Ed Fund Mobilehome Townhall - GSMOL's "MRL 101" featuring Bruce Stanton
July 23, 2022

 

                                                                  

Your Rights Bytes #22

By Bruce Stanton, GSMOL Corporate Counsel 

HOME UPGRADES ON RESALE:  WHAT ARE YOUR RIGHTS AS A SELLER?

When a mobilehome is sold “in place”, it is common for park management to require certain repairs or upgrades to the home as a condition of it remaining in the park.  These “upgrades” are regulated by Civil Code 798.73.5 (a), which limits management’s ability to require repairs or upgrades at time of resale as follows:

  1. The repair or upgrade must pertain to the mobilehome or to accessory structures like sheds, cabanas, porches and the like.  Civil Code 798.83 clearly states that a selling homeowner cannot be required to make repairs or improvements to the park space or park property (i.e. anything in the ground) unless it was damaged due to action of the homeowner.  Thus, for example, management cannot require tree removal as a sale upgrade unless the homeowner caused the need for its removal.
  2. The repair or upgrade must be based upon a written rule of the park, or required by a state or local law.  These should be cited in any written response from the park.
  3. The repair or upgrade must relate to the exterior of the home or accessory structure.  Thus, management has no jurisdiction over the inside of the home, and cannot require that appliances or flooring be replaced.

It is also important to note that 798.73.5 (b) specifically obligates management to provide to the seller a written summary of repairs or improvements that management shall require as condition of sale “no later than 10 business days following receipt of a request for this information”.  This is a “shall”, and not a “may” requirement. 

A standard practice of some park owners has been to delay any written upgrade/repair responses until just before close of escrow.  This is apparently a strategic move designed to leverage compliance with their demands at a late point in the sales process when the buyer and seller might feel unable to do anything but comply, even if the demands are not supportable.  This is precisely the type of economic duress which 798.73.5 (b) was designed to prevent when it was adopted in year 2000.  Management should be given a written notice of sale by the seller or seller’s agent which includes a request for repairs or upgrades under 798.73.5 (b), and which says that if a timely reply is not received, it shall be presumed that management is waiving the requirement for any repairs or upgrades.  Remember that 798.73.5 is part of the Mobilehome Residency Law (MRL), which is a non-waivable consumer protection law that must be followed.  Also remember that section 798.86 contains a $2,000.00 penalty for willful violations of any part of the MRL.  When challenged with the laws, management may choose to back down and allow the sale, rather than be liable for the monetary amount of a lost sale.

 

The Ed Fund partners with the Golden State Manufactured -home Owners League, Inc. (GSMOL) which is a 60-year old non-profit organization dedicated to the protection of homeowners and their rights.  GSMOL is responsible for the above protections, and virtually all of the Mobilehome Residency Law (MRL) was passed due to the efforts of GSMOL.  You can become a GSMOL member by clicking on the JOIN GSMOL TODAY button at GSMOL's website, https://gsmol.org or call the GSMOL Office at 800-888-1727.

 Golden State Manufactured-home Owners Education Fund (GSMOEF) invites you to a

Virtual Mobilehome Townhall
"MRL 101"
Saturday, July 23, 2022
10:00 AM

featuring

Bruce Stanton, GSMOL Corporate Counsel

"MRL 101" is a great way to learn the basics of the Mobilehome Residency Law!   Bruce Stanton's interactive question-and-answer format gets everyone involved.   Following the presentation, questions will be taken from the audience.

To get the Zoom or telephone information, contact your GSMOL Chapter President, Associate Manager, Region Manager or Zone Vice President.

Due to the different format of the "MRL 101", we will not be taking pre-submitted questions this time.   During the Q & A we prefer questions related to the MRL, and we will alternate between raised hands and questions posted in the chat.  ONE QUESTION ONLY PER ATTENDEE PLEASE! 

Bruce Stanton's "answer sheet" for the MRL 101 will also be posted in the chat at the end of the meeting.

"MRL 101" will be recorded and posted on our YouTube channel.  To find our Townhall videos on YouTube, search on "education fund bruce stanton", or visit our website https://edfundacademy.blogspot.com, or go to https://www.gsmol.org/ed-fund-gsmoef-townhalls/

We hope to see (or hear) you on April 23!!


 

Your Rights Bytes #21

By Bruce Stanton, GSMOL Corporate Counsel

Assembly Bill 2782 and the Civil Code sec. 798.17 Long-Term Lease Exemption

Assembly Bill 2782, sponsored by GSMOL, took effect January 1, 2020.  It contains a important changes in the law that greatly benefit mobilehome residents, including to both the park closure/conversion laws and the long-term lease exemption from mobilehome rent stabilization ordinances (RSO) contained in Civil Code 798.17.  These are important to note and remember, and are summarized as follows:

 

Park Closure/Conversion Law

 

Q:  How did AB 2782 change park closure/conversion laws?

