California MHP News

Thu, Oct 25, 2018 – Online documents indicate that a Good Faith Settlement has been reached between Friendly Village Mobile Associates, L.P., a Daniel C. Fischer company that previously owned Friendly Village Mobile Home Park and is one of the named Defendants in the lawsuit.

There is currently a Motion to Seal the confidential settlement agreement between Plaintiffs (Friendly Village Mobile Home Park) and Defendant Friendly Village Mobile Associates, L.P. (FV-1) and all references to the settlement amount.

Jury trial continues against the remaining three defendants on Mon, Oct 29, 2018.

Mon, Oct 22, 2018 – Online documents indicate that a Motion was filed for Cooksey, Toolen, Gage, Duffy & Woog, Kort & Scott’s lead attorneys, to be relieved as counsel.

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Friendly Village MHP – Jury Trial Continues Against Three Defendants

Mon, Oct 15, 2018 – One day after Friendly Village MHP Associates, L.P. (“FVMHP”) filed a voluntary petition for bankruptcy (Wed, Oct 3, 2018), the court ruled that the ongoing trial is stayed as to FVMHP only and that the trial would continue against the three remaining defendants: Friendly Village GP, LLC (“FVGP”), Sierra Corporate Management, Inc. (“Sierra”), and Kort & Scott Financial Group, LLC (“K&S”) (collectively “FV-2" Defendants”).

How the Kort & Scott Financial Group DBA Structure Works

Debtor FVMHP is the entity that holds title to and owns the Friendly Village Mobile Home Park. Friendly Village GP, LLC is the general partner of the debtor, and as such is ultimately responsible for the debts of the limited partnership (in this case the debtor FVMHP). Sierra Corporate Management is the management company that is contractually bound to run and manage the Friendly Village Mobile Home Park, which is now under the control of bankruptcy court and trustee. Kort & Scott Financial Group was used as an acquisition vehicle for the purchase of mobile home parks.

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Friendly Village MHP – Kort & Scott DBAs File Chapter 7 Bankruptcy

Fri, Oct 12, 2018 – The owners of Friendly Village Mobile Home Park, who have been sued by tenants over their alleged neglect of the North Long Beach park, filed for bankruptcy earlier this month, court records show.

A judge on Friday, however, ruled that a civil trial that began in mid-September will continue, said Brian Kabateck, the attorney representing the more than 100 residents who sued.

As part of the bankruptcy filing, attorneys for Friendly Village unsuccessfully requested an immediate stay to a civil trial that has been underway for four weeks.

The plaintiffs expect to finish their case by the week of October 22, and the trial to be wrapped up by the end of the month or early November.

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Previous News Coverage

1. 2018-10-15 – Friendly Village Mobile Home Park – Jury Trial Continues Against Three Defendants
2. 2018-10-12 – Friendly Village Mobile Home Park – Kort & Scott DBAs File Chapter 7 Bankruptcy
3. 2018-09-10 – Friendly Village Mobile Home Park – KSFG and SCM to Face Jury Trial
4. 2017-03-21 – HCD Fails California Mobile Home Owners – Time and Time Again
5. 2016-12-11 – Friendly Village Mobile Home Park – Testing for Methane Levels
6. 2016-11-30 – Friendly Village Mobile Home Park – Legal Battle Involving Methane Leaks
7. 2016-04-03 – Friendly Village Mobile Home Park – HCD Violates 174 of 182 Lots

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Friendly Village Mobile Home Park

• Address: 5450 North Paramount Boulevard, Long Beach, California 90805
• County: Los Angeles
• Phone: 562-531-3002
• Spaces: 182
• Type: All Ages
• 2018 Space Rent: $1,350
• Purchased: Feb 2014, Amount: $23,000,000
• Management: Sierra Corporate Management
• 2018-10-08 – New Management: Investors’ Property Services
• DBA: Friendly Village GP LLC, Friendly Village MHP Associates LP
• DBA Filing: Nov 2010, Jan 2014

Mon, Oct 1, 2018 – Congratulations are in order! We (GSMOL) are happy to announce that as of Wed, Sep 26, 2018, Governor Jerry Brown signed AB 3066 – The Mobilehome Residency Law Protection Act into law.

AB 3066 was advocated for and sponsored by GSMOL and its members throughout California. Without support from you, our members, this wouldn’t have happened. So THANK YOU for all of your hard work on spreading the news and calling your legislators.

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Legislative Counsel’s Digest

This bill would enact the Mobilehome Residency Law Protection Act. Beginning July 1, 2020, the bill would establish the Mobilehome Residency Law Protection Program within the Department of Housing and Community Development, pursuant to which the bill would require the department to provide assistance in resolving and coordinating the resolution of complaints from homeowners relating to the Mobilehome Residency Law, as provided. The bill would require the department to refer matters within its jurisdiction to its Division of Codes and Standards and authorize it to refer matters not within its jurisdiction to the appropriate enforcement agency. The bill would require the department to select complaints for evaluation under the program, as provided. The bill would require the department to contract with one or more qualified and experienced nonprofit legal services providers and, if a complaint submitted to the program is not resolved during a 25-day period for negotiation between management and the complaining party, the bill would require the referral of complaints selected for evaluation to an appropriate enforcement agency or one of those nonprofit legal services providers, as provided. The bill would require management to provide specified information to the department within 15 business days from the postmark date or electronic transmission of a request for that information and require the imposition of a noncompliance citation of $250 for each failure to comply.

