BILL NUMBER: AB 225AMENDED BILL TEXT AMENDED IN SENATE JUNE 18, 2014 AMENDED IN ASSEMBLY MAY 9, 2013 AMENDED IN ASSEMBLY APRIL 18, 2013 AMENDED IN ASSEMBLY APRIL 9, 2013 AMENDED IN ASSEMBLY APRIL 1, 2013 INTRODUCED BY Assembly Member Nestande Members Chau and Nestande ( Principal coauthor: Assembly Member Medina ) ( Coauthors: Assembly Members Garcia and Linder ) FEBRUARY 4, 2013 An act to add Article 7 (commencing with Section 21290) to Chapter 1 of Division 11 of the Vehicle Code, relating to vehicles amend Sections 18114.1, 50781, 50782, 50784, 50785, and 50786 of, and to add Sections 50784.5 and 50784.7 to, the Health and Safety Code, relating to mobilehomes, and making an appropriation therefor . LEGISLATIVE COUNSEL'S DIGEST AB 225, as amended, Nestande Chau . Medium-speed electric vehicles. Mobilehomes: loans. Existing law defines "low-speed vehicle" as a motor vehicle, other than a motor truck, with 4 wheels that is capable of a minimum speed of 20 miles per hour and a maximum speed of 25 miles per hour on a paved level surface and that has a gross vehicle weight rating of less than 3,000 pounds. Existing law imposes certain restrictions on the use of low-speed vehicles on public streets and highways, and generally requires an operator of a low-speed vehicle to have a driver's license. A violation of these provisions is a crime. This bill would authorize the operation of a medium-speed electric vehicle, as defined, at speeds of no more than 45 miles per hour on a roadway with a speed limit that does not exceed 45 miles per hour. The bill would require a medium-speed electric vehicle to meet certain safety requirements, including specified Federal Motor Vehicle Safety Standards. The bill would make, subject to exceptions, a medium-speed electric vehicle subject to all the laws applicable to a motor vehicle, and the driver of a medium-speed electric vehicle subject to all the laws applicable to the driver of a motor vehicle or other vehicle, as specified. Because it is unlawful and constitutes an infraction for any person to violate, or fail to comply with any provision of the Vehicle Code, this bill would impose a state-mandated local program by creating a new crime. 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. Existing law authorizes the Department of Housing and Community Development to make loans from the Mobilehome Park Purchase Fund, a continuously appropriated fund, to qualified mobilehome park residents, resident organizations, and nonprofit housing sponsors or local public entities to finance conversion of the parks to resident ownership to make monthly housing costs more affordable. Existing law also requires the provision of specified information to the department before making loans for mobilehome park conversions. This bill would change the name of the fund to the Mobilehome Park Rehabilitation and Purchase Fund and would authorize the department to provide loans from the fund to a qualified nonprofit housing sponsor or a local public entity to acquire a mobilehome park to bring parks into compliance with all applicable health and safety standards and to maintain monthly housing costs in the park at an affordable level if specified criteria are met. The bill would require the department to consider specified criteria in determining eligibility for, and the amount of, loans made from the fund. The bill would also authorize the department to make loans from the Mobilehome Park Rehabilitation and Purchase Fund to enable specified homeowners in mobilehome parks to address any outstanding violations of the Mobilehome Parks Act. The bill would also make conforming changes. By expanding the authorization to use continuously appropriated funds, this bill would make an appropriation. Vote: majority 2/3 . Appropriation: no yes . Fiscal committee: yes. State-mandated local program: yes no . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 18114.1 of the Health and Safety Code is amended to read: 18114.1. (a) In addition to the annual registration fee required by Section 18114, an annual fee of five dollars ($5) shall be paid to the department at the time of registration or renewal for each transportable section of a manufactured home or mobilehome registered pursuant to this part. All revenues derived from this fee shall be deposited in the Mobilehome Park Rehabilitation and Purchase Fund provided for in Chapter 11 (commencing with Section 50780) of Part 2 of Division 31. (b) Any transportable section of a manufactured home or mobilehome registered pursuant to this part and located on a private parcel owned by the registered owner of the manufactured home or mobilehome shall be exempt from the fee imposed by subdivision (a), if the owner provides documentation or a written statement, signed under penalty of perjury, which establishes to the satisfaction of the department that the manufactured home or mobilehome is located on a private parcel owned by the registered owner of the manufactured home or mobilehome. (c) Pursuant to subdivision (b), upon renewal of registration in 1989, or thereafter, once the registered owner provides documentation or a written statement to the department to establish the exemption, the