AMENDED IN ASSEMBLY APRIL 10, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 1035
Introduced by Assembly Member Muratsuchi
February 15, 2023
An act to add Section 798.30.7 to the Ci vil Code, relating to mobilehomes.
legislative counsel’s digest
AB 1035, as amended, Muratsuchi. Mobilehome parks: rent caps.
Existing la w, the Mobilehome Residenc y La w, prescribes v arious terms and conditions of tenancies in mobilehome parks. Existing la w defines “tenancy” for these purposes as the right of a homeo wner to use a site within a mobilehome park on which to locate, maintain, and occupy a mobilehome for human habitation, including the use of the services and facilities of the park. Existing law, prohibits, with certain exceptions, the management of a mobilehome park from increasing the gross rental rate for a tenanc y in a qualified mobilehome park, as defined, more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate char ged for a tenancy at any time during the 12 months prior to the ef fective date of the increase, subject to specified conditions. Existing la w defines “qualified mobilehome park” for these purposes as a mobilehome park that is located within and go verned by the jurisdictions of 2 or more incorporated cities.
This bill w ould enact the Mobilehome Affordability Act. The bill would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenanc y for a mobilehome space more than 3% plus the percentage change in the cost of li ving, as defined, o ver
98 the course of any 12-month period, as specified. The bill would prohibit management from increasing the gross rental rate for a tenancy in more than 2 increments o ver a 12-month period, after the tenant maintains the tenanc y o ver a 12-month period. The bill w ould prohibit management from imposing an increase in rent on a prospecti ve purchaser or homeowner that purchases a mobilehome if the purchase qualifies as an in-place transfer , as specified. The bill w ould exempt specified mobilehome spaces from these provisions. The
This bill would specify that these provisions apply to rent increases for mobilehome spaces occurring on or after January 1, 2023. The bill would provide that in the event that management increased the rent by more than the amount specified abo ve between January 1, 2023, and January 1, 2024, then the applicable rent on January 1, 2024, is the rent as of January 1, 2023, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment. The bill would provide that its provisions shall not impair, alter, or c hange any r ental term or obligation contained in a r ental agreement in effect between management and a resident as of January 1, 2024, and which was entered into or became effective before January 1, 2023, e xcept as described. The bill w ould void any waiver of the rights provided under these provisions. The bill would authorize a local government to adopt or maintain an ordinance, rule, re gulation, or initiative measure that establishes a maximum amount that may be charged for rent, or other regulations for a tenancy. The bill would not apply to a mobilehome park when a local go vernment has adopted an ordinance, rule, regulation, or initiative measure prior to the ef fective date of the bill before January 1, 2024, that establishes a maximum amount that may be char ged by management for rent or otherwise regulates the rental rate for a mobilehome tenanc y. tenancy in that mobilehome park.
This bill would state that its provisions are severable.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. This act shall be known, and may be cited, as the line 2 Mobilehome Affordability Act.
line 3 SECTION 1.
line 4 SEC. 2. Section 798.30.7 is added to the Civil Code, to read:
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line 1 798.30.7. (a) (1) Subject to par agraph (2) and e xcept as line 2 provided in subdivision (b), management shall not, over the course line 3 of any 12-month period, increase the gross rental rate for a tenancy line 4 in a mobilehome park by more than 3 percent plus the percentage line 5 change in the cost of li ving, or 5 percent, whiche ver is lower, of line 6 the lowest gross rental rate char ged for the tenanc y at an y time line 7 during the 12 months prior to the effective date of the increase. line 8 (2) If the same homeo wner maintains a tenanc y o ver an y line 9 12-month period, the gross rental rate for the tenancy shall not be line 10 increased in more than two increments over that 12-month period, line 11 subject to the other restrictions of this subdivision governing gross line 12 rental rate increases.
line 13 (b) (1) Except as provided in paragraph (2), for a new tenancy line 14 in which no homeowner from the prior tenancy remains in lawful line 15 possession of the mobilehome space, management may establish line 16 the an initial rental rate not subject to for the new tenancy without line 17 complying with subdivision (a). Subdivision However, subdivision line 18 (a) shall be applicable to subsequent increases of the r ental rate line 19 after that initial rental rate has been established, except as unless line 20 otherwise provided in this section.
