Existing law, known as the Mobilehome Parks Act, generally regulates various classifications of mobilehome and related vehicle parks. The Special Occupancy Parks Act generally regulates special occupancy parks. Both acts impose related duties on the Department of Housing and Community Development and local enforcement agencies. Existing law provides that any person who willfully violates the act, related building standards, or other related rules and regulations adopted by the department is guilty of a misdemeanor, subject to suspension or revocation of permits issued under the act, and liable for a civil penalty for each violation or for each day of a continuing violation. Existing law requires all fees or other moneys accruing to the department to be deposited into the Mobilehome-Manufactured Home Revolving Fund, which is continuously appropriated to the department for carrying out the provisions of the act.

This bill would authorize the Director of Housing and Community Development or a local enforcement agency that has assumed jurisdiction to issue citations that assess additional civil penalties to any owner or operator, or both, of a mobilehome park, special occupancy park, or registered owner of a manufactured home, mobilehome, or recreational vehicle, or other responsible party when he or she has permitted the continuation of a violation for at least 30 days after the expiration of a notice to correct the violation or violations from the enforcement agency. The bill would prescribe the amounts of those penalties and provide for a hearing on the citations. By increasing revenues deposited into a continuously appropriated fund, this bill would make an appropriation.

The bill would prescribe procedures for petitioning the department to review and investigate the enforcement activities of the local enforcement agency regarding the citation. Any hearing held pursuant to these procedures would not be subject to the Administrative Procedure Act.

 THIRD READING  

Bill No: SB 1106

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 4/12/16

AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski

SENATE JUDICIARY COMMITTEE: 7-0, 4/19/16

AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/2/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

SUBJECT:

SOURCE: Author

DIGEST: This bill authorizes the Department of Housing and Community Development (HCD) to issue citations that assess civil penalties to mobilehome park owners and residents who do not correct health and safety violations.

ANALYSIS:

Existing law:

1. Directs HCD to regulate mobilehome parks to protect the health, safety, and general welfare of all mobilehome park residents. HCD has adopted statewide regulations to this end, covering both park owners and park residents.
2. Authorizes local agencies to assume enforcement authority within their jurisdictions through agreement with HCD.
3. Authorizes enforcement agencies to perform health and safety inspections of mobilehome parks.
4. Stipulates that when a mobilehome park owner or resident is found to be out of compliance with mobilehome-related health and safety code provisions or HCD regulations, the enforcement agency must issue a notice of violation to the park owner or resident. Additionally:
5. If a violation by a resident has not been corrected after 60 days, the enforcement agency must notify the park owner.
6. If a violation by a park owner has not been corrected after 60 days, the owner must post the notice of violation conspicuously in the park.
7. If the enforcement agency determines that a violation constitutes an imminent threat to health and safety, the violation must be corrected within a reasonable time as determined by the enforcement agency.
8. Allows an enforcement agency to revoke or suspend a mobilehome park’s operating permit if the holder violates either the conditions of the permit or existing law related to mobilehome parks.
9. Establishes that willful violation of the portions of the Health and Safety Code or HCD regulations related to mobilehome parks is a misdemeanor, punishable by a $400 fine or 30 days in prison, and that any person who willfully violates these provisions and regulations is also liable for a civil penalty of $500 for each day of violation.

This bill:

1. Gives HCD and local enforcement agencies the authority to issue citations that assess civil penalties to mobilehome park owners or residents who fail to correct violations for at least 30 days after the expiration of a notice of violation.
2. Sets the amount of the civil penalty associated with the citation to:
3. $100 per violation in cases where the violation presents an unreasonable risk to life, health, or safety;
4. $250 for each subsequent violation of the same provision within one year of the first violation;
5. $200 per violation when the violation represents an imminent hazard requiring immediate correction due to the risk to life, health, and safety; and
6. $500 for each subsequent violation of the same provision representing an immediate hazard and within one year of the first violation.
7. Requires that payment be made to the enforcement agency within 45 days, regardless of whether the violation is corrected.
8. Gives a park owner or resident who receives a citation 30 days to petition the enforcement agency to dismiss or modify the citation, and requires the enforcement agency to hold an informal hearing when it receives petitions showing good cause.
9. Allows park owners and residents who have challenged a citation in an informal hearing before a local enforcement agency and received a final order to petition the outcome to HCD.

