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AB-1035 Mobilehome parks: rent caps.(2023-2024)

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Date Published: 04/10/2023 09:00 PM
AB1035:v98#DOCUMENT

Amended  IN  Assembly  April 10, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1035

Introduced by Assembly Member Muratsuchi

February 15, 2023

An act to add Section 798.30.7 to the Civil Code, relating to mobilehomes.


LEGISLATIVE COUNSEL'S DIGEST


AB 1035, as amended, Muratsuchi. Mobilehome parks: rent caps.
Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. Existing law defines “tenancy” for these purposes as the right of a homeowner to use a site within a mobilehome park on which to locate, maintain, and occupy a mobilehome for human habitation, including the use of the services and facilities of the park. Existing law, prohibits, with certain exceptions, the management of a mobilehome park from increasing the gross rental rate for a tenancy in a qualified mobilehome park, as defined, more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase, subject to specified conditions. Existing law defines “qualified mobilehome park” for these purposes as a mobilehome park that is located within and governed by the jurisdictions of 2 or more incorporated cities.
This bill would enact the Mobilehome Affordability Act. The bill would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenancy for a mobilehome space more than 3% plus the percentage change in the cost of living, as defined, over the course of any 12-month period, as specified. The bill would prohibit management from increasing the gross rental rate for a tenancy in more than 2 increments over a 12-month period, after the tenant maintains the tenancy over a 12-month period. The bill would prohibit management from imposing an increase in rent on a prospective purchaser or homeowner that purchases a mobilehome if the purchase qualifies as an in-place transfer, as specified. The bill would exempt specified mobilehome spaces from these provisions. The
This bill would specify that these provisions apply to rent increases for mobilehome spaces occurring on or after January 1, 2023. The bill would provide that in the event that management increased the rent by more than the amount specified above between January 1, 2023, and January 1, 2024, then the applicable rent on January 1, 2024, is the rent as of January 1, 2023, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment. The bill would provide that its provisions shall not impair, alter, or change any rental term or obligation contained in a rental agreement in effect between management and a resident as of January 1, 2024, and which was entered into or became effective before January 1, 2023, except as described. The bill would void any waiver of the rights provided under these provisions. The bill would authorize a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent, or other regulations for a tenancy. The bill would not apply to a mobilehome park when a local government has adopted an ordinance, rule, regulation, or initiative measure prior to the effective date of the bill before January 1, 2024, that establishes a maximum amount that may be charged by management for rent or otherwise regulates the rental rate for a mobilehome tenancy. tenancy in that mobilehome park.
This bill would state that its provisions are severable.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 This act shall be known, and may be cited, as the Mobilehome Affordability Act.

SECTION 1.SEC. 2.

 Section 798.30.7 is added to the Civil Code, to read:

798.30.7.
 (a) (1) Subject to paragraph (2) and except as provided in subdivision (b), management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy in a mobilehome park by more than 3 percent plus the percentage change in the cost of living, or 5 percent, whichever is lower, of the lowest gross rental rate charged for the tenancy at any time during the 12 months prior to the effective date of the increase.
(2) If the same homeowner maintains a tenancy over any 12-month period, the gross rental rate for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increases.
(b) (1) Except as provided in paragraph (2), for a new tenancy in which no homeowner from the prior tenancy remains in lawful possession of the mobilehome space, management may establish the an initial rental rate not subject to for the new tenancy without complying with subdivision (a). Subdivision However, subdivision (a) shall be applicable to subsequent increases of the rental rate after that initial rental rate has been established, except as unless otherwise provided in this section.
(2) Notwithstanding paragraph (1), management shall not impose an increase in rent on a prospective purchaser or homeowner that purchases a mobilehome if the purchase qualifies as an in-place transfer. Subdivision (a) shall apply to the new tenancy created after an in-place transfer and the initial rental rate shall be set at the rental rate of the previous tenancy.
(c) Management shall provide notice of any increase in the rental rate, pursuant to subdivision (a), rate to each homeowner in accordance with Section 798.30.
(d) (1) This section shall not apply to a tenancy for any of the following:

(1)

(A) A mobilehome space restricted by deed, regulatory restriction contained in an agreement with a governmental agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.

(2)

(B) A mobilehome space subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).

(3)

(C) A mobilehome space within a resident-owned mobilehome park, as defined in Section 799.

(4)

(D) A mobilehome space occupied by a resident who is not a homeowner, including, but not limited to, any spaces that are directly rented by management. The rental amount to be charged for any such spaces shall be governed by Sections 1946.2, 1947.12 and 1947.13.
(2) This section shall not apply to a mobilehome park when a local government has adopted an ordinance, rule, regulation, or initiative measure before January 1, 2024, that establishes a maximum amount that may be charged by management for rent or otherwise regulates the rental rate for a mobilehome tenancy in that mobilehome park.
(3) This section shall not impair, alter, or change any rental term or obligation contained in a rental agreement in effect between management and a resident as of January 1, 2024, and which was entered into or became effective before January 1, 2023. However, any rental provisions contained in those agreements shall be subject to the provisions of this section following the date upon which the term of the agreement has ended or has been renewed or extended.
(e) (1) This Except as provided in subdivision (d), this section shall apply to all rent increases occurring on or after January 1, 2023.
(2) In the event that management has increased the rent by more than the amount permissible under subdivision (a) between January 1, 2023, and January 1, 2024, both of the following shall apply:
(A) The applicable rent on January 1, 2024, shall be the rent as of January 1, 2023, plus the maximum permissible increase under subdivision (a).
(B) Management shall not be liable to a homeowner for any corresponding rent overpayment.
(f) Any waiver of the rights under this section shall be void as contrary to public policy.
(g) For the purposes of this section:
(1) “Consumer Price Index for All Urban Consumers for All Items” means the following:
(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:
(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.
(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.
(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.
(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo. San Mateo, and Santa Clara.
(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.
(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.
(C) On or after January 1, 2024, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (2), is first published.
(2) (A) “Percentage change in the cost of living” means the percentage change in the applicable CPI-U, as described in paragraph (1) and computed pursuant to subparagraph (B) of this paragraph.
(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:
(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(3) “In-place transfer” means the sale of a mobilehome pursuant to Article 7 (commencing with Section 798.70) where the mobilehome is transferred by a homeowner to a subsequent homeowner and remains at the same mobilehome space.
(h) (1) Nothing in this section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent, or other regulations for a tenancy.
(2) This section is not intended to express any policy regarding the appropriate, allowable rental rate increase imposed by ordinance, rule, regulation, or initiative measure regulating rent increases, nor in connection with the continuation of any mobilehome rent regulation that a local government has chosen to enact and administer, based upon the particular needs or economic conditions within the local jurisdiction.

(i)This section shall not apply to a mobilehome park when a local government that has adopted an ordinance, rule, regulation, or initiative measure prior to the effective date of this section that establishes a maximum amount that may be charged by management for rent or otherwise regulates the rental rate for a mobilehome tenancy.

SEC. 2.SEC. 3.

 The provisions of this measure are severable. If any provision of this measure or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.