Bill Text: CA SB722 | 2017-2018 | Regular Session | Amended

California Senate Bill 722 (Prior Session Legislation)

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

Bill Title: Mobilehomes: principal residences: rent control.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2018-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB722 Detail]

Download: California-2017-SB722-Amended.html

Amended IN Senate April 18, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 722

Introduced by Senator Moorlach

February 17, 2017

An act to amend Section 798.21 of of, and to add Section 798.21.5 to, the Civil Code, relating to mobilehome park residency.

LEGISLATIVE COUNSEL'S DIGEST

SB 722, as amended, Moorlach. Mobilehomes: principal residences: exceptions.

Existing

(1) Existing law regulates the terms and conditions of mobilehome park residencies. Existing law exempts certain mobilehome park rental agreements from any ordinance, rule, regulation, or initiative measure that establishes a maximum amount that the landlord may charge a tenant for rent, commonly referred to as rent control. Existing law specifically exempts from rent control a mobilehome space that is not the principal residence of the homeowner and that the homeowner has not rented to another party. Existing law deems a mobilehome to be the principal residence of a homeowner unless a review of state or county records demonstrates that the homeowner is receiving a homeowner’s exemption for another property or mobilehome in this state or unless review of public records reasonably demonstrates that the principal residence is out of state.

This bill would eliminate, from the exemption to rent control on mobilehome spaces that are not the principal residence of the homeowner, as described above, the qualification that the homeowner shall not have rented the space to another party. The bill would establish a new exception to a mobilehome being deemed the principal residence of the homeowner, which would be based on relevant evidence to the contrary, as specified. make a mobilehome rental agreement entered into on and after January 1, 2018, exempt from rent control if management determines that the homeowner executing the rental agreement is the owner of another home, condominium, duplex, or other residence and management also determines that the homeowner is not excepted pursuant to specified criteria. The bill would except homeowners from the application of these provisions if management determines that the mobilehome is the homeowner’s sole residence, the homeowner sublets the mobilehome because of medical hardship, the mobilehome is transferred at death, or the mobilehome is actively held out for sale, as specified. The bill would require that the status of the mobilehome as a sole residence be determined in light of the totality of the circumstances and would specify a nonexclusive list of potential evidence in this regard.

The bill would prescribe notice requirements for management to apply if the terms of tenancies are to be modified after being found exempt from rent control. After a determination that a tenancy is exempt because it is not the homeowner’s sole residence, the bill would authorize a homeowner to provide management an affidavit, signed under penalty of perjury, that he or she intends to occupy the mobilehome as his or her sole residence, and upon provision of the affidavit, rent control would resume, provided that management would be authorized to adjust the base rental rate for purposes of rent control, as specified. By expanding the definition of the crime of perjury, this bill would impose a state-mandated local program. The bill would specify also that ~~various~~ certain provisions are not to be construed to authorize a homeowner to change the homeowner’s exemption status of any other property or mobilehome owned by the homeowner.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

