Existing law, the Mobilehome Parks Act, establishes requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks. Existing law generally requires the Department of Housing and Community Development to enforce the act, except that a city, county, or city and county may assume the responsibility for the enforcement of the act upon the approval of the department, as provided. Existing law makes a violation of the act a crime.

Existing law, until January 1, 2025, requires an enforcement agency, after conducting an inspection and determining that a violation exists, to issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner. Existing law requires the registered owner to be responsible for the correction of any violations for which a notice of violation has been given. For violations other than imminent threats to health and safety, as provided, existing law requires the notice of violation to allow 60 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. Existing law repeals these provisions on January 1, 2025.

This bill would extend certain of these provisions until January 1, 2027, and would commencing on that date require an enforcement agency that issues a notice of violation to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action, as provided. By requiring local officials to perform these additional duties, the bill would impose a state-mandated local program.

For violations other than imminent threats to health and safety, as specified, the bill would, instead, require the notice of violation to allow 90 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation.

The bill would repeal these provisions on January 1, 2030.

This bill would incorporate additional changes to Section 18420 of the Health and Safety Code proposed by AB 2247 to be operative only if this bill and AB 2247 are enacted and this bill is enacted last.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Mobilehome Parks Act, establishes requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks. Existing law generally requires the Department of Housing and Community Development to enforce the act, except that a city, county, or city and county may assume the responsibility for the enforcement of the act upon the approval of the department, as provided. Existing law makes a violation of the act a crime.

Existing law, until January 1, 2025, requires an enforcement agency, after conducting an inspection and determining that a violation exists, to issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner. Existing law requires the registered owner to be responsible for the correction of any violations for which a notice of violation has been given. For violations other than imminent threats to health and safety, as provided, existing law requires the notice of violation to allow 60 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. Existing law repeals these provisions on January 1, 2025.

This bill, commencing January 1, 2027, would require an enforcement agency that issues a notice of violation to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action, as provided. By requiring local officials to perform these additional duties, the bill would impose a state-mandated local program.

For violations other than imminent threats to health and safety, as specified, the bill would, instead, require the notice of violation to allow 90 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation.

The bill would repeal these provisions on January 1, 2030.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Mobilehome Parks Act, establishes requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks. Existing law generally requires the Department of Housing and Community Development to enforce the act, except that a city, county, or city and county may assume the responsibility for the enforcement of the act upon the approval of the department, as provided. Existing law makes a violation of the act a crime.

Existing law, until January 1, 2025, requires an enforcement agency, after conducting an inspection and determining that a violation exists, to issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner. Existing law requires the registered owner to be responsible for the correction of any violations for which a notice of violation has been given. For violations other than imminent threats to health and safety, as provided, existing law requires the notice of violation to allow 60 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. Existing law requires the department to develop a list of local agencies that have home rehabilitation or repair programs for which registered owners or occupants of manufactured homes and mobilehomes residing in mobilehome parks may be eligible, as specified. Existing law repeals these provisions on January 1, 2025.

This bill bill, commencing January 1, 2027, would revise and recast the above-described requirements to extend their operation indefinitely. With respect to notice of violations, the bill would impose various duties on an enforcement agency, including requiring that agency require an enforcement agency that issues a notice of violation to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations, violations before looking to the mobilehome park owner or operator for corrective action, as provided. By requiring local officials to perform these additional duties, the bill would impose a state-mandated local program.

For violations other than imminent threats to health and safety, as specified, the bill would, instead, require the notice of violation to allow 90 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. The bill would, instead, require the enforcement agency to develop a list of local agencies that have home rehabilitation or repair programs, as described above.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Mobilehome Parks Act, establishes requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks. Existing law generally requires the Department of Housing and Community Development to enforce the act, except that a city, county, or city and county may assume the responsibility for the enforcement of the act upon the approval of the department, as provided. Existing law makes a violation of the act a crime.

Existing law, until January 1, 2025, requires an enforcement agency, after conducting an inspection and determining that a violation exists, to issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner. Existing law requires the registered owner to be responsible for the correction of any violations for which a notice of violation has been given. For violations other than imminent threats to health and safety, as provided, existing law requires the notice of violation to allow 60 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. Existing law requires the department to develop a list of local agencies that have home rehabilitation or repair programs for which registered owners or occupants of manufactured homes and mobilehomes residing in mobilehome parks may be eligible, as specified. Existing law repeals these provisions on January 1, 2025.

This bill would revise and recast the above-described requirements to extend their operation indefinitely and would additionally require an enforcement agency, after conducting an inspection and determining that a violation exists, to issue the notice to correct the violation to the responsible person. indefinitely. With respect to notice of violations, the bill would impose various duties on an enforcement agency, including requiring that agency to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations, as provided.

For violations other than imminent threats to health and safety, as specified, the bill would, instead, require the notice of violation to allow 90 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. The bill would, instead, require the enforcement agency to develop a list of local agencies that have home rehabilitation or repair programs, as described above.

By extending the operation of these provisions, the violation of which is a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Mobilehome Parks Act, establishes requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks. Existing law generally requires the Department of Housing and Community Development to enforce the act, except that a city, county, or city and county may assume the responsibility for the enforcement of the act upon the approval of the department, as provided. Existing law makes a violation of the act a crime.

Existing law, until January 1, 2025, requires an enforcement agency, after conducting an inspection and determining that a violation exists, to issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner. Existing law requires the registered owner to be responsible for the correction of any violations for which a notice of violation has been given. For violations other than imminent threats to health and safety, as provided, existing law requires the notice of violation to allow 60 days from the postmarked date of the notice or date of personal delivery for the elimination of the condition constituting the alleged violation. Existing law requires the department to develop a list of local agencies that have home rehabilitation or repair programs for which registered owners or occupants of manufactured homes and mobilehomes residing in mobilehome parks may be eligible, as specified. Existing law repeals these provisions on January 1, 2025.

This bill would revise and recast the above-described requirements to extend their operation indefinitely and would additionally require an enforcement agency, after conducting an inspection and determining that a violation exists, to mail a copy of issue the notice to correct the violation to the owner or operator of a mobilehome park and to the responsible person. With respect to notice of violations, the bill would impose various duties on an enforcement agency, including requiring that agency to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations, as provided. The bill would require an enforcement agency to provide 90 days from the date of service of the notice of violation upon the tenant and park operator for the purpose of voluntary remediation, except as provided. The bill would authorize an enforcement agency to give reasonable time necessary for the termination of tenancy, or to secure injunctive relief, and would prohibit an enforcement agency from revoking a permit to operate based on uncorrected violations.

Existing law, the Mobilehome Parks Act, establishes requirements for the construction, maintenance, occupancy, use, and design of mobilehome parks. Existing law generally requires the Department of Housing and Community Development to enforce the act, except that a city, county, or city and county may assume the responsibility for the enforcement of the act upon the approval of the department, as provided.

Existing law, until January 1, 2025, requires an enforcement agency, after conducting an inspection and determining that a violation exists, to issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner. Existing law requires the registered owner to be responsible for the correction of any violations for which a notice of violation has been given. Existing law repeals these provisions on January 1, 2025.

This bill would revise and recast the above-described requirements to extend their operation indefinitely and would additionally require an enforcement agency, after conducting an inspection and determining that a violation exists, to mail a copy of the notice to correct the violation to the owner or operator of a mobilehome park and to the responsible person. With respect to notice of violations, the bill would impose various duties on an enforcement agency, including requiring that agency to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations, as provided. The bill would require an enforcement agency to provide 90 days from the date of service of the notice of violation upon the tenant and park operator for the purpose of voluntary remediation, except as provided. The bill would authorize an enforcement agency to give reasonable time necessary for the termination of tenancy, or to secure injunctive relief, and would prohibit an enforcement agency from revoking a permit to operate based on uncorrected violations.

 VETO  

Bill No: SB 1108

Author: Ochoa Bogh (R)

Enrolled: 9/6/24

Vote: 27

SENATE HOUSING COMMITTEE: 10-0, 3/19/24

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

SENATE JUDICIARY COMMITTEE: 11-0, 4/9/24

AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Laird, Min, Niello, Stern, Wahab

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24

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

SENATE FLOOR: 37-0, 5/23/24

AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

NO VOTE RECORDED: Allen, Archuleta, Newman

SENATE FLOOR: 40-0, 8/31/24

AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ASSEMBLY FLOOR: 76-0, 8/30/24 - See last page for vote

SUBJECT: Mobilehome parks: notice of violations

SOURCE: Western Manufactured Housing Communities Association

DIGEST:

This bill (a) increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation; (b) requires the enforcement agency to exhaust all administrative and legal recourse against a mobilehome owner who fails to correct violations before looking to the park owner or operator for corrective action; and (c) indefinitely extends specified enforcement responsibilities over mobilehome parks.

ANALYSIS:

Existing law:

1. Establishes the Mobilehome Residency Law (MRL), which regulates the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents.
2. Establishes the Mobilehome Parks Act (the Act), governing mobilehome parks, and the Special Occupancy Parks Act, governing Special Occupancy Parks (such as RV parks), which establish requirements for the permits, fees, and responsibilities of park operators and enforcement agencies, including the Department of Housing and Community Development (HCD).
3. Gives HCD authority over mobilehome, special occupancy, and RV parks established by the aforementioned acts and laws. HCD’s main enforcement is over the Act and not the MRL.
4. Requires, until January 1, 2025, an enforcement agency, within 10 days after conducting an inspection and determining that a non-imminent violation exists, to issue a notice (i.e., a Notice of Violation) to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner.
5. Specifies, until January 1, 2025, that mobilehome owners are provided 60 days to correct the violation. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator and immediate correction is required.
6. Requires HCD, until January 1, 2025, to issue and serve upon a mobilehome park owner or operator a notice setting forth what provisions of the permit or statute have been violated, and notify the permittee (i.e., the mobilehome park owner or operator) that unless these provisions have been complied with within 30 days after the date of notice (i.e., after HCD’s 3^rd reinspection, the permittee receives a Notice of Intent to Suspend the Permit to Operate), the permit will be subject to suspension.

This bill:

1. Extends specific mobilehome park enforcement responsibilities indefinitely (currently scheduled to sunset on January 1, 2025).
2. Requires the enforcement agency to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action.
3. Requires an enforcement agency to provide 90 days (rather than 60 days) from the date of service of the notice of violation upon the tenant and park operator for the purpose of voluntary remediation, except as provided.

Background

Background on Mobilehomes. According to HCD, California has 4,656 mobilehome parks which contain 363,415 spaces for mobilehomes or manufactured homes. Mobilehomes make up nearly 4% of all housing in the state. Mobilehome owners do not own the land the unit sits on and instead pay rent and fees to mobilehome park management, who see the property as an investment. These can be small, local enterprises or larger corporations that own multiple communities.

Unlike traditional single-family homes, mobilehomes are considered chattel (personal) property and not real property. As such, purchasing a mobilehome is often much less expensive than traditional site-built housing and mobilehomes represent an important source of affordable housing in the state, especially for seniors and low-income households who are increasingly priced out of traditional rental housing. However, the underlying reality of mobilehome ownership reveals a potential vulnerability. Much like conventional lease agreements, the costs associated with occupying a space in a mobilehome park are subject to increases over time, posing financial challenges for residents.

When land values increase or when infrastructure maintenance becomes too costly, investors may choose to close the community and sell the property for another use. Despites their name, mobilehomes are not truly mobile and it is often cost prohibitive (up to $20,000) to relocate them. Additionally, some older homes may not be able to be moved at all due to structural concerns and often parks will not accept older mobilehomes. Homeowners in this predicament are sometimes forced to abandon their homes when a community closes. The loss of scarce locations for manufactured and mobilehomes depletes this important housing resource.

Recognizing this, the state has passed several laws governing the relationship between mobilehome owners and park management. For example, under California’s MRL, mobilehome owners have protections against “no cause” evictions and can only be evicted from a park for a limited set of reasons including non-payment of rent, violation of park rules, or specified criminal activities.

Comments

1. Author’s statement. According to the author, “A 2023 study by Harvard University’s Joint Center for Housing Studies found that mobilehomes present an opportunity for homeownership for low-income households due to their “greater efficiencies in purchasing, production, and installation” in comparison to traditionally-built housing. These units are often the most affordable alternative – and last resort – for many facing homelessness. In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome parkowner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected. A park owner’s Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. SB 1108 will reduce the number of mobilehome evictions by extending the allotted time for a mobilehome owner to cure a violation from 30 days to 90 days and providing a copy of any violation notice to the park owner so they can better assist residents in curing violations.”
2. Inspections of mobilehome parks. Every year HCD is required to inspect at least 5% of the mobilehome parks it oversees. These inspections are intended to ensure that the park and homeowners are in compliance with the state’s health and safety laws. In some parts of the state a local government handles mobilehome park inspections instead of HCD. If an issue is found during a park inspection, or if HCD receives a health and safety complaint, a notice of violation is sent either to the mobilehome owner, the park’s management, or both. In cases where correcting the violation is the responsibility of the park, mobilehome park management is sent a notice detailing the violation. Such violations would include common area issues that are not on a lot with a mobilehome on it. When a resident violation is cited (e.g., loose handrail, a shed located too close to a lot line, etc.) HCD then sends a notice to the homeowner and provides 60 days to correct the issue. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator, and immediate correction is required.

In a 2020 audit of mobilehome park inspections, the State Auditor concluded that HCD had “not adequately communicated with residents during park inspections…HCD did not consistently notify residents of violations within required time frames, nor did it share all required information about the rights, responsibilities, and resources available to park residents. As a result, some residents may have missed opportunities to obtain help in correcting violations before parks initiated steps to evict them.”

