Video of Ed Fund Virtual Townhall on April 10, 2021 featuring Bruce Stanton

 The first presentation on our new Ed Fund YouTube Channel is the Virtual Townhall held on April 10, 2021, featuring GSMOL General Counsel Bruce Stanton.  

WATCH THE VIDEO

Ed Fund Virtual Townhall July 10 2021

 Golden State Manufactured-home Owners Education Fund

presents a

Virtual Mobilehome Townhall

General Summer Mobilehome Law Update and Q & A

featuring

Bruce Stanton, GSMOL General Counsel

Saturday, July 10, 2021

10:00 AM

Zoom Meeting ID: 843 9303 4511

Passcode: 864074

Join Zoom Meeting on the web:

https://us02web.zoom.us/j/84393034511?pwd=S2J0WjJ6RFI5dG5kczRvSjF6UzZZUT09

OR

Dial in on any kind of telephone:

(669) 900-6833

Participants on landline phones: 

mute/unmute with *6 (Star Six) 

raise/lower hand with *9 (Star Nine)

The meeting will be recorded, and we hope to post it on YouTube. 

***NO RSVP IS REQUIRED***  

You may send questions for Bruce Stanton to me in advance at a.bushnell.anderson@gmail.com

Anne Anderson

GSMOEF Townhall Coordinator

Q & A from Ed Fund Virtual Townhall April 10, 2021

Golden State Manufactured-home Owners Education Fund 

Notes from Q&A Session Following Ed Fund Virtual Townhall with GSMOL Attorney Bruce Stanton on April 10, 2021

Compiled by Carol Brinkman

1.      Is Park management required to clean after clubhouse use due to COVID? Our park manager says he is not cleaning. The answer is likely “Yes”, but check your city or county’s rules and guidelines for specific requirements.  Park management which does not follow County health guidelines or reasonable safety protocols is very unwise given virus conditions.  Any written COVID waiver the park owner might ask you to sign will not protect the park from its own negligence if it fails to take reasonable precautions to protect residents.

2.      Can we force the park to open their books? Our park is moving from sub-metered utilities to direct assessment, and we feel the reduction in rent he is offering is too little compared to other parks in our area. Civil Code 798.41 allows utilities to be billed separately according to usage, which encourages conservation. Rent reduction shall be equal to the average amount charged by park management for that space during the prior 12 months. The problem is park owners seldom calculate costs on a space-by-space basis as this section appears to require, but simply divide the utility usage by the number of park spaces. There is no known court decision which construes this requirement.  But the park has an obligation to show how their calculation is made. Utility companies seldom want to get involved, citing privacy issues. If the rent reduction is unreasonable, residents have the right to have a meeting and challenge it with management. Provide evidence of what comparable local parks are charging. You might have to go to court to prove that the 798.41 rent reduction is inadequate.

3.      Can I initiate a willful violation in small claims court without actual damages – as a test case? My park is slow to open facilities and refuses to heat our pool.  Small claims court is always an avenue of relief. Advantages are it is quick (6-8 weeks to get to trial), cost is minimal (less than $100 to file) and no lawyers are allowed. You can argue your case yourself. It is just you and the landlord. If you win, you can use that decision as a “sword” or precedent for other residents to bring the same case. The disadvantages are that your time is court is very short: you must argue your case efficiently.  And if you lose the case there is no right of appeal for the plaintiff, while the defendant can appeal the case to Superior Court for a brand new trial.  The court has a calendar and usually hears 10-25 matters daily. The difficulty will be calculating the value of a service reduction for facilities not re-opening when County guidelines allow for it.  Damages must be proven with certainty.  It is doubtful that a “willful violation” penalty would be awarded without actual damages being proven.

4.      How do I get a copy of a COVID Common Area Facility Waiver of Liability? Every park will likely have its own waiver form; there are templates available to park owners.  You would likely receive this as a mass mailing without needing to ask for it.

5.      Was the process to change our park rules legal? Park owner did not meet with residents as a group but met with 3-4 persons at a time over several weeks. Then he asked us to sign the new rules. Do we have to sign the new rules? NO, you are never required to sign the park rules and shouldn’t.  Pursuant to Civil Code 798.25 new rules  take effect 6 months later, except rules relating to common area facilities take effect 60 days later.  If you do sign them they take effect immediately instead of after the waiting period. Also, signing them could be construed as having signed a contract, which residents should avoid.  The unique pandemic conditions may prevent “in person” meetings. The question is whether the park owner reasonably accommodated the residents by meeting in small groups; more information is needed. The park owner might claim he met separately with residents for their safety during the pandemic.

