The California Fair Employment and Housing Act establishes the Department of Fair Employment and Housing, under the direction of an executive officer to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful under the act. The act establishes procedures for the prevention and elimination of discrimination in housing made unlawful under its provisions, including authorizing any person claiming to be aggrieved by an alleged violation of specified provisions to file a verified complaint in writing with the department. The act requires the department to investigate an alleged violation and, in the case of failure to eliminate a violation that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, requires the director to file a civil action in the name of the department on behalf of that person.

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks. That law, among other things, requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions, requires the management to meet and consult with homeowners, either individually, collectively, or with representatives of a group of homeowners, on specified matters within 30 days of a written request to do so, and prohibits management from terminating or refusing to renew tenancy within a park, except for specified reasons and upon giving written notice to the homeowner.

This bill would, on and after July 1, 2020, until January 1, 2023, extend the application of the above-described enforcement procedures for the prevention and elimination of discrimination in housing under the California Fair Employment and Housing Act to apply to the prevention and elimination of actions made unlawful under the Mobilehome Residency Law against homeowners or residents of mobilehomes, as provided. The bill would prescribe requirements for an aggrieved home owner or resident to follow when filing a complaint in this regard and for the department in investigating these complaints. The bill would also authorize, on and after July 1, 2020, until January 1, 2023, the department to investigate potential violations of the Mobilehome Residency Law that are discovered during the course of an existing formal investigation, but for which the department has not received a formal complaint.

The bill would require the department, by no later than July 1, 2018, and by no later than July 1 of each subsequent year until January 1, 2023, to assess upon the management of a mobilehome park subject to the Mobilehome Residency Law and collect a registration fee of $10 for each mobilehome lot located within the mobilehome park for the purpose of providing the complaint resolution process described in this bill. The bill would authorize management to pass this fee on to the homeowners and residents within the mobilehome park.

The bill, until January 1, 2023, would require all fees and fines collected pursuant to this bill to be deposited in the Mobilehome Residency Law Protection Fund, which this bill would establish in the State Treasury. The bill would make all moneys in the fund available to the department, upon appropriation by the Legislature, for costs of administering this bill.

The California Fair Employment and Housing Act establishes the Department of Fair Employment and Housing, under the direction of an executive officer to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful under the act. The act establishes procedures for the prevention and elimination of discrimination in housing made unlawful under its provisions, including authorizing any person claiming to be aggrieved by an alleged violation of specified provisions to file a verified complaint in writing with the department. The act requires the department to investigate an alleged violation and, in the case of failure to eliminate a violation that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, requires the director to file a civil action in the name of the department on behalf of that person.

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks. That law, among other things, requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions, requires the management to meet and consult with homeowners, either individually, collectively, or with representatives of a group of homeowners, on specified matters within 30 days of a written request to do so, and prohibits management from terminating or refusing to renew tenancy within a park, except for specified reasons and upon giving written notice to the homeowner.

This bill would, on and after July 1, 2019, 2020, until January 1, 2024, 2023, extend the application of the above-described enforcement procedures for the prevention and elimination of discrimination in housing under the California Fair Employment and Housing Act to apply to the prevention and elimination of actions made unlawful under the Mobilehome Residency Law against homeowners or residents of mobilehomes, as provided. The bill would prescribe requirements for an aggrieved home owner or resident to follow when filing a complaint in this regard and for the department in investigating these complaints. The bill would also authorize, on and after July 1, 2019, 2020, until January 1, 2024, 2023, the department to investigate potential violations of the Mobilehome Residency Law that are discovered during the course of an existing formal investigation, but for which the department has not received a formal complaint.

The bill would require the department, by no later than July 1, 2018, and by no later than July 1 of each subsequent year until January 1, 2024, 2023, to assess upon the management of a mobilehome park subject to the Mobilehome Residency Law and collect a registration fee of $10 for each mobilehome lot located within the mobilehome park for the purpose of providing the complaint resolution process described in this bill. The bill would authorize management to pass this fee on to the homeowners and residents within the mobilehome park.

The bill, until January 1, 2024, 2023, would require all fees and fines collected pursuant to this bill to be deposited in the Mobilehome Residency Law Protection Fund, which this bill would establish in the State Treasury. The bill would make all moneys in the fund available to the department, upon appropriation by the Legislature, for costs of administering this bill.

The California Fair Employment and Housing Act establishes the Department of Fair Employment and Housing, under the direction of an executive officer to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful under the act. The act establishes procedures for the prevention and elimination of discrimination in housing made unlawful under its provisions, including authorizing any person claiming to be aggrieved by an alleged violation of specified provisions to file a verified complaint in writing with the department. The act requires the department to investigate an alleged violation and, in the case of failure to eliminate a violation that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, requires the director to file a civil action in the name of the department on behalf of that person.

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks. That law, among other things, requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions, requires the management to meet and consult with homeowners, either individually, collectively, or with representatives of a group of homeowners, on specified matters within 30 days of a written request to do so, and prohibits management from terminating or refusing to renew tenancy within a park, except for specified reasons and upon giving written notice to the homeowner.

This bill, bill would, on and after July 1, 2019, until January 1, 2024, extend the application of the above-described enforcement procedures for the prevention and elimination of discrimination in housing under the California Fair Employment and Housing Act to apply to the prevention and elimination of actions made unlawful under the Mobilehome Residency Law against homeowners or residents of mobilehomes, as provided. The bill would prescribe requirements for an aggrieved home owner or resident to follow when filing a complaint in this regard. regard and for the department in investigating these complaints. The bill, bill would also authorize, on and after July 1, 2019, until January 1, 2024, the department to investigate potential violations of the Mobilehome Residency Law that are discovered during the course of an existing formal investigation, but for which the department has not received a formal complaint.

The bill would require the department, by no later than July 1, 2018, and by no later than July 1 of each subsequent year, year until January 1, 2024, to assess upon the management of a mobilehome park subject to the Mobilehome Residency Law and collect a registration fee of $5 $10 for each mobilehome lot located within the mobilehome park for the purpose of providing the complaint resolution process described in this bill. The bill would authorize management to pass this fee on to the owner of each mobilehome. homeowners and residents within the mobilehome park.

The bill bill, until January 1, 2024, would require all fees and fines collected pursuant to this bill to be deposited in the Mobilehome Residency Law Protection Fund, which this bill would establish in the State Treasury. The bill would continuously appropriate the make all moneys in the fund available to the department department, upon appropriation by the Legislature, for costs of administering this bill.

The California Fair Employment and Housing Act establishes the Department of Fair Employment and Housing, under the direction of an executive officer to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful under the act. The act establishes procedures for the prevention and elimination of discrimination in housing made unlawful under its provisions, including authorizing any person claiming to be aggrieved by an alleged violation of specified provisions to file a verified complaint in writing with the department. The act requires the department to investigate an alleged violation and, in the case of failure to eliminate a violation that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, requires the director to file a civil action in the name of the department on behalf of that person.

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks. That law, among other things, requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions, requires the management to meet and consult with homeowners, either individually, collectively, or with representatives of a group of homeowners, on specified matters within 30 days of a written request to do so, and prohibits management from terminating or refusing to renew tenancy within a park, except for specified reasons and upon giving written notice to the homeowner.

This bill would bill, would, on and after July 1, 2019, extend the application of the above-described enforcement procedures for the prevention and elimination of discrimination in housing under the California Fair Employment and Housing Act to apply to the prevention and elimination of actions made unlawful under the Mobilehome Residency Law against homeowners or residents of mobilehomes, as provided. The bill would prescribe requirements for an aggrieved home owner or resident to follow when filing a complaint in this regard. The bill bill, would also authorize authorize, on and after July 1, 2019, the department to investigate potential violations of the Mobilehome Residency Law that are discovered during the course of an existing formal investigation, but for which the department has not received a formal complaint.

The bill would require the department department, by no later than July 1, 2018, and by no later than July 1 of each subsequent year, to annually assess upon the management of a mobilehome park subject to the Mobilehome Residency Law and collect a registration fee of $5 for each mobilehome located within the mobilehome park for the purpose of providing the complaint resolution process described in this bill. The bill would authorize management to pass this fee on to the owner of each mobilehome.

The bill would require all fees and fines collected pursuant to this bill to be deposited in the Mobilehome Residency Law Protection Fund, which this bill would establish in the State Treasury. The bill would continuously appropriate the moneys in the fund to the department for costs of administering this bill.

The California Fair Employment and Housing Act establishes the Department of Fair Employment and Housing, under the direction of an executive officer to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful under the act. The act establishes procedures for the prevention and elimination of discrimination in housing made unlawful under its provisions, including authorizing any person claiming to be aggrieved by an alleged violation of specified provisions to file a verified complaint in writing with the department. The act requires the department to investigate an alleged violation and, in the case of failure to eliminate a violation that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, requires the director to file a civil action in the name of the department on behalf of that person.

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks. That law, among other things, requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions, requires the management to meet and consult with homeowners, either individually, collectively, or with representatives of a group of homeowners, on specified matters within 30 days of a written request to do so, and prohibits management from terminating or refusing to renew tenancy within a park, except for specified reasons and upon giving written notice to the homeowner.

This bill would extend the application of the above-described enforcement procedures for the prevention and elimination of discrimination in housing under the California Fair Employment and Housing Act to apply to the prevention and elimination of actions made unlawful under the Mobilehome Residency Law against homeowners or residents of mobilehomes, as provided. The bill would also authorize the department to investigate potential violations of the Mobilehome Residency Law that are discovered during the course of an existing formal investigation, but for which the department has not received a formal complaint.

The bill would require the department to annually assess upon the management of a mobilehome park subject to the Mobilehome Residency Law a registration fee of $5 for each mobilehome located within the mobilehome park for the purpose of providing the complaint resolution process described in this bill. The bill would authorize management to pass this fee on to the owner of each mobilehome.

The bill would require all fees and fines collected pursuant to this bill to be deposited in the Mobilehome Residency Law Protection Fund, which this bill would establish in the State Treasury. The bill would continuously appropriate the moneys in the fund to the department for costs of administering this bill.

The Mobilehome Residency Law, Law governs the terms and conditions of residency in mobilehome parks and parks. That law, among other things, requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions. Existing law requires the management of a mobilehome park to return an executed copy of the rental agreement to the homeowner within 15 business days after the management has received the rental agreement signed by the homeowner. provisions, requires the management to meet and consult with homeowners, either individually, collectively, or with representatives of a group of homeowners, on specified matters within 30 days of a written request to do so, and prohibits management from terminating or refusing to renew tenancy within a park, except for specified reasons and upon giving written notice to the homeowner.

The bill would require the Department of Housing and Community Development department to annually assess upon the management of a mobilehome park subject to the Mobilehome Residency Law a registration fee of $5 for each mobilehome located within the mobilehome park for the purpose of providing the complaint resolution process described in this bill. The bill would authorize management to pass this fee on to the owner of each mobilehome.

The bill would require all fees and fines collected pursuant to this bill to be deposited in the Mobilehome Residency Law Protection Fund, which would be established this bill would establish in the State Treasury, and made available, upon appropriation, to the Department of Housing and Community Development and the Department of Fair Employment and Housing Treasury. The bill would continuously appropriate the moneys in the fund to the department for costs of administering this bill.

Existing law, the Mobilehome Residency Law, governs the terms and conditions of residency in mobilehome parks and requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions. Existing law requires the management of a mobilehome park to return an executed copy of the rental agreement to the homeowner within 15 business days after the management has received the rental agreement signed by the homeowner.

Existing law, the Mobilehome Residency Law, governs the terms and conditions of residency in mobilehome parks and requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions. Existing law requires the management of a mobilehome park to return an executed copy of the rental agreement to the homeowner within 15 business days after the management has received the rental agreement signed by the homeowner.

This bill would make nonsubstantive changes to these provisions.

GOVERNOR'S VETO

GV Bill Id:AB 1269

Author:(Mark Stone)

As Enrolled Ver:September 19, 2017

2/3 vote

Original Committee Reference: H. & C.D.

SUMMARY: Establishes the Mobilehome Residents and Senior Protection Act (Act), a dispute resolution and enforcement program within the Department of Fair Employment and Housing (DFEH) to resolve disputes related to the Mobilehome Residency Law (MRL), until January 1, 2023. Specifically, this bill:

1. Provides that it is the intent of the Legislature in enacting this Act to protect and safeguard the most vulnerable mobilehome owners and residents by affording them the enforcement and hearing procedures for housing discrimination.
2. Establishes the Act, which provides mobilehome owners and residents with the existing housing discrimination enforcement and hearing procedures of the DFEH for the enforcement of the MRL.
3. Provides that, on and after July 1, 2020, any homeowner or resident, as defined and claiming to be aggrieved by an alleged violation of any section of the MRL may file with the DFEH a verified complaint in writing that shall state the name and address of the person alleged to have committed the violation complained of, and that shall set forth the particulars of the alleged violation and contain any other information required by DFEH.
4. With respect to the filing of a complaint based upon an alleged violation of the MRL, the following shall apply:
   1. An aggrieved homeowner or resident shall first file a complaint with DFEH prior to pursuing judicial relief, unless the homeowner or residents believes in good faith that the claim requires immediate judicial relief so as to protect a tenancy interest or property right. In such a case, the homeowner or resident may first pursue judicial relief. If this occurs, the homeowner or resident shall notify DFEH that a civil action has been filed with the court by providing DFEH with either a copy of the complaint and the reason for immediate judicial relief, or with a form developed by DFEH for this purpose.
   2. After a complaint is filed with DFEH and no less than 30 days have elapsed from the filing date, a homeowner or resident who is unsatisfied with DFEH's investigation of the complaint or enforcement of the MRL may pursue immediate judicial relief without a final action by DFEH regarding the complaint. The homeowner or resident shall notify DFEH that a civil action has been filed with the court by providing DFEH with either a copy of the complaint or a form developed by DFEH for this purpose.
   3. The failure of a homeowner or resident to file a complaint based upon an alleged violation of the MRL shall not prevent the homeowner or resident from pursuing any and all available remedies, including judicial relief, under the law.
   4. DFEH is not required to complete an investigation of allegations within 100 days after receipt of the complaint if the investigation would cause the DFEH to exceed the funds available within the Mobilehome Residency Law Protection Fund in a given year.
5. Provides that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, or in advance thereof if circumstances warrant, the Director of DFEH shall bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.
6. Requires DFEH to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.
7. Requires, on and after July 1, 2020, DFEH to collect and make available on a publicly searchable Internet database, at a minimum, the following information:
   1. The number of complaints;
   2. The nature of the complaint, including the section of law that is the basis of the complaint; and
   3. The outcome for each complaint.
8. Permits DFEH, on and after July 1, 2020 and in its sole discretion, to investigate potential violations of the MRL that are discovered during the course of an existing investigation, but for which DFEH has not received a formal complaint.
9. Provides that DFEH shall have the authority to adopt any necessary procedural rules to administer complaints and violations of the MRL.
10. Establishes in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act shall be deposited. All moneys in the fund shall be available to DFEH, upon appropriation by the Legislature, for the purpose of administering the Act.
    1. Requires DFEH, by no later than July 1, 2018 and by no later than July 1 of each subsequent year, to annually assess upon the management of a mobilehome park and collect a registration fee of $10.00 for each mobilehome lot in the park that is subject to the MRL.
    2. Provides that mobilehome parks may charge the maximum ten dollars of this assessment to homeowners and residents and may collect the amount or portion thereof when rent is due, except that it shall not be passed through in the form of any rent increase.
    3. Requires management to provide a written description of the purpose of the charge to homeowners and residents, which shall include both a description of the amount of the annual fee, along with contact information for DFEH for purposes of obtaining information relating to enforcement of the MRL.
    4. Provides that DFEH may file an action to enforce payment of unpaid registration assessments and late fees in the superior court in the county in which the mobilehome community is located. If DFEH prevails, the mobilehome park management shall pay the department's costs, including reasonable attorney's fees, for the enforcement proceedings.
    5. Requires all receipts from fees, damages or other penalties collected under this article as a result of administering and enforcing the Act, other than those due to a complainant, to be deposited into the Mobilehome Residency Law Protection Fund.
11. Defines "management" as the owner of a mobilehome park or an agent or representative authorized to act on his behalf in connection with matters relating to a tenancy in the park.
12. Defines "mobilehome" as a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code, as specified.
13. Defines "mobilehome park" as an area of land where two or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
14. Defines "homeowner" as a person who has a tenancy in a mobilehome park under a rental agreement.
15. Defines "resident" as a homeowner or other person who lawfully occupies a mobilehome.
16. Includes a sunset of January 1, 2023.
17. Incorporates chaptering amendments with AB 1556 (Mark Stone), Chapter 799, Statutes of 2017.