When park operators or residents have not corrected violations after HCD conducts the reinspections, HCD may generally pursue enforcement by suspending the park’s permit to operate. Because mobilehome park operators are legally prohibited from charging residents rent when park permits are suspended, park operators have a financial incentive to address any outstanding violations. If HCD suspends a park’s permit to operate because of outstanding resident violations, the park operator can take legal action, such as eviction, against the noncompliant resident. When the park demonstrates that it has remedied all outstanding violations, HCD either reinstates the permit to operate or issues a new one. However, if the park fails to address outstanding health and safety violations, HCD may move to revoke the park’s permit to operate. HCD has an incentive to maintain a park’s permit to operate otherwise they lose their enforcement responsibility over non-permitted parks—HCD currently maintains enforcement responsibility for 82% of mobilehome parks and 76% of mobilehome park lots across the state. As of December 31, 2023, there were 36 mobilehome parks with a suspended permit to operate, compared to 37 parks in 2022.

1. Proposed changes to enforcement. In addition to indefinitely extending specific mobilehome park enforcement responsibilities that are currently scheduled to sunset on January 1, 2025, this bill requires the enforcement agency to exhaust all administrative and legal recourse against a resident before looking to the park owner or operator for corrective action. This language codifies provisions from an HCD Information bulletin (i.e., IB MP 1991-03) relating to the duties of enforcement agencies.

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

According to the Assembly Appropriations Committee:

• HCD estimates ongoing costs of approximately $840,000 annually (Mobilehome Park Revolving Fund or General Fund) for five staff positions to accommodate increased workload related to the extension of abatement period from 60 to 90 days and the requirement to exhaust all administrative and legal remedies before requesting that park owners correct a violation. Other duties would include developing and adopting updated program regulations and maintaining an ongoing list of local agencies with home rehabilitation and repair programs.
• HCD estimates one-time costs of approximately $310,000 (Mobilehome Park Revolving Fund or General Fund) for initial IT systems enhancements, and to update Mobilehome Park Maintenance (MPM) inspection program literature, notice of violation letters, and training manuals.

SUPPORT: (Verified 9/26/24)

Western Manufactured Housing Communities Association (source)

OPPOSITION: (Verified 9/26/24)

None received

GOVERNOR'S VETO MESSAGE:

I am returning Senate Bill 1108 without my signature. This bill would extend certain mobilehome park enforcement responsibilities and increase the time for mobilehome owners to correct non-imminent health and safety violations from 60 to 90 days. It also requires enforcement agencies to exhaust all administrative and legal remedies against a mobilehome owner before holding the park owner responsible for corrective action.

While this bill seeks to provide mobilehome owners more time to address violations, it could lead to unintended consequences. Extending the compliance period risks prolonging substandard living conditions in mobilehome parks, which could jeopardize the health and safety of residents. The ambiguities in the bill's provisions also may create confusion regarding enforcement authority and due process, complicating efforts to ensure timely resolution of violations.

Moreover, the bill would impose ongoing costs on the Department of Housing and Community Development (HCD) that were not accounted for in the 2024 Budget Act. In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure.

For these reasons, I cannot sign this bill.

ASSEMBLY FLOOR: 76-0, 8/30/24

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

NO VOTE RECORDED: Cervantes, Ortega, Schiavo

Prepared by: Alison Hughes / HOUSING / (916) 651-4124

10/8/24 16:44:19

**** END ****

 UNFINISHED BUSINESS  

Bill No: SB 1108

Author: Ochoa Bogh (R)

Amended: 8/26/24

Vote: 21

SENATE HOUSING COMMITTEE: 10-0, 3/19/24

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

SENATE JUDICIARY COMMITTEE: 11-0, 4/9/24

AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Laird, Min, Niello, Stern, Wahab

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24

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

SENATE FLOOR: 37-0, 5/23/24

AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

NO VOTE RECORDED: Allen, Archuleta, Newman

ASSEMBLY FLOOR: 55-0, 8/30/24 – Roll call not available

SUBJECT: Mobilehome parks: notice of violations

SOURCE: Western Manufactured Housing Communities Association

DIGEST:

This bill: (a) increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation; (b) requires the enforcement agency to exhaust all administrative and legal recourse against a mobilehome owner who fails to correct violations before looking to the park owner or operator for corrective action; and (c) indefinitely extends specified enforcement responsibilities over mobilehome parks.

Assembly Amendments

changed the start and end date of the bill’s period of effect to Janurary 1, 2027 to January 1, 2030 rather than the previous indefinite extension, and solved chaptering conflicts with AB 2247 (Wallis).

ANALYSIS:

Existing law:

1. Establishes the Mobilehome Residency Law (MRL), which regulates the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents.
2. Establishes the Mobilehome Parks Act (Act), governing mobilehome parks, and the Special Occupancy Parks Act, governing Special Occupancy Parks (such as RV parks), which establish requirements for the permits, fees, and responsibilities of park operators and enforcement agencies, including the Department of Housing and Community Development (HCD).
3. Gives HCD authority over mobilehome, special occupancy, and RV parks established by the aforementioned acts and laws. HCD’s main enforcement is over the Act and not the MRL.
4. Requires, until January 1, 2025, an enforcement agency, within 10 days after conducting an inspection and determining that a non-imminent violation exists, to issue a notice (i.e., a Notice of Violation) to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner.
5. Specifies, until January 1, 2025, that mobilehome owners are provided 60 days to correct the violation. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator and immediate correction is required.
6. Requires HCD, until January 1, 2025, to issue and serve upon a mobilehome park owner or operator a notice setting forth what provisions of the permit or statute have been violated, and notify the permittee (i.e., the mobilehome park owner or operator) that unless these provisions have been complied with within 30 days after the date of notice (i.e., after HCD’s 3^rd reinspection, the permittee receives a Notice of Intent to Suspend the Permit to Operate), the permit will be subject to suspension.

This bill:

1. Extends specific mobilehome park enforcement responsibilities indefinitely (currently scheduled to sunset on January 1, 2025).
2. Requires the enforcement agency to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action.
3. Requires an enforcement agency to provide 90 days (rather than 60 days) from the date of service of the notice of violation upon the tenant and park operator for the purpose of voluntary remediation, except as provided.

Background

Background on Mobilehomes. According to HCD, California has 4,656 mobilehome parks which contain 363,415 spaces for mobilehomes or manufactured homes. Mobilehomes make up nearly 4% of all housing in the state.

Mobilehome owners do not own the land the unit sits on and instead pay rent and fees to mobilehome park management, who see the property as an investment. These can be small, local enterprises or larger corporations that own multiple communities.

Unlike traditional single-family homes, mobilehomes are considered chattel (personal) property and not real property. As such, purchasing a mobilehome is often much less expensive than traditional site-built housing and mobilehomes represent an important source of affordable housing in the state, especially for seniors and low-income households who are increasingly priced out of traditional rental housing. However, the underlying reality of mobilehome ownership reveals a potential vulnerability. Much like conventional lease agreements, the costs associated with occupying a space in a mobilehome park are subject to increases over time, posing financial challenges for residents.

When land values increase or when infrastructure maintenance becomes too costly, investors may choose to close the community and sell the property for another use. Despites their name, mobilehomes are not truly mobile and it is often cost prohibitive (up to $20,000) to relocate them. Additionally, some older homes may not be able to be moved at all due to structural concerns and often parks will not accept older mobilehomes. Homeowners in this predicament are sometimes forced to abandon their homes when a community closes. The loss of scarce locations for manufactured and mobilehomes depletes this important housing resource.

Recognizing this, the state has passed several laws governing the relationship between mobilehome owners and park management. For example, under California’s MRL, mobilehome owners have protections against “no cause” evictions and can only be evicted from a park for a limited set of reasons including non-payment of rent, violation of park rules, or specified criminal activities.

Comments

1. Author’s statement. According to the author, “A 2023 study by Harvard University’s Joint Center for Housing Studies found that mobilehomes present an opportunity for homeownership for low-income households due to their “greater efficiencies in purchasing, production, and installation” in comparison to traditionally-built housing. These units are often the most affordable alternative – and last resort – for many facing homelessness. In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome parkowner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected. A park owner’s Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. SB 1108 will reduce the number of mobilehome evictions by extending the allotted time for a mobilehome owner to cure a violation from 30 days to 90 days and providing a copy of any violation notice to the park owner so they can better assist residents in curing violations.”
2. Inspections of mobilehome parks. Every year HCD is required to inspect at least 5% of the mobilehome parks it oversees. These inspections are intended to ensure that the park and homeowners are in compliance with the state’s health and safety laws. In some parts of the state a local government handles mobilehome park inspections instead of HCD.

If an issue is found during a park inspection, or if HCD receives a health and safety complaint, a notice of violation is sent either to the mobilehome owner, the park’s management, or both. In cases where correcting the violation is the responsibility of the park, mobilehome park management is sent a notice detailing the violation. Such violations would include common area issues that are not on a lot with a mobilehome on it. When a resident violation is cited (e.g., loose handrail, a shed located too close to a lot line, etc.) HCD then sends a notice to the homeowner and provides 60 days to correct the issue. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator, and immediate correction is required.

In a 2020 audit of mobilehome park inspections, the State Auditor concluded that HCD had “not adequately communicated with residents during park inspections…HCD did not consistently notify residents of violations within required time frames, nor did it share all required information about the rights, responsibilities, and resources available to park residents. As a result, some residents may have missed opportunities to obtain help in correcting violations before parks initiated steps to evict them.”

When park operators or residents have not corrected violations after HCD conducts the reinspections, HCD may generally pursue enforcement by suspending the park’s permit to operate. Because mobilehome park operators are legally prohibited from charging residents rent when park permits are suspended, park operators have a financial incentive to address any outstanding violations. If HCD suspends a park’s permit to operate because of outstanding resident violations, the park operator can take legal action, such as eviction, against the noncompliant resident. When the park demonstrates that it has remedied all outstanding violations, HCD either reinstates the permit to operate or issues a new one. However, if the park fails to address outstanding health and safety violations, HCD may move to revoke the park’s permit to operate. HCD has an incentive to maintain a park’s permit to operate otherwise they lose their enforcement responsibility over non-permitted parks—HCD currently maintains enforcement responsibility for 82% of mobilehome parks and 76% of mobilehome park lots across the state.

As of December 31, 2023, there were 36 mobilehome parks with a suspended permit to operate, compared to 37 parks in 2022.

1. Proposed changes to enforcement. In addition to indefinitely extending specific mobilehome park enforcement responsibilities that are currently scheduled to sunset on January 1, 2025, this bill requires the enforcement agency to exhaust all administrative and legal recourse against a resident before looking to the park owner or operator for corrective action. This language codifies provisions from an HCD Information bulletin (i.e., IB MP 1991-03) relating to the duties of enforcement agencies.

Related\Prior Legislation

AB 2002 (Villapudua, 2022) would have required HCD to establish a new program, upon appropriation, to provide grants or other funding to homeowners or occupants of mobilehomes or manufactured homes for making required repairs as identified by an enforcement agency. This bill was held in the Senate Appropriations Committee.

SB 915 (Leyva, 2020) would have prohibited mobilehome parks from evicting residents who notify park management of COVID-19 impacts to their ability to pay rent and requires parks to provide those residents with extra time to repay outstanding rent, utilities or other charges, or cure violations of park rules. This bill died in the Senate.

SB 1176 (Dunn, Chapter 622, Statutes of 2004) reduced the time allowed to correct specific health and safety code violations of the Mobilehome Park Maintenance Program, and makes changes in the notice provisions for mobilehome park rule changes.

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

According to the Assembly Appropriations Committee:

• HCD estimates ongoing costs of approximately $840,000 annually (Mobilehome Park Revolving Fund or General Fund) for five staff positions to accommodate increased workload related to the extension of abatement period from 60 to 90 days and the requirement to exhaust all administrative and legal remedies before requesting that park owners correct a violation. Other duties would include developing and adopting updated program regulations and maintaining an ongoing list of local agencies with home rehabilitation and repair programs.
• HCD estimates one-time costs of approximately $310,000 (Mobilehome Park Revolving Fund or General Fund) for initial IT systems enhancements, and to update Mobilehome Park Maintenance (MPM) inspection program literature, notice of violation letters, and training manuals.

SUPPORT: (Verified 8/12/24)

Western Manufactured Housing Communities Association (source)

OPPOSITION: (Verified 8/12/2024)

None received

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

8/30/24 17:27:08

**** END ****

SENATE THIRD READING

STR Bill Id:SB 1108

Author:(Ochoa Bogh)

As Amended Ver:August 26, 2024

Majority vote

SUMMARY

Increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation of the Mobilehome Parks Act (MPA), and makes other changes to the MPA, beginning January 1, 2027.

Major Provisions

1. Increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation of the MPA, beginning January 1, 2027.
2. Requires an enforcement agency, beginning January 1, 2027, to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action. Specifies that only then shall the enforcement agency request action by the park owner or operator to abate the cited violations.
3. Extends until January 1, 2030 specified enforcement responsibilities in the MPA which were scheduled to sunset on January 1, 2025.

COMMENTS

Background: More than one million people live in California's approximately 4,500 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 to their parkowner, unless the park is collectively owned by the residents, in which case the resident organization operates like a homeowners association.

The Mobilehome Residency Law (MRL) extensively regulates the relationship between landlords and homeowners who occupy a mobilehome park. A dispute that arises regarding the MRL generally must be resolved in a civil court of competent jurisdiction.

