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What are the facts about this conversion ... and what are opinions or rumors?
The following is the Author's Opinion:
Early in any real estate conversion, most of the facts are dictated by state law and county ordinances. Once a property owner decides to do a conversion (regardless of whether it's a mobile home park or a condominium), his or her legal representatives present the "facts" of the conversion to the residents.
Since these facts are coming from a legal entity and based on legal statutes, they have to be true representations of the law. Anything Gilchrist & Rutter puts in writing can be considered "facts."
However, Gilchrist & Rutter represents the owner and their primary concern is putting together a conversion that is advantageous to the owner, within the legal constraints of the statutes. They do NOT represent the residents, nor is it their job to make sure our interests are handled advantageously.The residents involved with a conversion need to have their own representation who thoroughly understands the statutes, the financial and legal environment, the local real estate market, the nuances of mobile home park conversions and the specifics of the demographic make-up of the park residents.
Neither the Owners nor Gilchrist & Rutter are the "enemy." They are simply a very well-informed and prepared participant in this process. We need to be equally informed and prepared and we need to be prepared to negotiate a win-win process that benefits both the owners and the park residents.
End of opinion ... now it's your turn to add your opinions ... Joyce Wycoff
(Anonymous comments will be accepted only if they add to the rational discussion of this process. On the whole, I believe that people should be willing to put their name on what they say but there have been some usage issues so anonymous comments will be considered as long as they are respectful of all parties involved.)
Legal Background
State Law - as you might imagine, there is a lot of state law. This page gives you an overview of the codes. You can click on any code to pull up the relevant code.
The relevant code for us is Government Code - Gov.
The relevant title is TITLE 7. PLANNING AND LAND USE [65000 - 66499.58]
The relevant division is DIVISION 2: SUBDIVISIONS
The relevant chapter is CHAPTER 2: MAPS
The primary dispute area is 66427.5 d which refers to the survey. Printed here for ease
of reading:
(d) (1) The subdivider shall obtain a survey of support of residents of the mobilehome park for the proposed conversion.
(2) The survey of support shall be conducted in accordance with an agreement between the subdivider and a resident homeowners’ association, if any, that is independent of the subdivider or mobilehome park owner.
NOTE: The survey used in the Mesa Dunes conversion comes directly from the California Department of Housing and Community Development and is the same one they use as part of the application process for MPROP (Mobilehome Park Resident Ownership Program) Funds for lower-income purchasers. Some people think this survey is confusing but it was used as a way to be "independent of the subdivider or mobilehome park owner."
Here is the survey from HCD:
PLEASE CHECK ONE BOX FOR YOUR HOUSEHOLD:
[ ] Yes, I support conversion of the park, but do not intend to buy an interest in the park.
[ ] Yes, I support conversion of the park and intend to purchase my space or membership/share as follows.
a. I think I will be able to obtain, and intend to apply for bank or other financing. [ ]
b. I intend to purchase my interest with cash. [ ]
c. I think I am a lower-income resident, and may need MPROP financing to assist in my purchase. [ ]
[ ] No, I do not support the conversion.
[ ] I decline to state my opinion at this time.
I understand that this form does not constitute an offer to sell at a specific price, nor is it a commitment to purchase an interest in the mobilehome park. It is only an indication of support or non-support for the park conversion.
(3) The survey shall be obtained pursuant to a written ballot.
(4) The survey shall be conducted so that each occupied mobilehome space has one vote.
(5) The results of the survey shall be submitted to the local agency upon the filing of the tentative or parcel map, to be considered as part of the subdivision map hearing prescribed by subdivision (e).
(e) The subdivider shall be subject to a hearing by a legislative body or advisory agency, which is authorized by local ordinance to approve, conditionally approve, or disapprove the map. The scope of the hearing shall be limited to the issue of compliance with this section.
(f) The subdivider shall be required to avoid the economic displacement of all nonpurchasing residents in accordance with the following:
(1) As to nonpurchasing residents who are not lower income households, as defined in Section 50079.5 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent to market levels, as defined in an appraisal conducted in accordance with nationally recognized professional appraisal standards, in equal annual increases over a four-year period.
(2) As to nonpurchasing residents who are lower income households, as defined in Section 50079.5 of the Health and Safety Code, the monthly rent, including any applicable fees or charges for use of any preconversion amenities, may increase from the preconversion rent by an amount equal to the average monthly increase in rent in the four years immediately preceding the conversion, except that in no event shall the monthly rent be increased by an amount greater than the average monthly percentage increase in the Consumer Price Index for the most recently reported period.
(Amended by Stats. 2002, Ch. 1143, Sec. 1. Effective January 1, 2003.)NOTE: In the Mesa Dunes conversion, the owner has agreed to allow all residents to maintain their current leases with its terms and conditions as long as the resident desires. Residents who are not on leases and wish to be should see Joanne Mancarella.
2009 Mobilehome Residency Law
This is available as a paper handout from the office.
San Luis County Ordinance covering mobile home conversions
SLO Condominium Conversions approved 2/10/2009, Ordinance 3173
This is interesting reading, however it is apparently not enforceable due to challenges to city and county ordinances in other places within the state.
Amendment to Senate Bill 510
Opposition by legal firm Hart, King & Coldren
Mobile Home Park Space Rent Stabilization - Chapter 5.44 San Luis Obispo County
Author Affiliation: This blog does not represent legal opinion, park management, park ownership, the Homeowners' Association or any other person or entity other than the author (See About). However, information, ideas, or opinions from all of the above are welcome.
