California Assembly Bill AB317 Amended / Bill

 BILL NUMBER: AB 317AMENDED BILL TEXT AMENDED IN SENATE AUGUST 7, 2012 AMENDED IN SENATE MAY 23, 2012 AMENDED IN ASSEMBLY JANUARY 23, 2012 AMENDED IN ASSEMBLY JANUARY 9, 2012 AMENDED IN ASSEMBLY JANUARY 4, 2012 AMENDED IN ASSEMBLY APRIL 25, 2011 INTRODUCED BY Assembly Member Charles Calderon FEBRUARY 9, 2011 An act to amend  Sections 798.21 and   Section  798.74.5 of the Civil Code, relating to mobilehomes. LEGISLATIVE COUNSEL'S DIGEST AB 317, as amended, Charles Calderon. Mobilehomes. Existing law, the Mobilehome Residency Law, governs tenancies in mobilehome parks, and imposes various duties on the owners of mobilehome parks and the agents and representatives authorized to act on behalf of the owners. Existing law exempts a rental agreement from any local ordinance, rule, regulation, or initiative that establishes a maximum amount that a landlord may charge a tenant for rent if a mobilehome space within a mobilehome park is not the principal residence, as defined, of the mobilehome owner.  Existing law further makes those exemptions inapplicable under certain circumstances.   Existing law requires the management of a mobilehome park to give a prospective homeowner a document containing specified   information within 2 business days of receiving a request from the prospective homeowner for an application for residency in the mobilehome park if the management has been advised that the mobilehome occupying the requested space is for sale. Under existing law, the management must also provide a copy of the rules and regulations of the park at the prospective homeowner's request.   This bill would specify factors upon which management of a mobilehome park may rely to determine whether a residence is the mobilehome owner's principal residence, including, among others, evidence that a mobilehome owner rents, leases, occupies, or has a present ownership interest in another place of residence. The bill would provide certain exceptions to these provisions, including circumstances where the mobilehome is occupied by a full-time resident who is 55 years of age or older, or who has a disability or handicap, as specified.   The bill would revise the above-described document to include language advising prospective homeowners that if they do not occupy the mobilehome as their principal residence, those homeowners may be no longer subject to any local ordinances, rules, regulations, or initiative measures limiting or restricting rent in mobilehome parks.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. 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 mobilehome owner, it shall be exempt from any ordinance, rule, regulation, or initiative measure adopted by any city, county, or city and county, that establishes a maximum amount that the landlord may charge a tenant for rent. (b) 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, except as provided in subdivision (e). (d) Before modifying the rent or other term of tenancy as a result of a review of evidence that a mobilehome is not the principal residence of a homeowner, the management shall notify the legal owner, as defined in Section 18005.8 of the Health and Safety Code, each junior lienholder, as defined in Section 18005.3 of the Health and Safety Code, and the registered owner of the mobilehome, if other than the homeowner, by United States mail, of the proposed changes and provide a copy of the documents upon which the management relied. (e) Evidence that a mobilehome is a homeowner's principal residence shall not require that the homeowner be physically present in the mobilehome continuously or at all times. However, the evidence must show that the mobilehome is the homeowner's domicile and permanent residence. Evidence that the mobilehome is not the homeowner's principal residence shall include, but is not limited to, the following factors, which shall be weighed in light of the totality of the circumstances: (1) The homeowner does not carry on basic living activities at the mobilehome for extended periods of time, as demonstrated by a lack of utility usage. (2) Another property or mobilehome is listed as the homeowner's place of residence on any motor vehicle registration, driver's license, voter registration, or with any other public agency, including federal, state, and local taxing authorities. (3) The bill for utilities for the mobilehome is mailed to a different residential property. (4) The homeowner's personal possessions are not located in the mobilehome. (5) A homeowner files a tax exemption or renter's credit for a different property or the homeowner is the owner of record of a different residential property. This paragraph shall not apply to homeowners who established tenancy prior to January 1, 2013. (6) The homeowner is a corporation or is otherwise not a natural person. (7) The homeowner is absent from the unit for extended periods of time, other than for military service, hospitalization, vacation, family or friend emergency or care, Peace Corps service, academic sabbatical, or other reasonable temporary or seasonal periods of absence, such as travel necessitated by employment or education. (8) The mobilehome is used primarily for storage, entertaining, or as an office. (9) The mobilehome has been subleased, except as provided by Section 798.23.5 for medical emergencies or medical treatment. (10) Possession of the mobilehome has been transferred without the approval of the management pursuant to Sections 798.74 and 798.75. (11) The principal residence of the homeowner is located outside the state. (f) 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 during the 90-day period that reasonably establishes that the information provided by management was incorrect or that the homeowner is not the same person