UNFINISHED BUSINESS  

Bill No: SB 915

Author: Leyva (D), et al.

Amended: 8/24/20

Vote: 21

SENATE JUDICIARY COMMITTEE: 7-1, 5/22/20

AYES: Jackson, Durazo, Lena Gonzalez, Monning, Stern, Umberg, Wieckowski

NOES: Jones

NO VOTE RECORDED: Borgeas

SENATE APPROPRIATIONS COMMITTEE: 5-2, 6/18/20

AYES: Portantino, Bradford, Hill, Leyva, Wieckowski

NOES: Bates, Jones

SENATE FLOOR: 29-11, 6/25/20

AYES: Allen, Archuleta, Atkins, Beall, Bradford, Caballero, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Hertzberg, Hill, Hueso, Hurtado, Jackson, Leyva, McGuire, Mitchell, Monning, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener

NOES: Bates, Borgeas, Chang, Dahle, Grove, Jones, Melendez, Moorlach, Morrell, Nielsen, Wilk

ASSEMBLY FLOOR: Not available

SUBJECT: Mobilehome parks: emergency relief: coronavirus (COVID-19)

SOURCE: Golden State Manufactured-Home Owners’ League

DIGEST:

This bill prohibits, temporarily, mobilehome parks from evicting residents who timely notify park management that they have been impacted, as defined, by COVID-19. This bill further mandates that mobilehome parks give such COVID-19-impacted residents additional time, as specified, to comply with demands to repay outstanding rent, utilities or other charges, or cure violations of park rules and regulations.

Assembly Amendments

(1) disallow additional time for mobilehome residents to comply with a demand to correct a violation of reasonable parks rules or regulations if that violation constitutes a violation of any fire safety code; and (2) clarify that any agreement by a mobilehome resident to make up for missed rent payments or other charges in under a year must be entered into voluntarily.

ANALYSIS:

Existing state law:

1. Proclaims that, beginning March 4, 2020, a state of emergency exists across the entire state due to the COVID-19 pandemic. (Governor’s Proc. of a State of Emergency (Mar. 4, 2020).)
2. Provides that, until 90 days after the Governor lifts the state of emergency related to COVID-19 or until repealed or amended by the Judicial Council, all of the following apply:
   1. a court may not issue a summons on a complaint for unlawful detainer unless it finds, in its discretion and on the record, that the action is necessary to protect public health and safety;
   2. a court may not enter a default or a default judgment for restitution in an unlawful detainer action for failure of defendant to appear unless the court finds that the action is necessary to protect public health and safety and the defendant has not appeared in the action within the time provided by law, including by any applicable executive order; and
   3. if a defendant has appeared in a pending unlawful detainer action, the court may not set a trial date earlier than 60 days after a request for trial is made unless the court finds that an earlier trial date is necessary to protect public health and safety. Any trial set in an unlawful detainer proceeding as of April 6, 2020 must be continued at least 60 days from the initial date of trial. (Judicial Council, Emergency Rules Related to COVID-19, Emergency Rule 1.)
3. Provides that tenants served with a court summons for eviction before May 31, 2020, have an additional 60 days to file their response, provided that the tenant meets all of the follow conditions:

a) the tenant was current on all rent payments through March 27, 2020;

b) tenant provided written notice to the landlord, within seven days after the rent was due, that the tenant cannot pay all of the rent because of impacts from COVID-19; and

c) the tenant maintains documentation of lost income due to COVID-19, though the tenant does not have to provide that documentation to the landlord until the tenant pays back the missed rent. (Governor’s Exec. Order N-37-20 (Mar. 27, 2020).)

1. Sets forth the grounds, including, but not limited to, both of the following, on which a mobilehome park may terminate the tenancy of a homeowner and commence a unlawful detainer action after meeting other specified procedural conditions:

a) nonpayment of rent, utility charges, or reasonable incidental service charges under the lease, if they remain unpaid for five days after first due and after expiration of a notice demanding payment within an additional three days; (Civ. Code § 798.56(e)) and

b) failure to comply with a notice demanding correction of a violation of any reasonable park rule or regulation within seven days. (Civ. Code § 798.56(d and e.))

This bill:

1. Prohibits mobilehome park management, during a declared state or local COVID-19 emergency and for 120 days after (hereafter "COVID period"), from terminating or attempting to terminate the tenancy of a mobilehome owner or resident who provides written notice of COVID-19 impacts, unless the termination is necessary to protect the public health and safety.
2. Provides that, during the COVID period, mobilehome park management shall not do any of the following to a homeowner or resident who provides written notice of COVID-19 impacts:
3. Increase rent by giving the required notice under Civil Code Section 798.30; and
4. Terminate tenancy due to nonpayment of rent, utility charges, or reasonable incidental service charges or based on the procedures in Civil Code Section 798.55.
5. Establishes that, during the COVID period, a mobilehome owner or resident shall be considered impacted by the COVID-19 pandemic if the resident presents reasonable evidence, as specified, that:
6. The homeowner or resident cannot pay any part of what it owes the park for rent, utilities, or other charges due to job or income loss or reduction suffered as a proximate cause of the COVID-19 pandemic which can be documented by reasonable evidence including, but is not limited to, letters, pay stubs, or bank statements; or
7. The homeowner or resident is unable, due to COVID-19 imposed restrictions, to comply with a demand from the park to correct any violation of a reasonable park rule or regulation within seven days due to an inability to relocate any person or persons residing in the mobile, or the inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the resident's home or space; or
8. The homeowner or resident is unable to comply with a seven-day notice to relocate any person or persons residing in the homeowner's or resident's mobilehome due to coronavirus (COVID-19)-imposed restrictions.
9. Establishes that, during the COVID period, mobilehome owners or residents can notify park management of COVID hardships within three days of receiving specified notices for nonpayment of rent, or within seven days for violations of park rules or regulations.
10. Requires, that when issuing specified notices for nonpayment of rent or violations for park rules or regulations given during the COVID period, that park management shall provide mobilehome owners and residents with specified written notice notifying them of how much time they have to inform management of their inability to comply due to a COVID hardship.
11. Requires park management to provide mobilehome owners or residents with COVID impacts one year from the expiration of the three-day notice to pay, unless a different amount of time is voluntarily agreed upon without threat, duress, or compulsion by the homeowner or resident and the management.
12. Requires park management to provide mobilehome owners or residents with COVID impacts additional time of up to one year to address park rule or regulation violations, unless failure to comply sooner would: perpetuate a public nuisance or cause a material threat to public health or safety by endangering the life, limb, health, or safety of the public or park; or if a fire code violation or other issue related to fire safety is the basis for the park rule or regulation violation.
13. Allows mobilehome owners and residents to enforce their rights under the bill through a civil action in court and empowers the court to order injunctive relief and any other relief the court deems proper, including establishing rent repayment plans.
14. Directs mobilehome park management to itemize, on the homeowner's or resident's rental invoice, any payments made and due under any repayment plan.
15. Provides that a court-ordered repayment plan shall be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to COVID.
16. Prohibits a homeowner or resident from transferring or selling their mobilehome before completing their payments in a court-ordered repayment plan or mutually agreed upon by the homeowner or resident and the management, unless the sale or transfer occurs by way of an irrevocable escrow instruction.
17. Specifies that the provisions of this bill shall not supersede a local ordinance that provides more protection to residents who are subject to this article.
18. Specifies that this bill is not to be interpreted to alter the meaning or application of the Judicial Council's Emergency Rule 1 adopted on April 6, 2020.
19. Prohibits park management, after receiving a notice from a homeowner or resident that they are impacted by the COVID-19 pandemic, as specified, from doing any of the following:
20. Raising the rent while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan.
21. Imposing additional service charges while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan.
22. Seeking to enforce an order enjoining a continuing or recurring violation of any reasonable park rule or regulation.

Background

In ordinary times, housing plays an important role in human well-being. During the COVID-19 pandemic, housing has taken on an even more vital role, since public health experts advise that sheltering in place, physical distancing, good hygiene, access to proper sanitation, and self-quarantining when infectious or exposed are all critical to preventing spread of the disease. All are made difficult or impossible without a home.

Now that measures to curb spread of the disease have resulted in a dramatic economic downturn and mass layoffs, California confronts a significant risk that large numbers of Californians will soon lose their homes at a time when that has especially acute public health consequences.

The COVID-19 pandemic and its economic fallout have a unique impact on mobilehome housing that goes beyond the effect on conventional residential rental housing. Mobilehome owners simultaneously own the structure in which they dwell, and rent the land on which the home sits from the park. Moreover, despite their names, mobilehomes are not, in fact, very mobile. Consequently, mobilehome residents who get evicted not only have to leave, they also often lose a significant asset – the mobilehome – in the process.

How this bill works conceptually

The mobilehome-specific approach proposed by this bill would work, in broad conceptual terms, as follows. For as long as any statewide or local state of emergency is in effect and for 120 days thereafter, parks could not proceed to evict mobilehome owners or residents in two different scenarios.

First, parks could not proceed to evict mobilehome owners or residents who, before expiration of any three day legal demand for payment of rent, utilities, or incidental charges, notify the park that they cannot pay on time because they have lost a job or income due to the COVID-19 pandemic. Instead, the park would have to allow the mobilehome owner or resident additional time to make up the payment. The mobilehome owner would get a one year unless the parties voluntarily agree to a different amount of time.

Second, parks could not proceed to evict mobilehome owners or residents who, within seven days of receiving a demand from the park to correct a violation of a park rule or regulation, notify the park that they cannot comply within the deadline because of a complication resulting from the COVID-19 pandemic. Instead, the park would have to allow the mobilehome owner or resident whatever additional time they need to comply, but not more than a year. Mobilehome owners or residents could not get this additional time if the violation in question is a fire code violation or if it would perpetuate a public nuisance or cause a material threat to public health or safety.

Under either scenario, parks could not impose rent increases, fees, or additional charges during the extended repayment or compliance period. Mobilehome owners and residents would have the ability to enforce all of these rights in court if necessary.

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

SUPPORT: (Verified 8/31/20)

Golden State Manufactured-home Owners League (source)

Bay Federal Credit Union

California Commission on Aging

Country Villa Homeowners Association

Public Law Center

Santa Cruz County Board of Supervisors

289 Individuals

OPPOSITION: (Verified 8/31/20)

Apartment Association of Orange County

Apartment Association, California Southern Cities

Cabrillo Management Corporation

California Association of Realtors

California Mobilehome Parkowners Alliance

California State Firefighters’ Association

East Bay Rental Housing Association

Western Manufactured Housing Communities Association

ARGUMENTS IN SUPPORT: According to the author, “Senate Bill 915 creates a process to protect mobilehome residents that have been impacted by the COVID-19 crisis by preventing management of mobilehome parks from terminating or attempting to terminate the tenancy of residents. Mobilehomes make up approximately 10% of the state’s affordable housing stock. In most cases, residents are comprised of vulnerable populations, including seniors, veterans, immigrants, and low / fixed income individuals and families.”

As sponsor of the bill, the Golden State Manufactured-Home Owners League writes, “SB 915 would create a process to protect mobilehome park residents impacted by the COVID-19 crisis, by giving them a greater chance of remaining in the mobilehome during the pandemic and a reasonable time after.”

ARGUMENTS IN OPPOSITION: In opposition to this bill, Western Manufactured Housing Communities Association writes, “WMA understands that residents have been severely impacted by the COVID-19 crisis. We also want to express that our parkowners have been similarly impacted. […] [O]ur parkowners have mortgages of their own to pay. They have responsibilities to provide high-quality park amenities that require upkeep and maintenance.”

In further opposition to this bill, the California Mobilehome Parkowners Alliance writes, “In addition, SB 915 prohibits parkowners from enforcing the requirements of some 7-day notices. These notices are essential tools parkowners need to enforce park rules and make their parks a good environment for all tenants.”

Prepared by:

8/31/20 20:03:10

**** END ****

SENATE THIRD READING

STR Bill Id:SB 915

Author:(Leyva)

As Amended Ver:August 24, 2020

Majority vote

SUMMARY:

Prohibits mobilehome parks from evicting residents who notify park management of COVID-19 impacts to their ability to pay rent and requires parks to provide those residents with extra time to repay outstanding rent, utilities or other charges, or cure violations of park rules

Major Provisions

1. Prohibits mobilehome park management, during a declared state or local COVID-19 emergency and for 120 days after (hereafter "COVID period"), from terminating or attempting to terminate the tenancy of a mobilehome owner or resident who provides written notice of COVID-19 impacts, unless the termination is necessary to protect the public health and safety.
2. Provides that, during the COVID period, mobilehome park management shall not do any of the following to a homeowner or resident who provides written notice of COVID-19 impacts:
3. Increase rent by giving the required notice under Civil Code Section 798.30; and
4. Terminate tenancy due to nonpayment of rent, utility charges, or reasonable incidental service charges or based on the procedures in Civil Code Section 798.55.
5. Establishes that, during the COVID period, a mobilehome owner or resident shall be considered impacted by the COVID-19 pandemic if the resident presents reasonable evidence, as specified, that:
6. The homeowner or resident cannot pay any part of what it owes the park for rent, utilities, or other charges due to job or income loss or reduction suffered as a proximate cause of the COVID-19 pandemic which can be documented by reasonable evidence including, but is not limited to, letters, pay stubs, or bank statements; or
7. The homeowner or resident is unable, due to COVID-19 imposed restrictions, to comply with a demand from the park to correct any violation of a reasonable park rule or regulation within seven days due to an inability to relocate any person or persons residing in the mobile, or the inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the resident's home or space; or
8. The homeowner or resident is unable to comply with a seven-day notice to relocate any person or persons residing in the homeowner's or resident's mobilehome due to coronavirus (COVID-19)-imposed restrictions.
9. Establishes that, during the COVID period, mobilehome owners or residents can notify park management of COVID hardships within three days of receiving specified notices for nonpayment of rent, or within seven days for violations of park rules or regulations.
10. Requires, that when issuing specified notices for nonpayment of rent or violations for park rules or regulations given during the COVID period, that park management shall provide mobilehome owners and residents with specified written notice notifying them of how much time they have to inform management of their inability to comply due to a COVID hardship.
11. Requires park management to provide mobilehome owners or residents with COVID impacts one year from the expiration of the three-day notice to pay, unless a different amount of time is voluntarily agreed upon without threat, duress, or compulsion by the homeowner or resident and the management.
12. Requires park management to provide mobilehome owners or residents with COVID impacts additional time of up to one year to address park rule or regulation violations, unless failure to comply sooner would: perpetuate a public nuisance or cause a material threat to public health or safety by endangering the life, limb, health, or safety of the public or park; or if a fire code violation or other issue related to fire safety is the basis for the park rule or regulation violation.
13. Allows mobilehome owners and residents to enforce their rights under the bill through a civil action in court and empowers the court to order injunctive relief and any other relief the court deems proper, including establishing rent repayment plans.
14. Directs mobilehome park management to itemize, on the homeowner's or resident's rental invoice, any payments made and due under any repayment plan.
15. Provides that a court-ordered repayment plan shall be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to COVID.
16. Prohibits a homeowner or resident from transferring or selling their mobilehome before completing their payments in a court-ordered repayment plan or mutually agreed upon by the homeowner or resident and the management, unless the sale or transfer occurs by way of an irrevocable escrow instruction.
17. Specifies that the provisions of this bill shall not supersede a local ordinance that provides

more protection to residents who are subject to this article.

