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Home My WebLink AboutAB 2439 Nestande - Mobile Home Parks --��1�--�- � �� CITY OF PALM DESERT CITY MANAGER'S OFFICE STAFF REPORT REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION ON AB 2439 (NESTANDE) AT ITS MEETING OF MARCH 30, 2010 DATE: April 22, 2010 CONTENTS: AB 2439 Language Recommendation By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of March 30, 2010, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to AB 2439 (Nestande) relating to mobile home parks. Committee Recommendation The Legislative Review Committee directed staff to prepare a letter of opposition to AB 2439. Backqround Current State law restricts the owner or renter of a mobile home in a mobile home park under rent control restrictions from subletting the mobile home for a profit. This bill would lift that restriction. The reasons to oppose the bill are the unintended consequences of allowing an entrepreneur to accumulate mobile homes and rent them at a profit, and undermine rent control in mobile home parks which would be potentially to the detriment of the park and the community. The Legislative Review Committee indicated that the City should respectfully urge Assemblyman Nestande to work with his colleagues to develop a comprehensive mobile home park bill that addresses a global range of issues together, rather than trying to make changes one issue at a time. The committee recommendation was to send a letter of opposition to Assemblyman Nestande on this particular bill for the reasons noted above. Fiscal Analvsis There is no fiscal impact to the City of Palm Desert. -`'� C1TY COUNCtLACTION �,.. �,.�'' "��'� AI'Pi�OVFD � T)rNIFD RF,CF,IVED p��{��,� GARY ROSENBLUM RISK MANAGER i��rTiNG I�ATE ��a-�C��G r�YF.s: a � e �I� � �e � � 'ner�-� PlO�:S:�'1�/lc' A�SF;NT: �' ;�1 ,�� N M. WOHLMUTH '��`'��N:� -�- �� TY MANAGER �'��t!?D B1': '(L� r _ O.a•a�;inai ��n [�'ila�vith Cidy Cac�•1; s ��ft5��c CALIFORNIA LEGISLATURE-2009-10 REGULAR SESSION ASSEMBLY BILL No. 2439 Introduced by Assembly Member Nestande February 19, 2010 An act to amend Section 798.23.5 of the Civil Code, relating to mobilehome parks. LEGISLATIVE COUNSEL'S DIGEST AB 2439, as introduced,Nestande. Mobilehome parks. Existing law requires the management of a mobilehome park to permit a mobilehome park homeowner to rent his or her home that serves as his or her primary residence or sublet his or her space if a medical emergency or medical treatment requires him or her to be absent from his or her home and the medical emergency or treatment is confirmed in writing by an attending physician. Existing law imposes conditions on that rental or sublease, including the minimum and maximum term of a rental or sublease, and authorizes the management to require approval of a prospective renter or sublessee,as specified.Existing law prohibits a homeowner from charging a renter or sublessee more than an amount necessary to cover the cost of space rent, utilities, and scheduled loan payments on the mobilehome. This bill would additionally authorize the management of a mobilehome park to permit a mobilehome homeowner to sublet his or her mobilehome or space,without regard to whether there is a medical emergency or need for medical treatment on the part of the homeowner, for an amount more than necessary to cover the cost of space rent, utilities, and scheduled loan payments on the mobilehome, if any, and in accordance with the reasonable rules and regulations of the park.The 99 AB 2439 —2— bill would also exempt a space that is sublet pursuant to these new provisions from rent control. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION l. Section 798.23.5 of the Civil Code is amended 2 to read: 3 798.23.5. (a) (1) Management shall permit a homeowner to 4 rent his or her home that serves as the homeowner's primary 5 residence or sublet his or her space, under the circumstances 6 described in paragraph(2)and subject to the requirements of this 7 section. 8 (2) A homeowner shall be permitted to rent or sublet pursuant 9 to paragraph (1) if a medical emergency or medical treatment 10 requires the homeowner to be absent from his or her home and 11 this is confirmed in writing by an attending physician. 