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.