Existing law, the Mobilehome Parks Act (act), generally regulates various classifications of mobilehome and related vehicle parks, and imposes enforcement duties on the Department of Housing and Community Development and local enforcement agencies. The act authorizes any person to file an application with the governing body of a city or county for a conditional use permit for a mobilehome park. The act requires a person, before operating a mobilehome park, and each year thereafter, to obtain a valid permit from the enforcement agency in order to operate the park. The act also requires the owner of a mobilehome park to obtain a permit to create, move, shift, or alter park lot lines.

This bill would, subject to specified exceptions, authorize an owner of an existing mobilehome park that is subject to, or intends to qualify for, a valid permit to operate the park, to apply to the enforcement agency to add additional specified lots to the mobilehome park not to exceed 10% of the previously approved number of lots in the mobilehome park, if the owner has not had their permit to operate suspended. The bill would require the owner to apply to the enforcement agency for, and obtain from the enforcement agency, all required permits pursuant to the act before adding additional lots. The bill would exempt the additional lots from any business tax, local registration fee, use permit fee, or other fee, except those fees that apply to the existing lots in the park, and would prohibit the owner from reducing the size of, or interfering with, certain existing facilities without first complying with specified requirements for creating, moving, shifting, or altering lot lines. The bill would provide that the additional lots are considered new construction, as defined, except as provided, and specify how certain laws adopted by a city, county, or city and county that establish a maximum rent apply to additional lots.

Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects.

This bill would prohibit the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval in order to add the lots. By requiring a city or county to ministerially approve a project to add the mobilehome park lots described above, this bill would exempt those projects from CEQA.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing law, the Mobilehome Parks Act (act), generally regulates various classifications of mobilehome and related vehicle parks, and imposes enforcement duties on the Department of Housing and Community Development and local enforcement agencies. The act authorizes any person to file an application with the governing body of a city or county for a conditional use permit for a mobilehome park. The act requires a person, before operating a mobilehome park, and each year thereafter, to obtain a valid permit from the enforcement agency in order to operate the park. The act also requires the owner of a mobilehome park to obtain a permit to create, move, shift, or alter park lot lines.

This bill would, subject to specified exceptions, authorize an owner of an existing mobilehome park that is subject to, or intends to qualify for, a valid permit to operate the park, to apply to the enforcement agency to add additional specified lots to the mobilehome park not to exceed 10% of the previously approved number of lots in the mobilehome park, if the owner has not had their permit to operate suspended. The bill would require the owner to apply to the enforcement agency for, and obtain from the enforcement agency, all required permits pursuant to the act before adding additional lots. The bill would exempt the additional lots from any business tax, local registration fee, use permit fee, or other fee, except those fees that apply to the existing lots in the park, and would prohibit the owner from reducing the size of, or interfering with, certain existing facilities without first complying with specified requirements for creating, moving, shifting, or altering lot lines. The bill would provide that the additional lots are considered new construction, as defined, except as provided, and specify how certain laws adopted by a city, county, or city and county that establish a maximum rent apply to additional lots.

Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects.

This bill would prohibit the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval in order to add the lots. By requiring a city or county to ministerially approve a project to add the mobilehome park lots described above, this bill would exempt those projects from CEQA.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing law, the Mobilehome Parks Act (act), generally regulates various classifications of mobilehome and related vehicle parks, and imposes enforcement duties on the Department of Housing and Community Development and local enforcement agencies. The act authorizes any person to file an application with the governing body of a city or county for a conditional use permit for a mobilehome park. The act requires a person, before operating a mobilehome park, and each year thereafter, to obtain a valid permit from the enforcement agency in order to operate the park. The act also requires the owner of a mobilehome park to obtain a permit to create, move, shift, or alter park lot lines.

This bill would would, subject to specified exceptions, authorize an owner of an existing mobilehome park that is subject to, or intends to qualify for, a valid permit to operate the park, to apply to the enforcement agency to add additional specified lots to the mobilehome park not to exceed 10% of the previously approved number of lots in the mobilehome park, if the owner has not had their permit to operate suspended. The bill would require the owner to apply to the enforcement agency for, and obtain from the enforcement agency, all required permits pursuant to the act before adding additional lots. The bill would exempt the additional lots from any business tax, local registration fee, use permit fee, or other fee, except those fees that apply to the existing lots in the park, and would prohibit the owner from reducing the size of, or interfering with, certain existing facilities. facilities without first complying with specified requirements for creating, moving, shifting, or altering lot lines. The bill would provide that the additional lots are considered new construction, as defined, except as provided, and specify how certain laws adopted by a city, county, or city and county that establish a maximum rent apply to additional lots.

Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects.

This bill would prohibit the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval in order to add the lots. By requiring a city or county to ministerially approve a project to add the mobilehome park lots described above, this bill would exempt those projects from CEQA.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing law, the Mobilehome Parks Act (act), generally regulates various classifications of mobilehome and related vehicle parks, and imposes enforcement duties on the Department of Housing and Community Development and local enforcement agencies. The act authorizes any person to file an application with the governing body of a city or county for a conditional use permit for a mobilehome park. The act requires a person, before operating a mobilehome park, and each year thereafter, to obtain a valid permit from the enforcement agency in order to operate the park. The act also requires the owner of a mobilehome park to obtain a permit to create, move, shift, or alter park lot lines.

This bill would authorize an owner of an existing mobilehome park that is subject to, or intends to qualify for, a valid permit to operate the park, to apply to the enforcement agency to add additional specified lots to the mobilehome park not to exceed 10% of the previously approved number of lots in the mobilehome park, if the owner has not had their permit to operate suspended. The bill would require the owner to apply to the enforcement agency for, and obtain from the enforcement agency, all required permits pursuant to the act before adding additional lots. The bill would exempt the additional lots from any business tax, local registration fee, use permit fee, or other fee, except those fees that apply to the existing lots in the park, and would prohibit the owner from reducing the size of, or interfering with, certain existing facilities.

Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects.

This bill would prohibit the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval in order to add the lots. By requiring a city or county to ministerially approve a project to add the mobilehome park lots described above, this bill would exempt those projects from CEQA.

Existing law, the Mobilehome Parks Act (act), generally regulates various classifications of mobilehome and related vehicle parks, and imposes enforcement duties on the Department of Housing and Community Development and local enforcement agencies. The act authorizes any person to file an application with the governing body of a city or county for a conditional use permit for a mobilehome park. The act requires a person, before operating a mobilehome park, and each year thereafter, to obtain a valid permit from the enforcement agency in order to operate the park. The act also requires the owner of a mobilehome park to obtain a permit to create, move, shift, or alter park lot lines.

This bill would authorize an owner of an existing mobilehome park that is subject to, or intends to qualify for, a valid permit to operate the park, to apply to the enforcement agency to add additional specified lots to the mobilehome park not to exceed 10% of the previously approved number of lots in the mobilehome park, if the owner has not had their permit to operate suspended. The bill would require the owner to apply to the enforcement agency for, and obtain from the enforcement agency, all required permits pursuant to the act before adding additional lots. The bill would exempt the additional lots from any business tax, local registration fee, use permit fee, or other fee, except those fees that apply to the existing lots in the park, and would prohibit the owner from reducing the size of, or interfering with, certain existing facilities.

Existing law, the California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects.

This bill would prohibit the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval in order to add the lots. By requiring a city or county to ministerially approve a project to add the mobilehome park lots described above, this bill would exempt those projects from CEQA.

 THIRD READING  

Bill No: AB 2387

Author: Pellerin (D)

Amended: 5/16/24 in Assembly

Vote: 21

SENATE HOUSING COMMITTEE: 10-0, 6/18/24

AYES: Skinner, Ochoa Bogh, Blakespear, Caballero, Cortese, Menjivar, Padilla, Seyarto, Umberg, Wahab

SENATE LOCAL GOVERNMENT COMMITTEE: 7-0, 6/26/24

AYES: Durazo, Seyarto, Dahle, Glazer, Skinner, Wahab, Wiener

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

ASSEMBLY FLOOR: 69-0, 5/22/24 - See last page for vote

SUBJECT: Mobilehome parks: additional lots: exemption from additional fees or charges

SOURCE: California Manufactured Housing Institute

DIGEST:

This bill creates a streamlined permitting process for a mobilehome park owner to add lots to a park, not to exceed 10% of the previously approved number of lots in the park.

ANALYSIS:

Existing law:

1. Defines “manufactured home” to mean a structure that was constructed on or after June 15, 1976, is transportable in one or more sections, is eight body feet or more in width, or 40 body feet or more in length in traveling mode, is built on a permanent chassis and designed to be used as a single-family dwelling with or without a foundation when connected to the required utilities.”
2. Defines “mobilehome” to mean a structure identical to 1) that was constructed prior to June 15, 1976.
3. Defines “multifamily manufactured home” to mean a structure transportable under permit in one or more sections that is designed and equipped to contain two dwelling units, or is designed to be used with a foundation system for three or more dwelling units.
4. Declares it to be unlawful for any person to do any of the following unless they have a valid permit issued by an enforcement agency:
   1. Construct a mobilehome park;
   2. Construct additional buildings or lots, or alter buildings, lots, or other installations in an existing park;
   3. Operate, occupy, rent, lease, sublease, let out, or hire out for occupancy any lot in a park that has been constructed, reconstructed, or altered without having obtain a permit; or
   4. Operate a park or any portion thereof.
5. Requires HCD to issue an operating permit following notification by the local enforcement agency of completion of construction of a new park or additional lots to an existing park. In approving the application for an operating permit, the local enforcement agency authorizes occupancy of the newly constructed facilities.
6. Requires the enforcement agency to issue an operating permit for a 12-month period, and forward a copy of each operating permit to HCD. Prohibits an operating permit from being issued for a park where the previous operating permit has been suspended by the enforcement agency until the violations, which were the basis for the suspension, have been corrected.
7. Authorizes an enforcement agency to suspend the operating permit of any person who violates the permit or the Mobilehome Parks Act (MPA), subject to specified notice, timeline, and due process hearing requirements.

