GSMOL LEGISLATIVE UPDATE

By Maurice A. Priest, Legislative Advocate

July 14, 2008

SB 1234 (Correa) SIGNED INTO LAW BY THE GOVERNOR

SB 1234 (Correa) ---Support--- SIGNED INTO LAW BY GOVERNOR. As amended, prohibits park management from entering a closed storage shed, or any enclosed accessory such as a screened-in porch, deck, patio room on homeowner’s space without prior consent. It provides further protection to prevent a park employee from entering those accessories to look through windows into the home or take photos through windows. Bill is intended to protect privacy of homeowners. Bill was signed by the Governor on July 10, 2008 and will take effect on January 1, 2009. Our sincere thanks to all members who helped gain passage of this new law!

SB 1107 (Correa) PENDING ON GOVERNOR’S DESK

SB 1107 (CORREA)—Support. SB 1107 will give disabled and handicapped homeowners the right to make modifications to their mobilehomes to accommodate their disabilities without interference from park management. Homeowners would still have to obtain legally required permits, but park owners could not prohibit construction of ramps, for example. Bill has been further amended to state that the right to have a medical caregiver extends to homeowners of any age. Passed the Assembly Floor on June 30^th and passed Senate for concurrence with amendments on July 2^nd by vote of 40 to 0. Bill now on Governor’s desk. Urge the Governor to sign SB 1107 into law.

July 10, 2008

2008 GSMOL SPONSORED/SUPPORTED BILLS

Urgent appeal for you to contact your own State Senator immediately to urge support of AB 1111, which could go to a vote as early as July 14, 2008. If homeowners have relied on the written rules and regulations adopted by their park owner, who made the park for persons 55 years of age and older, and they then purchased a home in reliance on that written policy, as a matter of equity, the park owner should not thereafter tell them he changed his mind, and it will change to an all-age park. As amended, AB 1111 would give local governments the right to protect existing 55+ parks. Bill gives state authorization to cities and counties to adopt ordinances prohibiting park owners from changing 55+ parks to all-age.

SENATE BILLS

TWO BILLS NOW ON GOVERNOR’S DESK: SB 1107 & SB 1234

1. SB 127 (Kuehl) – Support. Upon sale of a mobile/manufactured home, the transfer or resale disclosure requirements be made available within 10 days of a signed contract to purchase, rather than by close of escrow. Sponsor: Sen. Kuehl. GSMOL: Support; Pending on Assembly Floor. Put on 3^rd Reading, Floor Vote soon. Urge your Assemblymember to Support.

2. SB 1107 (CORREA)—Support. First GSMOL bill to reach the Governor’s desk. SB 1107 will give disabled and handicapped homeowners the right to make modifications to their mobilehomes to accommodate their disabilities without interference from park management. Homeowners would still have to obtain legally required permits, but park owners could not prohibit construction of ramps, for example. Bill has been further amended to state that the right to have a medical caregiver extends to homeowners of any age. Passed the Assembly Floor on June 30^th and passed Senate for concurrence with amendments on July 2^nd by vote of 40 to 0. Bill now on Governor’s desk. Urge the Governor to sign SB 1107 into law.

3. SB 1122 (Correa)---Support---This bill would improve enforcement of mobilehome park inspections and bolster requirements that parks promptly pay their licensing fees to HCD. Passed Assembly Housing Committee on June 18^th. Advances to Assembly Appropriations. Placed on suspense with other fiscal bills. Urge your Assemblymember to support.

4. SB 1226 (Alquist)---Support---This bill would amend the CalHome Loan program to allow park owners who co-apply with a local government, homeowners, and nonprofits, to obtain loans for infrastructure repair and replacement in parks, only upon proof that low income residents will benefit from loan, and requiring that a percentage of the park be limited to low income homeowners in the future. Placed on Senate Appropriations suspense file with other fiscal bills. Urge your Senator to support.

5. SB 1234 (Correa) ---Support--- NOW ON GOVERNOR’S DESK. As amended, prohibits park management from entering a closed storage shed, or any enclosed accessory such as a screened-in porch, deck, patio room on homeowner’s space without prior consent. It provides further protection to prevent a park employee from entering those accessories to look through windows into the home or take photos through windows. Bill is intended to protect privacy of homeowners. Bill has passed Assembly Housing committee on June 18, 2008. Passed Assembly Floor. Advances to Governor’s desk. Urge the Governor to sign SB 1234 into law.

6. SB 1452 (Correa)—Support—Bill will increase the authority of HCD to impose mid-range penalties against mobilehome dealers and salesperson who violate the law. Right now HCD has authority to impose fines of only $100 to $250 or to terminate their license. This bill would allow HCD to impose mid-range fines of $250 to $2,000. Passed Assembly Appropriations on July 9th. Pending on Assembly Floor. Urge your Assemblymember to support.