Comments

1. Purpose. HCD currently has the authority to issue notices of violation to mobilehome park owners and residents who are out of compliance with health and safety code. According to the author, however, many park owners and residents do not make the necessary repairs, despite repeated notices and follow-up inspections, resulting in unsafe conditions and parks that are community blights. Under current law, noncompliance with an order to repair a serious health and safety defect can only be enforced by expensive civil or criminal court proceedings by local or state public prosecutors, which the author contends “makes enforcement of serious violations virtually impossible, given other prosecutorial priorities.” The purpose of this bill is to provide HCD with the authority to issue citations for health and safety violations.
2. Regulation of mobilehomes and mobilehome parks. Mobilehomes are unique among housing forms in that they can move between jurisdictions. Historically, some local governments have tried to discourage mobilehome parks within their jurisdictions through burdensome regulations. These are some of the reasons that, under the state Mobilehome Parks Act, authority to regulate California’s approximately 4,500 mobilehome parks and 400,000 mobilehome lots resides at the state level with HCD. However, local agencies are allowed to assume the authority to enforce statewide rules from HCD. Currently, 63 cities and counties in California are acting as local enforcement agencies under the Act. The agency conducting inspections and issuing notices to mobilehome park owners and residents may therefore be either HCD or a local government agency, depending on the jurisdiction.
3. Common violations. Violations of health and safety requirements can be issued to both park operators and individual mobilehome residents, and range from relatively benign maintenance failures to serious hazards. It is important to note, however, that some of the most common violations fall into the latter category. For example, at the park level, “exposed live electrical parts” was the most frequently cited violation in 2014 and the third most frequently cited violation in 2015. Among residents, the most common violations in both years were “accumulation of rubbish [and] combustible material” and “extension cord used in lieu of permanent wiring.”
4. Inadequacy of current remedies. Under existing law, enforcement agencies have several tools for addressing violations at mobilehome parks. However, some of these tools are difficult to use, and the consequences associated with other measures tend to be either immaterial or severe. Because notices of violation carry no penalty, a recipient has little incentive to address the violation. Enforcement agencies have been reluctant to revoke park operating permits outright because doing so would displace residents, who often have low incomes and may have difficulty finding other housing. Merely suspending a park’s operating permit prevents park owners from collecting rent. While this provides a strong incentive to correct violations, the suspension process can take six months, which may be one reason enforcement agencies rarely use it. Finally, the author notes that health and safety violations at mobilehome parks are often a low priority for the court system, so when an enforcement agency appeals to the district attorney to bring a misdemeanor charge or pursue civil penalties against a violator, action is rarely taken.
5. Impact on low-income communities. This bill will impose costs on mobilehome park owners and residents, and these costs may be burdensome to low income individuals. It is unclear what percentage of health and safety violations identified by HCD during its compliance inspections result from deferred maintenance or repairs not undertaken because of a lack of resources. Should the civil penalties authorized in this bill be levied against mobilehome residents who already lack the resources needed to maintain their properties to the appropriate standard, this additional cost may actually increase noncompliance by diverting funds away from needed repairs.
6. Amount of the fine. This bill specifies the amounts of the penalties that HCD is authorized to impose. They range from $100 to $500 and vary based on the seriousness of the violation and the number of times the recipient has received a notice for the same violation in the same year. Thus, in order to receive a penalty at the high end of the scale, a park owner or resident would have to fail to correct a violation for 30 days after the expiration of the notice, and then commit the same violation again within one year and again fail to correct the second violation for 30 days after the expiration of the notice.
7. Due process. This bill provides certain basic due process rights to parties who receive citations. Under existing law, notices of violation must be in writing and describe the nature of the violation in as clear language as the technicality of the violation will allow. Individuals are provided with an opportunity to contest alleged violations following HCD’s informal conference procedures, and can also challenge enforcement actions of local jurisdictions through direct petitions to HCD. This bill offers similar informal conference procedures for individuals to use when contesting citations, and limits the time during which penalties may be assessed to within seven months of the underlying notice of violation. This bill also suspends enforcement of penalties while an alleged violator is contesting the citation. Just as with existing law, individuals would be able to challenge assessments levied by local jurisdictions through a direct petition to HCD.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• HCD staffing costs of approximately $240,000 for two additional staff for an anticipated increase in administrative workload associated with informal conferences, hearings, and appeals proceedings related to the new citation authority. (Mobilehome-Manufactured Home Revolving Fund)
  
• Estimated HCD staff cost savings of approximately $20,000 to $40,000 annually associated with a reduction in second reinspections associated with health and safety violations, to the extent the new fines act as an incentive for owners and operators to correct violations. (Mobilehome-Manufactured Home Revolving Fund)
  
• Estimated HCD fine and fee revenue gains, potentially in excess of $300,000 initially, due to new citation authority. These revenue gains would likely decrease in future years as compliance increases. (Mobilehome-Manufactured Home Revolving Fund)

SUPPORT: (Verified 5/4/16)

City of Grand Terrace

City of Montclair

The Educational Community for Homeowners

OPPOSITION: (Verified 5/4/16)

Western Manufactured Housing Communities Association

ARGUMENTS IN SUPPORT: Supporters of this bill argue that in the absence of appropriate tools for addressing violations, unsafe conditions may persist at mobilehome parks for months or even years. Enforcement data from HCD’s Mobilehome Park Maintenance and Inspection Task Force support this claim. Of the nearly 15,000 violations noticed to park owners and residents in 2015, half had been corrected as of January 2016.