department shall not require the owner to establish the exemption in each subsequent year upon renewal, unless the department receives evidence that the manufactured home or mobilehome is no longer located on a private parcel owned by the registered owner of the home. Renewal forms for registered owners of manufactured homes or mobilehomes who have established the exemption shall not reflect or include the fee required pursuant to subdivision (a). SEC. 2. Section 50781 of the Health and Safety Code is amended to read: 50781. Unless the context otherwise requires, the following definitions given in this section shall control construction of this chapter: (a) "Affordable" means that, where feasible, low-income residents should not pay more than 30 percent of their monthly income for housing costs. (b) "Conversion costs" includes the cost of acquiring the mobilehome park, the costs of planning and processing the conversion, the costs of any needed repairs or rehabilitation, and any expenditures required by a governmental agency or lender for the project. (c) "Department" means the Department of Housing and Community Development. (d) "Fund" means the Mobilehome Park Rehabilitation and Purchase Fund created pursuant to Section 50782. (e) "Housing costs" means the total cost of owning, occupying, and maintaining a mobilehome and a lot or space in a mobilehome park. The department's regulations shall specify the factors included in these costs and may, for the purposes of calculating affordability, establish reasonable allowances. (f) "Individual interest in a mobilehome park" means any interest that is fee ownership or a lesser interest that entitles the holder to occupy a lot or space in a mobilehome park for a period of not less than either 15 years or the life of the holder. Individual interests in a mobilehome park include, but are not limited to, the following: (1) Ownership of a lot or space in a mobilehome park or subdivision. (2) A membership or shares in a stock cooperative, as defined in Section 11003.2 of the Business and Professions Code, or a limited equity housing cooperative, as defined in Section 33007.5 of this code. (3) Membership in a nonprofit mutual benefit corporation that owns, operates, or owns and operates the mobilehome park. (g) "Low-income resident" means an individual or household that is a lower income household, as defined in Section 50079.5. However, personal assets shall not be considered in the calculation of income, except to the extent that they actually generate income. (h) "Low-income spaces" means those spaces in a mobilehome park operated by a resident organization, a qualified nonprofit housing sponsor, or a local public entity that are occupied by low-income residents. (i) "Mobilehome park" means a mobilehome park, as defined in Section 18214, or a manufactured home subdivision created by the conversion of a mobilehome park, as defined in Section 18214, including a senior park, to resident ownership or ownership by a qualified nonprofit housing sponsor or local public entity. (j) "Program" means the Mobilehome Park Resident Ownership Program. (k) "Qualified nonprofit housing sponsor" means a nonprofit public benefit corporation, as defined in Part 2 (commencing with Section 5110) of Division 2 of the Corporations Code, that (1) has received its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, (2) is not affiliated with or controlled by a for-profit organization or individual, (3) has extensive experience with the development and operation of publicly subsidized affordable housing, (4) the department determines is qualified by experience and capability to own and operate a mobilehome park that provides housing affordable to low-income households, and (5) has formal arrangements for ensuring resident participation or input in the management of the park that may include, but not be limited to, membership on the board of directors. "Qualified nonprofit housing sponsor" also means a limited partnership where all of the general partners are nonprofit mutual or public benefit corporations that meet the requirements of paragraphs (1) to (5), inclusive. ( l ) "Resident organization" means a group of mobilehome park residents who have formed a nonprofit corporation, cooperative corporation, or other entity or organization for the purpose of acquiring the mobilehome park in which they reside and converting the mobilehome park to resident ownership. The membership of a resident organization shall include at least two-thirds of the households residing in the mobilehome park, or in each park of a combination of parks where the residents of two or more parks combine to form a single resident organization. The two-thirds of households in the resident organization at the time of funding the park need not be the same households that were residing in the park when the application for assistance was submitted to the department. A household's membership in the resident organization when the application was submitted to the department shall not be a requirement for that household to receive a loan or assistance under this chapter. (m) "Resident ownership" means, depending on the context, either the ownership by a resident