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

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. Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements under the MPA and Title 25 of the California Code of Regulations. In 2019, HCD reported that 63 local enforcement agencies in the state were responsible for enforcing the MPA for 860 mobilehome 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. If a mobilehome park or an individual park resident is found to be in violation of the MPA, the law requires the enforcement agency to promptly issue a notice to correct the violation or violations identified in the agency's inspection to the park owner or operator, or to the registered owner of the mobilehome.

If the park owner or operator does not correct the violations or otherwise violates the terms of their operating permit, the enforcement agency must notify the permit holder of the specific terms or provisions they are violating, and provide a 30-day window for the permittee to come into compliance. If the 30 days elapses with no compliance, the enforcement agency can suspend the permit to operate. Current law declares it unlawful for any person to operate a park or collect rents without a valid permit.

Notices of Violation: If a mobilehome park or an individual park resident is found to be in violation of the MPA, the law requires the enforcement agency to promptly issue a notice to correct the violation or violations identified in the agency's inspection to the park owner or operator, or to the registered owner of the mobilehome. For violations issued to individual homeowners, and in recognition of the challenge many lower income mobilehome residents might face in paying for what could be costly repairs or code compliance efforts, the law requires HCD to develop a list of local agencies that have home rehabilitation or repair programs available to homeowners. This bill extends from 60 to 90 days the allotted time a mobilehome owner has to cure a violation of the MPA that does not constitute an imminent threat to health and safety, beginning January 1, 2027.

In addition to extending for five years specific mobilehome park enforcement responsibilities that are currently scheduled to sunset on January 1, 2025, this bill also requires the enforcement agency to exhaust all administrative and legal recourse against a resident before looking to the park owner or operator for corrective action beginning January 1, 2027. This language codifies provisions from an HCD Information bulletin (IB MP 1991-03) relating to the duties of enforcement agencies.

According to the Author

"A 2023 study by Harvard University's Joint Center for Housing Studies found that manufactured homes present an opportunity for homeownership for low-income households due to their "greater efficiencies in purchasing, production, and installation" in comparison to traditionally built housing. These units are often the most affordable alternative – and last resort – for many facing homelessness.

In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome park owner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected.

A park owner's Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. This incentivizes park owners to begin eviction proceedings against an offending resident as soon as they receive a notice. SB 1108 will reduce the number of mobilehome evictions by extending the allotted time a resident has to cure an Act violation to 90 days. SB 1108 will also codify pre-existing HCD requirements relating to the duties of enforcement agencies to ensure every alternative is exhausted before a park owner has cause to evict."

Arguments in Support

According to the Western Manufactured Housing Communities Association (WMA), "WMA appreciates the intent behind SB 1108 of avoiding unnecessary eviction notices being served when many violations could be promptly cured if the mobilehome park owner is notified sooner than the current 30 days. Many of the violations involve issues such as damaged hand railings, damaged or missing skirting, and other issues that can be quickly and affordably corrected that do not involve an imminent danger to the health and safety of the residents of the mobilehome park."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

Beginning January 1, 2027, HCD estimates the following:

1. Ongoing costs of approximately $840,000 annually (Mobilehome Park Revolving Fund or General Fund) for five staff positions to accommodate increased workload related to the extension of abatement period from 60 to 90 days and the requirement to exhaust all administrative and legal remedies before requesting that park owners correct a violation. Other duties would include developing and adopting updated program regulations and maintaining an ongoing list of local agencies with home rehabilitation and repair programs.
2. One-time costs of approximately $310,000 (Mobilehome Park Revolving Fund or General Fund) for initial IT systems enhancements, and to update Mobilehome Park Maintenance (MPM) inspection program literature, notice of violation letters, and training manuals.

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

SENATE FLOOR: 37-0-3

YES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Allen, Archuleta, Newman

ASM HOUSING AND COMMUNITY DEVELOPMENT: 9-0-0

YES: Ward, Joe Patterson, Grayson, Kalra, Lee, Quirk-Silva, 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: August 26, 2024

CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0004622

SENATE THIRD READING

STR Bill Id:SB 1108

Author:(Ochoa Bogh)

As Amended Ver:August 19, 2024

Majority vote

SUMMARY

Increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation of the Mobilehome Parks Act (MPA), and makes other changes to the MPA, beginning January 1, 2027.

Major Provisions

1. Increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation of the MPA, beginning January 1, 2027.
2. Requires an enforcement agency, beginning January 1, 2027, to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action. Specifies that only then shall the enforcement agency request action by the park owner or operator to abate the cited violations.
3. Extends until January 1, 2030 specified enforcement responsibilities in the MPA which were scheduled to sunset on January 1, 2025.

COMMENTS

Background: More than one million people live in California's approximately 4,500 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 to their parkowner, unless the park is collectively owned by the residents, in which case the resident organization operates like a homeowners association.

The Mobilehome Residency Law (MRL) extensively regulates the relationship between landlords and homeowners who occupy a mobilehome park. A dispute that arises regarding the MRL generally must be resolved in a civil court of competent jurisdiction.

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

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. Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements under the MPA and Title 25 of the California Code of Regulations. In 2019, HCD reported that 63 local enforcement agencies in the state were responsible for enforcing the MPA for 860 mobilehome 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. If a mobilehome park or an individual park resident is found to be in violation of the MPA, the law requires the enforcement agency to promptly issue a notice to correct the violation or violations identified in the agency's inspection to the park owner or operator, or to the registered owner of the mobilehome.

If the park owner or operator does not correct the violations or otherwise violates the terms of their operating permit, the enforcement agency must notify the permit holder of the specific terms or provisions they are violating, and provide a 30-day window for the permittee to come into compliance. If the 30 days elapses with no compliance, the enforcement agency can suspend the permit to operate. Current law declares it unlawful for any person to operate a park or collect rents without a valid permit.

Notices of Violation: If a mobilehome park or an individual park resident is found to be in violation of the MPA, the law requires the enforcement agency to promptly issue a notice to correct the violation or violations identified in the agency's inspection to the park owner or operator, or to the registered owner of the mobilehome. For violations issued to individual homeowners, and in recognition of the challenge many lower income mobilehome residents might face in paying for what could be costly repairs or code compliance efforts, the law requires HCD to develop a list of local agencies that have home rehabilitation or repair programs available to homeowners. This bill extends from 60 to 90 days the allotted time a mobilehome owner has to cure a violation of the MPA that does not constitute an imminent threat to health and safety, beginning January 1, 2027.

In addition to extending for five years specific mobilehome park enforcement responsibilities that are currently scheduled to sunset on January 1, 2025, this bill also requires the enforcement agency to exhaust all administrative and legal recourse against a resident before looking to the park owner or operator for corrective action beginning January 1, 2027. This language codifies provisions from an HCD Information bulletin (IB MP 1991-03) relating to the duties of enforcement agencies.

According to the Author

"A 2023 study by Harvard University's Joint Center for Housing Studies found that manufactured homes present an opportunity for homeownership for low-income households due to their "greater efficiencies in purchasing, production, and installation" in comparison to traditionally built housing.^[1] These units are often the most affordable alternative – and last resort – for many facing homelessness.

In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome park owner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected.

A park owner's Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. This incentivizes park owners to begin eviction proceedings against an offending resident as soon as they receive a notice. SB 1108 will reduce the number of mobilehome evictions by extending the allotted time a resident has to cure an Act violation to 90 days. SB 1108 will also codify pre-existing HCD requirements relating to the duties of enforcement agencies to ensure every alternative is exhausted before a park owner has cause to evict."

Arguments in Support

According to the Western Manufactured Housing Communities Association (WMA), "WMA appreciates the intent behind SB 1108 of avoiding unnecessary eviction notices being served when many violations could be promptly cured if the mobilehome park owner is notified sooner than the current 30 days. Many of the violations involve issues such as damaged hand railings, damaged or missing skirting, and other issues that can be quickly and affordably corrected that do not involve an imminent danger to the health and safety of the residents of the mobilehome park."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

Beginning January 1, 2027, HCD estimates the following:

1. Ongoing costs of approximately $840,000 annually (Mobilehome Park Revolving Fund or General Fund) for five staff positions to accommodate increased workload related to the extension of abatement period from 60 to 90 days and the requirement to exhaust all administrative and legal remedies before requesting that park owners correct a violation. Other duties would include developing and adopting updated program regulations and maintaining an ongoing list of local agencies with home rehabilitation and repair programs.
2. One-time costs of approximately $310,000 (Mobilehome Park Revolving Fund or General Fund) for initial IT systems enhancements, and to update Mobilehome Park Maintenance (MPM) inspection program literature, notice of violation letters, and training manuals.

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

SENATE FLOOR: 37-0-3

YES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Allen, Archuleta, Newman

ASM HOUSING AND COMMUNITY DEVELOPMENT: 9-0-0

YES: Ward, Joe Patterson, Grayson, Kalra, Lee, Quirk-Silva, 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: August 19, 2024

CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0003926

1. Harvard, 2023 ↑

Date of Hearing: July 2, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 1108

Author:(Ochoa Bogh) – As Amended Ver:April 11, 2024

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

SUMMARY:

This bill indefinitely extends provisions in the Mobilehome Parks Act (MPA) authorizing the Department of Housing and Community Development (HCD) and local enforcement agencies to enforce the MPA and issue notices to correct violations. This bill also extends the time period for residents to correct violations and requires HCD to exhaust all administrative and legal recourse against a resident who fails to correct a violation before requesting action by a park owner or operator to abate a violation

Specifically, this bill:

Recasts existing Health and Safety Code Section 18240, which sunsets on January 1, 2025, into a new Health and Safety Code Section 18408, without a sunset date, and makes the following changes:

1. Requires an enforcement agency, rather than HCD, to develop a specified list of local agencies with home rehabilitation or repair programs for which mobilehome owners or occupants may be eligible, and provide that list to owners or occupants who have received a notice of violation.
2. Allows 90 days, rather than 60 days, from the postmarked date of a notice of violation, or the date of delivery of that notice, for a mobilehome owner to cure a non-imminent health and safety violation of the MPA, as specified.
3. Requires an enforcement agency to exhaust all administrative and legal recourse against a resident who fails to correct violations before requesting action by the mobilehome park owner or operator to take corrective action to abate cited violations.

FISCAL EFFECT:

1. HCD estimates ongoing costs of approximately $840,000 annually (Mobilehome Park Revolving Fund or General Fund) for five staff positions to accommodate increased workload related to the extension of abatement period from 60 to 90 days and the requirement to exhaust all administrative and legal remedies before requesting that park owners correct a violation. Other duties would include developing and adopting updated program regulations and maintaining an ongoing list of local agencies with home rehabilitation and repair programs.
2. HCD estimates one-time costs of approximately $310,000 (Mobilehome Park Revolving Fund or General Fund) for initial IT systems enhancements, and to update Mobilehome Park Maintenance (MPM) inspection program literature, notice of violation letters, and training manuals.

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. According to the author:

A park owner’s permit to operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. This incentivizes park owners to begin eviction proceedings against an offending resident as soon as they receive a notice. [This bill] will reduce the number of mobilehome evictions by extending the allotted time a resident has to cure an [MPA] violation to 90 days. [This bill] will also codify pre-existing HCD requirements relating to the duties of enforcement agencies to ensure every alternative is exhausted before a park owner has cause to evict.

1. Background. Under existing law, the MPA requires HCD or a local enforcement agency to inspect any mobilehome park that has a history of the most serious health and safety code violations, or complaints regarding these violations, with a goal of inspecting 5% of all parks each year. HCD or a local enforcement agency collects a per-space fee of $4 annually from mobilehome park owners to fund the program. A park owner may charge half of that amount to individual mobilehome owners. Existing law also requires HCD and local enforcement authorities to issue notices of violation to park owners or operators and mobilehome owners when it discovers violations of the MPA. HCD must also compile a list of local agencies that have home rehabilitation or repair programs and provide the list to mobilehomeowners or occupants that receive a notice of violation.

Existing law requires the notice of violation to allow 60 days to correct or abate the condition constituting the violation, if the condition is not an imminent threat to health and safety. HCD may extend the correction time by 30 days or an additional reasonable period if, after reinspection, HCD determines there is a valid reason for the violation not being corrected. The MPM inspection program and the requirement to issue notices of violations discovered in connection with an inspection are scheduled to sunset on January 1, 2025.

The MPA requires each mobilehome park owner 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 may suspend an operating permit in the event of substandard conditions at the park or other violations of the MPA. If a violation of the MPA is found, the enforcement agency must promptly issue a notice to correct the violation to the park owner or operator, or to the registered owner of the mobilehome. If the park owner or operator does not correct the violation, the enforcement agency must provide a 30-day window for the permittee to come into compliance. If the 30 days elapses with no compliance, the enforcement agency may suspend the permit to operate. It is unlawful to operate a park without a valid permit to operate.

More than one million people live in California's approximately 4,500 mobilehome parks. HCD has enforcement responsibility over approximately 82% of the parks and 76% of the individual lots; local enforcement agencies have enforcement responsibilities over the remaining parks and lots. HCD indicates it met its goal of inspecting 5% of all parks under its jurisdiction in 2023, inspecting 195 parks that include 6,493 lots, resulting in the correction of 3,374 resident violations (728 remain uncorrected) and 1,259 park violations (270 remain uncorrected).

1. Related Legislation. AB 2247 (Wallis), of this legislative session, extends the sunset date on the MPA from January 1, 2025, to January 1, 2030, and requires a notice of violation to include information about the Manufactured Housing Opportunity and Revitalization Program. AB 2247 is pending in the Senate Appropriations Committee.
2. Prior Legislation. AB 319 (Connolly), Chapter 737, Statutes of 2023, extended the MPA and MPM inspection program until January 1, 2025.