A:  Prior law stated local governments may require a park owner to mitigate the impact of a park conversion/closure by purchasing the resident’s home via a fair market value “buyout” when the resident cannot be relocated to new housing (which is common).  AB2782 amended the Government Code to require park owners to compensate displaced residents by paying fair market value for their homes where the resident(s) cannot be relocated.  The right to be compensated for home value is thus made a guaranteed provision in State law, which pre-empts any local government conversion ordinance to the contrary.

 

Q:  What did AB 2782 newly add to the park closure/conversion law?

A:  Two important provisions were added:

 

1.    Prohibits a local jurisdiction (City or County) from approving a change of use of the park unless there is a finding that the closure or conversion will not result in a shortage of affordable housing within the local jurisdiction;

 

AND

 

2.    Requires the park owner to pay for, and include in any Conversion Impact Report (CIR), an appraisal of the resident’s mobilehome prepared by a state-certified appraiser that determines its market value for purposes of calculating the fair market value “buy out”.

 

Q:  Can local governments adopt more stringent protections for homeowners who are being displaced if they wish to do so?    

A:  YES they can.


Long-Term Lease Exemption from Local Rent Stabilization Ordinances (RSO)

 

Q:  How did AB2782 change the law re: long-term lease exemption from local RSO?

A:  Civil Code 798.17 provides that leases which exceed 12 months in length are exempt from local RSO protection.  AB 2782 ends this exemption as follows:

 

1.    All leases of any length signed on or after February 13, 2020 are not exempt from local RSO, and local RSO rent limitations will apply to protect those residents regardless of what the lease financial provisions might say.  The local RSO will effectively pre-empt those lease provisions.

2.    All leases with a term 12 months or longer signed prior to February 13, 2020 will remain exempt from RSO until they expire, or until January 1, 2025, whichever occurs first.

 

Q:  When did AB 2782 take effect?

A:  The law took January 1, 2021, which meant that leases signed on or after February 13, 2020 were still be exempt from local RSO rent protection until that date.  But after January 1, 2021 any leases first signed on or after February 13, 2020 are now exempt.

 

PRACTICE POINTERS:

I have recently been informed some parks have not been honoring the phase out of the 798.17 exemption as explained above.  Residents should check their documents to ensure that they are being properly billed for rent.

Another key point:  The above described law does not specify that the exemption ends if a lease is voluntarily renewed or extended after February 13, 2020.  Thus, if a resident signed a lease prior to February 13, 2020, and then voluntarily chooses to renew or extend it after February 13, 2020, their space could remain exempt from any local RSO until January 1, 2025.  This could be an issue for the courts to resolve, so better to avoid it.

IMPORTANT:  In order to avoid a situation where the RSO exemption would continue until January 1, 20205, homeowners should consider NOT agreeing to any renewal or extension of their pre-February 13, 2020 lease. 

REMEMBER:  No homeowner is EVER under an obligation to sign a new rental agreement or lease once they are an existing homeowner.  They are only obligated to do so when they first purchase the home. 

 

 

 

Your Rights Bytes #20
 

Q.  Can the park start billing residents for utilities that were previously included in the rent?

A.  If the residents’ rental agreement provides that sewer, water and garbage are included in the rent, the park management may elect to itemize or charge separately for these utilities. (Civil Code [Mobilehome Residency Law, or MRL] §798.41) In this case, the average monthly amount of the utility charges shall be deducted from the rent. If the rental agreement does not specifically indicate that utility charges are included in the rent, then the park owner could charge for them after complying with the 60-day written notice requirement. (Civil Code §798.32)

Recap:

● If the lease or rental agreement stipulates separate charges, then the resident must pay accordingly.

● If it is not stipulated in the lease or rental agreement, then the park must give a 60-day advance written notice of an itemized billing.

 

Q.  Can the park owner require a deposit or fee for use of the clubhouse by the homeowners association?

A.  No, however there are certain exceptions. The MRL provides that a park rental agreement or rule or regulation shall not deny a homeowner or resident the right to hold meetings for a lawful purpose in the clubhouse at reasonable times and in a reasonable manner, when the facility is not otherwise in use. (Civil Code §798.51(a)(1)) Homeowners or residents may not be charged a cleaning deposit or require liability insurance in order to use the clubhouse for meetings relating to mobilehome living or for social or educational purposes and to which all homeowners are allowed to attend. (Civil Code §798.51(b)) However, the park may require a liability insurance binder when alcoholic beverages are served. (Civil Code §798.51(c)) If a homeowner reserves the clubhouse for a private function to which all park residents are not invited, the park could charge a fee or deposit.