SECTION 1.Section 798.21 of the Civil Code is amended to read:
798.21.
(a)Notwithstanding Section 798.17, if a mobilehome space within a mobilehome park is not the principal residence of the homeowner, it shall be exempt from any ordinance, rule, regulation, or initiative measure adopted by any city, county, or city and county, which establishes a maximum amount that the landlord may charge a tenant for rent.
(b)Nothing in this section is intended to require any homeowner to disclose information concerning his or her personal finances. Nothing in this section shall be construed to authorize management to gain access to any records which would otherwise be confidential or privileged.
~~(c)For purposes of this section, a mobilehome shall be deemed to be the principal residence of the homeowner, unless any of the following is true:~~
~~(1)A review of state or county records demonstrates that the homeowner is receiving a homeowner’s exemption for another property or mobilehome in this state.~~
~~(2)A review of public records reasonably demonstrates that the principal residence of the homeowner is out of state.~~
~~(3)Relevant evidence establishes that the mobilehome is not the principal residence of the homeowner, including, but not limited to, any of the following:~~
(A)Claiming a homeowner exemption on another property or abandoning or releasing a homeowner exemption on another property without a change in circumstances disqualifying the exemption on the other property.
~~(B)Financing a property other than the mobilehome as an owner-occupied dwelling.~~
~~(C)Sending mail to, or forwarding it from, an address other than the mobilehome.~~
~~(D)Registering a vehicle at an address other than the mobilehome.~~
~~(E)Registering to vote at an address other than the mobilehome.~~
~~(F)A California driver’s license that uses an address other than the mobilehome.~~
~~(G)A bank account that uses an address other than the mobilehome.~~
~~(H)Irregular, seasonal, holiday, or weekend occupancy of mobilehome.~~
~~(I)Location of place of employment, office, or business.~~
~~(J)Subleasing of mobilehome.~~
(d)Before modifying the rent or other terms of tenancy as a result of a review of records, as described in subdivision (c), the management shall notify the homeowner, in writing, of the proposed changes and provide the homeowner with a copy of the documents upon which management relied.
(e)The homeowner shall have 90 days from the date the notice described in subdivision (d) is mailed to review and respond to the notice. Management may not modify the rent or other terms of tenancy prior to the expiration of the 90-day period or prior to responding, in writing, to information provided by the homeowner. Management may not modify the rent or other terms of tenancy if the homeowner provides documentation reasonably establishing that the information provided by management is incorrect or that the homeowner is not the same person identified in the documents.
~~(f)This section does not apply under any of the following conditions:~~
(1)The homeowner is unable to rent or lease the mobilehome because the owner or management of the mobilehome park in which the mobilehome is located does not permit, or the rental agreement limits or prohibits, the assignment of the mobilehome or the subletting of the park space.
(2)The mobilehome is being actively held available for sale by the homeowner, or pursuant to a listing agreement with a real estate broker licensed pursuant to Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, or a mobilehome dealer, as defined in Section 18002.6 of the Health and Safety Code. A homeowner, real estate broker, or mobilehome dealer attempting to sell a mobilehome shall actively market and advertise the mobilehome for sale in good faith to bona fide purchasers for value in order to remain exempt pursuant to this subdivision.
(3)The legal owner has taken possession or ownership, or both, of the mobilehome from a registered owner through either a surrender of ownership interest by the registered owner or a foreclosure proceeding.
~~(g)Nothing in this section shall be construed to authorize a homeowner to change the homeowner’s exemption status of any other property or mobilehome owned by the homeowner.~~

SECTION 1.

Section 798.21 of the Civil Code is amended to read:

798.21.

(a) Notwithstanding Section 798.17, if a mobilehome space within a mobilehome park is not the principal residence of the homeowner and the homeowner has not rented the mobilehome to another party, it shall be exempt from any ordinance, rule, regulation, or initiative measure adopted by any city, county, or city and county, which establishes a maximum amount that the landlord may charge a tenant for rent.

(b) Nothing in this section is intended to require any homeowner to disclose information concerning his or her personal finances. Nothing in this section shall be construed to authorize management to gain access to any records which would otherwise be confidential or privileged.

(c) For purposes of this section, a mobilehome shall be deemed to be the principal residence of the homeowner, unless a review of state or county records demonstrates that the homeowner is receiving a homeowner’s exemption for another property or mobilehome in this state, or unless a review of public records reasonably demonstrates that the principal residence of the homeowner is out of state.

(d) Before modifying the rent or other terms of tenancy as a result of a review of records, as described in subdivision (c), the management shall notify the homeowner, in writing, of the proposed changes and provide the homeowner with a copy of the documents upon which management relied.

(e) The homeowner shall have 90 days from the date the notice described in subdivision (d) is mailed to review and respond to the notice. Management may not modify the rent or other terms of tenancy prior to the expiration of the 90-day period or prior to responding, in writing, to information provided by the homeowner. Management may not modify the rent or other terms of tenancy if the homeowner provides documentation reasonably establishing that the information provided by management is incorrect or that the homeowner is not the same person identified in the documents. However, nothing in this ~~subdivision~~ section shall be construed to authorize the homeowner to change the homeowner’s exemption status of the other property or mobilehome owned by the homeowner.

(f) This section does not apply under any of the following conditions:

(1) The homeowner is unable to rent or lease the mobilehome because the owner or management of the mobilehome park in which the mobilehome is located does not permit, or the rental agreement limits or prohibits, the assignment of the mobilehome or the subletting of the park space.

(2) The mobilehome is being actively held available for sale by the homeowner, or pursuant to a listing agreement with a real estate broker licensed pursuant to Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, or a mobilehome dealer, as defined in Section 18002.6 of the Health and Safety Code. A homeowner, real estate broker, or mobilehome dealer attempting to sell a mobilehome shall actively market and advertise the mobilehome for sale in good faith to bona fide purchasers for value in order to remain exempt pursuant to this subdivision.

