Bill Text: CA SB274 | 2019-2020 | Regular Session | Enrolled


Bill Title: Mobilehome parks: tenancies.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled) 2019-09-10 - Enrolled and presented to the Governor at 4 p.m. [SB274 Detail]

Download: California-2019-SB274-Enrolled.html

Enrolled  September 06, 2019
Passed  IN  Senate  September 04, 2019
Passed  IN  Assembly  September 03, 2019
Amended  IN  Assembly  August 19, 2019
Amended  IN  Assembly  July 09, 2019
Amended  IN  Assembly  June 25, 2019
Amended  IN  Senate  May 07, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 274


Introduced by Senator Dodd
(Coauthor: Senator Stern)

February 13, 2019


An act to amend Sections 798.34 and 798.74 of, and to add Section 798.62 to, the Civil Code, relating to mobilehome residency.


LEGISLATIVE COUNSEL'S DIGEST


SB 274, Dodd. Mobilehome parks: tenancies.
The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks. The law requires, among other things, that the management of a mobilehome park comply with noticing and other specified requirements in order to terminate a tenancy in a mobilehome park because of a change of use of the mobilehome park.
This bill would require management to offer the previous homeowner a right of first refusal to a renewed tenancy in the park if the park is destroyed due to a fire or other natural disaster and management elects to rebuild the park in the same location. The bill would require the terms of the renewed tenancy to be substantially the same as the prior rental agreement, except for adjustments to reflect costs and expenses incurred to rebuild the park, as specified. The bill would require a previous owner to accept the offer within 60 days of receiving the offer, as specified. The bill would require management to accept applications on a first-come-first-served basis and would make the offers nontransferable.
The law provides that a homeowner may be charged a fee for an individual staying with the homeowner for more than 20 consecutive days or a total of 30 days in a calendar year. Existing law prohibits park management from charging a fee to an individual who lives alone and shares their occupancy with one other person, designated as a companion, provided that only one individual may be designated as a companion within a calendar year, except as specified.
This bill would, instead, allow an individual to designate up to 3 companions in a calendar year, but no more than one companion at a time, unless otherwise authorized by management.
Existing law authorizes management to require that management approve the purchaser of a mobilehome that will remain in the park and require that the selling homeowner, or his or her agent, give notice of the sale to management before the close of the sale. Existing law prohibits management from withholding approval from a purchaser who has the financial ability to pay the rent and charges of the park, except as otherwise provided. Existing law requires management to consider the amount and source of the purchaser’s gross monthly income or means of financial support when making this determination.
This bill would require a selling homeowner or their agent to provide notice to management of a sale of a mobilehome before the close of the sale. The bill would require management, upon receipt of that notice, to within 15 days provide a selling homeowner or prospective purchaser with the standards that management customarily utilizes to approve a tenancy application and a list of all documentation needed to determine if the prospective purchaser will qualify for tenancy in the park. The bill would prohibit management from withholding approval from a prospective purchaser of a mobilehome unless management reasonably determines that the purchaser will not comply with the rules and regulations of the park, the purchaser does not have the financial ability to pay the rent, estimated utilities, and other charges of the park, or the purchaser commits fraud, deceit, or concealment of material facts during the application process.
This bill would allow the purchaser to provide, and require park management to consider, evidence of additional financial assets if an application is denied due to the inability to pay the rent, estimated utilities, and other charges, including savings accounts, certificates of deposit, stock portfolios, real property, and any other financial asset that can be liquidated or sold, when making that determination. The bill would authorize management to consider liabilities, as well as the additional financial assets, when determining whether the prospective purchaser has the financial ability to pay the rent, estimated utilities, and other charges. The bill would provide that management may be held liable to a selling homeowner for failing to comply with those provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 798.34 of the Civil Code is amended to read:

