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AB-210 Mobilehomes: security deposits.(2001-2002)

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Assembly Bill No. 210
CHAPTER 151

An act to amend Section 798.39 of the Civil Code, relating to mobilehomes.

[ Filed with Secretary of State  August 06, 2001. Approved by Governor  August 06, 2001. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 210, Corbett. Mobilehomes: security deposits.
Existing law requires that security deposits paid to a mobilehome park on or after January 1, 1989, be refunded to the homeowner, upon written request from the homeowner, if the homeowner has timely paid rent, utilities, and reasonable service charges, as specified, for any 12 consecutive months after collection of the security deposit. Existing law also requires that, for security deposits paid to a mobilehome park prior to January 1, 1989, if a mobilehome park is sold, the selling park owner shall deposit in an escrow account an amount equal to all security deposits held and shall provide that, upon close of escrow, security deposits held for 12 months or more shall be refunded to persons who have timely paid all obligations, as specified, during the 12 months before the close of escrow.
This bill would require that security deposits paid to a mobilehome park prior to January 1, 1989, upon the extension or renewal of the rental agreement or lease between the homeowner and the management, and upon the receipt of a written request from the homeowner, be refunded to the homeowner by management within 60 days of receipt of the request, if the homeowner has timely paid rent, utilities, and reasonable service charges, as specified, for 12 consecutive months preceding the receipt of the written request.

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


SECTION 1.

 Section 798.39 of the Civil Code is amended to read:

798.39.
 (a) The management may only demand a security deposit on or before initial occupancy and the security deposit may not be in an amount or value in excess of an amount equal to two months’ rent that is charged at the inception of the occupancy, in addition to any rent for the first month. In no event shall additional security deposits be demanded of a homeowner following the initial occupancy.
(b) As to all security deposits collected on or after January 1, 1989, after the homeowner has promptly paid to the management, within five days of the date the amount is due, all of the rent, utilities, and reasonable service charges for any 12-consecutive-month period subsequent to the collection of the security deposit by the management, or upon resale of the mobilehome, whichever occurs earlier, the management shall, upon the receipt of a written request from the homeowner, refund to the homeowner the amount of the security deposit within 30 days following the end of the 12-consecutive-month period of the prompt payment or the date of the resale of the mobilehome.
(c) As to all security deposits collected prior to January 1, 1989, upon the extension or renewal of the rental agreement or lease between the homeowner and the management, and upon the receipt of a written request from the homeowner, if the homeowner has promptly paid to the management, within five days of the date the amount is due, all of the rent, utilities, and reasonable service charges for the 12-consecutive-month period preceding the receipt of the written request, the management shall refund to the homeowner the amount of the security deposit within 60 days.
(d) As to all security deposits collected prior to January 1, 1989, and not disbursed pursuant to subdivision (c), in the event that the mobilehome park is sold or transferred to any other party or entity, the selling park owner shall deposit in escrow an amount equal to all security deposits that the park owner holds. The seller’s escrow instructions shall direct that, upon close of escrow, the security deposits therein that were held by the selling park owner (including the period in escrow) for 12 months or more, shall be disbursed to the persons who paid the deposits to the selling park owner and promptly paid, within five days of the date the amount is due, all rent, utilities, and reasonable service charges for the 12-month period preceding the close of escrow.
(e) Any and all security deposits in escrow that were held by the selling park owner that are not required to be disbursed pursuant to subdivision (b), (c), or (d) shall be disbursed to the successors in interest to the selling or transferring park owner, who shall have the same obligations of the park’s management and ownership specified in this section with respect to security deposits. The disbursal may be made in escrow by a debit against the selling park owner and a credit to the successors in interest to the selling park owner.
(f) The management shall not be required to place any security deposit collected in an interest-bearing account or to provide a homeowner with any interest on the security deposit collected.
(g) Nothing in this section shall affect the validity of title to real property transferred in violation of this section.