COVID-19 Pool Closures Not Entitled To Rent Reduction

As the pandemic turns a year old, I am reminded of the anxious and urgent calls I received from mobilehome park owners and manufactured community owners over the summer, asking what they should do about the closing of common areas, pools, clubhouses, gyms, playgrounds, etc. at their mobilehome parks or manufactured housing communities. The local, state and federal guidelines were unclear and changing daily. 

My clients indicated that they were receiving pressure from residents to allow the amenities to stay open so that they could cool off in the pool, have somewhere for their kids to play outside the house, etc. but the risks involved and the concern for health and safety needed to be weighed appropriately also.  Angry residents threatened lawsuits against park owners who closed community pools and clubhouses and demanded rent reductions relating to said actions. Park owners as well as landlord and mobilehome park lawyers were forced to hopscotch the legal minefields throughout this pandemic.

This is why I want to spotlight a refreshing gem in SB 91 relating to this issue. Although most of the mobilehome park and manufactured housing communities have found safe and effective ways to reopen, which include maintaining social distances and complying with current health regulations, SB 91 includes a provision clarifying that landlords and park owners who temporarily reduce or make unavailable a service or amenity as the result of complying with a state, federal or local public health order or guideline during the pandemic, shall not be considered to have violated the rental agreement or provided different terms or conditions such as to constitute a reduction in services.  Civil Code1942.9(b).

There are a lot of other items bundled up in this new law SB 91, but I wanted to spotlight this provision that should come as a welcome clarification. Please let our mobilehome park attorney know if you have any questions about SB 91 or your responsibilities as a mobilehome park owner or manufactured community owner as we continue to get through this pandemic together. 

COVID-19 Tenant Relief Act of 2020 Notice Requirements

MOBILEHOME PARK OWNERS AND MANUFACTURED HOUSING COMMUNITY OWNERS – PLEASE TAKE NOTICE: By September 30, 2020 you need to mail or serve residents/tenants who owe rent or utilities from March 1, 2020 – August 31, 2020 with a 1179.04(a) Notice. This 1179.04(a) Notice summarizes the residents’/tenants’ rights under the COVID-19 Tenant Relief Act 2020 as it relates to nonpayment of rent and utilities during this time period.

Mobilehome Park Owners/ Manufactured Community Housing Owners are required to send this 1179.04(a) Notice only to residents who have past due rent or utilities owed during March 1, 2020 – August 31, 2020. This Notice is not required to be sent to all residents by September 30, 2020.

You will, however, need to send this 1179.04(a) Notice in the future, if any residents/tenants become late in all or part of their rent or utilities owed between September 1, 2020 – January 31, 2021, but there is no September 30, 2020 deadline to serve the Notice for this period. You are also able to serve this 1179.04(a) Notice concurrently with a 15 Day Notice for non-payment of rent/covenants, as long as it is served on or before September 30, 2020.

Also, mobilehome park owners/landlords may now send notices for failure to pay rent or utilities during March 1, 2020 – August 31, 2020 (“Protected Period”), as well as for September 1, 2020 – January 31, 2021 (“Transition Period”), but the usual 3 Day Notices to Pay Rent/Covenants or Quit are now replaced with a 15 Day Notice to Pay Rent/Covenants or Quit.

Depending on which period the amount of rent/utilities are owed: the “Protected Period” or “Transition Period”, different language will be required on each of the 15 Day Notices. Both types of 15 Day Notices require a blank Resident/Tenant 1179.02(d) Declaration of COVID-19 Related Financial Distress to be sent along with the 15 Day Notice to allow the resident/tenant to verify under penalty of perjury that they suffer a COVID-Related hardship (if applicable).

Please feel free to contact our mobilehome park attorney if you have any questions regarding the COVID-19 Tenant Relief Act 2020 or your responsibilities under this new law. Also, copies of all notices and declarations can be obtained by contacting my office.

Required Notices Due By February 1, 2019 – Mobilehome Parks (MRL)

Mobilehome Park Owners/Managers:

 

Happy New Year!  Here is your reminder that the following notices must be personally served or sent via regular mail to the homeowners/residents by February 1, 2019 to be in compliance with the Mobilehome Residency Law (“MRL”).