12 (b) The following provisions shall apply to a rental or sublease 13 pursuant to this section: 14 (1) The minimum term of the rental or sublease shall be six 15 months, unless the management approves a shorter term, but no 16 greater than 12 months, unless management approves a longer 17 term. 18 (2) The management may require approval of a prospective 19 renter or sublessee,subject to the process and restrictions provided 20 by subdivision (a) of Section 798.74 for prospective purchasers 21 of mobilehomes. A prospective sublessee shall comply with any 22 rule or regulation limiting residency based on age requirements, 23 pursuant to Section 798.76. The management may charge a 24 prospective sublessee a credit screening fee for the actual cost of 25 any personal reference check or consumer credit report that is 26 provided by a consumer credit reporting agency, as defined in 27 Section 1785.3,if the management or his or her agent requires that 28 personal reference check or consumer credit report. 29 (3) The renter or sublessee shall comply with all rules and 30 regulations of the park. The failure of a renter or sublessee to 3] comply with the rules and regulations of the park may result in the 32 termination of the homeowner's tenancy in the mobilehome park, 33 in accordance with Section 798.56.A homeowner's tenancy may 99 —3— AB 2439 1 not be terminated under this paragraph if the homeowner completes 2 an action for unlawful detainer or executes a��ei�judgment 3 for possession, pursuant to Chapter 4 (commencing with Section 4 1159) of Title 3 of Part 3 of the Code of Civil Procedure within 5 60 days of the homeowner receiving notice of termination of 6 tenancy. 7 (4) The homeowner shall remain liable for the mobilehome park 8 rent and other park charges. 9 (5) The management may require the homeowner to reside in 10 the mobilehome park for a term of one year before management I 1 permits the renting or subletting of a mobilehome or mobilehome 12 space. 13 (6) Notwithstanding subdivision (a) of Section 798.39, if a 14 security deposit has been refunded to the homeowner pursuant to 15 subdivision (b) or (c) of Section 798.39, the management may 16 require the homeowner to resubmit a security deposit in an amount 17 or value not to exceed two months' rent in addition to the first 18 month's rent.Management may retain this security deposit for the 19 duration of the term of the rental or sublease. 20 (7) The homeowner shall keep his or her current address and 21 telephone number on file with the management during the term of 22 rental or sublease. If applicable, the homeowner may provide the 23 name, address, and telephone number of his or her legal 24 representative. 25 (c) A homeowner may not charge a renter or sublessee more 26 than an amount necessary to cover the cost of space rent,utilities, 27 and scheduled loan payments on the mobilehome, if any. 28 (d) The management may permit a homeowner to sublet his or 29 her home or space, �xcept as otherwise prohibited by the 30 mobilehome park's rules and regulations. Notwithstanding 31 subdivision (c), the homeowner may sublet his or her home or 32 space for an amount more than necessary to cover the cost of space 33 rent, utilities, and scheduled loan payments on the mobilehome, 34 if any, and in accordance with the reasonable rules and regulations 35 of the park. The mobilehome and the space shall be exempt from 36 any ordinance, rule, regulation, or initiative measure adopted by 37 any city, county, or city and counry, which establishes a maximum 38 amount that a landlord may charge a tenantfor rent. O 99 DRAF1` April 13, 2010 The Honorable Brian Nestande California State Assembly, 64th District State Capitol Building, Room 4153 Sacramento, California 95814 Dear Brian: The City of Palm Desert opposes AB2439 as it is currently written. The City believes that this bill, which is designed to remove restrictions on the ability of owners or renters of mobile homes to remove rent control and sublet them at a profit is not in the best interests of the city and its residents. We appreciate the fact that some people may feel compelled to rent their mobile homes in this difficult economy. But we also believe that opening the restrictions on subletting mobile homes at a profit could generate interest by some entrepreneurs to collect and rent mobile homes at a profit which could destabilize rent control efforts and have negative consequences to mobile home communities. The City also would respectfully request that if you wish to make substantive changes to mobile home rent control law, that you work with your colleagues who are also drafting and submitting mobile home park bills to create a more comprehensive and coordinated set of laws that create a global solution to all the issues generated by these parks. Once again Brian, thank you for your time. Please do not hesitate to contact my office or the City's Legislative Analyst, Gary Rosenblum, if we can be of assistance to you in any way. Sincerely, CINDY FINERTY MAYOR C F/Iw cc: Anthony Gonsalves