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

Date of Hearing: June 26, 2024

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Christopher M. Ward, Chair

SBPCA Bill Id:SB 1108

Author:(Ochoa Bogh) – As Amended Ver:April 11, 2024

SENATE VOTE: 37-0

SUBJECT: Mobilehome parks: notice of violations

SUMMARY: Increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation of the Mobilehome Parks Act (MPA), and makes other changes to the MPA. Specifically, this bill:

1. Increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation of the MPA.
2. Requires an enforcement agency to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action. Specifies that only then shall the enforcement agency request action by the park owner or operator to abate the cited violations.
3. Indefinitely extends specified enforcement responsibilities in the MPA which were scheduled to sunset on January 1, 2025.

EXISTING LAW:

1. Establishes the MPA, which establishes requirements for the permits, fees, and responsibilities of park operators and enforcement agencies, including the Department of Housing and Community Development (HCD). (Health and Safety Code (HSC) Section 18200 et seq.)
2. Requires, until January 1, 2025, an enforcement agency, within 10 days after conducting an inspection and determining that a non-imminent violation exists, to issue a notice (i.e., a Notice of Violation) to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner. (HSC 18420)
3. Specifies, until January 1, 2025, that mobilehome owners are provided 60 days to correct the violation. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator and immediate correction is required. (HSC 18420)

FISCAL EFFECT: Unknown.

COMMENTS:

Author’s Statement: According to the author, “A 2023 study by Harvard University’s Joint Center for Housing Studies found that manufactured homes present an opportunity for homeownership for low-income households due to their “greater efficiencies in purchasing, production, and installation” in comparison to traditionally built housing.^[1] These units are often the most affordable alternative – and last resort – for many facing homelessness.

In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome park owner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected.

A park owner’s Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. This incentivizes park owners to begin eviction proceedings against an offending resident as soon as they receive a notice. SB 1108 will reduce the number of mobilehome evictions by extending the allotted time a resident has to cure an Act violation to 90 days. SB 1108 will also codify pre-existing HCD requirements relating to the duties of enforcement agencies to ensure every alternative is exhausted before a park owner has cause to evict.”

Background: More than one million people live in California's approximately 4,500 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 to their parkowner, unless the park is collectively owned by the residents, in which case the resident organization operates like a homeowners association.

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

HCD oversees several areas of mobilehome law, including health and safety standards, registration and titling of mobilehomes and parks, and, through the Mobilehome Ombudsman, assists the public with questions or problems associated with various aspects of mobilehome law. The Mobilehome Ombudsman provides assistance by taking complaints and helping to resolve and coordinate the resolution of those complaints. However, the Ombudsman does not have enforcement authority for the MRL, and cannot arbitrate, mediate, negotiate, or provide legal advice on mobilehome park rent disputes, lease or rental agreements, but may provide general information on these issues. The Mobilehome Residency Law Protection Program at HCD also intakes resident complaints regarding alleged violations of the MRL and refers complaints to legal service providers.

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. Under the Mobilehome Park Maintenance (MPM) program, HCD annually inspects 5% of parks for compliance with health and safety requirements under the MPA and Title 25 of the California Code of Regulations. In 2019, HCD reported that 63 local enforcement agencies in the state were responsible for enforcing the MPA for 860 mobilehome 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. If a mobilehome park or an individual park resident is found to be in violation of the MPA, the law requires the enforcement agency to promptly issue a notice to correct the violation or violations identified in the agency’s inspection to the park owner or operator, or to the registered owner of the mobilehome.

If the park owner or operator does not correct the violations or otherwise violates the terms of their operating permit, the enforcement agency must notify the permit holder of the specific terms or provisions they are violating, and provide a 30-day window for the permittee to come into compliance. If the 30 days elapses with no compliance, the enforcement agency can suspend the permit to operate. Current law declares it unlawful for any person to operate a park or collect rents without a valid permit.

Notices of Violation: If a mobilehome park or an individual park resident is found to be in violation of the MPA, the law requires the enforcement agency to promptly issue a notice to correct the violation or violations identified in the agency’s inspection to the park owner or operator, or to the registered owner of the mobilehome. For violations issued to individual homeowners, and in recognition of the challenge many lower income mobilehome residents might face in paying for what could be costly repairs or code compliance efforts, the law requires HCD to develop a list of local agencies that have home rehabilitation or repair programs available to homeowners. This bill extends from 60 to 90 days the allotted time a mobilehome owner has to cure a violation of the MPA that does not constitute an imminent threat to health and safety.

In addition to indefinitely extending specific mobilehome park enforcement responsibilities that are currently scheduled to sunset on January 1, 2025, this bill also requires the enforcement agency to exhaust all administrative and legal recourse against a resident before looking to the park owner or operator for corrective action. This language codifies provisions from an HCD Information bulletin (IB MP 1991-03) relating to the duties of enforcement agencies.

Arguments in Support: According to the Western Manufactured Housing Communities Association (WMA), “WMA appreciates the intent behind SB 1108 of avoiding unnecessary eviction notices being served when many violations could be promptly cured if the mobilehome park owner is notified sooner than the current 30 days. Many of the violations involve issues such as damaged hand railings, damaged or missing skirting, and other issues that can be quickly and affordably corrected that do not involve an imminent danger to the health and safety of the residents of the mobilehome park.”

Arguments in Opposition: None on file.

Related Legislation:

AB 2247 (Wallis) of the current legislative session would extend the sunset date on the MPA from January 1, 2025 to January 1, 2030, and requires a notice of violation to include information about the Manufactured Housing Opportunity and Revitalization Program. AB 2247 is currently pending before the Senate Housing Committee.

AB 319 (Connolly), Chapter 737, Statutes of 2023: Extended the MPA and MPM inspection program until January 1, 2025.

SB 46 (Leyva), Chapter 835, Statutes of 2018: Extended the MPM inspection program until January 1, 2024.

SB 951 (Correa), Statutes of 2010: Extended the MPM inspection program until January 1, 2019.

AB 2250 (Coto), Chapter 858, Statutes of 2006: Set the goal that 5% of parks would be inspected under the MPM inspection program each year.

SB 1231 (Dunn), Chapter 644, Statutes of 2006: Extended the sunset date on the MPM inspection program until January, 1, 2012, and increased the frequency of the MPM task force meetings to every six months, but did not increase the fee.

SB 106 (Dunn) of the 2005-2006 Session would have deleted the 2007 sunset date on the MPM inspection program and increase the $4 fee to $6 for the inspections. This bill was vetoed by the Governor.

SB 700 (O'Connell), Chapter 520, Statutes of 1999: Extended the MPM inspection program until January 1, 2007, and made some changes to the program.

AB 925 (O'Connell), Chapter 1125, Statutes of 1990: Created the MPM inspection program and required HCD or a local enforcement agency to inspect every mobilehome and every mobilehome park in the state once every five years.

REGISTERED SUPPORT / OPPOSITION:

Support

Western Manufactured Housing Communities Association (Sponsor)

Southern California Rental Housing Association

Opposition

None on file.

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

1. Harvard, 2023 ↑

 THIRD READING  

Bill No: SB 1108

Author: Ochoa Bogh (R)

Amended: 4/11/24

Vote: 21

SENATE HOUSING COMMITTEE: 10-0, 3/19/24

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

SENATE JUDICIARY COMMITTEE: 11-0, 4/9/24

AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Laird, Min, Niello, Stern, Wahab

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24

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

SUBJECT: Mobilehome parks: notice of violations

SOURCE: Western Manufactured Housing Communities Association

DIGEST:

This bill (1) increases from 60 to 90 days the allotted time for a mobilehome owner to cure a non-imminent health and safety violation; (2) requires the enforcement agency to exhaust all administrative and legal recourse against a mobilehome owner who fails to correct violations before looking to the park owner or operator for corrective action; and (3) indefinitely extends specified enforcement responsibilities over mobilehome parks.

ANALYSIS:

Existing law:

1. Establishes the Mobilehome Residency Law (MRL), which regulates the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents.
2. Establishes the Mobilehome Parks Act (Act), governing mobilehome parks, and the Special Occupancy Parks Act, governing Special Occupancy Parks (such as RV parks), which establish requirements for the permits, fees, and responsibilities of park operators and enforcement agencies, including the Department of Housing and Community Development (HCD).
3. Gives HCD authority over mobilehome, special occupancy, and RV parks established by the aforementioned acts and laws. HCD’s main enforcement is over the Act and not the MRL.
4. Requires, until January 1, 2025, an enforcement agency, within 10 days after conducting an inspection and determining that a non-imminent violation exists, to issue a notice (i.e., a Notice of Violation) to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner.
5. Specifies, until January 1, 2025, that mobilehome owners are provided 60 days to correct the violation. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator and immediate correction is required.
6. Requires HCD, until January 1, 2025, to issue and serve upon a mobilehome park owner or operator a notice setting forth what provisions of the permit or statute have been violated, and notify the permittee (i.e., the mobilehome park owner or operator) that unless these provisions have been complied with within 30 days after the date of notice (i.e., after HCD’s 3^rd reinspection, the permittee receives a Notice of Intent to Suspend the Permit to Operate), the permit will be subject to suspension.

This bill:

1. Extends specific mobilehome park enforcement responsibilities indefinitely (currently scheduled to sunset on January 1, 2025).
2. Requires the enforcement agency to be responsible for exhausting all administrative and legal recourse against a resident who fails to correct violations before looking to the mobilehome park owner or operator for corrective action.
3. Requires an enforcement agency to provide 90 days (rather than 60 days) from the date of service of the notice of violation upon the tenant and park operator for the purpose of voluntary remediation, except as provided.

Background

According to HCD, California has 4,656 mobilehome parks which contain 363,415 spaces for mobilehomes or manufactured homes. Mobilehomes make up nearly 4% of all housing in the state.

Mobilehome owners do not own the land the unit sits on and instead pay rent and fees to mobilehome park management, who see the property as an investment. These can be small, local enterprises or larger corporations that own multiple communities.

Unlike traditional single-family homes, mobilehomes are considered chattel (personal) property and not real property. As such, purchasing a mobilehome is often much less expensive than traditional site-built housing and mobilehomes represent an important source of affordable housing in the state, especially for seniors and low-income households who are increasingly priced out of traditional rental housing. However, the underlying reality of mobilehome ownership reveals a potential vulnerability. Much like conventional lease agreements, the costs associated with occupying a space in a mobilehome park are subject to increases over time, posing financial challenges for residents.

When land values increase or when infrastructure maintenance becomes too costly, investors may choose to close the community and sell the property for another use. Despites their name, mobilehomes are not truly mobile and it is often cost prohibitive (up to $20,000) to relocate them. Additionally, some older homes may not be able to be moved at all due to structural concerns and often parks will not accept older mobilehomes. Homeowners in this predicament are sometimes forced to abandon their homes when a community closes. The loss of scarce locations for manufactured and mobilehomes depletes this important housing resource.

Recognizing this, the state has passed several laws governing the relationship between mobilehome owners and park management. For example, under California’s MRL, mobilehome owners have protections against “no cause” evictions and can only be evicted from a park for a limited set of reasons including non-payment of rent, violation of park rules, or specified criminal activities.

Comments

1. Author’s statement. According to the author, “A 2023 study by Harvard University’s Joint Center for Housing Studies found that mobilehomes present an opportunity for homeownership for low-income households due to their “greater efficiencies in purchasing, production, and installation” in comparison to traditionally-built housing. These units are often the most affordable alternative – and last resort – for many facing homelessness. In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome parkowner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected. A park owner’s Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. SB 1108 will reduce the number of mobilehome evictions by extending the allotted time for a mobilehome owner to cure a violation from 30 days to 90 days and providing a copy of any violation notice to the park owner so they can better assist residents in curing violations.”
2. Inspections of mobilehome parks. Every year HCD is required to inspect at least 5% of the mobilehome parks it oversees. These inspections are intended to ensure that the park and homeowners are in compliance with the state’s health and safety laws. In some parts of the state a local government handles mobilehome park inspections instead of HCD.

If an issue is found during a park inspection, or if HCD receives a health and safety complaint, a notice of violation is sent either to the mobilehome owner, the park’s management, or both. In cases where correcting the violation is the responsibility of the park, mobilehome park management is sent a notice detailing the violation. Such violations would include common area issues that are not on a lot with a mobilehome on it. When a resident violation is cited (e.g., loose handrail, a shed located too close to a lot line, etc.) HCD then sends a notice to the homeowner and provides 60 days to correct the issue. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator, and immediate correction is required.

In a 2020 audit of mobilehome park inspections, the State Auditor concluded that HCD had “not adequately communicated with residents during park inspections…HCD did not consistently notify residents of violations within required time frames, nor did it share all required information about the rights, responsibilities, and resources available to park residents. As a result, some residents may have missed opportunities to obtain help in correcting violations before parks initiated steps to evict them.”

When park operators or residents have not corrected violations after HCD conducts the reinspections, HCD may generally pursue enforcement by suspending the park’s permit to operate. Because mobilehome park operators are legally prohibited from charging residents rent when park permits are suspended, park operators have a financial incentive to address any outstanding violations. If HCD suspends a park’s permit to operate because of outstanding resident violations, the park operator can take legal action, such as eviction, against the noncompliant resident. When the park demonstrates that it has remedied all outstanding violations, HCD either reinstates the permit to operate or issues a new one. However, if the park fails to address outstanding health and safety violations, HCD may move to revoke the park’s permit to operate. HCD has an incentive to maintain a park’s permit to operate otherwise they lose their enforcement responsibility over non-permitted parks—HCD currently maintains enforcement responsibility for 82% of mobilehome parks and 76% of mobilehome park lots across the state.

As of December 31, 2023, there were 36 mobilehome parks with a suspended permit to operate, compared to 37 parks in 2022.

