Bill Text: CA AB2539 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Mobilehome parks: sale: notice: right of first refusal.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-05-16 - In committee: Held under submission. [AB2539 Detail]

Download: California-2023-AB2539-Amended.html

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Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2539

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Introduced by Assembly Member Connolly

February 13, 2024

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An act to amend Section 798.80 of the Civil Code, relating to mobilehomes.

LEGISLATIVE COUNSEL'S DIGEST

AB 2539, as amended, Connolly. Mobilehome parks: sale: notice: right of first refusal.

Existing law, the Mobilehome Residency Law, requires the owner of a mobilehome park who enters into a written listing agreement with a licensed real estate broker for the sale of the mobilehome park or who offers to sell the mobilehome park to any party to provide written notice of the owner’s intention to sell to specified members of a resident organization formed by homeowners for purposes of converting the mobilehome park to condominium or stock cooperative ownership interests and for purchasing the mobilehome park. Existing law requires the owner to provide this notice not less than 30 days nor more than one year before entering into the listing agreement or offering to sell the mobilehome park. Existing law prohibits an offer to sell a park from being construed as an offer unless it is initiated by the park owner or their agent. Existing law provides various exceptions to this notice requirement. requirement, including that no notice is required unless the resident organization has first furnished the park owner or park manager with a written notice of the name and address of the president, secretary, and treasurer of the resident organization, as specified.

This bill would require the owner to also provide the above-described notice if they accept an offer from any buyer. The bill would also require the owner to provide the above-described notice to all residents of the mobilehome park and the Department of Housing and Community Development not less than 60 120 days nor more than one year before entering into the listing agreement or offering to sell the mobilehome park. The bill would grant the resident organization a right of first refusal to the mobilehome park and give them six 6 months from the time they receive the above-described notice to make an offer. The bill would require the owner to engage in good faith negotiations good faith negotiations, as defined, with the resident organization if they are interested in purchasing the park and prohibit the owner from negotiating with or accepting an offer from another party until the above-described six month 6-month time period has elapsed. The bill would remove the above-described exceptions to the notice requirement and would remove the prohibition on an offer to sell a park from being construed as an offer unless it is initiated by the park owner or their agent.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 798.80 of the Civil Code is amended to read:

798.80.

 (a) This section shall be known and may be cited as the Mobilehome Resident Opportunity to Purchase Act.

(b) For purposes of this section, “good faith negotiations” means evaluating an offer to purchase a mobilehome park from the park’s resident organization without considering factors, including, but not limited to:

(1) The time period for closing.

(2) The type of financing or payment method.

(3) Whether the offer is contingent on financing, payment method, appraisal, or title work.

(c) (1) Not less than 60 120 days nor more than one year before an owner of a mobilehome park enters into a written listing agreement with a licensed real estate broker, as defined in Article 1 (commencing with Section 10130) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, for the sale of the park, or offering offers to sell the park to any party, or accepts an offer from any buyer, the owner shall provide written notice of their intention to sell the mobilehome park by first-class mail or by personal delivery to all of the following:

(A) The president, secretary, and treasurer of any resident organization formed by homeowners in the mobilehome park as a nonprofit corporation, pursuant to Section 23701v of the Revenue and Taxation Code, stock cooperative corporation, or other entity for purposes of converting the mobilehome park to condominium or stock cooperative ownership interests and for purchasing the mobilehome park from the management of the mobilehome park.

(B) All residents of the mobilehome park.

(C) The Department of Housing and Community Development.

(2)An offer to sell a park shall not be construed as an offer under this subdivision unless it is initiated by the park owner or agent.

(3)The

(2) A resident organization shall have the right of first refusal to the mobilehome park. If the resident organization is interested in purchasing the mobilehome park, they may make an offer within six months of receiving the notice described in paragraph (1) of subdivision (a). (1).

(4)The

(3) (A) The mobilehome park owner shall engage in good-faith negotiations with the resident organization. The organization, including by providing a written response within seven calendar days of receiving an offer from a resident organization. The written response must accept or reject the offer, and if the offer is rejected, it must state all of the following:

(i) The current price, terms, or conditions of an acceptable offer that the owner has received to sell the mobilehome park, if the price, terms, or conditions have changed since the owner gave notice to the residents pursuant to paragraph (1).

(ii) A written explanation of why the owner is rejecting the offer from the resident organization and what terms and conditions must be included in a subsequent offer for the park owner to potentially accept it.

(iii) The price, terms, and conditions of an acceptable offer stated in the response must be universal and applicable to all potential buyers, and must not be specific to and prohibitive of a resident organization making a successful offer to purchase the park.

(B) The owner shall not negotiate with or accept an offer from another party until the time period described in paragraph (3) of this subdivision (2) has elapsed.

(b)An owner of a mobilehome park shall not be required to provide written notice to the resident organization unless the following conditions are met:

(1)The resident organization has first furnished the park owner or park manager a written notice of the name and address of the president, secretary, and treasurer of the resident organization to whom the notice of sale shall be given.

(2)The resident organization has first notified the park owner or manager in writing that the park residents are interested in purchasing the park. The initial notice by the resident organization shall be made prior to a written listing or offer to sell the park by the park owner, and the resident organization shall give subsequent notice once each year thereafter that the park residents are interested in purchasing the park.

(3)The resident organization has furnished the park owner or park manager a written notice, within five days, of any change in the name or address of the officers of the resident organization to whom the notice of sale shall be given.

(c)

(d) Nothing in this section affects the validity of title to real property transferred in violation of this section, although a violation shall subject the seller to civil action pursuant to Article 8 (commencing with Section 798.84) by homeowner residents of the park or the resident organization.

(d)

(e) Nothing in this section affects the ability of a licensed real estate broker, as defined in Article 1 (commencing with Section 10130) of Chapter 3 of Part 1 of Division 4 of the Business and Professions Code, to collect a commission pursuant to an executed contract between the broker and the mobilehome park owner.

(e)

(f) Subdivision (a) (c) does not apply to any of the following:

(1) Any sale or other transfer by a park owner who is a natural person to any relation specified in Section 6401 or 6402 of the Probate Code.

(2) Any transfer by gift, devise, or operation of law.

(3) Any transfer by a corporation to an affiliate. As used in this paragraph, “affiliate” means any shareholder of the transferring corporation, any corporation or entity owned or controlled, directly or indirectly, by the transferring corporation, or any other corporation or entity controlled, directly or indirectly, by any shareholder of the transferring corporation.

(4) Any transfer by a partnership to any of its partners.

(5) Any conveyance resulting from the judicial or nonjudicial foreclosure of a mortgage or deed of trust encumbering a mobilehome park or any deed given in lieu of such a foreclosure.

(6) Any sale or transfer between or among joint tenants or tenants in common owning a mobilehome park.

(7) The purchase of a mobilehome park by a governmental entity under its powers of eminent domain.