Mobilehome Residency Law: July 2015

Monday, July 27, 2015

The Mobilehome Residency Law

Learn what the Mobilehome Residency Law (MRL) contains in the following course of study. Become a MRL Master.

Manufactured home owners who live in leased-space parks take on a dual role as home owner and park tenant. In addition, private individuals or corporations own most parks, not the residents. The United States Court of Appeals for the 9th Circuit stated: "Because the owner of the mobile home cannot readily move it to get a lower rent, the owner of the land has the owner of the mobile home over a barrel." (Guggenheim v. Goleta, Dec. 2010)

This complex housing situation has few if any other parallels. Manufacturers and dealerships, park owners and managers abused households that purchased manufactured homes. As a result of abuses, the Golden State Manufactured-home Owners League (GSMOL) championed laws and California legislators adopted laws to partially protect the rights of home owners. These laws became consolidated in the MRL, generally California Civil Code Sections 798 and 799.

Park residents must enforce the MRL by standing up for their rights. They may ultimately need to go through the civil courts. To succeed, they must know the contents of the MRL.

Friday, July 17, 2015

Resident Right to Organize, Meet and Post Signs

Important rights that the Residency Law protects include those to meet and form organizations. Park rules, rental agreements and managers must allow residents to:

Meet in the park at reasonable hours and in a reasonable manner;
Meet in the clubhouse when it’s not being used;
Invite public officials, candidates, or representatives of homeowner associations to speak; and
Talk and distribute information to home owners, door-to-door for noncommercial purposes at reasonable hours and in a reasonable manner.

One or more park residents can host resident organization meetings in the Park clubhouse. Park managers cannot charge home owners a cleaning deposit before the event. All home owners should be allowed to attend. Guests from outside the park may attend. Resident organizations must adhere to vehicle parking restrictions and maximum occupancy restrictions.

In general, park managers cannot require the meeting organizers to obtain liability insurance. If alcoholic beverages are served, managers may require a liability insurance binder or park rules may prohibit consumption of alcoholic beverages.

Residents may post political campaign signs in the window or on the side of their homes. The size may not exceed six square feet. Political signs generally may be put up ninety days prior to an election and taken down fifteen days after the election.

Civil Code Section 798.51.

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Copyright - Carl Eric Leivo, Ph.D.

Management Meetings with Residents

Does the park manager have to meet with a resident if they send a written request for a meeting? Yes/No/Maybe

The correct answer is yes. Residents can request that park managers meet with them. Upon receiving a written request, managers must meet with residents according to the Residency Law. The meeting may be with one resident, a group of residents or representatives.

Can a park resident speak in behalf of their neighbor at a meeting with a manager? Yes/No/Maybe

The correct answer is maybe. Residents can appoint someone to represent them at a meeting with the manager. They must sign a written representation request.

Are the main reasons to have a meeting between residents and park managers violations of the Mobilehome Residency Law, rent control or other state and local laws? Yes/No/Maybe

The correct answer is no. Open communication between park managers and residents can resolve many issues. In addition to state and local laws, meetings between park managers and residents often address:

Concerns regarding park rules;
Maintenance of physical improvements in the park;
Additions, alterations or deletion of services, equipment or physical improvements; and
Rental agreements.

Does the Residency Law require managers to meet with residents within 30 days of receiving a written request? Yes/No/Maybe

The correct answer is yes. The Residency Law requires that park managers must meet with residents within 30 days of receiving a written request. Managers must also provide notices to home owners ten or more days before meetings.

Civil Code Section 798.53.

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Rental Agreement

Home owners must sign a lease agreement in order to occupy a space in a land-lease park.
Rental agreements list:

The term of the tenancy;
The space rent;
Park rules and regulations;
Physical improvements and common facilities that the park will provide and maintain;
The time frame to repair facilities if they break down or deteriorate, usually 30 days;
Physical improvements to be provided to the homeowner during their tenancy;
Services to be provided to the homeowner during the term of tenancy and the fees, if any, to be charged for those services; and
All other provisions governing the tenancy.

The text of the Mobilehome Residency Law should be incorporated in the rental agreement by reference.

Civil Code Section 798.15

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Month-to-Month Versus Long Term Rental Agreements

Question: While it may be best to get a long term lease for an apartment, should manufactured home owners sign long term leases?

