H-4305.1  _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 2306

          _______________________________________________

 

State of Washington      56th Legislature     2000 Regular Session

 

By House Committee on Economic Development, Housing & Trade (originally sponsored by Representatives Van Luven, Kastama, Veloria, Boldt, Kenney, McDonald, Eickmeyer, Radcliff, Ballasiotes, Miloscia, K. Schmidt, Haigh, Skinner, Hankins, Wolfe and Ruderman)

 

Read first time 01/25/2000.  Referred to Committee on .

Making mobile home parks available.


    AN ACT Relating to mobile home parks; amending RCW 59.22.039, 59.23.025, and 59.23.030; adding a new section to chapter 59.20 RCW; adding new sections to chapter 35.63 RCW; adding new sections to chapter 35A.63 RCW; adding new sections to chapter 36.70 RCW; adding a new section to chapter 36.70B RCW; adding a new section to chapter 82.02 RCW; adding a new section to chapter 84.52 RCW; and creating new sections.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    NEW SECTION.  Sec. 1.  The legislature finds that manufactured homes and mobile homes provide a source of affordable housing for many residents in the state of Washington.  The legislature further finds that many mobile home park residents are facing development pressures where mobile home park owners are converting their mobile home parks to other uses.  The legislature further finds that closure of these mobile home parks causes the displacement of mobile home residents, many of which are senior citizens.

    It is the intent of the legislature to establish incentives designed to preserve existing mobile home parks and to assist in the development of additional mobile home parks by nonprofit organizations and for-profit corporations.

 

              PART I‑‑Department Technical Assistance

 

    Sec. 2.  RCW 59.22.039 and 1993 c 66 s 14 are each amended to read as follows:

    (1) The department may provide technical assistance to resident organizations who wish to convert the mobile home park in which they reside to resident ownership.  Technical assistance does not include details connected with the sale or conversion of a mobile home park which would require the department to act in a representative capacity, or the drafting of documents affecting legal or property rights of the parties by the department.

    (2) The department may provide technical assistance to nonprofit organizations to assist in the development of new mobile home parks.  Technical assistance does not include details connected with the acquisition of property which would require the department to act in a representative capacity, or the drafting of documents affecting legal or property rights of the parties by the department.

 

             PART II‑‑Consumer Protection Application

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 59.20 RCW to read as follows:

    The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.  A violation of this chapter is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW.  Civil actions against a party for violations under chapter 19.86 RCW may only be instituted by the office of the attorney general.

 

              PART III‑‑Land Development Regulations

 

    NEW SECTION.  Sec. 4.  A new section is added to chapter 35.63 RCW to read as follows:

    Each city that plans and zones under this chapter must, not later than December 31, 2000, adopt an ordinance providing that no project permit may be issued for converting a mobile home park to another use until all mobile homes in the park have been relocated to other locations or demolished.  For purposes of this section, the term "mobile home park" has the meaning set forth in RCW 59.20.030 and the term "project permit" has the meaning set forth in RCW 36.70B.020.

 

    NEW SECTION.  Sec. 5.  A new section is added to chapter 35A.63 RCW to read as follows:

    Each code city that plans and zones under this chapter must, not later than December 31, 2000, adopt an ordinance providing that no project permit may be issued for converting a mobile home park to another use until all mobile homes in the park have been relocated to other locations or demolished.  For purposes of this section, the term "mobile home park" has the meaning set forth in RCW 59.20.030 and the term "project permit" has the meaning set forth in RCW 36.70B.020.

 

    NEW SECTION.  Sec. 6.  A new section is added to chapter 36.70 RCW to read as follows:

    Each county planning under this chapter must, not later than December 31, 2000, incorporate in their development regulations, zoning regulations, or official controls a requirement that no project permit may be issued for converting a mobile home park to another use until all mobile homes in the park have been relocated to other locations or demolished.  For purposes of this section, the term "mobile home park" has the meaning set forth in RCW 59.20.030 and the term "project permit" has the meaning set forth in RCW 36.70B.020.

 

    NEW SECTION.  Sec. 7.  A new section is added to chapter 36.70B RCW to read as follows:

    No project permit may be issued for converting a mobile home park to another use until all mobile homes in the park have been relocated to other locations or demolished.  For purposes of this section, the term "mobile home park" has the same meaning as set forth in RCW 59.20.030.