organization of an interest in a mobilehome park that entitles the resident organization to control the operations of the mobilehome park for a term of no less than 15 years, or the ownership of individual interests in a mobilehome park, or both. SEC. 3. Section 50782 of the Health and Safety Code is amended to read: 50782. (a) The Mobilehome Park Rehabilitation and Purchase Fund is hereby created in the State Treasury and, notwithstanding Section 13340 of the Government Code or any other law, is continuously appropriated to the department for the purpose of providing loans pursuant to this chapter and for related administrative costs of the department. Notwithstanding Section 16305.7 of the Government Code, any moneys received by the department pursuant to this chapter, and any other sources, repayments, interest, or new appropriations, shall be deposited in the fund. Except as described in subdivision (b), moneys in the fund shall not be subject to transfer to any other fund pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. The department may require the transfer of moneys in the fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. Notwithstanding Section 16305.7 of the Government Code, all interest, dividends, and pecuniary gains from the investments shall accrue to the fund. (b) Notwithstanding any other law, the Controller may use the moneys in the Mobilehome Park Rehabilitation and Purchase Fund for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. However, interest shall be paid on all moneys loaned to the General Fund from the Mobilehome Park Purchase Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the Mobilehome Park Purchase Fund fund was created. SEC. 4. Section 50784 of the Health and Safety Code is amended to read: 50784. (a) The department may make loans from the fund to (1) individual low-income residents of mobilehome parks that have converted to resident ownership, (2) ownership or resident organizations that have converted or plan to convert a mobilehome park to resident ownership, or (3) qualified nonprofit housing sponsors or local public entities that plan to acquire a mobilehome park, provided that no less than 30 percent of the spaces in the park are for occupancy by manufactured homes owned by low-income residents ownership . The purpose of providing loans pursuant to this section is to reduce the monthly housing costs for low-income residents to an affordable level. (b) (1) Any mobilehome park purchased by a local public entity with a loan pursuant to this section shall be transferred to a nonprofit housing sponsor or resident organization that has converted, or plans to convert, the park to resident ownership no later than three years from the date of loan closing, with all obligations under the loan assumed by the nonprofit organization or resident organization. (2) If a local public entity has made a good faith effort, but has not been able, to transfer the park by the end of the three-year period, the entity may apply to the department for an additional three-year extension. Upon a determination by the department that the local public entity has made a good faith effort to transfer the park in accordance with paragraph (1), it shall have an additional three years from the expiration date of the first three-year period to consummate the transfer. The three-year extension shall only be granted once by the department for each loan to a local public entity. (3) If a local public entity fails to make a good faith effort to transfer the park within the first three-year period, as determined by the department, or fails to transfer the park by the expiration date of the extended three-year period, it shall repay the loan in full to the department. (c) (b) Loans provided pursuant to this section shall be for a term of no more than 30 40 years and shall bear interest at a rate of 3 percent per annum, unless the department finds that a lower interest rate is necessary and will not jeopardize the financial stability of the fund. (d) (c) The department may establish flexible repayment terms for loans provided pursuant to this section if the terms are necessary to reduce the monthly housing costs for low-income residents to an affordable level, and do not represent an unacceptable risk to the security of the fund. Flexible repayment terms may include, but are not limited to, graduated payment schedules with negative amortization. (e) (d) Loans provided to low-income residents pursuant to this section shall be for the minimum amount necessary to reduce the borrower's monthly housing costs to an affordable level. All of the following shall apply to loans to finance individual interests pursuant to this section: (1) To the extent possible, loan amounts shall not exceed 50 percent of the acquisition costs of the individual interests in the mobilehome parks. However, the loan amounts may be for up to 100 percent of the acquisition costs of the individual interests in the mobilehome parks when approved by the department. (2) The department may grant approval to exceed 50 percent of the acquisition costs of the individual interests only if both of the following are demonstrated: (A) That the low-income resident