1. Proposed changes to enforcement. In addition to indefinitely extending specific mobilehome park enforcement responsibilities that are currently scheduled to sunset on January 1, 2025, this bill requires the enforcement agency to exhaust all administrative and legal recourse against a resident before looking to the park owner or operator for corrective action. This language codifies provisions from an HCD Information bulletin (i.e., IB MP 1991-03) relating to the duties of enforcement agencies.

Related/Prior Legislation

AB 2002 (Villapudua, 2022) would have required HCD to establish a new program, upon appropriation, to provide grants or other funding to homeowners or occupants of mobilehomes or manufactured homes for making required repairs as identified by an enforcement agency. This bill was held in the Senate Appropriations Committee.

SB 915 (Leyva, 2020) would have prohibited mobilehome parks from evicting residents who notify park management of COVID-19 impacts to their ability to pay rent and requires parks to provide those residents with extra time to repay outstanding rent, utilities or other charges, or cure violations of park rules. This bill died in the Senate.

SB 1176 (Dunn, Chapter 622, Statutes of 2004) reduced the time allowed to correct specific health and safety code violations of the Mobilehome Park Maintenance Program, and makes changes in the notice provisions for mobilehome park rule changes.

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

According to the Senate Appropriations Committee:

• HCD estimates one-time first year costs of approximately $310,000 in for initial IT systems enhancements and to update Mobilehome Park Maintenance literature, notice of violation letters, and training manuals. (Mobilehome Park Revolving Fund or General Fund)
  
• HCD estimates ongoing annual costs of approximately $810,000 and 5.0 PY of staff, beginning in 2025-26 to develop and adopt updated program regulations, maintain a list of local agencies that have home rehabilitation and repair programs on an ongoing basis, and primarily for increased complaint and enforcement workload related to the extension of abatement period from 60 to 90 days and the requirement to exhaust all administrative and legal remedies before requesting that park owners correct a violation. (Mobilehome Park Revolving Fund or General Fund)

SUPPORT: (Verified 5/16/24)

Western Manufactured Housing Communities Association (source)

OPPOSITION: (Verified 5/16/24)

None received

Prepared by: Erin Riches / HOUSING / (916) 651-4124

5/17/24 17:19:20

**** END ****

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

SB 1108 (Ochoa Bogh) - Mobilehome parks: notice of violations

Bill Summary:

SB 1108 would indefinitely extend provisions in the Mobilehome Parks Act (MPA) that provide authority for the Department of Housing and Community Development (HCD) and local enforcement agencies to enforce the MPA and issue notices to correct violations. The bill would also extend the time period for residents to correct violations and require HCD to exhaust all administrative and legal recourse against a resident who fails to correct a violation before requesting action by a park owner or operator to abate a violation.

Fiscal Impact:

• HCD estimates one-time first year costs of approximately $310,000 in for initial IT systems enhancements and to update Mobilehome Park Maintenance literature, notice of violation letters, and training manuals. (Mobilehome Park Revolving Fund or General Fund)
  
• HCD estimates ongoing annual costs of approximately $810,000 and 5.0 PY of staff, beginning in 2025-26 to develop and adopt updated program regulations, maintain a list of local agencies that have home rehabilitation and repair programs on an ongoing basis, and primarily for increased complaint and enforcement workload related to the extension of abatement period from 60 to 90 days and the requirement to exhaust all administrative and legal remedies before requesting that park owners correct a violation. (Mobilehome Park Revolving Fund or General Fund)

Background:

Under existing law, the MPA requires HCD or a local enforcement agency to inspect mobilehome parks that have had a history of the most serious health and safety code violations, or complaints regarding these violations, with a goal of inspecting five percent of all parks each year. HCD or a local enforcement agency collects a per space fee of $4 annually from mobilehome park owners to fund the program. A park owner may charge half of that amount to individual mobilehome owners. Existing law also requires HCD and local enforcement authorities to issue notices of violation to park owners/operators and mobilehome owners when it discovers violations of the MPA. HCD must also compile a list of local agencies that have home rehabilitation or repair programs and provide the list to mobilehomeowners or occupants that receive a notice of violation. Existing law requires the notice of violation to allow 60 days to correct or abate the condition constituting the violation, if the condition is not an imminent threat to health and safety. HCD may extend the correction time by 30 days or an additional reasonable period if, after reinspection, the department determines there is a valid reason for the violation not being corrected. The Mobilehome Park Maintenance (MPM) inspection program and the requirement to issue notices of violations discovered in connection with an inspection are scheduled to sunset on January 1, 2025.

The MPA also requires each mobilehome park owner 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. If a mobilehome park or an individual park resident is found to be in violation of the MPA, the law requires the enforcement agency to promptly issue a notice to correct the violation or violations identified in the agency’s inspection to the park owner or operator, or to the registered owner of the mobilehome. If the park owner or operator does not correct the violations or otherwise violates the terms of their operating permit, the enforcement agency must notify the permit holder of the specific terms or provisions they are violating, and provide a 30-day window for the permittee to come into compliance. If the 30 days elapses with no compliance, the enforcement agency can suspend the permit to operate. Current law declares it unlawful for any person to operate a park or collect rents without a valid permit.

There are currently 5,187 mobilehome and special occupancy parks in the state (4,471 are mobilehome parks) that contain 452,311 lots (362,731 are mobilehome lots). HCD has enforcement responsibility over approximately 82 percent of the parks and 76 percent of the individual lots; local enforcement agencies have enforcement responsibilities over the remaining parks and lots. In its March 15, 2024 report to the MPM task force, HCD indicates that it has met its goal of inspecting five percent of all parks under its jurisdiction in 2023, inspecting 195 parks that include 6,493 lots, resulting in the correction of 3,374 resident violations (728 remain uncorrected) and 1,259 park violations (270 remain uncorrected).

Proposed Law:

SB 1108 would recast, revise, and indefinitely extend a provision of the MPA that authorizes HCD and other enforcement agencies, after conducting an inspection, to issue notices to correct violations. Specifically, this bill would recast existing Health and Safety Code Section 18240, which sunsets on January 1, 2025, into a new Health and Safety Code Section 18408, without a sunset date, and make the following changes:

• Require an enforcement agency, rather than HCD, to develop a specified list of local agencies that have home rehabilitation or repair programs for which mobilehome owners or occupants may be eligible, and provide that list to owners or occupants who have received a notice of violation.
• Allow 90 days, rather than 60 days, from the postmarked date of a notice of violation, or the date of delivery of that notice, for the elimination of the condition constituting an alleged violation, if the violation is not an imminent threat to health and safety, as specified.
• Require an enforcement agency to exhaust all administrative and legal recourse against a resident who fails to correct violations before requesting action by the mobilehome park owner or operator to take corrective action to abate cited violations.

Related Legislation:

AB 2247 (Wallis), which is currently pending in the Assembly Appropriations Committee, would extend the sunset date of the MPM inspection program, the requirements related to notices of violations of the MPA, and the fees that support the inspection program to January 1, 2030. The bill would also require HCD to include information on the Manufactured Housing Opportunity and Revitalization (MORE) Program with notices of violation.

AB 319 (Connolly), Chap. 747/2023, extended the sunset date for the MPM inspection program and the $4 per space annual fee that supports the inspection program to January 1, 2025, and required HCD to establish conflict of interest reporting requirements for mobilehome park inspectors.

AB 2002 (Villapudua), which was held on this Committee’s Suspense File in 2022, would have required HCD to establish a new program to assist owners or occupants of mobilehomes and manufactured homes in making repairs identified by an enforcement agency, subject to an appropriation by the Legislature to provide grant funds.

SB 1176 (Dunn), Chap. 622/2004, included a provision that reduced the time HCD must allow a resident or park to correct a violation of the MPA or related regulations from 90 days to 60 days, plus a potential 30 day or reasonable time extension.

Staff Comments:

Staff notes that the MPM inspection program, the $4 per space fee that supports the inspection program, and the authority to enforce the MPA and issue notices of violation all are scheduled to sunset on January 1, 2025. This bill only recasts and revises the provision that provides authority to enforce the MPA and issue notices of violation, as specified, and removes the sunset on that authority altogether, thereby indefinitely extending that provision. As noted above, AB 2247 (Wallis), which is currently pending in the Assembly, would extend the operation of the MPM inspection program, the requirements related to enforcement of the MPA and the authority to issue notices of violation, and the authority to collect the $4 per space fee that supports the inspection program from January 1, 2025 to January 1, 2030. To the extent that SB 1108 is enacted, but AB 2247 is not, the costs associated with this bill would be a General Fund expenditure since the fees supporting inspection and issuance of notices of violation could no longer be collected. If both bills are enacted, there would be duplicative and inconsistent provisions of law related to the enforcement of the MPA and authority to issue notices of violation (enactment of Health and Safety Code Section 18408, and the continuance of existing Section 18420).

Staff notes that SB 1176 (Dunn), Chap. 622/2004, included a provision that reduced the timeframe for a resident to correct a violation of the MPA from 90 days to 60 days. This bill would revert the timeframes to those that were in law prior to the enactment of SB 1176.

-- END --

SENATE JUDICIARY COMMITTEE

Senator Thomas Umberg, Chair

2023-2024 Regular Session

Bill No: SB 1108 (Author:Ochoa Bogh)

Version: March 21, 2024

Hearing Date: April 9, 2024

Fiscal: Yes

Urgency: No

Consultant: ID

SUBJECT

Mobilehome parks: notice of violations

DIGEST

This bill indefinitely extends provisions of the Mobilehome Parks Act (MPA) relating to the Department of Housing and Community Development’s (HCD) enforcement authority of the health and safety standards for mobilehome parks, and makes changes requiring HCD to mail a copy of a first notice of violation for a resident’s violation of the MPA or related regulations to the park’s designated responsible person, increasing the time allowed for correction of a violation from 60 to 90 days, and makes HCD responsible for exhausting all administrative and legal recourse against a resident before requiring action by the mobilehome park.

EXECUTIVE SUMMARY

Mobilehomes and the mobilehome parks in which they often reside are an important source of affordable housing in California. Because mobilehomes are pre-fabricated and can be moved, mobilehome owners often own their mobilehome, but lease the lot on which it sits from the owner of a mobilehome park. The Mobilehome Parks Act (MPA) was enacted to regulate the construction, maintenance, and occupancy of mobilehome parks and mobilehomes to ensure protection of the health, safety, and general welfare of all mobilehome park residents. HCD is charged with enforcing the MPA, and is required to inspect mobilehome parks for violations of the MPA and corresponding regulation. The MPA prescribes the process for which HCD issues notices of violations and engages in enforcement actions against a park or a mobilehome owner who is in violation of the MPA. The MPA’s provisions for noticing violations and instituting enforcement for the correction of a violation are set to sunset on January 1, 2025. This bill extends those provisions indefinitely, with some changes. The bill is sponsored by the Western Manufactured Housing Communities Association. The Committee received no timely opposition. This bill passed the Senate Housing Committee on a vote of 10 to 0.

PROPOSED CHANGES TO THE LAW

Existing law:

