AB 2778: Mobilehome Affordability Act: mobilehome parks: rent caps.

Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. Existing law defines tenancy for these purposes as the right of a homeowner to use a site within a mobilehome park on which to locate, maintain, and occupy a mobilehome for human habitation, including the use of the services and facilities of the park. Existing law, until January 1, 2030, prohibits, with certain exceptions, the management of a mobilehome park from increasing the gross rental rate for a tenancy in a qualified mobilehome park more than 3% plus the percentage change in the cost of living, as defined, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase, subject to specified conditions. Existing law defines qualified mobilehome park for these purposes as a mobilehome park that is located within and governed by the jurisdictions of 2 or more incorporated cities.

This bill would enact the Mobilehome Affordability Act. The bill would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenancy for a mobilehome space more than 3% plus the percentage change in the cost of living, as defined, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase, as specified. The bill would prohibit management from increasing the gross rental rate for a tenancy in more than 2 increments over a 12-month period, after the tenant maintains the tenancy over a 12-month period. Notwithstanding these provisions, the bill would authorize management to increase the rental rate by 5% after a transfer of a mobilehome park, as specified.

This bill would specify that these provisions apply to rent increases for mobilehome spaces occurring on or after January 1, 2024. The bill would provide that in the event that management increased the rent by more than the amount specified above between January 1, 2024, and January 1, 2025, then the applicable rent on January 1, 2025, is the rent as of January 1, 2024, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment. The bill would void any waiver of the rights provided under these provisions. The bill would exempt specified mobilehome spaces from these provisions. The bill would not apply to a mobilehome park when a local government has adopted an ordinance, rule, regulation, or initiative measure before January 1, 2025, that establishes a maximum amount that may be charged by management for rent or otherwise regulates the rental rate for a mobilehome tenancy in that mobilehome park. The bill would provide that its provisions shall not impair, alter, or change any rental term or obligation contained in a rental agreement in effect between management and a resident as of January 1, 2025, and which was entered into or became effective before January 1, 2024, except as described.