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SB-900 Mobilehome parks: conversion.(2007-2008)

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SB900:v98#DOCUMENT

Amended  IN  Assembly  May 27, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Senate Bill
No. 900

Introduced  by  Senator Corbett
 (Coauthor(s): Assembly Member Evans)

February 23, 2007

An act to amend Section 66427.4 of, and to repeal Section 66427.5 of, the Government Code, and to amend Section 50786 of the Health and Safety Code, relating to mobilehome parks. An act to amend Section 66427.5 of the Government Code, relating to mobilehome parks.


LEGISLATIVE COUNSEL'S DIGEST


SB 900, as amended, Corbett. Mobilehome parks: conversion.
Existing law requires a subdivider, at the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a rental mobilehome park to resident ownership, to avoid the economic displacement of nonpurchasing residents by limiting the amount of rent increases, as specified.
This bill would revise the limitations on rent increases to provide specifically for nonpurchasing residents of median and moderate income, as defined, and nonpurchasing residents who do not meet these income requirements.

(1)The Subdivision Map Act requires a subdivider, at the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a rental mobilehome park to resident ownership, to also file a report on the impact of the conversion upon the displaced residents of the mobilehome park to be converted, including the availability of adequate replacement space in mobilehome parks. The act exempts from these requirements a subdivision that is created from the conversion of a rental mobilehome park to resident ownership. A violation of the act is a crime, punishable as a felony or misdemeanor.

This bill would delete that exemption. Because the bill would expand the scope of an existing crime, it would impose a state-mandated local program.

(2)The act requires the legislative body, or an advisory agency that is authorized by local ordinance to approve, conditionally approve, or disapprove the map, to require the subdivider to take steps to mitigate any adverse impact of the conversion on the ability of displaced mobilehome park residents to find adequate space in a mobilehome park.

This bill would delete these requirements, and would make a conforming change.

(3)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.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: YESNO  

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


SECTION 1.

 Section 66427.5 of the Government Code is amended to read:

66427.5.
 At the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a rental mobilehome park to resident ownership, the subdivider shall avoid the economic displacement of all nonpurchasing residents in the following manner:
(a) The subdivider shall offer each existing tenant an option to either purchase his or her condominium or subdivided unit, which is to be created by the conversion of the park to resident ownership, or to continue residency as a tenant.
(b) The subdivider shall file a report on the impact of the conversion upon residents of the mobilehome park to be converted to resident owned subdivided interest.
(c) The subdivider shall make a copy of the report available to each resident of the mobilehome park at least 15 days prior to the hearing on the map by the advisory agency or, if there is no advisory agency, by the legislative body.
(d) (1) The subdivider shall obtain a survey of support of residents of the mobilehome park for the proposed conversion.
(2) The survey of support shall be conducted in accordance with an agreement between the subdivider and a resident homeowners’ association, if any, that is independent of the subdivider or mobilehome park owner.
(3) The survey shall be obtained pursuant to a written ballot.
(4) The survey shall be conducted so that each occupied mobilehome space has one vote.
(5) The results of the survey shall be submitted to the local agency upon the filing of the tentative or parcel map, to be considered as part of the subdivision map hearing prescribed by subdivision (e).
(e) The subdivider shall be subject to a hearing by a legislative body or advisory agency, which is authorized by local ordinance to approve, conditionally approve, or disapprove the map. The scope of the hearing shall be limited to the issue of compliance with this section.
(f) The subdivider shall be required to avoid the economic displacement of all nonpurchasing residents in accordance with the following:

(1)As to nonpurchasing residents who are not lower income households, as defined in Section 50079.5 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent to market levels, as defined in an appraisal conducted in accordance with nationally recognized professional appraisal standards, in equal annual increases over a four-year period.

(2)As to nonpurchasing residents who are lower income households, as defined in Section 50079.5 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent by an amount equal to the average monthly increase in rent in the four years immediately preceding the conversion, except that in no event shall the monthly rent be increased by an amount greater than the average monthly percentage increase in the Consumer Price Index for the most recently reported period.