1.  Notice of MRL significant change:

When there has been a significant change in the California Mobilehome Residency Law (“MRL”) (we recommend every year) Park/Community management must either:

a.   Mail or personally serve a copy of the 2019 Mobilehome Residency Law to all homeowners/residents by February 1, 2019; OR

b.   Notify all homeowners/residents in writing by February 1, 2019 that there has been a significant change in the MRL and that he/she can request a copy of the updated MRL from the management at no charge.  Upon a request by a homeowner, management is required to provide a copy of the MRL to the homeowner within 7 days of the request.

 

2.  Rights & Responsibilities Notice:

Park/Community management is required to send a Notice of Rights & Responsibilities to all homeowners and residents pursuant to the MRL, California Civil Code 798.15(i) on or before February 1, 2019.  You can find the exact language required for the Notice in the MRL – Civil Code Section 798.15(i).

 

3.  CARE Notice:

If your Park/Community is a master-metered park, management shall give written notice to homeowners/residents on or before February 1, 2019 in their utility billing statements about assistance to low-income persons for utility costs available under the California Alternate Rates for Energy (CARE) program, established pursuant to Section 739.1 of the Public Utilities Code.  The notice shall include CARE information available to master-meter customers from their serving utility, to include, at a minimum: (1) the fact that CARE offers a discount on monthly gas or electric bills for qualifying low-income residents; and (2) the telephone number of the serving utility which provides CARE information and applications.  The Park/Community shall also post the notice in a conspicuous place in the clubhouse, or if there is no clubhouse, in a conspicuous public place in the Park/Community.

 

Please contact our Mobilehome Attorney in California if you have questions.

Mobilehome Owner Dies Without a Will: What to do as the Mobilehome Park Owner

If the homeowner dies without a will, then as the community owner, the situation is not any different than that described above. You might be presented with a “Small Estates Affidavit”. In the absence of that, a representative of the estate still needs to be appointed. The process is essentially the same as that described above in that a petition is filed with the court by the person who seeks appointment as the legal representative. And if that person is approved by the court, he or she will be issued “Letters of Administration” as discussed previously.

In the situation where you have actual knowledge that the resident has died, but no one has come forward on that person’s behalf, then complicated issues of the proper service of notices necessary under the MRL arise. The proper steps or action to take in such situation will depend on the particular factual circumstances involved. As a result, it is recommended that you specifically consult with your legal counsel about the proper course of conduct in this situation, so you as the owner, can protect yourself from potential liability.

The death of a resident can present many potential “traps” for the mobilehome community owner or manager and it is recommended that you consult with legal counsel to determine the proper steps to take so you can avoid unnecessary liability.

After all, particularly when it comes to legal expense, “an ounce of prevention is worth a pound of cure”.

For more information, contact Mobilehome Park Lawyer Tamara Cross today.

+TamaraCross

Renting Out Community-Owned Manufactured Homes and Complying with The Landlord Tenant Law (Part 5)

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This is part 5 of my blog series about renting out community-owned manufactured homes and complying with the landlord tenant law.

Terminating the Tenancy

Terminating a tenancy for an owner-occupied manufactured home tenancy in comparison to terminating a community-owned rental is an area that community owners commonly make mistakes. Due to the high cost of moving manufactured homes, as well as other factors, the Legislature created additional protections for evicting homeowners under the MRL. A tenancy with the homeowner/resident under the MRL may be terminated only for the following select reasons:

1. Failure to comply with a local ordinance or state law regulations related to manufactured homes within a reasonable time after notice
2. Conduct which constitutes a substantial annoyance
3. Conviction of homeowner/resident for prostitution or felony controlled substance offense committed on premises that resulted in conviction
4. Failure to comply with a reasonable rule or regulation of a community
5. Non-payment of rent or utilities

In addition, the MRL also requires that a 60-day notice to terminate possession of the premises be served (sometimes in conjunction with other types of notices) to allow the homeowner 60 days to vacate the premises and move or sell his or her manufactured home.

* For specific inquiries regarding a mobilehome law matter that you may have, you’re welcome to visit my California Manufactured Housing Community Owners legal services page.

Renting Out Community-Owned Manufactured Homes and Complying with The Landlord Tenant Law (Part 4)

This is part 4 of my blog series about renting out community-owned manufactured homes and complying with the landlord tenant law.