Recap:

● No fee may be charged for homeowner functions.

● A liability insurance fee may be charged if alcohol is served.

● A fee may be charged for private parties.

 

Q. Can the park owner or manager move lot lines without permission from residents whose spaces are affected?

A.  Before moving a lot line, the management must obtain a permit (Health & Safety Code Sec. 18610.5) from the state Department of Housing and Community Development and verify that the park has obtained the consent of homeowners affected by the lot line change. However, in some older parks there are no markers or defined lot lines and no plot maps indicating where the lot lines should be. In cases where there is no documented evidence of original lot lines, HCD may not be able to determine that the lot line has been moved and that a permit is required. The issue then becomes a legal matter between the park management and the affected homeowners.

Recap:

● A permit is required from the state Dept. of Housing before the park moves lot lines.

● In old parks with no official lot line maps, moving lot lines may require legal or regulatory oversight.


Source:  The MRL FAQ, MRL Handbook 2022

Senate Select Committee on Manufactured Homes and Communities

 Golden State Manufactured-home Owners Education Fund (GSMOEF) invites you to a

Virtual Mobilehome Townhall
Saturday, April 23, 2022
10:00 AM

featuring

Bruce Stanton, GSMOL Corporate Counsel


To get the Zoom or telephone information, contact your GSMOL Chapter President, Associate Manager, Region Manager or Zone Vice President.


If you have a question you would like Bruce Stanton to answer, please submit it in advance to edfund.gsmoef@gmail.com.  ONE question only please!


Questions will also be taken at the meeting after Mr. Stanton has finished his talk and answered the pre-submitted questions.   


Attendees may ask ONE QUESTION ONLY, and it must be a question, not a story.  (If your question is complicated or requires a lot of background, it is best to arrange with your Zone Vice President to meet with Mr. Stanton individually. It is necessary for us to make these limits because we have had as many as 180 people attending a Townhall.) 


We will alternate between questions put into the chat and people who have raised their hands. 


The Townhall will be recorded and posted on our YouTube channel.  To find our Townhall videos on YouTube, search on "education fund bruce stanton", or visit our website https://edfundacademy.blogspot.com, or go to https://www.gsmol.org/ed-fund-gsmoef-townhalls/


We hope to see (or hear) you on April 23!!


 Golden State Manufactured-home Owners Education Fund (GSMOEF)
presents a

Virtual Townhall

Saturday, January 22, 2022,  10:00 AM

featuring

Bruce Stanton, GSMOL Corporate Counsel

speaking on

New State Legislation and How it Impacts MH Owners

You may attend via Zoom or call in from any kind of telephone.

Meeting ID: 838 8797 2451
Passcode: 126115

Join Zoom Meeting

https://us02web.zoom.us/j/83887972451?pwd=VlF2MnZiakQzUlUvUjdubzEvTFB4dz09

Meeting ID: 838 8797 2451

Passcode: 126115

Mute/Unmute yourself by clicking on the microphone at the lower left corner of the Zoom screen.

Raise/Lower your hand by clicking on Reactions at the bottom of the Zoom screen and then choosing Raise Hand or Lower Hand.   Please remember to lower your hand when you have been called upon by the host.

OR Call in on a telephone:

(669) 900-6833

Meeting ID: 838 8797 2451

Passcode: 126115

One tap mobile:   +16699006833,,83887972451#,,,,*126115# 

Mute/Unmute yourself with *6 (Star Six)

Raise/Lower your hand with *9 (Star Nine)


You may submit ONE question in advance.   
Please send your question to Anne Anderson at a.bushnell.anderson@gmail.com before January 15.   

Questions will also be taken from the audience - ONE question per person (we can go back for "seconds" once everyone has had a chance to ask a question).  

Mr. Stanton will start by answering questions related to the new legislation, and if there is time, he will take questions on other topics related to mobilehome law.   

If your question is complicated and requires a long, detailed explanation, please contact your GSMOL Region or Associate Manager or Zone Vice President to arrange to consult individually with Mr. Stanton. 

The video of our Townhall may be posted on the Ed Fund's YouTube Channel and on both the Ed Fund website https://edfundacademy.blogspot.com and the GSMOL website https://gsmol.org.  

A written summary in both English and Spanish will also be posted on both websites.  

                            The  “Double My Donation”  Pledge During this season of giving, the Ed Fund has graciously offered to match ANY ...