to sell his or her home to the 
                 park, may not charge a transfer or selling fee, and may 
                 not require a homeowner to use a broker or dealer 
                 approved by the park. A homeowner has a right to 
                 advertise his or her home for sale. Management may deny 
                 approval of a buyer, but only for certain reasons listed 
                 in the law. �Civil Code Sections 798.70-798.74]. 








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               9)     Management has the right to enter the space upon 
                 which a mobilehome is situated for maintenance of 
                 utilities, trees, and driveways; for inspection and 
                 maintenance of the   space in accordance with the rules and 
                 regulations of the park when the homeowner or resident 
                 fails to maintain the space; and for protection and 
                 maintenance of the mobilehome park at any reasonable 
                 time, but not in a manner or at a time that would 
                 interfere with the resident's quiet enjoyment of his or 
                 her home. �Civil Code Section 798.26]

               10)    A homeowner may not make any improvements or 
                 alterations to his or her space or home without following 
                 the rules and regulations of the park and all applicable 
                 local ordinances and state laws and regulations, which 
                 may include obtaining a permit to construct, and, if 
                 required by park rules or the rental agreement, without 
                 prior written approval of management. Failure to comply 
                 could be grounds for eviction from the park. �Civil Code 
                 Section 798.56]  

          2)Provides that all notices required under the Mobilehome 
            Residency Law (Civil Code Section 798, et seq) to be delivered 
            prior to February 1 of each year may be combined in one notice 
            that contains all the information required by the sections 
            under which the notices are given.

           EXISTING LAW  

          1)Regulates, pursuant to the Mobilehome Residency Law (MRL), the 
            rights, responsibilities, obligations, and relationships 
            between mobilehome park management and park residents (Civil 
            Code Section 789, et seq.).

          2)Requires a copy of the text of the MRL to be attached as an 
            exhibit and incorporated into a mobilehome park rental 
            agreement by reference (Civil Code Section 798.15).

          3)Requires management to do one of the following prior to 
            February 1 of each year, if a significant change was made in 
            the MRL by legislation enacted in the prior year:

             a)   Provide all homeowners with a copy of this chapter; or 









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             b)   Provide written notice to all homeowners that there has 
               been a change to this chapter and that they may obtain one 
               copy of this chapter from management at no charge. 
               Management must provide a copy within a reasonable time, 
               not to exceed seven days upon request.

          4)Requires the management of a master-metered park to give 
            written notice to homeowners and residents on or before 
            February 1 of each year in their utility billing statements 
            about assistance to low-income persons for utility costs 
            available under the California Alternate Rates for Energy 
            (CARE) program (Civil Code Section 798.43.1).

           FISCAL EFFECT  :   None

           COMMENTS  :   

          The Mobilehome Residency Law (MRL) is California's 
          landlord-tenant law for mobilehome parks.  When a homeowner 
          signs a rental agreement in a mobilehome park, a copy of the 
          text of the MRL must be attached as an exhibit. Anytime the MRL 
          is significantly changed, park management must, by February 1, 
          either provide a new copy of the MRL to every homeowner or 
          provide every homeowner with a notice that the law has been 
          changed and that they can obtain a copy from management at no 
          charge.  

          AB 2150 creates a new notice that would have to be included with 
          any new rental agreement in a mobilehome park and be provided to 
          all homeowners prior to February 1 of each year. The new notice 
          provides a summary of homeowners' key rights and 
          responsibilities under the MRL. The bill would delete the 
          existing requirement that management notify homeowners when the 
          MRL has been changed and instead include language in the new 
          notice stating that the MRL is subject to change and that 
          homeowners can request a copy of the law once per year from 
          management. 

          Current law requires the management in master-metered parks to 
          give written notice to homeowners and residents on or before 
          February 1 of each year in their utility billing statements 
          about assistance to low-income persons for utility costs 
          available under the California Alternate Rates for Energy (CARE) 
          program. AB 2150 would allow park management to combine the new 
          notice with the CARE notice.








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           Arguments in Support
           The sponsor of the bill, the Golden State Manufactured-Home 
          Owners League (GSMOL), states that AB 2150 will help ensure that 
          low- and moderate-income owners and potential purchasers of 
          manufactured housing have a clear statement of important rights 
          and duties that affect their residency in a manufactured housing 
          community. According to GSMOL, the notice proposed in this 
          legislation is a simple but important consumer tool that will be 
          extremely beneficial to homeowners, who may not otherwise be 
          aware of their rights.

           
          Arguments in Opposition
           The Western Manufactured Housing Communities Association (WMA), 
          which has an "oppose unless amended" position on AB 2150, argues 
          that the bill would create another requirement for a notice that 
          is more of an informational summary of residents' rights than a 
          legal notice of their actual rights under the MRL. WMA has 
          concerns that there is no demonstrated need for the bill and 
          that the bill contradicts changes made just two years ago in the 
          same statute.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           Golden State Manufactured-Home Owner's League (sponsor)
          California Rural Legal Assistance Foundation
          Western Center on Law and Poverty

           Opposition 
           Western Manufactured Housing Communities Association (unless 
          amended)

           Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085