Answer: Manufactured home owners in jurisdictions that have adopted rent control ordinances may want month-to-month tenancies. The Mobilehome Residency Law protects the rights of home owners to seek the protections of local government rent control ordinances. Home owners who sign long term rental agreements with terms of over twelve months fall outside of local rent control protections.

Question: How is a long term lease defined?

Answer: Long term leases have a term of 12-months or longer.

Question: How do buyers, who will become new park residents know that a long term lease will exempt them from space rent control?

Answer: The first sentence of long term rental agreements must state that space rents will be exempt from local rent control ordinances. Home owners have at least thirty days to review the rental agreement before signing. After signing a long-term agreement, home owners may void the agreement by giving the park management a written notice within 72 hours.

Question: What if the park manager only offers long term leases?

Answer: New and current home owners may reject long term rental agreements offered by park management. The Residency Law entitles home owners to accept rental agreements for a term of twelve months or less including a month-to-month agreement. Short term agreement rental rates, terms, service charges, utility rates, rules and conditions must be the same as those offered under the long term rental agreement. Park managers may offer gifts, other than rental rate reductions, to home owners who execute long term rental agreements.

Question: What if a home owner's long term lease is about to expire? Do they have to sign an extension of the new long term lease?

Answer: Any provisions of space rent control ordinances do not apply during the term of long term rental agreements and any extensions. Long term agreements may not have automatic extension clauses according to the Residency Law. Home owners may decide not to extend the long term agreement. The last rental rate charged for the space becomes the base rent under the space rent control ordinance.

Civil Code Sections 798.17 & 798.18.

Government Fees

Local governments may charge space rent control administration costs to manufactured home owners. Park management collects the fees and sends it to the local government. If the government fee is increased or decreased, the park must increase or decrease the fee it collects. The fee should be separately stated on home owner’s bills. If the fee has a time limit, the expiration date shall be stated on the initial notice and each billing.

The space rent control fee does not include any:

Costs imposed on the park owner or management by a court;
Application fees or other costs that park management normally pays under the local rent control ordinance; and
Taxes imposed upon the park.

Civil Code Section 798.49.

Image courtesy of Stuart Miles at freedigitalphotos.net
Copyright - Carl Eric Leivo, Ph.D.

Park Rules

Park owners and managers may create park rules and provide copies to residents. In order to amend park rules, managers must first schedule a meeting with residents. Home owners should receive a notice from management ten or more days before the meeting. The notice should list the proposed amendments and state the date, time and location of the meeting. Six months after the meeting the amendment may be implemented with or without the home owners’ consent. If park rules need to be changed to comply with a change in government law or regulation, managers can make the change by providing home owners a sixty day written notice.

Park managers may implement and amend separate recreational facility regulations without home owner consent. Managers must provide home owners a sixty day written notice of new recreational facility regulations.

Any change in park rules that creates a new fee is unenforceable. Home owners must agree to fees in written rental agreements.

Any rules unilaterally adopted by park management that denies home owners their right to trial by jury or mandates binding arbitration is void and unenforceable.

Civil Code Sections 798.25 & 798.25.5.

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Notices

The Residency Law expects park owners and managers to provide the following notices. Notices may be posted, delivered personally or mailed to home owners (MRL Code Section 798.14).

Managers must give home owners written notice of any rent increases at least ninety days before the date of the increase (MRL Code Section 798.30).
Rental agreements may identify services that parks provide residents and fees for these services. Managers must provide written notices to home owners at least sixty days before imposing or increasing service fees (MRL Code Section 798.31).
On occasion utility service might be interrupted for maintenance, repair or replacement of facilities. If service will be interrupted for more than two hours, park managers must post a written notice on all affected homes at least 72 hours in advance. This rule does not apply to emergencies (MRL Code Section 798.42).
The Residency Law requires managers to notify home owners and buyers of the zoning or use permit under which parks operate. Parks may lease land from other property owners. Managers must notify home owners of any such leases. If a change occurs in zoning, a use permit or a lease that affects the park, park managers must notify all home owners within thirty days of that change. Buyers shall be notified prior to the beginning of their tenancy. If a park’s use permit or lease is about to expire or needs to be renewed, the germane information and dates should be included in a notice to home owners (MRL Code Section 798.27).
Owners may decide to sell a park. Park residents can receive notification of the pending sale. Residents must form a home owners' organization. The organization must allually notify the park owner of the residents' interest in purchasing the park and provide the names of the organization's officers. The Residency Law requires owners to notify the officers of a home owners’ organization that their park is for sale. (MRL Code Section 798.80).
Parks may be owned by individuals, partnerships and corporations. Owners may hire management firms to handle the day-to-day operations of a park. Sometimes it may be difficult for home owners to know who actually owns a park. The Residency Law requires that managers disclose the name, business address and business telephone number of park owners when requested by a homeowner (MRL Code Section 798.28).
Park managers must post the mobile home ombudsman sign provided by the Department of Housing and Community Development (MRL Code Section 798.29).

