The Mobilehome Parks Act requires the Department of Housing and Community Development to establish regulations for manufactured home, mobilehome, and commercial modular foundation systems. Existing law requires the installation of a manufactured home, mobilehome, or commercial modular as a fixture or improvement to real property to comply with specified provisions, including obtaining a building permit and submission of plans as required by the departments regulations.

The Vehicle License Fee Law exempts from imposition of the vehicle license fee mobilehomes sold and installed on a foundation system pursuant to the above-described provisions and provides that a mobilehome exempted by this provision is subject to local property taxation. Existing law also requires the Department of Housing and Community Development to transfer a manufactured home or mobilehome which is subject to the vehicle license fee to local property taxation upon a request executed by the owner, legal owner, and each junior lienholder.

This bill would require the owner of a manufactured home or mobilehome to request a transfer from the vehicle license fee to local property taxation in order for the manufactured home or mobilehome to be installed as a fixture or improvement on real property. authorize the assessor to transfer a manufactured home, subject to vehicle license and registration fees, to property taxation where the assessor finds that the manufactured home has been rebuilt to the substantial equivalent of a new residential structure, as specified, and would require the base year value of the manufactured home to be its full cash value on the date of completion of new construction. The bill would require the assessor to notify each assessee whose manufactured home is to be placed on the local assessment roll, and to also give notification to the Department of Housing and Community Development and the legal owner, if any, of the manufactured home. This bill would require the Department of Housing and Community Development to transfer the manufactured home or mobilehome to local property taxation upon notification by the assessor. This bill would also make related conforming changes.

The Mobilehome Parks Act requires the Department of Housing and Community Development to establish regulations for manufactured home, mobilehome, and commercial modular foundation systems. Existing law requires the installation of a manufactured home, mobilehome, or commercial modular as a fixture or improvement to real property to comply with specified provisions, including obtaining a building permit and submission of plans as required by the departments regulations.

The Vehicle License Fee Law exempts from imposition of the vehicle license fee mobilehomes sold and installed on a foundation system pursuant to the above-described provisions and provides that a mobilehome exempted by this provision is subject to local property taxation. Existing law also requires the Department of Housing and Community Development to transfer a manufactured home or mobilehome which is subject to the vehicle license fee to local property taxation upon a request executed by the owner, legal owner, and each junior lienholder.

This bill would require the owner of a manufactured home or mobilehome to request a transfer from the vehicle license fee to local property taxation in order for the manufactured home or mobilehome to be installed as a fixture or improvement on real property.

 THIRD READING  

Bill No: SB 434

Author: Allen (D)

Amended: 5/20/15

Vote: 21

SENATE TRANS. & HOUSING COMMITTEE: 9-0, 4/21/15

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

NO VOTE RECORDED: Bates, Gaines

SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 5/13/15

AYES: Hertzberg, Beall, Hernandez, Lara, Moorlach, Pavley

NO VOTE RECORDED: Nguyen

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Manufactured housing: vehicle license fee: property taxation.

SOURCE: Los Angeles County Assessor Jeffrey Prang

DIGEST: This bill requires the assessor to notify the Department of Housing and Community Development (HCD), the legal owner, and each assessee whose manufactured home is to be placed on the local assessment role. This bill also requires HCD to transfer a manufactured home that is subject to the vehicle license fee to local property taxation when it is found that the home has been rebuilt and is no longer mobile.

ANALYSIS:

Existing law:

1. Provides in Section 1 of Article XIII of the California Constitution that all property is taxable unless explicitly exempted by the Constitution or federal law. The Constitution limits the maximum amount of any ad valorem taxes on real property at 1% of full cash value and precludes reassessment unless the property is newly constructed or changes ownership.

2. Provides mobilehomes and manufactured homes are different than traditional residential properties in California, especially for property tax purposes. HCD maintains a title registry of all mobilehomes and manufactured homes in the state. Prior to 1980, all mobilehomes paid an in-lieu fee (ILF) — also known as the vehicle license fee (VLF) — to HCD instead of the property tax. However, the Legislature required any mobilehomes sold after July 1, 1980, to pay the property tax as personal property. Any new mobilehomes sold in the state are automatically placed on the local property tax roll. The difference between the two taxes can be significant: ILF is .65% of pre-1980 value depreciated according to a statutory schedule, and usually totals between $16 and $80, while the property tax would generally total 1% of its assessed value.