6.      Our park association puts on events. Do we need to require masks, proof of vaccination, waivers etc. How protected is the Association and residents?  Your Association must comply with park rules, and the County health guidelines. If the park has no rules then what you do will be an added layer to park regulations.  You might make a list of safety “Protocols” for members to follow. If you require a waiver (which is a little heavy handed) make it simple, so as not to completely discourage attendance.

7.      Do we have to sign a new lease when this one expires? NO!  Once a lease term expires a mobilehome tenancy automatically becomes month-to-month. Furthermore, if you sign a long-term lease (longer than one year) you lose the protection of rent control now (and in the future) if your city/county has (or gets) a rent stabilization ordinance. You cannot be evicted for refusing to sign a lease. There are 7 specific reasons for eviction in California and failure to renew a lease is not one of them. Per MRL 798.56 the 7 reasons for eviction are: 1) Failure to pay rent 2) Conduct that constitutes a substantial annoyance to other residents 3) Failure to comply with a reasonable rule and regulation that is part of the rental agreement 4) Failure to comply with local or state laws relating to mobilehomes within a reasonable time after notification of non-compliance 5) Conviction of prostitution or certain felonies committed on the premises  6) Condemnation of the park and 7) Change of use of the park.

8.      We have a long-term lease in a rent-controlled jurisdiction and the park owner is bumping up the rent before the lease expires (and we are eligible for rent control protection). Can he do this? It depends on the terms of your lease. Does it have a “market catch up clause” which states that near the end of the lease the park can raise rent to market value”?  If it does, then increases dictated by your rent stabilization ordinance will be applied to the space rent that exists at the end of the lease. An RSO does not establish the amount space rent should be (high or low) but it does regulate the increases allowed each year. That increase is applied to the base rent at the time the RSO becomes effective. AB 2782 that GSMOL sponsored and helped pass in 2020 helps stem the tide of rapidly increasing MH space rent increases. It closes a state loophole that allows long term leases to be exempt from rent stabilization ordinances. It ends that exemption. All leases of any length signed on or after February 13, 2020 shall no longer be exempt from local RSO (Rent Stabilization Ordinance) which means the local RSO rent increase will apply to protect those residents regardless of what the lease provisions might say. The local RSO will effectively pre-empt the lease! All leases with a term of 12 months or longer signed before February 13, 2020 will remain exempt from rent control until they expire or until January 1, 2025, whichever comes first.

9.      In my park which has a rent stabilization ordinance, park owners are raising rents more than 10% at point of sale of a mobilehome. Is this legal? You must read your rent control ordinance to see what is allowed. If it has a “Vacancy Control” provision regulating resale rent increases, the park owner is restricted in the amount he can raise rent at point of sale.

10.  Can a park owner bill separately for utilities (garbage, sewer etc.) from rent? Yes, but he must adjust the space rent accordingly pursuant to Civil Code 798.41, and cannot charge more than the rate as if the resident was served directly by the utility.

11.  If park owners challenge AB 2782 (i.e., park conversion protection and long-term lease exemption from RSO), does this law stand or does it stop until it is adjudicated? To stop the law, one must get a court injunction which will enjoin the effect of the law pending trial, and then prove the new law is unenforceable.  Without an injunction it will remain enforceable.

12.  Does HCD keep a record of space rents in California to help determine what “market value” or average rents in my area are?  No, HCD does not. You can review a local real estate Multiple Listing Service which lists space rents for mobilehome homes for sale. There are also services such a “Mobilehome Village” which might provide you with information.  Or you can hire an appraiser.

Ed Fund Virtual Townhall February 19 2021

Golden State Manufactured-home Owners Education Fund (GSMOEF) presents a

VIRTUAL TOWNHALL

featuring

BRUCE STANTON, GSMOL Corporate Counsel

FRIDAY, FEBRUARY 19

1:30 PM

He will talk about the new State legislation related to MH parks, and COVID-19 issues impacting MH owners.

 

All Mobile/Manufactured Home Owners are invited - you do not have to be a GSMOL member.

This will be a Zoom meeting, but if you don't do Zoom, you can call in from any kind of telephone.

We are not requiring RSVPs, so no need to reply unless you have a question.  Just be there!  Feel free to share this announcement with other MH owners you know.  

We will have Q & A after Bruce's talk.     

HERE IS THE ZOOM LINK:
https://us02web.zoom.us/j/89834388157?pwd=MGdiSW1WTmwrcUhCa3JIZzIrL1RFUT09
Meeting ID: 898 3438 8157
Passcode: 370570

Or CALL FROM ANY KIND OF TELEPHONE:
(669) 900-6833
Meeting ID: 898 3438 8157
Passcode: 370570  

 

Your Rights Bytes #18 - How to Respond to or Handle a 7-Day Notice

 By Bruce Stanton, GSMOL Corporate Counsel and GSMOEF Secretary                                                              

The Situation:

You live in a mobilehome park and have received a written 7-day Notice from park management to perform repairs to your home or alleging non-compliance with the park rules and regulations.  What is the relevant law, how should you respond and what are your available options as a homeowner?