The Senate amendments:

1. Add a sunset of January 1, 2023.
2. Delay implementation of the investigation and enforcement provisions of the bill until July 1, 2020.
3. Provide that all moneys in the Mobilehome Residency Law Protection Fund shall be available to DFEH, upon appropriation by the Legislature, for the purpose of administering the Act.
4. Increase the bill's annual registration fee to $10.00, up from five, and specifies that this shall be charged for every mobilehome lot in a park that is subject to the MRL.
5. Specify that mobilehome parks may charge the maximum ten dollars of this assessment to homeowners and residents and may collect the amount or portion thereof when rent is due, except that it shall not be passed through in the form of any rent increase.
6. Provide that DFEH is not required to complete an investigation of allegations within 100 days after receipt of the complaint if the investigation would cause the DFEH to exceed the funds available within the Mobilehome Residency Law Protection Fund in a given year.
7. Make technical, clarifying changes.
8. Incorporate chaptering amendments with AB 1556 (Mark Stone).

FISCAL EFFECT: Unknown

COMMENTS: Background: More than 700,000 people live in California's approximately 4,700 mobilehome parks. Mobilehomes are not truly mobile, in that it is often cost prohibitive to relocate them. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000 depending on the size of the home and the distance traveled. A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on, and he or she must pay rent and fees for the land and any community spaces.

The MRL extensively regulates the relationship between landlords and homeowners who occupy a mobilehome park. A limited number of provisions also apply to residents who rent, as opposed to own, their mobilehome. The MRL has two parts: Articles 1 through 8 apply to most mobilehome parks and Article 9 applies to resident-owned parks or parks which are established as a subdivision, cooperative or condominium. The provisions cover many issues including but not limited to the following: 1) the rental and lease contract terms and specific conditions of receipt and delivery of written leases, park rules and regulations, and other mandatory notices; 2) mandatory notice and amendment procedures for mobilehome park rules and regulations; 3) mandatory notice of fees and charges, and increases or changes in them; and 4) specified conditions governing mobilehome park evictions. A dispute that arises pursuant to the application of the MRL generally must be resolved in a civil court of competent jurisdiction.

This bill would create, from July 1, 2020 until January 1, 2023, an MRL enforcement mechanism for homeowners and residents within DFEH, using DFEH's existing procedures for responding to complaints of housing discrimination. DFEH would also be required to produce written informational materials for homeowners and residents, as well as post statistical reports on its website. To fund the program, beginning in 2018 mobilehome parks must pay DFEH an annual registration fee of ten dollars for each mobilehome lot in a park that is subject to the MRL. The parks may pass on this fee to homeowners and residents and may collect it when rent is due, except that it shall not be passed through in the form of any rent increase.

Need for this bill: According to the author, "the only current remedy available to a mobilehome resident when there has been a violation of the MRL is civil litigation. For seniors on fixed incomes as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action. There are two data points that speak to the need for the bill. 1) The State of Washington has tracked outcomes and its annual data from 2011 - 2016 (http://www.atg.wa.gov/program-statistics-and-case-outcomes) indicates that 95% - 98% of all complaints for violations of a similar MRL statute are made by residents. 2) Golden State Manufactured-Home Owners League (GSMOL) has presented members of the Committee with 990 letters (and 1,299 individual mobilehome residents) regarding the need for the bill. A review of those letters highlights specific violations of California's MRL. These violations include selective, inconsistent or no enforcement of park rules, including park owners violating their own park rules of "no subletting" by renting out their mobile homes, but not allowing homeowners to rent out their own mobile homes; interference with home sales; attempts to prevent homeowners from use of the clubhouse, especially for meetings; onsite management failure to keep posted office hours or respond to resident complaints; excessive bullying and threatening behavior by onsite managers; and frivolous charges leading to eviction."

DFEH: DFEH is the largest state civil rights agency in the country with 220 fulltime permanent staff operating out of five offices throughout California. The mission of the DFEH is "is to protect the people of California from unlawful discrimination in employment, housing, and public accommodations and from hate violence and human trafficking." The state's various civil rights laws give DFEH these responsibilities:

1. Engage in public outreach and provide training and technical assistance to employers, business establishments, and housing providers regarding their responsibilities under the law;
2. Investigate discrimination complaints and cases of systemic discrimination;
3. Facilitate mediation and resolution of disputes involving civil rights; and
4. Enforce the laws by prosecuting violations in civil court.

DFEH has existing procedures for, among other things, investigating, conciliating, and enforcing allegations of housing discrimination made unlawful pursuant to FEHA.

The Department of Housing and Community Development (HCD): HCD oversees several areas of mobilehome law, including health and safety standards, registration and titling of mobilehomes and parks, and, through the Mobilehome Ombudsman, assists the public with questions or problems associated with various aspects of mobilehome law. The Mobilehome Ombudsman provides assistance by taking complaints and helping to resolve and coordinate the resolution of those complaints. However, the Ombudsman does not have enforcement authority for the MRL, and cannot arbitrate, mediate, negotiate, or provide legal advice on mobilehome park rent disputes, lease or rental agreements, but may provide general information on these issues.

HCD also inspects parks and mobilehomes for health and safety issues. Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements under the Health and Safety Code (Mobilehome Parks Act) and Title 25. The program is funded through a $4 fee that the property owner may charge half ($2) to the homeowners. In addition to the MPM program, HCD also responds to health and safety complaints under the Mobilehome Parks Act.

Washington Manufactured Housing Dispute Resolution Program: Washington State has approximately 1,357 registered mobilehome communities and 61,545 rented mobile home lots throughout the state. In 2007, the Washington State Legislature recognized that there are factors unique to the relationship between a mobilehome tenant and their landlord, as well as the difficulty and expense of moving and relocating a mobilehome. In response, the State Legislature passed a law to authorize the Attorney General's (AG) Office to administer the Manufactured Housing Dispute Resolution Program (MHDRP). It also authorizes the Department of Revenue (DOR) to register mobilehome communities and collect registration fees to fund the program. Landlords are required to register each pad in their park with the department and pay $10 per year for each space that is rented to a person who owns their home. Landlords may charge each homeowner a maximum of $5 per year of this assessment. The fee is then used to fund the MHDRP and cover the DOR registration and licensing costs. Both homeowners and landlords may file a request for dispute resolution under this program, and the AG's Office may negotiate with opposing parties, determine whether further investigation is needed, decide whether a violation has occurred, and issue fines and other penalties when appropriate in order to bring compliance with the law.

The MHDRP is required to provide an annual report of its activities to the Washington State Legislature, as well as statistical reports for review on its website. The 2016 Annual Report provides that, during 2016, the program received complaints from 228 mobilehome residents and four landlords. The top three types of complaints filed by residents were about rental agreements, utility issues, and park rules and enforcement. The AG initiated formal investigations in 15% of complaints.

Background: This bill would create a pilot program until 2023 to apply DFEH's housing discrimination complaint procedures to the investigation and enforcement of alleged MRL violations, such as unlawful rent increases or disputes about park rules and regulations. DFEH is the state's civil rights agency, and is tasked with preventing and eliminating discrimination based on membership in a protected class. It has never had a role in enforcing the MRL, but does have extensive expertise in investigating, conciliating, and enforcing allegations of a wide variety of housing discrimination by landlords, real estate agents, home sellers, builders, mortgage lenders, and others. This includes allegations involving mobilehome parks and residents.

There are approximately 393,000 mobilehome spaces in the state. This bill would require DFEH to annually assess upon the management of a mobilehome park a registration fee of $10.00 for each mobilehome lot in the park that is subject to the MRL, and would authorize parks to charge this fee to homeowners and residents, although not through a rent increase. This would likely generate a little under $4 million per year.

Senate amendments make several changes, including adding a sunset of January 1, 2023 and increasing the bill's annual assessment from $5 to $10 per mobilehome lot in a park. The amendments also delay implementation of the investigation and enforcement provisions of the bill to July 1, 2020, to allow for the collection of fees to ensure DFEH has the necessary resources covered once the program begins. During the pilot program (July 1, 2020 - Jan. 1, 2023), DFEH also has the option to pause MRL violation investigations should there not be enough funding to continue the program.

Arguments in support: According to supporters, including over 1,300 mobilehome park residents, if this bill is signed into law, it will provide mobilehome owners a realistic and affordable way to challenge violations of the MRL to better protect property rights and residents' investments in their homes. The Golden State Manufactured Home Owners League (GSMOL) contends that mobilehome owners have "purchased and maintained the largest classification of unsubsidized, affordable housing in our state. As California works toward affordable housing solutions, we need your help to protect us from displacement by park owners who violate the law."

Arguments in opposition: Opponents argue that MRL enforcement is an inappropriate role for DFEH. Opponent Western Manufactured Housing Communities Association (WMA) contends that most of DFEH's duties under this bill are already statutorily mandated to be performed by HCD. WMA suggests that the best solution to help resolve resident complaints is to adequately fund HCD's Office of the Mobilehome Ombudsman to perform their current duties as outlined in statute and not create a new program in a different department.

Related legislation:

AB 1205 (Wieckowski) of 2013: Would have enacted the Mobilehome Residency Law Mediation Act within the MRL to establish a mediation program for alleged violations of the MRL, including investigation of alleged violations of the MRL and determination and notice of violations, to be administered by an unspecified department. This bill died in the Assembly Committee on Housing and Community Development.

AB 1803 (Nava) of 2010: Would have created the Mobilehome Residency Law Mediation Act, a dispute resolution program within the Attorney General's Office to resolve disputes related to the MRL. This bill failed passage in the Assembly Committee on Housing and Community Development.

GOVERNOR'S VETO MESSAGE:

Beginning July 1, 2020, this bill would require the Department of Fair Employment and Housing to enforce the Mobilehome Residency Law and conduct mandatory dispute resolution between mobilehome residents and park owners.

While well-intentioned, this bill would significantly expand the operations and duties of the Department of Fair Employment and Housing without an adequate fee structure that supports the additional workload.

I believe increased education and enforcement are needed to protect mobilehome owners and residents. For this reason, I am directing the Department of Housing and Community Development to work with the author to make changes to the Mobilehome Assistance Center to address the concerns raised by the sponsors.

Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0002496

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1269

Author:(Mark Stone)

As Amended Ver:September 7, 2017

Majority vote

Original Committee Reference: H. & C.D.

SUMMARY: Establishes the Mobilehome Residents and Senior Protection Act (Act), a dispute resolution and enforcement program within the Department of Fair Employment and Housing (DFEH) to resolve disputes related to the Mobilehome Residency Law (MRL), until January 1, 2023. Specifically, this bill:

1. Provides that it is the intent of the Legislature in enacting this Act to protect and safeguard the most vulnerable mobilehome owners and residents by affording them the enforcement and hearing procedures for housing discrimination.
2. Establishes the Act, which provides mobilehome owners and residents with the existing housing discrimination enforcement and hearing procedures of the DFEH for the enforcement of the MRL.
3. Provides that, on and after July 1, 2020, any homeowner or resident, as defined and claiming to be aggrieved by an alleged violation of any section of the MRL may file with the DFEH a verified complaint in writing that shall state the name and address of the person alleged to have committed the violation complained of, and that shall set forth the particulars of the alleged violation and contain any other information required by DFEH.
4. With respect to the filing of a complaint based upon an alleged violation of the MRL, the following shall apply:
   1. An aggrieved homeowner or resident shall first file a complaint with DFEH prior to pursuing judicial relief, unless the homeowner or residents believes in good faith that the claim requires immediate judicial relief so as to protect a tenancy interest or property right. In such a case, the homeowner or resident may first pursue judicial relief. If this occurs, the homeowner or resident shall notify DFEH that a civil action has been filed with the court by providing DFEH with either a copy of the complaint and the reason for immediate judicial relief, or with a form developed by DFEH for this purpose.
   2. After a complaint is filed with DFEH and no less than 30 days have elapsed from the filing date, a homeowner or resident who is unsatisfied with DFEH's investigation of the complaint or enforcement of the MRL may pursue immediate judicial relief without a final action by DFEH regarding the complaint. The homeowner or resident shall notify DFEH that a civil action has been filed with the court by providing DFEH with either a copy of the complaint or a form developed by DFEH for this purpose.
   3. The failure of a homeowner or resident to file a complaint based upon an alleged violation of the MRL shall not prevent the homeowner or resident from pursuing any and all available remedies, including judicial relief, under the law.
   4. DFEH is not required to complete an investigation of allegations within 100 days after receipt of the complaint if the investigation would cause the DFEH to exceed the funds available within the Mobilehome Residency Law Protection Fund in a given year.
5. Provides that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, or in advance thereof if circumstances warrant, the Director of DFEH shall bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.
6. Requires DFEH to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.
7. Requires, on and after July 1, 2020, DFEH to collect and make available on a publicly searchable Internet database, at a minimum, the following information:
   1. The number of complaints;
   2. The nature of the complaint, including the section of law that is the basis of the complaint; and
   3. The outcome for each complaint.
8. Permits DFEH, on and after July 1, 2020 and in its sole discretion, to investigate potential violations of the MRL that are discovered during the course of an existing investigation, but for which DFEH has not received a formal complaint.
9. Provides that DFEH shall have the authority to adopt any necessary procedural rules to administer complaints and violations of the MRL.
10. Establishes in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act shall be deposited. All moneys in the fund shall be available to DFEH, upon appropriation by the Legislature, for the purpose of administering the Act.
    1. Requires DFEH, by no later than July 1, 2018 and by no later than July 1 of each subsequent year, to annually assess upon the management of a mobilehome park and collect a registration fee of $10.00 for each mobilehome lot in the park that is subject to the MRL.
    2. Provides that mobilehome parks may charge the maximum ten dollars of this assessment to homeowners and residents and may collect the amount or portion thereof when rent is due, except that it shall not be passed through in the form of any rent increase.
    3. Requires management to provide a written description of the purpose of the charge to homeowners and residents, which shall include both a description of the amount of the annual fee, along with contact information for DFEH for purposes of obtaining information relating to enforcement of the MRL.
    4. Provides that DFEH may file an action to enforce payment of unpaid registration assessments and late fees in the superior court in the county in which the mobilehome community is located. If DFEH prevails, the mobilehome park management shall pay the department's costs, including reasonable attorney's fees, for the enforcement proceedings.
    5. Requires all receipts from fees, damages or other penalties collected under this article as a result of administering and enforcing the Act, other than those due to a complainant, to be deposited into the Mobilehome Residency Law Protection Fund.
11. Defines "management" as the owner of a mobilehome park or an agent or representative authorized to act on his behalf in connection with matters relating to a tenancy in the park.
12. Defines "mobilehome" as a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code, as specified.
13. Defines "mobilehome park" as an area of land where two or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
14. Defines "homeowner" as a person who has a tenancy in a mobilehome park under a rental agreement.
15. Defines "resident" as a homeowner or other person who lawfully occupies a mobilehome.
16. Includes a sunset of January 1, 2023.
17. Incorporates chaptering amendments with AB 1556 (Stone) of the current legislative session.

