AMENDED IN SENATE OCTOBER 21, 2003
SENIOR SENATE PROPOSAL NO. 5
INTRODUCED BY SENIOR SENATOR WINSLOW
LEGISLATIVE
COUNSEL'S DIGEST
SP 5: MOBILEHOME PARKS: SALES
UNDER EXISTING LAW, THE OWNER OF A MOBILEHOME PARK WHO LISTS FOR SALE OR OFFERS TO SELL THE MOBILEHOME PARK TO ANY PARTY, EXCEPT IN SPECIFIED TRANSACTIONS, IS REQUIRED TO PROVIDE WRITTEN NOTICE OF HIS OR HER INTENTION TO SELL, UNDER CERTAIN CONDITIONS, TO ANY RESIDENT ORGANIZATION FORMED BY HOMEOWNERS AS A NONPROFIT CORPORATION, STOCK COOPERATIVE CORPORATION, OR OTHER ENTITY FOR PURPOSES OF CONVERTING THE MOBILEHOME PARK TO COOPERATIVE OR CONDOMINIUM OWNERSHIP AND FOR PURCHASING THE PARK.
THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD REPEAL THESE PROVISIONS, AND INSTEAD PROVIDE THAT HOMEOWNERS IN A MOBILEHOME PARK WHO HAVE FULFILLED CERTAIN REQUIREMENTS SHALL HAVE THE RIGHT OF FIRST REFUSAL IF A MOBILEHOME PARK OWNER DESIRES TO SELL THE PARK. THE MEASURE WOULD LIMIT APPLICATION OF THIS RIGHT OF FIRST REFUSAL TO MOBILEHOME PARKS IN WHICH 30% OF THE SPACES ARE OCCUPIED BY LOW-INCOME RESIDENTS OR HOMEOWNERS, AS SPECIFIED, OR THAT ARE BEING SOLD FOR THE EXPRESS PURPOSE OF CONVERTING THE PARK TO A DIFFERENT USE. TO HAVE THE RIGHT OF FIRST REFUSAL, THE MEASURE WOULD REQUIRE THAT: (1) THE HOMEOWNERS FORM A RESIDENT ORGANIZATION, AS SPECIFIED, THAT WOULD BE REQUIRED TO REPRESENT AT LEAST 2/3 'S OF THE MOBILEHOME OWNERS OF THE PARK AND BE AUTHORIZED TO ACT ON THEIR BEHALF; (2) THE RESIDENT ORGANIZATION CONTRACT WITH A 3RD PARTY TO FACILITATE THE PURCHASE; AND (3) THE RESIDENT ORGANIZATION PROVIDE NOTICE OF THE RESIDENTS' DESIRE TO PURCHASE THE PARK, IN WRITING, AS SPECIFIED, TO THE PARK OWNER OR MANAGER. THE MEASURE WOULD REQUIRE THE RESIDENT ORGANIZATION TO PROVIDE A SPECIFIED NOTICE IN ORDER TO MAINTAIN THE RIGHT OF FIRST REFUSAL.
THIS MEASURE WOULD REQUIRE A PARK OWNER TO FOLLOW A SPECIFIED PROCEDURE FOR INFORMING THE RESIDENT ORGANIZATION IF THE MOBILEHOME PARK OWNER DESIRES TO SELL THE PARK OR HAS RECEIVED AN OFFER FROM A 3RD PARTY TO BUY THE PARK, INCLUDING SPECIFYING THE PRICE AND TERMS OF THE POTENTIAL SALE. THE MEASURE WOULD PROHIBIT A SALE TO A 3RD PARTY AT A PRICE LESS, OR ON TERMS MORE FAVORABLE TO THE BUYER, THAN THOSE COMMUNICATED TO THE RESIDENT ORGANIZATION.
VOTE: MAJORITY.