7-Day Notices in General:

It is first important to know the applicable law concerning what the mobilehome industry calls “7-Day Notices”.  The Mobilehome Residency Law (MRL) provides at Civil Code 798.56 (d) that a homeowner can be evicted for failure to “comply with a reasonable rule or regulation of the park that is part of the rental agreement or any amendment thereto.”  Civil Code 798.15 (b) provides that the rules and regulations are deemed to be a part of any rental agreement, and most parks have written rules.  But no such eviction can occur unless or until a written 7-day notice of any alleged violation is first served upon the homeowner.  This is not the eviction notice itself; a 60-day notice is required to evict.

But if you receive a 7-day Notice, it is thus important to take it seriously and respond within 7 days, since this could be a precursor to a subsequent 60-day termination of tenancy notice. 

If compliance is performed within 7 days of the date of service of the Notice, then it should be deemed satisfied.  It is the date of service, not the date on the Notice, which determines how to count the 7 days. It is important to note that if a 7-day notice has been given three or more times during a 12-month period for violation of the same rule or regulation, no new 7-day Notice is required, and the park owner could elect to proceed with a 60-day termination without providing any new 7-day notice period.

Common violations appearing in 7-Day Notices include:

-repairs to the home, including painting or remedy of dangerous conditions under Title 25;

-repairs to accessory structures, including stairs, awning supports, porches, or utility systems;

-landscaping violations on the mobilehome space;

-clean up of clutter or unapproved items;

-removal of unauthorized occupants from the home;

-cessation of unauthorized conduct or activity.

What a 7-Day Notice Should Contain

To be enforceable, a 7-Day Notice must:

-Recite the rule or regulation which is the basis for each alleged violation;

-Contain a clear description of how the rule or regulation is being violated;

-Contain a clear description of what performance is required, so that the homeowner knows how to comply with it.

 

How to Respond to a 7-Day Notice:

First it is important that the homeowner respond to the Notice, and that the response be in writing, so that you have a record of your response if needed.  The response should be delivered to management in person if possible, or mailed/emailed if there is enough time to do so.  The response should be made within the 7-day period, and could take one of the following forms:

 

1.  The Notice is Vague, Ambiguous or Unclear

A homeowner cannot presume to adequately respond to of comply with a Notice if it is

unclear what it is asking or what rule is being violated.  If there are 10 trees on the space and the Notice merely says: “Trim your Tree”, the homeowner should ask for further guidance and clarification as to which tree is being referred to.  Thus, this kind of written response should say:  “I’ve received the 7-Day Notice and am willing to comply if needed, but cannot tell from the Notice where the violation is or what you are asking.  Please clarify which park rule is being violated (or please clarify what is being asked of me)”.

 

2. I Will Comply or Have Complied with the Notice

If the Notice is clear and the homeowner confirms that there is a violation, it is

important to communicate that it will be or has been timely performed.  If a contractor or third party is hired for any purpose, be sure to provide a copy of any receipt or report which confirms the work done if available.  Offer to allow management to have a walk through or inspect for compliance.  It is vital that the work be done within 7 days if at all possible.  Remember that even if you comply with the notice, if you do not do so until after the 7 days expire the park can technically still proceed with a 60-day notice.  If you need more time to comply, such as to hire a contractor or landscaper, then request that ASAP in your response.

 

3. The Notice is Inaccurate and there are No known Violations

If the homeowner is certain there is no violation as alleged and wishes to dispute

the Notice, you should do so in writing and clearly state the basis for your objection.  This kind of response should only be made if the facts or law supports the homeowner’s position.  Be very careful before you respond in this manner, and obtain qualified legal advice first if possible.  Choosing this option could begin a negotiation with management, or could result in the service of a 60-day Notice, or another 7-Day notice.  Often management will serve multiple Notices so as appear reasonable and to create a clear “paper trail” in case they later go to court. 

Final Thoughts:

While COVID-19 legislation allows homeowners to request rent payments be deferred or evictions postponed, it does NOT include or affect 7-day Notices.  Legislation is being considered in 2021 that will hopefully deal with the problem of a homeowner finding a contractor during the pandemic, or performing repairs during 7 days.  But for now, these notices are not affected by such legislation, and must be dealt with and responded to at once.  Finally, if the park does not have any written rules or regulations it is doubtful they could ever enforce a 7-day Notice.