Beginning January 1, 2019, the bill would require the department to assess upon, and collect from, the management of a mobilehome park subject to the Mobilehome Residency Law an annual registration fee of $10 for each permitted mobilehome lot located within the mobilehome park, to be paid at the time of payment of the annual operating fee imposed under the Mobilehome Parks Act. The bill would authorize management to pass this fee on to the homeowners within the mobilehome park. The bill would require that all moneys collected pursuant to its provisions be deposited into the Mobilehome Dispute Resolution Fund, which this bill would establish, and make those moneys available, upon appropriation by the Legislature, for purposes of implementing the Mobilehome Residency Law Protection Act, as provided.
AB 3066 Mobilehome Residency Law Protection Act

Mon, Oct 1, 2018 – Senator Connie M. Leyva (D-Chino) is pleased to announce that Governor Jerry Brown signed two bills authored by the Senator that will improve the lives of mobilehome residents in California.

SB 46 and SB 1130 will help to enhance the safety and quality of life of residents and families living in mobilehomes in the Inland Empire and California,” Senator Leyva said. “As the Chair of the Senate Select Committee on Manufactured Communities, I have been proud to work with residents, local organizations and other groups over the last few years to continue to find ways to support California families living in mobilehomes. I thank the Governor for signing these two bills that will help to keep residents safe and in their homes.

Both SB 46 and SB 1130 take effect on Tuesday, January 1, 2019.

Senate Bill 46 extends the ability of the California Department of Housing and Community Development (HCD) to inspect mobilehome parks in California for health and safety violations an additional five years. HCD has previously identified accumulation of combustible materials, inadequate gas meters, and exposed live electrical parts as some of the top violations against mobilehomes and mobilehome parks. According to HCD, the program has seen roughly 75,000 violations corrected.

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Legislative Counsel’s Digest

The Mobilehome Parks Act requires the Department of Housing and Community Development or a city, county, or city and county that assumes responsibility for the enforcement of the act to enter and inspect mobilehome parks with a goal of inspecting at least 5% of the parks each year to ensure enforcement of the act and implementing regulations. Existing law also requires an enforcement agency to issue notice to correct a violation and provides for procedures for owners or operators to dispute and appeal violation notices, as specified. Existing law repeals these provisions on January 1, 2019. A violation of these provisions is a misdemeanor.

This bill would extend the repeal date of these provisions to January 1, 2024.
SB 46 Mobilehomes: Enforcement Actions: Sunset Provision

Mon, Oct 1, 2018 – Senator Connie M. Leyva (D-Chino) is pleased to announce that Governor Jerry Brown signed two bills authored by the Senator that will improve the lives of mobilehome residents in California.

SB 46 and SB 1130 will help to enhance the safety and quality of life of residents and families living in mobilehomes in the Inland Empire and California,” Senator Leyva said. “As the Chair of the Senate Select Committee on Manufactured Communities, I have been proud to work with residents, local organizations and other groups over the last few years to continue to find ways to support California families living in mobilehomes. I thank the Governor for signing these two bills that will help to keep residents safe and in their homes.

Both SB 46 and SB 1130 take effect on Tuesday, January 1, 2019.

Senate Bill 1130 helps keep California senior, blind, and disabled residents in their homes if and when they encounter financial difficulties. The measure specifically adds mobilehomes to a state property tax postponement program so that eligible manufactured home owners can apply for postponement of their property taxes.

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Legislative Counsel’s Digest

Existing law authorizes a claimant to file a claim with the Controller to postpone the payment of property taxes that are due on the residential dwelling of the claimant pursuant to the Senior Citizens and Disabled Citizens Property Tax Postponement Law, the Senior Citizens Tenant-Stockholder Property Tax Postponement Law, and the Senior Citizens Possessory Interest Holder Property Tax Postponement Law. Existing law, for purposes of these laws, defines a “residential dwelling” to mean a dwelling occupied as the principal place of residence of the claimant and owned by the claimant, the claimant and spouse, or by the claimant and another individual, as specified, including condominiums that are assessed as realty for local property tax purposes. Existing law continuously appropriates revenues in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund for, among other things, disbursements relating to the postponement of property taxes pursuant to these laws. Existing law authorizes the postponement of the payment of property taxes of a claimant who is the owner of a mobilehome for loans established prior to February 20, 2009, pursuant to the Senior Citizens Mobilehome Property Tax Postponement Law.

This bill would expand the definition of a “residential dwelling” to include a manufactured home, thereby authorizing a claimant who is the owner of a manufactured home to postpone the payment of property taxes. The bill, on July 1, 2019, and on July 1 each year thereafter, would require up to 1% of the amount available in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund for disbursements relating to postponement of property taxes to be available for residential dwellings that are manufactured homes. Because this bill would provide for an additional category of expenditures from the Senior Citizens and Disabled Citizens Property Tax Postponement Fund, a continuously appropriated fund, it would make an appropriation.
SB 1130 Property Tax Postponement: Residential Dwelling: Manufactured Homes