SENATE BILL REPORT

SB 5559

BYSenators Smith, Murray, Lee, Bender, Madsen, Warnke, Rasmussen, von Reichbauer, Sutherland and Gaspard

Providing remedies for mobile home park closure.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 1, 1989, March 1, 1989

Majority Report:  That Substitute Senate Bill No. 5559 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Murray, Smitherman, Warnke, Williams.

Senate Staff:Dave Cheal (786-7576)

                  March 1, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 1, 1989

BACKGROUND:

During the past two years a significant number of mobile home parks have either closed, or park owners have given the required notice that the park will close within 12 months.  The sites of these parks are being redeveloped to another use.

When this occurs, mobile home owners have a choice of either selling their mobile home, moving their mobile home to another site, or abandoning their mobile home.

The cost of moving a mobile home to another location is between $1500 and $7500 depending on the size of the mobile home and the distance it is to be moved.

The problems facing a mobile home owner in this situation are compounded if the mobile home is old or in disrepair.  Many park owners will not allow older, narrow mobile homes into their park which have the appearance of trailers rather than houses.

SUMMARY:

A park owner may not terminate the tenancy of a resident of the park until:  (1) preliminary notice is given of the proposed closure, which includes a list of the tenants' rights to have their home appraised and purchased by the landlord or relocated to another mobile home park at the landlord's expense; and (2) the park owner submits a park closure plan to a designated local government agency.

The notice to tenants must be provided three years prior to actual closure of the park.  The three-year period does not begin until the park closure plan has been subjected to a hearing and public comment by the local government agency.

The legislative authority of the county must designate the agency to hear and approve park closure plans.

The park closure plan must contain a description of available replacement housing or mobile home park spaces, an assessment of the impact of closure on the total number of available mobile home spaces in the affected community, a description of the actions taken to comply with the purchase or relocation requirements of the act, a timetable for vacating the mobile home park, and a description of all other measures taken to mitigate the impact of mobile home park closure on the residents.  A hearing shall be held by the designated local government agency upon request of a park resident or owner.

Tenants must be informed of their option to receive relocation costs in the amount of $4000 for a single-wide mobile home, or $7500 for a double-wide mobile home, or to have their mobile home purchased by the park owner.  For the purposes of the sale, value is to be determined by a mutually agreed-upon appraiser who will assess the book value of the mobile home and the cash value of all appurtenances.  The NADA Mobile Home Manufactured Housing Appraisal Guide shall be used as a guide for determining value.  Cost of the appraisal is shared equally.  The value is to be determined as of a time immediately before the notice of change in land use.

The mobile home owner or landlord may apply to the district or superior court in the county where the park is located for the purposes of selecting an appraiser or resolution of any dispute arising from this process.

EFFECT OF PROPOSED SUBSTITUTE:

Park owners have a choice of providing three years' notice of park closure or providing monetary assistance to each tenant of $4,500 for a single-wide mobile home or $7,500 for a double-wide.  After July 1, 1991, the park owner's share goes to two-thirds of the above stated amounts, if they do not give three years' notice.  Twelve month's notice must be provided in any event.  The remaining one-third of the relocation grant comes from a fund established by assessments on tenants of $10 per year.  If a landlord gives three years' notice, the entire grant is paid from the fund.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 31, 1989

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: John Jansen (pro); John Woodring (con)