HOUSE BILL REPORT

                 ESSB 5482

             As Reported By House Committee On:

            Trade, Economic Development & Housing

Title:  An act relating to mobile home parks.

Brief Description:  Defining rights of tenants in mobile home parks.

Sponsors:  Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Skratek, M. Rasmussen, Spanel, Prentice, Franklin, McAuliffe, A. Smith, Drew and von Reichbauer).

Brief History:

  Reported by House Committee on:

Trade, Economic Development & Housing, March 31, 1993, DP.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  Do pass.  Signed by 12 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Quall; Schoesler; Sheldon; Springer; and Valle.

Staff:  Charlie Gavigan (786-7340).

Background:  The Mobile Home Landlord Tenant Act regulates the relationship between the owner of a mobile home park and the tenants of the park.  Key provisions of the act require the tenant be offered a written rental agreement for a term of at least one year, require the tenant be provided with a copy of all park rules, prohibit entrance fees or exit fees, prohibit certain actions by the landlord, and specify the duties of the landlord and the tenant.  Of the other states, 32 have established Mobile Home Landlord Tenant acts.

Under current law, a landlord is authorized to terminate any tenancy without cause if at least one year's notice is provided.  In addition, a tenant may be evicted for substantial repeated violations of park rules, nonpayment of rent, conviction of a crime which threatens the health and safety of other tenants, failure to comply with state and local laws, change in land use of the park, and engaging in drug related activity.

Summary of Bill:  Modifications are made to the mobile home landlord-tenant relationship.

Modifications to the Mobile Home Landlord Tenant Act

Mobile home park rules can only be enforced against a tenant if:  (1) their purpose is to promote the convenience, safety or welfare of the residents, protect and preserve the premises from abusive use, or make a fair distribution of services and facilities that are generally available to tenants; (2) they are reasonably related to the purpose for which they are adopted; (3) they apply to all tenants in a fair manner; (4) they are not for the purpose of evading an obligation of the landlord; and (5) they are not retaliatory or discriminatory in nature. 

A mobile home park owner may no longer terminate tenancy in a mobile home park without cause.  The list of reasons for which a mobile home tenancy may be terminated is expanded.  

Door-to-door solicitation by political candidates in mobile home parks and political forums or meetings of organizations that represent the interest of tenants may not be prohibited in mobile home parks.

A tenant that sells or transfers the title of his or her mobile home and the rental agreement for the mobile home lot to another individual is required to notify the landlord within 15 days of the intended transfer.

Landlords are given the authority to patrol the park grounds to assure that tenants are complying with all codes, laws, rental agreements and park rules.

Sale of the Mobile Home Park or Individual Mobile Homes

Qualified tenant organizations, consisting of 60 percent of the tenants in a mobile home park that provide a written notice to the mobile home park owner of their intention to purchase the park, must be notified by the park owner if an agreement to purchase the park is reached with a prospective buyer.  The tenant organization has 30 days after the notice is received from the park owner to present a fully executed purchase and sale agreement to the owner along with 2 percent of the agreed purchase price.  The agreement must be as favorable to the park owner as the original agreement.  If the above conditions are met, the park owner must sell the mobile home park to the tenant organization. 

The tenants must be ready to close the sale under the same terms as contained in the original purchase agreement.  Conditions under which a park owner may sell to another buyer are outlined.  In the event the park owner violates the notice provisions of the act and proceeds with the sale of the park, the sale may be voided by a Superior Court.

The Department of Community Development may make loans from the mobile home park purchase fund to resident organizations for the financing of park conversion costs if a significant portion of the residents are low-income or infirm, or to low-income residents of mobile home parks converted or planning to be converted to resident ownership.  Additional loan eligibility requirements are outlined.  Loans may be made for terms of up to 30 years.  The department shall establish the rate of interest to be paid on the loans. The department must obtain security for the loans. 

The Department of Community Development may provide technical assistance to resident organizations desiring to convert a mobile home park to resident ownership.

Mobile home park owners are given the right of first refusal on mobile homes that are put up for sale in their parks.  The mobile home park owner has 10 days from the date of the home owner's notice of receiving a purchase agreement to provide the mobile home owner with a fully executed purchase and sale agreement and a down payment equal to 5 percent of the agreed purchase price.  The mobile home owner must be ready to close the sale under the same terms of the original purchase agreement.

The sale or transfer of mobile home parks or mobile homes to relatives are excluded from the right of first refusal provisions.

Fiscal Note:  Requested March 29, 1993.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This is a compromise worked out between park owners and tenants to address mobile home landlord-tenant issues.  Agreement has been reached on such issues as removing problem tenants from the park, eliminating no-cause evictions with 12 months notice, allowing tenants to purchase parks when the owner is selling to other than a relative, and allowing park owners to purchase mobile homes for sale by the tenant to other than relatives.  This bill will improve the relationship between good tenants and park owners, and will better enable the few problem tenants and the few problem park owners to be addressed more effectively.

Testimony Against:  None.

Witnesses:  Senator Sylvia Skratek, prime sponsor (supports); Arnold Livingston, Senior Lobby (supports); Nikki Phillips-Baker, Mobile Home Owners of America (supports); Morton Clark, Washington Mobile Park Owners (supports); and John Woodring, Washington Mobile Park Owners (supports).