798.34.
 (a) A homeowner shall not be charged a fee for a guest who does not stay with the homeowner for more than a total of 20 consecutive days or a total of 30 days in a calendar year. A person who is a guest, as described in this subdivision, shall not be required to register with the management.
(b) A homeowner who is living alone in the mobilehome and who wishes to share occupancy of their mobilehome with one other person, to be designated as the homeowner’s companion, may do so, and management shall not impose a fee for that person. For purposes of this subdivision, a homeowner may only designate one person at a time as a companion and shall not designate more than three companions in total during any calendar year, unless otherwise authorized by management. Management may refuse to allow a homeowner to share their mobilehome with a companion under this subdivision if park residency is subject to age restrictions and the proposed companion is unable or unwilling to provide documentation that the proposed companion meets those age restrictions.
(c) A homeowner may share their mobilehome with any person over 18 years of age if that person is providing live-in health care, live-in supportive care, or supervision to the homeowner. Management shall not charge a fee for the live-in caregiver but may require written confirmation from a licensed health care professional of the homeowner’s need for the care or supervision, if the need is not readily apparent or already known to management.
(d) A senior homeowner who resides in a mobilehome park that has implemented rules or regulations limiting residency based on age requirements for housing for older persons, pursuant to Section 798.76, may share their mobilehome with any person over 18 years of age if this person is a parent, sibling, child, or grandchild of the senior homeowner and requires live-in health care, live-in supportive care, or supervision. Management shall not charge a fee for this parent, sibling, child, or grandchild, but may require written confirmation from a licensed health care professional of the need for the care or supervision, if the need is not readily apparent or already known to management. As used in this section, “senior homeowner” means a homeowner who is 55 years of age or older.
(e) A guest, companion, live-in caregiver, or family member under the care of a senior homeowner, as they are described in this section, shall have no rights of tenancy in the park, and any agreement between the homeowner and the guest, companion, live-in caregiver, or family member under the care of a senior homeowner shall not change the terms and conditions of the rental agreement between management and the homeowner.
(f) A violation of the mobilehome park rules and regulations by a guest, companion, live-in caregiver, or family member under the care of a senior homeowner, as they are described in this section, shall be deemed a violation of the rules and regulations by the homeowner and subject to subdivision (d) of Section 798.56.
(g) Nothing in this section shall be interpreted to create a duty on the part of management to manage, supervise, or provide care for a homeowner’s guest, companion, live-in caregiver, or family member under the care of a senior homeowner, during that person’s stay in the mobilehome park.

SEC. 2.

 Section 798.62 is added to the Civil Code, to read:

798.62.
 (a) If a mobilehome park is destroyed as a result of a wildfire or other natural disaster, and management elects to rebuild the park at the same location, management shall offer a renewed tenancy in the rebuilt mobilehome park to all previous homeowners in accordance with the following:
(1) The offer of renewed tenancy shall be on substantially the same terms as the previous homeowner’s rental agreement that was in existence at the time of the wildfire or other natural disaster. However, management may adjust terms in the previous rental agreement to reflect costs and expenses to rebuild the park that were incurred from the time of the disaster until management received a final certificate of occupancy for all spaces in the park. These costs and expenses may include, but are not limited to, costs associated with demolition, reconstruction, and environmental remediation, as well as taxes and interest expenses.
(2) Management shall provide the previous homeowner, upon request, a statement listing the costs and expenses incurred in rebuilding the park and how the costs and expenses relate to the adjustment of terms in the rental agreement.
(3) The offer shall include an application to accept the renewed tenancy, the terms of the renewed tenancy, the deposit required to secure the renewed tenancy, and a clear statement of when the offer expires.
(4) Management shall send each previous homeowner the offer by certified mail, at least 240 days before the park is reopened, to the last postal address for the previous homeowner known to management, which may be the previous homeowner’s former address within the park. If management has an email address or telephone number for the previous homeowner, management shall additionally attempt to notify the homeowner of the offer by those means.
(5) A previous homeowner may accept the offer by submitting, within 60 days from the date the homeowner receives the offer, the application and required deposit to secure the renewed tenancy to management and sign a rental agreement. If the previous homeowner fails to accept the offer within this time period, then the previous homeowner’s right to a renewed tenancy under this section is deemed forfeited.
(6) Management shall process applications for renewed tenancy on a first-come-first-served basis.
(7) The previous homeowner shall not transfer the right to a renewed tenancy.
(b) For purposes of this section, “previous homeowner” means a homeowner with a valid tenancy in a mobilehome park at the time of a wildfire or other natural disaster.