This bill:

1. Authorizes the owner of an existing mobilehome park to add the following types of lots to the park, not to exceed 10% of the previously approved number of lots in the park:
   1. A lot for a single-family manufactured home; or
   2. A multifamily manufactured home, on a lot previously occupied by a single-family mobilehome or manufactured home; or
   3. Any combination of (a) and (b).
2. Provides that a lot occupied by a multifamily manufactured home shall not be considered new construction for purposes of local rent control ordinances under existing law.
3. Provides that the conversion of a portion of single-family manufactured home lots into multifamily manufactured home lots shall not be the basis for closing or converting that portion of the park into another use, or for terminating the tenancy of a park resident to facilitate the change of use of the park, or of any portion of the park.
4. Requires a mobilehome park owner, prior to adding any lot, to obtain from the enforcement agency all required permits necessary to increase park occupancy and, upon approval from the enforcement agency, to complete all necessary processes to update the operating permit for the park.
5. Requires the enforcement agency, prior to issuing the permits, to require all reasonable information to ensure that the additional lots do not substantially impact the provision of services to the existing or new lots, including water, sewage, electrical, gas, and other utilities. Authorizes the enforcement agency to require evidence of compliance with all local health, utility, and fire requirements as it deems necessary.
6. Provides that lots added to a mobilehome park pursuant to this bill shall not be subject to any business tax, local registration fee, use permit fee, or other fee, other than those that are applicable to existing lots in the park.
7. Authorizes a local agency to impose local property taxes, fees for water and sewer services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments that apply to the existing lots in the park.
8. Provides that lots added to mobilehome parks under this bill shall be deemed to comply with zoning and land use approvals of the existing mobilehome park, including any special use permit and prohibits the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval for any lots added pursuant to this bill.
9. Prohibits a mobilehome park owner, in adding lots pursuant to this bill, from reducing the size of, or otherwise interfering with, any in-use pools, dog parks, clubhouses, playgrounds, sports facilities, exercise rooms, libraries, boat or recreational vehicle storage, laundry facilities, community meeting spaces, or any existing occupied mobilehome spaces without first complying with existing law requirements for creating, moving, shifting, or altering lot lines.
10. Provides that a lot added to a mobilehome park pursuant to this bill shall be considered new construction for purposes of local rent control ordinances under existing law.
11. Provides that a lot added to a mobilehome park pursuant to this bill shall not increase, revise, or change the number or percentage of lots within the park which are deemed to be, and shall not cause any existing lots within the park to become, exempt from any local rent control ordinances.
12. Excludes mobilehome parks located in specified areas of the coastal zone from this bill.

Background

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

Mobilehome Parks Act (MPA). The MPA requires HCD to regulate mobilehome parks to assure protection of the health, safety, and general welfare of all mobilehome park residents. Local agencies have the option of assuming enforcement authority of the MPA within their jurisdiction through agreement with HCD. Enforcement duties include performing health and safety inspections of parks. The MPA also requires each mobilehome park to pay an annual fee, and obtain a permit to operate, from either HCD or the local enforcement agency. Operating permits are valid for one year and the enforcement agency has the ability to suspend an operating permit in the event of substandard conditions at the park or other violations of the MPA.

Local Land Use Approvals. The permits required by HCD (e.g., construction, alteration, electrical, or operating permits) are distinct from the local government’s land use permits or zoning approvals for the park site or expansion, referenced in the first bullet above. The California Constitution provides cities and counties the authority to regulate behavior to preserve the health, safety, and welfare of the public. This provision – commonly called the police power – gives cities and counties broad authority to regulate land use and other matters, provided that the local policy is “not in conflict with general laws.”

Cities and counties use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. Through this authority, they can zone for residential, commercial, industrial, or other areas at specific intensities, and can even zone areas where they specifically designate mobilehome parks may be built or operate. For example, the County of San Mateo in 2017 adopted a “Mobilehome Park Zoning District” ordinance to govern how and where mobilehome parks can exist and to change the general plan land use designation of six existing parks already operating in the county. Prior to the adoption of the county ordinance, those six existing parks had various general plan land use designations ranging from “High Density Residential” to “General Industrial” to “Industrial Mixed Use” and others, and their zoning was largely commercial.

The practice of zoning special mobilehome park areas is relatively uncommon, so new parks in areas zoned for other uses would require a discretionary rezone, zoning variance, conditional use permit (CUP), and/or a special use permit from the local government. This is also the case in instances where an existing park wants to add spaces but does not conform to the existing land use designation or zoning (i.e., the park has been granted permission to operate via a zoning variance or CUP, or the zoning ordinance conforms to the existing use but with specific intensity restrictions or other requirements). Like most new development, the local government also often requires the owner to pay development impact fees on the new proposed spaces, which in one example provided by the bill’s supporters, equals $50,000 per new space.

Comments

1. Author statement. According to author. “Mobilehome parks provide hundreds of thousands of housing units, often at more affordable prices than other options. However, in some areas local permitting processes and excessive fees charged for adding spaces in existing mobilehome parks—which can reach the tens of thousands of dollars per space being added – make mobilehomes cost-prohibitive. These disincentives make it far less likely that the potential for mobilehome parks to assist in increasing the state’s housing stock will be realized. AB 2387 allows California’s existing mobilehome park owners to apply to add no more than 10% of the previously approved number of spaces in the mobilehome park for manufactured homes. As was done with ADUs, adding a limited number of spaces to existing mobilehome parks will help increase California’s housing supply on existing residential property.”

1. New, streamlined process. This bill creates a streamlined process to allow an owner of an existing mobilehome park to increase the number of lots by 10% without a CUP or zoning variance. Prior to any expansion, the park owner would have to demonstrate to HCD or the local enforcement agency that the additional spaces would not substantially impact the provision of water, sewer, electrical, or other utility services to the existing park residents or to the new spaces. The park owner would also have to obtain all required permits from the enforcement agency, and update its operating permit, prior to adding any lot. Local agencies would be allowed to impose local property taxes, fees for utility services, inspection fees, and other assessments that generally apply to the existing spaces in the park, but would be prohibited from charging any new or additional impact or permit fees for the additional spaces.
2. Rent control provisions. Many rent control laws, both state and local, include an exception for newly constructed housing; this helps ensure that developers will not be discouraged from building new rental housing units for fear of rent control limiting the return they can get for their investment. Existing law provides that local rent control ordinances do not apply to new spaces in mobilehome parks that are first held out for rent after January 1, 1990, for the first 15 years; in addition, local rent control ordinances do not apply to any spaces in mobilehome parks established on or after January 1, 2023, for the first 15 years after at least half the spaces in the park are initially held out for rent. This bill protects existing rent-controlled lots by providing that if a single-family mobilehome or manufactured home on a rent-controlled lot is replaced with a multifamily manufactured home, the lot would remain rent-controlled; in addition, newly added lots would not affect the rent-controlled status of existing lots. This bill incentivizes park owners to add lots by exempting added lots from rent control for 15 years.
3. Additional park resident protections. In addition to rent control protections, this bill requires a mobilehome park owner to comply with existing law requirements for creating, moving, shifting, or altering lot lines before attempting to reduce the size of or otherwise interfere with existing facilities such as pools, clubhouses, or existing occupied mobilehome spaces.
4. Coastal zone exemption. This bill does not apply to mobilehome parks in certain areas of the coastal zone. Specifically, it does not apply to parks located in areas between the sea and the first public road paralleling the sea or within 300 feet of the inland extent of any beach or of the mean high tideline of the sea where there is no beach, whichever is the greater distance. It also exempts environmentally sensitive areas. The author states that these exemptions address concerns about mobilehome park expansions that could potentially negatively impact sensitive areas, such as forested areas and near estuaries.
5. Trying again. AB 1334 (Pellerin, 2023), which was held on suspense in the Senate Appropriations Committee last year, was similar but not identical to this bill. Most notably, it did not include the provisions outlined in 6) and 7) above.