7. SB 900 (Corbett) Withdrawn by Author. Bill is Dead. On June 10, 2008, Senator Corbett notified GSMOL, sponsor of the bill, that she would be withdrawing the bill. As you may know, some homeowner groups and some local governments, continued to oppose the bill unless it was amended to bolster local government control, or to bolster the resident survey already stated in current law. Based on the veto of AB 1542, it was GSMOL’s position that if the bill were amended to address the survey or to increase local control, that SB 900 would also be vetoed. We therefore supported the amended bill, which would improve financial protections for mobilehome owners who could not afford to pay the space price demanded by their park owner. In a brief statement given by Senator Corbett at the time of the scheduled hearing, Senator Corbett stated that she was concerned that to proceed with the bill might adversely impact pending litigation between local governments attempting to protect homeowners from park conversion, and park owners who have initiated the condo-conversion of parks.

GSMOL sincerely appreciates the hard work of our members throughout the state, and our many coalition supporters who worked hard for passage of SB 900.

ASSEMBLY BILLS

8. AB 1111 (DeSaulnier)--Support -- As amended, would give local governments the right to protect existing 55 and over age parks. Bill gives state authorization to cities and counties to adopt ordinances prohibiting park owners from changing 55 and over parks to all age parks. PENDING ON SENATE FLOOR TO BE TAKEN UP ON JULY 14^TH. URGE YOUR SENATOR & ASSEMBLYMEMBER TO SUPPORT.

9. AB 2050 by Bonnie Garcia—Support—in Assembly. As amended on April 7, 2008, the bill provides that all water heaters installed in mobilehomes but be strapped and secured so they will not fall in the event of an earthquake, and it also requires verification that smoke alarms have been installed when a mobilehome is resold. Pending on Senate Floor. Urge your Senator to support.

10. AB 2857 by Sally Lieber—Support—in Assembly. As amended March 25, 2008, this bill is sponsored and supported by GSMOL, with new language to address a loophole in the law regarding the CARE Utility Discount Program. GSMOL has learned that if in a 100 space mobilehome park, that 90 of the spaces are on master-meter/submeter utility systems, and the 10 remaining spaces are on direct bill meters with the utility, that none of the residents will be considered for the CARE utility discounts, because the “entire” park is not on master-meter/submeters. This current position by the Public Utilities Commission is unfair to low income homeowners in a park that would otherwise quality for a discount on their utilities, but cannot participate because some number of other spaces in the park are not submetered. AB 2857 will correct and close this loophole. Pending in Senate Appropriations. Urge your Senator to support AB 2857.

The Legislature had been scheduled to be on recess from July 3, 2008, returning August 3, 2008. However, because a new state budget has not been adopted, the Legislature has remained in session. They continue to hold regular committee hearings and floor sessions on all legislation, including mobilehome bills. If a budget is adopted before August 3, 2008, the Legislature may adjourn for some shorter summer recess, until August 3, 2008.

For the latest information on the status of pending mobilehome legislation, after normal business hours and on weekends, call the GSMOL Legislative Hotline, toll free at 1-800-888-1727.

VICTORY IS OURS!!!

Prop. 98 Defeated

Prop. 99 Prevails

Let June 3rd be known as MH owner “Victory in California” Day for the incredibly lop-sided defeat of Prop. 98 and triumph of Prop. 99. We want to thank all who helped in this effort, whether in spreading the word or with financial assistance. Not only will this help preserve the protections we now enjoy, it might well lead to more protections in the future.

Above all, the defeat of Prop. 98 is a big relief for us. It would have been devastating for homeowners in "mobilehome parks" statewide and impacted virtually all renters. Prop. 98 de-regulation would have been akin to giving control of the affordable housing market to ENRON and letting it raise rents at will. Many unscrupulous and predatory landlords are already doing just that in areas without rent protections. Prop. 98 would have displaced thousands and led to widespread abuse and exploitation of the elderly and disabled. We are gratified that voters of California saw through the Prop 98 smokescreen of deception and understood the measure for what its primary purpose really was; to wipe-out rent control.

We understand landlords' desire to eradicate rent protections but were troubled by the California Association of Realtors and the Howard Jarvis Taxpayers Association sponsorship of 98. In particular, Jarvis support of 98 was a betrayal of taxpayers to benefit a few wealthy property owners promoting their own selfish agenda. The defeat of Prop. 98 was actually a victory for all taxpayers in California.

