Bill Text: CA AB2026 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Mobilehome parks: sales.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-05-29 - Read third time. Refused passage. (Ayes 26. Noes 34. Page 5354.). [AB2026 Detail]

Download: California-2013-AB2026-Amended.html

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BILL NUMBER: AB 2026	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 5, 2014
	AMENDED IN ASSEMBLY  APRIL 21, 2014

INTRODUCED BY   Assembly Member Stone

                        FEBRUARY 20, 2014

   An act to amend  Sections 798.73.5 and  
Section  798.74 of the Civil Code, relating to mobilehome parks.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2026, as amended, Stone. Mobilehome parks: sales. 
   Existing law authorizes the management of a mobilehome park, in
the case of a sale or transfer of a mobilehome that is sold and that
will remain in the park, to require repairs or improvements to the
mobilehome, its appearances, or any accessory structure only if
specified conditions are met, including that the repair or
improvement based upon or required by a local ordinance or state
statute or regulation relating to mobilehomes.  
   This bill would require a determination following an inspection by
the appropriate enforcement agency that the repair or improvement is
required by the local ordinance or state statute or regulation in
order for the management to require the repair or improvement.

   Existing law authorizes the management of a mobilehome park to
require prior approval of a purchaser of a mobilehome that will
remain in the park. Existing law also prohibits management from
withholding approval if the purchaser has the ability to pay the rent
and charges of the park, except as specified. Existing law
authorizes management to require the purchaser to document the amount
and source of his or her gross monthly income or other means of
support but prohibits management from requiring personal income tax
returns as evidence. Existing law requires management, upon request
of any prospective homeowner who proposes to purchase a mobilehome
that will remain in the park, to inform that person of the
information that management will require to determine if the person
will be acceptable as a homeowner in the park. Existing law permits
the management or owner to be held liable for all damages if the
approval of a prospective homeowner is withheld for any unauthorized
reason.
   This bill would require the purchaser to be presumed to have the
financial ability to pay the rent and charges of the park if he or
she has been approved for a loan to purchase the mobilehome that the
purchaser intends to occupy, or if the purchaser has not been
approved for a loan, based upon consideration of all information
provided by the purchaser regarding his or her assets and ability to
generate income demonstrating sufficient monthly income that meets or
exceeds the income standard disclosed by management. The bill would
prohibit that income standard from exceeding a multiplier of 3 times
the purchaser's income over the projected housing-related expenses to
be paid by the purchaser in connection with the proposed mobilehome
tenancy. The bill would prohibit management from withholding approval
on the basis that the prospective purchaser will not comply with the
rules and regulations of the  park.   park
unless the prospective purchaser has been evicted from the same park
where he or she is applying for residency or the determination is
reasonably based upon the prospective purchaser's prior tenancies
within the 3 years preceding the purchaser's application.  The
bill would also prohibit management from withholding approval solely
because the purchaser owns another mobilehome or real property
residence and from requiring that the mobilehome being purchased be
the sole residence of the purchaser. The bill would require
management, upon request, to provide a prospective purchaser with a
list of information that management will require in order to
determine if the person will be acceptable as a homeowner in the park
and a copy of the current written procedures, standards, or
requirements that will be used by management to evaluate the
purchaser's application.  This   The  bill
would require the management, if a prospective homeowner is denied
approval and if requested, to meet with the purchaser or homeowner at
which time the management would be required to reconsider the
 denial based upon   denial, including  any
additional information  relevant to the application 
provided by the prospective homeowner.  This bill would
permit the management or owner to be held liable for damages to
either the selling homeowner or the prospective homeowner if the
approval is withheld for any unauthorized reason. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 798.73.5 of the Civil Code
is amended to read:
   798.73.5.  (a) In the case of a sale or transfer of a mobilehome
that will remain in the park, the management may only require repairs
or improvements to the mobilehome, its appurtenances, or an
accessory structure that meet all of the following conditions:
   (1) Except as provided by Section 798.83, the repair or
improvement is to the mobilehome, its appurtenances, or an accessory
structure that is not owned and installed by the management.
   (2) The repair or improvement is based upon or is required by a
local ordinance or state statute or regulation relating to
mobilehomes, or a rule or regulation of the mobilehome park that
implements or enforces a local ordinance or a state statute or
regulation relating to mobilehomes, as determined following an
inspection by the appropriate enforcement agency, as defined in
Section 18207 of the Health and Safety Code.
   (3) The repair or improvement relates to the exterior of the
mobilehome, its appurtenances, or an accessory structure that is not
owned and installed by the management.
   (b) The management, in the case of sale or transfer of a
mobilehome that will remain in the park, shall provide a homeowner
with a written summary of repairs or improvements that management
requires to the mobilehome, its appurtenances, or an accessory
structure that is not owned and installed by the management no later
than 10 business days following the receipt of a request for this
information, as part of the notice required by Section 798.59. This
summary shall include specific references to park rules and
regulations, local ordinances, and state statutes and regulations
relating to mobilehomes upon which the request for repair or
improvement is based.
   (c) The provisions of this section enacted at the 1999-2000
Regular Session of the Legislature are declarative of existing law as
they pertain to allowing park management to enforce park rules and
regulations; these provisions specifically limit repairs and
improvements that can be required of a homeowner by park management
