BILL NUMBER: SB 419 AMENDED BILL TEXT AMENDED IN SENATE APRIL 6, 2015 INTRODUCED BY Senator McGuire FEBRUARY 25, 2015 An act to amend Sections 798.70, 798.71, and 798.74 of, and to add Section 798.70.5 to, the Civil Code, relating to mobilehomes. LEGISLATIVE COUNSEL'S DIGEST SB 419, as amended, McGuire. Mobilehomes: homeowners: sale. The Mobilehome Residency Law governs tenancies in mobilehome parks. The law, among other things, sets forth certain rights and requirements for the management and selling homeowners in connection with the sale of a mobilehome, including, but not limited to, authorizing sellers to display signs advertising the sale unless prohibited by park rules, requiring the signs to contain specified information and be of an H-frame or A-frame design, and requiring the management, upon request, to provide a prospective homeowner with the information the management will use to determine if the person will be acceptable as a homeowner in the park. This bill would additionally authorize a seller to displayaone sign of an L-frame or a generally accepted yard-arm type design and require the management, upon request, to provide the information and standards the management will use to review a prospective homeowner to the prospective homeowner or seller in writing. The bill would also make technical changes and revise references to a homeowner or other person selling a mobilehome to instead refer to a "seller," as defined. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 798.70 of the Civil Code is amended to read: 798.70. A seller or the agent of a seller may advertise the sale or exchange of his or her mobilehome, or, if not prohibited by the terms of an agreement with the management, may advertise the rental of his or her mobilehome, by displayingaone sign in the window of the mobilehome, or byaone sign posted on the side of the mobilehome facing the street, or byaone sign in front of the mobilehome facing the street, stating that the mobilehome is for sale or exchange or, if not prohibited, for rent by the owner of the mobilehome or his or her agent. Any such person also may displayaone sign conforming to these requirements indicating that the mobilehome is on display for an "open house." The sign shall state the name, address, and telephone number of the owner of the mobilehome or his or her agent and the sign face shall not exceed 24 inches in width and 36 inches in height.SignsA sign posted in front of a mobilehome pursuant to this section may be of an H-frameor, A-frame , L-frame, or generally accepted yard-arm type design with the sign face perpendicular to, but not extending into, the street. Sellers may attach to the sign or their mobilehome tubes or holders for leafletswhichthat provide information on the mobilehome for sale, exchange, or rent. SEC. 2. Section 798.70.5 is added to the Civil Code, to read: 798.70.5. For purposes of this article, "seller" means a homeowner, an heir, joint tenant, or personal representative of the estate who gains ownership of a manufactured home or mobilehome in the mobilehome park through the death of the owner of the manufactured home or mobilehome who was a homeowner at the time of his or her death. SEC. 3. Section 798.71 of the Civil Code is amended to read: 798.71. (a) (1) The management may not show or list for sale a manufactured home or mobilehome without first obtaining the owner's written authorization. The authorization shall specify the terms and conditions regarding the showing or listing. (2) Management may require that a homeowner advise management in writing that his or her manufactured home or mobilehome is for sale. If management requires that a homeowner advise management in writing that his or her manufactured home or mobilehome is for sale, failure to comply with this requirement does not invalidate a transfer. (b) The management shall prohibit neither the listing nor the sale of a manufactured home or mobilehome within the park by the seller, or the agent of the seller other than the management. For purposes of this section, "listing" includes advertising the address of the home to the general public. (c) The management shall not require the seller to authorize the management or any other specified broker, dealer, or person to act as the agent in the sale of a manufactured home or mobilehome as a condition of resale of the home in the park or of management's approval of the buyer or prospective homeowner for residency in the park. (d) The management shall not require a homeowner, who is replacing a mobilehome or manufactured home on a space in the park, in which he or she resides, to use a specific broker, dealer, or other person as an agent in the purchase of or installation of the replacement home. (e) Nothing in this section shall be construed as affecting the provisions of the Health and Safety Code governing the licensing of manufactured home or mobilehome salespersons or dealers. SEC. 4. Section 798.74 of the Civil Code is amended to read: 798.74. (a) The management may require the right of prior approval of a purchaser of a mobilehome that will remain in the park and that the seller or seller's agent give notice of the sale to the management before the close of the sale. Approval cannot be withheld if the purchaser has the financial ability to pay the rent and charges of the park unless the management reasonably determines that, based on the purchaser's prior tenancies, he or she will not comply with the rules and regulations of the park. In determining whether the purchaser has the financial ability to pay the rent and charges of the park, the management shall not require the purchaser to submit copies of any personal income tax returns in order to obtain approval for residency in the park. However, management may require the purchaser to document the amount and source of his or her gross monthly income or means of financial support. Upon request of any seller oranyprospective homeowner who proposes to purchase a mobilehome that will remain in the park, management shall inform that person, in writing, of the information management will require and the standards that will be utilized in determining if the person will be acceptable as a homeowner in the park. Within 15 business days of receiving all of the information requested from the prospective homeowner, the management shall notify the seller and the prospective homeowner, in writing, of either acceptance or rejection of the application, and the reason if rejected. During this 15-day period the prospective homeowner shall comply with the management's request, if any, for a personal interview. If the approval of a prospective homeowner is withheld for any reason other than those stated in this article, the management or owner may be held liable for all damages proximately resulting therefrom. (b) If the management collects a fee or charge from a prospective purchaser of a mobilehome in order to obtain a financial report or credit rating, the full amount of the fee or charge shall be credited toward payment of the first month's rent for that mobilehome purchaser. If, for whatever reason, the prospective purchaser is rejected by the management, the management shall refund to the prospective purchaser the full amount of that fee or charge within 30 days from the date of rejection. If the prospective purchaser is approved by the management, but, for whatever reason, the prospective purchaser elects not to purchase the mobilehome, the management may retain the fee, or a portion thereof, to defray its administrative costs under this section.