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

According to the Senate Appropriations Committee:

• The Department of Housing and Community Development (HCD) estimates ongoing costs of approximately $189,000 annually for 1.0 PY of staff. This position would initially be responsible for amending regulations, conducting outreach, and supporting and defining requirements for necessary enhancements to IT systems, while ongoing administrative workload would include responding to requests for technical assistance and processing amendments to existing operating permits to account for the addition of new lots to mobilehome parks. (General Fund)
• HCD estimates additional one-time contract costs of approximately $200,000 to enhance online services and update IT systems to allow for electronic submission of operating permits, renewals, and new application types. Staff notes that it is unclear whether these contract costs for specified IT changes would be directly attributable to the bill’s requirements, and any department requests for additional resources must be approved through the annual budget process. (General Fund)

SUPPORT: (Verified 8/15/24)

California Manufactured Housing Institute (source)

Golden State Manufactured-home Owners League Inc.
Western Manufactured Housing Communities Association

OPPOSITION: (Verified 8/15/24)

None received

ASSEMBLY FLOOR: 69-0, 5/22/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Boerner, Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Gallagher, Holden, Mathis, Joe Patterson, Luz Rivas

Prepared by: Max Ladow / HOUSING / (916) 651-4124

8/19/24 18:33:39

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 2387 (Pellerin) - Mobilehome parks: additional lots: exemption from additional fees or charges

Bill Summary:

AB 2387 would authorize the owner of an existing mobilehome park to add new lots to the park, not to exceed 10% of the previously approved number of lots, under a streamlined process and without paying certain fees, if specified conditions are met.

Fiscal Impact:

• The Department of Housing and Community Development (HCD) estimates ongoing costs of approximately $189,000 annually for 1.0 PY of staff. This position would initially be responsible for amending regulations, conducting outreach, and supporting and defining requirements for necessary enhancements to IT systems, while ongoing administrative workload would include responding to requests for technical assistance and processing amendments to existing operating permits to account for the addition of new lots to mobilehome parks. (General Fund)
  
• HCD estimates additional one-time contract costs of approximately $200,000 to enhance online services and update IT systems to allow for electronic submission of operating permits, renewals, and new application types. Staff notes that it is unclear whether these contract costs for specified IT changes would be directly attributable to the bill’s requirements, and any department requests for additional resources must be approved through the annual budget process. (General Fund)

Background:

Existing law, the Mobilehome Parks Act (MPA) and Special Occupancy Parks Act (SOPA), specify requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks and special occupancy parks (SOPs, such as RV parks). HCD is responsible for developing regulations and enforcing statutory requirements to ensure the health and safety of residents of these occupancies. Enforcement actions include necessary inspections, permit issuance, and complaint response activities. With HCD’s approval, a city or county can assume enforcement responsibilities of the MPA and SOPA, as well as related regulations, within its jurisdiction. There are currently 4,471 mobilehome parks in the state that contain 362,731 active lots. HCD has enforcement responsibility over 81.6 percent of the parks and 75.7 percent of the individual lots; 56 local enforcement agencies have enforcement responsibilities over the remaining parks and lots. Under the MPA, the owners of mobilehome parks pay an annual fee and obtain a permit to operate from either HCD or the local enforcement agency, and enforcement agencies may suspend an operating permit in the event of substandard conditions at the park, or other MPA violations. Park owners must also obtain permits from enforcement agencies for construction or alterations of a mobilehome park. These permits are separate and distinct from permits that must be obtained from cities and counties for development within a local jurisdiction.

Cities and counties enact zoning ordinances that shape development, and typically zone land for residential, commercial, industrial, or other uses at specific intensities. The practice of zoning special mobilehome park areas, however, is relatively uncommon. Oftentimes, new parks are proposed in areas zoned for other uses and require a discretionary rezone, zoning variance, conditional use permit (CUP), or a special use permit from the local government. This process also typically applies when a park owner wants to add lots in an existing park that does not conform to the existing land use designation or zoning and, thus, has a zoning variance or CUP. Like most new development projects, a local government may also require a park owner to pay development impact fees on the new proposed lots

Proposed Law:

AB 1334 would authorize the owner of an existing mobilehome park to add up to 10% more lots to the park under a streamlined process and without paying certain fees. Specifically, this bill would:

• Authorize the owner of an existing mobilehome park that is subject to a permit to operate under the Mobilehome Parks Act (MPA), and that permit is not suspended, to add lots to the park (for either a new single-family manufactured home, or a multifamily manufactured home on a lot previously occupied by a single-family mobilehome, or a combination of those lots), not to exceed 10% of the previously approved number of lots in the mobilehome park, as specified.
• Specify that a lot occupied by a multifamily manufactured home is not considered new construction for purposes of local rent control ordinances. In addition, conversion of a portion of single-family mobilehome lots into multifamily manufactured home lots must not be used as the basis for closing or converting that portion of the park into another use, or for terminating any tenancy of a park resident to facilitate the change of use of the park, or of any portion of the park.
• Require the owner of the park, prior to adding any lots, to apply to the enforcement agency for all permits required by the MPA to increase occupancy of the park.
• Require the enforcement agency, before issuing the permits, to require information to ensure that the additional lots do not substantially impact the provision of services to the existing or new spaces, including water, sewage, electrical, gas, and other utilities, as specified.
• Require the owner of the park to complete all necessary processes with the enforcement agency to update their permit to operate, upon approval from the enforcement agency.
• Exempt the new lots from any business tax, local registration fee, use permit fee, or other fee, except those that are applicable to existing lots in the park.
• Authorize a local agency to impose local property taxes, fees for water and sewer services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments that apply to existing lots.
• Deem the new lots to be compliant with the zoning and land use approvals of the existing mobilehome park, including any special use permit, and specify that, for purposes of local ordinances, added lots would not be deemed a use that differs from the park’s existing land use approvals.
• Prohibit the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval for any added lots.
• Prohibit a mobilehome park owner, when adding lots pursuant to this bill, from reducing the size of, or interfering with, specified shared spaces, or any existing occupies lots without first complying with specified requirements for creating, moving, shifting, or altering lot lines.
• Require lots added pursuant to the bill to be considered new construction for purposes of local rent control ordinances, and specify that lots added must not increase, revise, or change the number or percentage of lots within the park with respect to exemptions from local rent control ordinances, as specified.
• Exclude mobilehome parks located in specified areas of the coastal zone from the authority provided by this bill.

Related Legislation:

AB 1334 (Pellerin), which was held on this Committee’s Suspense File last year, was substantially similar to this bill.

-- END --

SENATE COMMITTEE ON LOCAL GOVERNMENT

Senator María Elena Durazo, Chair

2023 - 2024 Regular

Mobilehome parks: additional lots: exemption from additional fees or charges

Creates a streamlined permitting process to allow a mobilehome park owner to add lots to a park.

Background

Mobilehomes in California. More than 700,000 people live in California's approximately 4,700 mobilehome parks, though the term “mobile” is a bit of a misnomer since the cost to move a home can range from $2,000 to $20,000. A mobilehome owner whose home is located in a mobilehome park only owns the home itself, not the land the unit sits on, and must pay rent and fees for the land and any community spaces.

Mobilehome Parks Act (MPA). The MPA requires the state’s Housing & Community Development Department (HCD) to regulate mobilehome parks to ensure the health, safety, and general welfare of all mobilehome park residents are protected. Local agencies can take over enforcement of the MPA within their jurisdiction, making them responsible for performing health and safety inspections of parks. The MPA also requires each mobilehome park to pay an annual fee to either HCD or the local enforcement agency to get a permit to operate. The permits are valid for one year and the enforcement agency can suspend an operating permit if it discovers substandard conditions at the park or other violations of the MPA.

Local land use approvals. The permits required by HCD (e.g., construction, alteration, electrical, or operating permits) are distinct from the local government’s land use permits or zoning approvals for the park site or expansion, referenced above. The California Constitution provides cities and counties the authority to regulate behavior to preserve the health, safety, and welfare of the public. This provision – commonly called the police power – gives cities and counties broad authority to regulate land use and other matters, provided that the local policy is “not in conflict with general laws.”

Cities and counties use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. Through this authority, they can zone for residential, commercial, industrial, or other areas at specific intensities, and can even zone areas where they specifically designate mobilehome parks may be built or operate. For example, San Mateo County adopted a “Mobilehome Park Zoning District” ordinance in 2017 to govern how and where mobilehome parks can exist and to change the general plan land use designation of six parks operating in the county. Prior to the ordinance, those six parks had various general plan land use designations ranging from “High Density Residential” to “General Industrial” to “Industrial Mixed Use” and others, and their zoning was largely commercial.

The practice of zoning special mobilehome park areas is relatively uncommon, so new parks in areas zoned for other uses would require a discretionary rezone, zoning variance, conditional use permit (CUP), and/or a special use permit from the local government. This is also the case in instances where an existing park wants to add spaces but does not conform to the existing land use designation or zoning (i.e., the park has been granted permission to operate via a zoning variance or CUP, or the zoning ordinance conforms to the existing use but with specific intensity restrictions or other requirements). Like most new development, the local government also often requires the owner to pay development impact fees on the new proposed spaces, which in one example provided by the bill’s supporters, equals $50,000 per new space.

The author wants to create a streamlined process to allow mobilehome park owners to more easily add lots to a park if certain conditions are met.

Proposed Law

Assembly Bill 2387 creates a streamlined permitting process to allow a mobilehome park owner to add lots to a park. Specifically, AB 2387 authorizes the owner of an existing mobilehome park to add two types of lots to the park, not to exceed 10% of the previously approved number of lots in the park:

• A lot for a single-family manufactured home; or
• A multifamily manufactured home, on a lot previously occupied by a single-family mobilehome or manufactured home; or
• Any combination of those two.