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Thursday, July 16, 2015

Authorized Fees

Can park managers charge a new homeowner a fee for approving a short term lease? Yes/No/Maybe

The correct answer is no. The MRL prevents park owners from charging fees in exchange for offering a short term lease of less than twelve months. Home owners may voluntarily agree to pay a fee in exchange for signing a lease with a term of twelve months or more.

Can park operators charge an extra fee in addition to space rent for utilities and special services provided to home owners? Yes/No/Maybe

The correct answer is yes. Most parks receive utility services from outside the park at a master meter. Park owners distribute utility services within the park to individual home owners. The cost of these utilities may be included in space rents or the MRL allows park operators to charge utility fees in addition to space rents.

Park operators may also charge fees for special services. Utilities, services and fees must be listed in the rental agreement and separately on homeowner bills. Park owners may charge fees for a limited time if authorized in the rental agreement such as capital improvement pass-throughs. If so, the fee expiration date should be listed on the initial notice and each bill.

Does the MRL allow park operators to demand a security deposit from homeowners? Yes/No/Maybe

The correct answer is maybe. Managers may demand security deposits only when a home owner first moves into a park, according to the MRL. The amount cannot exceed two month’s space rent plus rent for the first month. The lease agreement should explain when the security deposit will be returned to the home owner. Managers are not required to place security deposits in interest-bearing accounts or provide home owners with interest on security deposit refunds.

Can managers charge residents for enforcement of park rules? Yes/No/Maybe.

The correct answer is no. Home owners shall not be charged fees for enforcement of park rules and regulations, according to the MRL.

Can managers pass through to residents court fines and costs that the park owner must pay for a violation of the MRL? Yes/No/Maybe

The correct answer is no. Park managers may not charge home owners any fees to recover court assessments against the park owner or manager for violation of the Residency Law. These court assessments include fines, forfeitures, penalties, money damages, attorney’s fees, and costs.

Can park owners charge home owners a fee to cure a lien or security interest in a home? Yes/No/Maybe

The correct answer is yes. Park owners may not acquire a lien or security interest in a mobile or manufactured home with two exceptions. Home owners may voluntarily grant a lien or security interest in a home to the park operator. Courts may award a lien or security interest in a home to the park operator. Any billing in such cases must be kept separate from space rent charges.

Civil Code Sections 798.31, 798.36, 798.38, 798.39 & 798.39.5

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Utilities

Utilities may include electricity, natural gas, water, sanitary sewers, trash and recycling pick-up and cable TV. Utility services may be provided by local governments, public utilities and private companies.

In some cases, utilities charge parks a single fee for the services they provide to a master meter. Park owners operate sub-utility systems and deliver electricity, natural gas and other utility services to individual homes. Park managers pass through utility charges to home owners plus and additional fee.

Sub-meters have been installed in some parks for specific utilities. Charges to homeowners are based on actual utility use. When parks do not have sub-meters, homeowners pay an average amount for utility service.

Park managers must separately state utility charges on homeowner bills, whether calculated from a master meter or sub-meters. Managers must post the prevailing residential utility rates published by utility companies providing services. If a park hires a billing agency to prepare utility bills, managers must disclose on each homeowner’s bill the name, address and telephone number of the billing agent.

In selected parks, management includes utility costs in rent bills. Park managers may decide to change and bill home owners separately for space rent and utilities. On the first separate billing, average utility charges should be subtracted from space rents. Utility charges should be based on utility service during the previous twelve months. Space rents without utility charges may continue to be covered by local government rent control ordinances. Park management begins to bill separately for utility service charges, which are not subject to local rent control.