(1) As to nonpurchasing residents who are persons or families at median area income or below, in accordance with the number of persons in the household, as defined by the most recent official state income limits prepared by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase annually from the preconversion rent by an amount equal to the average monthly increase in rent in the four years immediately preceding the conversion, or by the percentage increase in the Consumer Price Index for the most recently reported 12-month period, whichever is less. For purposes of this paragraph, the income limits for nonpurchasing residents shall apply regardless of their eligibility for government financial assistance from a government program pursuant to subdivision (a) of Section 50093 of the Health and Safety Code or a particular program’s definition of income, and nonpurchasing residents may not be charged new capital improvement passthroughs in addition to rent after the conversion.
(2) As to nonpurchasing residents who are moderate-income households, in accordance with the number of persons in the household, as defined by the most recent official state income limits prepared by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent to market levels, as defined in an appraisal conducted in accordance with nationally recognized professional appraisal standards, in equal annual increases over a six-year period.
(3) As to nonpurchasing residents who are not subject to paragraph (1) or (2), the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent to market levels, as defined in an appraisal conducted in accordance with nationally recognized professional appraisal standards, in equal annual increases over a six-year period.

SECTION 1.Section 66427.4 of the Government Code is amended to read:
66427.4.

(a)At the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a mobilehome park to another use, the subdivider shall also file a report on the impact of the conversion upon the displaced residents of the mobilehome park to be converted. In determining the impact of the conversion on displaced mobilehome park residents, the report shall address the availability of adequate replacement space in mobilehome parks.

(b)The subdivider shall make a copy of the report available to each resident of the mobilehome park at least 15 days prior to the hearing on the map by the advisory agency or, if there is no advisory agency, by the legislative body.

(c)The legislative body, or an advisory agency that is authorized by local ordinance to approve, conditionally approve, or disapprove the map, may require the subdivider to take steps to mitigate any adverse impact of the conversion on the ability of displaced mobilehome park residents to find adequate space in a mobilehome park.

(d)This section establishes a minimum standard for local regulation of conversions of mobilehome parks into other uses and shall not prevent a local agency from enacting more stringent measures.

SEC. 2.Section 66427.5 of the Government Code is repealed.
SEC. 3.Section 50786 of the Health and Safety Code is amended to read:
50786.

(a)The department shall adopt regulations for the administration and implementation of this chapter.

(b)The department shall obtain the best available security for loans made pursuant to this chapter. The security may include a note, deed of trust, assignment of lease, or other form of security on real or personal property which the department determines is adequate to protect the interests of the state. To the extent applicable, these documents and any regulatory provisions shall be recorded or referenced in a recorded document in the office of the county recorder of the county in which the mobilehome park is located.

(c)The degree of continuing regulatory control with respect to park operations and resident loans exercised by the department in making loans pursuant to this chapter shall be commensurate with the level of financial assistance provided and in all cases shall be adequate to protect the state’s security interest and ensure the accomplishment of the purposes of the program authorized by this chapter. The regulatory requirements shall be set forth in a regulatory agreement, deed of trust, or other lien, and any violation of these requirements shall be considered a violation of a security document. Where loans are made to a qualifying nonprofit housing sponsor or local public entity, a regulatory agreement shall be recorded against the mobilehome park. This regulatory agreement shall contain provisions limiting occupancy, rents, and park operation for the original loan term. The department may release individual spaces from the regulatory agreement only if they are purchased by residents who occupy them.

(d)Before providing financing pursuant to this chapter, the department shall require provision of, and approve, at least all of the following:

(1)Verification at the time of application and prior to funding that at least two-thirds of the households residing in the mobilehome park support the plans for acquisition and conversion of the park.

(2)Verification that either no park residents shall be involuntarily displaced as a result of the park conversion or the impacts of the displacement shall be mitigated as required under state and local law.

(3)Verification that the conversion is consistent with local zoning and land use requirements, other applicable state and local laws, and regulations and ordinances.

(4)Projected costs and sources of funds for all conversion activities.

(5)Projected operating budget for the park during and after the conversion.

(6)A management plan for the conversion and operation of the park.

(7)If necessary, a relocation plan for residents not participating that is in compliance with Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code.

(e)The department shall, to the greatest extent feasible, do all of the following:

(1)Require participation by cities and counties in loan applications submitted pursuant to this chapter.

(2)Contract with private lenders or local public entities to provide program administration and to service loans made pursuant to this chapter.

(3)Give priority to applications for resident-owned parks.

SEC. 4.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.