1. Specifies that this bill is not to be interpreted to alter the meaning or application of the Judicial Council's Emergency Rule 1 adopted on April 6, 2020.
2. Prohibits park management, after receiving a notice from a homeowner or resident that they are impacted by the COVID-19 pandemic, as specified, from doing any of the following:
3. Raising the rent while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
4. Imposing additional service charges while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
5. Seeking to enforce an order enjoining a continuing or recurring violation of any reasonable park rule or regulation.

COMMENTS:

COVID-19 Emergency Policies to Prevent Evictions: Governor Newsom declared a State of Emergency on March 4, 2020 due to COVID-19 and in the following months large sectors of the economy were shut down in order to reduce spread of the virus. In recognition of this situation, on April 6, 2020, the California Judicial Council adopted Emergency Rule 1 to effectively halt evictions from proceeding unless the need for an eviction was based on a threat to public health or safety. Though property owners can still file unlawful detainer complaints, the Judicial Council's Emergency Rule 1 prevents a court summons from being issued and also prevents the entry of defaults or default judgments. The Emergency Rule is set to expire 90 days after the Governor's COVID-19 State of Emergency ends or whenever it is amended or repealed by the Judicial Council. Without action to prevent evictions when the courts reopen, those renters and mobilehome owners who are unable to repay all the unpaid rent immediately could face eviction.

Staff Comments: There are a number of bills under consideration by the Legislature this year which attempt to protect renters and mobilehome owners from eviction. This bill, SB 915, offers broad protections for mobilehome owners and residents during a state or locally-declared COVID-19 emergency and for 120 days afterwards (hereafter "COVID period"). Specifically, mobilehome park management is prevented from terminating a homeowner's or resident's tenancy due to non-payment or park rule or regulation violations during the COVID period. Additionally, under this bill, park management is required to give up to a year for repayment. These protections offer the potential to ensure that many COVID-impacted individuals in mobilehome parks remain housed during an unprecedented public health crisis.

Given the considerable unknowns about how long the COVID state of emergency will last in California – and how long locally-declared emergencies will be in place across its 58 counties and 492 cities – this bill's laudable policy goals also introduce considerable uncertainty for park operators during an already challenging time. As the Legislature and the Executive branch weigh different approaches to promoting housing stability during this crisis, a unified policy for residential renters, mobilehome owners, and residents of parks may offer the simplest approach. Finally, staff notes that, in a normal legislative year, this bill would likely be double-referred to this committee and the Assembly Judiciary Committee.

Related legislation:

AB 1436 (Chiu) of the current legislative session. This bill would provide that a tenant cannot be evicted due to non-payment of rent if they have experienced COVID economic impacts between the beginning of the COVID-19 emergency on March 4, 2020 and April 1, 2021; it further provides up to 12 months for repayment before civil remedies become available. This bill is currently in the Senate Judiciary Committee.

SB 1410 (Bradford and Caballero) of the current legislative session. This bill authorizes a landlord and tenant to enter into a COVID-19 Eviction Relief Agreement in order to provide tax credits redeemable in 2024 to address unpaid rent accrued during the state of emergency. A tenant would receive protection from eviction during the COVID-19 emergency and an unspecified number of days afterwards if they enter into such an agreement. This bill is currently in the Assembly Judiciary Committee.

According to the Author:

According to the author, "Senate Bill 915 creates a process to protect mobilehome residents that have been impacted by the COVID-19 crisis by preventing management of mobilehome parks from terminating or attempting to terminate the tenancy of residents. Mobilehomes make up approximately 10% of the state's affordable housing stock. In most cases, residents are comprised of vulnerable populations, including seniors, veterans, immigrants, and low / fixed income individuals and families.

Mobilehome residents living in mobilehome parks face unique housing concerns. Mobilehome residents are defined by law as both homeowners and tenants. The homeowner owns the mobilehome, but the park owns the land underneath the mobilehome. To address these unique circumstances, mobilehomes are governed by a special body of laws known as the Mobilehome Residency Law (MRL). In March 2020, Governor Newsom issued an Executive Order banning the enforcement of eviction orders in order to protect renters and homeowners affect by COVID-19. In the Governor's Executive Order, the language is not specific on the Civil Code and Mobilehome Residency Law (MRL) sections that govern mobilehome residents and evictions. SB 915 aims to directly address these gaps by citing the specific Civil Code sections that pertain directly to mobilehome residents to ensure that mobilehome residents stay housed during the crisis and a reasonable time after."

Arguments in Support:

The Golden State Manufactured-Home Owners League writes in support of the bill, noting that it "would provide protections for mobilehome residents who are impacted by COVID-19." Additionally, they argue that "the bill addresses the notice requirements set forth in the state's Civil Code governing mobilehome residency. The Governor's Order was silent on these 3-day, 7-day, and 60-day notices requirements that could lead to eviction…SB 915 also permits COVID-19 impacted residents additional time to comply with demands to repay rent or other charges or park rules or regulations."

Arguments in Opposition:

Writing in opposition to the bill, the Western Manufactured Housing Communities Association argues, "If a resident fails to pay rent, our parkowners are still required to maintain the property enjoyed by all of the other residents. We are concerned that allowing some residents to forego payment puts the entire community at risk of diminished services and exposure to failure to maintain lawsuits…Further, without a consistent statewide standard for the end of the COVID-19 emergency, we are concerned that the door will be opened for potential litigation that will only serve to increase the number of cases required to be heard be an already over-stretched court system."

FISCAL COMMENTS:

None

VOTES:

SENATE FLOOR: 29-11-0

YES: Allen, Archuleta, Atkins, Beall, Bradford, Caballero, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Hertzberg, Hill, Hueso, Hurtado, Jackson, Leyva, McGuire, Mitchell, Monning, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener

NO: Bates, Borgeas, Chang, Dahle, Grove, Jones, Melendez, Moorlach, Morrell, Nielsen, Wilk

ASM HOUSING AND COMMUNITY DEVELOPMENT: 6-1-1

YES: Chiu, Gabriel, Gloria, Limón, Bonta, Quirk-Silva

NO: Kiley

ABS, ABST OR NV: Diep

UPDATED:

VERSION: August 24, 2020

CONSULTANT: Sandra Nakagawa / H. & C.D. / (916) 319-2085 FN: 0003212

SENATE THIRD READING

STR Bill Id:SB 915

Author:(Leyva)

As Amended Ver:July 27, 2020

Majority vote

SUMMARY:

Prohibits mobilehome parks from evicting residents who notify park management of COVID-19 impacts to their ability to pay rent and requires parks to provide those residents with extra time to repay outstanding rent, utilities or other charges, or cure violations of park rules

Major Provisions

1. Prohibits mobilehome park management, during a declared state or local COVID-19 emergency and for 120 days after (hereafter "COVID period"), from terminating or attempting to terminate the tenancy of a mobilehome owner or resident who provides written notice of COVID-19 impacts, unless the termination is necessary to protect the public health and safety.
2. Provides that, during the COVID period, mobilehome park management shall not do any of the following to a homeowner or resident who provides written notice of COVID-19 impacts:
   1. Increase rent by giving the required notice under Civil Code Section 798.30; and
   2. Terminate tenancy due to nonpayment of rent, utility charges, or reasonable incidental service charges or based on the procedures in Civil Code Section 798.55.
3. Establishes that, during the COVID period, a mobilehome owner or resident shall be considered impacted by the COVID-19 pandemic if the resident presents reasonable evidence, as specified, that:
   1. The homeowner or resident cannot pay any part of what it owes the park for rent, utilities, or other charges due to job or income loss or reduction suffered as a proximate cause of the COVID-19 pandemic which can be documented by reasonable evidence including, but is not limited to, letters, pay stubs, or bank statements; or
   2. The homeowner or resident is unable, due to COVID-19 imposed restrictions, to comply with a demand from the park to correct any violation of a reasonable park rule or regulation within seven days due to an inability to relocate any person or persons residing in the mobile, or the inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the resident's home or space; or
   3. The homeowner or resident is unable to comply with a seven-day notice to relocate any person or persons residing in the homeowner's or resident's mobilehome due to coronavirus (COVID-19)-imposed restrictions.
4. Establishes that, during the COVID period, mobilehome owners or residents can notify park management of COVID hardships within three days of receiving specified notices for nonpayment of rent, or within seven days for violations of park rules or regulations.
5. Requires, that when issuing specified notices for nonpayment of rent or violations for park rules or regulations given during the COVID period, that park management shall provide mobilehome owners and residents with specified written notice notifying them of how much time they have to inform management of their inability to comply due to a COVID hardship.
6. Requires park management to provide mobilehome owners or residents with COVID impacts one year from the expiration of the three-day notice to pay, unless a different amount of time is voluntarily agreed upon without threat, duress, or compulsion by the homeowner or resident and the management.
7. Requires park management to provide mobilehome owners or residents with COVID impacts additional time of up to one year to address park rule or regulation violations, unless failure to comply sooner would perpetuate a public nuisance or cause a material threat to public health or safety by endangering the life, limb, health, or safety of the public or park.
8. Allows mobilehome owners and residents to enforce their rights under the bill through a civil action in court and empowers the court to order injunctive relief and any other relief the court deems proper, including establishing rent repayment plans.
9. Directs mobilehome park management to itemize, on the homeowner's or resident's rental invoice, any payments made and due under any repayment plan.
10. Provides that a court-ordered repayment plan shall be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to COVID.
11. Prohibits a homeowner or resident from transferring or selling their mobilehome before completing their payments in a court-ordered repayment plan or mutually agreed upon by the homeowner or resident and the management, unless the sale or transfer occurs by way of an irrevocable escrow instruction.
12. Specifies that the provisions of this bill shall not supersede a local ordinance that provides more protection to residents who are subject to this article.
13. Specifies that this bill is not to be interpreted to alter the meaning or application of the Judicial Council's Emergency Rule 1 adopted on April 6, 2020.
14. Prohibits park management, after receiving a notice from a homeowner or resident that they are impacted by the COVID-19 pandemic, as specified, from doing any of the following:
    1. Raising the rent while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
    2. Imposing additional service charges while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
    3. Seeking to enforce an order enjoining a continuing or recurring violation of any reasonable park rule or regulation.

COMMENTS:

COVID-19 Emergency Policies to Prevent Evictions: Governor Newsom declared a State of Emergency on March 4, 2020 due to COVID-19 and in the following months large sectors of the economy were shut down in order to reduce spread of the virus. In recognition of this situation, on April 6, 2020, the California Judicial Council adopted Emergency Rule 1 to effectively halt evictions from proceeding unless the need for an eviction was based on a threat to public health or safety. Though property owners can still file unlawful detainer complaints, the Judicial Council's Emergency Rule 1 prevents a court summons from being issued and also prevents the entry of defaults or default judgments. The Emergency Rule is set to expire 90 days after the Governor's COVID-19 State of Emergency ends or whenever it is amended or repealed by the Judicial Council. Without action to prevent evictions when the courts reopen, those renters and mobilehome owners who are unable to repay all the unpaid rent immediately could face eviction.

Staff Comments: There are a number of bills under consideration by the Legislature this year which attempt to protect renters and mobilehome owners from eviction. This bill, SB 915, offers broad protections for mobilehome owners and residents during a state or locally-declared COVID-19 emergency and for 120 days afterwards (hereafter "COVID period"). Specifically, mobilehome park management is prevented from terminating a homeowner's or resident's tenancy due to non-payment or park rule or regulation violations during the COVID period. Additionally, under this bill, park management is required to give up to a year for repayment. These protections offer the potential to ensure that many COVID-impacted individuals in mobilehome parks remain housed during an unprecedented public health crisis.

Given the considerable unknowns about how long the COVID state of emergency will last in California – and how long locally-declared emergencies will be in place across its 58 counties and 492 cities – this bill's laudable policy goals also introduce considerable uncertainty for park operators during an already challenging time. As the Legislature and the Executive branch weigh different approaches to promoting housing stability during this crisis, a unified policy for residential renters, mobilehome owners, and residents of parks may offer the simplest approach. Moreover, the author may wish to consider addressing the concerns raised by the California State Firefighters' Association (listed below under arguments in opposition) in order to ensure the protections for mobilehome residents provided in the bill do not create intended consequences in terms of fire risk or public safety. Finally, staff notes that, in a normal legislative year, this bill would likely be double-referred to this committee and the Assembly Judiciary Committee.

Related legislation:

AB 1436 (Chiu) of the current legislative session. This bill would provide that a tenant cannot be evicted due to non-payment of rent if they have experienced COVID economic impacts between the beginning of the COVID-19 emergency on March 4, 2020 and April 1, 2021; it further provides up to 12 months for repayment before civil remedies become available. This bill is currently in the Senate Judiciary Committee.

SB 1410 (Bradford and Caballero) of the current legislative session. This bill authorizes a landlord and tenant to enter into a COVID-19 Eviction Relief Agreement in order to provide tax credits redeemable in 2024 to address unpaid rent accrued during the state of emergency. A tenant would receive protection from eviction during the COVID-19 emergency and an unspecified number of days afterwards if they enter into such an agreement. This bill is currently in the Assembly Judiciary Committee.