line 21 (2) Notwithstanding paragraph (1), management shall not impose line 22 an increase in rent on a prospective purchaser or homeowner that line 23 purchases a mobilehome if the purchase qualifies as an in-place line 24 transfer. Subdivision (a) shall apply to the ne w tenancy created line 25 after an in-place transfer and the initial rental rate shall be set at line 26 the rental rate of the previous tenancy.
line 27 (c) Management shall provide notice of any increase in the rental line 28 rate, pursuant to subdi vision (a), r ate to each homeo wner in line 29 accordance with Section 798.30.
line 30 (d) (1) This section shall not apply to a tenancy for any of the line 31 following:
line 32 (1)
line 33 (A) A mobilehome space restricted by deed, re gulatory line 34 restriction contained in an agreement with a governmental agency, line 35 or other recorded document as affordable housing for persons and line 36 families of v ery lo w, lo w, or moderate income, as defined in line 37 Section 50093 of the Health and Safety Code, or subject to an line 38 agreement that provides housing subsidies for affordable housing line 39 for persons and families of very low, low, or moderate income, as 98 AB 1035 — 3 —
line 1 defined in Section 50093 of the Health and Safety Code or line 2 comparable federal statutes.
line 3 (2)
line 4 (B) A mobilehome space subject to an y ordinance, rule, line 5 regulation, or initiative measure that restricts annual increases in line 6 the rental rate to an amount less than that provided in subdivision line 7 (a).
line 8 (3)
line 9 (C) A mobilehome space within a resident-owned mobilehome line 10 park, as defined in Section 799.
line 11 (4)
line 12 (D) A mobilehome space occupied by a resident who is not a line 13 homeowner, including, b ut not limited to, an y spaces that are line 14 directly rented by management. The rental amount to be charged line 15 for any such spaces shall be governed by Sections 1946.2, 1947.12 line 16 and 1947.13.
line 17 (2) This section shall not apply to a mobilehome park when a line 18 local government has adopted an or dinance, rule, regulation, or line 19 initiative measur e befor e J anuary 1, 2024, that establishes a line 20 maximum amount that may be c harged by mana gement for rent line 21 or otherwise regulates the rental rate for a mobilehome tenancy line 22 in that mobilehome park.
line 23 (3) This section shall not impair , alter, or c hange any r ental line 24 term or obligation contained in a r ental a greement in ef fect line 25 between management and a resident as of J anuary 1, 2024, and line 26 which was entered into or became effective before January 1, 2023. line 27 However, any r ental pr ovisions contained in those a greements line 28 shall be subject to the provisions of this section following the date line 29 upon whic h the term of the a greement has ended or has been line 30 renewed or extended.
line 31 (e) (1) This Except as provided in subdivision (d), this section line 32 shall apply to all rent increases occurring on or after January 1, line 33 2023.
line 34 (2) In the event that management has increased the rent by more line 35 than the amount permissible under subdivision (a) between January line 36 1, 2023, and January 1, 2024, both of the following shall apply:
line 37 (A) The applicable rent on January 1, 2024, shall be the rent as line 38 of January 1, 2023, plus the maximum permissible increase under line 39 subdivision (a).
98 — 4 — AB 1035
line 1 (B) Management shall not be liable to a homeo wner for an y line 2 corresponding rent overpayment.
line 3 (f) Any waiver of the rights under this section shall be v oid as line 4 contrary to public policy.
line 5 (g) For the purposes of this section:
line 6 (1) “Consumer Price Inde x for All Urban Consumers for All line 7 Items” means the following:
line 8 (A) The Consumer Price Inde x for All Urban Consumers for line 9 All Items (CPI-U) for the metropolitan area in which the property line 10 is located, as published by the United States Bureau of Labor line 11 Statistics, which are as follows:
line 12 (i) The CPI-U for the Los Angeles-Long Beach-Anaheim line 13 metropolitan area co vering the Counties of Los Angeles and line 14 Orange.
line 15 (ii) The CPI-U for the Ri verside-San Bernardo-Ontario line 16 metropolitan area co vering the Counties of Ri verside and San line 17 Bernardino.
line 18 (iii) The CPI-U for the San Die go-Carlsbad metropolitan area line 19 covering the County of San Diego.
line 20 (iv) The CPI-U for the San Francisco-Oakland-Hayw ard line 21 metropolitan area covering the Counties of Alameda, Contra Costa, line 22 Marin, San Francisco, and San Mateo. San Mateo, and Santa Clara. line 23 (v) Any successor metropolitan area index to any of the indexes line 24 listed in clauses (i) to (iv), inclusive.
