Park Owners Challenge Rights of Manufactured Home Buyers

REMOVING A SPACE FROM RENT REGULATION

Can prospective purchasers be forced to give up local space rent protections? Yes/No/Maybe.

The correct answer is Maybe. The ability to ensure that prospective purchasers of mobilehomes on rent-controlled spaces cannot be forced to give up the protections given by the ordinance is vital to the success of any local rent regulation. Without such a provision, park owners can require that a long-term lease be signed at the time of resale, which effectively removes the space from ordinance coverage.

PROSPECTIVE PURCHASER ARGUMENT

Do some park owners claim that they are not obligated to offer short term leases to home purchases? Yes/No/Maybe

The correct answer is Yes. Park owners have historically taken the position that because a "prospective purchaser" is not a "homeowner," there is no obligation to offer the former a choice of leases or the opportunity to be covered by the ordinance. Note that there is no dispute that an existing homeowner is entitled to such protections under Civil Code section 798.17. 

PREEMPTION ARGUMENT

Have park owners argued that State Law prevents local governments from extending rights to new purchasers? Yes/No/Maybe. 

The correct answer is Yes. Park owners have argued that a local government's attempt to extend the same rights enjoyed, by homeowners to new purchasers is preempted by various provisions of state law. They specifically point to 1990 legislation contained in California Senate Bill 2009 which, they say, prevents local governments from acting. But this argument should not deter any local government from enacting protection for new buyers.

Source: The GSMOL Mobilehome Rent Stabilization Ordinance Handbook, Second Edition: Guidelines for Drafting and Enacting a Mobilehome Rent Stabilization Ordinance.

Prepared by: Bruce Stanton, Esq., Corporate Counsel

Image courtesy of Stuart Miles at freedigitalphotos.net