Civil Code Sections 798.40 & 798.41.

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California Alternate Rates for Energy Program

Lower income residents in California can qualify for reduced electricity and natural gas charges. The California Alternate Rates for Energy (CARE) program contains special provisions to help households in master meter parks. By February 1 of each year, managers should notify home owners about the CARE program. The notice should be posted and sent with utility bills.

Utility companies accept CARE program applications. Managers may help process applications or home owners may submit applications individually. The Residency Code requires that park managers provide home owners with all information required by utility companies. Managers must pass through the full CARE discount in monthly utility bills to home owners who qualify. The discount must be noted on the home owner’s bill.

Civil Code Section 798.43.1.

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Liquefied Petroleum Gas Sales

Home owners in some parks use liquefied petroleum gas (LPG or propane) for heating and cooking. In some cases home owners may independently purchase LPG from suppliers. Parks may sell LPG to home owners. If so, the home owners’ charge may not exceed 110 percent of the actual price that the park paid for the LPG. Park managers must post the actual price paid for LPG. Federal, state, and local government regulations apply with regard to installing and maintaining LPG supply tanks.

Civil Code Section 798.44.

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Wednesday, July 15, 2015

Pets

Can park managers prohibit pets in parks? Yes/No/Maybe

The correct answer is no. As of 2001, the Residency Law allows home owners to keep at least one pet. Park regulations may allow residents to keep more than one pet and may set reasonable rules.

Can park managers charge a fee for pets? Yes/No/Maybe

The correct answer is no. Park management cannot charge residents a fee for keeping pets according to the MRL.

Can park management charge residents for pet boarding? Yes/No/Maybe

The correct answer is yes. The MRL states that parks may provide facilities and services such as pet boarding. Managers may charge reasonable fees when home owners use such extra services.

Civil Code Section 798.33
Copyright - Carl Eric Leivo, Ph.D.
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Resident Privacy

The Residency Law protects the privacy of residents. Park managers have no right to enter a home or enclosed accessory structure without the prior written consent of a resident. Residents may revoke such consent in writing at any time. Park managers may enter a home without a resident’s consent during emergencies. Managers also may enter abandoned homes.

Park crews may maintain utilities, trees, and driveways on spaces. If home owners fail to keep up their spaces according to park rules, park staff may enter and clean up such spaces. Park employees must take reasonable care to not interfere with the resident’s quiet enjoyment of their home.

Civil Code Section 798.26.

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Removing Vehicles

The Residency Law largely prevents managers from removing vehicles from space driveways and designated parking spaces. Nevertheless, vehicles in poor repair may violate park rules. In such cases, managers may post a notice on the windshield. The notice should state the rule violation, justify removal of the vehicle and indicate that park management intends to remove the vehicle. If the resident does not remove the vehicle in seven days, the park manager may remove the vehicle from the driveway or designated parking space. Managers may immediately remove vehicles that pose a health or safety danger.

If managers take proper steps, they can remove vehicles from common areas, streets and parking spaces. Signs must be placed at all entrances to manufactured home parks. The signs must not be less than 17 inches by 22 inches. The signs should prohibit public parking and indicate that vehicles will be removed at the owner’s expense. Signs should list the telephone numbers of the local traffic law enforcement agency. Customarily parks contract with towing companies to remove vehicles. Signs should show the name and telephone number of the towing companies.

Park managers may identify vehicles in violation of the park's public parking rules. They authorize a towing company to tow the vehicle. Within one hour, management must notify the local traffic law enforcement agency. The tow company takes the vehicle to a storage yard and notifies the vehicle’s owner. Owners pay towing and storage fees and retrieve their vehicles.

Civil Code Section 798.28.5 and Vehicle Code Section 22658.

Driveways

Question: Who is responsible for driveway maintenance?

Answer: Generally, park owners retain sole responsibility for driveway maintenance, repair, replacement, paving and sealing. This rule applies to driveways installed by the current or previous park owner. Maintenance includes repair of tree root damage even though the tree may have been planted by the home owner.

Question: What if the previous home owners replaced and upgraded the driveway at their own expense?

Answer: Home owners then must maintain improved driveways that they or previous home owners installed.