According to the Author:

Author's statement: According to the author, "Senate Bill 915 creates a process to protect mobilehome residents that have been impacted by the COVID-19 crisis by preventing management of mobilehome parks from terminating or attempting to terminate the tenancy of residents. Mobilehomes make up approximately 10% of the state's affordable housing stock. In most cases, residents are comprised of vulnerable populations, including seniors, veterans, immigrants, and low / fixed income individuals and families.

Mobilehome residents living in mobilehome parks face unique housing concerns. Mobilehome residents are defined by law as both homeowners and tenants. The homeowner owns the mobilehome, but the park owns the land underneath the mobilehome. To address these unique circumstances, mobilehomes are governed by a special body of laws known as the Mobilehome Residency Law (MRL). In March 2020, Governor Newsom issued an Executive Order banning the enforcement of eviction orders in order to protect renters and homeowners affect by COVID-19. In the Governor's Executive Order, the language is not specific on the Civil Code and Mobilehome Residency Law (MRL) sections that govern mobilehome residents and evictions. SB 915 aims to directly address these gaps by citing the specific Civil Code sections that pertain directly to mobilehome residents to ensure that mobilehome residents stay housed during the crisis and a reasonable time after."

Arguments in Support:

Arguments in Support: The Golden State Manufactured-Home Owners League writes in support of this bill, noting that it "would provide protections for mobilehome residents who are impacted by COVID-19." Additionally, they argue that "the bill addresses the notice requirements set forth in the state's Civil Code governing mobilehome residency. The Governor's Order was silent on these 3-day, 7-day, and 60-day notices requirements that could lead to eviction…SB 915 also permits COVID-19 impacted residents additional time to comply with demands to repay rent or other charges or park rules or regulations."

Arguments in Opposition:

Writing in opposition to this bill, the Western Manufactured Housing Communities Association argues, "If a resident fails to pay rent, our parkowners are still required to maintain the property enjoyed by all of the other residents. We are concerned that allowing some residents to forego payment puts the entire community at risk of diminished services and exposure to failure to maintain lawsuits…Further, without a consistent statewide standard for the end of the COVID-19 emergency, we are concerned that the door will be opened for potential litigation that will only serve to increase the number of cases required to be heard be an already over-stretched court system." Additionally, the California State Firefighters' Association writes, "this bill could give irresponsible residents with safety violations up to 1 year to correct violations of park rules and regulations. While we are sensitive to those with hardships due to COVID-19, the safety of the public and of our firefighters is our first priority."

FISCAL COMMENTS:

None

VOTES:

SENATE FLOOR: 29-11-0

YES: Allen, Archuleta, Atkins, Beall, Bradford, Caballero, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Hertzberg, Hill, Hueso, Hurtado, Jackson, Leyva, McGuire, Mitchell, Monning, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener

NO: Bates, Borgeas, Chang, Dahle, Grove, Jones, Melendez, Moorlach, Morrell, Nielsen, Wilk

ASM HOUSING AND COMMUNITY DEVELOPMENT: 6-1-1

YES: Chiu, Gabriel, Gloria, Limón, Bonta, Quirk-Silva

NO: Kiley

ABS, ABST OR NV: Diep

UPDATED:

VERSION: July 27, 2020

CONSULTANT: Sandra Nakagawa / H. & C.D. / (916) 319-2085 FN: 0003168

Date of Hearing: July 29, 2020

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

SBPCA Bill Id:SB 915

Author:(Leyva) – As Amended Ver:July 27, 2020

SENATE VOTE: 29-11

SUBJECT: Mobilehome parks: emergency relief: coronavirus (COVID-19)

SUMMARY: Prohibits mobilehome parks from evicting residents who notify park management of COVID-19 impacts to their ability to pay rent and requires parks to provide those residents with extra time to repay outstanding rent, utilities or other charges, or cure violations of park rules. Specifically, this bill:

1. Prohibits mobilehome park management, during a declared state or local COVID-19 emergency and for 120 days after (hereafter “COVID period”), from terminating or attempting to terminate the tenancy of a mobilehome owner or resident who provides written notice of COVID-19 impacts, unless the termination is necessary to protect the public health and safety.
2. Provides that, during the COVID period, mobilehome park management shall not do any of the following to a homeowner or resident who provides written notice of COVID-19 impacts:
3. Increase rent by giving the required notice under Civil Code Section 798.30; and
4. Terminate tenancy due to nonpayment of rent, utility charges, or reasonable incidental service charges or based on the procedures in Civil Code Section 798.55.
5. Establishes that, during the COVID period, a mobilehome owner or resident shall be considered impacted by the COVID-19 pandemic if the resident presents reasonable evidence, as specified, that:
6. The homeowner or resident cannot pay any part of what it owes the park for rent, utilities, or other charges due to job or income loss or reduction suffered as a proximate cause of the COVID-19 pandemic which can be documented by reasonable evidence including, but is not limited to, letters, pay stubs, or bank statements; or
7. The homeowner or resident is unable, due to COVID-19 imposed restrictions, to comply with a demand from the park to correct any violation of a reasonable park rule or regulation within seven days due to an inability to relocate any person or persons residing in the mobile, or the inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the resident’s home or space; or
8. The homeowner or resident is unable to comply with a seven-day notice to relocate any person or persons residing in the homeowner’s or resident’s mobilehome due to coronavirus (COVID-19)-imposed restrictions.
9. Establishes that, during the COVID period, mobilehome owners or residents can notify park management of COVID hardships within three days of receiving specified notices for nonpayment of rent, or within seven days for violations of park rules or regulations.
10. Requires, that when issuing specified notices for nonpayment of rent or violations for park rules or regulations given during the COVID period, that park management shall provide mobilehome owners and residents with specified written notice notifying them of how much time they have to inform management of their inability to comply due to a COVID hardship.
11. Requires park management to provide mobilehome owners or residents with COVID impacts one year from the expiration of the three-day notice to pay, unless a different amount of time is voluntarily agreed upon without threat, duress, or compulsion by the homeowner or resident and the management.
12. Requires park management to provide mobilehome owners or residents with COVID impacts additional time of up to one year to address park rule or regulation violations, unless failure to comply sooner would perpetuate a public nuisance or cause a material threat to public health or safety by endangering the life, limb, health, or safety of the public or park.
13. Allows mobilehome owners and residents to enforce their rights under the bill through a civil action in court and empowers the court to order injunctive relief and any other relief the court deems proper, including establishing rent repayment plans.
14. Directs mobilehome park management to itemize, on the homeowner’s or resident’s rental invoice, any payments made and due under any repayment plan; further specifies that management shall offset the amount a resident owes by the amount received in government funding of any kind to offset the loss of revenue from rent, utilities, or other charges left unpaid due to COVID-19 pandemic with the amount of offset distributed equally per homeowner or resident.
15. Provides that a court-ordered repayment plan shall be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to COVID.
16. Prohibits a homeowner or resident from transferring or selling their mobilehome before completing their payments in a court-ordered repayment plan or mutually agreed upon by the homeowner or resident and the management, unless the sale or transfer occurs by way of an irrevocable escrow instruction.
17. Specifies that the provisions of this bill shall not supersede a local ordinance that provides

more protection to residents who are subject to this article.

1. Specifies that this bill is not to be interpreted to alter the meaning or application of the Judicial Council’s Emergency Rule 1 adopted on April 6, 2020.
2. Prohibits park management, after receiving a notice from a homeowner or resident that they are impacted by the COVID-19 pandemic, as specified, from doing any of the following:
3. Raising the rent while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
4. Imposing additional service charges while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
5. Seeking to enforce an order enjoining a continuing or recurring violation of any reasonable park rule or regulation.

EXISTING LAW:

1. Establishes the Mobilehome Residency Law (MRL) which regulates the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents. (Civil Code Section 798, et seq.)
2. Specifies that a mobilehome owner may only have their tenancy terminated due to a limited number of causes, including nonpayment of rent, breach of the terms of the lease, and closure or conversion of the park. (Civil Code Section 798.56)
3. Provides that upon the declaration of a state of emergency by specified entities, and for a period of 30 days following that declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell certain goods and services, including housing, for a price of more than 10 percent above the price charged by that person for those goods or services immediately prior to the proclamation of emergency. (Penal Code Section 396(b))
4. Declares a state of emergency across the entire state due to the COVID-19 pandemic. (Governor’s Proclamation of a State of Emergency (Mar. 4, 2020).)
5. Establishes that, except in cases where there is a threat to public health or safety, the following rules apply to unlawful detainer cases until 90 days after the Governor lifts COVID-19 emergency declaration or until the Judicial Council amends or rescinds these rules:
   1. a court may not issue a summons on a complaint for unlawful detainer;
   2. a court may not enter a default or a default judgment for restitution in an unlawful detainer action for failure of defendant to appear; and
   3. if a defendant has appeared in a pending unlawful detainer action, the court may not set a trial date earlier than 60 days after a request for trial is made unless the court finds that an earlier trial date is necessary to protect public health and safety. Any trial set in an unlawful detainer proceeding as of April 6, 2020 must be continued at least 60 days from the initial date of trial. (Judicial Council, Emergency Rules Related to COVID-19, Emergency Rule 1.)

FISCAL EFFECT: None

COMMENTS:

Author’s statement: According to the author, “Senate Bill 915 creates a process to protect mobilehome residents that have been impacted by the COVID-19 crisis by preventing management of mobilehome parks from terminating or attempting to terminate the tenancy of residents. Mobilehomes make up approximately 10% of the state’s affordable housing stock. In most cases, residents are comprised of vulnerable populations, including seniors, veterans, immigrants, and low / fixed income individuals and families.

Mobilehome residents living in mobilehome parks face unique housing concerns. Mobilehome residents are defined by law as both homeowners and tenants. The homeowner owns the mobilehome, but the park owns the land underneath the mobilehome. To address these unique circumstances, mobilehomes are governed by a special body of laws known as the Mobilehome Residency Law (MRL). In March 2020, Governor Newsom issued an Executive Order banning the enforcement of eviction orders in order to protect renters and homeowners affect by COVID-19. In the Governor’s Executive Order, the language is not specific on the Civil Code and Mobilehome Residency Law (MRL) sections that govern mobilehome residents and evictions. SB 915 aims to directly address these gaps by citing the specific Civil Code sections that pertain directly to mobilehome residents to ensure that mobilehome residents stay housed during the crisis and a reasonable time after.”

COVID-19 Emergency Policies to Prevent Evictions: Governor Newsom declared a State of Emergency on March 4, 2020 due to COVID-19 and in the following months large sectors of the economy were shut down in order to reduce spread of the virus. In recognition of this situation, on April 6, 2020, the California Judicial Council adopted Emergency Rule 1 to effectively halt evictions from proceeding unless the need for an eviction was based on a threat to public health or safety. Though property owners can still file unlawful detainer complaints, the Judicial Council’s Emergency Rule 1 prevents a court summons from being issued and also prevents the entry of defaults or default judgments. The Emergency Rule is set to expire 90 days after the Governor’s COVID-19 State of Emergency ends or whenever it is amended or repealed by the Judicial Council.

As of late July 2020, COVID-19 cases and deaths continue a troubling rise in the state and many regions that previously began re-opening were forced to close again this month. It appears that measures to curb the spread of the disease will need to be maintained for a considerable time going forward and the dramatic economic downturn brought on by COVID-19 closures will be here for the foreseeable future as well. Many of the millions of Californians that have seen job losses or income reductions as a result of the COVID-19 crisis are renters or mobilehome owners who pay for space rent to a mobilehome park. Without action to prevent evictions when the courts reopen, those renters and mobilehome owners who are unable to repay all the unpaid rent immediately could face eviction.

Background on Mobilehomes: There are approximately 700,000 Californians living in about 400,000 mobilehomes dispersed over 4,100 mobilehome parks. Despites their name, mobilehomes are not truly mobile and it is often cost prohibitive (up to $20,000) to relocate them. Additionally, some older homes may not be able to be moved at all due to structural concerns or the fact that parks often will not accept older mobilehomes.

A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on and instead pays rent and fees for use of the lot and any community spaces. Unlike traditional single-family homes, mobilehomes are considered chattel property and not real property. As such, purchasing a mobilehome is often much less expensive than traditional site-built housing and mobilehomes represent an important source of affordable housing in the state, especially for seniors and low-income households who are increasingly priced out of traditional rental housing.

Mobilehomes are the largest source of unsubsidized affordable housing in the nation and both state and local governments have recognized the unique situation of mobilehomes by passing special laws governing the relationship between mobilehome owners and parks management. For example, under California’s Mobilehome Residency Law (MRL), mobilehome owners have protections against “no cause” evictions and can only be evicted from a park for a limited set of reasons including non-payment of rent, violation of park rules, or specified criminal activities.

Staff Comments: There are a number of bills under consideration by the Legislature this year which attempt to protect renters and mobilehome owners from eviction. This bill, SB 915, offers broad protections for mobilehome owners and residents during a state or locally-declared COVID-19 emergency and for 120 days afterwards (hereafter “COVID period”). Specifically, mobilehome park management is prevented from terminating a homeowner’s or resident’s tenancy due to non-payment or park rule or regulation violations during the COVID period. Additionally, under this bill, park management is required to give up to a year for repayment. These protections offer the potential to ensure that many COVID-impacted individuals in mobilehome parks remain housed during an unprecedented public health crisis.

Given the considerable unknowns about how long the COVID state of emergency will last in California – and how long locally-declared emergencies will be in place across its 58 counties and 492 cities – this bill’s laudable policy goals also introduce considerable uncertainty for park operators during an already challenging time. As the Legislature and the Executive branch weigh different approaches to promoting housing stability during this crisis, a unified policy for residential renters, mobilehome owners, and residents of parks may offer the simplest approach. Moreover, the author may wish to consider addressing the concerns raised by the California State Firefighters’ Association (listed below under arguments in opposition) in order to ensure the protections for mobilehome residents provided in the bill do not create intended consequences in terms of fire risk or public safety. Finally, staff notes that, in a normal legislative year, this bill would likely be double-referred to this committee and the Assembly Judiciary Committee.