SEC. 3.

 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 prospective purchaser of a mobilehome that will remain in the park.
(b) (1) A selling homeowner or their agent shall give notice of a sale of a mobilehome that will remain in the park to management before the close of the sale.
(2) Management shall, within 15 days, provide the seller and the prospective purchaser both of the following, in writing, upon receiving the notice required in paragraph (1):
(A) The standards that management customarily utilizes to approve a tenancy application, including the minimum reported credit score from a consumer credit reporting agency that management requires for approval.
(B) A list of all documentation that management will require to determine if the prospective purchaser will qualify for tenancy in the park.
(c) Management shall not withhold approval from a prospective purchase of a mobilehome unless any of the following apply:
(1) Management reasonably determines that, based upon the purchaser’s prior tenancies, they will not comply with the rules and regulations of the park.
(2) The purchaser does not have the financial ability to pay the rent, estimated utilities, and other charges of the park.
(3) The purchaser has committed fraud, deceit, or concealment of material facts during the application process.
(d) In determining whether the prospective purchaser has the financial ability to pay the rent and charges of the park pursuant to paragraph (2) of subdivision (c), the management may require the prospective purchaser to document the amount and source of their gross monthly income or means of financial support. However, management shall not require the prospective purchaser to submit any of the following:
(1) Documentation beyond that disclosed pursuant to subparagraph (B) of paragraph (2) of subdivision (b).
(2) Copies of any personal income tax returns.
(e) (1) Within 15 business days of receiving all of the information requested from the prospective purchaser, management shall notify the seller and the prospective purchaser, in writing, of either acceptance or rejection of the application. During this 15-day period, the prospective purchaser shall comply with management’s request, if any, for a personal interview.
(2) (A) If management rejects the application, management shall state the reason for the rejection in accordance with subdivision (c). If the rejection is based upon an alleged lack of financial ability to pay the rent, estimated utilities, and other charges of the park, as described in paragraph (2) of subdivision (c), the prospective purchaser may elect to provide additional financial or asset information to management to demonstrate their financial ability to pay the rent, estimated utilities, and other charges of the park. For purposes of this paragraph, “additional financial information” includes, but is not limited to, the following:
(i) Savings accounts.
(ii) Certificates of deposit.
(iii) Stock portfolios.
(iv) Trust interests of which the purchaser is a beneficiary.
(v) Real property.
(vi) Similar financial assets that can be liquidated or sold.
(B) If the prospective purchaser elects to provide additional financial and asset information specified in subparagraph (A), management shall consider the information together with the prospective purchaser’s gross monthly income to determine whether the purchaser has the financial ability to pay the rent, estimated utilities, and other charges of the park.
(C) If a prospective purchaser provides additional financial and asset information, management may also consider any liabilities of the prospective purchaser when making a final determination of the prospective purchaser’s ability to pay the rent, estimated utilities, and other charges of the park under this subdivision.
(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.
(g) Management may be held liable by the selling homeowner for any and all damages proximately caused by management’s failure to comply with this section.
(h) For purposes of this section:
(1) “Charges” means all charges authorized and imposed by management under Section 798.31.
(2) “Consumer credit reporting agency” has the same meaning as defined in subdivision (d) of Section 1785.3.
(3) “Credit score” has the same meaning as defined in subdivision (b) of Section 1785.15.1.

feedback