ARGUMENTS IN OPPOSITION: The Western Manufactured Housing Communities Association (WMA), writing in opposition, expresses concern that the management of a mobilehome park may ultimately be held responsible for correcting a resident’s health and safety violations, or that it may be held financially responsible for civil penalties accumulated by a resident. WMA also expresses concern over the possibility that penalties may be assessed by an enforcement agency while a park owner or operator’s “permit to operate” (PTO) the park is suspended. They write, “[w]hen the PTO is suspended the management cannot collect rent, which is a pretty big hammer for the enforcement agency” and could “place the community in double-jeopardy.”

Prepared by:

5/4/16 15:04:18

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 1106 (Leyva) - Mobilehome parks

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

SB 1106 would authorize the Department of Housing and Community Development (HCD) and specified local enforcement agencies to issue a citation to mobilehome park owners or operators and mobilehome owners when the responsible party has failed to correct specified health and safety violations, as specified. Civil penalties would range from $100 to $500, as noted below.

Fiscal Impact:

• HCD staffing costs of approximately $240,000 for two additional staff for an anticipated increase in administrative workload associated with informal conferences, hearings, and appeals proceedings related to the new citation authority. (Mobilehome-Manufactured Home Revolving Fund)
  
• Estimated HCD staff cost savings of approximately $20,000 to $40,000 annually associated with a reduction in second reinspections associated with health and safety violations, to the extent the new fines act as an incentive for owners and operators to correct violations. (Mobilehome-Manufactured Home Revolving Fund)
  
• Estimated HCD fine and fee revenue gains, potentially in excess of $300,000 initially, due to new citation authority. These revenue gains would likely decrease in future years as compliance increases. (Mobilehome-Manufactured Home Revolving Fund)

Background:

Existing law, The Mobilehome Parks Act (MPA), authorizes HCD to regulate mobilehome parks to assure the protection of the health, safety, and general welfare of all mobilehome park residents. HCD has adopted statewide regulations to this end, covering both park owners and park residents. Local agencies have the option of assuming enforcement authority within their jurisdictions through an agreement with HCD. Currently, HCD exercises enforcement authority over approximately 4,200 mobilehome parks, and local agencies – about 70 in total – enforce the act and its regulations in just over 1,000 parks. One of the duties of enforcement agencies is performing health and safety inspections of mobilehome parks.

If an enforcement agency, upon inspection, determines that a mobilehome park is in violation of any provision of the MPA or applicable regulations, the enforcement agency issues a notice to correct the violation to the owner or operator of the mobilehome park and to the responsible person, as specified. The owner or operator of the mobilehome park is responsible for the correction of these violations. If an enforcement agency determines that a mobilehome, an accessory building or structure, or lot is in violation of specified provisions of the MPA or applicable regulations, the enforcement agency must issue a notice to correct the violation to the mobilehome owner and occupant. The mobilehome owner is responsible for the correction of these violations.

If the owner or operator of the mobilehome park or the mobilhome owner disputes a determination by the enforcement agency regarding a violation, the failure to correct the violation in the required timeframe, or the reasonableness of the deadline for correction specified by the notice of violation, the park owner/operator or mobilehome owner may request an informal conference with the enforcement agency. The informal conference, and any subsequent hearings or appeals of the decision of the enforcement agency, shall be conducted in accordance with procedures prescribed by HCD.

Existing law establishes that a willful violation of the portions of the Health and Safety Code or HCD regulations related to mobilehome parks is a misdemeanor, punishable by a $400 fine or 30 days in prison. Any person who willfully violates these provisions and regulations is also liable for a civil penalty of $500 for each day of a continuing violation.

Proposed Law:

SB 1106 would authorize HCD or a local enforcement agency to issue a citation that assesses a civil penalty to a park owner or operator, or mobilehome owner or other responsible party, who violates the MPA or applicable regulations, if that person has permitted the continuation of a violation at least 30 days after the expiration of a notice to correct the violation.

This bill specifies the amount of the civil penalty at $100 for violations determined to be a hazard constituting an unreasonable risk to life, health, or safety, and increases the penalty to $250 for each subsequent violation within one year of the first violation. For violations determined to be an imminent hazard representing an immediate risk to life, health, or safety requiring immediate correction, the civil penalty would be $250, and $500 for each subsequent violation within one year of the first violation. Payment must be remitted to the enforcement agency within 45 days.

SB 1106 would also authorize a park owner/operator or resident to petition the enforcement agency to dismiss or modify the citation within 30 days of issuance, and require the enforcement agency to hold an informal hearing when it receives a petition showing good cause, as specified. A park owner/operator or mobilehome owner who receives a final determination from an enforcement agency may subsequently petition HCD to review and investigate the enforcement activities. HCD must consider the petition and initiate corrective actions, as specified.