Arguments in Support: The Golden State Manufactured-Home Owners League writes in support of the bill, noting that it “would provide protections for mobilehome residents who are impacted by COVID-19.” Additionally, they argue that “the bill addresses the notice requirements set forth in the state’s Civil Code governing mobilehome residency. The Governor’s Order was silent on these 3-day, 7-day, and 60-day notices requirements that could lead to eviction…SB 915 also permits COVID-19 impacted residents additional time to comply with demands to repay rent or other charges or park rules or regulations.”

Arguments in Opposition: Writing in opposition to the bill, the Western Manufactured Housing Communities Association argues, “If a resident fails to pay rent, our parkowners are still required to maintain the property enjoyed by all of the other residents. We are concerned that allowing some residents to forego payment puts the entire community at risk of diminished services and exposure to failure to maintain lawsuits…Further, without a consistent statewide standard for the end of the COVID-19 emergency, we are concerned that the door will be opened for potential litigation that will only serve to increase the number of cases required to be heard be an already over-stretched court system.” Additionally, the California State Firefighters’ Association writes, “this bill could give irresponsible residents with safety violations up to 1 year to correct violations of park rules and regulations. While we are sensitive to those with hardships due to COVID-19, the safety of the public and of our firefighters is our first priority.”

Related legislation:

AB 1436 (Chiu, 2020). This bill would provide that a tenant cannot be evicted due to non-payment of rent if they have experienced COVID economic impacts between the beginning of the COVID-19 emergency on March 4, 2020 and April 1, 2021; it further provides up to 12 months for repayment before civil remedies become available. This bill is currently in the Senate Judiciary Committee.

SB 1410 (Bradford and Caballero, 2020). This bill authorizes a landlord and tenant to enter into a COVID-19 Eviction Relief Agreement in order to provide tax credits redeemable in 2024 to address unpaid rent accrued during the state of emergency. A tenant would receive protection from eviction during the COVID-19 emergency and an unspecified number of days afterwards if they enter into such an agreement. This bill is currently in the Assembly Judiciary Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Golden State Manufactured-home Owners League (Sponsor)
Bay Federal Credit Union

California Commission on Aging
Country Villa Homeowners Association
Public Law Center
Santa Cruz County Board of Supervisors

289 Individuals

Opposition

Apartment Association of Orange County
Apartment Association, California Southern Cities
Cabrillo Management Corporation
California Association of Realtors
California Mobilehome Parkowners Alliance

California State Firefighters’ Association
East Bay Rental Housing Association
Western Manufactured Housing Communities Association

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

Date of Hearing: July 28, 2020

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

SBPCA Bill Id:SB 915

Author:(Leyva) – As Amended Ver:July 27, 2020

SENATE VOTE: 29-11

SUBJECT: Mobilehome parks: emergency relief: coronavirus (COVID-19)

SUMMARY: Prohibits mobilehome parks from evicting residents who notify park management of COVID-19 impacts to their ability to pay rent and requires parks to provide those residents with extra time to repay outstanding rent, utilities or other charges, or cure violations of park rules. Specifically, this bill:

1. Prohibits mobilehome park management, during a declared state or local COVID-19 emergency and for 120 days after (hereafter “COVID period”), from terminating or attempting to terminate the tenancy of a mobilehome owner or resident who provides written notice of COVID-19 impacts, unless the termination is necessary to protect the public health and safety.
2. Provides that, during the COVID period, mobilehome park management shall not do any of the following to a homeowner or resident who provides written notice of COVID-19 impacts:
3. Increase rent by giving the required notice under Civil Code Section 798.30; and
4. Terminate tenancy due to nonpayment of rent, utility charges, or reasonable incidental service charges or based on the procedures in Civil Code Section 798.55.
5. Establishes that, during the COVID period, a mobilehome owner or resident shall be considered impacted by the COVID-19 pandemic if the resident presents reasonable evidence, as specified, that:
6. The homeowner or resident cannot pay any part of what it owes the park for rent, utilities, or other charges due to job or income loss or reduction suffered as a proximate cause of the COVID-19 pandemic which can be documented by reasonable evidence including, but is not limited to, letters, pay stubs, or bank statements; or
7. The homeowner or resident is unable, due to COVID-19 imposed restrictions, to comply with a demand from the park to correct any violation of a reasonable park rule or regulation within seven days due to an inability to relocate any person or persons residing in the mobile, or the inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the resident’s home or space; or
8. The homeowner or resident is unable to comply with a seven-day notice to relocate any person or persons residing in the homeowner’s or resident’s mobilehome due to coronavirus (COVID-19)-imposed restrictions.
9. Establishes that, during the COVID period, mobilehome owners or residents can notify park management of COVID hardships within three days of receiving specified notices for nonpayment of rent, or within seven days for violations of park rules or regulations.
10. Requires, that when issuing specified notices for nonpayment of rent or violations for park rules or regulations given during the COVID period, that park management shall provide mobilehome owners and residents with specified written notice notifying them of how much time they have to inform management of their inability to comply due to a COVID hardship.
11. Requires park management to provide mobilehome owners or residents with COVID impacts one year from the expiration of the three-day notice to pay, unless a different amount of time is voluntarily agreed upon without threat, duress, or compulsion by the homeowner or resident and the management.
12. Requires park management to provide mobilehome owners or residents with COVID impacts additional time of up to one year to address park rule or regulation violations, unless failure to comply sooner would perpetuate a public nuisance or cause a material threat to public health or safety by endangering the life, limb, health, or safety of the public or park.
13. Allows mobilehome owners and residents to enforce their rights under the bill through a civil action in court and empowers the court to order injunctive relief and any other relief the court deems proper, including establishing rent repayment plans.
14. Directs mobilehome park management to itemize, on the homeowner’s or resident’s rental invoice, any payments made and due under any repayment plan; further specifies that management shall offset the amount a resident owes by the amount received in government funding of any kind to offset the loss of revenue from rent, utilities, or other charges left unpaid due to COVID-19 pandemic with the amount of offset distributed equally per homeowner or resident.
15. Provides that a court-ordered repayment plan shall be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to COVID.
16. Prohibits a homeowner or resident from transferring or selling their mobilehome before completing their payments in a court-ordered repayment plan or mutually agreed upon by the homeowner or resident and the management, unless the sale or transfer occurs by way of an irrevocable escrow instruction.
17. Specifies that the provisions of this bill shall not supersede a local ordinance that provides

more protection to residents who are subject to this article.

1. Specifies that this bill is not to be interpreted to alter the meaning or application of the Judicial Council’s Emergency Rule 1 adopted on April 6, 2020.
2. Prohibits park management, after receiving a notice from a homeowner or resident that they are impacted by the COVID-19 pandemic, as specified, from doing any of the following:
3. Raising the rent while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
4. Imposing additional service charges while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;
5. Seeking to enforce an order enjoining a continuing or recurring violation of any reasonable park rule or regulation.

EXISTING LAW:

1. Establishes the Mobilehome Residency Law (MRL) which regulates the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents. (Civil Code Section 798, et seq.)
2. Specifies that a mobilehome owner may only have their tenancy terminated due to a limited number of causes, including nonpayment of rent, breach of the terms of the lease, and closure or conversion of the park. (Civil Code Section 798.56)
3. Provides that upon the declaration of a state of emergency by specified entities, and for a period of 30 days following that declaration, it is unlawful for a person, contractor, business, or other entity to sell or offer to sell certain goods and services, including housing, for a price of more than 10 percent above the price charged by that person for those goods or services immediately prior to the proclamation of emergency. (Penal Code Section 396(b))
4. Declares a state of emergency across the entire state due to the COVID-19 pandemic. (Governor’s Proclamation of a State of Emergency (Mar. 4, 2020).)
5. Establishes that, except in cases where there is a threat to public health or safety, the following rules apply to unlawful detainer cases until 90 days after the Governor lifts COVID-19 emergency declaration or until the Judicial Council amends or rescinds these rules:
   1. a court may not issue a summons on a complaint for unlawful detainer;
   2. a court may not enter a default or a default judgment for restitution in an unlawful detainer action for failure of defendant to appear; and
   3. if a defendant has appeared in a pending unlawful detainer action, the court may not set a trial date earlier than 60 days after a request for trial is made unless the court finds that an earlier trial date is necessary to protect public health and safety. Any trial set in an unlawful detainer proceeding as of April 6, 2020 must be continued at least 60 days from the initial date of trial. (Judicial Council, Emergency Rules Related to COVID-19, Emergency Rule 1.)

FISCAL EFFECT: None

COMMENTS:

Author’s statement: According to the author, “Senate Bill 915 creates a process to protect mobilehome residents that have been impacted by the COVID-19 crisis by preventing management of mobilehome parks from terminating or attempting to terminate the tenancy of residents. Mobilehomes make up approximately 10% of the state’s affordable housing stock. In most cases, residents are comprised of vulnerable populations, including seniors, veterans, immigrants, and low / fixed income individuals and families.

Mobilehome residents living in mobilehome parks face unique housing concerns. Mobilehome residents are defined by law as both homeowners and tenants. The homeowner owns the mobilehome, but the park owns the land underneath the mobilehome. To address these unique circumstances, mobilehomes are governed by a special body of laws known as the Mobilehome Residency Law (MRL). In March 2020, Governor Newsom issued an Executive Order banning the enforcement of eviction orders in order to protect renters and homeowners affect by COVID-19. In the Governor’s Executive Order, the language is not specific on the Civil Code and Mobilehome Residency Law (MRL) sections that govern mobilehome residents and evictions. SB 915 aims to directly address these gaps by citing the specific Civil Code sections that pertain directly to mobilehome residents to ensure that mobilehome residents stay housed during the crisis and a reasonable time after.”

COVID-19 Emergency Policies to Prevent Evictions: Governor Newsom declared a State of Emergency on March 4, 2020 due to COVID-19 and in the following months large sectors of the economy were shut down in order to reduce spread of the virus. In recognition of this situation, on April 6, 2020, the California Judicial Council adopted Emergency Rule 1 to effectively halt evictions from proceeding unless the need for an eviction was based on a threat to public health or safety. Though property owners can still file unlawful detainer complaints, the Judicial Council’s Emergency Rule 1 prevents a court summons from being issued and also prevents the entry of defaults or default judgments. The Emergency Rule is set to expire 90 days after the Governor’s COVID-19 State of Emergency ends or whenever it is amended or repealed by the Judicial Council.

As of late July 2020, COVID-19 cases and deaths continue a troubling rise in the state and many regions that previously began re-opening were forced to close again this month. It appears that measures to curb the spread of the disease will need to be maintained for a considerable time going forward and the dramatic economic downturn brought on by COVID-19 closures will be here for the foreseeable future as well. Many of the millions of Californians that have seen job losses or income reductions as a result of the COVID-19 crisis are renters or mobilehome owners who pay for space rent to a mobilehome park. Without action to prevent evictions when the courts reopen, those renters and mobilehome owners who are unable to repay all the unpaid rent immediately could face eviction.

Background on Mobilehomes: There are approximately 700,000 Californians living in about 400,000 mobilehomes dispersed over 4,100 mobilehome parks. Despites their name, mobilehomes are not truly mobile and it is often cost prohibitive (up to $20,000) to relocate them. Additionally, some older homes may not be able to be moved at all due to structural concerns or the fact that parks often will not accept older mobilehomes.

A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on and instead pays rent and fees for use of the lot and any community spaces. Unlike traditional single-family homes, mobilehomes are considered chattel property and not real property. As such, purchasing a mobilehome is often much less expensive than traditional site-built housing and mobilehomes represent an important source of affordable housing in the state, especially for seniors and low-income households who are increasingly priced out of traditional rental housing.

Mobilehomes are the largest source of unsubsidized affordable housing in the nation and both state and local governments have recognized the unique situation of mobilehomes by passing special laws governing the relationship between mobilehome owners and parks management. For example, under California’s Mobilehome Residency Law (MRL), mobilehome owners have protections against “no cause” evictions and can only be evicted from a park for a limited set of reasons including non-payment of rent, violation of park rules, or specified criminal activities.

Staff Comments: There are a number of bills under consideration by the Legislature this year which attempt to protect renters and mobilehome owners from eviction. This bill, SB 915, offers broad protections for mobilehome owners and residents during a state or locally-declared COVID-19 emergency and for 120 days afterwards (hereafter “COVID period”). Specifically, mobilehome park management is prevented from terminating a homeowner’s or resident’s tenancy due to non-payment or park rule or regulation violations during the COVID period. Additionally, under this bill, park management is required to give up to a year for repayment. These protections offer the potential to ensure that many COVID-impacted individuals in mobilehome parks remain housed during an unprecedented public health crisis.

Given the considerable unknowns about how long the COVID state of emergency will last in California – and how long locally-declared emergencies will be in place across its 58 counties and 492 cities – this bill’s laudable policy goals also introduce considerable uncertainty for park operators during an already challenging time. As the Legislature and the Executive branch weigh different approaches to promoting housing stability during this crisis, a unified policy for residential renters, mobilehome owners, and residents of parks may offer the simplest approach. Moreover, the author may wish to consider addressing the concerns raised by the California State Firefighters’ Association (listed below under arguments in opposition) in order to ensure the protections for mobilehome residents provided in the bill do not create intended consequences in terms of fire risk or public safety. Finally, staff notes that, in a normal legislative year, this bill would likely be double-referred to this committee and the Assembly Judiciary Committee.

Arguments in Support: The Golden State Manufactured-Home Owners League writes in support of the bill, noting that it “would provide protections for mobilehome residents who are impacted by COVID-19.” Additionally, they argue that “the bill addresses the notice requirements set forth in the state’s Civil Code governing mobilehome residency. The Governor’s Order was silent on these 3-day, 7-day, and 60-day notices requirements that could lead to eviction…SB 915 also permits COVID-19 impacted residents additional time to comply with demands to repay rent or other charges or park rules or regulations.”

Arguments in Opposition: Writing in opposition to the bill, the Western Manufactured Housing Communities Association argues, “If a resident fails to pay rent, our parkowners are still required to maintain the property enjoyed by all of the other residents. We are concerned that allowing some residents to forego payment puts the entire community at risk of diminished services and exposure to failure to maintain lawsuits…Further, without a consistent statewide standard for the end of the COVID-19 emergency, we are concerned that the door will be opened for potential litigation that will only serve to increase the number of cases required to be heard be an already over-stretched court system.” Additionally, the California State Firefighters’ Association writes, “this bill could give irresponsible residents with safety violations up to 1 year to correct violations of park rules and regulations. While we are sensitive to those with hardships due to COVID-19, the safety of the public and of our firefighters is our first priority.”