AB 2387 specifies the treatment of new lots for the purposes of local zoning and rent control ordinances. A lot occupied by a multifamily manufactured home is not considered new construction for purposes of local rent control ordinances under existing law. A lot added to a mobilehome park pursuant to this bill does not alter the number or percentage of lots within the park which are exempt from any local rent control ordinances. However, a lot added to a mobilehome park pursuant to this bill must be considered new construction for purposes of local rent control ordinances. Converting of a portion of single-family manufactured home lots into multifamily manufactured home lots cannot be used as a basis for closing or converting that portion of the park into another use, or for terminating the tenancy of a park resident to facilitate the change of use of the park, or of any portion of the park.

Lots added to a mobilehome park pursuant to this bill are not subject to any business tax, local registration fee, use permit fee, or other fee, other than those applicable to existing lots in the park. Finally, lots added to mobilehome parks under this bill must comply with the zoning and land use approvals of the existing mobilehome park, and the enforcement agency, city, or county is precluded from requiring a CUP, a zoning variance, or other zoning approval for any lots added pursuant to this bill.

AB 2387 requires a mobilehome park owner, prior to adding any lot, to obtain all of the required permits and update the park’s operating permit. An enforcement agency, prior to issuing the permits, must ensure the additional lots do not substantially impact the ability to provide water, sewage, electrical, gas, and other utility services to all of the residents.

A local agency can impose local property taxes, fees for water and sewer services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments that apply to the existing lots in the park.

AB 2387 prohibits a mobilehome park owner, when adding lots pursuant to this bill, from reducing the size of various onsite shared areas without first complying with existing law requirements for creating, moving, shifting, or altering lot lines. Those shared areas include:

• In-use pools;
• Dog parks;
• Clubhouses;
• Playgrounds;
• Sports facilities;
• Exercise rooms;
• Libraries;
• Boat or recreational vehicle storage;
• Laundry facilities;
• Community meeting spaces; or
• Any existing occupied mobilehome spaces.

AB 2387 excludes mobilehome parks located in specified areas of the coastal zone from this bill.

Comments

1. Purpose of the bill. According to the author, “Mobilehome parks provide hundreds of thousands of housing units, often at more affordable prices than other options. However, in some areas local permitting processes and excessive fees charged for adding spaces in existing mobilehome parks—which can reach the tens of thousands of dollars per space being added—make mobilehomes cost-prohibitive. These disincentives make it far less likely that the potential for mobilehome parks to assist in increasing the state’s housing stock will be realized.

“AB 2387 allows California’s existing mobilehome park owners to apply to add no more than 10% of the previously approved number of spaces in the mobilehome park for manufactured homes. As was done with ADUs, adding a limited number of spaces to existing mobilehome parks will help increase California’s housing supply on existing residential property.”

2. New, improved, and streamlined. This bill creates a streamlined process to allow an owner of an existing mobilehome park to increase the number of lots by 10% without needing to get a CUP or zoning variance.

Prior to any expansion, the park owner would have to demonstrate to HCD or the local enforcement agency that the additional spaces would not substantially impact the provision of water, sewer, electrical, or other utility services to the existing park residents or to the new spaces. The park owner would also have to obtain all required permits from the enforcement agency, and update its operating permit, prior to adding any lot.

Local agencies would be allowed to impose local property taxes, fees for utility services, inspection fees, and other assessments that generally apply to the existing spaces in the park, but would be prohibited from charging any new or additional impact or permit fees for the additional spaces.

The sponsor of this bill, the California Manufactured Housing Institute, states removing the administrative burdens and fees tied to local permitting processes will incentivize park owners to add more lots to existing parks, thereby helping to add mobilehomes and manufactured homes – which are often more affordable than other forms of housing – to the state’s scarce housing supply.

3. Rent control provisions. Many rent control laws include an exception for newly constructed housing to try and ensure developers aren’t discouraged from building new rental housing units because their ability to get a return on their investment would be limited.

Existing law provides local rent control ordinances don’t apply to:

• New spaces in mobilehome parks first held out for rent after January 1, 1990, for the first 15 years or to any spaces in mobilehome parks established on;
• After January 1, 2023, for the first 15 years after at least half the spaces in the park are initially available for rent.

This bill protects existing rent-controlled lots by providing that if a single-family mobilehome or manufactured home on a rent-controlled lot is replaced with a multifamily manufactured home, the lot would remain rent-controlled. Furthermore, newly added lots would not affect the rent-controlled status of existing lots and the bill incentivizes park owners to add lots by exempting those newly-added lots from rent control for 15 years.

4. Other protections. Beyond the rent control protections, AB 2387 requires a mobilehome park owner to comply with existing law requirements for creating, moving, shifting, or altering lot lines before attempting to reduce the size of or otherwise interfere with existing facilities such as pools, clubhouses, or existing occupied mobilehome spaces. These require a park owner to obtain written authorization from the registered owner or owners of the mobilehome or manufactured home located on the affected lot or lots, and must submit a written application to the enforcement agency for a lot line alteration permit.

5. Different rules for coastal areas. This bill does not apply to mobilehome parks in certain areas of the coastal zone. Specifically, parks will not be able to utilize this measure to add additional spaces if they are located:

• Between the sea and the first public road paralleling the sea or within 300 feet of the inland extent of any beach or of the mean high tideline of the sea where there is no beach, whichever is the greater distance; or
• On tidelands, submerged lands, public trust lands, within 100 feet of any wetland, estuary, or stream, or within 300 feet of the top of the seaward face of any coastal bluff.

6. And justice for all … The measure includes findings and declarations that streamlining the ability to add new mobilehome lots in existing parks is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

7. You look so familiar, do you have an older sibling? AB 1334 (Pellerin, 2023) was very similar, though not identical to this bill. Most notably, AB 1334 did not include the 15-year exemption from rent control or the requirement for park owners to comply with requirements for creating, moving, shifting, or altering lot lines before attempting to reduce the size of existing facilities such as pools, clubhouses, or existing occupied mobilehome spaces. AB 1334 was held on the Senate Appropriations Committee’s suspense file last year.

8. Second verse, similar to the first. The Senate Rules Committee has double-referred this measure, first to the Senate Housing Committee, where it was approved on June 18, 2024, on a 10-0 vote and second to the Senate Local Government Committee.

Assembly Actions

Assembly Housing & Community Development Committee: 9-0

Assembly Appropriations Committee: 11-0

Assembly Floor: 69-0

Support and Opposition

(6/21/24)

Support: California Manufactured Housing Institute (Sponsor)
Golden State Manufactured-home Owners League, Inc. (GSMOL)
Western Manufactured Housing Communities Association

Opposition: Bay Federal Credit Union
City of Watsonville
Senior Legal Services

-- END --

SENATE COMMITTEE ON HOUSING

Senator Nancy Skinner, Chair

2023 - 2024 Regular

Bill No: AB 2387 Hearing Date: 6/18/2024

SUBJECT: Mobilehome parks: additional lots: exemption from additional fees or charges

DIGEST: This bill creates a streamlined permitting process for a mobilehome park owner to add lots to a park, not to exceed 10% of the previously approved number of lots in the park.

ANALYSIS:

Existing law:

1. Defines “manufactured home” to mean a structure that was constructed on or after June 15, 1976, is transportable in one or more sections, is eight body feet or more in width, or 40 body feet or more in length in traveling mode, is built on a permanent chassis and designed to be used as a single-family dwelling with or without a foundation when connected to the required utilities.”
2. Defines “mobilehome” to mean a structure identical to 1) that was constructed prior to June 15, 1976.
3. Defines “multifamily manufactured home” to mean a structure transportable under permit in one or more sections that is designed and equipped to contain two dwelling units, or is designed to be used with a foundation system for three or more dwelling units.
4. Declares it to be unlawful for any person to do any of the following unless they have a valid permit issued by an enforcement agency:
   1. Construct a mobilehome park;
   2. Construct additional buildings or lots, or alter buildings, lots, or other installations in an existing park;
   3. Operate, occupy, rent, lease, sublease, let out, or hire out for occupancy any lot in a park that has been constructed, reconstructed, or altered without having obtain a permit; or
   4. Operate a park or any portion thereof.
5. Requires an application for a construction permit to be accompanied by a description of the grounds, plans, and specifications of the proposed construction, a description of the water supply and sewage, appropriate fees, and evidence of compliance with all valid local planning, health, utility, and fire requirements.
6. Requires the Department of Housing and Community Development (HCD) to establish a schedule of fees relating to all construction, mechanical, electrical, plumbing, and installation permits, which must be paid to the enforcement agency. Requires these fees to be reasonably consistent with specified building codes.
7. Requires HCD to issue an operating permit following notification by the local enforcement agency of completion of construction of a new park or additional lots to an existing park. In approving the application for an operating permit, the local enforcement agency authorizes occupancy of the newly constructed facilities.
8. Requires the enforcement agency to issue an operating permit for a 12-month period, and forward a copy of each operating permit to HCD. Prohibits an operating permit from being issued for a park where the previous operating permit has been suspended by the enforcement agency until the violations, which were the basis for the suspension, have been corrected.
9. Authorizes an enforcement agency to suspend the operating permit of any person who violates the permit or the Mobilehome Parks Act (MPA), subject to specified notice, timeline, and due process hearing requirements.