The Senate amendments:

1. Add a sunset of January 1, 2023.
2. Delay implementation of the investigation and enforcement provisions of the bill until July 1, 2020.
3. Provide that all moneys in the Mobilehome Residency Law Protection Fund shall be available to DFEH, upon appropriation by the Legislature, for the purpose of administering the Act.
4. Increase the bill's annual registration fee to $10.00, up from five, and specifies that this shall be charged for every mobilehome lot in a park that is subject to the MRL.
5. Specify that mobilehome parks may charge the maximum ten dollars of this assessment to homeowners and residents and may collect the amount or portion thereof when rent is due, except that it shall not be passed through in the form of any rent increase.
6. Provide that DFEH is not required to complete an investigation of allegations within 100 days after receipt of the complaint if the investigation would cause the DFEH to exceed the funds available within the Mobilehome Residency Law Protection Fund in a given year.
7. Make technical, clarifying changes.
8. Incorporate chaptering amendments with AB 1556 (Stone).

FISCAL EFFECT: Unknown

COMMENTS: Background: More than 700,000 people live in California's approximately 4,700 mobilehome parks. Mobilehomes are not truly mobile, in that it is often cost prohibitive to relocate them. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000 depending on the size of the home and the distance traveled. A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on, and he or she must pay rent and fees for the land and any community spaces.

The MRL extensively regulates the relationship between landlords and homeowners who occupy a mobilehome park. A limited number of provisions also apply to residents who rent, as opposed to own, their mobilehome. The MRL has two parts: Articles 1 through 8 apply to most mobilehome parks and Article 9 applies to resident-owned parks or parks which are established as a subdivision, cooperative or condominium. The provisions cover many issues including but not limited to the following: 1) the rental and lease contract terms and specific conditions of receipt and delivery of written leases, park rules and regulations, and other mandatory notices; 2) mandatory notice and amendment procedures for mobilehome park rules and regulations; 3) mandatory notice of fees and charges, and increases or changes in them; and 4) specified conditions governing mobilehome park evictions. A dispute that arises pursuant to the application of the MRL generally must be resolved in a civil court of competent jurisdiction.

This bill would create, from July 1, 2020 until January 1, 2023, an MRL enforcement mechanism for homeowners and residents within DFEH, using DFEH's existing procedures for responding to complaints of housing discrimination. DFEH would also be required to produce written informational materials for homeowners and residents, as well as post statistical reports on its website. To fund the program, beginning in 2018 mobilehome parks must pay DFEH an annual registration fee of ten dollars for each mobilehome lot in a park that is subject to the MRL. The parks may pass on this fee to homeowners and residents and may collect it when rent is due, except that it shall not be passed through in the form of any rent increase.

Need for this bill: According to the author, "the only current remedy available to a mobilehome resident when there has been a violation of the MRL is civil litigation. For seniors on fixed incomes as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action. There are two data points that speak to the need for the bill. 1) The State of Washington has tracked outcomes and its annual data from 2011 - 2016 (http://www.atg.wa.gov/program-statistics-and-case-outcomes) indicates that 95% - 98% of all complaints for violations of a similar MRL statute are made by residents. 2) Golden State Manufactured-Home Owners League (GSMOL) has presented members of the Committee with 990 letters (and 1,299 individual mobilehome residents) regarding the need for the bill. A review of those letters highlights specific violations of California's MRL. These violations include selective, inconsistent or no enforcement of park rules, including park owners violating their own park rules of "no subletting" by renting out their mobile homes, but not allowing homeowners to rent out their own mobile homes; interference with home sales; attempts to prevent homeowners from use of the clubhouse, especially for meetings; onsite management failure to keep posted office hours or respond to resident complaints; excessive bullying and threatening behavior by onsite managers; and frivolous charges leading to eviction."

DFEH: DFEH is the largest state civil rights agency in the country with 220 fulltime permanent staff operating out of five offices throughout California. The mission of the DFEH is "is to protect the people of California from unlawful discrimination in employment, housing, and public accommodations and from hate violence and human trafficking." The state's various civil rights laws give DFEH these responsibilities:

1. Engage in public outreach and provide training and technical assistance to employers, business establishments, and housing providers regarding their responsibilities under the law;
2. Investigate discrimination complaints and cases of systemic discrimination;
3. Facilitate mediation and resolution of disputes involving civil rights; and
4. Enforce the laws by prosecuting violations in civil court.

DFEH has existing procedures for, among other things, investigating, conciliating, and enforcing allegations of housing discrimination made unlawful pursuant to FEHA.

The Department of Housing and Community Development (HCD): HCD oversees several areas of mobilehome law, including health and safety standards, registration and titling of mobilehomes and parks, and, through the Mobilehome Ombudsman, assists the public with questions or problems associated with various aspects of mobilehome law. The Mobilehome Ombudsman provides assistance by taking complaints and helping to resolve and coordinate the resolution of those complaints. However, the Ombudsman does not have enforcement authority for the MRL, and cannot arbitrate, mediate, negotiate, or provide legal advice on mobilehome park rent disputes, lease or rental agreements, but may provide general information on these issues.

HCD also inspects parks and mobilehomes for health and safety issues. Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements under the Health and Safety Code (Mobilehome Parks Act) and Title 25. The program is funded through a $4 fee that the property owner may charge half ($2) to the homeowners. In addition to the MPM program, HCD also responds to health and safety complaints under the Mobilehome Parks Act.

Washington Manufactured Housing Dispute Resolution Program: Washington State has approximately 1,357 registered mobilehome communities and 61,545 rented mobile home lots throughout the state. In 2007, the Washington State Legislature recognized that there are factors unique to the relationship between a mobilehome tenant and their landlord, as well as the difficulty and expense of moving and relocating a mobilehome. In response, the State Legislature passed a law to authorize the Attorney General's (AG) Office to administer the Manufactured Housing Dispute Resolution Program (MHDRP). It also authorizes the Department of Revenue (DOR) to register mobilehome communities and collect registration fees to fund the program. Landlords are required to register each pad in their park with the department and pay $10 per year for each space that is rented to a person who owns their home. Landlords may charge each homeowner a maximum of $5 per year of this assessment. The fee is then used to fund the MHDRP and cover the DOR registration and licensing costs. Both homeowners and landlords may file a request for dispute resolution under this program, and the AG's Office may negotiate with opposing parties, determine whether further investigation is needed, decide whether a violation has occurred, and issue fines and other penalties when appropriate in order to bring compliance with the law.

The MHDRP is required to provide an annual report of its activities to the Washington State Legislature, as well as statistical reports for review on its website. The 2016 Annual Report provides that, during 2016, the program received complaints from 228 mobilehome residents and four landlords. The top three types of complaints filed by residents were about rental agreements, utility issues, and park rules and enforcement. The AG initiated formal investigations in 15% of complaints.

Background: This bill would create a pilot program until 2023 to apply DFEH's housing discrimination complaint procedures to the investigation and enforcement of alleged MRL violations, such as unlawful rent increases or disputes about park rules and regulations. DFEH is the state's civil rights agency, and is tasked with preventing and eliminating discrimination based on membership in a protected class. It has never had a role in enforcing the MRL, but does have extensive expertise in investigating, conciliating, and enforcing allegations of a wide variety of housing discrimination by landlords, real estate agents, home sellers, builders, mortgage lenders, and others. This includes allegations involving mobilehome parks and residents.

There are approximately 393,000 mobilehome spaces in the state. This bill would require DFEH to annually assess upon the management of a mobilehome park a registration fee of $10.00 for each mobilehome lot in the park that is subject to the MRL, and would authorize parks to charge this fee to homeowners and residents, although not through a rent increase. This would likely generate a little under $4 million per year.

Senate amendments make several changes, including adding a sunset of January 1, 2023 and increasing the bill's annual assessment from $5 to $10 per mobilehome lot in a park. The amendments also delay implementation of the investigation and enforcement provisions of the bill to July 1, 2020, to allow for the collection of fees to ensure DFEH has the necessary resources covered once the program begins. During the pilot program (July 1, 2020 - Jan. 1, 2023), DFEH also has the option to pause MRL violation investigations should there not be enough funding to continue the program.

Arguments in support: According to supporters, including over 1,300 mobilehome park residents, if this bill is signed into law, it will provide mobilehome owners a realistic and affordable way to challenge violations of the MRL to better protect property rights and residents' investments in their homes. The Golden State Manufactured Home Owners League (GSMOL) contends that mobilehome owners have "purchased and maintained the largest classification of unsubsidized, affordable housing in our state. As California works toward affordable housing solutions, we need your help to protect us from displacement by park owners who violate the law."

Arguments in opposition: Opponents argue that MRL enforcement is an inappropriate role for DFEH. Opponent Western Manufactured Housing Communities Association (WMA) contends that most of DFEH's duties under this bill are already statutorily mandated to be performed by HCD. WMA suggests that the best solution to help resolve resident complaints is to adequately fund HCD's Office of the Mobilehome Ombudsman to perform their current duties as outlined in statute and not create a new program in a different department.

Related legislation:

AB 1205 (Wieckowski) of 2013: Would have enacted the Mobilehome Residency Law Mediation Act within the MRL to establish a mediation program for alleged violations of the MRL, including investigation of alleged violations of the MRL and determination and notice of violations, to be administered by an unspecified department. This bill died in the Assembly Committee on Housing and Community Development.

AB 1803 (Nava) of 2010: Would have created the Mobilehome Residency Law Mediation Act, a dispute resolution program within the Attorney General's Office to resolve disputes related to the MRL. This bill failed passage in the Assembly Committee on Housing and Community Development.

Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0002356

 THIRD READING  

Bill No: AB 1269

Author:

:

Vote:

SENATE JUDICIARY COMMITTEE: 5-2, 7/11/17

AYES: Jackson, Hertzberg, Monning, Stern, Wieckowski

NOES: Moorlach, Anderson

SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/1/17

AYES: Lara, Beall, Bradford, Hill, Wiener

NOES: Bates, Nielsen

ASSEMBLY FLOOR: 44-24, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Golden State Manufactured Home Owners League

DIGEST:

This bill establishes a five-year pilot program under the auspices of the Department of Fair Employment and Housing (DFEH) for the administrative investigation and enforcement of complaints alleging violations of the Mobilehome Residency Law (MRL). Provides that the program would (1) be funded through a dedicated annual fee of $10 per mobilehome statewide; (2) begin collecting the fee January 1, 2018; and (3) start receiving and investigating complaints no later than July 1, 2020. Provides that the pilot program ends on January 1, 2023.

Senate Floor Amendments of 9/7/17 correct the dates in the bill to match the author’s intent to create a five-year pilot program, with registration fee collection to begin January 1, 2018, receipt of complaints beginning July 1, 2020, and sunset as of January 1, 2023.

ANALYSIS:

Existing law:

1. Regulates, pursuant to the MRL, the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents. (Civ. Code Sec. 798, et seq.)
2. Establishes DFEH within the state’s Business, Consumer Services, and Housing Agency (Gov. Code Sec. 12901).
3. Grants DFEH the authority to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful pursuant to the Fair Employment and Housing Act (FEHA) (Gov. Code Sec. 12930).
4. Sets forth the procedure for the prevention and elimination of housing discrimination made unlawful pursuant to FEHA (Gov. Code Secs. 12980 - 12989.3).

This bill:

1. Expresses that it is the intent of the Legislature in enacting this bill to protect and safeguard the most vulnerable mobilehome owners and residents.
2. Provides, beginning July 1, 2020 and ending January 1, 2023, mobilehome owners and residents access to DFEH’s existing enforcement and hearing procedures for the purpose of seeking redress to violations of the MRL.
3. Permits, beginning July 1, 2020 and ending January 1, 2023, any homeowner or resident, as defined and claiming to be aggrieved by an alleged violation of any section of the MRL, to file with the DFEH a verified complaint in writing that shall state the name and address of the person alleged to have committed the violation complained of, and that shall set forth the particulars of the alleged violation and contain any other information required by DFEH.
4. Provides, beginning July 1, 2020 and ending January 1, 2023, that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, or in advance thereof if circumstances warrant, the Director of DFEH shall bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.
5. Requires DFEH, beginning July 1, 2020 and ending January 1, 2023, to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.
6. Requires DFEH, beginning July 1, 2020 and ending January 1, 2023, to collect and make available on a publicly searchable Internet database the following information at a minimum: a) the number of complaints received; b) the violation complained of; and c) the outcome of each complaint.
7. Authorizes DFEH, beginning July 1, 2020 and ending January 1, 2023, in its sole discretion, to investigate potential violations of the MRL that are discovered during the course of an existing investigation, but for which DFEH has not received a formal complaint.
8. Provides DFEH with the authority, beginning July 1, 2020 and ending January 1, 2023, to adopt any necessary procedural rules to administer complaints and violations of the MRL.
9. Establishes, beginning January 1, 2018 and ending December 31, 2023, in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act shall be deposited and from which funds shall only be used for expenditures associated with the duties of administering the Act.
10. Requires DFEH, beginning January 1, 2018 and ending January 1, 2023, annually to assess upon the management of a mobilehome park a registration fee of $10 for each mobilehome in the park that is subject to the MRL.
11. Provides, beginning January 1, 2018 and ending January 1, 2023, that mobilehome parks may charge the maximum $10 of this assessment to homeowners and residents and collect it when rent is due. The purpose of this charge would have to be described in writing to each homeowner and resident charged and could not be passed through to any homeowner or resident in the form of any rent increase. The registration assessment for each mobilehome would have to be deposited in the Mobilehome Residency Law Protection Fund.
12. Authorizes DFEH, beginning January 1, 2018 and ending January 1, 2023, to file an action to enforce payment of unpaid registration assessments and late fees in the superior court in the county in which the mobilehome community is located. If DFEH prevails, the mobilehome park management would have to pay the department’s costs, including reasonable attorney’s fees, for the enforcement proceedings.
13. Requires, beginning January 1, 2018 and ending January 1, 2023 all receipts from fees, damages or other penalties collected under this article as a result of administering and enforcing the Act, other than those due to a complainant, to be deposited into the Mobilehome Residency Law Protection Fund.
14. Provides that the program and associated fees would cease on January 1, 2023 and all DFEH procedures would revert to their existing form.