Staff Comments:

Current enforcement authority for violations of the MPA do not appear to serve as a sufficient incentive for park owners/operators or mobilehome owners to take corrective action. Enforcement data from HCD’s Mobilehome Park Maintenance and Inspection Task Force indicates that in 2015, 5,040 notices of violation were issued to park owners, of which 2,723 had been uncorrected by January 2016, and 10,860 notices were issued to mobilehome owners, of which 5,317 went uncorrected. In addition, 168 of the 216 mobilhome parks inspected in 2014 required 599 reinspections by enforcement agencies to correct violations found during initial inspections. The average HCD inspection costs are $196 per inspection, and the costs for reinspection are not recoverable.

HCD estimates that the citation authority provided by SB 1106 could result in the collection of approximately $319,000 initially, based upon a $100 citation level using the amount of violations that remained uncorrected after a second park reinspection. The revenues from citations would be lower in subsequent years, to the extent the citation authority serves as an incentive to correct violations and compliance increases. HCD also indicates that it is likely to conduct 100-200 fewer reinspections annually with increased compliance, resulting in inspection staff savings of approximately $20,000 to $40,000 per year.

HCD would also incur additional administrative costs to conduct informal hearings from park owners and mobilehome operators petition the department to review a citation, and subsequent investigations and formal appeals. These new activities would require the addition of two new staff to handle the administrative workload at a cost of approximately $240,000 annually.

-- END --

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2015-2016 Regular Session

Bill No: SB 1106 (Author:Leyva)

Version: February 17, 2016

Hearing Date: April 19, 2016

Fiscal: Yes

Urgency: No

Consultant: TH

SUBJECT

Mobilehome Parks

DESCRIPTION

Existing law, the Mobilehome Parks Act, provides that any person who willfully violates the act, related building standards, or other related rules and regulations adopted by the Department of Housing and Community Development, is guilty of a misdemeanor, subject to suspension or revocation of permits issued under the act, and liable for a civil penalty for each violation or for each day of a continuing violation.

This bill authorizes the Director of Housing and Community Development, or a local enforcement agency that has assumed jurisdiction, to issue citations that assess civil penalties to any owner or operator of a mobilehome park, or a registered owner of a manufactured home, mobilehome, or recreational vehicle, or other responsible party, when he or she has permitted the continuation of a violation for at least 30 days after the expiration of a notice to correct the violation or violations from the enforcement agency.

BACKGROUND

The Mobilehome Parks Act, Health and Safety Code Section 18200 et seq., authorizes the Department of Housing and Community Development (HCD) to regulate mobilehome parks to assure the protection of the health, safety, and general welfare of all mobilehome park residents. The act “clearly expresses that it is California state policy to ensure that mobilehome parks are operated to assure the health, safety, general welfare, and decent living environment of the residents, as well as protect the investment value of mobilehomes.” (County of Santa Cruz v. Waterhouse (2005) 127 Cal.App.4th 1483, 1489 [citations and internal quotation marks omitted].) The act’s goal of “promoting the health and safety of mobilehome residents [is] implemented through the HCD’s establishment of standards for [the] construction, maintenance, occupancy, use, and design of [mobilehome] parks,” (Id.) and these standards are codified in Title 25 of the California Code of Regulations.

The Mobilehome Parks Act gives local jurisdictions the option to assume enforcement authority within their jurisdiction by executing an agreement with HCD. Currently, HCD exercises enforcement authority over approximately 4,200 mobilehome parks, and local agencies – about 70 in total – enforce the act and its regulations in just over 1,000 parks. HCD reports that during compliance investigations carried out in 2015, the “accumulation of rubbish or combustible material” was the most frequent violation noted for park residents, and “exposed live electrical parts” was among the top three violations noted for park owners or operators. In total, 15,900 violations were found during inspections undertaken in 2015, and as of January of this year, approximately 8,040 violations remained uncorrected.

The act provides that willful violations of its provisions constitute a misdemeanor, punishable by either or both a fine of $400 or 30 days imprisonment. The act also provides that enforcement agencies may collect a civil penalty of $500 for willful violations through a proceeding in civil court. (See Health & Saf. Code Sec. 18700.)

This bill would additionally authorize an enforcement agency to assess a civil penalty, payable to the enforcement agency, of up to $500 for continuing violations of the act or its implementing regulations, provided they remain uncorrected for a minimum of 30 days. This bill provides that any person assessed a civil penalty may petition the enforcement agency to dismiss or modify the citation giving rise to the penalty, and participate in an informal hearing on the merits of the petition within 30 days of filing.

This bill was approved by the Senate Committee on Transportation and Housing on April 12, 2016, by a vote of 11-0.

CHANGES TO EXISTING LAW

Existing law, the Mobilehome Parks Act (MPA), authorizes the Department of Housing and Community Development (HCD) to develop specific requirements relating to the construction, maintenance, occupancy, use, and design of mobilehome parks. (Health & Saf. Code Sec. 18200 et seq.)

Existing law provides that the MPA applies to all parts of the state and supersedes any local ordinance, as specified. (Health & Saf. Code Sec. 18300 (a).)