1. Establishes the Mobilehome Residency Law (MRL) to regulate the relationship between mobilehome park management and park residents, and establishes various rights, responsibilities and limits of both groups. (Civ. Code § 798 et seq.)
2. Specifies that a mobilehome park may only evict a resident for: failing to comply with a local or state law or regulation on mobilehomes within a reasonable time after the homeowner receives notice of noncompliance; conduct of the resident that amounts to a substantial annoyance of other homeowners or residents; conviction for certain crimes; failure to comply with a reasonable rule of the park; or for nonpayment of rent, utilities, or other reasonable incidental services charged by the park. (Civ. Code § 798.56.)
3. Creates the Mobilehome Parks Act (MPA) to regulate the construction, maintenance, occupancy, use, and design of mobilehome parks to assure protection of the health, safety, and general welfare of all mobilehome park residents, and guarantee park residents maximum protection of their investment and a decent living environment. (Health & Saf. Code §§ 18200 et seq.)
4. Excludes from its provisions any park owned, operated, and maintained by the federal government, the state, any agency or political subdivision of the state, or any city, county, or city and county. Also excludes any apartment house, hotel, or dwelling under certain provisions, or any utilities facilities owned, operated, and maintained by a public utility. (Health & Saf. Code §§ 18303-18304.)
5. Provides that HCD enforces the provisions of the MPA, except where a city, county, or city and county has elected to assume responsibility for enforcement, notified HCD, and had their request to assume authority approved by HCD. (Health & Saf. Code §§ 18300, 18400.)
6. Provides HCD the authority to promulgate regulations relating to the MPA and its enforcement, and authorizes HCD officers or agents to enter public or private property to determine whether there is a park to which the MPA applies on the property, and to enter and inspect all parks and examine any registers of occupants for enforcement purposes. (Health & Saf. Code § 18400.)
7. Establishes the Mobilehome Park Maintenance inspection program and requires HCD to enter and inspect mobilehome parks to ensure enforcement of the MPA and related regulations, with a goal of inspecting at least five percent of the parks in the state per year. Requires inspections to include an inspection of the exterior of mobilehomes in each park inspected. Requires HCD to inspect the mobilehome parks that it determines have complaints made to the agency regarding serious health and safety violations. (Health & Saf. Code § 18400.1.)
8. Requires that HCD provide individual written notice of an inspection to mobilehome owners and occupants, and to the park owner or operator and the responsible person, at least 30 days before the inspection. Requires HCD to coordinate a pre-inspection orientation for mobilehome owners and park operators at least 30 days prior to the inspection. (Health & Saf. Code § 18400.1(d)-(f).)
9. Requires a mobilehome park owner or operator to abate any nuisance in the park within five days, or within any longer period set by HCD, of receiving written notice to remove the nuisance. Requires that the District Attorney of the county in which the park or the greater portion of the park is located to bring a civil action in the Superior Court of the county to abate the nuisance. Allows that an Attorney General, a county counsel, or a city attorney or prosecutor may also bring a civil action to abate the nuisance. (Health & Saf. Code § 18402.)
10. Provides that, if any park is constructed, altered, converted, used, occupied, or maintained in violation of the MPA, related regulations, or any order or notice issued by HCD, HCD may institute any appropriate action or proceeding to prevent, restrain, correct, or abate the violation, and that a Superior Court may make any order on an application for such an action from HCD. (Health & Saf. Code § 18404.)
11. Requires that, if HCD or another enforcement agency determines that a mobilehome park is in violation of the MPA or any regulation adopted pursuant to the MPA after an inspection, HCD must promptly, but no later than 10 days after the inspection, issue a notice to correct the violation to the owner or operator of the park and to the responsible person, as defined. Clarifies that, if the violation constitutes an imminent threat to health and safety, the notice of the violation be issued and served immediately. (Health & Saf. Code § 18420.)
12. Specifies that the owner or operator of the mobilehome park is responsible for the correction of a violation that is noticed by the enforcement agency. (Id.)
13. Requires that, if upon an inspection the enforcement agency determines that manufactured home, mobilehome, or accessory building or structure is in violation of Chapters 4, 5, and 6 of the MPA, or any regulation adopted pursuant to those chapters, the enforcement agency promptly, but no later than 10 days after the inspection, issue a notice to correct the violation to the registered owner and occupant (if different) of the mobilehome or manufactured home. (Id.)
    1. Specifies that, in the event of a violation that constitutes an imminent hazard representing an immediate risk to life, health, and safety requiring immediate correction, HCD shall provide the notice of violation immediately to the occupant, with a copy mailed to the registered mobilehome owner, to the owner or operator of the park, and to the responsible person.
    2. Specifies that the registered owner of the mobilehome is responsible for the correction of any violations pursuant to this section.
14. Requires that service of the written notice of violation be made either personally or by first-class mail, and that the notice describe the nature of the violation in as clear language as the technicality of the violation will allow, including reference to the statutory provisions or regulation allegedly violated, and the penalties for not correcting the violation. (Health & Saf. Code § 18420(c).)
    1. Requires HCD to develop a list of local agencies that have home rehabilitation or repair programs, and to provide this list to registered mobilehome owners or occupants who receive notices of a violation.
    2. Requires that, for violations that are not an imminent threat to health and safety, HCD allow 60 days from the date of the notice of violation for correction of the violation. However, if the violation is an imminent threat to health and safety as described, requires violations to be corrected within a reasonable time as determined by HCD.
    3. Allows HCD to extend the time for correction for 30 days or an additional reasonable period of time after the 60-day period if, after re-inspection, HCD determines that there is a valid reason why a violation has not been corrected, including weather conditions, illness, availability of repair persons, or availability of financial resources.
    4. Requires that, if upon re-inspection HCD issues a second notice of violation for a mobilehome resident violation, HCD issue the notice to the registered owner, with a copy provided to the occupant and to the owner or operator of the park and the responsible person. If upon re-inspection HCD issues a second notice of violation for a mobilehome park violation, requires HCD to issue the second notice to the owner or operator and the responsible person, and post a copy of the violation in a conspicuous place in the mobilehome park’s common area.
15. Provides that HCD may, at its sole discretion, determine not to issue a notice of violation if the violation does not constitute an imminent hazard representing an immediate risk to life, health, and safety and requiring immediate correction, and places requirements on HCD regarding documenting the violation and its determination not to issue a notice of violation. (Health & Saf. Code § 18420(e).)
16. Allows that an owner or operator of a mobilehome park, or the registered owner of a mobilehome subject to a notice of violation may dispute HCD’s determination of an alleged violation, a failure to correct the violation in the required time, or the reasonableness of the deadline for correction by requesting an informal conference with HCD. (Health & Saf. Code § 18421.)
17. Specifies that Health and Safety Code Sections 18420 to 18423 remain in effect until January 1, 2025. (Health & Saf. Code § 18424.)
18. Requires there be a responsible person in every park who is responsible for the operation and maintenance of the park. Requires the responsible person be available by telephonic or similar means, and that they reasonably respond in a timely manner to emergencies. In parks with 50 or more units, requires the responsible person or their designee to reside in the park and know the emergency procedures for the park and its emergency plan. (Health & Saf. § 18603.)

This bill:

1. Requires that, if HCD or another enforcement agency determines that a mobilehome park is in violation of the MPA or any regulation adopted pursuant to the MPA after an inspection, HCD must promptly, but no later than 10 days after the inspection, issue a notice to correct the violation to the owner or operator of the park and to the responsible person, as defined.
   1. Clarifies that, if the violation constitutes an imminent threat to health and safety, the notice of the violation be issued and served immediately.
   2. Specifies that the owner or operator of the mobilehome park is responsible for the correction of a violation that is noticed by the enforcement agency.
2. Requires that, if upon an inspection the enforcement agency determines that a manufactured home, mobilehome, or accessory building or structure is in violation of Chapters 4, 5, or 6 of the MPA, or any regulation adopted pursuant to those chapters, the enforcement agency promptly, but no later than 10 days after the inspection, issue a notice to correct the violation to the registered owner and occupant (if different) of the mobilehome or manufactured home, to the owner or operator of the mobilehome park, and to the responsible person.
   1. Requires that, in the event that a violation constitutes an imminent hazard representing an immediate risk to life, health, and safety and requiring immediate correction, HCD issue the notice of violation immediately, with a copy mailed to the registered owner, the owner or operator of the mobilehome park, and to the responsible person.
   2. Specifies that the mobilehome owner is responsible for the correction of any violations relating to the mobilehome.
   3. Requires that HCD be responsible for exhausting all administrative and legal recourse against a resident who fails to correct a resident violation before requesting the park owner or operator correct the violation.
3. Requires that service of the written notice of violation be made either personally or by first-class mail, and that the notice describe the nature of the violation in as clear language as the technicality of the violation will allow, including reference to the statutory provisions or regulation allegedly violated, and the penalties for not correcting the violation.
   1. Requires HCD to develop a list of local agencies that have home rehabilitation or repair programs, and provide this list to registered mobilehome owners or occupants who receive notices of a violation.
   2. Requires that, for violations not an imminent threat to health and safety, HCD allow 90 days from the date of the notice of violation for correction of the violation. However, if the violation is an imminent threat to health and safety as described, requires violations to be corrected within a reasonable time as determined by HCD.
   3. Allows HCD to extend the time for correction for 30 days or an additional reasonable period of time after the 90-day period if, after re-inspection, HCD determines that there is a valid reason why a violation has not been corrected, including weather conditions, illness, availability of repair persons, or availability of financial resources.
   4. Requires that, if upon re-inspection HCD issues a second notice of violation for a mobilehome resident violation, HCD issue the notice to the registered owner, with a copy provided to the occupant and to the owner or operator of the park and the responsible person. If upon re-inspection HCD issues a second notice of violation for a mobilehome park violation, requires HCD to issue the second notice to the owner or operator and the responsible person, and post a copy of the violation in a conspicuous place in the mobilehome park’s common area.
4. Provides that HCD may, at its sole discretion, determine not to issue a notice of violation if the violation does not constitute an imminent hazard representing an immediate risk to life, health, and safety and requiring immediate correction, and places requirements on HCD regarding documenting the violation and its determination not to issue a notice of violation.
5. Defines a “responsible person” as a person described in Health and Safety Code Section 18603.

COMMENTS

1. Author’s Statement

According to the author:

A 2023 study by Harvard University’s Joint Center for Housing Studies found that mobilehomes present an opportunity for homeownership for low-income households due to their “greater efficiencies in purchasing, production, and installation” in comparison to traditionally-built housing. These units are often the most affordable alternative – and last resort – for many facing homelessness.

In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome park owner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected. A park owner’s Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident.

SB 1108 will reduce the number of mobilehome evictions by extending the allotted time for a mobilehome owner to cure a violation from 30 days to 90 days and providing a copy of any violation notice to the park owner so they can better assist residents in curing violations.

1. Mobilehomes represent an important source of affordable housing in California

There are an estimated 508,589 mobilehome units in California.^[1] Mobilehomes are pre-fabricated homes that are designed to be able to be transported and moved between locations. Because mobilehomes are transportable, they are considered personal property instead of real property like traditionally-built homes, and are not tied to the land on which they sit. Thus, mobilehomes are unique among all residential options. However, while they are technically mobile, a significant amount of time, effort, and money is often required to actually move a mobilehome. Costs for moving a mobilehome range from a few thousand to tens of thousands of dollars. Mobilehomes are also unique because many mobilehome residents own their mobilehome, but lease the land upon which their home is located from a mobilehome park. In this arrangement, the mobilehome sits on a lot within a park of mobilehomes and common space. The mobilehome park and the lots on which the mobilehomes sit are usually privately owned and managed by a mobilehome park company.

Under this relationship, while residents technically own their mobilehome, they pay rent to the park management, are subject to the rules of the mobilehome park set by the ownership of the park, and they often rely on the park for the provision of utilities. If they fall behind on their rent payments to the park for their mobilehome’s lot, or if they violate a rule of the park, they can be evicted from the park. Considering they may have paid considerable amounts of money into buying the mobilehome that they can no longer live in, they could lose the equity they’ve accumulated in their mobilehome upon eviction by the park, either by having to sell the mobilehome quickly, or spend thousands of dollars to move their mobilehome elsewhere.

Mobilehome residents in California tend to be poorer and older than the average California renter, for which mobilehome ownership is an important option for affordable housing. In fact, the median price of a mobilehome in 2022 was $68,900, making mobilehome ownership one of the most significant, un-subsidized sources of affordable housing.^[2]

1. The laws that regulate mobilehome parks

In light of the unique nature of mobilehome parks and issues, the Legislature passed the Mobilehome Residency Law (MRL) in 1978 to regulate the relationship between mobilehome park management and park residents, and establish various rights, responsibilities, and limits of both groups. (Civ. Code § 798 et seq.) The MRL covers a variety of areas, including: permissible rental and lease contract terms; park rules and mandatory notices to residents; limits on fees and charges, as well as increases to them; and conditions and limits related to mobilehome park evictions. Provisions of the MRL relating to eviction require park management to give written notice to the resident, and provide for at least 60 days for the resident to either sell their mobilehome or remove it from the park. (Civ. Code § 798.55.) It also specifies that a park may evict a resident only for: failing to comply with a local or state law or regulation on mobilehomes within a reasonable time after the homeowner receives notice of noncompliance; conduct of the resident that amounts to a substantial annoyance of other homeowners or residents; conviction for certain crimes; failure to comply with a reasonable rule of the park; or for nonpayment of rent, utilities, or other reasonable incidental service charged by the park. (Civ. Code § 798.56.)

Mobilehomes and Mobilehome parks are also regulated through two other acts: The Manufactured Housing Act of 1980 (Health & Saf. Code § 18000 et seq.) and the Mobilehome Parks Act (MPA) (Health & Saf. Code § 18200 et seq.). The Manufactured Housing Act prescribes various standards on the structural, fire safety, plumbing, heating, and electrical systems of a manufactured home, or mobilehome, and prescribes the selling, titling, registration, and installation of mobilehomes. The MPA defines the requirements for permits and fees for the construction and operation of mobilehome parks, and governs the health and safety standards for parks and the occupancy of mobilehomes. Included in the MPA is Chapter 4, which provides that a permit is required to construct a park, to construct or alter existing or any additional buildings or lots in an existing park, to operate, occupy, rent, lease, or sublease a lot, and for any construction, mechanical, plumbing, electrical, and installation of a mobilehome. It also provides for fees for such permits, and outlines the requirements for the park’s permit to operate. Chapter 5 requires HCD to adopt regulations on the use and occupancy of mobilehomes, establishing minimum requirements to protect the health and safety of occupants and the public, and providing for the repair or abatement of any unsafe or unsanitary condition of the home. It also requires HCD to adopt building standards for the construction, location, and use of mobilehomes, and requires HCD to enforce these standards. Under Section 18550 of Chapter 5, mobilehomes must conform to HCD’s regulations for fuel, gas, water, electricity, sewage, and installation requirements, and must be in a safe and sanitary condition, structurally sound, and registered with HCD. (Health & Safety Code § 18550.) Chapter 6 requires HCD to adopt regulations reasonably necessary for the protection of life and property relating to gas equipment and installations in parks, and regulations and rules relating to fire prevention.

1. HCD’s enforcement and inspection authority

Under the provisions of the MPA, HCD has authority over the enforcement of health and safety standards for and permitting of mobilehomes and mobilehome parks. A mobilehome park must be issued a permit to operate by HCD in order to operate the park and collect rent from mobilehome residents, and the park must renew the permit to operate every year. (Health & Saf. Code § 18506.) If a mobilehome park is in violation of one of the provisions of the laws or regulations relating to mobilehome parks, HCD can suspend the park’s permit to operate. If a park’s permit has been suspended by HCD, the park cannot renew their permit to operate or have a new permit issued until they have corrected the violation that was the basis of the suspension. It also cannot collect rent while its permit is suspended. If a park’s permit to operate is revoked, no residents can reside in the park. With HCD’s approval, a city or county can also act as a local enforcement agency and enforce the MPA and perform inspections of mobilehome parks within its jurisdiction.