Background

More than 700,000 people are estimated to occupy the roughly 393,000 mobilehome spaces in California’s more than 4,700 mobilehome parks. In most of those parks, residents own their home but lease the land on which their home is installed. Although they have historically been called “mobilehomes,” it is very difficult and quite expensive to actually move a mobilehome once it has been installed in a park. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000 depending on the size of the home and the distance traveled.

Given the unique nature of mobilehomes, California has enacted a series of measures that apply only to the mobilehome context. In 1978, the Legislature brought the main body of these rules together in one central statutory location: the MRL. The MRL governs many aspects of the relationship between mobilehome owners and the parks in which the mobilehomes are situated. For example the MRL covers: the required content of mobilehome leases; permissible park rules and regulations; access to common areas of the park; and the legal grounds upon which a mobilehome and its owner can be evicted from a park.

Under current law, there is no administrative agency charged with investigation and enforcement of the MRL. Mobilehome parks are subject to health and safety inspections by the Department of Housing and Community Development (HCD), has an omsbudsperson, and the Department of Fair Employment and Housing receives and responds to complaints related to discrimination in housing of all kinds, mobilehomes included. However, for the majority landlord/tenant matters arising under the MRL specifically, if the dispute cannot be resolved informally, the parties’ only option is to pursue the matter in civil court. Finding an attorney with the willingness and expertise to take on lawsuits under the MRL is difficult, and absent a contingency fee agreement, quite expensive.

Comments

Under existing law, HCD conducts some inspections of parks and mobilehomes for health and safety issues. Specifically, through the Mobilehome Park Maintenance (MPM) program, HCD responds to health and safety complaints and is supposed to inspect five percent of parks for compliance with the Health and Safety Code each year. The program is funded through a four dollar ($4) per mobilehome space fee assessed to each park, of which the park owner may pass on half ($2) to the homeowners in the form of additional rent. HCD also operates the Office of the Mobilehome Omsbudsperson, which will accept complaints.

Notably, however, none of these programs conducts investigation or enforcement of matters arising out of the MRL itself. As the Frequently Asked Questions part of the Office of the Mobilehome Omsbudperson’s Web site literally underlines:

A dispute that arises pursuant to the application of the MRL is civil in nature and generally must be resolved in a civil court of competent jurisdiction. Neither law enforcement nor the California Department of Housing and Community Development (HCD) has jurisdiction to enforce the MRL. ^[1]

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• DFEH: Unknown, potentially-major costs upwards of $10 million (General Fund, fees) to establish a new landlord-tenant division to investigate alleged violations of and enforce the MRL. Costs to the department entail hiring new personnel, including lawyers and mediators; acquiring space, furniture, and equipment for the new division; and training staff and updating technology to handle MRL-related complaints. Costs would be offset, in part, by fees collected from mobilehome park management.
• Court: Unknown fiscal impact to the court. To the extent that DFEH could resolve complaints pre-litigation that otherwise would have been filed in court absent this bill, there would be less pressure on existing court resources. On the other hand, however, DFEH would be mandated to litigate claims that it found meritorious but was unable to settle. To the extent that these claims would not have been filed in court absent this bill, it could result in added workload to the court.

SUPPORT: (Verified 9/7/17)

AARP

California Rural Legal Assistance Foundation, Inc.

Sacramento Area Coalition of Mobilehomeowner Associations

Sonoma Valley Golden State Manufactured-Home Owners League

Tim Sheahan, President, National Manufactured Home Owners Association

Western Center on Law and Poverty

2,685 individuals

OPPOSITION: (Verified 9/7/17)

California Mobilehome Parkowner’s Alliance

Western Manufactured Housing Communities Association

ARGUMENTS IN SUPPORT: According to the author:

AB 1269 would help to balance the relationship between mobilehome park resident and park owner by establishing a process for the investigation and mediation of the Mobilehome Residency Law (MRL) at the Department of Fair Employment and Housing (DFEH)…. The MRL provides many special rights not available to the more traditional residential tenants. While the California Department of Housing and Community Development has the ability to investigate and enforce health and safety violations and the California Department of Fair Employment and Housing (CDFEH) has the ability to investigate and enforce allegations of discrimination, civil litigation is the only option residents have for enforcing their rights under the MRL. For seniors on fixed income as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action.

AB 1269 sets up a process for the investigation and mediation of everyday disputes where the statute is being violated. Recognizing that expansion of CDFEH’s current authority will carry a cost to the state, residents are willing to pay-their-way for those costs.

In support, the AARP writes:

Violations reported by mobilehome owners include selective, inconsistent or no enforcement of park rules; interference with home sales; attempts to prevent homeowners from using the clubhouse, especially for meetings; and failure of management to keep posted office hours or respond to complaints. In addition, residents have reported excessive bullying and threatening behavior by onsite managers and frivolous charges leading to eviction.

Today, no state entity has jurisdiction over violations of the Mobilehome Residency Law. Currently, the only remedy for violations is civil litigation filed by the mobilehome owner. For seniors on fixed incomes, as well as low-income residents, litigation is not feasible, particularly for any issue that does not qualify for class-action.

AARP believes that older people, like everyone, need effective mechanisms to assert their rights. Passage of AB 1269 will give mobilehome owners, through the Department of Fair Employment and Housing, a much needed avenue for asserting those rights and protecting vital property interests.

ARGUMENTS IN OPPOSITION: In comments largely echoed by the California Mobilehome Parkowner’s Alliance, the Western Manufactured Housing Communities Association (WMA) writes that:

AB 1269 creates an entirely new government program...There has been no financial assessment on how much this new government enforcement program will truly cost. […] [T]he real costs are likely to be underfunded when all the extra duties and new requirements are taken into consideration.

WMA goes on to assert its position that the existing MPM program within the HCD already inspects communities for compliance with health and safety requirements and it states that HCD also responds to complaints under the Mobilehome Parks Act:

…[H]ow does creating another bureaucracy, that duplicates HCD’s efforts, achieve HCD’s goals or improve the current system? The current MPM program collects $4 per space… to fund a program that focuses on the health and safety of residents in contrast to AB 1269’s newly created program… for complaints for anything from pets, political signs and trees and driveways.

In WMA’s view, DFEH lacks the expertise to handle all mobilehome resident complaints, which, they assert, are frequently resident on resident. Moreover, WMA believes, expanding DFEH’s jurisdiction beyond discrimination matters is unprecedented. AB 1269 permits DFEH to engage in unlimited investigations of “potential violations,” WMA says, placing a heavy burden on parks to defend themselves, even prior to winding up in court.

Finally, WMA argues that, because there is no option to evict mobilehome residents who do not pay the program fee passed through to them, there is no practical way for park owners to collect it. As a result, WMA concludes: “[t]his fee collection requirement is essentially an unfunded government mandate.”

ASSEMBLY FLOOR: 44-24, 5/31/17

AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bocanegra, Bonta, Burke, Caballero, Chau, Chiu, Chu, Cooley, Friedman, Cristina Garcia, Eduardo Garcia, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Jones-Sawyer, Kalra, Levine, Limón, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Voepel, Weber, Wood, Rendon

NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Chávez, Chen, Dababneh, Flora, Fong, Frazier, Gallagher, Harper, Irwin, Kiley, Lackey, Low, Maienschein, Mathis, Mayes, Obernolte, Patterson, Salas, Waldron

NO VOTE RECORDED: Calderon, Cervantes, Choi, Cooper, Cunningham, Dahle, Daly, Eggman, Gipson, Melendez, Rubio, Steinorth

Prepared by: Timothy Griffiths / JUD. / (916) 651-4113

9/9/17 16:13:39

**** END ****

1. The Mobilehome Residency Law: Rights and Obligations of the Mobilehome Park Homeowners, Tenants and Management, Department of Housing and Community Development Mobilehome Assistance Center -- http://www.hcd.ca.gov/manufactured-mobile-home/mobile-home-ombudsman/docs/Mobilehome-Assistance-Center-FAQS.pdf -- (as of June 23, 2017)(underlining in original). ↑

 THIRD READING  

Bill No: AB 1269

Author:

:

Vote:

SENATE JUDICIARY COMMITTEE: 5-2, 7/11/17

AYES: Jackson, Hertzberg, Monning, Stern, Wieckowski

NOES: Moorlach, Anderson

SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/1/17

AYES: Lara, Beall, Bradford, Hill, Wiener

NOES: Bates, Nielsen

ASSEMBLY FLOOR: 44-24, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Golden State Manufactured Home Owners League

DIGEST:

This bill establishes a five-year pilot program under the auspices of the Department of Fair Employment and Housing (DFEH) for the administrative investigation and enforcement of complaints alleging violations of the Mobilehome Residency Law (MRL). Provides that the program would (1) be funded through a dedicated fee of $10 per mobilehome statewide; (2) begin collecting the fee no later than July 1, 2018; and (3) start receiving and investigating complaints no later than July 1, 2019.

ANALYSIS:

Existing law:

1. Regulates, pursuant to the MRL, the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents. (Civ. Code Sec. 798, et seq.)
2. Establishes DFEH within the state’s Business, Consumer Services, and Housing Agency (Gov. Code Sec. 12901).
3. Grants DFEH the authority to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful pursuant to the Fair Employment and Housing Act (FEHA) (Gov. Code Sec. 12930).
4. Sets forth the procedure for the prevention and elimination of housing discrimination made unlawful pursuant to FEHA (Gov. Code Secs. 12980 - 12989.3).

This bill:

1. Expresses that it is the intent of the Legislature in enacting this bill to protect and safeguard the most vulnerable mobilehome owners and residents.
2. Provides, beginning July 1, 2019 and ending December 31, 2023, mobilehome owners and residents access to DFEH’s existing enforcement and hearing procedures for the purpose of seeking redress to violations of the MRL.
3. Permits, beginning July 1, 2019 and ending December 31, 2023, any homeowner or resident, as defined and claiming to be aggrieved by an alleged violation of any section of the MRL, to file with the DFEH a verified complaint in writing that shall state the name and address of the person alleged to have committed the violation complained of, and that shall set forth the particulars of the alleged violation and contain any other information required by DFEH.
4. Provides, beginning July 1, 2019 and ending December 31, 2023, that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, or in advance thereof if circumstances warrant, the Director of DFEH shall bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.
5. Requires DFEH, beginning July 1, 2019 and ending December 31, 2023, to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.
6. Requires DFEH, beginning July 1, 2019 and ending December 31, 2023, to collect and make available on a publicly searchable Internet database the following information at a minimum: a) the number of complaints received; b) the violation complained of; and c) the outcome of each complaint.
7. Authorizes DFEH, beginning July 1, 2019 and ending December 31, 2023, in its sole discretion, to investigate potential violations of the MRL that are discovered during the course of an existing investigation, but for which DFEH has not received a formal complaint.
8. Provides DFEH with the authority, beginning July 1, 2019 and ending December 31, 2023, to adopt any necessary procedural rules to administer complaints and violations of the MRL.
9. Establishes, beginning July 1, 2018 and ending December 31, 2023, in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act shall be deposited and from which funds shall only be used for expenditures associated with the duties of administering the Act.
10. Requires DFEH, beginning July 1, 2018 and ending December 31, 2023, annually to assess upon the management of a mobilehome park a registration fee of $10 for each mobilehome in the park that is subject to the MRL.
11. Provides, beginning July 1, 2018 and ending December 31, 2023, that mobilehome parks may charge the maximum $10 of this assessment to homeowners and residents and collect it when rent is due. The purpose of this charge would have to be described in writing to each homeowner and resident charged and could not be passed through to any homeowner or resident in the form of any rent increase. The registration assessment for each mobilehome would have to be deposited in the Mobilehome Residency Law Protection Fund.
12. Authorizes DFEH, beginning July 1, 2018 and ending December 31, 2023, to file an action to enforce payment of unpaid registration assessments and late fees in the superior court in the county in which the mobilehome community is located. If DFEH prevails, the mobilehome park management would have to pay the department’s costs, including reasonable attorney’s fees, for the enforcement proceedings.
13. Requires, beginning July 1, 2018 and ending December 31, 2023 all receipts from fees, damages or other penalties collected under this article as a result of administering and enforcing the Act, other than those due to a complainant, to be deposited into the Mobilehome Residency Law Protection Fund.
14. Provides that the program and associated fees would cease on January 1, 2024 and all DFEH procedures would revert to their existing form.

Background

More than 700,000 people are estimated to occupy the roughly 393,000 mobilehome spaces in California’s more than 4,700 mobilehome parks. In most of those parks, residents own their home but lease the land on which their home is installed. Although they have historically been called “mobilehomes,” it is very difficult and quite expensive to actually move a mobilehome once it has been installed in a park. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000 depending on the size of the home and the distance traveled.

Given the unique nature of mobilehomes, California has enacted a series of measures that apply only to the mobilehome context. In 1978, the Legislature brought the main body of these rules together in one central statutory location: the MRL. The MRL governs many aspects of the relationship between mobilehome owners and the parks in which the mobilehomes are situated. For example the MRL covers: the required content of mobilehome leases; permissible park rules and regulations; access to common areas of the park; and the legal grounds upon which a mobilehome and its owner can be evicted from a park.

Under current law, there is no administrative agency charged with investigation and enforcement of the MRL. Mobilehome parks are subject to health and safety inspections by the Department of Housing and Community Development (HCD), has an omsbudsperson, and the Department of Fair Employment and Housing receives and responds to complaints related to discrimination in housing of all kinds, mobilehomes included. However, for the majority landlord/tenant matters arising under the MRL specifically, if the dispute cannot be resolved informally, the parties’ only option is to pursue the matter in civil court. Finding an attorney with the willingness and expertise to take on lawsuits under the MRL is difficult, and absent a contingency fee agreement, quite expensive.

