SENATE BILL REPORT

                   SB 6687

              As Reported By Senate Committee On:

Financial Institutions, Insurance & Housing, February 5, 1998

Title:  An act relating to mobile home park landlord‑tenant relations.

Brief Description:  Regulating mobile home park landlord‑tenant relations.

Sponsors:  Senators Prentice, Winsley, Hale, Kline, Wood and Finkbeiner.

Brief History:

Committee Activity:  Financial Institutions, Insurance & Housing:  2/3/98, 2/5/98 [DPS].

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, INSURANCE & HOUSING

Majority Report:  That Substitute Senate Bill No. 6687 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Winsley, Chair; Benton, Vice Chair; Hale, Kline and Prentice.

Staff:  Dave Cheal (786-7576)

Background:  There is no accurate and comprehensive list of mobile home parks compiled by any government agency.  There is no requirement that park owners or managers have any particular training or familiarity with the Mobile Home Landlord Tenant Act.  Tenants often have trouble communicating with out-of-state park owners.

A tenant may be evicted from a mobile home park only for the reasons stated in the statute.

The Washington State Supreme Court has determined that the Consumer Protection Act does not apply to the business of being a landlord.  The case involved an apartment rental. 

Summary of Substitute Bill:  Mobile home parks owned by out-of-state entities must register with the Department of Community, Trade, and Economic Development.  Registration includes an affidavit that the owner of the park has read and is familiar with the Mobile Home Landlord-Tenant Act, and has determined that the resident manager knows and understands the provisions of the act.

Enforcement power for the registration requirement is given to the department.  Residents are given a right of action to enforce this obligation. 

Remaining references to evictions without cause are removed. 

The Consumer Protection Act is made applicable to the Mobile Home Landlord-Tenant Act.  Anyone suffering damages from a violation of the act is entitled to the remedies of enhanced damages and attorney=s fees.  The Attorney General also has authority to bring actions for violation of the act. 

Substitute Bill Compared to Original Bill:  The registration requirement is limited to parks owned by out-of-state entities.

The five-year lease requirement, guest fee, and security deposit provisions are removed.

Appropriation:  None.

Fiscal Note:  Requested.

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

Testimony For:  A few park owners flagrantly violate the Mobile Home Landlord-Tenant Act to the great detriment of tenants who cannot afford to move.  The Consumer Protection Act is well suited to this type of problem because individual violators can be dealt with without passing onerous regulations affecting all parks.

Registration and an oath that owners and managers are familiar with the legal requirements of running a park is a good first step toward compliance.  Out-of-state owners are sometimes hard to find.  Registration would make it easier.

Testimony Against:  Registration will be expensive and will not accomplish anything.  Registration is a pre-cursor to licensing.  A five-year lease requirement will cause higher rents than a one-year lease. 

Interest on security deposits will cost more to calculate than tenants will receive in interest payments.

The Consumer Protection Act should not be applied to landlord-tenant matters because it would subject landlords to oppressive lawsuits.

Testified:  PRO:  Majken Ryherd Keira, WA Low-Income Housing Congress; Shirley Croy, senior park; Bruce Reeves, Senior Citizen Lobby; Don Russell, Ernie Scott, R. Bishop, MHOA; CON:  John Woodring, MHCW; Ken Spencer, Martin Faveluke; Lois Gaddy, MHCW.