Existing law provides that upon 30 days’ written notice from the governing body to HCD, any city, county, or city and county may assume the responsibility for the enforcement of the MPA and its implementing regulations, as specified. (Health & Saf. Code Sec. 18300 (b).)

Existing law authorizes officers or agents of the applicable enforcement agency to enter and inspect all parks, wherever situated, and inspect all accommodations, equipment, or paraphernalia used in connection therewith, including the right to examine any registers of occupants maintained therein in order to secure the enforcement of the MPA and the regulations adopted pursuant to the MPA. (Health & Saf. Code Sec. 18400 (b).)

Existing law states that if, upon inspection, the applicable enforcement agency determines that a mobilehome park is in violation of any provision of the MPA, or any rule or regulation adopted pursuant thereto, the enforcement agency shall promptly issue a notice to correct the violation to the owner or operator of the mobilehome park and to the responsible person, as specified. The owner or operator of the mobilehome park shall be responsible for the correction of any violations for which a notice of violation has been given. (Health & Saf. Code Sec. 18420 (a).)

Existing law states that if, upon inspection, the applicable enforcement agency determines that a manufactured home, mobilehome, an accessory building or structure, or lot is in violation of specified provisions of the MPA, or any rule or regulation adopted pursuant thereto, the enforcement agency shall promptly issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome, with a copy to the occupant thereof, if different from the registered owner. The registered owner of the manufactured home or mobilehome shall be responsible for the correction of any violations for which a notice of violation has been given. (Health & Saf. Code Sec. 18420 (b).)

Existing law provides that service of the notice of violation shall be effected either personally or by first-class mail. Each notice of violation shall be in writing and shall describe with particularity the nature of the violation in as clear language as the technicality of the violation will allow the average layperson to understand what is being cited, including a reference to the statutory provisions or regulation alleged to have been violated, as well as any penalty provided by law for failure to make timely correction. For violations other than imminent threats to health and safety, as specified, the notice of violation shall allow 60 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. (Health & Saf. Code Sec. 18420 (c).)

Existing law provides that if the owner or operator of the mobilehome park or the registered owner of the manufactured home or mobilehome disputes a determination by the enforcement agency regarding the alleged violation, the alleged failure to correct the violation in the required timeframe, or the reasonableness of the deadline for correction specified by the notice of violation, the owner or operator of the mobilehome park or the registered owner of the manufactured home or mobilehome may request an informal conference with the enforcement agency. The informal conference, and any subsequent hearings or appeals of the decision of the enforcement agency, shall be conducted in accordance with procedures prescribed by HCD. (Health & Saf. Code Sec. 18421.)

Existing law provides that any person who willfully violates the MPA or any rules or regulations adopted by HCD pursuant to the MPA is guilty of a misdemeanor, punishable by a fine not exceeding $400 or by imprisonment not exceeding 30 days, or by both such fine and imprisonment. (Health & Saf. Code Sec. 18700.)

Existing law provides that any person who willfully violates the MPA or any rules or regulations adopted by HCD pursuant to the MPA shall be liable for a civil penalty of $500 for each violation or for each day of a continuing violation. The enforcement agency shall institute or maintain an action in the appropriate court to collect any civil penalty arising under this section. (Health & Saf. Code Sec. 18700.)

This bill states that in addition to other remedies, the Director of HCD (Director), or an employee authorized by a local enforcement agency, may issue a citation that assesses a civil penalty to any owner or operator, or both, of a mobilehome park or registered owner of a manufactured home, mobilehome, or recreational vehicle, or other responsible party who violates the MPA or regulations adopted pursuant to the MPA, if the owner or operator, or both, or registered owner of a manufactured home, mobilehome, or recreational vehicle, or other responsible party has permitted the continuation of a violation for at least 30 days after the expiration of a notice to correct the violation or violations from the enforcement agency.

This bill specifies that each citation and related civil penalty assessment shall be issued no later than seven months after issuance of the notice to correct that provides the basis of the citation, and that these penalties shall be in addition to other penalties, as specified.

This bill specifies that the amount of a civil penalty assessed shall be $100 for each violation that the enforcement agency determines is a hazard constituting an unreasonable risk to life, health, or safety, but shall be increased to $250 for each subsequent violation of the same prohibition for which a citation for the subsequent violation is issued within one year of the citation for the previous violation.

This bill specifies that the amount of a civil penalty assessed shall be $200 for each violation that the enforcement agency determines is an imminent hazard representing an immediate risk to life, health, and safety and requiring immediate correction, but shall be increased to $500 for each subsequent violation of the same prohibition for which a citation for the subsequent violation is issued within one year of the citation for the previous violation.

This bill specifies that the civil penalties assessed shall be payable to the enforcement agency, notwithstanding any other provision of law, and that payment of the civil penalty shall be remitted to the enforcement agency within 45 days of the issuance of the citation.