Ensuring the Manufactured Home is Habitable

A community-owned manufactured home tenancy creates the responsibility for the community owner not only to maintain the space, but also to ensure the inside and outside of the manufactured home is habitable for human occupation.  Ensuring that a manufactured home is habitable typically entails a few basic requirements including:

1. Make sure all fixtures work properly

2. There is hot and cold running water

3. There is no insect infestation

4. There is proper lighting and ventilation

5. There are proper electric outlets

6. There is proper waterproofing/weather protection

7. There are proper plumbing and gas facilities

8. There are proper heating facilities

9. The floors, stairways and railways are in good repair

10. The doors have deadbolts

11. There is a telephone jack

12. The windows have locks

13. All fire and other applicable codes and ordinances are complied with

There are statutory penalties imposed on landlords who fail to ensure that the community-owned rental premises is habitable for the residents.

In contrast, in an owner-occupied manufactured home tenancy regulated under the MRL, the community owner is typically responsible for the habitability of the community’s common areas only and not the home.

* For specific inquiries regarding a mobilehome law matter that you may have, you’re welcome to visit my California Manufactured Housing Community Owners legal services page.

Renting Out Community-Owned Manufactured Homes and Complying with The Landlord Tenant Law (Part 3)

This is part 3 of my blog series about renting out community-owned manufactured homes and complying with the landlord tenant law.

This blog series is intended to briefly address some differences between the typical owner-occupied manufactured home tenancies governed under the MRL and the community-owned rental tenancies governed by general landlord-tenant law. Please note that this is just a summary of some of the most common differences. Owners should consult their attorneys to ensure that they have all of the proper procedures and documents in place for both situations.

* For specific inquiries regarding a mobilehome law matter that you may have, you’re welcome to visit my California Manufactured Housing Community Owners legal services page.

Renting Out Community-Owned Manufactured Homes and Complying with The Landlord Tenant Law (Part 2)

This is part 2 of my blog series about renting out community-owned manufactured homes and complying with the landlord tenant law.

Renting can be profitable, but the community owner must understand that a different set of laws govern these community-owned rentals. Community owners are generally familiar with their responsibilities under the Mobilehome Residency Law (MRL), which applies to the typical owner-occupied manufactured home tenancy in a manufactured home community. However, community owners must also be aware of the responsibilities and liabilities that exist when renting a community-owned manufactured home, which is regulated by general landlord-tenant law and not the MRL.

In addition, the community documents presented to residents of community-owned rentals must also reflect the different laws and not reference the MRL.

* For specific inquiries regarding a mobilehome law matter that you may have, you’re welcome to visit my California Manufactured Housing Community Owners legal services page.

Renting Out Community-Owned Manufactured Homes and Complying with The Landlord Tenant Law (Part 1)

This is part 1 of my blog series about renting out community-owned manufactured homes and complying with the landlord tenant law.

In today’s economic recession, many community owners are experiencing a larger than usual accrual of community-owned manufactured homes.  This situation is due primarily to resident homeowners abandoning their manufactured homes to the community, community owners obtaining manufactured homes through warehouseman’s lien sales, or by community owners purchasing manufactured homes from distressed homeowners who are failing to pay the rent.  In any event, the community owner is left with a larger than usual inventory of community-owned, vacant manufactured homes (hereinafter referred to as “community-owned homes”).  These homes are difficult to sell in today’s market, and community owners lose space rent every month the community-owned home does not sell.  Many community owners are finding it is economically feasible to fix up the manufactured homes and rent them to non-homeowner residents (hereinafter referred to as “community-owned rentals”).

* For specific inquiries regarding a mobilehome law matter that you may have, you’re welcome to visit my California Manufactured Housing Community Owners legal services page.

The Red Flags Rule

As of June 1, 2010, mobilehome park owners, landlords and property management companies who use consumer reports in their daily operations (i.e. to screen applicants), are required to create and implement reasonable policies and procedures to identify and assist in combating Identity Theft. The policy must include reasonable steps to be taken if the user of a consumer report receives a Notice of Address Discrepancy (“Notice”) from a consumer reporting agency. This Notice alerts the user that there is an inconsistency between the information obtained from the consumer/applicant and the information on the credit report.

This new law, called the “Identity Theft Red Flags and Address Discrepancies under the Fair and Accurate Credit Transactions Act of 2003” does not specifically state the steps the community’s policy must include, but some examples of recommended policies are 1. to ask the consumer to explain the inconsistency in the report or to produce further documentation to verify if the information is consistent with the credit report information and 2. compare documents such as notices of change of address or other third-party sources.  It is highly recommended that the community’s policy be in writing and include a requirement that all Notices received and all steps taken in compliance with the policy be documented. Make sure the community’s employees/managers understand and are familiar with the policy.

* If you would like assistance in creating your policy, you’re welcome to visit my California Manufactured Housing Community Owners legal services page.