Mobile Home Owner News – Sep 2020
Resident curated mobile home owners news and information for residents of California Mobile Home Parks managed by Sierra Corporate Management (SCM) and owned by a Kort & Scott Financial Group (KSFG) company. The MHPHOA also provides news coverage for California Mobile Home Parks not owned by KSFG.
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Tue, Sep 15, 2020 –
Anaheim Mayor Harry Sidhu might face a recall election after seniors from a mobile home park have started collecting signatures to toss the mayor out for refusing to consider rent control as well as his leadership on the Angel Stadium sale.
Seniors living at the Rancho La Paz mobile home park showed up to City Council meetings for months last year, lobbying City Council members to enact a mobile home rent control ordinance when they were faced with spiking rents.
After going to the council meetings and trying to talk to Sidhu, he just ignored us completely. And then, there was the whole bit about the stadium – just kind of giving it away. People are getting more and more upset with him,” said Rancho La Paz resident Cheryl Moi.
The recall effort doesn’t just stem from Sidhu’s opposition to previously proposed mobile home rent control ordinances, said Rancho La Paz resident Lupe Ramirez.
Spencer Custodio, Voice of OC
AB 2782 – Major Victory for California Cities/Counties with RSOs
Fri, Sep 11, 2020 – The MHPHOA attended Bruce Stanton’s Telephone Townhall on Fri, Sep 11, 2020 from 1:30 to 3:00 PM. During the Townhall, clarification was provided on AB 2782 and Section 798.17 of the Civil Code (Mobilehome Residency Law). The passing of this bill is a major victory and only applies to mobile home owners who live in a city or county that has a Rent Stabilization Ordinance (RSO).
In summary, here are the changes that will take place on Fri, Jan 1, 2021. The term rental agreement is synonymous with long-term lease. Rental agreements longer than 12 months are usually referred to as long-term leases and “used to be” exempt from local rent stabilization ordinances.
- Any rental agreements entered into on or after 01/01/2021 are no longer exempt from local rent stabilization ordinances. This means that ALL rental agreements must adhere to the local rent stabilization ordinance. No longer can mobile home park owners charge you more than what the RSO allows.
- Any rental agreements entered into from 02/13/2020 through 12/31/2020 are no longer exempt from local rent stabilization ordinances. The 02/13/2020 is the date the bill was submitted and this was added to prevent park owners from scrambling to lease up as many home owners as they could.
- On 01/01/2025, the law is repealed (removed) and all exemptions expire. This means that all rental agreements entered into on or before 02/12/2020 are no longer exempt from local rent stabilization ordinances. Anyone who has signed a long-term lease before 02/12/2020 will now be protected by the local rent stabilization ordinance of their city or county.
This bill does not make leases null and void. The lease MUST adhere to the local rent stabilization ordinance. For example, if there is a 6% yearly increase in the current lease, that section of the lease is no longer valid. It must match the allowed increases based on the local rent stabilization ordinance.
This bill prevents mobile home park owners from removing mobile homes from local rent stabilization ordinances. For example, here are comments (Apr 2019) from one mobile home park investor in California showing their investors how they had planned on removing mobile homes from local rent stabilization ordinances.
Purchase homes in the park to remove them from rent control.
Once homes are purchased, we’ll sell them to new residents with a 10 year lease, or allow current residents to continue to live there as renters instead of owners. The plan is to convert 12 per year in this manner and bring the park to market rents over a conservative 10-year period.
The repeal of Section 798.17 will close a major loophole in the California MRL and we wish to thank everyone who was involved in the drafting and promotion of this bill – the list is long!
Mon, Aug 31, 2020 – AB 2782 Signed by Governor
Mon, Aug 31, 2020 –
Governor Gavin Newsom today announced that he has signed legislation to protect millions of tenants from eviction and property owners from foreclosure due to the economic impacts of COVID-19. These protections apply (PDF) to tenants who declare an inability to pay all or part of the rent due to a COVID-related reason.
The Governor also announced that he has signed the following bill: AB 2782 by Assemblymember Mark Stone (D-Scotts Valley) – Mobilehome parks: change of use: rent control.
Note: Due to COVID-19, SB 999 was not heard, it was merged into AB 2782.
An act to amend Section 798.56 of, and to amend and repeal Section 798.17 of, the Civil Code, and to amend Sections 65863.7 and 66427.4 of the Government Code, relating to mobilehomes.