Comments

Under existing law, HCD conducts some inspections of parks and mobilehomes for health and safety issues. Specifically, through the Mobilehome Park Maintenance (MPM) program, HCD responds to health and safety complaints and is supposed to inspect five percent of parks for compliance with the Health and Safety Code each year. The program is funded through a four dollar ($4) per mobilehome space fee assessed to each park, of which the park owner may pass on half ($2) to the homeowners in the form of additional rent. HCD also operates the Office of the Mobilehome Omsbudsperson, which will accept complaints.

Notably, however, none of these programs conducts investigation or enforcement of matters arising out of the MRL itself. As the Frequently Asked Questions part of the Office of the Mobilehome Omsbudperson’s Web site literally underlines:

A dispute that arises pursuant to the application of the MRL is civil in nature and generally must be resolved in a civil court of competent jurisdiction. Neither law enforcement nor the California Department of Housing and Community Development (HCD) has jurisdiction to enforce the MRL. ^[1]

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• DFEH: Unknown, potentially-major costs upwards of $10 million (General Fund, fees) to establish a new landlord-tenant division to investigate alleged violations of and enforce the MRL. Costs to the department entail hiring new personnel, including lawyers and mediators; acquiring space, furniture, and equipment for the new division; and training staff and updating technology to handle MRL-related complaints. Costs would be offset, in part, by fees collected from mobilehome park management.
• Court: Unknown fiscal impact to the court. To the extent that DFEH could resolve complaints pre-litigation that otherwise would have been filed in court absent this bill, there would be less pressure on existing court resources. On the other hand, however, DFEH would be mandated to litigate claims that it found meritorious but was unable to settle. To the extent that these claims would not have been filed in court absent this bill, it could result in added workload to the court.

SUPPORT: (Verified 9/1/17)

AARP

California Rural Legal Assistance Foundation, Inc.

Sacramento Area Coalition of Mobilehomeowner Associations

Sonoma Valley Golden State Manufactured-Home Owners League

Tim Sheahan, President, National Manufactured Home Owners Association

Western Center on Law and Poverty;

2,685 individuals

OPPOSITION: (Verified 9/1/17)

California Mobilehome Parkowner’s Alliance

Western Manufactured Housing Communities Association

ARGUMENTS IN SUPPORT: According to the author:

AB 1269 would help to balance the relationship between mobilehome park resident and park owner by establishing a process for the investigation and mediation of the Mobilehome Residency Law (MRL) at the Department of Fair Employment and Housing (DFEH)…. The MRL provides many special rights not available to the more traditional residential tenants. While the California Department of Housing and Community Development has the ability to investigate and enforce health and safety violations and the California Department of Fair Employment and Housing (CDFEH) has the ability to investigate and enforce allegations of discrimination, civil litigation is the only option residents have for enforcing their rights under the MRL. For seniors on fixed income as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action.

AB 1269 sets up a process for the investigation and mediation of everyday disputes where the statute is being violated. Recognizing that expansion of CDFEH’s current authority will carry a cost to the state, residents are willing to pay-their-way for those costs.

In support, the AARP writes:

Violations reported by mobilehome owners include selective, inconsistent or no enforcement of park rules; interference with home sales; attempts to prevent homeowners from using the clubhouse, especially for meetings; and failure of management to keep posted office hours or respond to complaints. In addition, residents have reported excessive bullying and threatening behavior by onsite managers and frivolous charges leading to eviction.

Today, no state entity has jurisdiction over violations of the Mobilehome Residency Law. Currently, the only remedy for violations is civil litigation filed by the mobilehome owner. For seniors on fixed incomes, as well as low-income residents, litigation is not feasible, particularly for any issue that does not qualify for class-action.

AARP believes that older people, like everyone, need effective mechanisms to assert their rights. Passage of AB 1269 will give mobilehome owners, through the Department of Fair Employment and Housing, a much needed avenue for asserting those rights and protecting vital property interests.

ARGUMENTS IN OPPOSITION: In comments largely echoed by the California Mobilehome Parkowner’s Alliance, the Western Manufactured Housing Communities Association (WMA) writes that:

AB 1269 creates an entirely new government program...There has been no financial assessment on how much this new government enforcement program will truly cost. […] [T]he real costs are likely to be underfunded when all the extra duties and new requirements are taken into consideration.

WMA goes on to assert its position that the existing MPM program within the HCD already inspects communities for compliance with health and safety requirements and it states that HCD also responds to complaints under the Mobilehome Parks Act:

…[H]ow does creating another bureaucracy, that duplicates HCD’s efforts, achieve HCD’s goals or improve the current system? The current MPM program collects $4 per space… to fund a program that focuses on the health and safety of residents in contrast to AB 1269’s newly created program… for complaints for anything from pets, political signs and trees and driveways.

In WMA’s view, DFEH lacks the expertise to handle all mobilehome resident complaints, which, they assert, are frequently resident on resident. Moreover, WMA believes, expanding DFEH’s jurisdiction beyond discrimination matters is unprecedented. AB 1269 permits DFEH to engage in unlimited investigations of “potential violations,” WMA says, placing a heavy burden on parks to defend themselves, even prior to winding up in court.

Finally, WMA argues that, because there is no option to evict mobilehome residents who do not pay the program fee passed through to them, there is no practical way for park owners to collect it. As a result, WMA concludes: “[t]his fee collection requirement is essentially an unfunded government mandate.”

ASSEMBLY FLOOR: 44-24, 5/31/17

AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bocanegra, Bonta, Burke, Caballero, Chau, Chiu, Chu, Cooley, Friedman, Cristina Garcia, Eduardo Garcia, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Jones-Sawyer, Kalra, Levine, Limón, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Voepel, Weber, Wood, Rendon

NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Chávez, Chen, Dababneh, Flora, Fong, Frazier, Gallagher, Harper, Irwin, Kiley, Lackey, Low, Maienschein, Mathis, Mayes, Obernolte, Patterson, Salas, Waldron

NO VOTE RECORDED: Calderon, Cervantes, Choi, Cooper, Cunningham, Dahle, Daly, Eggman, Gipson, Melendez, Rubio, Steinorth

Prepared by:

9/4/17 12:40:53

**** END ****

1. The Mobilehome Residency Law: Rights and Obligations of the Mobilehome Park Homeowners, Tenants and Management, Department of Housing and Community Development Mobilehome Assistance Center -- http://www.hcd.ca.gov/manufactured-mobile-home/mobile-home-ombudsman/docs/Mobilehome-Assistance-Center-FAQS.pdf -- (as of June 23, 2017)(underlining in original). ↑

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 1269 (Mark Stone) - Mobilehome Residents and Senior Protection Act

Bill Summary:

AB 1269 would extend investigation authority and complaint resolution procedures at the Department of Fair Employment and Housing (DFEH) to violations of the Mobilehome Residency Law (MRL), as specified.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2017

Fiscal Impact:

• DFEH: Unknown, potentially-major costs upwards of $10 million (General Fund, fees) to establish a new landlord-tenant division to investigate alleged violations of and enforce the MRL. Costs to the department entail hiring new personnel, including lawyers and mediators; acquiring space, furniture, and equipment for the new division; and training staff and updating technology to handle MRL-related complaints. Costs would be offset, in part, by fees collected from mobilehome park management.
• Court: Unknown fiscal impact to the court. To the extent that DFEH could resolve complaints pre-litigation that otherwise would have been filed in court absent this bill, there would be less pressure on existing court resources. On the other hand, however, DFEH would be mandated to litigate claims that it found meritorious but was unable to settle. To the extent that these claims would not have been filed in court absent this bill, it could result in added workload to the court.

Author Amendments:

Sunset the provisions of the bill after 2023, allow the fee to be collected with the rent, and make other related changes.

Committee Amendments:

Increase the fee to $10 per lot and to strike the continuous appropriation of funds.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 1269 (Mark Stone) - Mobilehome Residents and Senior Protection Act

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 1269 would extend investigation authority and complaint resolution procedures at the Department of Fair Employment and Housing (DFEH) to violations of the Mobilehome Residency Law (MRL), as specified.

Fiscal Impact:

• DFEH: Unknown, potentially-major costs upwards of $10 million (General Fund, fees) to establish a new landlord-tenant division to investigate alleged violations of and enforce the MRL. Costs to the department entail hiring new personnel, including lawyers and mediators; acquiring space, furniture, and equipment for the new division; and training staff and updating technology to handle MRL-related complaints. Costs would be offset, in part, by fees collected from mobilehome park management.
• Court: Unknown fiscal impact to the court. To the extent that DFEH could resolve complaints pre-litigation that otherwise would have been filed in court absent this bill, there would be less pressure on existing court resources. On the other hand, however, DFEH would be mandated to litigate claims that it found meritorious but was unable to settle. To the extent that these claims would not have been filed in court absent this bill, it could result in added workload to the court.

Background:

The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks. Among other things, it requires the rental agreement between the management of a mobilehome park and the homeowner to be in writing and to contain specified terms and provisions, requires the management to meet and consult with homeowners, either individually, collectively, or with representatives of a group of homeowners, on specified matters within 30 days of a written request to do so, and prohibits management from terminating or refusing to renew tenancy within a park, except for specified reasons and upon giving written notice to the homeowner. There is no administrative agency charged with investigation violations of or enforcing the MRL. The Office of the Mobilehome Ombudsman provides assistance but does not have enforcement authority for the MRL and cannot arbitrate, mediate, negotiate, or provide legal advice on mobilehome park rent disputes, lease or rental agreements, but it may provide general information on these issues. Parties to disputes arising under the MRL may seek recourse in civil court.

Allegations of health and safety violations at mobilehome parks are inspected by the Department of Housing and Community Development (HCD). Under the Mobilehome Park Maintenance program, HCD annually inspects 5 percent of parks for compliance with health and safety requirements. The program is funded through a $4 fee on property owners who may recover half ($2) from the homeowners.

The California Fair Employment and Housing Act (FEHA) establishes DFEH to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful under the act. The act establishes procedures for the prevention and elimination of discrimination in housing made unlawful under its provisions, including authorizing any person claiming to be aggrieved by an alleged violation of specified provisions to file a verified complaint in writing with the department. The act requires the department to investigate an alleged violation and, in the case of failure to eliminate a violation that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, requires the director to file a civil action in the name of the department on behalf of that person.

Proposed Law:

This bill would:

• Extend, on or after July 1, 2019, the application of investigation and enforcement procedures for the prevention and elimination of discrimination in housing under FEHA to apply to the prevention and elimination of violations of the MRL against homeowners or residents of mobilehomes, as provided.
• Prescribe requirements for an aggrieved home owner or resident to follow when filing a complaint with DFEH.
• Allow, on and after July 1, 2019, DFEH to investigate potential violations of the MRL that are discovered during the course of an existing formal investigation but for which the department has not received a formal complaint.
• Establishes the in the State Treasury the Mobilehome Residency Law Protection Fund and would require all moneys received by DFEH as a result of administering and enforcing the provisions of this bill, other than those due to a homeowner or resident, to be deposited in the fund and continuously appropriated to the department for the purpose of administering the provisions of this bill.
• Require DFEH, by no later than July 1, 2018, and by no later than July 1 of each subsequent year, to assess upon the management of a mobilehome park subject to the MRL and collect a registration fee of $5 for each mobilehome located within the mobilehome park for the purpose of providing the complaint resolution process. Management would be able to pass this fee on to the owner of each mobilehome but in the form of an increase in rent.
• Require management to provide a written description of the purpose of the charge to homeowners and residents, which includes both a description of the amount of the annual fee assessed and collected for enforcement of the provisions of the bill, along with contact information for DFEH for purposes of obtaining information relating to enforcement of the MRL.
• Allow DFEH to file a civil action to enforce payment of the registration fee assessed in the superior court for the county in which the relevant mobilehome park is located. If DFEH prevails in an action filed pursuant to this provision, the court would be required to award costs, including reasonable attorney’s fees, for the enforcement proceeding, to the department, which would be required to be deposited into the Mobilehome Residency Law Protection Fund.

Prior Legislation:

AB 1803 (Nava, 2010) would have created the Mobilehome Residency Law Mediation Act, a dispute resolution program within the Attorney General’s Office to resolve disputes related to the MRL. AB 1803 failed passage in the Assembly Committee on Housing and Community Development.

Staff Comments:

There are approximately 700,000 mobilehome residents living in 393,000 mobilehomes in California’s 4,700 mobilehome parks. It is difficult to anticipate how many of these residents would file an MRL-related complaint with DFEH. If 2 percent of the 393,000 mobilehomes (as opposed to the 700,000 mobilehome residents) were to generate complaints, it would result in 7,860 additional complaints received by DFEH, which is about one third of the approximately 23,000 complaints the department receives annually for housing and employment discrimination matters (i.e., its current workload). The department’s budget for the 2017-18 fiscal year is approximately $28 million. It is worth noting that about half of the complaints DFEH currently receives are requests for immediate right-to-sue notices, which require much less resource intensive. The vast majority of the remaining claims settles, do not result in mandatory mediation, and/or are employment complaints which allows the department the discretion to decide whether to pursue the matter in civil court.

This bill allows for DFEH to collect a fee from mobilehome park management of $5 for each of the 393,000 spaces. This comes out to almost $2 million for the department to fulfill its obligations under the bill. Should costs to DFEH exceed $2 million annually, which appears likely, the department might be forced to divert resources from its other duties. Similarly, there would be cost pressure to the General Fund to backfill DFEH to the extent that the fees are deficient in covering the costs of operation.

-- END --

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2017-2018 Regular Session

Bill No: AB 1269 (Author:Mark Stone)

Version: May 30, 2017

Hearing Date: July 11, 2017

Fiscal: Yes

Urgency: No

Consultant: TSG

SUBJECT

Mobilehome Residents and Senior Protection Act

DESCRIPTION

This bill would establish a program under the auspices of the Department of Fair Employment and Housing for the administrative investigation and enforcement of complaints alleging violations of the Mobilehome Residency Law. The program would be partially funded by a dedicated fee of five dollars ($5) per mobilehome statewide.

BACKGROUND

More than 700,000 people are estimated to occupy the roughly 393,000 mobilehome spaces in California’s more than 4,700 mobilehome parks. In most of those parks, residents own their home but lease the land on which their home is installed. Although they have historically been called “mobilehomes,” it is very difficult and quite expensive to actually move a mobilehome once it has been installed in a park. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000 depending on the size of the home and the distance traveled.

Given the unique nature of mobilehomes, California has enacted a series of measures that apply only to the mobilehome context. In 1978, the Legislature brought the main body of these rules together in one central statutory location: the Mobilehome Residency Law (MRL). The MRL govern many aspects of the relationship between mobilehome owners and the parks in which the mobilehomes are situated. For example the MRL covers: the required content of mobilehome leases; permissible park rules and regulations; access to common areas of the park; and the legal grounds upon which a mobilehome and its owner can be evicted from a park.