AB 925 (O’Connel, Ch. 1125, Stats. 1990) created the Mobilehome Park Maintenance (MPM) program. The MPM provides HCD the authority to enter a mobilehome park to inspect it for compliance with the MPA’s health and safety standards, and requires HCD to annually inspect parks with a goal of inspecting five percent of parks in the state a year. (Health & Saf. Code § 18400.1.) Through this program, HCD inspects mobilehome parks for either violations of the MPA by the park, or for violations of the MPA by a mobilehome resident. HCD must give a park and its residents 30 days’ notice and a pre-inspection orientation before an inspection, and HCD generally inspects the park’s common areas, facilities, and utilities, and the exterior of all mobilehomes and lots. The MPM as originally passed included a sunset date for the program, but its sunset has been regularly extended since AB 925 was passed in 1990. The MPM was last extended in 2023 by SB 319 (Connolly, Ch. 737, Stats. 2023), and is currently set to sunset on January 1, 2025.

In 2023, HCD inspected approximately 5.3 percent of the state’s mobilehome parks, and identified 4,102 resident violations and 1,529 park violations.^[3] The most common park violations identified by HCD inspections were exposed live electrical parts, gas meters not supported, and electrical components not approved for a wet location. The most common resident violations involved an accumulation of garbage or combustible material, appliances being outside the mobilehome, and a lack of handrails on stairs. About 82 percent of these violations were corrected.

1. HCD’s process for correcting a violation of the MPA

Chapter 3.5 of the MPA (at Heath & Saf. Code §18420, et seq.) outlines the procedures HCD must follow for a violation of the MPA, including for issuing notices of violations and pursuing enforcement actions. It provides that, if upon inspection of a park, HCD determines that a mobilehome park is in violation of one of the provisions of the MPA or related HCD regulations, it must issue a notice to correct the violation to the park owner or operator within 10 days, or immediately if the violation constitutes an imminent threat to health and safety. (Health & Saf. Code § 18420.) The owner or operator of the park is responsible for correcting any violation of rules relating to the mobilehome park. If HCD determines that a particular mobilehome is in violation of a provision of Chapter 4, 5, or 6 of the MPA or related regulation pertaining to mobilehomes, HCD must also issue a notice to correct the violation to the owner of the mobilehome, and to the occupant of the mobilehome, if different from the owner, within 10 days. If the violation constitutes an imminent hazard and immediate risk to life, health, and safety requiring immediate correction, HCD must issue the notice immediately with a copy additionally mailed to the owner or operator of the mobilehome park and the responsible person (an individual selected by the park to be available by phone or other means and be responsible for management of the park). The owner of the mobilehome is responsible for the correction of a violation related to the home itself, though the park is ultimately responsible for any violations within the park.

For violations that are not imminent threats to health and safety, the Department must provide 60 days from the date of the notice of violation for the violation to be corrected. After the 60 days, HCD re-inspects the park or mobilehome in violation to determine if the violation has been corrected. It may provide an additional 30 days or other reasonable period of time for correction if it determines that there is a valid reason why a violation has not yet been corrected, such as weather conditions, illness, availability of repair persons, or availability of financial resources. However, if HCD re-inspects and finds that the violation has not been corrected, it will issue a second notice of violation. For a violation of the MPA that is the responsibility of a particular mobilehome owner, this second notice is issued to the mobilehome owner, with a copy also provided to the owner or operator of the mobilehome park and to the park’s responsible person. For a violation that is the responsibility of the mobilehome park, the second notice of violation is also posted in a conspicuous place in the park’s common area. Upon issuance of this second notice of violation, the violating party has 30 more days to correct the violation before HCD issues a final notice of violation.

Chapter 3.5 also provides HCD with discretion not to issue a notice of violation if the condition constituting the violation does not constitute an imminent hazard representing an immediate risk to life, health, and safety. If an owner or operator of the mobilehome park, or the registered owner of the mobilehome disputes the agency’s determination of a violation, or a violation of a failure to correct the violation within the provided timeframe, or the reasonableness of the deadline for correction, they may request an informal conference with HCD regarding the issue. (Health & Saf. Code § 18421.)

If violations are not corrected, HCD possesses a variety of powers for enforcement. For resident violations, these include pursuing an action in a civil court proceeding to order compliance and referring the violator to the local District Attorney. State law makes a willful violation of the MPA a misdemeanor, conviction of which may subject the violator to fines and civil penalties. (Health & Saf. Code § 18700.) Furthermore, because park owners and operators are ultimately responsible for the health and safety of the park, if an individual mobilehome owner is in violation of one of the provisions of the MPA and does not correct the violation, HCD can threaten to suspend the mobilehome park’s permit to operate until the violation is corrected. In such a scenario, the park may then work with the resident to fix the violation, or work to evict the tenant. Since mobilehome parks cannot collect rent or operate a mobilehome park without a permit to operate, the threat of suspension is a powerful tool to achieve compliance. If a mobilehome park is the subject of the noncompliance, HCD can likewise initiate a legal proceeding, or it can suspend the park’s permit to operate.

1. This bill extends the enforcement provisions of the MPA indefinitely, with notable changes

Chapter 3.5 and its provisions describing the process for HCD to issue notices of violation include a provision repealing the chapter on January 1, 2025. This bill essentially extends the provisions of Chapter 3.5 indefinitely; however, with some additional changes.

Significantly, this bill extends the period of time that HCD must provide for the correction of a violation after the first notice of the violation from 60 days to 90 days. It also slightly amends the requirements for an initial notice of violation for a mobilehome resident violation. While Chapter 3.5 currently only requires that this notice be provided to the mobilehome owner with a copy sent to the occupant if other than the owner, this bill specifies that a copy also must be issued to the responsible person in the park. As previously noted, the responsible person is an individual designated by the park ownership or management who is responsible for the park operation and maintenance.

The author has agreed to accept an amendment that will remove from the provision in the bill relating to an initial notice of violation by a resident that requires HCD to issue a copy of the notice of violation to the responsible person when the violation is not an imminent hazard. This will align the bill’s notice requirement with current law.

Amendment

Section 18408 is added to the Health and Safety Code, to read:

18408.

(a) (1) If, upon inspection, the enforcement agency determines that a mobilehome park is in violation of any provision of this part, or any rule or regulation adopted pursuant thereto, the enforcement agency shall promptly, but not later than 10 days, excluding Saturday, Sunday, and holidays, after the enforcement agency completes the inspection and determines that the alleged violation exists, issue a notice to correct the violation to the owner or operator of the mobilehome park and to the responsible person, as defined in subdivision (e).

(2) In the event of a violation that constitutes an imminent threat to health and safety, the notice of violation shall be issued immediately and served on the owner or operator of the mobilehome park and to the responsible person.

(3) The owner or operator of the mobilehome park shall be responsible for the correction of any violations for which a notice of violation has been given pursuant to this subdivision.

(b) (1) If, upon inspection, the enforcement agency determines that a manufactured home, mobilehome, an accessory building or structure, or lot is in violation of any provision of Chapter 4 (commencing with Section 18500), Chapter 5 (commencing with Section 18550), Chapter 6 (commencing with Section 18690), or any rule or regulation adopted pursuant thereto, the enforcement agency shall promptly, but not later than 10 days, excluding Saturday, Sunday, and holidays, after the enforcement agency completes the inspection and determines that the alleged violation exists, issue a notice to correct the violation to the registered owner of the manufactured home or mobilehome, with a copy to the occupant thereof, if different from the registered owner, and to the responsible person, if any.

This bill also adds a provision requiring that HCD exhaust all administrative and legal recourse against a resident who fails to correct a violation for which they are responsible before requesting the mobilehome park owner or operator act to correct the violation. The Sponsor of this bill asserts that this is consistent with current HCD practice, and will be codifying provisions of an HCD Information Bulletin (IB MP 1991-03). This provision would require that HCD exhaust the administrative process previously described to attempt to obtain a resident’s compliance, as well as exhaust any enforcement action through court, before attempting to correct the issue through the mobilehome park owner or operator. HCD’s primary power of enforcement with regard to a park owner or operator is to threaten to suspend the park’s permit to operate unless the violation is corrected, so this provision effectively acts to prevent HCD from suspending a park’s permit to operate unless it is the last resort, and all other available actions have been unsuccessful. The author argues this is reasonable because parks need their permits to operate in order to collect rent, and because resident violations of the MPA are violations the park owner or operator did not cause.

In addition, this bill does not include Section 18421, the provision of Chapter 3.5 providing for an opportunity to contest HCD’s determinations at an informal conference with HCD. As such, those provisions will sunset on January 1, 2025. It should also be noted that this bill does not extend or eliminate the sunset provision in place for the MPM inspection program, such that the MPM inspection program and the requirements that HCD annually inspect at least five percent of mobilehome parks annually also will sunset on January 1, 2025. Contained in that section includes the requirement that HCD provides at least 30 days’ notice and a pre-inspection before inspecting a park. However, while the MPM program requires HCD to inspect a certain number of parks a year and prescribes procedures for HCD to do so, HCD does have permissive authority to inspect parks independent of the MPM (that authority is provided in Section 18400). Still, the sunset of the MPM inspection program could greatly affect the enforcement of the MPA and the numbers of notices of violation that HCD is able to issue. Thus, it may be prudent for the Legislature, or the authors of this bill, to consider also eliminating the sunset provisions of the MPM at Section 18400.1 to ensure that HCD continue annual inspections of mobilehome parks necessary for identifying, noticing under this bill’s provisions, and correcting violations of the MPA.

1. Arguments in support

The Western Manufactured Housing Communities Association, the sponsor of this bill, writes:

The practical effect of this legislation is that residents will see far fewer notices of eviction from mobilehome park owners. Under existing law, if a resident is cited for a violation of the MPA, the owner of the mobilehome park is only notified by the Department of Housing and Community Development (HCD) or a Local Enforcement Agency (LEA) hereafter referred to as “enforcement agencies,” after 60 days have passed without the violation being cured. Once the park owner receives notification of a violation, the mobilehome park has only 30 days to ensure the resident cures the violation or the park’s PTO is threatened with revocation.

To protect its ability to continue accepting rent payments from the entire mobilehome park, once notified of an uncured violation a park owner’s only option is to serve an eviction notice to the cited tenant. SB 1108 would provide a park owner notification of the cited violation within 10 days after the violation is issued. Further, SB 1108 will provide residents 90 days after the violation is cited before a PTO is subject to revocation. This would likely result in a reduced number of eviction notices as these notices are necessary to compel residents to correct violations to preserve a mobilehome park’s PTO. In cases involving an imminent danger to the health and safety of the mobilehome park, mobilehome park owners will be notified immediately about a violation to protect the entire park’s health and safety.

SB 1108 also protects residents and mobilehome park owners by requiring the enforcement agencies to provide a list of local agencies that have home rehabilitation or repair programs for which owners or residents of mobilehomes in mobilehome parks may be eligible. Members of the WMA have expressed frustration that violations could be cured sooner if information is provided to the owner or resident of a mobilehome about who it contact to perform the necessary repairs to address the violation. SB 1108 would require enforcement agencies to provide such a list to both the owner of a mobilehome and to the park owner.

WMA recognizes that production and maintenance of a list of service providers could require enforcement agencies to devote time and resources. That is why WMA would be generally supportive of a fee to be collected from service providers who desire to be included in the list provided to residents and park owners so long as such fee is only used to create, maintain, review, publish, and provide the list.

WMA appreciates the intent behind SB 1108 of avoiding unnecessary eviction notices being served when many violations could be promptly cured if the mobilehome park owner is notified sooner than the current 30 days. Many of the violations involve issues such as damaged hand railings, damaged or missing skirting, and other issues that can be quickly and affordably corrected that do not involve an imminent danger to the health and safety of the residents of the mobilehome park.

Finally, owners of mobilehome parks are in the business of providing housing opportunities for people. Our members do not want to engage in evictions if possible. Evictions are time consuming, expensive, divisive, and detrimental to an overall harmonious community environment that our members strive to promote.

SUPPORT

Western Manufactured Housing Communities Association (sponsor)

OPPOSITION

None received

RELATED LEGISLATION

Pending Legislation:

AB 2373 (Rendon, 2024) prohibits a mobilehome tenancy from being terminated by a park owner or operator or a notice of termination from being issued during any period of suspension or expiration of the park’s permit to operate.

AB 2247 (Wallis, 2024) extends the requirement that HCD issue notices of violation and pursue enforcement for violations of the MPA under specified procedures from January 1, 2025 to January 1, 2030, and requires HCD to include specified information regarding recipients of loans under the MORE program with a notice of violation given to a mobilehome owner or occupant.

Prior Legislation:

AB 319 (Connolly, Ch. 737, Stats. 2023) extended the MPM program until January 1, 2025, and added transparency and conflict of interest requirements for HCD mobilehome park inspectors.

AB 2002 (Villapudua, 2022) would have required HCD to establish a program, upon appropriation, for providing grants or funds to homeowners or occupants of mobilehomes for making repairs to their mobilehomes required by HCD. AB 2002 was held in the Senate Appropriations Committee.

SB 46 (Leyva, Ch. 835, Stats. 2018) extended the MPM program until January 1, 2024.

SB 951 (Correa, Ch. 314, Stats. 2010) extended the MPM program until January 1, 2019.

SB 1231 (Dunn, Ch. 644, Stats. 2006) extended the MPM program and the notice of violation and enforcement provisions relating to MPA violations until January 1, 2012.

SB 1176 (Dunn, Ch. 622, Stats. 2004) reduced the time HCD must allow a resident or park to correct a violation of the MPA or related regulations from 90 days to 60 days, plus a potential 30 day or reasonable time extension.

SB 700 (O’Connell, Ch. 520, Stats. 1999) required local enforcement agencies to enter and inspect all mobilehome parks once every 7 years, and extended the MPM program until January 1, 2007.