Related legislation:

AB 1436 (Chiu, 2020). This bill would provide that a tenant cannot be evicted due to non-payment of rent if they have experienced COVID economic impacts between the beginning of the COVID-19 emergency on March 4, 2020 and April 1, 2021; it further provides up to 12 months for repayment before civil remedies become available. This bill is currently in the Senate Judiciary Committee.

SB 1410 (Bradford and Caballero, 2020). This bill authorizes a landlord and tenant to enter into a COVID-19 Eviction Relief Agreement in order to provide tax credits redeemable in 2024 to address unpaid rent accrued during the state of emergency. A tenant would receive protection from eviction during the COVID-19 emergency and an unspecified number of days afterwards if they enter into such an agreement. This bill is currently in the Assembly Judiciary Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Golden State Manufactured-home Owners League (Sponsor)
Bay Federal Credit Union

California Commission on Aging
Country Villa Homeowners Association
Public Law Center
Santa Cruz County Board of Supervisors

289 Individuals

Opposition

Apartment Association of Orange County
Apartment Association, California Southern Cities
Cabrillo Management Corporation
California Association of Realtors
California Mobilehome Parkowners Alliance

California State Firefighters’ Association
East Bay Rental Housing Association
Western Manufactured Housing Communities Association

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

 THIRD READING  

Bill No: SB 915

Author: Leyva (D), et al.

Amended: 6/18/20

Vote: 21

SENATE JUDICIARY COMMITTEE: 7-1, 5/22/20

AYES: Jackson, Durazo, Lena Gonzalez, Monning, Stern, Umberg, Wieckowski

NOES: Jones

NO VOTE RECORDED: Borgeas

SENATE APPROPRIATIONS COMMITTEE: 5-2, 6/18/20

AYES: Portantino, Bradford, Hill, Leyva, Wieckowski

NOES: Bates, Jones

SUBJECT: Mobilehome parks: emergency relief: coronavirus (COVID-19)

SOURCE: Golden State Manufactured-Home Owners’ League

DIGEST:

This bill prohibits, temporarily, mobilehome parks from evicting residents who timely notify park management that they have been impacted, as defined, by COVID-19. This bill further mandates that mobilehome parks give such COVID-19-impacted residents additional time, as specified, to comply with demands to repay outstanding rent, utilities or other charges, or cure violations of park rules and regulations.

ANALYSIS:

Existing state law:

1. Proclaims that, beginning March 4, 2020, a state of emergency exists across the entire state due to the COVID-19 pandemic. (Governor’s Proc. of a State of Emergency (Mar. 4, 2020).)
2. Provides that, until 90 days after the Governor lifts the state of emergency related to COVID-19 or until repealed or amended by the Judicial Council, all of the following apply:
   1. a court may not issue a summons on a complaint for unlawful detainer unless it finds, in its discretion and on the record, that the action is necessary to protect public health and safety;
   2. a court may not enter a default or a default judgment for restitution in an unlawful detainer action for failure of defendant to appear unless the court finds that the action is necessary to protect public health and safety and the defendant has not appeared in the action within the time provided by law, including by any applicable executive order; and
   3. if a defendant has appeared in a pending unlawful detainer action, the court may not set a trial date earlier than 60 days after a request for trial is made unless the court finds that an earlier trial date is necessary to protect public health and safety. Any trial set in an unlawful detainer proceeding as of April 6, 2020 must be continued at least 60 days from the initial date of trial. (Judicial Council, Emergency Rules Related to COVID-19, Emergency Rule 1.)
3. Provides that tenants served with a court summons for eviction before May 31, 2020 have an additional sixty days to file their response, provided that the tenant meets all of the follow conditions:

a) the tenant was current on all rent payments through March 27, 2020;

b) tenant provided written notice to the landlord, within 7 days after the rent was due, that the tenant cannot pay all of the rent because of impacts from COVID-19; and

c) the tenant maintains documentation of lost income due to COVID-19, though the tenant does not have to provide that documentation to the landlord until the tenant pays back the missed rent. (Governor’s Exec. Order N-37-20 (Mar. 27, 2020).)

1. Sets forth the grounds, including, but not limited to both of the following, on which a mobilehome park may terminate the tenancy of a homeowner and commence a unlawful detainer action after meeting other specified procedural conditions:

a) nonpayment of rent, utility charges, or reasonable incidental service charges under the lease, if they remain unpaid for five days after first due and after expiration of a notice demanding payment within an additional three days; (Civ. Code § 798.56(e)) and

b) failure to comply with a notice demanding correction of a violation of any reasonable park rule or regulation within 7 days. (Civ. Code § 798.56(d and e.))

This bill:

1. Specifies that, for purposes of this bill, a mobilehome owner or resident has been impacted by the COVID-19 pandemic if the resident provides reasonable evidence, as specified, that:

a) the resident cannot pay any part of what it owes the park for rent, utilities, or other charges due to job or income loss or reduction suffered as a proximate cause of the COVID-19 pandemic; or

b) the resident is unable, due to COVID-19 imposed restrictions, to comply with a demand from the park to correct any violation of a reasonable park rule or regulation within seven days due to an inability to relocate any person or persons residing in the mobile, or the inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the resident’s home or space.

1. Prohibits park management, during a declared state or local emergency related to the COVID-19 pandemic and for 120 days after the state of emergency ends, from terminating or attempting to terminate the tenancy of a mobilehome owner or resident who timely notifies park management in writing, as specified, that they are impacted by the COVID-19 pandemic as described in (1), unless the termination is necessary to protect the public health and safety.
2. Directs courts, during a declared state or local emergency related to the COVID-19 pandemic and for 120 days after the state of emergency ends, not to issue a summons on a complaint for unlawful detainer involving a mobilehome tenancy, when the complaint is based on non-payment of rent or failure to comply with a demand to correct a violation of reasonable park rules and regulations, unless the court finds, in its discretion and on the record, that the action is necessary to protect public health and safety.
3. Requires park management to give a mobilehome owner or resident one year or an agreed upon amount of time from the expiration of a three day notice demanding payment of rent that accrued to pay back unpaid rent, utilities or reasonable incidental charges, if the mobilehome owner or resident timely notifies park management in writing that they are impacted by the COVID-19 pandemic as described in (1).
4. Requires park management to provide mobilehome owners and residents with notice about their rights under (4) above, together with any demand for payment of unpaid rent, utilities, or reasonable incidental charges.
5. Requires park management to give a mobilehome owner or resident reasonable additional time, but no more than one year, to comply with a demand to correct a violation of a reasonable park rule or regulation, if the mobilehome owner or resident timely notifies park management in writing that they are impacted by the COVID-19 pandemic as described in (1), unless the alleged violation would perpetuate a public nuisance or cause a material threat to public health or safety.
6. Requires park management to provide mobilehome owners and residents with notice about their rights under (6) above, together with any demand to correct a violation of reasonable park rules or regulations.
7. Prohibits park management, after receiving a notice from a homeowner or resident that they are impacted by the COVID-19 pandemic as described in (1), from doing any of the following:

a) raising the rent while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;

b) imposing additional service charges while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;

c) seeking to enforce an order enjoining a continuing or recurring violation of any reasonable park rule or regulation.

1. Authorizes mobilehome owners and residents to enforce their rights under the bill through a civil action in court and empowers the court to order injunctive relief and any other relief the court deems proper, including establishing rent repayment plans.
2. Requires park management to itemize any rent payment plan on the homeowner or resident’s rental invoice.

1. Provides that rent or other charges owed by a homeowner or resident under this bill shall be forgiven, in total, or on a prorated basis, if the management receives government funding relief for the loss of rent or charges due to the COVID-19 pandemic.
2. Requires that any rent repayment period be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to the COVID-19 pandemic.
3. Prohibits a homeowner or resident from selling or transferring their mobilehome before completing payments under a rent recovery plan, unless the sale or transfer occurs by way or an irrevocable escrow instruction.
4. Does not supersede local ordinances that provide greater protections to residents.
5. Specifies that it is not to be interpreted to alter the meaning or application of the Judicial Council’s Emergency Rule 1.

Background

In ordinary times, housing plays an important role in human well-being. During the COVID-19 pandemic, housing has taken on an even more vital role, since public health experts advise that sheltering in place, physical distancing, good hygiene, access to proper sanitation, and self-quarantining when infectious or exposed are all critical to preventing spread of the disease. All are made difficult or impossible without a home.

Now that measures to curb spread of the disease have resulted in a dramatic economic downturn and mass layoffs, California confronts a significant risk that large numbers of Californians will soon lose their homes at a time when that has especially acute public health consequences.

The COVID-19 pandemic and its economic fallout have a unique impact on mobilehome housing that goes beyond the effect on conventional residential rental housing. Mobilehome owners simultaneously own the structure in which they dwell, and rent the land on which the home sits from the park. Moreover, despite their names, mobilehomes are not, in fact, very mobile. Consequently, mobilehome residents who get evicted not only have to leave, they also often lose a significant asset – the mobilehome – in the process.

How the bill works conceptually

The mobilehome-specific approach proposed by this bill would work, in broad conceptual terms, as follows. For as long as any statewide or local state of emergency is in effect and for 120 days thereafter, parks could not proceed to evict mobilehome owners or residents in two different scenarios.

First, parks could not proceed to evict mobilehome owners or residents who, before expiration of any three day legal demand for payment of rent, utilities, or incidental charges, notify the park that they cannot pay on time because they have lost a job or income due to the COVID-19 pandemic. Instead, the park would have to allow the mobilehome owner or resident additional time to make up the payment. The mobilehome owner would get a one year unless the parties agree to a different amount of time.

Second, parks could not proceed to evict mobilehome owners or residents who, within seven days of receiving a demand from the park to correct a violation of a park rule or regulation, notify the park that they cannot comply within the deadline because of a complication resulting from the COVID-19 pandemic. Instead, the park would have to allow the mobilehome owner or resident whatever additional time they need to comply, but not more than a year. Mobilehome owners or residents could not get this additional time if the violation in question would perpetuate a public nuisance or cause a material threat to public health or safety.

Under either scenario, parks could not impose rent increases, fees, or additional charges during the extended repayment or compliance period. Mobilehome owners and residents would have the ability to enforce all of these rights in court if necessary.

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

According to the Senate Appropriations Committee:

• Department of Housing and Community Development: One-time costs of $389,000 in the first year and $365,000 in the second year for 2.0 limited-term Associate Governmental Program Analysts (AGPAs) to (as part of the Mobilehome Residency Law Protection Program that begins July 1, 2020) triage, evaluate, and process accordingly eviction-related contacts and complaints made by mobilehome owners and tenants for alleged violations of this measure. The department estimates 2.0 AGPAs would be needed for every 1,000 contacts it receives. These limited-term positions may need to be extended beyond two years depending on the ongoing efforts to mitigate the effects of the COVID-19 pandemic. (General Fund)
• Courts: Unknown, potentially-significant workload cost pressures to the courts to adjudicate alleged violations of this measure. While the superior courts are not funded on a workload basis, an increase in workload could result in delayed court services and would put pressure on the General Fund to fund additional staff and resources. For example, the proposed 2020-21 Budget would appropriate $35.2 million from the General Fund to backfill continued reduction in fine and fee revenue for trial court operations. (General Fund*)

*Trial Court Trust Fund

SUPPORT: (Verified 6/18/20)

Golden State Manufactured-Home Owners League (source)

Bay Federal Credit Union

League of California Cities Latino Caucus

Public Law Center

OPPOSITION: (Verified 6/18/20)

Apartment Association of Orange County

Apartment Association, California Southern Cities

Cabrillo Management

California Association of Realtors

California Mobilehome Parkowners Alliance

East Bay Rental Housing Association

Western Manufactured Housing Communities Association

ARGUMENTS IN SUPPORT: According to the author, “Senate Bill 915 creates a process to protect mobilehome residents that have been impacted by the COVID-19 crisis by preventing management of mobilehome parks from terminating or attempting to terminate the tenancy of residents. Mobilehomes make up approximately 10% of the state’s affordable housing stock. In most cases, residents are comprised of vulnerable populations, including seniors, veterans, immigrants, and low / fixed income individuals and families.”

As sponsor of the bill, the Golden State Manufactured-Home Owners League writes, “SB 915 would create a process to protect mobilehome park residents impacted by the COVID-19 crisis, by giving them a greater chance of remaining in the mobilehome during the pandemic and a reasonable time after.”

ARGUMENTS IN OPPOSITION: In opposition to the bill, Western Manufactured Housing Communities Association writes, “WMA understands that residents have been severely impacted by the COVID-19 crisis. We also want to express that our parkowners have been similarly impacted. […] [O]ur parkowners have mortgages of their own to pay. They have responsibilities to provide high-quality park amenities that require upkeep and maintenance.”

In further opposition to the bill, the California Mobilehome Parkowners Alliance writes, “In addition, SB 915 prohibits parkowners from enforcing the requirements of some 7-day notices. These notices are essential tools parkowners need to enforce park rules and make their parks a good environment for all tenants.”

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

6/23/20 17:13:37

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 915 (Leyva) - Mobilehome parks: emergency relief: coronavirus (COVID-19)

Bill Summary:

SB 915 would temporarily prohibits mobilehome parks from evicting residents who timely notify park management that they have been impacted, as defined, by the coronavirus (COVID-19) pandemic. It also would require mobilehome parks to give such COVID-19-impacted residents at least one year to comply with demands to repay outstanding rent, utilities or other charges, as well as up to one year to cure violations of park rules and regulations.

