Steve Padilla

(1) The Mobilehome Parks Act requires the Department of Housing and Community Development to establish regulations for manufactured home, mobilehome, and commercial modular foundation systems. Existing law authorizes a manufactured home, mobilehome, or commercial modular to be installed on a foundation system as either a fixture or improvement to the real property if certain conditions are met. In this regard, existing law requires, among other things, a manufactured home, mobilehome, or commercial modular owner or licensed contractor to obtain a building permit from the appropriate enforcement agency before installing the manufactured home, mobilehome, or commercial modular on a foundation system by, among other things, submitting written evidence acceptable to the enforcement agency that the manufactured home, mobilehome, or commercial modular owner owns, holds title to, or is purchasing the real property where the mobilehome is to be installed on a foundation system. Existing law specifies that a lease held by the owner, that is transferable, for the exclusive use of the real property where the manufactured home, mobilehome, or commercial modular is to be installed, is deemed to comply with that requirement if the lease is for a term of 35 years or more, or if fewer than 35 years, for a term mutually agreed upon by the lessor and lessee, and the term of the lease is not revocable at the discretion of the lessor except for cause, as specified. A willful violation of these provisions is a crime.

This bill would specify that the authorization to install a manufactured home, mobilehome, or commercial modular as either a fixture or improvement to the real property applies to permanent foundation systems. The bill would remove the agreements that are deemed to comply with the requirement that the owner or contractor provide written evidence that the manufactured home, mobilehome, or commercial modular owner owns, holds title to, or is purchasing the real property where the mobilehome is to be installed.

Existing law authorizes a manufactured home or mobilehome to be installed on a foundation system as chattel, in accordance with specified requirements, including that the installation is in accordance with certain permitting requirements.

This bill would expand that authorization to apply to the installation of a manufactured home, mobilehome, or commercial modular as chattel or property, and would specify that the authorization applies to nonpermanent foundation systems. The bill would require that the Department of Housing and Community Development approve the installation for purposes of the above-described permitting requirements.

The bill would, in addition to the provisions described above, authorize a manufactured home, mobilehome, or commercial modular to be classified as real property for purposes of titling and the perfection of real property security interests, as specified, if certain conditions are met. In this regard, the bill would require, among other things, that at least one of certain criteria are met regarding the homeowner, including that the homeowner holds an exclusive, transferable occupancy right to the homesite that is only transferrable with the sale of the manufactured home, mobilehome, or commercial modular. The bill would require any deed of trust or mortgage encumbering a manufactured home, mobilehome, or commercial modular classified as real property pursuant to the bill's provisions to constitute a lien upon the unit and the leasehold or other occupancy interest, as specified. The bill would specify that classification as real property pursuant to these provisions does not alter, waive, or diminish rights and obligations under specified laws relating to mobilehomes when the manufactured home, mobilehome, or commercial modular is located in a mobilehome park.

The bill would require the department, on or before January 1, 2028, to, among other things, adopt or update regulations, forms, and guidance to implement these provisions, as specified. The bill would require local enforcement agencies to, among other things, accept applications for installation and classification, as provided, pursuant to the above-described provisions authorizing a manufactured home, mobilehome, or commercial modular to be installed on a permanent foundation system as either a fixture or improvement to the real property or to be installed on nonpermanent foundation as chattel or nonfixed real property, and the above-described provisions authorizing a manufactured home, mobilehome, or commercial modular to be classified as real property. The bill would require the department upon recordation of certain forms relating to the above-described provisions to cancel registration of the manufactured home, mobilehome, or commercial modular and to notify the county assessor.

(2) The bill would make findings and declarations related to its provisions.

(3) By imposing additional duties on local enforcement agencies with respect to the regulation of manufactured housing, and by expanding the scope of a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.