3. Requires a property owner must first obtain a building permit from HCD to install a mobilehome, manufactured home, or modular home on the original foundation. HCD will only approve new construction that allows the home to be moved on its original chassis, or else it is subject to local property taxation as personal property. If HCD approves the permit and grants a certificate of occupancy, it must record a document in the county recorder’s office within five days, naming the owner of the real property and declaring that the mobilehome, manufactured home, or commercial modular home has been affixed to the real property by installation on a foundation.

This bill:

1. Authorizes the assessor to transfer a manufactured home subject to VLF and registration fees to property taxation if the assessor finds that the manufactured home has been rebuilt to the substantial equivalent of a new residential structure and deems that the manufactured home is no longer transportable in one or more sections. The assessor must notify each assessee whose manufactured home is to be placed on the local assessment roll. The notification must also be given to HCD and the legal owner of the manufactured home at the same time it is given to the assessee. This will apply to projects with a construction completion date of January 1, 2016.

2. Requires HCD to transfer a manufactured home or mobilehome which is subject to VLF to local property taxation upon notification by the assessor that the manufactured home or mobilehome has become subject to local property taxation.

3. Adds to the meaning of manufactured home in “The Manufactured Home Property Tax Law.” This expanded meaning will include manufactured homes or mobilehomes, as defined in the Health and Safety Code, which were first sold new on or before June 30, 1980, and, following the owner’s notification by the assessor, subsequently made subject to local property taxation.

4. Defines the “base year value” of a manufactured home that has been converted from paying the VLF to paying local property taxation to be its full cash value on the date of completion of new construction. The completion of new construction is subject to supplemental assessment.

Comments

Purpose of the bill. According to the source and author, this bill addresses an exploitation of tax law by a small subset of mobilehome owners. Under current statute, owners of mobilehomes first purchased prior to 1980 are taxed at a rate of between $16 and $80 annually, because the home is considered a vehicle. An issue of fairness arises when certain owners choose to entirely and sometimes opulently rebuild their homes, retaining only the steel chassis of the original structure, surrounded by the new foundation, and under the floor of the newly constructed home. The owner does this with the intent of narrowly meeting the letter of the law so they are still permitted to only pay a nominal VLF. Comparatively, a single-family home owner, when rebuilding his or her house to be essentially the same as new, is reassessed under Proposition 13 guidelines, with the property taxes increasing to an amount relative to the increase in the property’s overall value. If a mobilehome owner completely rebuilds a pre-1980 structure, this bill requires them to pay property taxes like other homeowners instead of a much smaller VLF. These homes are not mobile, nor are they vehicles. Their owners should pay their fair share of property tax like any other California homeowner.

Better solutions. The original version of this bill amended a section of law that sets forth the process by which HCD approves plans to alter or install a manufactured or mobilehome on a foundation. It required the owner at the time of submitting plans to HCD which would rebuild the mobilehome on a foundation system leaving only the chassis to request a transfer from vehicle license fee to property tax.

This version of the bill more effectively addresses the problem by amending the Revenue and Taxation Code sections applicable to manufactured homes and mobilehomes to trigger the shift from VLF to local property taxation when the assessor determines that the manufactured home or mobilehome has been rebuilt to a state where it is no longer mobile and is “substantially equivalent to new.” This standard is commonly used by assessors to determine the degree of new construction that has taken place to any building or fixture when considering a reassessment, and is defined in the Board of Equalization’s Assessor’s Handbook. This new version also makes conforming changes to the Health and Safety Code to ensure that should the assessor determine that the rebuilt state is substantially equivalent to new, HCD would then automatically transfer the manufactured home or mobilehome from VLF to local property tax. HCD and the assessors working together would likely be a stronger deterrent of abuse, and more effective enforcement, as opposed to the previous version of the bill which required home owners to self-report/request a transfer.

Tax levy. This bill provides for a tax levy and will go into effect immediately if passed. It will affect manufactured homes with a construction completion date of January 1, 2016 or later and will not retroactively affect homeowners that have already utilized this loophole.