This bill specifies that any person or entity served a citation pursuant to this section may petition the Director or the authorized representative of the local enforcement agency, where applicable, to dismiss or modify the citation. The petition shall be a written request briefly stating the grounds for the request, and must be received by HCD or the local enforcement agency within 30 days of the date of issuance of the citation. Upon receipt of a timely and complying petition, the enforcement agency shall suspend enforcement of the citation and set a time and place for an informal hearing, as specified.

This bill specifies that the enforcement agency shall notify the petitioner in writing of its decision and the reasons therefor within 30 days following conclusion of the informal hearing.

This bill provides that a mobilehome park owner or operator, or the registered owner of a manufactured home, mobilehome, recreational vehicle, or other responsible party, who both receives a citation with civil penalties issued by an enforcement agency other than HCD, and receives a final, formal order from the enforcement agency following an informal hearing on a submitted petition, shall be entitled to petition HCD to review and investigate, as necessary, the enforcement activities of the local enforcement agency. This bill specifies procedures for petitioners to follow when seeking such review from HCD.

This bill states that if HCD finds that the notice of violation, citation, written determination, or final, formal order issued by the local enforcement agency reflects non-enforcement of the law, HCD shall initiate corrective action including, but not be limited to, cancellation of the civil citation.

This bill specifies that informal hearings held pursuant to the above provisions shall not be subject to the administrative adjudication provisions of Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of Title 2 of the Government Code.

COMMENT

1. Stated need for the bill

According to the author:

The Department of Housing and Community Development (HCD) and certain local governments enforce the state’s health and safety requirements of the “Mobilehome Parks Act” (MPA) laws and regulations in the 4,500 mobilehome parks with about 400,000 spaces throughout the state. Enforcement includes issuing both park owners and resident homeowners notices of violation for defects in their parks or homes, respectively. Except for imminent hazards, they generally have 30 days to correct the violations.

Most violations by park owners include dangerously deficient electrical, gas and plumbing systems. Violations by park residents are mostly accumulations of combustible materials, and electrical cords in lieu of permanent wiring. The same code violations sometimes linger for years in mobilehome parks because there is no monetary penalty for uncorrected violations.

Many park owners and residents do not make the repairs, despite repeated “notices” and follow-up inspections, and HCD’s authority to obtain compliance is limited by statute. Under current law, noncompliance with an order to repair a serious health and safety defect can only be enforced by expensive civil or criminal court proceedings by local or state public prosecutors, which makes enforcement of serious violations virtually impossible, given other prosecutorial priorities. The only other options are, for resident violations, to mandate park evictions lawsuits, and, for park violations, to suspend the park’s permit to operate and its right to collect rent. Both options have serious consequences without necessarily resulting in repairs.

SB 1106 would add to HCD’s existing citation authority to allow it, and local governments enforcing the MPA, to issue citations after 30 days have elapsed without repair to an unreasonable or imminent health and safety violation by a park owner or homeowner in a mobilehome park. The initial citations for an “unreasonable” violation, such as a mobilehome park-wide brownout, would be $100, with subsequent violations within one year being $250. Similarly, initial citations for an “imminent” hazard, such as running sewage under a mobilehome or trailer unit, would be $200, with subsequent violations within one year being $500. Additionally, simple administrative appeal rights are provided, including allowing HCD to keep the costs to the state and petitioners reasonable by utilizing in-house informal appeals rather than the Office of Administrative Hearings judges. The enforcement agency issuing the citation would retain the penalties, thus self-funding the enforcement process.

1. Incentivizing compliance

As noted in the Background, above, HCD reports that several thousand mobilehome park owners and residents are, and remain, out of compliance with the Mobilehome Parks Act (MPA) and its implementing regulations. Many of the regulatory violations identified by HCD present significant risks to park residents and guests, including the presence of exposed live electrical equipment and the accumulation of combustible material near residences. The City of Montclair, writing in support, offers a similar view:

The City of Montclair has several mobile home and trailer parks, many of which are in need of significant enforcement of health and safety regulations. However, despite repeated “notices” and follow-up inspections, [HCD’s] authority to obtain compliance is limited by statute. Under current law, noncompliance with an order to repair a serious health and safety defect can only be enforced by expensive civil or criminal court proceedings by local or state public prosecutors, which makes enforcement of serious violations virtually impossible, given other prosecutorial priorities and limited court resources. Some of these parks -- developed prior to 1960 -- are in need of serious enforcement that will compel owners and residents to maintain their dwellings, which in turn promote healthier and safer environments in the city.

This bill would incentivize compliance with the MPA and its implementing regulations by authorizing HCD and local enforcement jurisdictions to assess civil penalties ranging from $100 to $500 for violations that remain uncorrected more than 30 days after the designated deadline given by an enforcement agency to correct a violation.

