Your Rights Bytes #11 - Abandoned Mobilehomes

Question:  I own a mobilehome park where there are many abandoned homes.  Can I sell them without registering as a real estate agent?

Background:

The majority of calls on this subject were from residents who reported many observations of illegal acquisitions.  The most egregious example – of, well, theft – were of a few mobilehome park owners and managers who routinely “sold” abandoned homes to persons who were living in this country without proof of citizenship.  The “undocumented” resident would pay for their MH in cash installments.  Then, when the resident paid the last installment on their home, the park owner or manager would order the undocumented resident and their family to leave the park immediately under threat of being reported to immigration authorities.  The family would flee the park and the home was then sold to the next undocumented family with the same outcome.  A penalty of $2,000 would hardly dissuade a theft of a home that would yield thousands more, if the theft was prosecuted at all.

Answer:  Generally, the answer is “no”.  First, in order to act as an agent between a seller or buyer of a used mobilehome or manufactured home, you either must be registered with HCD as a “manufactured home dealer” or with the Bureau of Real Estate as a licensed real estate agent.  Acting as an unlicensed dealer or agent can result in criminal penalties, civil penalties, and citations of up to $2,000 for each illegal sales activity.

The only exception to this is if the prior residents/homeowners have “walked away” from the homes, a park owner may sell them if he/she first obtains the right to ownership through a court action for the judgment of abandonment (Civil Code Section 798.61) or after a warehouse lien sale (Civil Code Section 798.56a).  After that, if the park owner intends to rent, sell or salvage the units, the park owner must go to HCD and transfer title to his or her name, which includes paying all property taxes or HCD fees that are owed.  HCD also has special procedures for when the prior registered owner cannot be found or when there are unpaid or unsatisfied loans on the home.  Only after registering as the new owner may the Park owner (who is now the homeowner) rent, sell, or salvage the abandoned homes.

--Stephanie Reid, formerly on staff with the Senate Select Committee on Manufactured Homes and Communities

Your Rights Bytes #10 - MRL Enforcement

Question:  What good is the MRL if there is no enforcement and residents have to go to court to protect themselves?

Background:

This issue, more than any other, caused residents to hang up the phone mad at me.  Telling residents that they had to take their dispute to the courts was no help at all, making callers furious and extremely frustrated.  It made no sense to residents that they should call the state capitol simply to get turned away.  I had to explain that my role was limited to staffing legislation and advising senators and staff on the MRL.  Unfortunately this caused more anger and the predictable rebuke, “Then what DO you do if you can’t help me?”  I was never offended by their frustration because I understood.  It only made clear the need for a program that would close the gap between the law and access to justice.

As a result of residents’ requests for legal assistance, I added the Community Resources section to the annual MRL Handbook, which lists county court services.  This listing was still not sufficient – and I knew it.  Residents needed an advocate who would accept their case and guide them through the legal process, just like a social services agency would guide an individual through the complex process of applying for and receiving health care, food or housing. 

Answer:  The MRL – the landlord-tenant law for mobilehome parks -- is part of the Civil Code. The enforcement mechanism is through the civil courts, not law enforcement or another government agency.  The courts are a branch of government responsible for, among other aspects, resolving or ruling on civil disputes.     The good news is:  with the enactment of AB 3066 (2018), GSMOL and HCD will join as partners in developing a referral program that will bring residents complaining of MRL violations together with local non-profit legal advocates.  This is known as the Mobilehome Residency Law Protection Program.   Homeowners will be able to begin filing complaints in July, 2020.   GSMOL and GSMOEF (Education Fund) will be communicating with homeowners with more information.

--Stephanie Reid, formerly on staff with the Senate Select Committee on Manufactured Homes and Communities, updated by Anne Anderson, website editor and GSMOEF Board Member