AB1542 FACTS

AB 1542, a bill sponsored by Noreen Evans (D-Santa Rosa), has passed the Assembly and will be voted on by the Senate this month. If it passes, then the Governor must be persuaded to sign it before it can become law. Residents of mobilehome parks around the state, and people concerned about seniors and affordable housing are strongly supporting this bill. Here’s why:
-- Current law allows mobilehome park owners an easy, expedited path to convert the spaces in their parks to condominiums -- selling for $100,000 to $200,000 or more -- regardless of whether home owners in the park want to own the boxes of air that surround their homes. (Gov. Code §66427.5) Residents must also pay homeowners’ association fees that can be $400 or more per month, plus real estate taxes and any repairs to the park’s infrastructure. Residents who now pay $500 per month for space rent can expect to pay $1,500 per month or more if the park owner converts the park to condos. City and county governments have little power to stop or regulate these conversions.
AB 1542 will give residents greater say and more protection if the mobilehome park owner tries to convert the park to condo’s. It will allow local governments to set conditions on conversions just like they do when landlords convert apartment buildings to condos.
-- Under current law, residents in parks converting to condos who don’t or can’t buy the condominium airspace where their homes are located may get hit with huge rent increases. Any local rent control restrictions will not apply to the mobile home park after the first condominium air box is sold. Persons with moderate household incomes will see their rents increased to whatever the park owner wants to charge over a four year period. Residents who now pay $500 per month for space rent will likely find their rents doubled or tripled. State law limits rent increases for lower income residents, but no state agency is designated to enforce this limit, so the park owner may try to avoid it.
AB 1542 will prevent big rent increases in parks where local rent control applies. Any residents who don’t buy their condo airspace will continue to be covered by the local rent control ordinance. If there is no local rent control, AB 1542 limits rent increases to no more than the annual increase in the area cost of living.
-- Under current law, park owners stand to make huge profits from condominium conversions, while many residents will no longer be able to afford to live in the park and will be forced to move. Mobile homes (and manufactured housing) provide good affordable living places for over 700,000 people in California. Almost all of the residents of mobile homes in California are low and moderate income households. When a mobile home park converts to condominiums, the homes will be much less affordable. Current home owners in the park will see their home equity greatly reduced by condo conversion.
AB 1542 will allow local governments 1) to restrict or deny condo conversions where residents are opposed; 2) to require park owners to disclose in advance the likely costs of the condominiums and the terms under which the condominium interests will be sold; 3) to require the park owner to make repairs to the infrastructure of the park before selling any condominiums; and 4) to provide relocation payments to families forced to move because of the conversion to condominiums.

To learn more about AB 1542, click here. The bill is supported by the Golden State Manufactured-Home Owners League (GSMOL), CMRAA. the California AARP, the League of California Cities, the Bay Area Housing Advocacy Group,, the California Rural Legal Assistance Foundation, and the Building and Construction Trades Council of California, and many residents’ associations. For further information about AB 1542, see http://www.leginfo.ca.gov. If your mobilehome park residents association can help us to get this bill passed and signed by the governor, please send an e-mail to sonocondo@gmail.com or call (707) 528 6811 (message phone).