This bill:

1. Authorizes the owner of an existing mobilehome park to add the following types of lots to the park, not to exceed 10% of the previously approved number of lots in the park:
   1. A lot for a single-family manufactured home; or
   2. A multifamily manufactured home, on a lot previously occupied by a single-family mobilehome or manufactured home; or
   3. Any combination of (a) and (b).
2. Provides that a lot occupied by a multifamily manufactured home shall not be considered new construction for purposes of local rent control ordinances under existing law.
3. Provides that the conversion of a portion of single-family manufactured home lots into multifamily manufactured home lots shall not be the basis for closing or converting that portion of the park into another use, or for terminating the tenancy of a park resident to facilitate the change of use of the park, or of any portion of the park.
4. Requires a mobilehome park owner, prior to adding any lot, to obtain from the enforcement agency all required permits necessary to increase park occupancy and, upon approval from the enforcement agency, to complete all necessary processes to update the operating permit for the park.
5. Requires the enforcement agency, prior to issuing the permits, to require all reasonable information to ensure that the additional lots do not substantially impact the provision of services to the existing or new lots, including water, sewage, electrical, gas, and other utilities. Authorizes the enforcement agency to require evidence of compliance with all local health, utility, and fire requirements as it deems necessary.
6. Provides that lots added to a mobilehome park pursuant to this bill shall not be subject to any business tax, local registration fee, use permit fee, or other fee, other than those that are applicable to existing lots in the park.
7. Authorizes a local agency to impose local property taxes, fees for water and sewer services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments that apply to the existing lots in the park.
8. Provides that lots added to mobilehome parks under this bill shall be deemed to comply with zoning and land use approvals of the existing mobilehome park, including any special use permit and prohibits the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval for any lots added pursuant to this bill.
9. Prohibits a mobilehome park owner, in adding lots pursuant to this bill, from reducing the size of, or otherwise interfering with, any in-use pools, dog parks, clubhouses, playgrounds, sports facilities, exercise rooms, libraries, boat or recreational vehicle storage, laundry facilities, community meeting spaces, or any existing occupied mobilehome spaces without first complying with existing law requirements for creating, moving, shifting, or altering lot lines.
10. Provides that a lot added to a mobilehome park pursuant to this bill shall be considered new construction for purposes of local rent control ordinances under existing law.
11. Provides that a lot added to a mobilehome park pursuant to this bill shall not increase, revise, or change the number or percentage of lots within the park which are deemed to be, and shall not cause any existing lots within the park to become, exempt from any local rent control ordinances.
12. Excludes mobilehome parks located in specified areas of the coastal zone from this bill.

COMMENTS:

1. Author statement. “Mobilehome parks provide hundreds of thousands of housing units, often at more affordable prices than other options. However, in some areas local permitting processes and excessive fees charged for adding spaces in existing mobilehome parks—which can reach the tens of thousands of dollars per space being added – make mobilehomes cost-prohibitive. These disincentives make it far less likely that the potential for mobilehome parks to assist in increasing the state’s housing stock will be realized. AB 2387 allows California’s existing mobilehome park owners to apply to add no more than 10% of the previously approved number of spaces in the mobilehome park for manufactured homes. As was done with ADUs, adding a limited number of spaces to existing mobilehome parks will help increase California’s housing supply on existing residential property.”
2. Background. More than 700,000 people live in California's approximately 4,700 mobilehome parks. Mobilehomes are not truly mobile because it is often cost prohibitive to relocate them. The cost to move a mobilehome ranges from $2,000 to upwards of $20,000, depending on the size of the home and the distance traveled. A mobilehome owner whose home is located in a mobilehome park does not own the land the unit sits on, and must pay rent and fees for the land and any community spaces.
3. Mobilehome Parks Act (MPA). The MPA requires HCD to regulate mobilehome parks to assure protection of the health, safety, and general welfare of all mobilehome park residents. Local agencies have the option of assuming enforcement authority of the MPA within their jurisdiction through agreement with HCD. Enforcement duties include performing health and safety inspections of parks. The MPA also requires each mobilehome park to pay an annual fee, and obtain a permit to operate, from either HCD or the local enforcement agency. Operating permits are valid for one year and the enforcement agency has the ability to suspend an operating permit in the event of substandard conditions at the park or other violations of the MPA. HCD’s website lays out the required steps a park owner must take when seeking either to construct a new mobilehome park or to construct additional spaces or facilities within an existing park.
4. Local Land Use Approvals. The permits required by HCD (e.g., construction, alteration, electrical, or operating permits) are distinct from the local government’s land use permits or zoning approvals for the park site or expansion, referenced in the first bullet above. The California Constitution provides cities and counties the authority to regulate behavior to preserve the health, safety, and welfare of the public. This provision – commonly called the police power – gives cities and counties broad authority to regulate land use and other matters, provided that the local policy is “not in conflict with general laws.”

Cities and counties use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. Through this authority, they can zone for residential, commercial, industrial, or other areas at specific intensities, and can even zone areas where they specifically designate mobilehome parks may be built or operate. For example, the County of San Mateo in 2017 adopted a “Mobilehome Park Zoning District” ordinance to govern how and where mobilehome parks can exist and to change the general plan land use designation of six existing parks already operating in the county. Prior to the adoption of the county ordinance, those six existing parks had various general plan land use designations ranging from “High Density Residential” to “General Industrial” to “Industrial Mixed Use” and others, and their zoning was largely commercial.

The practice of zoning special mobilehome park areas is relatively uncommon, so new parks in areas zoned for other uses would require a discretionary rezone, zoning variance, conditional use permit (CUP), and/or a special use permit from the local government. This is also the case in instances where an existing park wants to add spaces but does not conform to the existing land use designation or zoning (i.e., the park has been granted permission to operate via a zoning variance or CUP, or the zoning ordinance conforms to the existing use but with specific intensity restrictions or other requirements). Like most new development, the local government also often requires the owner to pay development impact fees on the new proposed spaces, which in one example provided by the bill’s supporters, equals $50,000 per new space.

1. New, streamlined process. This bill would create a streamlined process to allow an owner of an existing mobilehome park to increase the number of lots by 10% without a CUP or zoning variance. Prior to any expansion, the park owner would have to demonstrate to HCD or the local enforcement agency that the additional spaces would not substantially impact the provision of water, sewer, electrical, or other utility services to the existing park residents or to the new spaces. The park owner would also have to obtain all required permits from the enforcement agency, and update its operating permit, prior to adding any lot. Local agencies would be allowed to impose local property taxes, fees for utility services, inspection fees, and other assessments that generally apply to the existing spaces in the park, but would be prohibited from charging any new or additional impact or permit fees for the additional spaces. The sponsor of this bill, the California Manufactured Housing Institute, states that by removing the administrative burdens and fees tied to local permitting processes, this bill will help incentivize park owners to add more lots to existing parks, thereby helping add mobilehomes and manufactured homes – which are often more affordable than other forms of housing – to the state’s scarce housing supply.
2. Rent control provisions. Many rent control laws, both state and local, include an exception for newly constructed housing; this helps ensure that developers will not be discouraged from building new rental housing units for fear of rent control limiting the return they can get for their investment. Existing law provides that local rent control ordinances do not apply to new spaces in mobilehome parks that are first held out for rent after January 1, 1990, for the first 15 years; in addition, local rent control ordinances do not apply to any spaces in mobilehome parks established on or after January 1, 2023, for the first 15 years after at least half the spaces in the park are initially held out for rent. This bill protects existing rent-controlled lots by providing that if a single-family mobilehome or manufactured home on a rent-controlled lot is replaced with a multifamily manufactured home, the lot would remain rent-controlled; in addition, newly added lots would not affect the rent-controlled status of existing lots. This bill incentivizes park owners to add lots by exempting added lots from rent control for 15 years.
3. Additional park resident protections. In addition to rent control protections, this bill requires a mobilehome park owner to comply with existing law requirements for creating, moving, shifting, or altering lot lines before attempting to reduce the size of or otherwise interfere with existing facilities such as pools, clubhouses, or existing occupied mobilehome spaces. These existing law requirements specify that a park owner must obtain written authorization from the registered owner or owners of the mobilehome or manufactured home, if any, located on the affected lot or lots, and must submit a written application, as specified, to the enforcement agency for a lot line alteration permit.
4. Coastal zone exemption. This bill does not apply to mobilehome parks in certain areas of the coastal zone. Specifically, it does not apply to parks located in areas between the sea and the first public road paralleling the sea or within 300 feet of the inland extent of any beach or of the mean high tideline of the sea where there is no beach, whichever is the greater distance. It also exempts environmentally sensitive areas. The author states that these exemptions address concerns about mobilehome park expansions that could potentially negatively impact sensitive areas, such as forested areas and near estuaries.
5. Trying again. AB 1334 (Pellerin) of 2023, which was held on suspense in the Senate Appropriations Committee last year, was similar but not identical to this bill. Most notably, it did not include the provisions outlined in (6) and (7) above.
6. Double-referral. This bill has also been referred to the Local Government Committee.

Related Legislation:

AB 1334 (Pellerin, 2023) — would have created a streamlined process for an owner of an existing mobilehome park to add new spaces to the park, not to exceed 10% of the previously approved number of spaces in the park. This bill was held on suspense in the Senate Appropriations Committee.

SB 940 (Laird, Chapter 666, Statutes of 2022) — preempted the imposition of local mobilehome rent control ordinances on mobilehome space rent for the first 15 years after a mobilehome space or park is initially held out for rent, as defined.

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

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

June 12, 2024.)