Importantly, the bill provides certain basic due process rights to parties who receive such assessments. Under existing law, underlying notices of violation must be in writing and describe with particularity the nature of the violation in as clear language as the technicality of the violation will allow the average layperson to understand what is being cited, including a reference to the statutory provisions or regulation alleged to have been violated, as well as any penalty provided by law for failure to make timely correction. For violations other than imminent threats to health and safety, a notice of violation must allow 60 days from the postmarked date or date of delivery for the elimination of the condition constituting the alleged violation. Individuals are provided with an opportunity to contest alleged violations following HCD’s informal conference procedures, and can also challenge enforcement actions of local jurisdictions through direct petitions to HCD.

This bill would offer similar informal conference procedures for individuals to use when contesting civil penalty assessments, and would impose a timeline limiting when such penalties may be assessed to within seven months of the underlying notice of violation. This bill would also provide a 30-day period in which parties may cure alleged violations before a civil assessment could issue, and would require enforcement of the assessment to be suspended while being contested by an alleged violator. Just as with existing law, individuals would be able to challenge assessments levied by local jurisdictions through a direct petition to HCD.

1. Impact to low-income communities

Staff notes that while this bill may ultimately help incentivize compliance with the Mobilehome Parks Act (MPA), the civil assessments authorized by the bill would likely be levied against lower income Californians who may not have the financial means to easily absorb them. It is unclear what percentage of health and safety violations identified by HCD during its compliance inspections result from deferred maintenance or repairs not undertaken because of a lack of resources. Should these assessments be levied against mobilehome residents who already lack the resources needed to maintain their properties to the appropriate standard, the additional costs imposed by this bill may actually increase noncompliance by diverting funds away from needed repairs. Given the impact these assessments could have on lower income communities, the Committee may wish to consider how to best ensure that these assessments do not further impoverish financially vulnerable communities.

1. Opposition concerns

The Western Manufactured Housing Communities Association (WMA), writing in opposition, expresses concern that the management of a mobilehome park may ultimately be held responsible for correcting a resident’s health and safety violations, or that it may be held financially responsible for civil penalties accumulated by a resident. WMA also expresses concern over the possibility that penalties may be assessed by an enforcement agency while a park owner or operator’s “permit to operate” (PTO) the park is suspended. They write, “[w]hen the PTO is suspended the management cannot collect rent, which is a pretty big hammer for the enforcement agency” and could “place the community in double-jeopardy.”

Support: City of Montclair; Educational Community for Homeowners

Opposition: Western Manufactured Housing Communities Association

HISTORY

Source: Author

Related Pending Legislation: None Known

Prior Legislation:

SB 244 (Vidak, Ch. 176, Stats. 2015) removed a sunset provision implemented by AB 2272 (Wagner, Ch. 99, Stats. 2012), and thereby indefinitely authorized the management of a mobilehome park to file a petition for an order to enjoin violations of a reasonable rule or regulation of the mobilehome park within the limited jurisdiction of the superior court.

AB 2272 (Wagner, Ch. 99, Stats. 2012) authorized, until January 1, 2016, the management of mobilehome parks to file petitions for orders to enjoin violations of reasonable rules or regulations of mobilehome parks within the limited jurisdiction of the superior court.

SB 459 (Lockyer, Ch. 270, Stats. 1991) authorized the management of mobilehome parks to obtain injunctions for three years against continuing or recurring violations of the reasonable rules and regulations of the park. This bill entitled the management to an injunction upon showing such a violation by clear and convincing evidence, and authorized the court to grant a temporary order restraining the violation for up to 15 days pending a hearing on the injunction.

Prior Vote: Senate Transportation and Housing Committee (Ayes 11, Noes 0)

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SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: Hearing Date: 4/12/2016

SUBJECT:

DIGEST: This bill authorizes the Department of Housing and Community Development (HCD) to issue citations to mobilehome park owners and residents who do not correct health and safety violations.

ANALYSIS:

Existing law:

• Directs the Department of Housing and Community Development (HCD) to regulate mobilehome parks to protect the health, safety, and general welfare of all mobilehome park residents. HCD has adopted statewide regulations to this end, covering both park owners and park residents. Local agencies have the option of assuming enforcement authority within their jurisdictions through agreement with HCD. One of the duties of enforcement agencies is performing health and safety inspections of mobilehome parks.
• Further stipulates that when a mobilehome park owner or resident is found to be out of compliance with mobilehome-related Health and Safety Code provisions or HCD regulations, the enforcement agency must issue a notice of violation to the park owner or resident. If a violation by a resident has not been corrected after 60 days, the enforcement agency must notify the park owner. If a violation by a park owner has not been corrected after 60 days, the owner must post the notice of violation conspicuously in the park. If the enforcement agency determines that a violation constitutes an imminent threat to health and safety, the violation must be corrected within a reasonable time as determined by the enforcement agency.
• Allows an enforcement agency to revoke or suspend a mobilehome park’s operating permit if the holder violates either the conditions of the permit or existing law related to mobilehome parks.