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

The following information is revised to reflect amendments

adopted by the committee on June 18, 2020

Fiscal Impact:

• Department of Housing and Community Development: One-time costs of $389,000 in the first year and $365,000 in the second year for 2.0 limited-term Associate Governmental Program Analysts (AGPAs) to (as part of the Mobilehome Residency Law Protection Program that begins July 1, 2020) triage, evaluate, and process accordingly eviction-related contacts and complaints made by mobilehome owners and tenants for alleged violations of this measure. The department estimates 2.0 AGPAs would be needed for every 1,000 contacts it receives. These limited-term positions may need to be extended beyond two years depending on the ongoing efforts to mitigate the effects of the COVID-19 pandemic. (General Fund)
• Courts: Unknown, potentially-significant workload cost pressures to the courts to adjudicate alleged violations of this measure. While the superior courts are not funded on a workload basis, an increase in workload could result in delayed court services and would put pressure on the General Fund to fund additional staff and resources. For example, the proposed 2020-21 budget would appropriate $35.2 million from the General Fund to backfill continued reduction in fine and fee revenue for trial court operations. (General Fund*)

*Trial Court Trust Fund

Committee Amendments:

Allow for the homeowner or resident and the management to agree to a different timeframe for the repayment of overdue rent and charges. Specify that evictions are allowed for violations that materially threaten public health and safety.

-- END --

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 915 (Leyva) - Mobilehome parks: emergency relief: coronavirus (COVID-19)

Bill Summary:

SB 915 would temporarily prohibits mobilehome parks from evicting residents who timely notify park management that they have been impacted, as defined, by the coronavirus (COVID-19) pandemic. It also would require mobilehome parks to give such COVID-19-impacted residents at least one year to comply with demands to repay outstanding rent, utilities or other charges, as well as up to one year to cure violations of park rules and regulations.

Fiscal Impact:

• Department of Housing and Community Development: One-time costs of $389,000 in the first year and $365,000 in the second year for 2.0 limited-term Associate Governmental Program Analysts (AGPAs) to (as part of the Mobilehome Residency Law Protection Program that begins July 1, 2020) triage, evaluate, and process accordingly eviction-related contacts and complaints made by mobilehome owners and tenants for alleged violations of this measure. The department estimates 2.0 AGPAs would be needed for every 1,000 contacts it receives. These limited-term positions may need to be extended beyond two years depending on the ongoing efforts to mitigate the effects of the COVID-19 pandemic. (General Fund)
• Courts: Unknown, potentially-significant workload cost pressures to the courts to adjudicate alleged violations of this measure. While the superior courts are not funded on a workload basis, an increase in workload could result in delayed court services and would put pressure on the General Fund to fund additional staff and resources. For example, the proposed 2020-21 budget would appropriate $35.2 million from the General Fund to backfill continued reduction in fine and fee revenue for trial court operations. (General Fund*)

*Trial Court Trust Fund

Background:

The Mobilehome Residency Law (MRL) 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 pursuant to certain procedures and upon providing written notice of at least 60 days to the homeowner.

The specified reasons over which the management may terminate a tenancy include the failure of the homeowner or resident to comply with a reasonable rule or regulation of the park that is part of the rental agreement, as specified, and failure to pay rent, utility charges, or reasonable incidental service charges within five days past the due date. After the five days of failure to pay rent, utility charges, or reasonable incidental service charges elapses, the MRL requires the management to provide the homeowner with a three-day notice to pay or vacate the tenancy, as prescribed. For purposes of the MRL, an act or omission of the homeowner or resident does not constitute a failure to comply with a reasonable rule or regulation of the park that is part of the rental agreement unless and until the management has given the homeowner written notice of the alleged rule or regulation violation and the homeowner or resident has failed to adhere to the rule or regulation within seven days, except as specified.

Proposed Law:

This bill would:

• Prohibit mobilehome park management from terminating or attempting to terminate the tenancy of a homeowner or resident who is impacted by the COVID-19 pandemic, as specified, on the grounds of failure of the homeowner or resident to comply with a reasonable rule or regulation of the park that is part of the rental agreement or failure to pay rent, utility charges, or reasonable incidental service charges during a declared state of emergency or local emergency related to the pandemic, and during a 120-day time period after the state of emergency or local emergency is terminated, unless necessary to protect the public health and safety.
• Prohibit, during this timeframe, the management from issuing certain notices relating to rent increases, tenancy termination, or refusal to renew tenancy.
• Prohibit a court from issuing a summons on a complaint for unlawful detainer within this timeframe for failure of the homeowner or resident to comply with a reasonable rule or regulation of the park that is part of the rental agreement or failure to pay rent, utility charges, or reasonable incidental service charges unless the court finds the action necessary to protect public health and safety.
• Provide a homeowner or resident who is impacted by the COVID-19 pandemic, as specified, seven days from the date they receive a notice of a failure to comply with a reasonable rule or regulation of the park to notify the management in writing of their need to have additional time to comply with the notice. With exceptions, management that receives the described notice would be required to grant the homeowner or resident the additional time requested to comply with the rule or regulation, but in no event more than one year.
• Allow a homeowner or resident who is impacted by the COVID-19 pandemic, as specified, to notify management in writing at any time prior to the expiration of a three-day notice demanding payment of past due rent, utilities, or reasonable incidental charges that they need additional time to make the payment due to hardship from the pandemic. It would require management that received the above-described notice to grant the homeowner or resident one year from the expiration of the three-day notice to make the payment.
• Require a notice of a failure to comply with a reasonable rule or regulation of the park that is part of the rental agreement, as specified, or for failure to pay rent, utility charges, or reasonable incidental service charges issued during the declared state of emergency or local emergency related to the COVID-19 pandemic, and during a 120-day time period after the termination thereof, to contain specified language describing these provisions, in at least 12-point boldface type at the top of the notice.
• Prohibit the management from:
  • Seeking to enforce an order to enjoin a continuing or recurring violation of a reasonable rule or regulation of the mobilehome park or
  • Imposing rent increases or other charges in addition to what is included in the resident’s base rent while the homeowner or resident is in compliance with the terms of a specified payment recovery plan

If a homeowner or resident who provides written notice to the management that the homeowner or resident is impacted by the COVID-19 pandemic, as specified.

• Allow a homeowner or resident who is prevented by management from exercising the rights provided by this bill to bring a civil action. The court would be allowed to order injunctive relief and other relief the court deems proper, as specified.
• Require management to itemize on the homeowner’s or resident’s rental invoice any payments made and due under a repayment plan.
• Require any rent or other charges owed by a homeowner or resident pursuant to this measure to be forgiven, in total or on a prorated basis, if the management receives government funding relief for the loss of rent or charges due to the COVID-19 pandemic.
• Require a specified payment recovery period to be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to the COVID-19 pandemic.

Related Legislation:

AB 828 (Ting, 2019-2020 Reg. Sess.) would establish, for residential tenants impacted by the COVID-19 pandemic and the resulting economic fallout, a temporary moratorium on evictions as well as a procedure for court-supervised repayment of unpaid rental balances accumulated during the state of emergency. AB 828 is pending in the Senate Committee on Rules.

SB 939 (Wiener, 2019-2020 Reg. Sess.) would establish a temporary eviction moratorium, a 12-month repayment period, and procedures for renegotiating or terminating leases for commercial tenants, as specified, that are impacted by the COVID-19 pandemic. SB 939 is pending in this Committee.

SB 1410 (Gonzalez, 2019-2020 Reg. Sess.) would establish the COVID-19 Emergency Rental Assistance Program, which would pay participating residential landlords 80 percent of the monthly rent as payment in full on behalf of tenant households demonstrating an inability to pay all or any part of the household’s rent due between April 1, 2020, and December 31, 2020, due to the COVID-19 pandemic. SB 1410 is pending in this Committee.

Staff Comments:

The fiscal impact of SB 915 to the courts will depend on many unknown factors, including the numbers of violations alleged to have occurred, if parties settle the matter before the filing of an action, and the factors unique to each case. While it is not known how many actions for alleged violations ultimately would be filed, it generally costs about $7,896 (in FY 2019-2020) to operate a courtroom for one eight-hour day. Consequently, if alleged violations of SB 915 lead to the filing of cases that, combined, take more than 50 hours of court involvement, the cost pressures of this measure to the courts would surpass the Suspense File threshold. As indicated above, while courts are not funded on a workload basis, an increase in workload could result in delayed services and would put pressure on the General Fund to fund additional staff and resources.

-- END --

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2019-2020 Regular Session

Bill No: SB 915 (Author:Leyva)

Version: May 13, 2020

Hearing Date: May 22, 2020

Fiscal: No

Urgency: No

Consultant: TSG

SUBJECT

Mobilehome parks: emergency relief: coronavirus (COVID-19)

DIGEST

This bill temporarily prohibits mobilehome parks from evicting residents who timely notify park management that they have been impacted, as defined, by COVID-19. The bill further mandates that mobilehome parks give such COVID-19-impacted residents at least a year to comply with demands to repay outstanding rent, utilities or other charges, as well as up to a year to cure violations of park rules and regulations.

EXECUTIVE SUMMARY

Prior to the COVID-19 pandemic, California already faced an affordable housing crisis and widespread homelessness. Now that measures to curb spread of the disease have resulted a dramatic economic downturn and mass layoffs, California confronts the prospect that a wave of evictions for non-payment of rent will soon develop, bringing with it a significant further increase in homelessness, unless effective action is taken to prevent it. This bill attempts to craft a solution customized to the unique context of mobilehomes, where a distinct body of law applies and where a disproportionate number of disabled, veteran, and elderly Californians live. For mobilehome owners and residents impacted by the COVID-19 pandemic, the bill would fortify the Judicial Council’s existing moratorium on eviction actions and extend it to 120 days past the end of any state or local state of emergency. In addition, the bill would provide mobilehome owners and residents with significant additional time to get caught up on rent or cure violations of park rules and regulations, during which time rent and other charges could not be raised.

The bill is sponsored by the Golden State Manufactured Homeowners’ League. Support is from a legal aid organization and a credit union, both of which serve mobilehome owners. Opposition comes from realtors and mobilehome park owners, who contend that the bill is vague, goes too far, and, as a result, deprives parks of the revenue they need to survive financially and the tools they need to operate effectively.

PROPOSED CHANGES TO THE LAW

Existing state law:

1. Proclaims that, beginning March 4, 2020, a state of emergency exists across the entire state due to the COVID-19 pandemic. (Governor’s Proc. of a State of Emergency (Mar. 4, 2020).)
2. Provides that, until 90 days after the Governor lifts the state of emergency related to COVID-19 or until repealed or amended by the Judicial Council, all of the following apply:

a) a court may not issue a summons on a complaint for unlawful detainer unless it finds, in its discretion and on the record, that the action is necessary to protect public health and safety;

b) a court may not enter a default or a default judgment for restitution in an unlawful detainer action for failure of defendant to appear unless the court finds that the action is necessary to protect public health and safety and the defendant has not appeared in the action within the time provided by law, including by any applicable executive order; and

c) if a defendant has appeared in a pending unlawful detainer action, the court may not set a trial date earlier than 60 days after a request for trial is made unless the court finds that an earlier trial date is necessary to protect public health and safety. Any trial set in an unlawful detainer proceeding as of April 6, 2020 must be continued at least 60 days from the initial date of trial. (Judicial Council, Emergency Rules Related to COVID-19, Emergency Rule 1.)

1. Provides that tenants served with a court summons for eviction before May 31, 2020 have an additional sixty days to file their response, provided that the tenant meets all of the follow conditions:

a) the tenant was current on all rent payments through March 27, 2020;

b) tenant provided written notice to the landlord, within 7 days after the rent was due, that the tenant cannot pay all of the rent because of impacts from COVID-19; and

c) the tenant maintains documentation of lost income due to COVID-19, though the tenant does not have to provide that documentation to the landlord until the tenant pays back the missed rent. (Governor’s Exec. Order N-37-20 (Mar. 27, 2020).)

1. Sets forth the grounds, including, but not limited to both of the following, on which a mobilehome park may terminate the tenancy of a homeowner and commence a unlawful detainer action after meeting other specified procedural conditions:

a) nonpayment of rent, utility charges, or reasonable incidental service charges under the lease, if they remain unpaid for five days after first due and after expiration of a notice demanding payment within an additional three days; (Civ. Code § 798.56(e)) and

b) failure to comply with a notice demanding correction of a violation of any reasonable park rule or regulation within 7 days. (Civ. Code § 798.56(d and e.))

This bill:

1. Creates a presumption that a mobilehome owner or resident has been impacted by the COVID-19 pandemic if the resident provides reasonable evidence that:

a) the resident cannot pay any part of what it owes the park for rent, utilities, or other charges due to job or income loss or reduction suffered as a proximate cause of the COVID-19 pandemic; or

b) the resident is unable, due to COVID-19 imposed restrictions, to comply with a demand from the park to correct any violation of a reasonable park rule or regulation within seven days due to an inability to relocate any person or persons residing in the mobile, or the inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the resident’s home or space.

1. Prohibits park management, during a declared state or local emergency related to the COVID-19 pandemic and for 120 days after the state of emergency ends, from terminating or attempting to terminate the tenancy of a mobilehome owner or resident who timely notifies park management in writing that they are impacted by the COVID-19 pandemic as described in (1), unless the termination is necessary to protect the public health and safety.
2. Requires park management to give a mobilehome owner or resident a reasonable time, but at least one year, to pay back unpaid rent, utilities or reasonable incidental charges, if the mobilehome owner or resident timely notifies park management in writing that they are impacted by the COVID-19 pandemic as described in (1).
3. Requires park management to give a mobilehome owner or resident reasonable additional time, but no more than one year, to comply with a demand to correct a violation of a reasonable park rule or regulation, if the mobilehome owner or resident timely notifies park management in writing that they are impacted by the COVID-19 pandemic as described in (1).
4. Requires park management to provide mobilehome owners and residents with notice about their rights under (4), above, together with any demand to correct a violation of a reasonable park rule or regulation.
5. Prohibits park management, after receiving a notice from a homeowner or resident that they are impacted by the COVID-19 pandemic as described in (1), from doing any of the following:

a) raising the rent while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;

b) imposing additional service charges while the homeowner or resident is in compliance with a court-ordered or mutually-agreed upon repayment plan;

c) seeking to enforce an order enjoining a continuing or recurring violation of any reasonable park rule or regulation.

1. Authorizes mobilehome owners and residents to enforce their rights under the bill through a civil action in court and empowers the court to order injunctive relief and any other relief the court deems proper, including establishing rent repayment plans.
2. Requires park management to itemize any rent payment plan on the homeowner or resident’s rental invoice.