Who do you think must maintain this driveway?

Question: Can the park manager require home owners to maintain driveways.

Answer: Park rules may list home owner duties to clean and maintain driveways. Home owners may be charged for repair of any damage they cause to driveways. For example, heavy trucks may crack and break some driveways.

Civil Code Section 798.37.5

Trees

Does the MRL address trees? Yes/No?Maybe

The correct answer is yes. Home owners and managers sometimes squabble about trees. Trees have become such an issue that lawmakers addressed them in the Residency Law.

Does a home owner have the right to plant a tree on their space? Yes/No/Maybe

The correct answer is maybe? Home owners cannot plant a tree on their space without first obtaining written permission from the park manager. There may be underground utility lines or other reasons why a tree should not be planted at a specific location. The permission letter should be kept with important home papers.

Buyers, whether installing a new manufactured home or buying an existing home, should request a copy of permission letters if trees were planted on their space. If previous owners do not have such letters, home buyers should obtain an acknowledgement from park managers that trees existed prior to their occupancy.

Are park managers responsible for maintenance of trees in common areas? Yes/No/Maybe

The correct answer is yes. Park managers bear sole responsibility for trimming, pruning, removal and maintenance of all trees in common areas according to the MRL. The park owner must pay these costs.

Are home owners responsible for maintenance of trees on their space? Yes/No/Maybe

The correct answer is maybe. Park rules may specify that home owners are responsible for minor maintenance of trees on their space. On the other hand, the Residency Law addresses trees on home spaces that pose a health or safety threat. Home owners may write and ask park managers to take care of a hazardous tree. Managers determine if a tree is a hazard. If park managers and home owners disagree about a tree, either may request that a Department of Housing and Community Development (HCD) inspector examine the tree. Park staff or landscape contractors may enter leased spaces to trim, prune, or remove hazardous trees. Park owners pay the cost of maintenance of hazardous trees.

Civil Code Section 798.37.5

Disabled Accommodations

Park managers cannot prohibit installation of accommodations for the disabled. These installations might include ramps, handrails and mechanical lifts. Home owners must obtain a construction permit. The State Department of Housing and Community Development (or local government agencies authorized to do inspections) should verify that installations comply with codes. Managers may require that installations be removed when manufactured homes are sold.

Civil Code Section 798.29.6

Family Members, Guests and Live-In Care Providers

The Residency Law prohibits managers from charging home owners a fee based on the number of family members living in the home.

Managers cannot charge home owners a fee for guests. Guests cannot stay more than twenty consecutive days or a total of thirty days in a calendar year. Managers cannot require guests to register.

Home owners who live alone may wish to share their home with another, unrelated person. If so, managers may not impose a fee. The space rental agreement does not need to be changed.

Owners may share their home with any person over eighteen if that person provides live-in health care or supportive care. The care must be provided according to a written treatment plan prepared by the home owner’s physician. Park managers may not charge a fee for live-in care providers. Such arrangements shall not change the terms of the space rental agreement.

Senior home owners living in a senior park may share their home with individuals at least eighteen years old. The individuals must be a parent, sibling, child, or grandchild of the senior home owner. The home owner should require live-in health care, live-in supportive care, or supervision. Park managers may not charge a fee and the terms of the rental agreement do not need to be changed.

Manufactured home parks normally do not provide assisted living and health care services. Park managers do not supervise individuals who provide care for residents. The Residency Law does not require parks to provide in-home health care or supportive care.

MRL Code Sections 798.34 & 798.35.

Subleasing

Question: Can a home owner sublease or rent their manufactured home?

Answer: Generally park rules do not allow home owners to sublease or rent homes. The Residency Law authorizes owners to sublease their homes in limited circumstances. Home owners may require medical care for an extended period. If such care requires an owner to be absent from home for six to twelve months, they may sublease their home. In these cases park managers may approve such subleases. Managers also may approve subleases shorter than six months and longer than a year. Park managers may screen the individual who will sign the sublease. The home owner remains liable for space rent, utilities and other park fees. Park managers may require security deposits.

Question: Can management rent manufactured homes owned by the park owner?

Answer: If park rules do not allow home owners to rent their homes, then management cannot rent a home owned by the park owner. The Residency Law requires that:

"The owner of the park, and any person employed by the park, shall be subject to, and comply with, all park rules and regulations, to the same extent as residents and their guests."