(3) The legal owner has taken possession or ownership, or both, of the mobilehome from a registered owner through either a surrender of ownership interest by the registered owner or a foreclosure proceeding.

SEC. 2.

Section 798.21.5 is added to the Civil Code, to read:

798.21.5.
(a) Notwithstanding Sections 798.17 and 798.21, a rental agreement entered into on and after January 1, 2018, shall be subject to the requirements of this section. A rental agreement subject to the requirements of this section shall be exempt from any ordinance, rule, regulation, or initiative measure adopted by a city, county, or city and county that establishes a maximum amount that the landlord may charge a tenant for rent, if both of the following conditions exist:
(1) The homeowner executing the rental agreement is the owner of another home, condominium, duplex, or other residence.
(2) The management determines that the homeowner executing the rental agreement is not excepted pursuant to subdivision (c).
(b) If a rental agreement is exempt from any ordinance, rule, regulation, or initiative measure adopted by a city, county, or city and county that establishes a maximum amount that the landlord may charge a tenant for rent under subdivision (a), the management may modify the rent or other terms of the tenancy. Management shall provide the homeowner with written notice at least 90 days in advance of the effective date of the proposed modification. The notice shall include copies of the evidence upon which the determination made pursuant to subdivision (a) is based. A homeowner shall have 30 days from the date the notice is mailed to review and dispute the management’s findings. Communications disputing management’s findings shall be in writing.
(c) A homeowner shall be excepted for purposes of paragraph (2) of subdivision (a) if one or more of the following apply:
(1) The mobilehome is the sole residence of the homeowner. For purposes of this paragraph, a homeowner includes a person who has a full-time tenancy in a mobilehome park under a rental agreement, a senior who is a full-time resident of a mobilehome owned by a child of the senior, and a child with a disability who is a full-time resident of a mobilehome owned by a parent or guardian of the child. Whether a mobilehome is the sole residence of the homeowner shall be determined by management in light of the totality of the circumstances. Evidence of residence may include, but is not limited to, the following:
(A) The homeowner rents, leases, occupies, or has a present ownership interest in another place of residence. An ownership interest in a place of residence solely and exclusively occupied by the homeowner’s child or parent and his or her immediate family shall not serve as evidence that the mobilehome is not the sole residence of the homeowner.
(B) Another place of residence appears as a matter of public record or in other evidence obtained by management.
(C) Monthly statements are mailed to, or payments are made from, a place of residence other than the tenancy at issue.
(D) The homeowner is regularly absent from the mobilehome for extended periods of time, other than for military service, hospitalization, vacation, family or friend emergency care, or other reasonable temporary or seasonal periods of absence, such as travel necessitated by employment or education.
(E) The mobilehome is used primarily for vacationing, storage, or business.
(F) The mobilehome has been subleased, or possession of the mobilehome has been transferred, without management’s approval, as provided in Sections 798.74 and 798.75.
(G) A review of state or county records demonstrates that the homeowner is receiving a homeowner’s exemption for another property or mobilehome.
(2) The homeowner subleases his or her home or space as a result of a medical hardship pursuant to Section 798.23.5.
(3) Ownership of the mobilehome is transferred, upon the death of the homeowner, to an heir, joint tenant, or personal representative consistent with Section 798.78.
(4) The mobilehome is being actively held available for sale by the homeowner, or pursuant to a listing agreement with a real estate broker licensed pursuant to Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, or a mobilehome dealer, as defined in Section 18002.6 of the Health and Safety Code. A homeowner, real estate broker, or mobilehome dealer attempting to sell a mobilehome shall actively market and advertise the mobilehome for sale in good faith to bona fide purchasers for value in order to remain excepted pursuant to this paragraph. This paragraph shall apply as long as the mobilehome remains vacant and unoccupied. If the mobilehome is occupied, the exception provided by this paragraph shall apply only for a reasonable time sufficient to provide for sale of the mobilehome, which shall not exceed 120 days after the date of service of the notice described in subdivision (b).
(d) After a determination that a tenancy is exempt under subdivision (a) because it is not the sole residence of the homeowner, a homeowner may provide management an affidavit, signed under penalty of perjury, that he or she intends to occupy the mobilehome as his or her sole residence. Upon provision of the affidavit, the application of an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that the landlord may charge a tenant for rent shall resume, provided that the most recent rental rate charged to the homeowner after it was found to be exempt shall be the base rental rate.
(e) This section shall not be construed to authorize management to gain access to any record that would otherwise be confidential or privileged.

SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.