1. Provides that rent or other charges owed by a homeowner or resident under this bill shall be forgiven, in total, or on a prorated basis, if the management receives government funding relief for the loss of rent or charges due to the COVID-19 pandemic.
2. Requires that any rent repayment period be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to the COVID-19 pandemic.
3. Prohibits a homeowner or resident from selling or transferring their mobilehome before completing payments under a rent recovery plan, unless the sale or transfer occurs by way or an irrevocable escrow instruction.
4. Does not supersede local ordinances that provide greater protections to residents.

COMMENTS

1. Background

This bill is a specific response to the public health concerns and economic fallout emanating from the current COVID-19 pandemic.

In ordinary times, housing plays an important role in human well-being. During the COVID-19 pandemic, housing has taken on an even more vital role, since public health experts advise that sheltering in place, physical distancing, good hygiene, access to proper sanitation, and self-quarantining when infectious or exposed are all critical to preventing spread of the disease. All are made difficult or impossible without a home.

Prior to the COVID-19 pandemic, California already faced an affordable housing crisis and widespread homelessness. Even during those comparatively good economic times, roughly 40 percent of Americans reported that they would face difficulty covering a $400 emergency expense.^[1] Now that measures to curb spread of the disease have resulted in a dramatic economic downturn and mass layoffs, California confronts the likelihood that a wave of evictions for non-payment of rent will soon develop, leading to a significant increase in homelessness, unless effective action is taken to prevent it. According to a recently released projection based on the usual correlation between joblessness and homelessness, a 20 percent spike in homelessness is likely to follow the recent unprecedented jump in unemployment claims.^[2] The projection may be overstated to some degree, because it does not take into account recent federal action that provided direct relief payments to many Americans. Nonetheless, the key takeaway holds: California currently confronts a significant risk that large numbers of Californians will soon lose their homes at a time when that has especially acute public health consequences.

2. The mobilehome context is different from conventional residential rental housing

The COVID-19 pandemic and its economic fallout have a unique impact on mobilehome housing that goes beyond the effect on conventional residential rental housing. Mobilehome owners simultaneously own the structure in which they dwell, and rent the land on which the home sits from the park. Moreover, despite their names, mobilehomes are not, in fact, very mobile. Consequently, mobilehome residents who get evicted not only have to leave, they also often lose a significant asset – the mobilehome – in the process. These unique dynamics explain the existence of the Mobilehome Residency Laws (MRL), a distinct set of statutes that govern how mobilehome tenancies work and that generally provide greater protections against eviction in the mobilehome context than those which exist for conventional housing. The author and sponsor of this bill assert that the same rationale which supports greater protection for mobilehome owners and residents in ordinary times, now demand a customized and uniquely protective approach to mobilehome tenants impacted by COVID-19.

3. How the bill works conceptually; questions about details and mechanics

The mobilehome-specific approach proposed by this bill would work, in broad conceptual terms, as follows. For as long as any statewide or local state of emergency is in effect and for 120 days thereafter, parks could not proceed to evict mobilehome owners or residents in two different scenarios.

First, parks could not proceed to evict mobilehome owners or residents who, within five days after the rent bill (including utilities and other incidental charges) is due, notify the park that they cannot pay on time because they have lost a job or income due to the COVID-19 pandemic. Instead, the park would have to allow the mobilehome owner or resident a reasonable time, including at least a year, to make up the payment for that period.

Second, parks could not proceed to evict mobilehome owners or residents who, within seven days of receiving a demand from the park to correct a violation of a park rule or regulation, notify the park that they cannot comply within the deadline because of a complication resulting from the COVID-19 pandemic. Instead, the park would have to allow the mobilehome owner or resident a “reasonable time” to comply, capped at one year.

Under either scenario, parks could not impose rent increases, fees, or additional charges during the extended repayment or compliance period. Mobilehome owners and residents would have the ability to enforce all of these rights in court if necessary.

Within this wider conceptual framework, a number of questions arise about the details and how it would all operate mechanically. The most significant of those issues are discussed in the following paragraphs and, except where noted, the author proposes to address them through amendments to be offered in committee. (See Comment 5, Proposed Amendments, below.)

a. What constitutes a “reasonable amount of additional time” to make up missed payments?

The bill in print says that a park must grant mobilehome owner or residents a “reasonable amount of additional time, but in no event less than one year” to make up payments they missed due to the impact from the COVID-19 pandemic. Park owners, in opposition to the bill, understandably ask what “reasonable” means in this context. The bill does not say, meaning that it would be left up to the parks, at least initially, to decide. That might be concerning from the perspective of mobilehome owners and residents, since the parks have a financial incentive to interpret “reasonable” so as to require payment sooner rather than later. The vagueness of the term “reasonable” is concerning to the parks, since they potentially face litigation and, if they get it wrong, liability.

To address this ambiguity, the author proposes to offer amendments that would simply give mobilehome owners and residents impacted by the COVID-19 pandemic one year to make up the missed payments, with the option of extending that deadline to the end of 2021 if the mobilehome owner or resident can show continued impact.

b. What constitutes a “reasonable amount of additional time” to comply with a demand to correct a violation of park rules and regulations?

The bill in print says that a park must grant “reasonable additional time, but in no event more than one year” to mobilehome owners and residents who cannot timely comply with a seven day demand to correct violations of park rules and regulations due to the impact of the COVID-19 pandemic. For the same reasons discussed in (a), above, such a vague standard invites disputes and leaves all parties less protected.

To address this ambiguity, the author proposes to offer amendments in Committee that would set the additional time at six months, a clear and concrete rule that seems like it would be reasonable in most instances. Where a lingering violation would truly put public health and safety at risk, however, six months would not be reasonable, so the author proposes to include an exception for such circumstances. For the same reason, the author proposes to strike from the bill a provision that would have prevented parks from seeking a restraining order in situations where a repeated or recurring violation of park rules threatens to cause great or irreparable harm.

c. What constitutes “reasonable evidence” of impact from the COVID-19 pandemic, can parks demand to see it, and if so, when?

The bill in print says that mobilehome residents shall be presumed to have been impacted by COVID-19 if they provide “reasonable evidence” that such is the case. Once again, the vagueness of the standard could invite disputes and abuse. Left unspecified, furthermore, is to whom this evidence gets provided, and when.

With regard to evidence that COVID-19 is the reason why the resident has fallen behind on rent, the author proposes to offer amendments in Committee that would provide examples of documents that suffice to meet the requirement, clarify that parks can demand this documentation before granting the extension, and ensure residents receive notice that they may need to provide this documentation. These amendments address the issue partially, but residents could still be legitimately concerned that unscrupulous parks will exploit the opportunity to go on a fishing expedition through the resident’s private financial information. Assuming the bill advances, therefore, the author may wish to further refine these provisions to add constraints on the kind and amount of documentation that parks can demand.

With regard to evidence that COVID-19 is the reason why the resident cannot comply with a demand to correct a violation of park rules within seven days, the author proposes to offer amendments that would limit the necessary evidence to a signed statement explaining the challenge and its connection to the pandemic. This means that parks have to take the resident at their word, but to require greater proof in this situation could quickly become quite difficult and complex.

d. What grounds for terminating a tenancy would still be available to parks?

At first blush, subdivision (a) of the bill appears to sweep quite broadly. It states that “management shall not terminate or attempt to terminate the tenancy of a homeowner or resident… under this article…” Read alone, that language appears to prohibit all mobilehome evictions of any kind. There is a public health rationale for temporarily prohibiting all evictions, regardless of their basis, and that is what the Judicial Council’s Emergency Rule 1 has done, albeit with an exception for situations involving a threat to public health and safety.

The intent behind this bill appears to be more restrained, however. Because subdivision (a) only applies to a mobilehome owner or resident that has been impacted by COVID-19, and subdivision (k) defines such impact only in relation to inability to pay rent and inability to timely comply with a demand to correct a violation of park rules. In other words, once subdivision (a) is read in conjunction with subdivision (k), it appears that subdivision (a) only prohibits parks from terminating or attempting to terminate tenancies for non-payment of rent or for failure to correct a violation of park rules within the seven days given. All other avenues to eviction would be available to the parks, whether or not the homeowner or resident in question has been impacted by the COVID-19 pandemic. The author proposes to offer amendments in Committee that would remove any ambiguity on this account and ensure that these provisions operate in harmony with the Judicial Council’s Emergency Rule 1, rather than superseding it.

e. Retroactive effects on notices of termination of tenancy that are issued before the bill becomes operative

As written, it is not clear what effect the bill would have on notices of termination that have already been served on mobilehome owners and residents when the bill enters into force. Assuming that this bill passes out of Committee, the author may therefore wish to include a provision addressing that scenario at some point further along in the legislative process.

3. How this bill’s proposal differs from existing, COVID-19 related tenant protections

In addition to myriad local ordinances now in force, there are three existing statewide directives that purport to offer protections to residential tenants impacted by the COVID-19 pandemic and the resulting economic downturn.

At the statewide level, Governor Newsom has issued two Executive Orders that affect residential evictions during the state of emergency and the period immediately following. The first, Executive Order N-28-20, was released on March 19, 2020. The N-28-20 Order did little more than give local jurisdictions discretion to implement local protections for tenants if the local jurisdiction wanted to; an authority they almost certainly already had (and which several had already exercised). Thus, by itself, the N-28-20 Order provides no protections for mobilehome owners and residents, or any other tenants, for that matter. It relies entirely on local action.

Governor Newsom issued the second eviction-related order, Executive Order N-37-20, on March 27, 2020. Ordinarily, when a tenant gets served with an eviction lawsuit, the tenant has five days to respond to the court with a formal, written answer to the landlord’s explanation for why the judge should order the tenant’s removal. (Code of Civ. Pro. § 1167.) Executive Order N-37-20 gives tenants an additional sixty days to file that response, but only under certain conditions. First, the tenant has to have been current on all rent payments through the date of the Order. Second, the tenant has to provide notify the landlord, in writing and within 7 days after the rent was due, that the tenant cannot pay all of the rent because of impacts from COVID-19. Finally, the tenant has to maintain documentation of loss income due to COVID-19, though the tenant does not have to provide that documentation to the landlord until the tenant pays back the missed rent. Executive Order N-37-20 expires as of May 31, 2020. Though widely reported as an “eviction moratorium” in the media, some tenant advocates pointed out that, because Executive Order N-37-20 requires tenants to take action to obtain relief, many otherwise eligible tenants would not qualify. Moreover, they noted, Executive Order N-37-20 does not actually prohibit landlords from pursuing evictions, it just delays how quickly those evictions can advance.

Then, on April 6, 2020, the Judicial Council adopted Emergency Rule 1. In effect, Emergency Rule 1 halted judicial processing of new eviction cases, including mobilehome evictions, and significantly delayed those evictions that were already in progress. This had the effect of automatically postponing nearly all eviction, without the need for any action by tenants. Critically, however, nothing in Emergency Rule 1 creates any defense against lawful termination of a lease. As a result, unless a local ordinance prevents it, nothing currently stops landlords, including mobilehome parks, from terminating tenancies for any lawful reason, including falling behind on rent. Except where a local law prevents it, landlords are currently free to get everything ready to start a lawsuit for eviction (technically speaking, an “unlawful detainer” lawsuit) against their tenants, up to and including (if the court is open for it) filing the complaint. This means that these cases may all proceed the moment Emergency Rule 1 expires. Absent government action to intervene, the result may be a sudden wave of unlawful detainer lawsuit moving through the courts, followed not long thereafter by the physical removal of large numbers of tenants from their homes.

In the context of mobilehome evictions, this bill would provide exactly that intervention. Though not unlike the Emergency Rule in some regards, the bill fortifies and extends the Emergency Rule in at least two important ways, all applicable to the mobilehome context only. First, while the Emergency Rule protects mobilehome owners and residents from eviction during the state of emergency and for 90 days thereafter, this bill would extend that protection for an additional 30 days. Second, and perhaps most critically, the bill creates a pathway to repayment for mobilehome residents who have fallen behind. While the bill does not guarantee that the mobilehome owners will succeed in getting back on track, it at least ensures that the mobilehome owner has the opportunity, something that Emergency Rule 1 does not provide.

4. Domino effects on parkowners and their creditors

In opposition to this bill, park owners rightly point out that they could be left waiting a very long time with drastically reduced income, especially if the state of emergency drags on for many months more. Theoretically, parks will get paid in full eventually under the bill, but there is no guarantee that the park’s creditors will be sufficiently patient to wait it out. Nor, as the park owners point out, will their expenses subside. They will still be obligated to maintain the park and keep utilities flowing. They may even have to make some modifications to the park in light of public health guidance about preventing the spread of COVID-19.

It seems clear that passage of this bill would result in a significant, though hopefully temporarily reduction in park income. What is less clear, however, is whether parks would necessarily fare any better in the absence of this bill. Without the bill, parks would eventually be free to evict mobilehome owners and residents who have fallen behind on rent, though they would still have to wait until the Judicial Council’s Emergency Order expires. The new tenants – assuming that financially stable new tenants could be found -- would have to pay the rent going forward, but the old tenants would have had to do the same. Meanwhile, unlike the old tenants, the new tenants would not owe any rent corresponding to the state of emergency, so parks would have little hope of ever recovering that money. If this is correct, then keeping the current mobilehome owners and residents in the park and giving them ample time to make up for payments missed during the COVID-19 crisis – what this bill requires, in short – may well be the strategy most likely to make parks whole in the long run.

5. Proposed amendments

In order to address the issues set forth in the Comments, above, the author proposes to incorporate amendments into the bill that would, among other things:

• require parks to grant mobilehome owners and residents one year additional time to make up rent payments missed due to COVID-19 impacts, with the possibility of extension through the end of 2021, instead of “a reasonable amount of additional time but in no event less than a year”
• require parks to grant mobilehome owners and residents six months’ additional time to comply with a demand to correct violations of park rules, instead of “a reasonable amount of additional time, but in no event more than a year,” with an exception for situations that constitute a grave threat to public health or safety;
• clarify what constitutes “reasonable evidence,” and when it can be demanded;
• clarify that parks may terminate tenancies for lawful reasons other than non-payment of rent and failure to comply with a demand to correct a park rule violation within seven days;
• eliminate a provision preventing parks from obtaining injunctive orders restraining repeated or recurring park rule violations that threaten to cause great or irreparable harm;
• add a notice to tenants about their rights under the bill, to accompany any three day notice to pay rent or quit; and
• express the Legislature’s intent that the bill shall not be interpreted to conflict with the Judicial Council’s Emergency Rule 1.

