Bill Text: CA AB2778 | 2023-2024 | Regular Session | Amended

California Assembly Bill 2778

Bill Title: Mobilehome Affordability Act: mobilehome parks: rent caps.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-01 - Re-referred to Com. on H. & C.D. [AB2778 Detail]

Download: California-2023-AB2778-Amended.html

Amended IN Assembly March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2778

Introduced by Assembly Member Muratsuchi

February 15, 2024

An act to add Section 798.30.7 to the Civil Code, relating to mobilehomes.

LEGISLATIVE COUNSEL'S DIGEST

AB 2778, as amended, Muratsuchi. ~~Mobilehome~~ Mobilehome Affordability Act: mobilehome parks: rent caps.

Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. Existing law defines “tenancy” for these purposes as the right of a homeowner to use a site within a mobilehome park on which to locate, maintain, and occupy a mobilehome for human habitation, including the use of the services and facilities of the park. Existing law, until January 1, 2030, prohibits, with certain exceptions, the management of a mobilehome park from increasing the gross rental rate for a tenancy in a qualified mobilehome park more than 3% plus the percentage change in the cost of living, as defined, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase, subject to specified conditions. Existing law defines “qualified mobilehome park” for these purposes as a mobilehome park that is located within and governed by the jurisdictions of 2 or more incorporated cities.
This bill would enact the Mobilehome Affordability Act. The bill would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenancy for a mobilehome space more than 3% plus the percentage change in the cost of living, as defined, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase, as specified. The bill would prohibit management from increasing the gross rental rate for a tenancy in more than 2 increments over a 12-month period, after the tenant maintains the tenancy over a 12-month period. Notwithstanding these provisions, the bill would authorize management to increase the rental rate by 5% after a transfer of a mobilehome park, as specified.
This bill would specify that these provisions apply to rent increases for mobilehome spaces occurring on or after January 1, 2024. The bill would provide that in the event that management increased the rent by more than the amount specified above between January 1, 2024, and January 1, 2025, then the applicable rent on January 1, 2025, is the rent as of January 1, 2024, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment. The bill would void any waiver of the rights provided under these provisions. The bill would exempt specified mobilehome spaces from these provisions. The bill would not apply to a mobilehome park when a local government has adopted an ordinance, rule, regulation, or initiative measure before January 1, 2025, that establishes a maximum amount that may be charged by management for rent or otherwise regulates the rental rate for a mobilehome tenancy in that mobilehome park. The bill would provide that its provisions shall not impair, alter, or change any rental term or obligation contained in a rental agreement in effect between management and a resident as of January 1, 2025, and which was entered into or became effective before January 1, 2024, except as described.
Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. Existing law defines “tenancy” for these purposes as the right of a homeowner to use a site within a mobilehome park on which to locate, maintain, and occupy a mobilehome for human habitation, including the use of the services and facilities of the park. Existing law prohibits, with certain exceptions, the management of a mobilehome park from increasing the gross rental rate for a tenancy in a qualified mobilehome park, as defined, more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase, subject to specified conditions.
~~This bill would state the intent of the Legislature to enact the Mobilehome Affordability Act to limit rent increases for mobilehome spaces.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.
This act shall be known, and may be cited, as the Mobilehome Affordability Act.

SEC. 2.

Section 798.30.7 is added to the Civil Code, to read:

798.30.7.
(a) (1) Subject to paragraph (3) and except as provided in subdivision (b), management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy in a mobilehome park by more than 3 percent plus the percentage change in the cost of living, or 5 percent, whichever is lower, of the lowest gross rental rate charged for the tenancy at any time during the 12 months prior to the effective date of the increase.
(2) The gross rental rate does not include charges for a master-metered gas or electric service or utility services.
(3) If the same homeowner maintains a tenancy over any 12-month period, the gross rental rate for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increases.
(b) Notwithstanding subdivision (a), management may increase the rental rate by 5 percent after a transfer of a mobilehome park pursuant to Article 7 (commencing with Section 798.70). This subdivision shall not apply in any of the following circumstances:
(1) A homeowner replaces an existing mobilehome with another mobilehome occupying the same mobilehome space without terminating the homeowner’s tenancy.
(2) A transfer of a mobilehome to a person authorized to occupy the mobilehome, or to the parents, siblings, children, grandchildren, nieces, or nephews of the homeowner, or to a trust holding the property for the benefit of one of those persons.
(3) A transfer pursuant to Section 798.78 or 798.79 if the mobilehome remains in the same mobilehome space.
(c) Management shall provide notice of any increase in the rental rate to each homeowner in accordance with Section 798.30.
(d) (1) Except as provided in subdivision (f), this section shall apply to all rent increases occurring on or after January 1, 2024.
(2) In the event that management has increased the rent by more than the amount permissible under subdivision (a) between January 1, 2024, and January 1, 2025, both of the following shall apply:
(A) The applicable rent on January 1, 2025, shall be the rent as of January 1, 2024, plus the maximum permissible increase under subdivision (a).
(B) Management shall not be liable to a homeowner for any corresponding rent overpayment.
(e) Any waiver of the rights under this section shall be void as contrary to public policy.
(f) (1) This section shall not apply to a tenancy for any of the following:
(A) A mobilehome space restricted by deed, regulatory restriction contained in an agreement with a governmental agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(B) A mobilehome space subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
(C) A mobilehome space within a resident-owned mobilehome park, as defined by subdivision (c) of Section 799.
(D) A mobilehome space occupied by a resident who is not a homeowner, including, but not limited to, any spaces that are directly rented by management. The rental amount to be charged for any such spaces shall be governed by Sections 1946.2, 1947.12, and 1947.13.
(2) This section shall not apply to a mobilehome park when a local government has adopted an ordinance, rule, regulation, or initiative measure before January 1, 2025, that establishes a maximum amount that may be charged by management for rent or otherwise regulates the rental rate for a mobilehome tenancy in that mobilehome park.
(3) This section shall not impair, alter, or change any rental term or obligation contained in a rental agreement in effect between management and a resident as of January 1, 2025, and which was entered into or became effective before January 1, 2024. However, any rental provisions contained in those agreements shall be subject to the provisions of this section following the date upon which the term of the agreement has ended or has been renewed or extended.
(g) (1) Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent, or other regulations for a tenancy.
(2) This section is not intended to express any policy regarding the appropriate, allowable rental rate increase imposed by ordinance, rule, regulation, or initiative measure regulating rent increases, nor in connection with the continuation of any mobilehome rent regulation that a local government has chosen to enact and administer, based upon the particular needs or economic conditions within the local jurisdiction.
(h) For the purposes of this section:
(1) “Consumer Price Index for All Urban Consumers for All Items” means the following:
(A) The Consumer Price Index for All Urban Consumers for All Items for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics.
(B) If the United States Bureau of Labor Statistics does not publish a Consumer Price Index for All Urban Consumers for All Items for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.
(2) (A) “Percentage change in the cost of living” means the percentage change in the applicable Consumer Price Index for All Urban Consumers for All Items, as described in paragraph (1) and computed pursuant to subparagraph (B).
(B) (i) If management provides notice of an increase in the rental rate pursuant to subdivision (c) before July 1 of any calendar year, the percentage change shall be the percentage change in the amount published as of January 1 of that calendar year and January 1 of the immediately preceding calendar year.
(ii) If management provides notice of an increase in the rental rate pursuant to subdivision (c) after July 1 of any calendar year, the percentage change shall be the percentage change in the amount published as of July 1 of that calendar year and July 1 of the immediately preceding calendar year.
(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.