Under current law, there is no administrative agency charged with investigation and enforcement of the MRL. Mobilehome parks are subject to health and safety inspections by the Department of Housing and Community Development (HCD), has an omsbudsperson, and the Department of Fair Employment and Housing receives and responds to complaints related to discrimination in housing of all kinds, mobilehomes included. However, for the majority landlord/tenant matters arising under the MRL specifically, if the dispute cannot be resolved informally, the parties’ only option is to pursue the matter in civil court. Finding an attorney with the willingness and expertise to take on lawsuits under the MRL is difficult, and absent a contingency fee agreement, quite expensive.

This bill would create an administrative body, housed with the Department of Fair Employment and Housing, and charged with receiving, investigating, and mediating allegations of violations of the MRL up to, and, when appropriate, including, taking enforcement action. To fund the program, at least partially, the bill would also impose a five dollar ($5) annual fee on every mobilehome space in the state.

CHANGES TO EXISTING LAW

Existing law regulates, pursuant to the MRL, the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents. (Civ. Code Sec. 798, et seq.)

Existing law establishes DFEH within the state’s Business, Consumer Services, and Housing Agency (Gov. Code Sec. 12901).

Existing law grants DFEH the authority to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful pursuant to the Fair Employment and Housing Act (FEHA) (Gov. Code Sec. 12930).

Existing law sets forth the procedure for the prevention and elimination of housing discrimination made unlawful pursuant to FEHA (Gov. Code Secs. 12980 - 12989.3).

This bill would express that it is the intent of the Legislature in enacting this bill to protect and safeguard the most vulnerable mobilehome owners and residents.

This bill would provide mobilehome owners and residents access to DFEH’s existing enforcement and hearing procedures for the purpose of seeking redress to violations of the MRL.

This bill would permit any homeowner or resident, as defined and claiming to be aggrieved by an alleged violation of any section of the MRL to file with the DFEH a verified complaint in writing that shall state the name and address of the person alleged to have committed the violation complained of, and that shall set forth the particulars of the alleged violation and contain any other information required by DFEH.

This bill would provide that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, or in advance thereof if circumstances warrant, the Director of DFEH shall bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.

This bill would require DFEH to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.

This bill would require DFEH to collect and make available on a publicly searchable Internet database the following information at a minimum: a) the number of complaints received; b) the violation complained of; and c) the outcome of each complaint.

This bill would authorize DFEH, in its sole discretion, to investigate potential violations of the MRL that are discovered during the course of an existing investigation, but for which DFEH has not received a formal complaint.

This bill would provide DFEH with the authority to promulgate any necessary procedural rules to administer complaints and violations of the MRL.

This bill would establish in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act shall be deposited and from which funds shall only be used for expenditures associated with the duties of administering the Act.

This bill would require DFEH annually to assess upon the management of a mobilehome park a registration fee of five dollars ($5) for each mobilehome in the park that is subject to the MRL.

This bill would provide that mobilehome parks may charge the maximum five dollars ($5) of this assessment to homeowners and residents. The purpose of this charge would have to be described in writing to each homeowner and resident charged and could not be passed through to any homeowner or resident in the form of any rent increase. The registration assessment for each mobilehome would have to be deposited in the Mobilehome Residency Law Protection Fund.

This bill would authorize DFEH to file an action to enforce payment of unpaid registration assessments and late fees in the superior court in the county in which the mobilehome community is located. If DFEH prevails, the mobilehome park management would have to pay the department’s costs, including reasonable attorney’s fees, for the enforcement proceedings.

This bill would require all receipts from fees, damages or other penalties collected under this article as a result of administering and enforcing the Act, other than those due to a complainant, to be deposited into the Mobilehome Residency Law Protection Fund.

COMMENT

1. Stated need for the bill

According to the author:

AB 1269 would help to balance the relationship between mobilehome park resident and park owner by establishing a process for the investigation and mediation of the Mobilehome Residency Law (MRL) at the Department of Fair Employment and Housing (DFEH)…. The MRL provides many special rights not available to the more traditional residential tenants. While the California Department of Housing and Community Development has the ability to investigate and enforce health and safety violations and the California Department of Fair Employment and Housing (CDFEH) has the ability to investigate and enforce allegations of discrimination, civil litigation is the only option residents have for enforcing their rights under the MRL. For seniors on fixed income as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action.

AB 1269 sets up a process for the investigation and mediation of everyday disputes where the statute is being violated. Recognizing that expansion of CDFEH’s current authority will carry a cost to the state, residents are willing to pay-their-way for those costs.

In support, the Golden State Manufactured Home Owners League – Sonoma Valley Chapter writes:

While broad in its scope, the MRL currently falls short in ensuring homeowners’ rights by the lack of an enforcement agency. That the homeowner must currently enforce the MRL themselves through the courts overlooks the growing disparity in access to legal resources necessary to prevail. Even a favorable small claims court judgment, on appeal, quickly puts justice out of reach of many…

The most vulnerable among us are the seniors and multi-lingual Spanish speaking homeowners. Park owners and their attorneys are constantly devising strategies to transfer equity from homeowners to park owners. We need your help to protect us from displacement by park owners who violate the law. Enforcement of the MRL is a major step in maintaining the largest classification of unsubsidized, affordable housing in California.

In further support, the AARP writes:

Violations reported by mobilehome owners include selective, inconsistent or no enforcement of park rules; interference with home sales; attempts to prevent homeowners from using the clubhouse, especially for meetings; and failure of management to keep posted office hours or respond to complaints. In addition, residents have reported excessive bullying and threatening behavior by onsite managers and frivolous charges leading to eviction.

Today, no state entity has jurisdiction over violations of the Mobilehome Residency Law. Currently, the only remedy for violations is civil litigation filed by the mobilehome owner. For seniors on fixed incomes, as well as low-income residents, litigation is not feasible, particularly for any issue that does not qualify for class-action.

AARP believes that older people, like everyone, need effective mechanisms to assert their rights. Passage of AB 1269 will give mobilehome owners, through the Department of Fair Employment and Housing, a much needed avenue for asserting those rights and protecting vital property interests.

2. Write-in campaign

The Committee received 2,685 letters and emails from mobilehome park homeowners and residents in support of this bill. The predominant themes expressed in the letters were: (a) there are many Mobilehome Residency Law violations taking place; (b) the writers believe there are substantial barriers to bringing a lawsuit to address those violations; and (c) the writers are optimistic that the program envisioned by AB 1269 would help to address those violations.

3. Expressed concerns about the bill

In comments largely echoed by the California Mobilehome Parkowner’s Alliance, the Western Manufactured Housing Communities Association (WMA) writes that:

AB 1269 creates an entirely new government program...There has been no financial assessment on how much this new government enforcement program will truly cost. […] [T]he real costs are likely to be underfunded when all the extra duties and new requirements are taken into consideration.

WMA goes on to assert its position that the existing Mobilehome Park Maintenance (MPM) program within the Department of Housing and Community Development (HCD) already inspects communities for compliance with health and safety requirements and it states that HCD also responds to complaints under the Mobilehome Parks Act:

…[H]ow does creating another bureaucracy, that duplicates HCD’s efforts, achieve HCD’s goals or improve the current system? The current MPM program collects $4 per space… to fund a program that focuses on the health and safety of residents in contrast to AB 1269’s newly created program that is going to collect $5 per space for complaints for anything from pets, political signs and trees and driveways.

In WMA’s view, DFEH lacks the expertise to handle all mobilehome resident complaints, which, they assert, are frequently resident on resident. Moreover, WMA believes, expanding DFEH’s jurisdiction beyond discrimination matters is unprecedented. AB 1269 would permit DFEH to engage in unlimited investigations of “potential violations,” WMA says, placing a heavy burden on parks to defend themselves, even prior to winding up in court.

Finally, WMA argues that, because there is no option to evict mobilehome residents who do not pay the five dollar ($5) program fee passed through to them, there is no practical way for park owners to collect it. As a result, WMA concludes: “[t]his fee collection requirement is essentially an unfunded government mandate.”

4. There is no existing MRL investigation and enforcement system

Under existing law, HCD conducts some inspections of parks and mobilehomes for health and safety issues. Specifically, through the Mobilehome Park Maintenance (MPM) program, HCD responds to health and safety complaints and is supposed to inspect five percent of parks for compliance with the Health and Safety Code each year. The program is funded through a four dollar ($4) per mobilehome space fee assessed to each park, of which the park owner may pass on half ($2) to the homeowners in the form of additional rent. HCD also operates the Office of the Mobilehome Omsbudsperson, which will accept complaints.

Notably, however, none of these programs conducts investigation or enforcement of matters arising out of the MRL itself. As the Frequently Asked Questions part of the Office of the Mobilehome Omsbudperson’s Web site literally underlines:

A dispute that arises pursuant to the application of the MRL is civil in nature and generally must be resolved in a civil court of competent jurisdiction. Neither law enforcement nor the California Department of Housing and Community Development (HCD) has jurisdiction to enforce the MRL. ^[1]

5. Choosing where to house an MRL investigation and enforcement unit

The program proposed by this bill does not fit neatly within any single state agency. On the one hand, mobilehome matters such as registration and park health and safety inspection are generally overseen by HCD. On the other hand, DFEH has existing procedural infrastructure that it could relatively easily extend to encompass allegations of MRL violations. DFEH already receives complaints, conducts investigations, holds mediations, prosecutes cases in court, and collects data about case types and outcomes, all things that this bill would require. HCD would largely be starting from scratch. With these considerations in mind, the author has chosen to place the program within the auspices of DFEH.

6. Potential impacts on existing DFEH functions

As noted previously, there are approximately 393,000 mobilehome units in California. This bill authorizes an annual five dollar ($5) per mobilehome unit charge, to be assessed on mobilehome park owners, but which the owners may pass through to the residents. Optimistically assuming something close to perfect compliance, these fees would generate annual revenue just short of two million dollars ($2,000,000).

On the expense side, to begin to implement the program envisioned by this bill, DFEH will need to obtain office space, hire personnel, conduct training on the MRL, and adapt its intake procedures. Additionally, the bill requires DFEH to produce written outreach materials about the program and to create a new online, searchable database with detailed information about the complaints it receives. Once up and running, the program will have to investigate and resolve an unknown number of cases annually. Based on Washington State’s experience, that could be something like 1,500 complaints and 225 investigations per year, though those figures might very well end up being even higher.

On top of receiving and investigating allegations of violations of the MRL, because this bill inserts the MRL program into the statutes governing DFEH’s handling of housing discrimination procedures, it would require DFEH to litigate any MRL violation complaint that it found meritorious and is unable to settle, just as existing law requires DFEH to do for any housing discrimination complaint. (Gov. Code Sec. 12981(a).)

It is not the place of this Committee to examine closely whether the revenue generated by this bill will be sufficient to match the cost of the program the bill envisions. Ultimately, such an analysis is properly within the jurisdiction of the Senate Appropriations Committee, where this bill will go next, assuming it passes out of this Committee. It is important to note, however, that to the degree that the program operation expenses this bill would impose on DFEH exceed the revenue it would bring in, DFEH will have to redirect resources from other areas of its budget to fill the gap. As a policy matter, this means that this bill could have an impact on DFEH’s current mission to enforce the state’s civil rights laws.

7. The Washington State model

As evidence that the program envisioned by this bill would be effective, the author points to Washington State’s experience with its Manufactured Housing Dispute Resolution Program, which it enacted in 2007. Washington’s program differs from the one proposed by this bill in that it is housed within the state Attorney General’s Office, and it also handles registration of mobilehome communities, a role that HCD plays in California. The funding mechanism for the Washington program is also a little bit different: Washington pays for its program by charging each mobilehome park in the state 10 dollars ($10) per space it rents out, of which the parks may pass on five dollars ($5) to the homeowner.

The core function of the Washington program is the same as that proposed for DFEH in this bill, however. Both homeowners and landlords may file a request for dispute resolution under this program. Upon receipt of such a request, the Attorney General’s office may negotiate with opposing parties, determine whether further investigation is warranted, decide whether a violation has occurred, and, when appropriate, impose fines or other penalties.

In its 2016 annual report, the Washington State program announced that it had received complaints from 228 mobilehome residents and 4 landlords that year. Residents’ top three complaints were about rental agreements, utility issues, and park rules and enforcement. The program initiated formal investigations in 15 percent of these complaints. Extrapolating from these statistics, which may or may not be truly comparable, the DFEH could expect to receive about 1,500 complaints and to conduct about 225 investigations annually under the program proposed by this bill.^[2]

Support: AARP; California Rural Legal Assistance Foundation, Inc.; the Sacramento Area Coalition of Mobilehomeowner Associations; Tim Sheahan, President, National Manufactured Home Owners Association; Sonoma Valley Golden State Manufactured-Home Owners League; Western Center on Law and Poverty; 2,685 individuals

Opposition: California Mobilehome Parkowner’s Alliance; Western Manufactured Housing Communities Association

HISTORY

Source: Golden State Manufactured Home Owners League

Related Pending Legislation: None known

Prior Legislation: AB 1803 (Nava, 2010) would have created the Mobilehome Residency Law Mediation Act, a dispute resolution program within the Attorney General’s Office to resolve disputes related to the MRL. AB 1803 failed passage in the Assembly Committee on Housing and Community Development.