Civil Code Sections 798.23 & 798.23.5
Copyright - Carl Eric Leivo, Ph.D.

Resident-Owned Parks

In some cases park residents may own their park. They may have ownership rights in a subdivision, cooperative, condominium or a resident-owned park. Residents may form a nonprofit mutual benefit corporation whose members consist of park residents. The corporation may own and operate a manufactured home park where there is no recorded subdivision or condominium plan. Some home owners may not have ownership rights but may continue to lease their space from the resident organization that owns the park.

Homeowners in resident-owned parks may list their homes for sale and post a for sale sign. The park ownership or management may not show a home without first obtaining written permission of the homeowner.

Park ownership or management may not enter into a manufactured home. They may enter the land/space for maintenance of utilities, trees and driveways. Park managers may maintain the space in accord with park rules and regulations at any reasonable time. Ownership or management may enter a home without prior written consent in case of an emergency or when the home has been abandoned.

Resident-owned park management cannot require the removal of a manufactured home when its sold to a third party. Management may require that:

The home owner notify management before the sale of their home;
Prior to the sale, management approve the purchaser based on their financial ability and evidence that they will comply with the park rules and regulations.to of a home

Resident owner parks may adopt age requirements in compliance with the federal Fair Housing Act.

Ownership or management must provide written notice of an extended interruption (2 or more hours) in utility service at least 72 hours in advance. Park ownership is liable for damages if they violate the notice provision. The notice rule does not apply to circumstances beyond the control of park ownership and emergencies.

Owners may share their home with any person 18 years old or over if that person provides live-in care. Park management may not charge a fee for that person. Park management cannot prevent the installation of accommodations for the disabled.

Residents retain their rights of political expression. They may display political campaign signs no larger than six square feet.

Civil Code Sections 799 through 799.11
Copyright - Carl Eric Leivo, Ph.D.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net.

Tuesday, July 14, 2015

Listing Agents and Park Fees

Owners of manufactured homes may put their homes up for sale. Owners include existing home owners, joint tenants, heirs, representatives of estates, legal owners or junior lienholders. Park managers cannot prevent the listing or sale of homes. Managers can require that owners notify managers that homes are for sale. Owners may select any real estate broker and agent to help them sell their home. Managers cannot force owners to hire a specific real estate broker, agent, dealer or person to sell their homes. Park managers may not list or show a home for sale without first obtaining the home owner’s written authorization. The Residency Law prevents park managers from withholding park approvals unless sellers use a favored individual or firm for the home sale transaction. Managers cannot require sellers to hire management as sales agents in order to obtain approval of buyers.

Park managers may not charge home sellers a transfer or selling fee according to the Residency Law. Sellers may request in writing that park managers perform services to help sell the home. If so, park managers may charge sellers reasonable costs for these services. Managers may not impose a fee, other than a credit check fee, to interview and approve a buyer.

Buyers moving in a new manufactured home may not be charged fees for entry, hookup, and landscaping. Managers may pass on an actual fee imposed by a local government ordinance or requirement. Reasonable landscaping and maintenance requirements may be included in the park rules. Management may not require home owners or buyers to purchase, rent, or lease goods or services for landscaping, remodeling, or maintenance from any person, company, or corporation.

Since 2006 parks cannot be granted a right of first refusal, in rental agreements, to purchase homes from sellers. Park managers and home owners may write up a separate sale agreement.

Civil Code Sections 798.37, 798.71, 798.72 & 798.81

For Sale Signs

Owners or their agents may advertise the sale of a home. For sale signs may be placed in a window or posted by the street. If not prohibited by park rules, owners or agents may also advertise an open house. Signs should:

Include the name, address and telephone number of the owner or agent;
Not be more than 24 inches wide and 36 inches in height;
Use a H-frame or A-frame design; and
Face perpendicular to, but not into the street.

Owners or agents may attach tubes or holders to the sign or home for information leaflets.

Civil Code Section 798.70

Management Approval of Buyers

Can a park manager decline to approve a buyer in order to retaliate against the current home owner? Yes/No/Maybe

The correct answer is no. The MRL allows park operators to require that they approve a buyer prior to a home sale. Approval cannot be withheld if the buyer 1) has the financial ability to pay space rent and other charges and 2) the buyer will comply with park rules, based on evidence from past tenancies.