A mock-up of the amendments in context is attached to this analysis.

6. Arguments in support of the bill

According to the author:

Senate Bill 915 creates a process to protect mobilehome residents that have been impacted by the COVID-19 crisis by preventing management of mobilehome parks from terminating or attempting to terminate the tenancy of residents. Mobilehomes make up approximately 10% of the state’s affordable housing stock. In most cases, residents are comprised of vulnerable populations, including seniors, veterans, immigrants, and low / fixed income individuals and families.

[…] In March 2020, Governor Newsom issued an Executive Order banning the enforcement of eviction orders in order to protect renters and homeowners affect by COVID-19. In the Governor’s Executive Order, the language is not specific on the Civil Code and Mobilehome Residency Law (MRL) sections that govern mobilehome residents and evictions. SB 915 aims to directly address these gaps by citing the specific Civil Code sections that pertain directly to mobilehome residents to ensure that mobilehome residents stay housed during the crisis and a reasonable time after.

As sponsor of the bill, the Golden State Manufactured Home-Owners League writes:

SB 915 would create a process to protect mobilehome park residents impacted by the COVID-19 crisis, by giving them a greater chance of remaining in the mobilehome during the pandemic and a reasonable time after.

Seniors, veterans, immigrants living on fixed incomes and low income could be the next group of individuals to become homeless. For these reasons, GSMOL supports SB 915.

In support, Public Law Center writes:

P[ublic] L[aw] C[enter] works tirelessly to safeguard the rights of mobilehome owners and advocate for their fair treatment and welfare. Orange County has over 200 mobilehome parks consisting of more than 28,000 mobilehome spaces. We are currently seeing the impact of the lack of effective safeguards against rent abuse and loss of housing in mobilehome parks. […]

With the current COVID-19 pandemic, protections for tenants are being introduced in a variety of areas, from Executive Orders from the Governor, Emergency Rules by the Judicial Council and legislation. It is particularly important that mobilehome owners are explicitly included in those protections and are provided adequate and relevant additional protections as well. SB 915 addresses many of the issues that we expect to see as a result of the pandemic.

7. Arguments in opposition to the bill

In opposition to the bill, Western Manufactured Housing Communities Association

writes:

WMA understands that residents have been severely impacted by the COVID-19 crisis. We also want to express that our parkowners have been similarly impacted. The closure of business and the economic impact that have resulted from the current crisis have been real and material. WMA is aware that families are suffering and their financial well-being has suffered. Our members and their families are also feeling the effects of this unprecedented crisis. […]

Mobilehomes are an essential tool that can help address California’s lack of affordable housing. Our members provide safe, affordable, and quality housing options for hundreds of Californians. That being said, our parkowners have mortgages of their own to pay. They have responsibilities to provide high-quality park amenities that require upkeep and maintenance. If a resident who has received funds from the CARES Act is allowed to forego rent payments without threat of eviction, our concern is that entire communities could suffer […].

In further opposition to the bill, the California Mobilehome Parkowners Alliance writes:

The desire to protect renters who have been financially affected by the state’s shelter in place order and ensure that residents continue to have a home to shelter in is understandable during this unprecedented emergency. Nevertheless, the actions taken by the Governor and Judicial Council have injected considerable uncertainty in the rental market. Despite the fact that a mobilehome parkowner has no guarantee that they will ever recuperate back due rent, many parkowners must continue to pay a mortgage and all must continue to maintain their properties for the benefit and safety of their residents. In fact, parkowners are likely to incur new expenses associated with new services designed to protect their tenants during this crisis. […]

Extending the time in which parkowners cannot collect rent further puts them and by extension their residents in an even more precarious position. […]

In addition, SB 915 prohibits parkowners from enforcing the requirements of some 7-day notices. These notices are essential tools parkowners need to enforce park rules and make their parks a good environment for all tenants.

SUPPORT

Golden State Manufactured Home-Owners League (sponsor)

Bay Federal Credit Union

Public Law Center

OPPOSITION

Apartment Association of Orange County

Apartment Association, California Southern Cities

California Association of Realtors

California Mobilehome Parkowners Alliance

East Bay Rental Housing Association

Western Manufactured Housing Communities Association

RELATED LEGISLATION

Pending:

SB 939 (Wiener, 2020) establishes a temporary eviction moratorium, a 12-month repayment period, and procedures for renegotiating or terminating leases for certain commercial tenants in California impacted by the COVID 19 pandemic and related economic fallout.

SB 1410 (Gonzalez, 2020) establishes the COVID-19 Emergency Rental Assistance Program, which would pay participating residential landlords 80 percent of the monthly rent as payment in full on behalf of tenant households demonstrating an inability to pay all or any part of the household’s rent due between April 1, 2020, and October 31, 2020, due to the COVID-19 pandemic.

AB 828 (Ting, 2019) establishes, for residential tenants impacted by the COVID 19 pandemic and the resulting economic fallout, a temporary moratorium on evictions as well as a procedure for court-supervised repayment of unpaid rental balances accumulated during the state of emergency. AB 828 is currently pending consideration before the Senate Judiciary Committee.

Prior: None known.

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

Amended Mock-up for 2019-2020 SB-915 (Leyva (S))

Mock-up based on Version Number 96 - Amended Senate 5/13/20

The people of the State of California do enact as follows:

SECTION 1. Section 798.63 is added to the Civil Code, to read:

798.63. (a) (1) The management shall not terminate or attempt to terminate the tenancy of a homeowner or resident who is impacted by the coronavirus (COVID-19) pandemic, as described in subdivision (k), pursuant to subdivisions (d) or (e) of section 798.56 during a declared state of emergency or local emergency related to the COVID-19 pandemic, and during a 120-day timeframe after the state of emergency or local emergency is terminated, unless necessary to protect the public health and safety.

(2) The restriction set forth in paragraph (1) shall also preclude the management from issuing a notice pursuant to Section 798.30 or 798.55 or subdivision (e) of Section 798.56 during the timeframe set forth in paragraph (1).

(3) During a declared state of emergency or local emergency related to the COVID-19 pandemic and for 120 days thereafter, a court may not issue a summons on a complaint for unlawful detainer based on subdivisions (d) or (e) of Section 798.56 unless the court finds, in its discretion and on the record, that the action is necessary to protect public health and safety.

(b) (1) (A) Any notice issued pursuant to subdivision (e) of Section 798.56 during the timeframe set forth in paragraph (1) of subdivision (a) shall contain the following language printed in at least 12-point boldface type at the top of the notice:

“IMPORTANT: Pursuant to Section 798.63 of the Civil Code, if you are a homeowner or resident who is impacted by the COVID-19 pandemic and you are unable to pay the amount demanded int this notice due to hardship from COVID-19, within three (3) days of receiving this notice, you must notify management in writing of your need for additional time to pay. If you do this, management must grant you at least one year to make up the missed payment. Management may demand that you give them some evidence, such as a letter, paycheck stubs, or bank statements, showing that you have experienced a job loss, reduction in hours, or reduction in income as a result of the COVID-19 pandemic before granting you this additional time. You should keep a copy of the notice and any documentation you give to management.”

(B) A homeowner or resident who is impacted by the COVID-19 pandemic, as described in paragraph (1) of subdivision (k), may notify management, in writing and at any time prior to the expiration of a three day notice demanding payment of past due rent, utilities, or reasonable incidental charges pursuant to subdivision (e) of Section 789.56, that they need additional time to make the payment due to hardship from COVID-19. The notice shall be deemed to apply to all future rent, utilities, or reasonable incidental charges which are billed, due, payable, or the subject of a notice pursuant to subdivision (e) of Section 798.56 unless the homeowner or resident provides written notice to management of a renewed ability to pay.

(C) Management that receives a notice, pursuant to subparagraph (B) shall grant the homeowner or resident one year from the expiration of the three day notice to make the payment. Nothing in this subparagraph prevents management from offering incentives, including, but no limited to, discounts on the balance owed, to a homeowner or resident for paying back unpaid rent in a shorter amount of time, but the management shall not terminate or attempt to terminate the tenancy based upon the homeowner or resident’s failure to meet the incentivized payment schedule.

(2) (A) Any notice issued pursuant to subdivision (d) of Section 798.56 during the timeframe set forth in paragraph (1) of subdivision (a) shall contain the following language printed in at least 12-point boldface type at the top of the notice:

“IMPORTANT: Pursuant to Section 798.63 of the Civil Code, if you are a homeowner or resident who is impacted by the COVID-19 pandemic and you are unable to comply with this notice due to hardship from COVID-19, within seven (7) days of receiving this notice, you must notify management in writing of your need for additional time. Unless it would perpetuate a public nuisance or cause a substantial threat to public health or safety, management must grant homeowners or residents impacted by COVID-19 such additional time as you need to comply with this notice, but not more than a year. Before granting you this additional time, management may demand that you sign a statement explaining why impact from the COVID-19 prevents you from complying with this notice within seven (7) days as would ordinarily be required. You should keep a copy of the notification you give to management and any statement that you sign.”

(B) A homeowner or resident who is impacted by the COVID-19 pandemic, as described in paragraphs (2) or (3) of subdivision (k), shall have seven days from the date they receive the notice pursuant to subparagraph (A) to notify the management in writing of their need to have additional time to comply with the notice.

(C) Management that receives a notice, pursuant to subparagraph (B), that a homeowner or resident needs additional time to comply with a notice issued pursuant to subdivision (d) of Section 798.56 shall grant the homeowner or resident such additional time to comply as the homeowner or resident requests, but in no event more than one year , unless failure to comply sooner would perpetuate a public nuisance or cause a substantial threat to public health or safety.

(c) If a homeowner or resident provides written notice to the management that the homeowner or resident is impacted by the COVID-19 pandemic, as described in subdivision (k), the management shall not do any of the following:

(1) Impose a rent increase upon the homeowner or resident while the resident is in compliance with the terms of a payment recovery plan determined by a court pursuant to subdivision (d) or mutually agreed upon by the homeowner or resident and the management, relating to the payment of overdue rent.

(2) Impose additional service charges, including otherwise permissible pass-through charges, late fees, or any other charges, upon the homeowner or resident in addition to what is included in their base rent while the homeowner or resident is in compliance with the terms of a payment recovery plan determined by a court pursuant to subdivision (d) or mutually agreed upon by the homeowner or resident and the management, relating to the payment of overdue rent, utilities, or other charges.

(3) Seek to enforce an order enjoining a continuing or recurring violation of any reasonable rule or regulation of a mobilehome park by the homeowner or resident pursuant to Section 798.88.

(d) Any homeowner or resident who is prevented by management from exercising the rights provided for in this section may bring a civil action in a court of competent jurisdiction to enforce the homeowner’s or resident’s rights. The court may order injunctive relief and any other relief the court deems proper, including, but not limited to, establishing a payment recovery plan for the homeowner or resident with respect to overdue rent and allowing the homeowner or resident to remain in their residence during a payment recovery period determined by the court.

(e) Management shall itemize, on the homeowner or resident’s rental invoice, any payments made and due under any repayment plan.

(f) Any rent or other charges owed by a homeowner or resident pursuant to this section shall be forgiven, in total or on a prorated basis, if the management receives government funding relief for the loss of rent or charges due to the COVID-19 pandemic.

(g) A payment recovery period determined by a court pursuant to subdivision (d) or the one year of additional time to pay established pursuant to subparagraph (C) of paragraph (1) of subdivision (b) shall be extended through the end of the 2021 calendar year if the homeowner or resident demonstrates that they have continued to suffer economic hardship due to the COVID-19 pandemic.

(h) A homeowner or resident shall not sell or transfer their mobilehome before completing their payments pursuant to a recovery plan determined by a court pursuant to subdivision (d) or mutually agreed upon by the homeowner or resident and the management, unless the sale or transfer occurs by way of an irrevocable escrow instruction.

(i) This section shall not supersede a local ordinance that provides more protection to residents who are subject to this article.

(j) For purposes of this section, “a state of emergency or local emergency” means an emergency declared by the Governor, a city, a county, or a city and county pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code).

(k) For purposes of this section, a homeowner or resident has been impacted by the COVID-19 pandemic if the homeowner or resident provides reasonable evidence of any of the following:

(1) The homeowner or resident is unable to pay any part of the rent, utilities, or other charges of the park for which the homeowner or resident is obligated, due to a job or income loss or reduction suffered as a proximate result of the COVID-19 pandemic. For purposes of this paragraph, reasonable evidence includes, but is not limited to, letters, pay stubs, or bank statements.

(2) The homeowner or resident is unable to comply with the requirements of any seven-day notice served by the management pursuant to subdivision (d) of Section 798.56 due to an inability to locate, obtain, hire, pay for, or arrange for any repairs, landscaping, lot maintenance or similar remediation to the homeowner or resident’s home or space due to COVID-19-imposed restrictions. For purposes of this paragraph, reasonable evidence is limited to a signed statement explaining why the impact of COVID-19 prevents the homeowner or resident from complying with the notice within seven (7) days.

(3) The homeowner or resident is unable to comply with a seven-day notice served by the management pursuant to subdivision (d) of Section 798.56 due to an inability to relocate any person or persons residing in the homeowner or resident’s mobilehome due to COVID-19-imposed restrictions. For purposes of this paragraph, reasonable evidence is limited to a signed statement explaining why the impact of COVID-19 prevents the homeowner or resident from complying with the notice within seven (7) days.

(l) It is the intent of the Legislature that the provisions of this bill shall not be interpreted to alter the meaning or application of Emergency Rule 1, adopted by the Judicial Council on April 6, 2020.

1. Report on the Economic Well-Being of U.S. Households in 2018 (May 2019) Board of Governors of the Federal Reserve System https://www.federalreserve.gov/publications/files/2018-report-economic-well-being-us-households-201905.pdf (as of May 17, 2020). ↑

2. Oreskes, Mass Unemployment Over Coronavirus Could Lead to a 45% Jump in Homelessness, Study Finds (May 14, 2020) Los Angeles Times https://www.latimes.com/homeless-housing/story/2020-05-14/coronavirus-unemployment-homeless-study-increase-45-percent (as of May 17, 2020). ↑