Prior Vote:

Assembly Floor (Ayes 44, Noes 24)

Assembly Appropriations Committee (Ayes 11, Noes 5)

Assembly Housing and Community Development Committee (Ayes 5, Noes 2)

**************

1. The Mobilehome Residency Law: Rights and Obligations of the Mobilehome Park Homeowners, Tenants and Management, Department of Housing and Community Development Mobilehome Assistance Center <http://www.hcd.ca.gov/manufactured-mobile-home/mobile-home-ombudsman/docs/Mobilehome-Assistance-Center-FAQS.pdf> (as of June 23, 2017)(underlining in original). ↑

2. Washington State has about 61,545 rented mobilehome lots throughout the state, contrasted with the 393,000 spaces estimated to exist in California. ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 1269

Author:(Mark Stone)

As Amended Ver:May 30, 2017

Majority vote

SUMMARY: Establishes the Mobilehome Residents and Senior Protection Act (Act), a dispute resolution and enforcement program within the Department of Fair Employment and Housing (DFEH) to resolve disputes related to the Mobilehome Residency Law (MRL). Specifically, this bill:

1. Provides that it is the intent of the Legislature in enacting this Act to protect and safeguard the most vulnerable mobilehome owners and residents by affording them the enforcement and hearing procedures for housing discrimination.
2. Establishes the Act, which provides mobilehome owners and residents with the existing housing discrimination enforcement and hearing procedures of the DFEH for the enforcement of the MRL.
3. Provides that, on and after July 1, 2019, any homeowner or resident, as defined and claiming to be aggrieved by an alleged violation of any section of the MRL may file with the DFEH a verified complaint in writing that shall state the name and address of the person alleged to have committed the violation complained of, and that shall set forth the particulars of the alleged violation and contain any other information required by DFEH.
4. With respect to the filing of a complaint based upon an alleged violation of the MRL, the following shall apply:
   1. An aggrieved homeowner or resident shall first file a complaint with DFEH prior to pursuing judicial relief, unless the homeowner or residents believes in good faith that the claim requires immediate judicial relief so as to protect a tenancy interest or property right. In such a case, the homeowner or resident may first pursue judicial relief. If this occurs, the homeowner or resident shall notify DFEH that a civil action has been filed with the court by providing DFEH with either a copy of the complaint and the reason for immediate judicial relief, or with a form developed by DFEH for this purpose.
   2. After a complaint is filed with DFEH and no less than 30 days have elapsed from the filing date, a homeowner or resident who is unsatisfied with DFEH's investigation of the complaint or enforcement of the MRL may pursue immediate judicial relief without a final action by DFEH regarding the complaint. The homeowner or resident shall notify DFEH that a civil action has been filed with the court by providing DFEH with either a copy of the complaint or a form developed by DFEH for this purpose.
   3. The failure of a homeowner or resident to file a complaint based upon an alleged violation of the MRL shall not prevent the homeowner or resident from pursuing any and all available remedies, including judicial relief, under the law.
5. Provides that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, or in advance thereof if circumstances warrant, the Director of DFEH shall bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.
6. Requires DFEH to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.
7. Requires, on and after July 1, 2019, DFEH to collect and make available on a publicly searchable Internet database, at a minimum, the following information:
   1. The number of complaints;
   2. The nature of the complaint, including the section of law that is the basis of the complaint; and
   3. The outcome for each complaint.
8. Permits DFEH, on and after July 1, 2019 and in its sole discretion, to investigate potential violations of the MRL that are discovered during the course of an existing investigation, but for which DFEH has not received a formal complaint.
9. Provides that DFEH shall have the authority to promulgate any necessary procedural rules to administer complaints and violations of the MRL.
10. Establishes in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act shall be deposited. Expenditures from the account shall be used only for the costs associated with the duties of administering the Act.
    1. Requires DFEH, by no later than July 1, 2018 and by no later than July 1 of each subsequent year, to annually assess upon the management of a mobilehome park and collect a registration fee of five dollars for each mobilehome in the park that is subject to the MRL.
    2. Provides that mobilehome parks may charge the maximum five dollars of this assessment to homeowners and residents, except that it shall not be passed through in the form of any rent increase.
    3. Requires management to provide a written description of the purpose of the charge to homeowners and residents, which shall include both a description of the amount of the annual fee, along with contact information for DFEH for purposes of obtaining information relating to enforcement of the MRL.
    4. Provides that DFEH may file an action to enforce payment of unpaid registration assessments and late fees in the superior court in the county in which the mobilehome community is located. If DFEH prevails, the mobilehome park management shall pay the department’s costs, including reasonable attorney’s fees, for the enforcement proceedings.
    5. Requires all receipts from fees, damages or other penalties collected under this article as a result of administering and enforcing the Act, other than those due to a complainant, to be deposited into the Mobilehome Residency Law Protection Fund.
11. Defines "management" as the owner of a mobilehome park or an agent or representative authorized to act on his behalf in connection with matters relating to a tenancy in the park.
12. Defines "mobilehome" as a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code, as specified.
13. Defines "mobilehome park" as an area of land where two or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
14. Defines "homeowner" as a person who has a tenancy in a mobilehome park under a rental agreement.
15. Defines "resident" as a homeowner or other person who lawfully occupies a mobilehome.

FISCAL EFFECT: According to the Assembly Committee on Appropriations, requires DFEH to annually assess upon the management of a mobilehome park a registration fee of $5 for each mobilehome in the park that is subject to the MRL, and authorizes parks to charge this fee to homeowners and residents, although not through a rent increase. There are approximately 393,000 mobilehome spaces in the state, therefore, this fee will likely generate a little under $2 million per year. It is unclear what additional staffing, training, or other resources DFEH will need to implement this program, and whether revenue generated from the five dollar fee will be sufficient.

COMMENTS:

Background: More than 700,000 people live in California’s approximately 4,700 mobilehome parks. Mobilehomes are not truly mobile, in that it is often cost prohibitive to relocate them. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000 depending on the size of the home and the distance traveled. A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on, and he or she must pay rent and fees for the land and any community spaces.

The MRL extensively regulates the relationship between landlords and homeowners who occupy a mobilehome park. A limited number of provisions also apply to residents who rent, as opposed to own, their mobilehome. The MRL has two parts: Articles 1 through 8 apply to most mobilehome parks and Article 9 applies to resident-owned parks or parks which are established as a subdivision, cooperative or condominium. The provisions cover many issues including but not limited to the following: 1) the rental and lease contract terms and specific conditions of receipt and delivery of written leases, park rules and regulations, and other mandatory notices; 2) mandatory notice and amendment procedures for mobilehome park rules and regulations; 3) mandatory notice of fees and charges, and increases or changes in them; and 4) specified conditions governing mobilehome park evictions. A dispute that arises pursuant to the application of the MRL generally must be resolved in a civil court of competent jurisdiction.

This bill would create, for homeowners and residents, an enforcement mechanism for the MRL within DFEH, using DFEH's existing procedures for responding to complaints of housing discrimination. DFEH would also be required to produce written informational materials for homeowners and residents, as well as post statistical reports on its website. To fund the program, mobilehome parks must pay DFEH a registration fee of five dollars for each mobilehome in the park that is subject to the MRL. The parks may pass on this fee to homeowners and residents, but not through an increase in rent.

Need for this bill: According to the author, "the only current remedy available to a mobilehome resident when there has been a violation of the MRL is civil litigation. For seniors on fixed incomes as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action. There are two data points that speak to the need for the bill. A) The State of Washington has tracked outcomes and its annual data from 2011 - 2016 (http://www.atg.wa.gov/program-statistics-and-case-outcomes) indicates that 95% - 98% of all complaints for violations of a similar MRL statute are made by residents. B) GSMOL has presented members of the Committee with 990 letters (and 1,299 individual mobilehome residents) regarding the need for the bill. A review of those letters highlight specific violations of California's MRL. These violations include selective, inconsistent or no enforcement of park rules, including park owners violating their own park rules of “no subletting” by renting out their mobile homes, but not allowing homeowners to rent out their own mobile homes; interference with home sales; attempts to prevent homeowners from use of the clubhouse, especially for meetings; onsite management failure to keep posted office hours or respond to resident complaints; excessive bullying and threatening behavior by onsite managers; and frivolous charges leading to eviction."

DFEH: DFEH is the largest state civil rights agency in the country with 220 fulltime permanent staff operating out of five offices throughout California. The mission of the DFEH is "is to protect the people of California from unlawful discrimination in employment, housing, and public accommodations and from hate violence and human trafficking." The state's various civil rights laws give DFEH these responsibilities:

1. Engage in public outreach and provide training and technical assistance to employers, business establishments, and housing providers regarding their responsibilities under the law;
2. Investigate discrimination complaints and cases of systemic discrimination;
3. Facilitate mediation and resolution of disputes involving civil rights; and
4. Enforce the laws by prosecuting violations in civil court.

DFEH has existing procedures for, among other things, investigating, conciliating, and enforcing allegations of housing discrimination made unlawful pursuant to FEHA.

The Department of Housing and Community Development (HCD): HCD oversees several areas of mobilehome law, including health and safety standards, registration and titling of mobilehomes and parks, and, through the Mobilehome Ombudsman, assists the public with questions or problems associated with various aspects of mobilehome law. The Mobilehome Ombudsman provides assistance by taking complaints and helping to resolve and coordinate the resolution of those complaints. However, the Ombudsman does not have enforcement authority for the MRL, and cannot arbitrate, mediate, negotiate, or provide legal advice on mobilehome park rent disputes, lease or rental agreements, but may provide general information on these issues.

HCD also inspects parks and mobilehomes for health and safety issues. Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements under the Health and Safety Code (Mobilehome Parks Act) and Title 25. The program is funded through a $4 fee that the property owner may charge half ($2) to the homeowners. In addition to the MPM program, HCD also responds to health and safety complaints under the Mobilehome Parks Act.

Washington Manufactured Housing Dispute Resolution Program: Washington State has approximately 1,357 registered mobilehome communities and 61,545 rented mobile home lots throughout the state. In 2007, the Washington State Legislature recognized that there are factors unique to the relationship between a mobilehome tenant and their landlord, as well as the difficulty and expense of moving and relocating a mobilehome. In response, the State Legislature passed a law to authorize the Attorney General's (AG) Office to administer the Manufactured Housing Dispute Resolution Program (MHDRP). It also authorizes the Department of Revenue (DOR) to register mobilehome communities and collect registration fees to fund the program. Landlords are required to register each pad in their park with the department and pay $10 per year for each space that is rented to a person who owns their home. Landlords may charge each homeowner a maximum of $5 per year of this assessment. The fee is then used to fund the MHDRP and cover the DOR registration and licensing costs. Both homeowners and landlords may file a request for dispute resolution under this program, and the AG's Office may negotiate with opposing parties, determine whether further investigation is needed, decide whether a violation has occurred and issue fines and other penalties when appropriate in order to bring compliance with the law.

The MHDRP is required to provide an annual report of its activities to the Washington State Legislature, as well as statistical reports for review on its website. The 2016 Annual Report provides that, during 2016, the program received complaints from 228 mobilehome residents and 4 landlords. The top three types of complaints filed by residents were about rental agreements, utility issues, and park rules and enforcement. The AG initiated formal investigations in 15% of complaints.

Staff comment: This bill would apply DFEH's housing discrimination complaint procedures to the investigation and enforcement of alleged MRL violations, such as unlawful rent increases or disputes about park rules and regulations. DFEH is the state's civil rights agency, and is tasked with preventing and eliminating discrimination based on membership in a protected class. It has never had a role in enforcing the MRL, but does have extensive expertise in investigating, conciliating, and enforcing allegations of a wide variety of housing discrimination by landlords, real estate agents, home sellers, builders, mortgage lenders, and others. This includes allegations involving mobilehome parks and residents. While HCD has existing expertise in certain areas of mobilehome law, such as Health and Safety Code violations and titling and registration issues, it has never had a role in enforcing the MRL. Regardless of where a program such as the one envisioned by this bill is housed, it will certainly involve additional training and other resources due to state agencies' lack of expertise in the MRL.

There are approximately 393,000 mobilehome spaces in the state. This bill would require DFEH to annually assess upon the management of a mobilehome park a registration fee of five dollars for each mobilehome in the park that is subject to the MRL, and would authorize parks to charge this fee to homeowners and residents, although not through a rent increase. This would likely generate a little under $2 million per year. It is unclear what additional staffing, training, or other resources DFEH would need to implement this program, and whether revenue generated from the five dollar fee would be sufficient.

Arguments in support: According to supporters, including over 1,300 mobilehome park residents, if this bill is signed into law, it will provide mobilehome owners a realistic and affordable way to challenge violations of the MRL to better protect property rights and residents' investments in their homes. The Golden State Manufactured Home Owners League (GSMOL) contends that mobilehome owners have "purchased and maintained the largest classification of unsubsidized, affordable housing in our state. As California works toward affordable housing solutions, we need your help to protect us from displacement by park owners who violate the law."

Arguments in opposition: Opponents argue that MRL enforcement is an inappropriate role for DFEH. Opponent Western Manufactured Housing Communities Association (WMA) contends that most of DFEH's duties under this bill are already statutorily mandated to be performed by HCD. WMA suggests that the best solution to help resolve resident complaints is to adequately fund HCD's Office of the Mobilehome Ombudsman to perform their current duties as outlined in statute and not create a new two million dollar program in a different department.

Related legislation:

AB 1205 (Wieckowski) of 2013: Would have enacted the Mobilehome Residency Law Mediation Act within the MRL to establish a mediation program for alleged violations of the MRL, including investigation of alleged violations of the MRL and determination and notice of violations, to be administered by an unspecified department. This bill died in the Assembly Committee on Housing and Community Development.

AB 1803 (Nava) 2010: Would have created the Mobilehome Residency Law Mediation Act, a dispute resolution program within the Attorney General's Office to resolve disputes related to the MRL. This bill failed passage in the Assembly Committee on Housing and Community Development.

Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0000879

Date of Hearing: May 17, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1269

Author:(Mark Stone) – As Amended Ver:May 1, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY

This bill establishes the Mobilehome Residents and Senior Protection Act, a dispute resolution and enforcement program within the Department of Fair Employment and Housing (DFEH) to resolve disputes related to the Mobilehome Residency Law (MRL). Specifically, this bill:

1. Provides that any homeowner or resident, as defined, may file with the DFEH a verified complaint in writing and containing any information required by DFEH.
2. Provides that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, the Director of DFEH is required to bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.
3. Requires DFEH to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, and a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.
4. Requires DFEH to collect and make available on a publicly searchable Internet database, information regarding complaints, as specified.
5. Establishes in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act will be deposited. Expenditures from the account must be used only for the costs associated with the duties of administering the Act.
6. Requires DFEH to annually assess management of a mobilehome park a registration fee of $5 for each mobilehome in the park that is subject to the MRL.
7. Provides that mobilehome parks may charge this assessment to homeowners and residents. The purpose of this charge must be described in writing to each homeowner and resident charged and cannot be passed through in the form of any rent increase. Requires the assessment for each mobilehome to be deposited in the Mobilehome Residency Law Protection Fund.

FISCAL EFFECT:

Requires DFEH to annually assess upon the management of a mobilehome park a registration fee of $5 for each mobilehome in the park that is subject to the MRL, and authorizes parks to charge this fee to homeowners and residents, although not through a rent increase. There are approximately 393,000 mobilehome spaces in the state, therefore, this fee will likely generate a little under $2 million per year. It is unclear what additional staffing, training, or other resources DFEH will need to implement this program, and whether revenue generated from the five dollar fee will be sufficient.

COMMENTS:

1. Purpose. According to the author, "the only current remedy available to a mobilehome resident when there has been a violation of the MRL is civil litigation. For seniors on fixed incomes as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action. There are two data points that speak to the need for the bill. A) The State of Washington has tracked outcomes and its annual data from 2011 – 2016 indicates that 95% - 98% of all complaints for violations of a similar MRL statute are made by residents. B) GSMOL has presented members of the Committee with 990 letters (and 1,299 individual mobilehome residents) regarding the need for the bill. A review of those letters highlight specific violations of California's MRL. These violations include selective, inconsistent or no enforcement of park rules, including park owners violating their own park rules of “no subletting” by renting out their mobile homes, but not allowing homeowners to rent out their own mobile homes; interference with home sales; attempts to prevent homeowners from use of the clubhouse, especially for meetings; onsite management failure to keep posted office hours or respond to resident complaints; excessive bullying and threatening behavior by onsite managers; and frivolous charges leading to eviction."
2. Background. California has approximately 4,700 mobilehome parks that house more than 700,000 people. A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on, and he or she must pay rent and fees.