AB 925 (O’Connell, Ch. 1175, Stats. 1990) created the MPM program, established procedures for HCD to issue notices of violations of the MPA found during an HCD inspection, authorized a mobilehome owner or park to contest HCD determinations relating to violations through an informal conference, and required HCD or a local enforcement agency to inspect every mobilehome and ever mobilehome park in the state once every five years.

PRIOR VOTES:

Senate Housing Committee (Ayes 10, Noes 0)

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

1. U.S. Census Bureau, 2021 American Community Survey 1-Year Estimates (2021), available at https://data.census.gov/. ↑

2. U.S. Census Bureau, 2010 American Community Survey 5-Year Estimates (2010), available at https://data.census.gov/. ↑

3. Division of Codes and Standards, Mobilehome Park Maintenance (MPM) Inspection Task Force: Member Briefing Document, Cal. Dept. of Housing & Community Development (Mar. 15, 2024) p. 3-6, available at https://www.hcd.ca.gov/manufactured-and-mobilehomes/mobilehome-parks/mobilehome-park-maintenance-inspections. ↑

SENATE COMMITTEE ON HOUSING

Senator Nancy Skinner, Chair

2023 - 2024 Regular

Bill No: SB 1108 Hearing Date: 3/19/2024

SUBJECT: Mobilehome parks: notice of violations

DIGEST: This bill: (1) increases the allotted time for a mobilehome owner to cure a non-imminent health and safety violation from 60 to 90 days; (2) requires an enforcement agency to mail a copy of the mobilehome owner’s notice to correct the violation to the mobilehome park owner or operator in addition to the responsible person—the homeowner and occupant; (3) prohibits an enforcement agency from revoking a park’s permit to operate based on uncorrected violations; and (4) indefinitely extends mobilehome park enforcement responsibilities.

ANALYSIS:

Existing law:

1. Establishes the Mobilehome Residency Law (MRL), which regulates the rights, responsibilities, obligations, and relationships between mobilehome park management and park residents.
2. Establishes the Mobilehome Parks Act (Act), governing mobilehome parks, and the Special Occupancy Parks Act, governing Special Occupancy Parks (such as RV parks), which establish requirements for the permits, fees, and responsibilities of park operators and enforcement agencies, including the Department of Housing and Community Development (HCD).
3. Gives HCD authority over mobilehome, special occupancy, and RV parks established by the aforementioned acts and laws. HCD’s main enforcement is over the Act and not the MRL.
4. Requires, until January 1, 2025, an enforcement agency, within 10 days after conducting an inspection and determining that a non-imminent violation exists, to issue a notice (i.e., a Notice of Violation) to correct the violation to the registered owner of the manufactured home or mobilehome and provide a copy to the occupant thereof, if different from the registered owner.
5. Specifies, until January 1, 2025, that mobilehome owners are provided 60 days to correct the violation. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator and immediate correction is required.
6. Requires HCD, until January 1, 2025, to issue and serve upon a mobilehome park owner or operator a notice setting forth what provisions of the permit or statute have been violated, and notify the permittee (i.e., the mobilehome park owner or operator) that unless these provisions have been complied with within 30 days after the date of notice (i.e., after HCD’s 3^rd reinspection, the permittee receives a Notice of Intent to Suspend the Permit to Operate), the permit will be subject to suspension.

This bill:

1. Extends specific mobilehome park enforcement responsibilities indefinitely (currently scheduled to sunset on January 1, 2025).
2. Requires an enforcement agency, after conducting an inspection and determining that a violation exists, to mail a copy of the notice to correct the violation to the owner or operator of a mobilehome park and to the responsible person.
3. Requires the enforcement agency to be responsible for exhausting all administrative and legal recourse against a resident before corrective action is required by a mobilehome park owner or operator.
4. Requires an enforcement agency to provide 90 days from the date of service of the notice of violation upon the tenant and park operator for the purpose of voluntary remediation, except as provided.
5. Authorizes an enforcement agency to give reasonable time necessary for the termination of tenancy, or to secure injunctive relief.
6. Prohibits an enforcement agency from revoking a permit to operate based on uncorrected violations.

COMMENTS:

1. Author’s statement. “A 2023 study by Harvard University’s Joint Center for Housing Studies found that mobilehomes present an opportunity for homeownership for low-income households due to their “greater efficiencies in purchasing, production, and installation” in comparison to traditionally-built housing. These units are often the most affordable alternative – and last resort – for many facing homelessness. In the event a resident fails to correct a cited violation issued by the Department of Housing and Community Development (HCD), a mobilehome parkowner has almost no other option than serving an eviction notice since the park operator is only notified of the failure to correct after 60 days and then has only 30 days to ensure the violation is corrected. A park owner’s Permit to Operate – and their ability to collect rent – can be revoked for uncured violations, which jeopardizes the housing of every resident. SB 1108 will reduce the number of mobilehome evictions by extending the allotted time for a mobilehome owner to cure a violation from 30 days to 90 days and providing a copy of any violation notice to the park owner so they can better assist residents in curing violations.”
2. Background on Mobilehomes. According to HCD, California has 4,656 mobilehome parks which contain 363,415 spaces for mobilehomes or manufactured homes. Mobilehomes make up nearly 4% of all housing in the state.

Mobilehome owners do not own the land the unit sits on and instead pay rent and fees to mobilehome park management, who see the property as an investment. These can be small, local enterprises or larger corporations that own multiple communities.

Unlike traditional single-family homes, mobilehomes are considered chattel (personal) property and not real property. As such, purchasing a mobilehome is often much less expensive than traditional site-built housing and mobilehomes represent an important source of affordable housing in the state, especially for seniors and low-income households who are increasingly priced out of traditional rental housing. However, the underlying reality of mobilehome ownership reveals a potential vulnerability. Much like conventional lease agreements, the costs associated with occupying a space in a mobilehome park are subject to increases over time, posing financial challenges for residents.

When land values increase or when infrastructure maintenance becomes too costly, investors may choose to close the community and sell the property for another use. Despites their name, mobilehomes are not truly mobile and it is often cost prohibitive (up to $20,000) to relocate them. Additionally, some older homes may not be able to be moved at all due to structural concerns and often parks will not accept older mobilehomes. Homeowners in this predicament are sometimes forced to abandon their homes when a community closes. The loss of scarce locations for manufactured and mobilehomes depletes this important housing resource.

Recognizing this, the state has passed several laws governing the relationship between mobilehome owners and park management. For example, under California’s MRL, mobilehome owners have protections against “no cause” evictions and can only be evicted from a park for a limited set of reasons including non-payment of rent, violation of park rules, or specified criminal activities.

1. Inspections of mobilehome parks. Every year HCD is required to inspect at least 5% of the mobilehome parks it oversees. These inspections are intended to ensure that the park and homeowners are in compliance with the state’s health and safety laws. In some parts of the state a local government handles mobilehome park inspections instead of HCD.

If an issue is found during a park inspection, or if HCD receives a health and safety complaint, a notice of violation is sent either to the mobilehome owner, the park’s management, or both. In cases where correcting the violation is the responsibility of the park, mobilehome park management is sent a notice detailing the violation. Such violations would include common area issues that are not on a lot with a mobilehome on it. When a resident violation is cited (e.g., loose handrail, a shed located too close to a lot line, etc.) HCD then sends a notice to the homeowner and provides 60 days to correct the issue. For serious violations that present an imminent hazard, resident violation notices are sent to both the homeowner and the park operator, and immediate correction is required.

Park inspections and complaint inspections share most key statutory time frames, as shown in Figure 2, but the nature and timing of each inspection type creates a few notable differences.

Figure 2. Timing Requirements for Park and Complaint Inspections

Source: California State Auditor, Mobilehome Park Inspections, July 2020

In a 2020 audit of mobilehome park inspections, the State Auditor concluded that HCD had “not adequately communicated with residents during park inspections…HCD did not consistently notify residents of violations within required time frames, nor did it share all required information about the rights, responsibilities, and resources available to park residents. As a result, some residents may have missed opportunities to obtain help in correcting violations before parks initiated steps to evict them.^[1]”

When park operators or residents have not corrected violations after HCD conducts the reinspections, HCD may generally pursue enforcement by suspending the park’s permit to operate. Because mobilehome park operators are legally prohibited from charging residents rent when park permits are suspended, park operators have a financial incentive to address any outstanding violations. If HCD suspends a park’s permit to operate because of outstanding resident violations, the park operator can take legal action, such as eviction, against the noncompliant resident. When the park demonstrates that it has remedied all outstanding violations, HCD either reinstates the permit to operate or issues a new one. However, if the park fails to address outstanding health and safety violations, HCD may move to revoke the park’s permit to operate. HCD has an incentive to maintain a park’s permit to operate otherwise they lose their enforcement responsibility over non-permitted parks—HCD currently maintains enforcement responsibility for 82% of mobilehome parks and 76% of mobilehome park lots across the state.^[2]

As of December 31, 2023, there were 36 mobilehome parks with a suspended permit to operate, compared to 37 parks in 2022.^[3]

1. Proposed changes to enforcement. This bill proposes to extend specific mobilehome park enforcement responsibilities currently planned to sunset on January 1, 2025 indefinitely, and makes the following changes:
   1. Requires an enforcement agency, after conducting an initial inspection and determining that a violation exists, to mail a copy of the notice to correct the violation to the owner or operator of a mobilehome park, in addition to the responsible person. Unless the violation is the direct responsibility of the park operator, notifying the park operator when a resident violation first occurs could put the resident at risk of retaliation. Although nothing in this provision would allow a park operator to evict a resident earlier in the process, the threat of eviction or other retaliatory actions could put the resident at risk of displacement.

To address committee concerns about potential retaliation against residents, the author has agreed to remove this provision from the bill to maintain the current notification process—park operators are notified once a resident fails to cure the violation after the 2^nd reinspection.

• 1. Requires the enforcement agency to be responsible for exhausting all administrative and legal recourse against a resident before corrective action is required by a mobilehome park owner or operator. The Author has stated that part of the bill’s intent is to codify provisions from an HCD Information Bulletin (i.e., IB MP 1991-03) relating to the duties of enforcement agencies, however the current bill language states that corrective action against a resident is required. HCD does not evict residents in mobilehome parks, nor do they require park operators to evict. Eviction is a corrective action the park operator may take to abate the cited violations. HCD has an incentive to preserve mobilehome parks, and takes every opportunity to help the resident and park operator cure the violation before more serious corrective actions are necessary.

To address committee concerns about putting mobilehome tenants at risk of eviction, the author has agreed to accept an amendment to match the bill language to the HCD Information Bulletin to maintain original intent.

• 1. Authorizes an enforcement agency to give reasonable time necessary for the termination of tenancy, or to secure injunctive relief. As stated above, HCD does not evict residents in mobilehome parks, nor do they require park operators to evict. Leasing a space in a mobilehome park and rent collected for that space is a civil agreement between the resident and park operators.

To address committee concerns about putting mobilehome tenants at risk of eviction, the author has agreed to remove the termination of tenancy language from the mobilehome park enforcement responsibilities.

• 1. Prohibits an enforcement agency from revoking a permit to operate based on uncorrected violations. Inspections of mobilehome parks are intended to ensure that the community and individual homeowners are able to live in a safe, habitable park. There are many reasons why a homeowner or resident may fail to correct a violation that an inspection agency cites on their home or recreational vehicle. For example, language barriers may make it difficult for residents with limited or no English proficiency to understand the written notice of violation, particularly in cases where the homeowner is not present during the inspection and there is no translation of the notice. Other barriers to timely correction of resident violations include lack of financial resources or uncertainty about how to find appropriate assistance with correcting the violation (e.g., hiring an electrician or hauling company). In other cases, a homeowner may simply be unwilling to make the necessary repairs or changes to satisfy the inspection agency’s requirements. Taking away the enforcement agency’s ability to suspend a park operator’s permit to operate could endanger health and safety if the violation is a serious one. As noted above, mobilehome park operators have an incentive to assist homeowners with correcting resident violations since any violations that remain unaddressed could mean the park’s permit to operate gets suspended. While resident violations are, by definition, due to conditions attributable to a homeowner or resident, park management still owns the land on which mobilehomes are located.

To address committee concerns about resident protections, the author has agreed to remove this prohibition on an enforcement agency to revoke a park’s permit to operate.

1. Double-referral. This bill is double-referred to the Senate Judiciary Committee.

Related Legislation:

AB 2002 (Villapudua, 2022) — would have required HCD to establish a new program, upon appropriation, to provide grants or other funding to homeowners or occupants of mobilehomes or manufactured homes for making required repairs as identified by an enforcement agency. This bill was held in the Senate Appropriations Committee.

SB 915 (Leyva, 2020) — would have prohibited mobilehome parks from evicting residents who notify park management of COVID-19 impacts to their ability to pay rent and requires parks to provide those residents with extra time to repay outstanding rent, utilities or other charges, or cure violations of park rules. This bill died in the Senate.

SB 1176 (Dunn, Chapter 622, Statutes of 2004) — reduced the time allowed to correct specific health and safety code violations of the Mobilehome Park Maintenance Program, and makes changes in the notice provisions for mobilehome park rule changes.

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

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

March 13, 2024.)

SUPPORT:

Western Manufactured Housing Communities Association (WMA) (Sponsor)

OPPOSITION:

None received.

-- END --

1. California State Auditor. Mobilehome Park Inspections: The Department of Housing and Community Development Must Improve Its Inspection Processes to Better Protect Park Residents. (July 2020) https://www.auditor.ca.gov/reports/2019-111/index.html ↑

2. Mobilehome Park Maintenance Inspection Task Force, March 15, 2024, Member Briefing Document ↑

3. Ibid. Note: HCD does not track the number of permit to operate suspensions attributable to uncorrected resident violations vs. park violations. ↑