has made an effort to secure additional funding from other sources and these funds are not available. (B) That the low-income resident would be unable to purchase an individual interest without a waiver of the 50-percent financing limitation. (3) The total indebtedness of the loan provided pursuant to this section plus any senior debt upon individual interests may not exceed 100 115 percent of the value of the collateral securing the loan, plus the amount of costs incidentally, but directly, related to the acquisition. (f) (e) Loans provided to resident organizations, qualified nonprofit housing sponsors, or local public entities organizations pursuant to this section shall be for the minimum amount necessary to reduce the monthly housing costs of low-income residents to an affordable level. All of the following shall apply to loans made to resident organizations, qualified nonprofit housing sponsors, or local public entities organizations pursuant to this section: (1) To the extent possible, loan amounts shall not exceed 50 percent of the conversion costs attributable to the low-income spaces. However, the loan amounts may be for up to 95 percent of the conversion costs attributable to the low-income spaces when approved by the department. (2) The department may grant approval to exceed 50 percent of the conversion costs attributable to low-income spaces only if both of the following are demonstrated: (A) That the applicant has made an effort to secure additional funds from other sources and these funds are not available. (B) That the project would not be feasible as determined by the department without a waiver of the 50-percent financing limitation. (3) The total secured debt in a superior position to the department's loan plus the department's loan shall not exceed the value of the collateral securing the loan plus the amount of costs incidentally, but directly, related to the acquisition and, if applicable, rehabilitation of the park. (g) (f) Funds provided pursuant to this section shall not be used to (1) assist residents who are not of low income, (2) income or to reduce monthly housing costs for low-income residents to less than 30 percent of their monthly income, or (3) facilitate the purchase of a park by a qualified nonprofit corporation or local public entity from a public entity that had acquired the park prior to the commitment of the loan from the program income . (h) (g) Subject to the restrictions of this subdivision, funds provided pursuant to this section may be used to finance the costs of relocating a mobilehome park to a more suitable site within the same jurisdiction if the department determines that the cost of the relocation, including any and all relocation costs to the affected households, is a more prudent expenditure of funds than the costs of needed or repetitive repairs to the existing park. Funds provided pursuant to this section shall not be used to relieve a park owner of any responsibility for covering the costs of mitigating the impacts of a park closure as may be provided for by local ordinance or pursuant to Section 65863.7 or 66427.4 of the Government Code. SEC. 5. Section 50784.5 is added to the Health and Safety Code , to read: 50784.5. (a) The department may make loans from the Mobilehome Park Rehabilitation and Purchase Fund to a qualified nonprofit housing sponsor or a local public entity to acquire a mobilehome park, provided that no less than 30 percent of residents at the time of acquisition are low income. The purpose of providing loans pursuant to this section is to bring parks into compliance with all applicable health and safety standards and to maintain monthly housing costs in the park at an affordable level. (b) Loans may be provided pursuant to this section where either of the following applies: (1) The park to be acquired has significant outstanding violations of the Mobilehome Parks Act (part 2.1 (commencing with Section 18200)) that threaten the long-term viability of the park and that will be remedied by the purchaser. (2) The department determines that the acquisition of the park will have a substantial benefit to low- and moderate-income homeowners and that the purchaser will maintain rents at levels affordable to lower-income households. (c) (1) Any mobilehome park purchased by a local public entity with a loan pursuant to this section shall be transferred to a qualified nonprofit housing sponsor or to a resident organization that plans to convert the park to resident ownership no later than three years from the date of loan closing, with all obligations under the loan assumed by the nonprofit organization or resident organization. (2) If a local public entity has made a good faith effort, but has not been able, to transfer the park by the end of the three-year period, the entity may apply to the department for an additional three-year extension. Upon a determination by the department that the local public entity has made a good faith effort to transfer the park in accordance with paragraph (1), it shall have an additional three years from the expiration date of the first three-year period to consummate the transfer. The three-year extension shall only be granted once by the