MHP Residents Rental Agreement Options

Renting a site in a mobile home park is far different than renting an apartment, condo or single- family home. The State of California has adopted many laws that specifically apply to mobile home park tenancies and not to other types of rentals. Because of the different rules that apply in mobile home parks, the rental agreements and leases are longer and more comprehensive than the short few pages of a “standard” rental agreement for renting an apartment, condo or single-family home.

When a mobile home buyer makes the decision to move into a rental mobile home park, the process is more involved than just purchasing the mobile home. In fact, as a prospective mobile home park tenant they need to complete transactions that do not apply to other forms of rental housing. The purchaser of a mobile home that is located in a mobile home park must first apply to the mobile home park for residency and be approved. The mobile home purchaser may not finalize the purchase of the mobile home without first receiving the approval from the park owner to move into the park and completing and signing all of the park documents. Once this is done the sale of the mobile home may be finalized.

Included in the “move-in” documents to be signed by the prospective mobile home park resident are various disclosure forms, the parks rules and regulations, pet agreements and the rental agreement. In mobile home parks, the State law requires a park owner to offer the tenants a 12-month lease. The prospective tenant, or current resident, is responsible for picking between a month- to-month rental agreement or a one-year agreement. Additionally, many parks offer a third choice of a long-term lease agreement, which is defined as being longer than 12-months.

Typical long-term agreements are five, ten or fifteen years, but some extend to 20 years or longer. These long-term lease agreements outline in detail what the rent increases will be and under what circumstances rents may be increased. As an example, if government imposes tax increases or fees on the mobile home park, the lease will outline how those increases will be passed through to the residents. Often the lease will address the change in rent upon resale and will also address how disputes will be resolved.

A long-term lease provides certainty to mobile home owners regarding future costs. However, at any time if a mobile home owner wishes to sell their mobile home and move, they simply provide notice to the park owner.

Long term lease agreements are indeed complex legal. It is similar to other legal documents signed by business owners to lease land or a building or office space. Additionally, all legal documents must be written in English.

In this case, the mobile home owner is leasing or renting a site for the mobile home they own. Along with the site comes the various amenities offered within the mobile home park community including various facilities, as well as management and maintenance.

When considering signing a lease document — regardless of the term — it is important to review it very carefully and to fully under- stand the legal document. Park owners encourage park residents and prospective residents, who are considering long term leases, to have their legal advisor review the lease contract.

HCD New Mobilehome Park Maintenance Inspection Webpage

In accordance with California Health and Safety Code, the California Department of Housing and Community Development (HCD) conducts Mobilehome Park Maintenance inspections to ensure compliance with health and safety laws. Inspections include the general areas, buildings, equipment, and utility systems of mobilehome parks, each individual lot, and the exterior portions of individual manufactured homes and mobilehomes in each park inspected.

A new Mobilehome Park Maintenance (MPM)

Inspections webpage consolidates inspection information for mobilehome park residents and operators in a single location. Detailed information to help park residents and operators such as booklets (also available in Spanish and Vietnamese) and a video to help park residents and owners prepare for the park maintenance inspections can be found on the website address below:

http://www.hcd.ca.gov/manufactured-mo- bile-home/mobile-home-parks/mobile- home-park-maintenance-inspections.shtml

Mobile Home Values and Sales Prices

The factors considered in valuing a mobile home located in a community include the location of the park, the amenities and general appearance/condition of the community. However, it is helpful to know that the values assigned by the appraisal guides to mobile homes located in mobile home parks do not take into consideration the market conditions of a region or the costs associated with living in a particular location or park.

All of these factors and others come into consideration when a mobile home is sold “in place” in a mobile home park. As an example, the same make and model 40 year doublewide mobile home located in a mobile home park on the ocean will sell for more than the same home located in a park located inland. In the case of the ocean front mobile home, the purchaser is not paying for the “value” of the mobile home, but rather is paying a premium to the seller because of the location of the mobile home.

In addition to the location of the community park, the cost to live in a park or region is also a factor in the sales prices of mobile homes. The amount a willing buyer and willing seller agree upon depends on the purchasing power of the prospective homebuyer. In other words, the monthly housing budget they have to spend. For example – a typical mobile home buyer may have a monthly housing budget of $2,000.