Existing law establishes that willful violation of the portions of the Health and Safety Code or HCD regulations related to mobilehome parks is a misdemeanor, punishable by a $400 fine or 30 days in prison. Any person who willfully violates these provisions and regulations is also liable for a civil penalty of $500 for each day of violation.

This bill:

1. Gives HCD and local enforcement agencies the authority to issue citations to mobilehome park owners or residents who fail to correct violations for at least 30 days after the expiration of a notice of violation.
2. Sets the amount of the penalty associated with the citation to:
3. $100 per violation in cases where the violation presents an unreasonable risk to life, health, or safety;
4. $250 for each subsequent violation of the same provision within one year of the first violation;
5. $200 per violation when the violation represents an imminent hazard requiring immediate correction due to the risk to life, health, and safety; and
6. $500 for each subsequent violation of the same provision representing an immediate hazard and within one year of the first violation.
7. Requires that payment be made to the enforcement agency within 45 days, regardless of whether the violation is corrected.
8. Gives a park owner or resident who receives a citation 30 days to petition the enforcement agency to dismiss or modify the citation, and requires the enforcement agency to hold an informal hearing when it receives petitions showing good cause.
9. Allows park owners and residents who have challenged a citation in an informal hearing before a local enforcement agency and received a final order to petition the outcome to HCD.

COMMENTS:

1. Purpose. HCD currently has the authority to issue notices of violation to mobilehome park owners and residents who are out of compliance with health and safety code. According to the author, however, many park owners and residents do not make the necessary repairs, despite repeated notices and follow-up inspections, resulting in unsafe conditions and parks that are community blights. Under current law, noncompliance with an order to repair a serious health and safety defect can only be enforced by expensive civil or criminal court proceedings by local or state public prosecutors, which the author contends “makes enforcement of serious violations virtually impossible, given other prosecutorial priorities.” The purpose of this bill is to provide HCD with the authority to issue citations for health and safety violations.
2. Background regulation of mobilehomes and mobilehome parks. Mobilehomes are unique among housing forms in that they can move between jurisdictions. Historically, some local governments have tried to discourage mobilehome parks within their jurisdictions through burdensome regulations. These are some of the reasons that, under the state Mobilehome Parks Act, authority to regulate California’s approximately 4,500 mobilehome parks and 400,000 mobilehome lots resides at the state level with HCD. However, local agencies are allowed to assume the authority to enforce statewide rules from HCD. Currently, 63 cities and counties in California are acting as local enforcement agencies under the act. The agency conducting inspections and issuing notices to mobilehome park owners and residents may therefore be either HCD or a local government agency, depending on the jurisdiction.
3. Common violations. Violations of health and safety requirements can be issued to both park operators and individual mobilehome residents, and range from relatively benign maintenance failures to serious hazards. It is important to note, however, that some of the most common violations fall into the latter category. For example, at the park level, “exposed live electrical parts” was the most frequently cited violation in 2014 and the third most frequently cited violation in 2015. Among residents, the most common violations in both years were “accumulation of rubbish [and] combustible material” and “extension cord used in lieu of permanent wiring.”
4. Inadequacy of current remedies. Under existing law, an enforcement agency has several tools for addressing violations at mobilehome parks. However, some of these tools are difficult to use, and the consequences associated with other measures tend to be either immaterial or severe. Because notices of violation carry no penalty, a recipient has no incentive to address the violation. Suspending a park’s operating permit prevents park owners from collecting rent. While this provides a strong incentive to correct violations, it also deprives park owners from the income that would in many cases be necessary to do so. Additionally, suspending a permit takes at least six months. Revoking park operating permits outright is an even longer process, and would displace residents who often have low incomes and may have difficulty finding other housing. Finally, the author notes that health and safety violations at mobilehome parks are a low priority for the court system, so district attorneys rarely bring misdemeanor charges or pursue civil penalties against violators. Supporters of this bill argue that in the absence of appropriate tools for addressing violations, unsafe conditions may persist at mobilehome parks for months or even years. Enforcement data from HCD’s Mobilehome Park Maintenance and Inspection Task Force support this claim. Of the nearly 15,000 violations noticed to park owners and residents in 2015, half had been corrected as of January 2016.
5. Amount of the fine. This bill will impose costs on mobilehome park owners and residents. These costs may be burdensome to low-income individuals. The bill specifies the amounts of the penalties that HCD is authorized to impose. They range from $100 to $500 and vary based on the seriousness of the violation and the number of times the recipient has received a notice for the same violation in the same year. To receive a penalty at the high end of the scale, a park owner or resident would have to fail to correct a violation for 30 days after the expiration of the notice, and then commit the same violation again within one year and again fail to correct the second violation for 30 days after the expiration of the notice.
6. Double-referral. This bill has also been referred to the Senate Judiciary Committee.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

April 6, 2016.)

SUPPORT:

City of Montclair

The Educational Community for Homeowners

OPPOSITION:

None received

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