California Assembly Bill AB692 Amended / Bill

 BILL NUMBER: AB 692AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 19, 2013 INTRODUCED BY Assembly Member Torres FEBRUARY 21, 2013 An act to amend  Section 50783   Sections 50781 and 50782  of  , and to add Section 50784.5 to,  the Health and Safety Code, relating to mobilehomes  , and making an appropriation therefor  . LEGISLATIVE COUNSEL'S DIGEST AB 692, as amended, Torres. Mobilehomes: loans. 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 and to make monthly housing costs affordable. This bill would  make a technical, nonsubstantive change to this provision   change the name of the fund to the Mobilehome Rehabilitation and Park Purchase Fund and authorize the department to   provide loans from the fund to mobilehome owners   to finance the cost of repairs necessary to ensure that the mobilehome complies with all applicable health and safety standards, or to finance the cost of accessibility features necessary to allow the mobilehome owner to continue living in the home safely  .  By authorizing a new purpose for the use of continuously appropriated funds, this bill would make an appropriation.  Vote:  majority   2/3  . Appropriation:  no   yes  . Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   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  Rehabilitation and  Park 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  Rehabilitation and  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. 2.   Section 50782 of the   Health and Safety Code   is amended to read:  50782. (a) The Mobilehome  Rehabilitation and  Park 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  Rehabilitation and  Park 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  Rehabilitation and  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 was created.  SEC. 3.   Section 50784.5 is added to the   Health and Safety Code   , to read:   50784.5. (a) The department may make loans from the fund to a mobilehome owner whose home is located in a mobilehome park to finance the cost of repairs necessary to ensure that the mobilehome complies with all applicable health and safety standards, or to finance the cost of accessibility features necessary to allow the mobilehome owner to continue living in the home safely. (b) Loans provided pursuant to this section shall be for a term of no more than three 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. (c) Loans provided pursuant to this section shall not exceed the current appraised value of the mobilehome.   SECTION 1.   Section 50783 of the Health and Safety Code is amended to read: 50783. (a) The department may make loans from the fund to resident organizations for purposes of financing mobilehome park conversion costs. (b) Loans provided pursuant to this section shall be for a term of no more than three 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. (c) Loans provided pursuant to this section shall be for the minimum amount necessary to enable a resident organization to acquire and convert the mobilehome park. To the extent possible, the loan amount shall not exceed 50 percent of the approved conversion costs. However, the loan amount may be for up to 95 percent of the approved conversion costs attributable to the low-income households in the park when approved by the department. (d) The department may grant approval to exceed 50 percent of the approved conversion costs only if both of the following are demonstrated: (1) That the applicant has made an effort to secure additional funds from other sources and these funds are not available. (2) That the project would not be feasible, as determined by the department, without a waiver of the 50-percent financing limitation. (e) 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.