SECTION 1. The Legislature finds and declares all of the following:
(a) Based on data released by the Department of Finance in May of 2019, there are approximately 560,000 mobile and manufactured homes in the State of California.
(b) The economic hardships brought on by the COVID-19 pandemic will likely cause many households difficulty in remaining current on their rental or mortgage housing payments through no fault of their own.
(c) A study released in June of 2017 by the Rosen Consulting Group and the University of California, Berkeley suggests that the economic and health impacts of a widespread economic crisis, such as the one currently being experienced due to the COVID-19 pandemic, is likely to disproportionately impact mobilehome residents, who are typically older than the general population.
(d) Without emergency action to prevent the displacement of mobilehome residents who have fallen behind on space rental payments, there will likely be a significant increase in homelessness, exacerbating the ongoing homelessness crisis in the state.
(e) Those experiencing homelessness will not be able to comply with public health orders related to social distancing and self-quarantining, nor will they have access to facilities for maintaining good hygiene.
(f) According to the Mobile Home Park Home Owners Allegiance, as of March 3, 2020, there were nine counties and 83 cities throughout California that enacted mobilehome rent stabilization ordinances that provide residents with tenant protections against unexpected and substantial rent increases.
(g) There is a current and immediate threat to the public health, safety, and welfare of California residents and a need for the immediate preservation of the public peace, health, and safety that warrants the amendments to Section 798.17 of the Civil Code, as set forth in this bill, based upon the facts set forth in this section.
SEC. 2. Section 798.17 of the Civil Code is amended to read:
798.17. (a) (1) Except as provided in subdivisions (i), (j), and (k), rental agreements meeting the criteria of subdivision (b) shall be exempt from any ordinance, rule, regulation, or initiative measure adopted by any local governmental entity which establishes a maximum amount that a landlord may charge a tenant for rent. The terms of a rental agreement meeting the criteria of subdivision (b) shall prevail over conflicting provisions of an ordinance, rule, regulation, or initiative measure limiting or restricting rents in mobilehome parks, only during the term of the rental agreement or one or more uninterrupted, continuous extensions thereof. If the rental agreement is not extended and no new rental agreement in excess of 12 months’ duration is entered into, then the last rental rate charged for the space under the previous rental agreement shall be the base rent for purposes of applicable provisions of law concerning rent regulation, if any.
(i) This section shall not apply to any rental agreement entered into on or after January 1, 2021.
(j) This section shall not apply to any rental agreement entered into from February 13, 2020, to December 31, 2020, inclusive.
(k) This section shall remain in effect until January 1, 2025, and as of that date is repealed. As of January 1, 2025, any exemption pursuant to this section shall expire.
Thu, Feb 20, 2020 – Introduced by Assembly Member Mark Stone, Assembly Bill 2782, an act to amend Section 798.56 of the Civil Code, and to amend Sections 65863.7 and 66427.4 of the Government Code, relating to land use.
Existing law, the Mobilehome Residency Law, requires the management of a mobilehome park to comply with notice and specified other requirements in order to terminate a tenancy in a mobilehome park due to a change of use of the mobilehome park, including giving homeowners at least 15 days’ written notice that the management will be appearing before a local governmental board, commission, or body to request permits for the change of use.
This bill would instead require the management to give homeowners at least 60 days’ written notice that the management will be appearing before a local governmental board, commission, or body to obtain local approval for the intended change of use of the mobilehome park.
AB-2782 Mobilehome Parks: Change of Use (2019-2020)
Sponsors: Golden State Manufactured-Home Owners League (GSMOL), California Rural Legal Assistance Foundation (CRLAF)
Advocates Seeking Organizational Support for California Senate Bill 999
RE: Senate Bill 999
Thu, Mar 5, 2020 –
On behalf of [Organization], I am proud to write in support of your bill, Senate Bill 999, which would restore local control and help ensure rent affordability for mobilehome residents by removing a state-imposed loophole in local mobilehome rent stabilization ordinances. Loopholes in state law to local rent stabilization ordinances have undermined local control and prevented any effective safeguards against rent abuse from being implemented.