line 25 (B) If the United States Bureau of Labor Statistics does not line 26 publish a CPI-U for the metropolitan area in which the property line 27 is located, the California Consumer Price Inde x for All Urban line 28 Consumers for All Items as published by the Department of line 29 Industrial Relations.
line 30 (C) On or after January 1, 2024, if the United States Bureau of line 31 Labor Statistics publishes a CPI-U inde x for one or more line 32 metropolitan areas not listed in subparagraph (A), that CPI-U index line 33 shall apply in those areas with respect to rent increases that tak e line 34 effect on or after August 1 of the calendar year in which the line 35 12-month change in that CPI-U, as described in subparagraph (B) line 36 of paragraph (2), is first published.
line 37 (2) (A) “Percentage change in the cost of li ving” means the line 38 percentage change in the applicable CPI-U, as described in line 39 paragraph (1) and computed pursuant to subparagraph (B) of this line 40 paragraph.
98 AB 1035 — 5 —
line 1 (B) (i) For rent increases that tak e effect before August 1 of line 2 any calendar year, the following shall apply:
line 3 (I) The percentage change shall be the percentage change in the line 4 amount published for April of the immediately preceding calendar line 5 year and April of the year before that.
line 6 (II) If there is not an amount published in April for the applicable line 7 geographic area, the percentage change shall be the percentage line 8 change in the amount published for March of the immediately line 9 preceding calendar year and March of the year before that. line 10 (ii) For rent increases that tak e effect on or after August 1 of line 11 any calendar year, the following shall apply:
line 12 (I) The percentage change shall be the percentage change in the line 13 amount published for April of that calendar year and April of the line 14 immediately preceding calendar year.
line 15 (II) If there is not an amount published in April for the applicable line 16 geographic area, the percentage change shall be the percentage line 17 change in the amount published for March of that calendar year line 18 and March of the immediately preceding calendar year. line 19 (iii) The percentage change shall be rounded to the nearest line 20 one-tenth of 1 percent.
line 21 (3) “In-place transfer” means the sale of a mobilehome pursuant line 22 to Article 7 (commencing with Section 798.70) where the line 23 mobilehome is transferred by a homeo wner to a subsequent line 24 homeowner and remains at the same mobilehome space. line 25 (h) (1) Nothing in this section af fects the authority of a local line 26 government to adopt or maintain an ordinance, rule, re gulation, line 27 or initiative measure that establishes a maximum amount that may line 28 be charged for rent, or other regulations for a tenancy. line 29 (2) This section is not intended to express any policy regarding line 30 the appropriate, allo wable rental rate increase imposed by line 31 ordinance, rule, re gulation, or initiati ve measure re gulating rent line 32 increases, nor in connection with the continuation of an y line 33 mobilehome rent re gulation that a local go vernment has chosen line 34 to enact and administer , based upon the particular needs or line 35 economic conditions within the local jurisdiction. line 36 (i) This section shall not apply to a mobilehome park when a line 37 local government that has adopted an ordinance, rule, regulation, line 38 or initiative measure prior to the effective date of this section that line 39 establishes a maximum amount that may be char ged by 98 — 6 — AB 1035
line 1 management for rent or otherwise re gulates the rental rate for a line 2 mobilehome tenancy.
line 3 SEC. 2.
line 4 SEC. 3. The provisions of this measure are se verable. If any line 5 provision of this measure or its application is held in valid, that line 6 invalidity shall not affect other provisions or applications that can line 7 be given effect without the invalid provision or application.
O
98 AB 1035 — 7 —
May 3, 2023
The Honorable Al Muratsuchi
1021 O Street, Suite 5610
Sacramento, CA 94249-0066
RE: AB 1035 Mobilehome parks: rent caps
Notice of Opposition
Dear Assemblymember Muratsuchi:
The City of Huntington Beach respectfully opposes AB 1035. The proposed legislation would interfere with the free market rent system, which can interfere with a property’s ability to produce sufficient income and remain competitive.
The City of Huntington Beach Charter Section 803 states “The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property.…”
For these reasons, the City of Huntington Beach respectfully opposes AB 1035.
Sincerely,
Tony Strickland
Mayor
City of Huntington Beach
Cc: Senator Janet Nguyen
Senator Dave Min
Assembly Member Diane Dixon
Assembly Member Tri Ta
ACC-OC Board of Directors (via email)
Bismarck Obando, Director of Public Affairs ([email protected]) League of California Cities ([email protected])