at the time of sale or transfer to the same repairs and improvements
that can be required during any other time of a residency. 
   SEC. 2.   SECTION 1.   Section 798.74 of
the Civil Code is amended to read:
   798.74.  (a) The management may require the right of prior
approval of a purchaser of a mobilehome that will remain in the park
and that the selling homeowner or his or her agent give notice of the
sale to the management before the close of the sale. Approval shall
not be withheld if the purchaser has the financial ability to pay the
rent and charges of the park unless the management reasonably
determines that, based on the purchaser's prior tenancies, he or she
will not comply with the rules and regulations of the park. In
determining whether the purchaser has the financial ability to pay
the rent and charges of the park, the management shall not require
the purchaser to submit copies of any personal income tax returns in
order to obtain approval for residency in the park. However,
management may require the purchaser to document the amount and
source of his or her gross monthly income or means of financial
 support.   support, but in no event shall the
income standard exceed a multiplier of three times the purchaser's
income over the projected housing-related expenses to be paid by the
purchaser in connection with the proposed mobile home tenancy. 
   (b) For purposes of determining the prior approval of a purchaser
pursuant to this section, all of the following shall apply:
   (1) A purchaser shall be presumed to have the financial ability to
pay the rent and charges of the park if the purchaser has been
approved by a state or federally chartered financial institution for
a loan to purchase the mobilehome that the purchaser intends to
occupy and written documentation confirming this fact has been
provided to management.
   (2) If the purchaser has not been approved for a loan to purchase
the mobilehome pursuant to paragraph (1), the management shall
determine the purchaser's financial ability to pay the rent and
charges of the park based upon consideration of all information
provided by the purchaser regarding his or her assets and ability to
generate income, including, but not limited to, savings accounts,
certificates of deposit, stock portfolios, trust interests of which
the purchaser is the beneficiary, real property, and similar
financial assets that can be liquidated or sold. A purchaser who
demonstrates sufficient monthly income from all sources that meets or
exceeds the income standard  disclosed by management
pursuant to subdivision (d)   established pursuant to
subdivision (a)  shall be presumed to have the financial ability
to pay the rent and charges of the park.
   (3) Management shall not withhold approval on the basis that the
purchaser will not comply with the rules and regulations of the park
unless  management provides the purchaser with documentary
evidence that the purchaser has failed to comply with the rules and
regulations during a previous tenancy within the three years
preceding the purchaser's application for tenancy.  
either of the following apply:  
   (A) The prospective purchaser has been evicted from the same park
where he or she is applying for residency at any time preceding the
purchaser's application for tenancy.  
   (B) Management reasonably determines, based upon the prospective
purchaser's prior tenancies within the three years preceding the
purchaser's application, that the prospective purchaser will not
comply with the rules and regulations of the park. If management
withholds approval on this basis, it shall provide the prospective
purchaser with documentary evidence supporting this determination in
the written rejection of the purchaser's application pursuant to
subdivision (e). 
   (c) Management shall not withhold approval solely because the
purchaser owns another mobilehome or real property residence.
Management shall not require that the mobilehome that is the subject
of the purchase be the sole residence of the purchaser as a condition
of granting approval.
   (d) Upon request of any prospective homeowner who proposes to
purchase a mobilehome that will remain in the park, management shall
provide that person with a list of the information management will
require in order to determine if the person will be acceptable as a
homeowner in the park, and a copy of the current written procedures,
standards, or requirements that will be used by management to
evaluate the purchaser's application, including, but not limited to,
minimum income standards that will be used to determine the purchaser'
s financial ability  to pay  the rent and charges of the
park pursuant to paragraph (2) of subdivision (b).  The
income standard shall not exceed a multiplier of three times the
purchaser's income over the projected housing-related expenses to be
paid by the purchaser in connection with the proposed mobilehome
tenancy. 
   (e) Within 15 business days of receiving all of the information
requested from the prospective homeowner, the management shall notify
the seller and the prospective homeowner, in writing, of either
acceptance or rejection of the application, and the specific reason
or reasons, if rejected. During this 15-day period the prospective
homeowner shall comply with the management's request, if any, for a
personal interview. If a prospective homeowner is denied approval,
within five business days of receiving the denial, the selling
homeowner and the prospective homeowner may request an in-person
meeting with management. If requested, the meeting shall take place
within 10  bus   iness  days, at which time the
management shall reconsider its  denial based upon any
additional information provided by the prospective homeowner.
  denial, including the consideration of any additional
information relevant to the   application provided by the
prospective homeowner.  If the approval of a prospective
homeowner is withheld for any reason other than those stated in this
article, the management or owner may be held liable for all damages
 to the selling homeowner and the prospective homeowner
 proximately resulting therefrom.
   (f) If the management collects a fee or charge from a prospective
purchaser of a mobilehome in order to obtain a financial report or
credit rating, the full amount of the fee or charge shall be credited
toward payment of the first month's rent for that mobilehome
purchaser. If, for whatever reason, the prospective purchaser is
rejected by the management, the management shall refund to the
prospective purchaser the full amount of that fee or charge within 30
days from the date of rejection. If the prospective purchaser is
approved by the management, but, for whatever reason, the prospective
purchaser elects not to purchase the mobilehome, the management may
retain the fee, or a portion thereof, to defray its administrative
costs under this section.