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

SUPPORT: (Verified 5/26/15)

Los Angeles County Assessor Jeffrey Prang (source)

California Assessors’ Association

Los Angeles County Board of Supervisors

OPPOSITION: (Verified 5/26/15)

None received

ARGUMENTS IN SUPPORT:

The California Assessors’ Association states that this bill addresses an assessment fairness issue with certain manufactured homes. Current loopholes create a disparity between similar properties located in and out of a manufactured home park, and violate the premise that the structure still qualifies as a moveable vehicle. The Los Angeles County Board of Supervisors states that this bill addresses the inadequate assessment of property taxes on manufactured homes that were purchased prior to July 1, 1980, which were extensively rebuilt, but still subject to the ILF.

Prepared by: Christine Hochmuth / T. & H. / (916) 651-4121

5/27/15 11:22:50

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

MANUFACTURED HOUSING: VEHICLE LICENSE FEE: PROPERTY TAXATION

Requires owners of mobilehomes or manufactured homes to request local property taxation when affixing the home to the ground but retaining the original chassis.

Background and Existing Law

Section 1 of Article XIII of the California Constitution provides that all property is taxable unless explicitly exempted by the Constitution or federal law. The Constitution limits the maximum amount of any ad valorem taxes on real property at 1% of full cash value and precludes reassessment unless the property is newly constructed or changes ownership.

Mobilehomes and manufactured homes are different than traditional residential properties in California, especially for property tax purposes. The Department of Housing and Community Development (HCD) maintains a title registry of all mobilehomes and manufactured homes in the state. Prior to 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of the property tax; however, the Legislature required any mobilehomes sold after July 1, 1980 to pay the property tax as personal property. Any new mobilehomes sold in the state are automatically placed on the local property tax roll. Additionally, individuals can elect to pay local property taxes instead of paying the ILF by making a request to HCD. HCD must inform counties of new registrations, title transfers, and conversions to local property taxation each month. The difference between the two taxes can be significant: ILF is .65 percent of pre-1980 value depreciated according to a statutory schedule, and usually totals between $16 and $80, while the property tax would generally total 1% of its assessed value.

A property owner must first obtain a building permit from HCD to install a mobilehome, manufactured home, or modular home on the original foundation. HCD will only approve new construction that allows the home to be moved on its original chassis, or else, it’s subject to local property taxation as personal property. If HCD approves the permit and grants a certificate of occupancy, it must record a document in the county recorder’s office within five days naming the owner of the real property and declaring that the mobilehome, manufactured home, or commercial modular home has been affixed to the real property by installation on a foundation.

The Los Angeles County Assessor noticed that current mobilehome owners in areas with high land values would tear down a current home, and replace it with a newly built one, while keeping its original steel chassis. HCD approved these changes, which they now admit was done in error, because these rebuilds are no longer movable on their original chassis. However, taxpayers have already completed the rebuilds, and avoided significant taxes. The Los Angeles County Assessor wants homes similarly converted in the future to pay the property tax as personal property instead.

Proposed Law

Senate Bill 434 requires an owner of a manufactured home or mobilehome currently subject to the vehicle license fee to request a transfer to local property tax when he or she submits building plans to HCD that rebuilds the home in a way that leaves only the chassis of the original home in place. The measure also makes conforming changes.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. According to the author, “SB 434 addresses an exploitation of tax law by a small but sophisticated subset of mobile home owners. Under current statute, owners of mobile homes first purchased prior to 1980 are taxed at a rate of between $16 and $80 annually, because the home is considered a vehicle. These homes, typically over 35 years old and constructed of aluminum siding with a flat roof, are often owned by residents of modest means with fixed incomes. An issue of fairness arises when certain owners choose to entirely and sometimes opulently rebuild their homes, retaining only the steel chassis of the original structure, and nothing else, surrounded by the new foundation, and under the floor of the newly-constructed home. The savvy owner does this with the sole and explicit intent of narrowly meeting the letter of the law so he or she is still permitted to only pay a nominal vehicle license fee. Compare this to the case of an average single family home owner, who, when rebuilding his or her house to be essentially the same as new, is reassessed under Proposition 13 guidelines, with the property taxes increasing to an amount relative to the increase in the property’s overall value. As a simple matter of fairness, if a mobile home owner completely rebuilds a pre-1980 structure, SB 434 would require them to pay property taxes like other homeowners instead of a much smaller vehicle license fee. The bill is not retroactive, and would only impact construction undertaken beginning in 2016. Stripping a 35-year-old mobile home down to the chassis and building a multi-million dollar structure around it, just so the home can be taxed like a vehicle, is dishonest. These homes aren’t mobile, nor are they vehicles. Their owners should pay their fair share of property tax like any other California homeowner.”

