Agenda Summary- Manufactured Housing CommitteeHyatt Regency Hotel, Carmel Room A/B Sacramento, California June 6, 2007 2:30pm – 4:00pmPresiding: Norma Scantlin, Chair David Hale, Vice Chair Larry Heine, Vice Chair Frank Nelson, Committee LiaisonC.A.R. Staff: Natalie CardenasI. Opening CommentsII. 2007 LegislationA. AB 285 (Garcia), Mobilehome Park Rent Control Exemption for Owners of Vacation Homes– This bill, sponsored by the Western Manufactured Housing Communities Association (WMA), would exempt manufactured housing units in mobilehome parks from locally enacted rent controls if the unit is a vacation home. As introduced, the bill would have exempted any manufactured housing unit from locally imposed rent control if it is not the sole residence owned by a homeowner. However, the bill failed passage in the Assembly Housing and Community Development Committee. The author and sponsor agreed to limit the exemption to vacation homes, defined as a residence where the owner does not use or occupy for more than 180 days in a calendar year. This bill is scheduled to be heard in the Assembly Housing and Community Development Committee. C.A.R. Position – Support.B.AB460 (Cook) Mandatory Inspections for pre-1976 Mobilehomes– This bill, sponsored by the Western Manufactured Housing Communities Association (WMA), would require interior and exterior inspections of mobilehome units for sale in a mobilehome park if the unit was built prior to 1976. If the unit does not meet inspection standards, park owner would be permitted to require sellers to correct the violations or compel the seller to remove the mobilehome unit prior to sale. As introduced, C.A.R. took a Not Favor position on the bill because it would have created a “point of sale” requirement on sellers of pre-1976 mobilehomes. The bill is currently in the Assembly Housing and Community Development Committee. Due to opposition, it is unclear whether the bill will be pursued by the author. C.A.R. Position – Not FavorC. AB 1111 (DeSaulnier) Changes in Age Restrictions in Mobilehome Parks– This bill, sponsored by the Golden State Mobilehome Owners Association (GSMOL), would requirea majority approval from park residents in a senior mobilehome park (55 years of age or older) if the park management wants to convert the park to “all ages”. The bill further permits local governments to adopt local ordinances to prevent senior mobilehome parks from converting to parks open to all ages. The bill was heard in the Assembly Housing and Community Development Committee on May 9, 2007. It was held in committee without a votedue to concerns raised by Committee members. It is unclear whether the bill will be moved out of committee this year. C.A.R. Position – WatchD.AB1309 (Calderon) Vacancy Decontrol for Mobilehome Park Rent Control– This bill, sponsored by WMA would establish vacancy decontrol for manufactured housing units sold in mobilehome parks subject to a local rent control ordinance. Vacancy decontrol permits park management to bring space rent up to market rent if the unit is voluntarily vacated due to sale of the unit. Once new residency is established, the space rent for the unit would be subject to local rent control provisions. C.A.R supports AB 1309 because vacancy decontrol ameliorates some of the negative impacts of rent control. C.A.R. successfully co-sponsored the Costa-Hawkins Rental Housing Act in1995 to create vacancy decontrol for stick built rental units subject to a local rent control ordinance. At that time, mobilehome park rent control was excluded from Costa Hawkins in order to secure passage. Now, WMAhopes to provide mobilehome parks with the same vacancy decontrol enjoyed by apartment owners subject to local rent control. The bill passed out of the Assembly Housing and Community Development Committee and is now in the Assembly Judiciary Committee. C.A.R. Position – SupportE.AB 1542 (Evans) Local Control on Mobilehome Park Conversions to Resident Owned Parks– This bill, co-sponsored by the City of Napa and Sonoma County, would remove existing exemptions for mobilehome parks converting to resident owned parks from local government approval or conditions. Under the Subdivision Map Act, if a mobilehome park is proposed to be converted to another use, such as stick-built housing or commercial development, local governments can impose restrictions and conditions on that conversion. In some cases, these restrictions have the net effect of prohibiting the conversion. In 1991, the Legislature adopted an exemption for park conversions that are converted to resident-owned parks, based on concerns by residents and conversion specialists who successfully argued that local restrictions made it impossible for residents to purchase their units. At that time, the Legislature enacted statewide rent control for low-income residents who do not purchase their unit-space and provided a four-year phase in of rents to market rate for moderate-income residents who do not purchase their space. However, GSMOL and local cities have complained that resident-owned park conversions are now being initiated by park owners who want to get out of the mobilehome park business due to local rent controls. C.A.R. opposes AB 1542 because it attempts to prevent park owners and residents from converting their parks to resident owned, thus removing an opportunity for true homeownership. This bill is identical to SB 900 (Corbett). C.A.R. Position – OpposeF.SB 541 (Alquist) Asset Test for Residency Qualification– This bill, sponsored by GSMOL, would prevents park management from denying tenancy to prospective park residents based soley on whether a tenant can satisfy minimum income requirements for residency. The bill would require park management to consider the purchaser’s financial assets,such as stock portfolio, savings account, or real property, if the applicant chooses to provide such information. The bill passed out of the Senate and is now awaiting committee assignment in the Assembly. C.A.R. Position – WatchG.SB 900 (Corbett) Mobilehome Park Conversions to Resident Owned Parks– This bill is identical to AB 1542 (Evans). Sponsored by the City of Napa and Sonoma County, this bill would remove existing exemptions for mobilehome parks converting to resident owned parks from local government approval or conditions. See AB 1542 (Evans) for additional information on the bill. C.A.R. Position – OpposeH. SB 981 (Padilla) Mobilehome Parks, Prohibiting Fees– This bill, sponsored by GSMOL, wouldprohibit a mobile home park owner from imposing any fee for the cost of maintaining any physical improvement to the common areas of a mobile home park. The provisions of this bill would apply to rental agreements executed, extended or renewed on or after January 1, 2008. Due to restrictive mobilehomepark rent controls, many park owners do not have sufficient resources to properly maintain their parks. Thus, they “pass through” these expenses to park residents. This bill would prohibit that practice and only permit park owners to maintain their property soley with money collected through rents. C.A.R. opposes SB 981 because it would reduce services and quality of life for park residents because park owners would not be able to maintain their properties on only rent collections in rent controlled communities. The bill passed out of the Senate Judiciary Committee and in now on the Senate Floor. C.A.R. Position – OpposeIII. NAR Manufactured Housing Task Force (Report Only)– The NAR Federal Housing Policy Committee created the Manufactured Housing Informal Task Force to identify issues where NAR can be helpful in affecting policy for manufactured housing. The Task Force met via conference call and will give a report at the NAR Mid-Year Meetings in Washington, D.C.IV. Lenders Panel on Financing Manufactured Housing –The committee will hear from a panel of lenders who specialize in manufacture housing loan products and will share with the committee the latest trends in manufactured housing finance.