SP 5: RELATING TO MOBILEHOME PARKS: SALES
WHEREAS, APPROXIMATELY 220,000 HOUSING UNITS NEED TO BE PRODUCED IN CALIFORNIA EACH YEAR TO MEET DEMAND. YET ONLY FOUR TIMES IN THE LAST 20 YEARS HAS THE PRODUCTION TARGET BEEN REACHED; AND
WHEREAS, WHILE THE NATIONAL HOMEOWNERSHIP RATE HAS REACHED A RECORD HIGH, THE RATE IN CALIFORNIA IS 10 PERCENT BELOW THE NATIONAL AVERAGE, AND RANKS 48TH IN THE NATION; AND
WHEREAS, THERE IS AN EXTREME SHORTAGE OF RENTAL HOUSING IN CALIFORNIA, PARTICULARLY FOR LOWER INCOME RENTERS; AND
WHEREAS, OVER ONE-THIRD OF ALL RENTER FAMILIES STATEWIDE PAY OVER HALF THEIR INCOMES IN RENT; AND
WHEREAS, MORE THAN 147,000 RENTAL UNITS BUILT IN THIS STATE PRIOR TO 1980 UNDER THE SECTION 236, SECTION 221(D)(3), AND SECTION 8 PROGRAMS OF THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND THE SECTION 515 PROGRAM OF THE FEDERAL FARMERS HOME ADMINISTRATION ARE AT RISK OF CONVERSION TO HIGHER RENT HOUSING OR CONDOMINIUM UNITS. LOSS OF THIS HOUSING STOCK WILL DISPLACE THOUSANDS OF ELDERLY, DISABLED, AND STRUGGLING FAMILIES WITH NO PLACE TO GO; AND
WHEREAS, THE BASIC HOUSING GOAL FOR STATE GOVERNMENT UNDER SUBDIVISION (B) OF SECTION 50003 OF THE HEALTH AND SAFETY CODE IS TO PROVIDE A DECENT HOME AND SUITABLE LIVING ENVIRONMENT FOR EVERY CALIFORNIA FAMILY; AND
WHEREAS, THERE IS A CRITICAL NEED TO PROTECT AND PRESERVE AFFORDABLE HOMES AND RENTAL HOUSING IN CALIFORNIA, AND SENIORS ON FIXED INCOMES AND INDIVIDUALS AND FAMILIES OF LOW AND MODERATE INCOME ARE PARTICULARLY VULNERABLE TO THE ESCALATING COSTS OF HOUSING, INCLUDING INCREASING RENTS ON MOBILEHOME SPACES UPON WHICH THEIR MOBILEHOMES ARE SITUATED; AND
WHEREAS, IN 1984, THE LEGISLATURE ENACTED THE MOBILEHOME PARK RESIDENT OWNERSHIP PROGRAM TO HELP FACILITATE THE PURCHASE OF MOBILEHOME PARKS BY RESIDENTS; AND
WHEREAS, MOBILEHOME PARKS PROVIDE AN AFFORDABLE FORM OF HOUSING AND HOMEOWNERSHIP FOR MANY CALIFORNIANS, AND THE CONVERSION OF PARKS TO RESIDENT OWNERSHIP IS OFTEN UNDERTAKEN TO ENSURE CONTINUED AFFORDABILITY; AND
WHEREAS, INCREASING RENTS AND LOW VACANCY RATES IN MOBILEHOME PARKS, AS WELL AS THE PRESSURE TO CONVERT MOBILEHOME PARKS TO OTHER USES, INCREASINGLY MAKE MOBILEHOME PARK LIVING INSECURE FOR MOBILEHOME OWNERS; NOW, THEREFORE, BE IT
RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2003 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT HOMEOWNERS IN A MOBILEHOME PARK WHO HAVE FULFILLED CERTAIN REQUIREMENTS SHALL HAVE THE RIGHT OF FIRST REFUSAL IF A MOBILEHOME PARK OWNER DESIRES TO SELL THE PARK; AND BE IT FURTHER
RESOLVED, THAT THE APPLICATION OF THIS RIGHT OF FIRST REFUSAL BE LIMITED TO MOBILEHOME PARKS IN WHICH 30 PERCENT OF THE SPACES ARE OCCUPIED BY LOW-INCOME RESIDENTS OR HOMEOWNERS, AS SPECIFIED, OR THAT ARE BEING SOLD FOR THE EXPRESS PURPOSE OF CONVERTING THE PARK TO A DIFFERENT USE; AND BE IT FURTHER
RESOLVED, TO HAVE THE RIGHT OF FIRST REFUSAL (1) THE HOMEOWNERS SHOULD BE REQUIRED TO FORM A RESIDENT ORGANIZATION THAT WOULD BE REQUIRED TO REPRESENT AT LEAST TWO-THIRDS OF THE MOBILEHOME OWNERS OF THE PARK AND BE AUTHORIZED TO ACT ON THEIR BEHALF; (2) THE RESIDENT ORGANIZATION SHOULD CONTRACT WITH A THIRD PARTY TO REPRESENT THE ORGANIZATION AND FACILITATE THE PURCHASE; AND (3) THE RESIDENT ORGANIZATION SHOULD PROVIDE NOTICE OF THE RESIDENTS' DESIRE TO PURCHASE THE PARK, IN WRITING TO THE PARK OWNER OR MANAGER; AND BE IT FURTHER
RESOLVED, THAT THE RESIDENT ORGANIZATION BE REQUIRED TO PROVIDE A NOTICE IN ORDER TO MAINTAIN THE RIGHT OF FIRST REFUSAL; AND BE IT FURTHER
RESOLVED, THAT THE PARK OWNER BE REQUIRED TO FOLLOW A PROCEDURE FOR INFORMING THE RESIDENT ORGANIZATION IF THE MOBILEHOME PARK OWNER DESIRES TO SELL THE PARK OR HAS RECEIVED AN OFFER FROM A THIRD PARTY TO BUY THE PARK, INCLUDING SPECIFYING THE PRICE AND TERMS OF THE POTENTIAL SALE; AND BE IT FURTHER
RESOLVED, A SALE TO A THIRD PARTY SHOULD BE PROHIBITED AT A PRICE LESS, OR ON TERMS MORE FAVORABLE TO A BUYER, THAN THOSE COMMUNICATED TO THE RESIDENT ORGANIZATION; AND BE IT FURTHER
RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER
RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT PRO TEMPORE OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.
RN0317208
- 0 -