SUPPORT:

California Manufactured Housing Institute (Sponsor)
Western Manufactured Housing Communities Association

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2387

Author:(Pellerin)

As Amended Ver:May 16, 2024

Majority vote

SUMMARY

Authorizes an owner of an existing mobilehome park to add new spaces to the park, not to exceed 10% of the previously approved number of spaces in the park.

Major Provisions

1. Authorizes an owner of an existing mobilehome park who has a valid, unsuspended permit to operate or intends to qualify for a permit issued pursuant to the Mobilehome Parks Act (MPA) to add either of the following types of spaces to the mobilehome park, not to exceed 10% of the previously approved number of lots in the park:
   1. A lot for a single-family manufactured home;
   2. A multifamily manufactured home on a lot previously occupied by a single-family mobilehome or manufactured home; or
   3. Any combination of spaces under a) and b), above.
2. Provides that a lot occupied by a multifamily manufactured home under 1)b) above shall not be considered "new construction" for purposes of the 15-year new construction exemption to local rent control ordinances under specified law.
3. Provides that the conversion of a portion of single-family manufactured home lots into multifamily manufactured home lots under 1)b) above shall not be the basis for closing or converting that portion of the mobilehome park into another use, as specified, or for terminating the tenancy of a resident in a mobilehome park to facilitate the change of use of the mobilehome park, or any portion thereof, as specified.
4. Requires the owner of the park to apply for and obtain from the enforcement agency all permits required by the MPA to increase the occupancy in the park before adding any lot pursuant to 1). Before issuing the permits, the enforcement agency must require all reasonable information to ensure the additional lots do not substantially impact the provision of services to the existing or new lots, including water, sewage, gas, electrical, and other utilities.
5. Allows the enforcement agency to require evidence of compliance with all local health, utility, and fire requirements, as it deems necessary.
6. Requires the mobilehome park owner to complete all necessary processes with the enforcement agency to update their permit to operate upon approval from the enforcement agency pursuant to 2), above.
7. Prohibits a local agency from charging any business tax, local registration fee, use permit fee, or other fee upon lots added under this bill, except those that are applicable to existing lots in the park.
8. Allows a local agency to impose local property taxes, fees for water and sewer services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments that apply to the existing lots in the park.
9. Deems the lots added under this bill to be compliant with zoning and land use approvals of the existing mobilehome park, including any special use permit, notwithstanding any law. Prohibits a local government from deeming the lots added under this bill a use that differs from the mobilehome park's existing land use approvals.
10. Prohibits the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval for any lots added under this bill.
11. Prohibits an owner of a mobilehome park who adds lots from reducing the size of, or otherwise interfering with, any in-use pools, dog parks, clubhouses, playgrounds, sports facilities, exercise rooms, libraries, boat or recreational vehicle storage, laundry facilities, community meeting spaces, or any existing occupied mobilehome spaces without first complying with existing law requirements.
12. Requires a lot added to a mobilehome park under this bill to be considered "new construction" and applies the existing law 15-year new construction exemption to local rent control to the new lot.
13. Prohibits a lot added to a mobilehome park under this bill from increasing, revising, or changing the number or percentage of lots within the park which are deemed to be exempt from any local rent control, and prohibits a lot added to a mobilehome park under this bill from causing any existing lots within the park to become exempt from any local rent control.
14. Exempts mobilehome parks that are located in specified areas of the coastal zone from the bill's provisions.

COMMENTS

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

Mobilehome Parks Act: The MPA requires HCD to regulate mobilehome parks to assure protection of the health, safety, and general welfare of all mobilehome park residents. Local agencies have the option of assuming enforcement authority of the MPA within their jurisdiction through agreement with HCD. Among these enforcement duties is performing health and safety inspections of parks.

The MPA also requires each mobilehome park to pay an annual fee and obtain a permit to operate from either HCD or the local enforcement agency. Operating permits last for a year and the enforcement agency has the ability to suspend an operating permit in the event of substandard conditions at the park or other violations of the MPA.

HCD's website lays out the required steps a park owner must take when seeking either to construct a new mobilehome park or to construct additional spaces or facilities within an existing park:

"A construction permit is required when developing a new mobilehome park or special occupancy park or constructing additional spaces and/or facilities within an existing park. The following local government approvals and utility agency 'will serve' letters must accompany all park construction project permit applications:

1. Written approval or a conditional use permit from the local planning agency. [HSC 18501(e)]
2. Environmental impact reports, recommendations, and approval from the reviewing agency, normally the local planning department. [California Code of Regulations, title 25, section 1030]
3. Permit from the Coastal Commission for developments within the permit area of a coastal zone.
4. Written approval or stamp of approval from the local health department on all plans relating to water supply and method of sewage disposal. [HSC 18501(e)]
5. Written approval or stamp of approval on all plans relating to fire protection provided in the mobilehome park from the local fire department. [HSC 18501(e) and California Code of Regulations, title 25, section 1032]
6. Written approval or stamp of approval on all plans relating to the park surface or subsurface drainage systems from the local public works department, engineering department, flood control agency, or water quality control board. [HSC 18501(e)]
7. Written approval or stamp of approval on all plans relating to park grading, pad elevation certificates, and storm water pollution prevention plans (SWPPPs) from the local building or engineering department. [HSC 18501(e)]
8. Contact local water agencies and public utilities for availability of planned services. Provide letters stating services will be provided. [HSC 18501(e)]

Note: The required written approvals may be in letter form issued by the agency having authority to grant such an approval or simply a signature on the affected plans by the approving agency's authorized agent."^[1]

Local Land Use Approvals: The permits required by HCD – construction, alteration, electrical, or operating permits, for example – are distinct from the local government's land use permits or zoning approvals for the park site or expansion, referenced in the first bullet above. The California Constitution provides cities and counties the authority to regulate behavior to preserve the health, safety, and welfare of the public. This provision – commonly called the police power – gives cities and counties broad authority to regulate land use and other matters, provided that the local policy is "not in conflict with general laws."

Cities and counties use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. Through this authority, they can zone for residential, commercial, industrial, or other areas at specific intensities, and can even zone areas where they specifically designate mobilehome parks may be built or operate. For example, the County of San Mateo in 2017 adopted a "Mobilehome Park Zoning District" ordinance to govern how and where mobilehome parks can exist and to change the general plan land use designation of six existing parks already operating in the county. Prior to the adoption of the county ordinance, those six existing parks had various general plan land use designations ranging from "High Density Residential" to "General Industrial" to "Industrial Mixed Use" and others, and their zoning was largely commercial.^[2]

The practice of zoning special mobilehome park areas is relatively uncommon, so new parks in areas zoned for other uses would require a discretionary rezone, zoning variance, conditional use permit (CUP), and/or a special use permit from the local government. This is also the case in instances where an existing park wants to add spaces but does not conform to the existing land use designation or zoning (i.e., the park has been granted permission to operate via a zoning variance or CUP, or the zoning ordinance conforms to the existing use but with specific intensity restrictions or other requirements). Like most new development, the local government also often requires the owner to pay development impact fees on the new proposed lots, which in one example provided by the bill's supporters equals $50,000 per new lots.

This bill would create a streamlined process allowing an existing park to increase the number of lots by 10% without requiring a CUP or zoning variance, and would prohibit a local government from charging impact or permit fees for those spaces. Before this expansion would be allowed, the parkowner would have to demonstrate to HCD or the local enforcement agency that the additional spaces would not substantially impact the provision of water, sewer, electrical, or other utility services to the existing park residents or to the new spaces. In addition, while permitting fees would be capped to those applicable to the existing spaces, this bill provides that a local agency can still impose local property taxes, fees for utility services, inspection fees, local bond assessments, and other charges that generally apply to the existing spaces in the park.

To address concerns raised by the opposition regarding the application of existing local rent control protections to newly created or densified lots, the bill provides for the following:

1. If a parkowner seeks to replace an existing single-family mobilehome with a duplex, the duplex will not be considered "new construction" and thus the underlying lot would remain rent-controlled, if it was covered previously by a local rent control ordinance;
2. If a parkowner seeks to add new lots to the park under the bill, the new lots will be considered "new construction" and the existing law 15-year rolling exemption for new construction from local rent control would apply to the new lots; and
3. A lot added to a park under this bill cannot cause any existing lots within the park to become exempt from any local rent control, nor can it increase, revise, or change the number or percentage of lots within the park that are deemed to be exempt from local rent control.

According to the Author

"Mobilehome parks provide hundreds of thousands of housing units, often at more affordable prices than other options. However, in some areas local permitting processes and excessive fees charged for adding spaces in existing mobilehome parks—which can reach the tens of thousands of dollars per space being added—make mobilehomes cost-prohibitive. These disincentives make it far less likely that the potential for mobilehome parks to assist in increasing the state's housing stock will be realized.

AB 2387 allows California's existing mobilehome park owners to apply to add no more than 10% of the previously approved number of spaces in the mobilehome park for manufactured homes, so long as the additional spaces do not substantially impact the provision of services to the existing or new spaces, including water, sewage, electrical, gas, and other utilities. As was done with ADUs, adding a limited number of spaces to existing mobilehome parks will help increase California's housing supply on existing residential property."