Can a park manager check the finances of a potential buyer? Yes/No/Maybe

The correct answer is yes. Potential buyers should contact park managers prior to closing on a home. Managers may not require personal income tax returns. They can require buyers to document the amounts and sources of monthly income or financial support. Managers may conduct a personal interview.

Do managers have fifteen days to accept or reject a buyer? Yes/No/Maybe

The correct answer is yes. According to the MRL, within fifteen business days of receiving information from the buyer, park managers must notify the seller and buyer, in writing, if the buyer is accepted or rejected. If rejected, managers must provide the reasons.

Can park managers charge buyers a fee for ordering a credit report? Yes/No/Maybe

The correct answer is yes. Park managers may collect a credit report fee from buyers. The full amount of the fee shall be credited toward payment of the first month’s space rent of the actual buyer. If buyers are rejected for any reason, park managers shall refund the full amount of the fee within thirty days. If a buyer is approved but they decide not to purchase the home, park managers may retain the fee to pay for their administrative costs.

Civil Code Section 798.74.

Home Upgrades

Managers may want to upgrade parks by replacing older manufactured homes. During the term of a lease, park managers cannot require removal of a home. Managers can require buyers to replace homes if they are:

More than 25 years old and enforcement agency inspections verify that they do not comply with health and safety standards; or
Rundown and in disrepair no matter their age.

Managers bear the burden of proving the poor condition of homes. Managers must provide home owners notices explaining the conditions that permit the removal of homes.

Park managers may require home and accessory structure repairs when homes are sold. Such repairs must be required by a park rule, local ordinance or state law or regulation. Managers can mandate only exterior improvements. Within ten days of receiving a request from a seller, park managers must provide a written summary of required repairs.

Park managers cannot require sellers or buyers to pay for general space maintenance or upgrades. Managers may only require repairs of damage caused by the seller or their agents.

Civil Code Sections 798.73, 798.73.5 & 798.83.

Monday, July 13, 2015

Management Disclosures

Within two business days of receiving a request, park managers must provide buyers with an “Information for Prospective Homeowners” form. The Residency Law requires that the form include certain specific statements. One of the statements explains the dual role of home owner and park tenant. The form lists the beginning monthly rent, fees and charges. Managers must provide good faith estimates of each fee or charge. This form explains that buyers must execute a lease or rental agreement to complete the sale. It discloses that buyers who sign long-term leases forgo the benefits of space rent control ordinances. Another statement explains how the credit check fee should be credited to the first month’s space rent or refunded. The form encourages buyers to request managers to provide copies of the rental agreement, the park’s rules and the Residency Law. Park managers and potential buyers sign the document.

The Residency Law requires that managers provide a written disclosure form listing park facilities. The form describes the condition of park facilities.The Residency law requires park managers to inform buyers in writing whether residents must pay school facilities fees.

Civil Code Sections 798.74.5, 798.75.5 & 798.82.

Unlawful Occupants

Buyers must execute a space rental agreement with park managers. Escrow, sale or transfer agreements must contain copies of fully executed rental agreements or statements signed by park manager that buyers have agreed to rental terms.

If home owners have no rights of tenancy, they may be unlawful occupants. Management might demand that unlawful occupants surrender lease spaces within five days. Home owners do not qualify as unlawful occupants if:

They own the manufactured home;
The park manager determined that the occupant has the financial ability to pay the rent and charges of the park and will comply with the rules and regulations; and
The manager failed or refused to offer the buyer a rental agreement.

Buyers cannot waive Residency Law rights in space rental agreements and home sale agreements.

Civil Code Sections 798.75 & 798.77.

Inheritances and Repossessions

Upon the death of owners, manufactured or mobile homes may become the property of heirs, joint tenants, or estates. These new owners must continue to pay rent, utilities and charges for homes until they are resold. If they do not meet these responsibilities, park managers may remove the homes. Prior to a sale, the new owners may replace a home. Replacement homes must comply with health and safety standards and meet the most recent park standards. If heirs or joint tenants want to establish a park tenancy, they must comply with the requirements for a home buyer.