2. Another way? Currently, SB 434 amends Section 18551of the Health and Safety Code, a section of law that sets forth the process by which HCD approves plans to alter or install a mobilehome or manufactured home on a foundation. A potentially more effective way would be to instead amend Revenue and Taxation Code sections applicable to mobilehomes and manufactured homes to trigger the shift from ILF to local property taxation when the assessor determines that the mobilehome or manufactured home has been rebuilt to a state where it is no longer mobile, and “substantially equivalent to new.” This standard is commonly used by assessors to determine the degree of new construction that has taken place to any building or fixture when considering a reassessment, and is defined in the Board of Equalization’s Assessor’s Handbook. Amendments should also include conforming changes to the Health and Safety Code to ensure that should the assessor determine that the rebuilt state is substantially equivalent to new, HCD would then automatically transfer the mobilehome or manufactured home from ILF to local property tax.

3. Rounding up horses. SB 434 would provide that whenever HCD receives plans in the future that would rebuild the home in a way that only retains the original chassis; however, those who already received HCD approval and continue to pay the ILF would remain unaffected. The measure could instead direct assessors to revalue these homes in the next taxable year, requiring these homeowners to pay property tax in the future based on the newly enrolled value. However, this amendment will likely cause Legislative Counsel to rekey the measure as a 2/3 vote tax increase.

4. Incoming! The Senate Transportation and Housing Committee approved SB 434 by a vote of 9 to 0 on April 21, 2015.

Support and Opposition

(4/23/15)

Support: California Assessors’ Association; Los Angeles County Assessor Jeffrey Prang; Los Angeles County Board of Supervisors.

Opposition: Western Manufactured Housing Association (unless amended)

-- END --

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

MANUFACTURED HOUSING: VEHICLE LICENSE FEE: PROPERTY TAXATION

Requires owners of mobilehomes or manufactured homes to request local property taxation when affixing the home to the ground but retaining the original chassis.

Background and Existing Law

Section 1 of Article XIII of the California Constitution provides that all property is taxable unless explicitly exempted by the Constitution or federal law. The Constitution limits the maximum amount of any ad valorem taxes on real property at 1% of full cash value and precludes reassessment unless the property is newly constructed or changes ownership.

Mobilehomes and manufactured homes are different than traditional residential properties in California, especially for property tax purposes. The Department of Housing and Community Development (HCD) maintains a title registry of all mobilehomes and manufactured homes in the state. Prior to 1980, all mobilehomes paid an in-lieu fee (ILF) to HCD instead of the property tax; however, the Legislature required any mobilehomes sold after July 1, 1980 to pay the property tax as personal property. Any new mobilehomes sold in the state are automatically placed on the local property tax roll. Additionally, individuals can elect to pay local property taxes instead of paying the ILF by making a request to HCD. HCD must inform counties of new registrations, title transfers, and conversions to local property taxation each month. The difference between the two taxes can be significant: ILF is .65 percent of pre-1980 value depreciated according to a statutory schedule, and usually totals between $16 and $80, while the property tax would generally total 1% of its assessed value.

A property owner must first obtain a building permit from HCD to install a mobilehome, manufactured home, or modular home on the original foundation. HCD will only approve new construction that allows the home to be moved on its original chassis, or else, it’s subject to local property taxation as personal property. If HCD approves the permit and grants a certificate of occupancy, it must record a document in the county recorder’s office within five days naming the owner of the real property and declaring that the mobilehome, manufactured home, or commercial modular home has been affixed to the real property by installation on a foundation.

The Los Angeles County Assessor noticed that current mobilehome owners in areas with high land values would tear down a current home, and replace it with a newly built one, while keeping its original steel chassis. HCD approved these changes, which they now admit was done in error, because these rebuilds are no longer movable on their original chassis. However, taxpayers have already completed the rebuilds and avoided significant taxes. The Los Angeles County Assessor wants homes similarly converted in the future to pay the property tax as personal property instead.

