Friday, July 17, 2015

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).
Copyright - Carl Eric Leivo, Ph.D.
Image courtesy of Naypong at FreeDigitalPhotos.net.



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

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.
Copyright - Carl Eric Leivo, Ph.D.
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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.
Copyright - Carl Eric Leivo, Ph.D.
Image courtesy of Pixomar at FreeDigitalPhotos.net.

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.
Copyright - Carl Eric Leivo, Ph.D.
Image courtesy of Wischakorn at FreeDigitalPhotos.net.

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.
Image courtesy of SOMMAI at FreeDigitalPhotos.net.


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.
Copyright - Carl Eric Leivo, Ph.D.
Images courtesy of imagerymajestic and renjith krishnan at FreeDigitalPhotos.net