This housing budget must cover the rent, mortgage, and utilities. They are looking at the same make and model of mobile home in two different parks in central Orange County with similar amenities. One community charges $800 a month rent and the other charges $1,200. There is more than likely a difference in the sales price of the home as well as the rent. The home in the park with the lower rent may sell for thousands of dollars more than the one in the park with the higher rent. The buyer has a choice to pay more of their budget for rent or more for the mortgage.

Some mobile home owners who chose to pay less for the home and more for the rent are upset years later when they say they can’t sell their home for as much as the owner of the same home in another park with lower rent. Nothing has changed, the payment is made up-front in higher cost of purchasing the home, or paid incrementally over a long period of time in rent.

Additionally, it is not uncommon for the buyers of mobile homes to pay cash for the home, making the lower priced home more attractive knowing that the only housing payment will be the monthly site rent.

Another Mobile Home Burns! Will Your Insurance will Cover your Home?

On March 15, 2018 a mobile home was destroyed completely by fire in the City of Cypress, Orange County. The photos show the devastation. The man inside the home suffered burns. According to a March 15 Orange County Register report the cause of the fire is still under investigation.

Officers escorted the subject away from the residence seconds before an explosion occurred.

When a fire like this happens the first questions or comment is, “We sure hope the owner of the home was insured.” Unfortunately, the answer to this question is frequently that the home owner is either uninsured or under insured.

Fires happen. It could be your home damaged by a fire in a neighbor’s home or a huge disaster like wild fires where embers land on your roof and there is no stopping the damage and devastation that follows.

The pictures of this disaster tell the story. Don’t be caught without insurance. It is recommended that you consult with a professional who specializes in insuring mobile and manufactured homes for your insurance coverage.

The key is to have the home insured for replacement value. If you have a loan on the home and it is completely destroyed by a fire, you still owe the loan amount, plus you need to now replace the home.

The insurance coverage needed will need to cover the removal of the old, destroyed home, the preparation of the lot for the placement of a new home, payment of the mortgage and the purchase of a replacement home. This could be a considerable sum, but far better to be insured for the total loss.

Mobile Home Resident Law 2017

The new 2017 “Civil Codes” or the MRL, as the codes are often referred to, will go into effect January 1, 2017.  Copies will be distributed to park residents by the park management by February 1, 2017.  To get a digital copy of 2017 Mobilehome Residency Law please visit:
http://mobilehomes.senate.ca.gov/publications.

There were not too many changes this year, but it is always good to be familiar with the State laws that govern the community in which you live.

Questions about the Mobilehome Residency Law may be asked of the California Mobilehome Ombudsman at (800) 952-5275.

Thinking of Selling Your Home?

There are some very important things to do before you sell your home – whether you sell by owner or real estate agent.  First, review your Park’s rules and regulations, rental or lease agreements for important information regarding selling your home and signs that may be posted regarding the sale.

Prior to purchasing a manufactured home located in a rental park, the prospective buyer must be approved for tenancy in the park by the owner of the park.  The sale of a mobile home located in a mobile home park is a three-party, not two-party transaction. The buyer and seller must not only agree to terms on the sale of the home, but the buyer must also be approved for residency in the park by the park owner/management.

Park management can withhold approval on the basis of:
1) the buyer’s inability to pay the rent and charges of the park and 2) the buyer’s inability to comply with park rules and regulations as indicated by prior tenancies.

Although guidelines used by other landlords or public agencies for rental housing may be more lenient, many park owners impose higher income requirements to assure buyers will be able to afford future rent increases without causing the park problems, such as evictions.

The seller of a manufactured home must provide the buyer with certain disclosures, electrical equipment and appliances.

Mobile Home Improvements that Can Help Seniors Stay Independent and in their Home longer.

No one wants to have to leave their home because it has become too hard to get around or reach things. Even the healthiest seniors can struggle with things that they have never had to worry about before. Here are a few improvements that can keep your home from becoming a hindrance as you age.

Bathroom Improvements

  • Falls usually happen while getting in or out of the bathtub. Installing handles and a non-skid latex mat inside and outside will reduce the chances.
  • Elevated toilets help people that find it hard to squat, bend, sit or stand. It’s a good idea to have grab bars anchored to the wall and floor beside the toilet, too.
  • Set the thermostat on the water heater to a maximum of 120 degrees to prevent burns.
  • Store toiletries, first aid supplies and other bathroom necessities at waist level where they limit bending, stooping or stretching. (This is true for all rooms.)
  • Consider a tub seat or walk-in shower unit.