Your Rights Bytes #17 - Mobilehome Sale Rights and Obligations Confronting Unlawful Interference

By Bruce Stanton, GSMOL Corporate Counsel and GSMOEF Secretary

Homeowners attempting to sell their mobile or manufactured home sometimes encounter park management who fails to timely provide resale upgrade requirements or to process buyer applications.  Days drag into weeks.  Purchasers are kept in the dark about whether they are or are not park approved, and sellers hear nothing about repairs or upgrades, and then receive last-minute repair or upgrade demands just before close of escrow.  This places sellers in a pressurized situation where they feel forced to make the repairs or else lose their sale, and possibly be sued by the buyer.  In many cases these "delays" are intentionally calculated to accomplish management's goal of forcing repairs or improvements, or perhaps stopping the sale all together.  Residents want to know, and need to know what rights they have if management is unfairly blocking or delaying a sale in this manner.

We begin with the fundamental underlying premise that the Mobilehome Residency Law is a consumer protection statute, benefiting mobilehome resident "consumers" who require unique protection under the law.  Its provisions are incorporated within and deemed a part of every mobilehome lease or rental agreement (798.15 (c)).  Its provisions cannot be waived by a homeowner in any contract (798.19).  It contains definitive time deadlines which must be followed and honored by management.  If they are not, then management may be deemed to have waived the right to require certain things, as stated below.  And in the event of a willful violation of its provisions by management, a penalty of up to $2,000.00 for each such violation may be awarded by a court, or punitive damages. (798.86). 

Civil Code 798.74 provides that management "may" (not "shall") require prior approval of a mobilehome purchaser.  Approval cannot be withheld if the purchaser has financial ability to pay the rent, estimated utilities and charges of the park.  798.74 (e) ties the ability to exercise that permissive "prior approval" review process to a mandatory obligation to timely complete review of the buyer's application within 15 business days.  Management SHALL (not "may") then notify the parties of acceptance or rejection.  Failure to do so within the required 15 business days presumes, by silence, that the purchaser is qualified for residency, and would legally allow the transaction to proceed forward.  Management has every reasonable ability to conduct its review within the 15 business days.  Failure to do so could kill the transaction, and management knows this.  If management chooses not to timely exercise their right of review, then the right could be deemed waived.  Failure to provide timely approval, or a rental agreement to the buyer, which results in the loss of a sale, enables a mobilehome seller to sue the park owner for damages in an amount equal to the lost sales price.

The same is true with respect to the issue of mobilehome upgrades upon resale.  Civil Code 798.73.5 provides that management "may" require repairs or improvements upon resale.  But that ability is once again specifically conditioned upon management's compliance with a fixed time deadline.  798.73.5 states that in the case of an "in place" sale or transfer, management SHALL ( again it is stated as a mandatory duty) provide a written list summary of repairs and upgrades no later than 10 business days following receipt of a request for that information.  Typically this would be included in the "Notice of Intent to Sell" given to management by the mobilehome seller.  If management fails to comply with this mandatory "shall" requirement, then, again, management by its silence can be deemed to have waived its right to require any repairs or upgrades as a condition of sale.

The California legislature recognized the importance of these reasonable time deadlines to a mobiehome sales transaction, which like any real estate deal heavily depends upon timing and multiple conditions being met.  Any failure to perform within either of these important deadlines could result in a lost sale.  In such a case, it is park management which could and should be held liable for damages. 

So how can these rights be enforced by a mobilehome seller?  First, a selling homeowner should only hire a broker, agent, dealer or salesperson who will vigorously require park management to abide by these MRL violations.  If deadlines are not meant, they should be willing to push for compliance, or argue that management has waived its ability to require upgrades or approve a buyer.  When management refuses to comply, the seller should hire legal counsel, or file a complaint with The Department of Housing and Community Development (HCD) pursuant to the newly created "Mobilehome Residency Law Protection Program".  Knowing your rights is the important first step.  But enforcing those rights is also critical to preserving your rights as a mobilehome seller. 

Don't forget that once park management chooses to engage either of the above sale-related processes which they "may" elect to pursue, they become obligated to perform the within the time deadlines that the legislature has decreed they "shall" follow.

Ed Fund Telephone Townhall September 11 2020

 GSMOEF presents a 

TELEPHONE TOWNHALL

with

BRUCE STANTON, GSMOL Corporate Counsel

speaking on

The Impact of New State Legislation Signed by Governor Newsom on Manufactured-Home Owners

Friday, September 11, 2020

1:30 PM

This teleconference is open to all MH owners.   To make a reservation, email to Anne Anderson, a.bushnell.anderson@gmail.com with your name, park, city, and the phone number you will use to call in, and you will be sent the call-in number and code.