Code Section

798.74.  

(a) The management may require the right of prior approval of a prospective purchaser of a mobilehome that will remain in the park.

(b) (1) A selling homeowner or their agent shall give notice of a sale of a mobilehome that will remain in the park to management before the close of the sale.

(2) Management shall, within 15 days, provide the seller and the prospective purchaser both of the following, in writing, upon receiving the notice required in paragraph (1):

(A) The standards that management customarily utilizes to approve a tenancy application, including the minimum reported credit score from a consumer credit reporting agency that management requires for approval.

(B) A list of all documentation that management will require to determine if the prospective purchaser will qualify for tenancy in the park.

(c) Management shall not withhold approval from a prospective purchase of a mobilehome unless any of the following apply:

(1) Management reasonably determines that, based upon the purchaser’s prior tenancies, they will not comply with the rules and regulations of the park.

(2) The purchaser does not have the financial ability to pay the rent, estimated utilities, and other charges of the park.

(3) The purchaser has committed fraud, deceit, or concealment of material facts during the application process.

(d) In determining whether the prospective purchaser has the financial ability to pay the rent and charges of the park pursuant to paragraph (2) of subdivision (c), the management may require the prospective purchaser to document the amount and source of their gross monthly income or means of financial support. However, management shall not require the prospective purchaser to submit any of the following:

(1) Documentation beyond that disclosed pursuant to subparagraph (B) of paragraph (2) of subdivision (b).

(2) Copies of any personal income tax returns.

(e) (1) Within 15 business days of receiving all of the information requested from the prospective purchaser, management shall notify the seller and the prospective purchaser, in writing, of either acceptance or rejection of the application. During this 15-day period, the prospective purchaser shall comply with management’s request, if any, for a personal interview.

(2) (A) If management rejects the application, management shall state the reason for the rejection in accordance with subdivision (c). If the rejection is based upon an alleged lack of financial ability to pay the rent, estimated utilities, and other charges of the park, as described in paragraph (2) of subdivision (c), the prospective purchaser may elect to provide additional financial or asset information to management to demonstrate their financial ability to pay the rent, estimated utilities, and other charges of the park. For purposes of this paragraph, “additional financial information” includes, but is not limited to, the following:

(i) Savings accounts.

(ii) Certificates of deposit.

(iii) Stock portfolios.

(iv) Trust interests of which the purchaser is a beneficiary.

(v) Real property.

(vi) Similar financial assets that can be liquidated or sold.

(B) If the prospective purchaser elects to provide additional financial and asset information specified in subparagraph (A), management shall consider the information together with the prospective purchaser’s gross monthly income to determine whether the purchaser has the financial ability to pay the rent, estimated utilities, and other charges of the park.

(C) If a prospective purchaser provides additional financial and asset information, management may also consider any liabilities of the prospective purchaser when making a final determination of the prospective purchaser’s ability to pay the rent, estimated utilities, and other charges of the park under this subdivision.

(f) If the management collects a fee or charge from a prospective purchaser of a mobilehome in order to obtain a financial report or credit rating, the full amount of the fee or charge shall be credited toward payment of the first month’s rent for that mobilehome purchaser. If, for whatever reason, the prospective purchaser is rejected by the management, the management shall refund to the prospective purchaser the full amount of that fee or charge within 30 days from the date of rejection. If the prospective purchaser is approved by the management, but, for whatever reason, the prospective purchaser elects not to purchase the mobilehome, the management may retain the fee, or a portion thereof, to defray its administrative costs under this section.

(g) Management may be held liable by the selling homeowner for any and all damages proximately caused by management’s failure to comply with this section.

(h) For purposes of this section:

(1) “Charges” means all charges authorized and imposed by management under Section 798.31.

(2) “Consumer credit reporting agency” has the same meaning as defined in subdivision (d) of Section 1785.3.

(3) “Credit score” has the same meaning as defined in subdivision (b) of Section 1785.15.1.