Kitchen Improvements

  • Raise the dishwasher so bending is not needed for loading and unloading.
  • Use multi-level counter heights with open space beneath to allow for sitting.
  • Replace higher cabinets with lower shelving or drawers. Often used items should be handy.
  • Install a wall oven, lowered for comfortable use. Use a countertop range, lower the height for ease of use.
  • Flat surfaces around the stove are easier to clean and allow sliding of heavy pots instead of lifting.

Other Rooms

  • Replace doorknobs and faucets with lever handles.
  • No step threshold can decrease falls.
  • Building walk-in closets with multiple heights allows easy reaching.
  • Install rocker light switches that are easier to turn on and off compared to the old fashioned flip switch.
  • Make sure there is ample room to maneuver easily between furniture and walls.

Remodels can be expensive but if you do a little at a time the cost of these updates are manageable AND will cost far less in the long run than an assisted living facility.

Frequently Asked Mobile Home Question: Value

How does the county assessor determine the value of my manufactured home?

Manufactured homes are subject to Proposition 13 under which the county assessor determines the base year value of a manufactured home, which is generally the market value at the time of purchase. After the first assessment annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or 2 percent, whichever is less. Any new construction will have its own separate base year value. When the manufactured home is sold, it will be reassessed at its current fair market value and a new base year value will be established. If your manufactured home is located on land that you own, the land will be assessed separately. If you live in a tenant-owned mobilehome park, a different rule may apply.

The basic structure is assessable as well as all accessories, including, but not limited to: awnings, fences, windbreakers, storage cabinets, heaters, carport, water coolers, cabanas, porches, and skirting.

Section 5803(b) of the Revenue and Taxation Code specifically provides that the assessed value of a manufactured home on leased or rental land is not to include any value attributable to the land where the home is located. This means that the county assessor must not increase the value of your mobile home because of positive location nor decrease the value because of negative location.

Mobile Home Park Subdivisions

This year the State Senate signed into law SB 510, which allows (it does not require), a survey of the park residents to be taken into consideration when approving or disapproving the conversion of a park to fee ownership through a subdivision. This means that the government is allowed but not required to take into consideration, the majority feeling amongst the residents in the park, regarding the conversion to fee ownership.

The idea of a mobile home park subdivision is confusing and scary to many residents. Without an “owner”, who will operate the park? Will I be forced to buy the land under my home? Will I be evicted if I cannot or am unwilling to buy my land? All of these questions are valid and reasonable. They are also fairly easy to answer when one looks at past park conversions/subdivisions in the state.

Before a subdivision happens most parks create a co-op, or home owners association that will have the responsibility of running the community. The association is made up of homeowners living in the park.  Residents who purchase their lot become members of the new HOA (Homeowners Association) and those who do not purchase their lots continue to rent their lots from the HOA.

Homeowners pay an association fee to help manage and maintain the community.  It is generally considerably lower than the monthly rent.  Homeowners Associations and the dues they require are present in many stick built housing communities.  Most park residents like this idea because the people managing their rents are their neighbors and fellow community members.  Change is not easy but it is also not always bad.

The bottom line is that it when a mobile home park subdivides it provides the residents with the opportunity to control their own destiny by owning the land they are living on instead of renting the land.  It is a win-win for everyone.

Utility SCAM

Scam artists often target homeowners and many times use well known businesses as a cover to gain your trust. The most recent scam that has been reported to us is one that involves a caller identifying themselves as an employee of the utility company Edison. They state that they have not received payment from you and that they will be sending someone out in the next three days to shut off your electricity. They then ask for your personal information.

DO NOT EVER PROVIDE ANYONE WITH BANK ACCOUNT INFORMATION, YOUR SOCIAL SECURITY NUMBER OR CREDIT CARD INFORMATION OVER THE PHONE WITHOUT VERIFYING WHO THEY ARE!

A resident at a park in Santa Ana was contacted by one of these scammers and took the proper steps by

  1. Providing the caller NO personal information
  2. Contacting the Park Manager to inform them of the Scam
  3. Contacting the local police department (using the non-emergency number) to inform them of the scam attempt.

Keep yourself and your information safe!