Proposed Law

Senate Bill 434 requires an owner of a manufactured home or mobilehome currently subject to the vehicle license fee to request a transfer to local property tax when he or she submits building plans to HCD that rebuilds the home in a way that leaves only the chassis of the original home in place. The measure also makes conforming changes.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. According to the author, “SB 434 addresses an exploitation of tax law by a small but sophisticated subset of mobile home owners. Under current statute, owners of mobile homes first purchased prior to 1980 are taxed at a rate of between $16 and $80 annually, because the home is considered a vehicle. These homes, typically over 35 years old and constructed of aluminum siding with a flat roof, are often owned by residents of modest means with fixed incomes. An issue of fairness arises when certain owners choose to entirely and sometimes opulently rebuild their homes, retaining only the steel chassis of the original structure, and nothing else, surrounded by the new foundation, and under the floor of the newly-constructed home. The savvy owner does this with the sole and explicit intent of narrowly meeting the letter of the law so he or she is still permitted to only pay a nominal vehicle license fee. Compare this to the case of an average single family home owner, who, when rebuilding his or her house to be essentially the same as new, is reassessed under Proposition 13 guidelines, with the property taxes increasing to an amount relative to the increase in the property’s overall value. As a simple matter of fairness, if a mobile home owner completely rebuilds a pre-1980 structure, SB 434 would require them to pay property taxes like other homeowners instead of a much smaller vehicle license fee. The bill is not retroactive, and would only impact construction undertaken beginning in 2016. Stripping a 35-year-old mobile home down to the chassis and building a multi-million dollar structure around it, just so the home can be taxed like a vehicle, is dishonest. These homes aren’t mobile, nor are they vehicles. Their owners should pay their fair share of property tax like any other California homeowner.”

2. Of barn doors. The Los Angeles County Assessor states that between 50 and 100 of these conversions occur each year, mostly in areas with high land values, so the revenue impact of the avoided taxes and therefore the incentive to avoid them, is likely significant. However, HCD admits that the conversions were approved in error, and won’t approve similar conversions in the future. HCD adds that it will only permit changes so long as the footings can be removed and the unit can be moved. If HCD addresses the measure administratively, the Committee may wish to consider whether the measure is necessary.

3. Rounding up horses. SB 434 would provide that whenever HCD receives plans in the future that would rebuild the home in a way that only retains the original chassis; however, those who already received HCD approval and continue to pay the ILF would remain unaffected. The measure could instead direct assessors to revalue these homes in the next taxable year, requiring these homeowners to pay property tax based on the newly enrolled value. However, this amendment will likely cause Legislative Counsel to rekey the measure as a 2/3 vote tax increase.

4. Honesty. SB 434 identifies a tax loophole whereby mobilehome owners grandfathered into VLF taxation significantly improve their homes tax-free, when the assessor would have normally revalued the home as new construction. The measure relies on HCD’s plan approval authority to ensure compliance. When the owner submits the plan, SB 434 requires him or her to change to the local property tax using the voluntary conversion section of law. This solution presumes a great deal of honesty by the taxpayer, as he or she will likely forego thousands of dollars in tax savings when requesting conversion. Instead, the measure should require HCD to convert the homes automatically, relying on provisions in existing law requiring the department to inform counties of properties the bill converts to property tax. However, directing HCD to do so may cause Legislative Counsel to rekey the measure as fiscal.

5. Personal, not real. Unlike other homes, mobilehomes and manufactured homes are treated as personal property by statute. This treatment accounts for mobilehome and manufactured general tendency to depreciate in value, unlike other homes that usually appreciate, which assessors value as real property subject to a total rate of 1% and limits on reassessment. To provide additional clarity, the Committee may wish to consider amending SB 434 to make a conforming change to Revenue and Taxation Code sections regarding manufactured homes to ensure that any property transferred to local property taxation by SB 434 is taxed as personal, not real, property.

Support and Opposition

(4/23/15)

Support: California Assessors’ Association; Los Angeles County Assessor Jeffrey Prang; Los Angeles County Board of Supervisors.

Opposition: Unknown.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: SB 434 Hearing Date: 4/21/2015

SUBJECT: Manufactured housing: vehicle license fee: property taxation

DIGEST: This bill requires a mobile- or manufactured home owner to request a transfer from the vehicle license fee to local property taxation when they submit building plans that rebuild the home on a foundation system which leaves only the original chassis.

ANALYSIS:

Existing law:

1. Requires the Department of Housing and Community Development (HCD) to establish regulations for manufactured home, mobilehome, and commercial modular foundation systems (referred to hereafter collectively as manufactured homes). These types of homes may be installed on a foundation as either a fixture or improvement to the real property or as a chattel (an item of property other than real estate), each condition dependent upon meeting certain criteria, including obtaining permits, payming of fees, and undergoing proper inspections.