The MRL regulates the relationship between landlords and homeowners who occupy a mobilehome park. The MRL cover issues including but not limited to: a) the rental and lease contract terms, park rules and regulations, and other mandatory notices; b) mandatory notice of fees and charges, including changes; and c) mobilehome park evictions. A dispute that arises generally must be resolved in a civil court of competent jurisdiction.

The Department of Housing and Community Development (HCD) oversees some areas of mobilehome law, including health and safety standards, registration and titling of mobilehomes and parks, and, through the Mobilehome Ombudsman, assists the public with questions or problems associated with various aspects of mobilehome law. The Mobilehome Ombudsman provides assistance but does not have enforcement authority for the MRL, and cannot arbitrate, mediate, negotiate, or provide legal advice on mobilehome park rent disputes, lease or rental agreements, but may provide general information on these issues.

Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements. The program is funded through a $4 fee on property owners who may recover half ($2) from the homeowners.

DFEH is the State's civil rights agency and has existing procedures for, among other things, investigating, conciliating, and enforcing allegations of housing discrimination made unlawful pursuant to FEHA.

This bill creates, for homeowners and residents, an enforcement mechanism for the MRL within DFEH, using DFEH's existing procedures for responding to complaints of housing discrimination. DFEH is required to produce written informational materials for homeowners and residents, as well as post statistical reports on its website.

1. Support. According to supporters, including approximately1,300 mobilehome park residents, this billwill provide mobilehome owners a realistic and affordable way to challenge violations of the MRL to better protect property rights and residents' investments in their homes. The Golden State Manufactured Home Owners League (GSMOL) contends that mobilehome owners have "purchased and maintained the largest classification of unsubsidized, affordable housing in our state. As California works toward affordable housing solutions, we need your help to protect us from displacement by park owners who violate the law."
2. Opposition. Opponents argue that MRL enforcement is an inappropriate role for DFEH. The Western Manufactured Housing Communities Association (WMA), in opposition, contends that most of DFEH's duties under this bill are already statutorily mandated to be performed by HCD. WMA suggests that the best solution to help resolve resident complaints is to adequately fund HCD's Office of the Mobilehome Ombudsman to perform their current duties as outlined in statute and not create a new $2 million program in a different department.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 26, 2017

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

ABPCA Bill Id:AB 1269 (

Author:Mark Stone) – As Amended Ver:March 30, 2017

SUBJECT: Mobilehome Residency Law

SUMMARY: Establishes the Mobilehome Residents and Senior Protection Act (Act), a dispute resolution and enforcement program within the Department of Fair Employment and Housing (DFEH) to resolve disputes related to the Mobilehome Residency Law (MRL). Specifically, this bill:

1. Provides that it is the intent of the Legislature in enacting this Act to protect and safeguard the most vulnerable mobilehome owners and residents by affording them the enforcement and hearing procedures for housing discrimination.
2. Establishes the Act, which provides mobilehome owners and residents with the existing housing discrimination enforcement and hearing procedures of the DFEH for the enforcement of the MRL.
3. Provides that any homeowner or resident, as defined and claiming to be aggrieved by an alleged violation of any section of the MRL may file with the DFEH a verified complaint in writing that shall state the name and address of the person alleged to have committed the violation complained of, and that shall set forth the particulars of the alleged violation and contain any other information required by DFEH.
4. Provides that, in the case of failure to eliminate a violation of the MRL that has occurred, or is about to occur, through conference, conciliation, mediation, or persuasion, or in advance thereof if circumstances warrant, the Director of DFEH shall bring a civil action in the name of the department on behalf of the aggrieved person as a real party in interest.
5. Requires DFEH to produce, for homeowners and residents, written materials summarizing the Act, including how to file a complaint with the DFEH, a toll-free telephone number and Internet website address a homeowner or resident can use to seek additional information and communicate complaints.
6. Requires DFEH to collect and make available on a publicly searchable Internet database, at a minimum, the following information:
   1. The number of complaints;
   2. The violation complained; and
   3. The outcome for each complaint.
7. Permits DFEH, in its sole discretion, to investigate potential violations of the MRL that are discovered during the course of an existing investigation, but for which DFEH has not received a formal complaint.
8. Provides that DFEH shall have the authority to promulgate any necessary procedural rules to administer complaints and violations of the MRL.
9. Establishes in the State Treasury the Mobilehome Residency Law Protection Fund into which funds collected pursuant to the Act shall be deposited. Expenditures from the account shall be used only for the costs associated with the duties of administering the Act.
   1. Requires DFEH to annually assess upon the management of a mobilehome park a registration fee of five dollars for each mobilehome in the park that is subject to the MRL.
   2. Provides that mobilehome parks may charge the maximum five dollars of this assessment to homeowners and residents. The purpose of this charge shall be described in writing to each homeowner and resident charged and shall not be passed through to any homeowner or resident in the form of any rent increase. The registration assessment for each mobilehome shall be deposited in the Mobilehome Residency Law Protection Fund.
   3. Provides that DFEH may file an action to enforce payment of unpaid registration assessments and late fees in the superior court in the county in which the mobilehome community is located. If DFEH prevails, the mobilehome park management shall pay the department’s costs, including reasonable attorney’s fees, for the enforcement proceedings.
   4. Requires all receipts from fees, damages or other penalties collected under this article as a result of administering and enforcing the Act, other than those due to a complainant, to be deposited into the Mobilehome Residency Law Protection Fund.
10. Defines "management" as the owner of a mobilehome park or an agent or representative authorized to act on his behalf in connection with matters relating to a tenancy in the park.
11. Defines "mobilehome" as a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code, as specified.
12. Defines "mobilehome park" as an area of land where two or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
13. Defines "homeowner" as a person who has a tenancy in a mobilehome park under a rental agreement.
14. Defines "resident" as a homeowner or other person who lawfully occupies a mobilehome.

EXISTING LAW:

1. Regulates, pursuant to the MRL, the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents. (Civil Code Section 798, et seq.)
2. (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code).
3. Establishes DFEH within the state's Business, Consumer Services, and Housing Agency (Govt. Code Section 12901).
4. Grants DFEH the authority to, among other things, receive, investigate, conciliate, mediate, and prosecute complaints alleging practices made unlawful pursuant to the Fair Employment and Housing Act (FEHA) (Govt. Code Section 12930).
5. Governs the procedure for the prevention and elimination of housing discrimination made unlawful pursuant to FEHA (Govt. Code Sections 12980- 12989.3).

FISCAL EFFECT: Unknown

COMMENTS:

Background: More than 700,000 people live in California’s approximately 4,700 mobilehome parks. Mobilehomes are not truly mobile, in that it is often cost prohibitive to relocate them. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000 depending on the size of the home and the distance traveled. A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on, and he or she must pay rent and fees for the land and any community spaces.

The MRL extensively regulates the relationship between landlords and homeowners who occupy a mobilehome park. A limited number of provisions also apply to residents who rent, as opposed to own, their mobilehome. The MRL has two parts: Articles 1 through 8 apply to most mobilehome parks and Article 9 applies to resident-owned parks or parks which are established as a subdivision, cooperative or condominium. The provisions cover many issues including but not limited to the following: 1) the rental and lease contract terms and specific conditions of receipt and delivery of written leases, park rules and regulations, and other mandatory notices; 2) mandatory notice and amendment procedures for mobilehome park rules and regulations; 3) mandatory notice of fees and charges, and increases or changes in them; and 4) specified conditions governing mobilehome park evictions. A dispute that arises pursuant to the application of the MRL generally must be resolved in a civil court of competent jurisdiction.

This bill would create, for homeowners and residents, an enforcement mechanism for the MRL within DFEH, using DFEH's existing procedures for responding to complaints of housing discrimination. DFEH would also be required to produce written informational materials for homeowners and residents, as well as post statistical reports on its website. To fund the program, mobilehome parks must pay DFEH a registration fee of five dollars for each mobilehome in the park that is subject to the MRL. The parks may pass on this fee to homeowners and residents, but not through an increase in rent.

Need for this bill: According to the author, "the only current remedy available to a mobilehome resident when there has been a violation of the MRL is civil litigation. For seniors on fixed incomes as well as low-income residents, litigation is not an economically feasible enforcement mechanism, particularly for any issue that does not qualify for class-action. There are two data points that speak to the need for the bill. A) The State of Washington has tracked outcomes and its annual data from 2011 - 2016 (http://www.atg.wa.gov/program-statistics-and-case-outcomes) indicates that 95% - 98% of all complaints for violations of a similar MRL statute are made by residents. B) GSMOL has presented members of the Committee with 990 letters (and 1,299 individual mobilehome residents) regarding the need for the bill. A review of those letters highlight specific violations of California's MRL. These violations include selective, inconsistent or no enforcement of park rules, including park owners violating their own park rules of “no subletting” by renting out their mobile homes, but not allowing homeowners to rent out their own mobile homes; interference with home sales; attempts to prevent homeowners from use of the clubhouse, especially for meetings; onsite management failure to keep posted office hours or respond to resident complaints; excessive bullying and threatening behavior by onsite managers; and frivolous charges leading to eviction."

DFEH: DFEH is the largest state civil rights agency in the country with 220 fulltime permanent staff operating out of five offices throughout California. The mission of the DFEH is "is to protect the people of California from unlawful discrimination in employment, housing, and public accommodations and from hate violence and human trafficking." The state’s various civil rights laws give DFEH these responsibilities:

• Engage in public outreach and provide training and technical assistance to employers, business establishments, and housing providers regarding their responsibilities under the law;
• Investigate discrimination complaints and cases of systemic discrimination;
• Facilitate mediation and resolution of disputes involving civil rights; and
• Enforce the laws by prosecuting violations in civil court.

DFEH has existing procedures for, among other things, investigating, conciliating, and enforcing allegations of housing discrimination made unlawful pursuant to FEHA.

The Department of Housing and Community Development (HCD): HCD oversees several areas of mobilehome law, including health and safety standards, registration and titling of mobilehomes and parks, and, through the Mobilehome Ombudsman, assists the public with questions or problems associated with various aspects of mobilehome law. The Mobilehome Ombudsman provides assistance by taking complaints and helping to resolve and coordinate the resolution of those complaints. However, the Ombudsman does not have enforcement authority for the MRL, and cannot arbitrate, mediate, negotiate, or provide legal advice on mobilehome park rent disputes, lease or rental agreements, but may provide general information on these issues.

HCD also inspects parks and mobilehomes for health and safety issues. Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements under the Health and Safety Code (Mobilehome Parks Act) and Title 25. The program is funded through a $4 fee that the property owner may charge half ($2) to the homeowners. In addition to the MPM program, HCD also responds to health and safety complaints under the Mobilehome Parks Act.

Washington Manufactured Housing Dispute Resolution Program: Washington State has approximately 1,357 registered mobilehome communities and 61,545 rented mobile home lots throughout the state. In 2007, the Washington State Legislature recognized that there are factors unique to the relationship between a mobilehome tenant and their landlord, as well as the difficulty and expense of moving and relocating a mobilehome. In response, the State Legislature passed a law to authorize the Attorney General's (AG) Office to administer the Manufactured Housing Dispute Resolution Program (MHDRP). It also authorizes the Department of Revenue (DOR) to register mobilehome communities and collect registration fees to fund the program. Landlords are required to register each pad in their park with the department and pay $10 per year for each space that is rented to a person who owns their home. Landlords may charge each homeowner a maximum of $5 per year of this assessment. The fee is then used to fund the MHDRP and cover the DOR registration and licensing costs. Both homeowners and landlords may file a request for dispute resolution under this program, and the AG's Office may negotiate with opposing parties, determine whether further investigation is needed, decide whether a violation has occurred and issue fines and other penalties when appropriate in order to bring compliance with the law.

The MHDRP is required to provide an annual report of its activities to the Washington State Legislature, as well as statistical reports for review on its website. The 2016 Annual Report provides that, during 2016, the program received complaints from 228 mobilehome residents and 4 landlords. The top three types of complaints filed by residents were about rental agreements, utility issues, and park rules and enforcement. The AG initiated formal investigations in 15% of complaints.

Staff comment: This bill would apply DFEH's housing discrimination complaint procedures to the investigation and enforcement of alleged MRL violations, such as unlawful rent increases or disputes about park rules and regulations. DFEH is the state's civil rights agency, and is tasked with preventing and eliminating discrimination based on membership in a protected class. It has never had a role in enforcing the MRL, but does have extensive expertise in investigating, conciliating, and enforcing allegations of a wide variety of housing discrimination by landlords, real estate agents, home sellers, builders, mortgage lenders, and others. This includes allegations involving mobilehome parks and residents. While HCD has existing expertise in certain areas of mobilehome law, such as Health and Safety Code violations and titling and registration issues, it has never had a role in enforcing the MRL. Regardless of where a program such as the one envisioned by this bill is housed, it will certainly involve additional training and other resources due to state agencies' lack of expertise in the MRL.

There are approximately 393,000 mobilehome spaces in the state. This bill would require DFEH to annually assess upon the management of a mobilehome park a registration fee of five dollars for each mobilehome in the park that is subject to the MRL, and would authorize parks to charge this fee to homeowners and residents, although not through a rent increase. This would likely generate a little under $2 million per year. It is unclear what additional staffing, training, or other resources DFEH would need to implement this program, and whether revenue generated from the five dollar fee would be sufficient.

Arguments in support: According to supporters, including approximately1,300 mobilehome park residents, if this bill is signed into law, it will provide mobilehome owners a realistic and affordable way to challenge violations of the MRL to better protect property rights and residents' investments in their homes. The Golden State Manufactured Home Owners League (GSMOL) contends that mobilehome owners have "purchased and maintained the largest classification of unsubsidized, affordable housing in our state. As California works toward affordable housing solutions, we need your help to protect us from displacement by park owners who violate the law."

Arguments in opposition: Opponents argue that MRL enforcement is an inappropriate role for DFEH. Opponent Western Manufactured Housing Communities Association

(WMA) contends that most of DFEH's duties under this bill are already statutorily mandated to be performed by HCD. WMA suggests that the best solution to help resolve resident complaints is to adequately fund HCD's Office of the Mobilehome Ombudsman to perform their current duties as outlined in statute and not create a new two million dollar program in a different department.

Committee amendments:

The Committee amendments clarify that the definitions in this bill are for the sole purpose of investigation or pursuit of conciliation or remedy arising from a complaint alleging a violation the MRL, and make a technical change.

Related legislation:

AB 1803 (Nava, 2010): Would have created the Mobilehome Residency Law Mediation Act, a dispute resolution program within the Attorney General's Office to resolve disputes related to the MRL. This bill failed passage in the Assembly Committee on Housing and Community Development.

REGISTERED SUPPORT / OPPOSITION:

Support

Golden State Manufactured Home Owners League (sponsor)

Sonoma Valley GSMOL

Mobilehome Residents (1,355)

Opposition

California Mobilehome Parkowners Alliance

Western Manufactured Housing Communities Association

Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085