Arguments in Support

According to the California Manufactured Housing Institute, the bill's sponsor, "Mobilehome parks already provide hundreds of thousands of housing units in the state and these options are often more affordable than other forms of housing. However, in some areas local permitting processes, excessive development fees, and other administrative burdens can drive the cost of increasing the number [of] spaces so high that doing so is not a viable option. Just as California has taken on streamlining the processes for other types of housing, this legislation takes the same approach for either single-family or duplex multifamily manufactured homes, while including important safeguards to maintain the quality of life and level of service provided to residents."

Arguments in Opposition

According to Senior Legal Services of Santa Cruz and San Benito Counties, "By allowing mobilehome park owners to convert 10% of their current single-family spaces into multi-family spaces, AB 2387 will (1) further reduce the limited supply of affordable housing by allowing park owners to eliminate rent-controlled single-family mobilehomes, and (2) overrule local zoning controls by allowing park owners to insert two-story duplex mobilehomes in single-family spaces."

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

The Department of Housing and Community Development (HCD) estimates General Fund costs of $384,000 in the first year and $184,000 annually thereafter. These costs reflect the need for one staff position to respond to the anticipated increase in technical assistance requests from local agencies and mobilehome park owners and an increase in administrative workload to process amendments to existing operating permits. Additional first-year costs include $200,000 in contract costs to enhance online services and the Codes and Standards Automated System to allow for electronic submission of operating permits, renewals and new application types.

According to the Legislative Analyst's Office, the General Fund faces a structural deficit in the tens of billions of dollars over the next several fiscal years.

VOTES

ASM HOUSING AND COMMUNITY DEVELOPMENT: 9-0-0

YES: Ward, Joe Patterson, Grayson, Kalra, Lee, Zbur, Reyes, Sanchez, Wilson

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua

ABS, ABST OR NV: Sanchez, Dixon, Jim Patterson, Ta

UPDATED

VERSION: May 16, 2024

CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0003376

1. https://www.hcd.ca.gov/manufactured-and-mobilehomes/mobilehome-parks/park-construction-and-alterations ↑

2. https://www.smcgov.org/housing/mobilehome-park-zoning-district ↑

Date of Hearing: April 10, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2387

Author:(Pellerin) – As Amended Ver:March 21, 2024

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

SUMMARY:

This bill authorizes an owner of an existing mobilehome park to add new lots to the park, not to exceed 10% of the previously approved number of lots, under a streamlined process and without paying certain fees, if specified conditions are met.

Specifically, this bill:

1. Authorizes an owner of an existing mobilehome park who is subject to a permit to operate under the Mobilehome Parks Act (MPA), and who has not been served with a notice of violation that constitutes an imminent threat to health and safety, to add lots to the park for either a single-family manufactured home or a duplex manufactured home on a lot previously occupied by a single-family mobilehome, or a combination, not to exceed 10% of the previously approved number of lots in the mobilehome park.
2. Requires a park owner, prior to adding lots, to apply for all permits required by the MPA to increase the occupancy in the park, and requires the enforcement agency, prior to issuing the permits, to ensure the additional lots do not substantially impact the provision of services to the existing or new lots, including water, sewage, electrical, gas, and other utilities.
3. Exempts the new lots from any business tax, local registration fee, use permit fee, or other fee, except those fees that apply to the existing lots in the park.
4. Allows a local agency to impose local property taxes, fees for water and sewer services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments that apply to the existing lots in the park.
5. Deems the new lots compliant with the zoning and land use approvals of the existing mobilehome park. Provides that, for the purposes of local ordinances, added lots are not deemed a use that differs from the mobilehome park’s existing land use approvals.
6. Prohibits the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval for any added lots, thus exempting those projects from the California Environmental Quality Act (CEQA).
7. Prohibits a park owner, in adding new lots, from reducing the size of, or otherwise interfering with, any in-use pools, dog parks, or other specified amenities.
8. Applies the bill’s provisions to all cities, including charter cities.

FISCAL EFFECT:

The Department of Housing and Community Development (HCD) estimates General Fund costs of $384,000 in the first year and $184,000 annually thereafter. These costs reflect the need for one staff position to respond to the anticipated increase in technical assistance requests from local agencies and mobilehome park owners and an increase in administrative workload to process amendments to existing operating permits. Additional first-year costs include $200,000 in contract costs to enhance online services and the Codes and Standards Automated System to allow for electronic submission of operating permits, renewals and new application types.

According to the Legislative Analyst’s Office, the General Fund faces a structural deficit in the tens of billions of dollars over the next several fiscal years. 

COMMENTS:

1. Purpose. The author of this bill seeks to increase the supply of housing by creating a streamlined process for approving new lots in mobilehome parks, capped at 10% of a park’s existing approved lots. The bill is sponsored by the California Manufactured Housing Institute.
2. Background. The MPA specifies requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks. HCD is responsible for developing regulations and enforcing statutory requirements to ensure the health and safety of residents of the parks. With HCD’s approval, a city or county may assume enforcement responsibilities of the MPA within the city’s or county’s jurisdiction. There are over 4,450 mobilehome parks in the state that contain nearly 388,000 active lots and more than 700,000 residents. HCD has enforcement responsibility over 82% percent of the parks and 76% of the individual lots; 70 local enforcement agencies have enforcement responsibilities over the remaining parks and lots.

The MPA also requires a park owner to pay an annual fee and obtain an annual permit to operate from either HCD or the local enforcement agency. Park owners must also obtain permits from enforcement agencies for construction or alterations of a mobilehome park. These permits are in addition to permits that must be obtained from cities and counties for development within a local jurisdiction.

Cities and counties zone their land for residential, commercial, industrial, or other uses at specific intensities. The practice of zoning special mobilehome park areas, however, is relatively uncommon. More often, a new park proposed in an area zoned for other uses requires a discretionary rezone, zoning variance, conditional use permit, or a special use permit from the local government. This process also typically applies when a park owner wants to add lots in an existing park that has a zoning variance or conditional use permit. A local government may also require a park owner to pay development impact fees on the new proposed lots, which can be in the tens of thousands of dollars.

This bill creates a streamlined process for an owner of an existing park to increase the number of lots by 10% without requiring a conditional use permit or zoning variance, and prohibits a local government from charging impact or permit fees for those lots.

1. Arguments in Support and Opposition. The bill’s sponsor and park owners argue excessive local development impact fees and other administrative burdens often discourage the construction of new spaces in existing parks. They believe this bill will incentivize existing mobilehome parks to make modest expansions, thus increasing the state’s potential housing stock.

Opponents, those representing seniors and others concerned with protecting the supply of affordable housing, argue this bill will reduce the supply of affordable mobilehomes because, among its provisions, the bill allows park owners to convert rent-controlled single-family mobilehomes into “newly-constructed” multi-family lots, which will then be exempt from rent control protection under the Civil Code.

Further, they note most local rent control ordinances in California cover only the rental of a mobilehome lot, not the rental of a mobilehome on that lot to non-homeowner tenants. Thus, an existing rent-controlled single-family lot converted to a multifamily lot with new duplex mobilehomes, as allowed under this bill, would lose local rent control protections if a park owner retained ownership of the new duplex mobilehomes and rented them out rather than selling them to new homeowners, or if an existing mobilehome owner replaced their mobilehome with a duplex mobilehome and rented out one or both units. The opposition groups are seeking amendments to protect existing rent-controlled lots converted to multifamily lots under this bill.

1. Related Legislation. AB 1334 (Pellerin), of this legislative session, was nearly identical to this bill. AB 1334 was held on the suspense file in the Senate Appropriations Committee.

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

Date of Hearing: March 20, 2024

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Christopher M. Ward, Chair

ABPCA Bill Id:AB 2387 (

Author:Pellerin) – As Introduced Ver:February 12, 2024

SUBJECT: Mobilehome parks: additional lots: exemption from additional fees or charges

SUMMARY: Authorizes an owner of an existing mobilehome park to add new spaces to the park, not to exceed 10% of the previously approved number of spaces in the park. Specifically, this bill:

1. Authorizes an owner of an existing mobilehome park who has a valid, unsuspended permit to operate or intends to qualify for a permit issued pursuant to the Mobilehome Parks Act (MPA) to add either of the following types of spaces to the mobilehome park, not to exceed 10% of the previously approved number of lots in the park:
   1. A lot for a single-family manufactured home;
   2. A multifamily manufactured home on a lot previously occupied by a single-family mobilehome or manufactured home; or
   3. Any combination of spaces under a) and b).
2. Requires the owner of the park to apply for and obtain from the enforcement agency all permits required by the MPA to increase the occupancy in the park before adding any lot pursuant to 1). Before issuing the permits, the enforcement agency must require all reasonable information to ensure the additional lots do not substantially impact the provision of services to the existing or new lots, including water, sewage, gas, electrical, and other utilities.
3. Allows the enforcement agency to require evidence of compliance with all local health, utility, and fire requirements, as it deems necessary.
4. Requires the mobilehome park owner to complete all necessary processes with the enforcement agency to update their permit to operate upon approval from the enforcement agency pursuant to 2).
5. Prohibits a local agency from charging any business tax, local registration fee, use permit fee, or other fee upon lots added under this bill, except those that are applicable to existing lots in the park.
6. Allows a local agency to impose local property taxes, fees for water and sewer services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments that apply to the existing lots in the park.
7. Deems the lots added under this bill to be compliant with zoning and land use approvals of the existing mobilehome park, including any special use permit, notwithstanding any law. Prohibits a local government from deeming the lots added under this bill a use that differs from the mobilehome park’s existing land use approvals.
8. Prohibits the enforcement agency, city, or county from requiring a conditional use permit, zoning variance, or other zoning approval for any lots added under this bill.
9. Prohibits an owner of a mobilehome park who adds lots from reducing the size of, or otherwise interfering with, any in-use pools, dog parks, clubhouses, playgrounds, sports facilities, exercise rooms, libraries, boat or recreational vehicle storage, laundry facilities, or community meeting spaces.