2. Requires a manufactured home owner or contractor to obtain a building permit from HCD before installing a manufactured home on a foundation system.

3. Requires HCD, within five days of the issuance of the certificate of occupancy for the manufactured home, to record a document with a county recorder’s office naming the owner of the real property and declaring that a manufactured home has been affixed to that real property by installation on a foundation system.

4. Requires that manufactured homes originally purchased new on or after July 1, 1980 be automatically subject to local property taxes (LPT). If purchased new prior to that date, the prior owner could voluntarily convert the annual vehicle license fee (VLF) to local taxation though HCD. Owners of manufactured homes not subject to local property tax (LPT) must pay a vehicle license fee (VLF) to HCD. The annual amount of the fee is a sum equal to 0.65 percent of the market value of the manufactured home.

This bill requires an owner of a manufactured home that is currently subject to the VLF to request a transfer to LPT at the time they submit building plans to, and receive building permits from, HCD when the building plans rebuild the manufactured home on a foundation system leaving only the chassis of the original home in place.

COMMENTS:

1. Purpose of the bill. According to the author, this bill intends to close a loophole where certain older homes, under current code, are considered vehicles and are not subject to property tax rules. This loophole is invoked by retaining the steel chassis of the original manufactured home, surrounded by the new foundation and under the floor of the newly built home.

The author contends that an issue of fairness arises when a VLF home is extensively rebuilt into an essentially new home, and the owner is allowed to continue paying the relatively low annual VLF. In the case of a typical single-family home, when rebuilt to be essentially the same as new, the property is reassessed, and the property taxes will increase to an appropriate amount, based on the increase in the property’s value. However, any home under VLF, no matter how extensively it is reconstructed, is allowed to remain subject to the relatively low annual license fee. This bill seeks to resolve the inequity created by this abuse.

2. Taxation of manufactured homes. Manufactured homes in California are taxed in two ways: via the annual VLF, sometimes known as the In-Lieu Tax (ILT), or as personal property via LPT. HCD administers the program involving homes subject to the VLF. A manufactured home first sold prior to July 1, 1980, is subject to the annual VLF, under which a homeowner will pay between $16 and $80 per year (0.65% of the original pre-1980 value, determined by a manufactured home “blue book”). This is much less than the amount owed if the home were subject to LPT. LPT includes a 1% rate based on a property’s assessed value, and the assessment increases each year by 2%.

VLF is a state revenue, whereas LPT is a local revenue, so this bill has the potential to shift revenues to local jurisdictions. However, the manufactured homes that utilized the loophole this bill intends to close currently number less than 100, and this bill does not retroactively affect these existing homes. This bill sets provisions for future projects at the time of building permit submission.

3. Support for the bill. The Assessor for the County of Los Angeles states that this bill ensures that extensively rebuilt manufactured homes are properly assessed and taxed accordingly. They claim this bill is not intended to affect manufactured-home homeowners who make basic repairs or perform essential maintenance on their homes; it only applies to homes that are extensively rebuilt. The California Assessors’ Association states that this bill addresses an assessment fairness issue with certain manufactured homes.

4. Opposition to the bill. The Western Manufactured Housing Communities Association states that the issue this bill is attempting to address has already been taken care of at the administrative level, by virtue of bringing this issue to HCD’s attention. Opponents also contend that current rebuilds that are the examples for this legislation are being reassessed at the rebuilt value. Further, they are concerned with the interpretations that arise in the legislative counsel digest which refers to alterations on these homes being done on real property, whereas the code section that this bill amends pertains to mobilehomes that are installed in manufactured housing communities on leased land.

5. Double referral. This bill has been double-referred to the Governance and Finance Committee.

RELATED LEGISLATION:

AB 379 (Brown, Chapter 137, Statutes of 2013) — changes the process whereby the law deems a mobilehome a fixture or improvement to real property.

SB 259 (Haynes, Chapter 423, Statutes of 1997) — allows manufactured homes, mobilehomes, or commercial coaches to be installed on a foundation system as either a fixture or an improvement to real property, or as a chattel. SB 259 specifies that manufactured homes or mobilehomes on a foundation system as chattel are subject to permit requirements and their foundations must meet minimum standards.

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

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

April 15, 2015.)

SUPPORT:

County of Los Angeles Assessor (Sponsor)

California Assessors’ Association

OPPOSITION:

Western Manufactured Housing Communities Association

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