department for each loan to a local public entity. (3) If a local public entity fails to make a good faith effort to transfer the park within the first three-year period, as determined by the department, or fails to transfer the park by the expiration date of the extended three-year period, it shall repay the loan in full to the department. (d) All of the following shall apply to loans provided pursuant to this section: (1) Loans shall be for a term of no more than 40 years and shall bear interest at a rate of 3 percent per annum unless the department finds that a lower interest rate is necessary and will not jeopardize the financial stability of the fund. (2) The department may establish flexible repayment terms for loans provided pursuant to this section if the terms do not represent an unacceptable risk to the security of the fund. Flexible repayment terms may include, but are not limited to, graduated payment schedules with negative amortization. (3) Loans shall be for the minimum amount necessary to bring the park into compliance with all applicable health and safety standards and to maintain the monthly housing costs of lower-income residents at an affordable level. (4) The total secured debt in a superior position to the department's loan plus the department's loan shall not exceed the value of the collateral securing the loan plus the amount of costs incidentally, but directly, related to the acquisition and rehabilitation of the park. (e) In determining the eligibility for and amount of loans pursuant to this section, the department shall take into consideration, among other factors, all of the following: (1) The current health and safety conditions in the park and the likelihood that conditions would be remedied without the loan. (2) The degree to which the loan will benefit lower-income homeowners. (3) The age of the park and the age of the infrastructure that will be rehabilitated with the loan proceeds. (f) Before providing financing pursuant to this section, the department shall require provision of, and approve, at least all of the following: (1) Verification that either no park residents shall be involuntarily displaced as a result of the purchase or that the impacts of the displacement shall be mitigated as required under state and local law. For purposes of this requirement, compliance with Section 66427.5 of the Government Code shall be conclusively presumed to have mitigated economic displacement. (2) Projected costs and sources of funds for all purchase and rehabilitation activities. (3) Projected operating budget for the park after the purchase. (4) A management plan for the operation of the park. SEC. 6. Section 50784.7 is added to the Health and Safety Code , to read: 50784.7. The department may make loans from the Mobilehome Park Rehabilitation and Purchase Fund to enable homeowners in parks that received loans pursuant to Sections 50783, 50784, or 50784.5 to address any outstanding violations of the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200)), make needed repairs, or make accessibility-related upgrades. SEC. 7. Section 50785 of the Health and Safety Code is amended to read: 50785. (a) In determining the eligibility for and amount of loans pursuant to Sections 50783 and 50784, this chapter, the department shall take into consideration, among other factors, all of the following: (1) The reasonableness of the conversion costs relating to repairs, rehabilitation, construction, or other costs. (2) Any administrative and security factors affecting the department's program operation and administration. (3) Whether or not the projects complement the implementation of a local housing program to preserve or increase the supply of housing for persons and families of low or moderate income. (4) Whether or not state funds are utilized in the most efficient and effective manner. (5) In the case of a loan to a qualified nonprofit housing sponsor or to a local public entity, evidence of resident participation in the conversion and management of the park, in the form of either resident participation on the board of directors of the entity that acquires ownership of the park, or the establishment of, and consultation with, a permanent resident advisory board. (b) To the extent consistent with requests for assistance, the department shall allocate funds available for the purposes of this chapter throughout the state in accordance with identified housing needs, including seeking to allocate not less than 20 percent to rural areas. SEC. 8. Section 50786 of the Health and Safety Code is amended to read: 50786. (a) The department shall adopt regulations for the administration and implementation of this chapter. (b) The department shall obtain the best available security for loans made pursuant to this chapter. The security may include a note, deed of trust, assignment of lease, or other form of security on real or personal property that the department determines is adequate to protect the interests of the state. To the extent applicable, these documents and any regulatory provisions shall be recorded or referenced in a recorded document in the office of the county recorder of the county in which the mobilehome park is