identified in the documents. This subdivision shall apply regardless of a change in the homeowner's exemption status, if applicable, or to the listing of the mobilehome for sale after service of the notice described in subdivision (d). (g) This section does not apply under any of the following conditions: (1) The mobilehome is the homeowner's principal residence. (2) The space is subleased pursuant to Section 798.23.5. (3) The mobilehome is occupied by a full-time resident who is 55 years of age or older and the mobilehome is owned by a child of that resident. (4) The mobilehome is occupied by a full-time resident who has a disability or handicap and the mobilehome is owned by a parent or guardian of that resident. (5) Ownership of the mobilehome is transferred, upon the death of the registered owner, to an heir, joint tenant, or personal representative who, pursuant to Section 798.7, is approved for tenancy and uses the mobilehome as his or her principal residence. (6) Management elects to apply an exemption or right set forth in an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that a landlord may charge a tenant for rent. (7) 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, and management has been given notice thereof, after service of the notice described in subdivision (d). 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. This paragraph shall apply as long as the mobilehome remains vacant and unoccupied, but if the mobilehome is occupied, this paragraph shall only apply after a reasonable time for sale of the mobilehome has been provided, not to exceed 120 days after the date of service of the notice described in subdivision (d). (8) 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 1.  Section 798.74.5 of the Civil Code is amended to read: 798.74.5. (a) Within two business days of receiving a request from a prospective homeowner for an application for residency for a specific space within a mobilehome park, if the management has been advised that the mobilehome occupying that space is for sale, the management shall give the prospective homeowner a separate document in at least 12-point type entitled "INFORMATION FOR PROSPECTIVE HOMEOWNERS," which includes the following statements: "As a prospective homeowner you are being provided with certain information you should know prior to applying for tenancy in a mobilehome park. This is not meant to be a complete list of information. Owning a home in a mobilehome park incorporates the dual role of "homeowner" (the owner of the home) and park resident or tenant (also called a "homeowner" in the Mobilehome Residency Law). As a homeowner under the Mobilehome Residency Law, you will be responsible for paying the amount necessary to rent the space for your home, in addition to other fees and charges described below. You must also follow certain rules and regulations to reside in the park. If you are approved for tenancy, and your tenancy commences within the next 30 days, your beginning monthly rent will be $____ (must be completed by the management) for space number ____ (must be completed by the management). Additional information regarding future rent or fee increases may also be provided. In addition to the monthly rent, you will be obligated to pay to the park the following additional fees and charges listed below. Other fees or charges may apply depending upon your specific requests. Metered utility charges are based on use. _________________________________________________ _________________________________________________ (Management shall describe the fee or charge and a good faith estimate of each fee or charge.) Some spaces are governed by an ordinance, rule, regulation, or initiative measure that limits or restricts rents in mobilehome parks. These laws are commonly known as "rent control." Prospective purchasers who do not occupy the mobilehome as their principal residence may be subject to rent levels which are not governed by these laws. Long-term leases specify rent increases during the term of the lease. By signing a rental agreement or lease for a term of more than one year, you may be removing your rental space from a local rent control ordinance during the term, or any extension, of the lease if a local rent control ordinance is in effect for the area in which the space is located. A fully executed lease or rental agreement, or a statement signed by the park's management and by you stating that you and the management have agreed to the terms and conditions of a rental agreement, is required to complete the sale or escrow process of the home. You have no rights to tenancy without a properly executed lease or agreement or that statement. (Civil Code Section 798.75) If the management collects a fee or charge from you in order to obtain a financial report or credit rating, the full amount of the fee or charge will be either credited toward your first month's rent or, if you are rejected for any reason, refunded to you. However, if you are approved by management, but, for whatever reason, you elect not to purchase the mobilehome, the management may retain the fee to defray its administrative costs. (Civil Code Section 798.74) We encourage you to request from management a copy of the lease or rental agreement, the park's rules and regulations, and a copy of the Mobilehome Residency Law. Upon request, park management will provide you a copy of each document. We urge you to read these documents before making the decision that you want to become a mobilehome park resident. Dated: _______________________ Signature of Park Manager: __________________ Acknowledge Receipt by Prospective Homeowner: _'' (b) Management shall provide a prospective homeowner, upon his or her request, with a copy of the rules and regulations of the park and with a copy of this chapter.