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AB-519 Mobilehome parks: sale.(2019-2020)

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Date Published: 02/13/2019 09:00 PM
AB519:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 519

Introduced by Assembly Member Voepel

February 13, 2019

An act to repeal and add Section 798.80 of the Civil Code, relating to mobilehome parks.


LEGISLATIVE COUNSEL'S DIGEST


AB 519, as introduced, Voepel. Mobilehome parks: sale.
Existing law, the Mobilehome Residence Law, requires the owner of a mobilehome park who lists for sale or offers to sell the mobilehome park to any party to provide written notice of the owner’s intention to sell the mobilehome park to a resident organization formed by homeowners for purposes of converting the mobilehome park to condominium or stock cooperative ownership interests and for purchasing the mobilehome park, subject to specified conditions.
This bill would repeal those provisions and would instead provide that a resident organization of a mobilehome park has a right of first refusal to purchase a mobilehome park if the mobilehome park owner decides to sell or receives a formal offer from a 3rd party to purchase the park, subject to specified conditions. The bill would prohibit a mobilehome park owner from selling the mobilehome park to a 3rd party if, within 15 days of receiving notification that the owner plans to sell, the resident organization notifies the owner that the resident organization plans to make an offer to purchase the mobilehome park.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 798.80 of the Civil Code is repealed.
798.80.

(a)Not less than 30 days nor more than one year prior to an owner of a mobilehome park entering into a written listing agreement with a licensed real estate broker, as defined in Article 1 (commencing with Section 10130) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, for the sale of the park, or offering to sell the park to any party, the owner shall provide written notice of his or her intention to sell the mobilehome park by first-class mail or by personal delivery to the president, secretary, and treasurer of any resident organization formed by homeowners in the mobilehome park as a nonprofit corporation, pursuant to Section 23701v of the Revenue and Taxation Code, stock cooperative corporation, or other entity for purposes of converting the mobilehome park to condominium or stock cooperative ownership interests and for purchasing the mobilehome park from the management of the mobilehome park. An offer to sell a park shall not be construed as an offer under this subdivision unless it is initiated by the park owner or agent.

(b)An owner of a mobilehome park shall not be required to comply with subdivision (a) unless the following conditions are met:

(1)The resident organization has first furnished the park owner or park manager a written notice of the name and address of the president, secretary, and treasurer of the resident organization to whom the notice of sale shall be given.

(2)The resident organization has first notified the park owner or manager in writing that the park residents are interested in purchasing the park. The initial notice by the resident organization shall be made prior to a written listing or offer to sell the park by the park owner, and the resident organization shall give subsequent notice once each year thereafter that the park residents are interested in purchasing the park.

(3)The resident organization has furnished the park owner or park manager a written notice, within five days, of any change in the name or address of the officers of the resident organization to whom the notice of sale shall be given.

(c)Nothing in this section affects the validity of title to real property transferred in violation of this section, although a violation shall subject the seller to civil action pursuant to Article 8 (commencing with Section 798.84) by homeowner residents of the park or the resident organization.

(d)Nothing in this section affects the ability of a licensed real estate broker, as defined in Article 1 (commencing with Section 10130) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, to collect a commission pursuant to an executed contract between the broker and the mobilehome park owner.

(e)Subdivision (a) does not apply to any of the following:

(1)Any sale or other transfer by a park owner who is a natural person to any relation specified in Section 6401 or 6402 of the Probate Code.

(2)Any transfer by gift, devise, or operation of law.

(3)Any transfer by a corporation to an affiliate. As used in this paragraph, “affiliate” means any shareholder of the transferring corporation, any corporation or entity owned or controlled, directly or indirectly, by the transferring corporation, or any other corporation or entity controlled, directly or indirectly, by any shareholder of the transferring corporation.

(4)Any transfer by a partnership to any of its partners.

(5)Any conveyance resulting from the judicial or nonjudicial foreclosure of a mortgage or deed of trust encumbering a mobilehome park or any deed given in lieu of such a foreclosure.

(6)Any sale or transfer between or among joint tenants or tenants in common owning a mobilehome park.

(7)The purchase of a mobilehome park by a governmental entity under its powers of eminent domain.

SEC. 2.

 Section 798.80 is added to the Civil Code, to read:

798.80.
 (a) A resident organization of a mobilehome park shall have a right of first refusal to purchase a mobilehome park if the owner decides to sell or receives a formal offer from a third party to purchase the mobilehome park, subject to the requirements of this section.
(b) An owner of a mobilehome park is prohibited from selling a mobilehome park to a third party if, within 15 days of receiving the notification that the owner plans to sell, the resident organization notifies the owner that the resident organization plans to make an offer to purchase the mobilehome park.
(c) On or before 30 days from the date the resident organization gave notice to an owner that the resident organization plans to exercise its right of first refusal pursuant to this section, the resident organization shall make a bona fide offer that meets the price and substantially the same terms as the third-party offer.
(d) The right of first refusal shall only be available to a resident organization that meets all of the following conditions:
(1) The resident organization was formed before the owner received a formal offer from a third party.
(2) The resident organization represents the residents of the mobilehome park.
(3) The resident organization has established bylaws that give the resident organization the authority to negotiate the purchase of the mobilehome park on behalf of the residents.
(4) The resident organization contracts with a housing consultant, nonprofit housing corporation, or real estate licensee to facilitate the purchase of the park.
(5) The mobilehome park owner or management was given written notice that the resident organization has been formed and represents the residents of the mobilehome park.
(6) The resident organization provides written notice to the mobilehome park owner or management at least once a year that the resident organization desires to purchase the mobilehome park.
(e) The right of first refusal shall terminate if, within 15 days of being notified that the owner plans to sell the mobilehome park, the resident organization notifies the owner that it does not wish to exercise its right of first refusal or fails to inform the owner of its intent to make an offer to purchase the mobilehome park.