Voters clearly support rent protection in California, as evidenced by the defeat of 98. Prop. 98 has been a blessing for advocacy groups in that it was a wake-up call to all our members and created a vehicle to educate the general public on how vulnerable renters can be. The strong alliances formed will likely lead to greater protections in California and across the country.

We hope the defeat of Prop. 98 and passage of Prop. 99 will put the matter of Eminent Domain concerns to rest and send a message to the supporters of 98 that they will face a worthy adversary if they attempt to wipe-out renter protections in the future.

_______________________________________________________________________

ELECTION RESULTS

State Ballot Measures

FINAL

Statewide Results

Name			Yes Votes	%	No Votes	%
98	N	Eminent Domain. Limits on Government Authority.	1,343,037	39.0%	2,092,171	61.0%

99	Y	Eminent Domain. Limits on Government Acquisition.	2,129,620	62.5%	1,283,050	37.5%

(LA Times Article)

LOCAL ELECTIONS

Prop. 98 Supporters Concede Defeat

Prop. 99, a rival measure on eminent domain that preserves rent control, leads in returns.

By Patrick McGreevy, Los Angeles Times Staff Writer

SACRAMENTO -- Californians on Tuesday rejected a state ballot measure that would have phased out rent control and barred government agencies from taking homes, businesses and farms for private development.

While Proposition 98 was falling short, voters approved Proposition 99, a more narrowly drawn competing measure that prohibits government agencies from using eminent domain powers to force the sale of owner-occupied residences for private projects.

The backers of Proposition 99 declared victory and the backers of Proposition 98 conceded defeat, but appealed to the governor and Legislature to expand homeowner protections.

"By placing a second eminent domain measure on the ballot, opponents of private property rights created enough confusion between the ballot measures to defeat Proposition 98," said Jon Coupal, president of the Howard Jarvis Taxpayers Assn. "Proposition 99's loopholes will allow eminent domain abuse to continue."

Opponents of Proposition 98 charged that the measure was sold as eminent domain reform when its real purpose was to eliminate rent control.

"The voters saw that Proposition 98 was a deceptive initiative -- in fact, the worst kind of ballot abuse where a populist issue is used to conceal an attack on renters, the environment, homeowners and our communities," said Tom Adams, board president of the California League of Conservation Voters.

Tuesday's primary election was plagued by low turnout, one result of a decision to split off the state's presidential primary and hold it in February.

Less than one-third of registered voters were expected to vote by mail and in person Tuesday, said Stephen Weir, the Contra Costa County clerk-recorder who heads the statewide association of elections officials.

Under current state law, government agencies can use eminent domain powers to force property owners to sell for fair market value and can then sell the land or buildings at a discount to a developer for construction of a mall or other profit-making venture.

Proposition 98, which was backed mostly by landlord groups, would have changed the state Constitution to phase out rent control in addition to barring agencies from forcing property owners to sell their property for use by private developers; it would have allowed the use of eminent domain to take property for public uses, such as schools and roads.

Proposition 99 was placed on the ballot as a competing measure by associations representing cities, counties and renters.

The eminent domain provisions are similar but more narrowly focused than Proposition 98.

Like Proposition 98, it will exempt public works projects. Proposition 99 will make no change to rent control laws.

The Howard Jarvis Taxpayers Assn., California Farm Bureau and other sponsors of Proposition 98 said it was a necessary response to a 2005 U.S. Supreme Court decision that upheld the right of governments to take homes for commercial development.

The measure would have maintained rent control for current tenants but lift it on apartment units and mobile home spaces as they are vacated.

"It's kind of un-American to force a housing provider or any other business to provide services at less than fair market value," said Dan Faller, president of the Apartment Owners Assn. of California.

Faller's group was part of a main campaign that spent about $7 million to support Proposition 98, with about 80% of the money coming from real estate interests, including owners and managers of apartment buildings and mobile home parks.

Opponents spent about $11.3 million, much of it from the League of California Cities, California State Assn. of Counties and California Redevelopment Assn.

The potential rollback of rent control drew the opposition of Jeannine English, president of the California AARP; Janis R. Hirohama, president of the League of Women Voters of California, and Larry Gross, executive director of the Los Angeles-based Coalition for Economic Survival, a tenants group.

"Seniors and other vulnerable people have a difficult time finding low-cost housing and this would eliminate those options for them," English said.

About 1.2 million people live in apartments and mobile home parks covered by rent control in California.

Gov. Arnold Schwarzenegger spoke out against Proposition 98, warning that it could add to the cost and delay of funding public works projects with voter-approved bonds by setting up additional restrictions on government use of eminent domain.

Proposition 99 was written so that it, and not 98, would take effect if both passed but Proposition 99 received more votes.