Sponsors: Golden State Manufactured-Home Owners League (GSMOL) (Co-Sponsor), County of Los Angeles (Co-Sponsor)
SB 999 Sample Support Letter
GSMOL Letter to The Honorable Tom Umberg
Office of Legislative Counsel Draft Bill
SB 999: Local Rent Stabilization; Mobilehomes
Thu, Feb 13, 2020 –
Senator Thomas J. Umberg (D-Santa Ana) introduced Senate Bill 999 today, a measure that would restore local control and stem the tide of rapidly increasing rental rates for mobilehomes across California. The County of Los Angeles and Golden State Manufactured Home Owners League are cosponsors of the bill, representing a strong coalition between local government and residents.
When it comes to the issue of rent affordability for mobilehome residents, state law has been a part of the problem, not the solution, said Senator Umberg. Senate Bill 999 will provide local governments with a real opportunity to make community-informed decisions that protect residents. Our housing crisis demands solutions at every level, for all incomes, and all kinds of homeowners and renters, continued Senator Umberg.
Senate Bill 999, coauthored by Assemblymember Monique Limón, would remove a loophole in state law that has effectively prevented local governments from enforcing their own rent stabilization ordinances for mobilehome residents. Current law prevents local rent stabilization ordinances from applying to any mobilehome resident with a lease longer than 12 months.
Sponsors: Golden State Manufactured-Home Owners League (GSMOL) (Co-Sponsor), County of Los Angeles (Co-Sponsor)
Related: MRL Exploits – Repeal MRL §798.17
Wed, Jan 1, 2020 – Historical Assembly Bill (AB) NOT Passed –
Thu, Feb 18, 2016 – AB-2351 Mobilehome parks: rent control. Introduced by Assembly Member Roger Hernández – An act to repeal Section 798.17 of the Civil Code, relating to mobilehome parks.
The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks, and exempts a rental agreement that satisfies specified criteria, including that it be in excess of 12-months’ duration, from any ordinance, rule, regulation, or initiative measure adopted by a local governmental entity that establishes a maximum amount a landlord may charge a tenant for rent.
This bill would repeal these provisions. The bill would make a statement of legislative findings.
WMA – AB 2782 Should Face Significant Legal Challenges
Sep 2020 WMA Legislative Update –
AB 2782 (Stone, D-Santa Cruz) passed with 42 votes in the Assembly, this is the bill that was amended with the SB 999 (Umberg, D-Orange County) language, which was defeated in the Assembly Housing and Community Development Committee.
This “Jail Break” bill set a precedent in the Assembly by allowing a bill killed in policy committee to be inserted into another bill that bypassed the committee process to be passed on the Floor with a bare minimum of votes. WMA and our allies (CMPA, the California Association of Realtors, and the Security Investment Company) worked this bill tirelessly, and that is a large reason the bill passed with a bare majority instead of a supermajority. The park closure portion of this bill, while largely watered down, still has problems including requiring in-place value and other changes.
AB 2782 has already been signed by the Governor, Chapter 35, but it should face significant legal challenges in the Courts due to Constitutional issues involving the interference of private contracts along with other issues.
Chris Wysocki, WMA State Legislative Advocate
MRL Protection Program
Beginning July 1, 2021, any mobilehome or manufactured homeowner living in a mobilehome park under a rental agreement may submit a complaint for an alleged violation of the Mobilehome Residency Law. Any mobilehome or manufactured homeowner residing in a permitted mobilehome park is eligible to submit a complaint. Complaints must be submitted to HCD. HCD provides assistance to help resolve and coordinate resolution of the most severe alleged violations of the Mobilehome Residency Law.
Any mobilehome / manufactured homeowner who lives in a mobilehome park.
What Types of Complaints can be Submitted for Consideration?
Any complaints for issues within mobilehome parks related to Mobilehome Residency Law violations (California Civil Code).
Common violations include illegal grounds for eviction, failure to provide proper notice of rent increases, or no written rental agreement between the park and mobilehome owner.
How Does a Mobilehome/Manufactured Homeowner Submit their Complaint?
Complaints must be submitted to HCD. HCD provides help to resolve and coordinate resolution of the most-severe alleged violations of the Mobilehome Residency Law. Visit the Submit a Complaint webpage for details.
Stop Predatory Park Owners
Kort & Scott Pay $57 Million
Largest Mobile Home Park Settlement Ever
Fri, Nov 22, 2019 –
Kabateck LLP attorneys representing hundreds of low-income mobile home residents in Long Beach, California secured a nearly $57 million settlement, which is the largest settlement ever involving a mobile home park.
Civil Lawsuits Against Kort & Scott DBAs