located. (c) The degree of continuing regulatory control with respect to park operations and resident loans exercised by the department in making loans pursuant to this chapter shall be commensurate with the level of financial assistance provided and in all cases shall be adequate to protect the state's security interest and ensure the accomplishment of the purposes of the program authorized by this chapter. The regulatory requirements shall be set forth in a regulatory agreement, deed of trust, or other lien, and any violation of these requirements shall be considered a violation of a security document. If loans are made to a qualifying nonprofit housing sponsor or local public entity, a regulatory agreement shall be recorded against the mobilehome park. This regulatory agreement shall contain provisions limiting occupancy, rents, and park operation for the original entire loan term. The department may release individual spaces from the regulatory agreement only if they are purchased by residents who occupy them. (d) Before providing financing pursuant to this chapter, Sections 50783 and 50784, the department shall require provision of, and approve, at least all of the following: (1) Verification at the time of application and prior to funding that at least two-thirds of the households residing in the mobilehome park support the plans for acquisition and conversion of the park. (2) Verification that either no park residents shall be involuntarily displaced as a result of the park conversion or the impacts of the displacement shall be mitigated as required under state and local law. For purposes of this requirement, compliance with Section 66427.5 of the Government Code shall be conclusively presumed to have mitigated economic displacement. (3) Verification that the conversion is consistent with local zoning and land use requirements, other applicable state and local laws, and regulations and ordinances. (4) Projected costs and sources of funds for all conversion activities. (5) Projected operating budget for the park during and after the conversion. (6) A management plan for the conversion and operation of the park. (7) If necessary, a relocation plan for residents not participating that is in compliance with Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code. (e) The department shall, to the greatest extent feasible, do all of the following: (1) Require participation by cities and counties in loan applications submitted pursuant to this chapter. (2) Contract with private lenders or local public entities to provide program administration and to service loans made pursuant to this chapter. (3) Give priority to applications for resident-owned parks. (f) The department may provide technical assistance to loan applicants, or may contract with a qualified nonprofit entity to provide that technical assistance, and may include the reasonable costs of the technical assistance as a part of the loan principal. SECTION 1. Article 7 (commencing with Section 21290) is added to Chapter 1 of Division 11 of the Vehicle Code, to read: Article 7. Operation of Medium-Speed Electric Vehicles 21290. For purposes of this article, a "medium-speed electric vehicle" means a vehicle that has all of the following characteristics: (a) Can attain a speed, in one mile, of more than 40 miles per hour and not more than 45 miles per hour, on a paved level surface. (b) Has a gross vehicle weight of no more than 3,000 pounds. (c) Is propelled solely by an electric motor. (d) Contains a vehicle identification number that meets international standards. 21291. A medium-speed electric vehicle shall satisfy all of the following safety requirements: (a) It shall possess a fully enclosed passenger compartment with rigid doors and safety windows. (b) It shall be equipped with a horn in good working condition that is capable of emitting sound audible under normal conditions from a distance of not less than 200 feet, but the horn shall not emit an unreasonably loud or harsh sound. (c) It shall meet or exceed the Federal Motor Vehicle Safety Standards described in Sections 571.103, 571.104, 571.108, 571.111, 571.114, 571.135, 571.205, 571.206, 571.209, 571.216, 571.305, and 571.500 of Title 49 of the Code of Federal Regulations. (d) It shall meet or exceed any safety standards for medium-speed electric vehicles adopted by the National Highway Traffic Safety Administration within one year of their adoption, unless an earlier compliance date is specified in the federal standards. 21292. (a) A medium-speed electric vehicle may be operated at speeds of no more than 45 miles per hour. (b) A medium-speed electric vehicle may not be operated on a roadway with a speed limit in excess of 45 miles per hour. 21295. Except as provided in Sections 21115 and 21115.1, a medium-speed electric vehicle is subject to all of the laws applicable to a motor vehicle, and the driver of a medium-speed electric vehicle is subject to all of the laws applicable to the driver of a motor vehicle or other vehicle, when applicable, by this code or another code, with the exception of those laws that, by their very nature, can have no application. SEC. 2. 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.