Legal owners or lienholders may foreclose on their security interest in a manufactured or mobile home. When they take possession of the home they have the right to sell the home to a third party. They must continue to pay rent, utilities and fees until sale of the home.

Civil Code Section 798.78

Sunday, July 12, 2015

Failure to Maintain Facilities or Services

The Residency Law defines the failure of park owners to maintain the physical condition of parks as a public nuisance. Such nuisances may be solved by a civil legal action or abatement. One or more home owners may file such actions. County district attorneys or county counsels, city attorneys or city prosecutors, or the State Attorney General also may file civil actions.

The formal effort begins with a written notice of “intent to commence action” delivered to park managers. Those home owners filing the complaint should identify common facilities not being maintained in good working order. Notices should explain the reasons behind the complaint and request repairs. Civil actions may be filed thirty days after sending the notice.

For example, a park sidewalk might have a crack that creates a trip-and-fall hazard. One or more residents might submit a notice to the manager. Home owners might measure the fracture, provide a photograph and request its repair.

Park owners may cut back services. For instance a park owner may close a pool. Space rent should be reduced in such instances. One or more home owners may formally allege that park owners have reduced levels of service. After giving park managers a thirty day written notice, home owners may file a civil action.

Civil Code Sections 798.84 & 798.87
Copyright - Carl Eric Leivo, Ph.D.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Penalties and Fees

Question: How do home owners enforce the provisions of the MRL?

Answer: Park owners or managers may violate provisions of the Residency Law. Park residents would have to prove such a violation in a civil action in county courts. If current or former home owners prevail in a civil action, including small claims court actions, home owners may be awarded $2,000 for each violation of the Residency Law by park owners or managers. Current or former home owners also may be awarded punitive damages. Courts decide whether to make such awards and the amount of the award.

Question: Why would a park owner care about such a small $2,000 penalty.

Answer: Courts may award penalties for each and every single violation. Multiple violations can add up to a large sum. Suppose a park manager charges more than the MRL allows for electricity. Each month that the overcharge occurs could count as a single violation. Each home owner that is overcharged can file a separate civil action.

Question: What about attorney's fees and the costs of going to court?

Answer: Courts may award attorney’s fees and costs to prevailing parties in legal cases. The judge also may dismiss litigation in favor of one side and award attorney’s fees and costs. Sometimes the parties may reach a compromise or settlement out of court. The settlement may include an agreement about attorney’s fees and costs.

Civil Code Sections 798.85 & 798.86
Copyright - Carl Eric Leivo, Ph.D.
Image courtesy of Gualberto107 at FreeDigitalPhotos.net.

Maintaining Spaces and Removing Personal Property

Some residents may not maintain their spaces according to park rules. Park managers decide if a space is not being maintained adequately. Managers may not terminate a tenancy because a home owner does not maintain their space. Managers must enforce park maintenance rules in a fair, evenhanded fashion.

Managers first notify home owners in writing if they fail to take care of their space. Notices should state the specific maintenance problem and estimate cleanup charges. If owners fail to correct problems within fourteen days, managers may clean-up the space and charge home owners a maintenance fee based on the cleanup cost.

When cleaning up a space, managers may decide to remove residents’ personal property. The fourteen-day notice should describe property to be removed, state the park rule justifying the removal, and estimate the charges. After the time period, park management may remove the property to a storage facility. Managers cannot remove homes or accessory structures. In order to retrieve their property, residents must reimburse the park for the costs of removing and storing the property.

Within seven days after removing personal property, park managers must provide residents a written notice. Notices must include an inventory of the property removed. The location where property may be claimed and charges also should be listed on notices. If home owners claim property but do not reimburse the park for costs, managers may include those costs in a monthly bill.

Personal property is considered abandoned if not claimed within sixty days. Park managers may dispose of the property in any manner. Managers may not charge home owners storage charges for more than sixty days. Residents may write to managers and abandon their personal property earlier than sixty days. If they do, no further storage charges would be added to their accounts.

Managers may dispose of abandoned property by sale or auction. If funds received exceed the amount owed, managers must refund the difference to residents within fifteen days. If the sale yields less than the amount owed, home owners remain responsible for the difference.

Civil Code Section 798.36.
Copyright - Carl Eric Leivo, Ph.D.
Image courtesy of thephotoholic at FreeDigitalPhotos.net

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