EXISTING LAW:

1. Defines “manufactured home” to mean a structure that was constructed on or after June 15, 1976, is transportable in one or more sections, is eight body feet or more in width, or 40 body feet or more in length in traveling mode, is built on a permanent chassis and designed to be used as a single-family dwelling with or without a foundation when connected to the required utilities.” (Health and Safety Code (HSC) Section 18007)
2. Defines “mobilehome” to mean a structure identical to 1) that was constructed prior to June 15, 1976. (HSC 18008)
3. Defines “multifamily manufactured home” to mean a structure transportable under permit in one or more sections that is designed and equipped to contain two dwelling units, or is designed to be used with a foundation system for three or more dwelling units. (HSC 18008.7)
4. Declares it to be unlawful for any person to do any of the following unless they have a valid permit issued by an enforcement agency:
   1. Construct a mobilehome park;
   2. Construct additional buildings or lots, or alter buildings, lots, or other installations in an existing park;
   3. Operate, occupy, rent, lease, sublease, let out, or hire out for occupancy any lot in a park that has been constructed, reconstructed, or altered without having obtain a permit; or
   4. Operate a park or any portion thereof. (HSC 18500)
5. Requires applications for a construction permit to be accompanied by a description of the grounds, plans and specifications of the proposed construction, a description of the water supply and sewage, appropriate fees, and evidence of compliance with all valid local planning, health, utility, and fire requirements. (HSC 18501)
6. Requires the Department of Housing and Community Development (HCD) to establish a schedule of fees relating to all construction, mechanical, electrical, plumbing, and installation permits, which must be paid to the enforcement agency. Requires these fees to be reasonably consistent with specified building codes. (HSC 18503)
7. Requires HCD to issue an operating permit following notification by the local enforcement agency of completion of construction of a new park or additional lots to an existing park. In approving the application for an operating permit, the local enforcement agency authorizes occupancy of the newly constructed facilities. (HSC 18505)
8. Requires the enforcement agency to issue an operating permit for a 12-month period, and forward a copy of each operating permit to HCD. Prohibits an operating permit from being issued for a park where the previous operating permit has been suspended by the enforcement agency until the violations which were the basis for the suspension have been corrected. (HSC 18506)
9. Authorizes an enforcement agency to suspend the operating permit of any person who violates the permit or the MPA, subject to specified notice, timeline, and due process hearing requirements. (HSC 18510-18518)

FISCAL EFFECT: Unknown.

COMMENTS:

Author’s Statement: According to the author, “Mobilehome parks provide hundreds of thousands of housing units, often at more affordable prices than other options. However, in some areas local permitting processes and excessive fees charged for adding spaces in existing mobilehome parks—which can reach the tens of thousands of dollars per space being added—make mobilehomes cost-prohibitive. These disincentives make it far less likely that the potential for mobilehome parks to assist in increasing the state’s housing stock will be realized.

AB 2387 allows California’s existing mobilehome park owners to apply to add no more than 10% of the previously approved number of spaces in the mobilehome park for manufactured homes, so long as the additional spaces do not substantially impact the provision of services to the existing or new spaces, including water, sewage, electrical, gas, and other utilities. As was done with ADUs, adding a limited number of spaces to existing mobilehome parks will help increase California’s housing supply on existing residential property.”

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

Mobilehome Parks Act: The MPA requires HCD to regulate mobilehome parks to assure protection of the health, safety, and general welfare of all mobilehome park residents. Local agencies have the option of assuming enforcement authority of the MPA within their jurisdiction through agreement with HCD. Among these enforcement duties is performing health and safety inspections of parks.

The MPA also requires each mobilehome park to pay an annual fee and obtain a permit to operate from either HCD or the local enforcement agency. Operating permits last for a year and the enforcement agency has the ability to suspend an operating permit in the event of substandard conditions at the park or other violations of the MPA.

HCD’s website lays out the required steps a park owner must take when seeking either to construct a new mobilehome park or to construct additional spaces or facilities within an existing park:

“A construction permit is required when developing a new mobilehome park or special occupancy park or constructing additional spaces and/or facilities within an existing park. The following local government approvals and utility agency ‘will serve’ letters must accompany all park construction project permit applications:

• Written approval or a conditional use permit from the local planning agency. [HSC 18501(e)]
• Environmental impact reports, recommendations, and approval from the reviewing agency, normally the local planning department. [California Code of Regulations, title 25, section 1030]
• Permit from the Coastal Commission for developments within the permit area of a coastal zone.
• Written approval or stamp of approval from the local health department on all plans relating to water supply and method of sewage disposal. [HSC 18501(e)]
• Written approval or stamp of approval on all plans relating to fire protection provided in the mobilehome park from the local fire department. [HSC 18501(e) and California Code of Regulations, title 25, section 1032]
• Written approval or stamp of approval on all plans relating to the park surface or subsurface drainage systems from the local public works department, engineering department, flood control agency, or water quality control board. [HSC 18501(e)]
• Written approval or stamp of approval on all plans relating to park grading, pad elevation certificates, and storm water pollution prevention plans (SWPPPs) from the local building or engineering department. [HSC 18501(e)]
• Contact local water agencies and public utilities for availability of planned services. Provide letters stating services will be provided. [HSC 18501(e)]

Note: The required written approvals may be in letter form issued by the agency having authority to grant such an approval or simply a signature on the affected plans by the approving agency's authorized agent.”^[1]

Local Land Use Approvals: The permits required by HCD – construction, alteration, electrical, or operating permits, for example – are distinct from the local government’s land use permits or zoning approvals for the park site or expansion, referenced in the first bullet above. The California Constitution provides cities and counties the authority to regulate behavior to preserve the health, safety, and welfare of the public. This provision – commonly called the police power – gives cities and counties broad authority to regulate land use and other matters, provided that the local policy is “not in conflict with general laws.”

Cities and counties use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. Through this authority, they can zone for residential, commercial, industrial, or other areas at specific intensities, and can even zone areas where they specifically designate mobilehome parks may be built or operate. For example, the County of San Mateo in 2017 adopted a “Mobilehome Park Zoning District” ordinance to govern how and where mobilehome parks can exist and to change the general plan land use designation of six existing parks already operating in the county. Prior to the adoption of the county ordinance, those six existing parks had various general plan land use designations ranging from “High Density Residential” to “General Industrial” to “Industrial Mixed Use” and others, and their zoning was largely commercial.^[2]

The practice of zoning special mobilehome park areas is relatively uncommon, so new parks in areas zoned for other uses would require a discretionary rezone, zoning variance, conditional use permit (CUP), and/or a special use permit from the local government. This is also the case in instances where an existing park wants to add spaces but does not conform to the existing land use designation or zoning (i.e., the park has been granted permission to operate via a zoning variance or CUP, or the zoning ordinance conforms to the existing use but with specific intensity restrictions or other requirements). Like most new development, the local government also often requires the owner to pay development impact fees on the new proposed lots, which in one example provided by the bill’s supporters equals $50,000 per new lots.

This bill would create a streamlined process allowing an existing park to increase the number of lots by 10% without requiring a CUP or zoning variance, and would prohibit a local government from charging impact or permit fees for those spaces. Before this expansion would be allowed, the parkowner would have to demonstrate to HCD or the local enforcement agency that the additional spaces would not substantially impact the provision of water, sewer, electrical, or other utility services to the existing park residents or to the new spaces. In addition, while permitting fees would be capped to those applicable to the existing spaces, this bill provides that a local agency can still impose local property taxes, fees for utility services, inspection fees, local bond assessments, and other charges that generally apply to the existing spaces in the park.

Arguments in Support: According to the California Manufactured Housing Institute, the bill’s sponsor, “Mobilehome parks already provide hundreds of thousands of housing units in the state and these options are often more affordable than other forms of housing. However, in some areas local permitting processes, excessive development fees, and other administrative burdens can drive the cost of increasing the number [of] spaces so high that doing so is not a viable option. Just as California has taken on streamlining the processes for other types of housing, this legislation takes the same approach for either single-family or duplex multifamily manufactured homes, while including important safeguards to maintain the quality of life and level of service provided to residents.”

Arguments in Opposition: None on file.

Committee Amendments: To ensure the bill applies to all cities, including charter cities, staff recommends the bill be amended as follows:

Government Code Section 65852.8. (h) The Legislature finds and declares that streamlining the addition of new mobilehome lots in existing parks is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

Related Legislation:

AB 1334 (Pellerin) of 2023 was nearly identical to this bill. The bill was held in the Senate Appropriations Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

California Manufactured Housing Institute (Sponsor)

Western Manufactured Housing Communities Association

Opposition

None on file.

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

1. https://www.hcd.ca.gov/manufactured-and-mobilehomes/mobilehome-parks/park-construction-and-alterations ↑

2. https://www.smcgov.org/housing/mobilehome-park-zoning-district ↑