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SB-136 Mobilehome parks: mobilehome park program funding. (2017-2018)

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Date Published: 10/13/2017 09:00 PM
SB136:v93#DOCUMENT

Senate Bill No. 136
CHAPTER 766

An act to amend Section 50784.7 of, and to add Section 50787 to, the Health and Safety Code, relating to mobilehome parks, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

[ Approved by Governor  October 13, 2017. Filed with Secretary of State  October 13, 2017. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 136, Leyva. Mobilehome parks: mobilehome park program funding.
Existing law authorizes the Department of Housing and Community Development to make loans from the Mobilehome Park Rehabilitation and Purchase Fund, a continuously appropriated fund, to qualified mobilehome park residents, resident organizations, and nonprofit housing sponsors, and also authorizes the use of fund moneys for related administrative costs of the department. Existing law requires the department to adopt regulations for the administration and implementation of these provisions.
This bill would authorize the department to contract directly with nonprofit corporations that have significant experience working with mobilehome park residents, or acquiring, rehabilitating, and preserving affordable housing, and have statewide or regional capacity to deliver technical assistance to mobilehome park residents or community-based nonprofit corporations in order to assist them in acquiring, financing, operating, and improving mobilehome parks occupied by low- and moderate-income households. The bill would authorize moneys in the fund to be used for grants to provide these services. By adding a new purpose to a continuously appropriated fund, this bill would make an appropriation. The bill would prohibit the use of funds for the purpose of taking a mobilehome park by the state, county, or city by eminent domain. The bill would deem contracts entered into pursuant to these provisions to be for local assistance.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares as follows:
(a) The preservation and improvement of mobilehome parks throughout the state is a critical factor in providing decent, safe, and affordable housing for persons and families of low and moderate income.
(b) The preservation and improvement of mobilehome parks also assists low- and moderate-income households in protecting their equity in their homes as well as providing healthy and supportive communities.
(c) The Mobilehome Park Rehabilitation and Resident Ownership Program, as set forth in Chapter 11 (commencing with Section 50780) of Part 2 of Division 31 of the Health and Safety Code, is a critical component, along with private and local government financial assistance, in assisting residents and nonprofit corporations to purchase and rehabilitate existing mobilehome parks.
(d) The Mobilehome Park Rehabilitation and Purchase Fund has been underutilized and purchase and rehabilitation projects have taken too long from inception to completion. These projects often cannot be completed successfully, because mobilehome parks are inherently more difficult to acquire, finance, and operate than conventional housing. Moreover, additional technical assistance is needed for nonprofit corporations performing these activities, which cannot be provided by the Department of Housing and Community Development.
(e) It is to the benefit of the people of the State of California, the Department of Housing and Community Development, and an efficient and effective use of funds from the Mobilehome Park Rehabilitation and Resident Ownership Program for a portion of the moneys from the fund established pursuant to Section 50782 of the Health and Safety Code to be used as a grant to finance technical assistance to nonprofit organizations and mobilehome park resident associations seeking to acquire and improve mobilehome parks occupied by low- and moderate-income households in order to preserve decent, safe, and affordable housing.

SEC. 2.

 Section 50784.7 of the Health and Safety Code is amended to read:

50784.7.
 (a) The department may make loans to resident organizations or qualified nonprofit sponsors from the fund for the purpose of assisting lower income homeowners to do any of the following:
(1) Make repairs to their mobilehomes.
(2) Make accessibility-related upgrades to their mobilehomes.
(3) Replace their mobilehomes.
(b) Loans made pursuant to subdivision (a) shall meet both of the following requirements:
(1) The applicant entity has received a loan or loans pursuant to Section 50783, 50784, or 50784.5 for the purpose of assisting homeowners within a park proposed for acquisition or conversion.
(2) The applicant entity demonstrates sufficient organizational stability and capacity to manage a portfolio of individual loans over an extended time period. This capacity may be demonstrated by substantial successful experience performing similar activities or through other means acceptable to the department.
(c) The department may adopt guidelines to implement this section.

SEC. 3.

 Section 50787 is added to the Health and Safety Code, to read:

50787.
 (a) In addition to the other uses of the fund and activities authorized by this chapter, the department may contract directly with nonprofit corporations that have significant experience working with mobilehome park residents, or acquiring, rehabilitating, and preserving affordable housing, and have statewide or regional capacity to deliver technical assistance to mobilehome park residents or community-based nonprofit corporations in order to assist them in acquiring, financing, operating, and improving mobilehome parks occupied by low- and moderate-income households, including reasonable administrative costs for the grant recipient or recipients. Notwithstanding any other provision of this chapter, moneys in the fund may be used for grants to provide services for initial terms of no more than three years.
(b) No funds provided pursuant to subdivision (a) shall be used for the purposes of taking a mobilehome park by the state, county, or city by eminent domain pursuant to Section 19 of Article I of the California Constitution.
(c) The department may adopt, amend, or repeal guidelines to implement this section. Any guidelines adopted to implement this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. Awards of funding made pursuant to this section shall not be subject to review or approval by the Local Assistance Loan and Grant Committee of the department operating pursuant to Subchapter 1 (commencing with Section 6900) of Chapter 6.5 of Division 1 of Title 25 of the California Code of Regulations.
(d) Notwithstanding any other provision of law, a contract entered into pursuant to this section shall be deemed to be for local assistance.

SEC. 4.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to provide necessary assistance to nonprofit organizations seeking to acquire and preserve mobilehome parks that are deteriorating or threatened with closure or conversion to other uses throughout the state and to more efficiently and effectively utilize funds available for the Mobilehome Park Rehabilitation and Resident Ownership Program, it is necessary that this act take effect immediately.