 

    NEW SECTION.  Sec. 8.  A new section is added to chapter 35.63 RCW to read as follows:

    (1) Each city that plans and zones under this chapter must, not later than December 31, 2000, adopt an ordinance or ordinances that:

    (a) Provides for an adequate supply of land that is zoned for the placement of mobile home parks due to increased demand for mobile home parks or as the result of the conversion of existing mobile home parks to another use;

    (b) Prohibits a change in the zoning classification of land for the placement of mobile home parks for a period of at least thirty years after the date a project permit is issued for the construction of a mobile home park; and

    (c) Provides for an expedited permit process for the development of mobile home parks. 

    (2) For the purposes of this section, the term "mobile home park" has the meaning set forth in RCW 59.20.030.

 

    NEW SECTION.  Sec. 9.  A new section is added to chapter 35A.63 RCW to read as follows:

    (1) Each code city that plans and zones under this chapter must, not later than December 31, 2000, adopt an ordinance or ordinances that:

    (a) Provides for an adequate supply of land that is zoned for the placement of mobile home parks due to increased demand for mobile home parks or as the result of the conversion of existing mobile home parks to another use;

    (b) Prohibits a change in the zoning classification of land for the placement of mobile home parks for a period of at least thirty years after the date a project permit is issued for the construction of a mobile home park; and

    (c) Provides for an expedited permit process for the development of mobile home parks. 

    (2) For the purposes of this section, the term "mobile home park" has the meaning set forth in RCW 59.20.030.

 

    NEW SECTION.  Sec. 10.  A new section is added to chapter 36.70 RCW to read as follows:

    (1) Each county that plans and zones under this chapter must, not later than December 31, 2000, adopt an ordinance or ordinances that:

    (a) Provides for an adequate supply of land that is zoned for the placement of mobile home parks due to increased demand for mobile home parks or as the result of the conversion of existing mobile home parks to another use;

    (b) Prohibits a change in the zoning classification of land for the placement of mobile home parks for a period of at least thirty years after the date a project permit is issued for the construction of a mobile home park; and

    (c) Provides for an expedited permit process for the development of mobile home parks. 

    (2) For the purposes of this section, the term "mobile home park" has the meaning set forth in RCW 59.20.030.

 

    NEW SECTION.  Sec. 11.  A new section is added to chapter 82.02 RCW to read as follows:

    A person that develops a mobile home park in response to the closure of an existing mobile home park with an equal number of mobile home spaces shall not be required to pay an impact fee under RCW 82.02.050 through 82.02.090 for public facilities or system improvements.  As used in this section, "mobile home park" has the same meaning as in RCW 59.20.030.

 

                  PART IV‑‑Mobile Home Financing

 

    NEW SECTION.  Sec. 12.  The legislature recognizes, as provided in Article XI, section 1 of the state Constitution, that it is the paramount duty of the state to make ample provision for the education of all children residing in this state.  Each year, the state property tax levy generates considerably less than one-half of the money that the legislature has appropriated for basic education that year, which is about one-quarter of the money the legislature has appropriated for all K-12 education purposes that year.  Allowing a diversion of a small portion of the state property tax levy for purposes provided in section 13 of this act does not alter or limit the paramount duty of the state to make ample provision for education of all children residing in the state.

 

    NEW SECTION.  Sec. 13.  A new section is added to chapter 84.52 RCW to read as follows:

    (1) The legislative authority of a county or city may impose a regular property tax levy upon each eligible improvement within the county or city.  The rate of the levy for each eligible improvement is equal to one hundred percent of the state equalized levy.  The levy for a particular eligible improvement expires after a period of five years.

    (2) The levy under this section shall be credited against the levy for the state upon each eligible improvement.

    (3) The revenue from the levy under this section shall:  (a) Be used solely for either mobile home relocation assistance or for the construction of mobile home parks; and (b) constitute the state's contribution toward either mobile home relocation assistance costs or mobile home park construction costs.

    (4) The definitions in this subsection apply for the purposes of this section:

    (a) "Eligible improvement" means a building or structure that is constructed on land where a change of use has occurred;

    (b) "Mobile home park" has the same meaning as in RCW 59.20.030;

    (c) "State levy rate" means the rate of the state levy adjusted to the state equalization value under RCW 84.52.065;

    (d) "Change of use" means land where the county or city has issued a project permit that authorizes the conversion of a mobile home park to another use;

    (e) "Project permit" has the same meaning as in RCW 36.70B.020.

    (5) The tax imposed under subsection (1) of this section shall not be included as part of the calculation under RCW 84.52.043.

 

                  PART V‑‑Right of First Refusal

 

    Sec. 14.  RCW 59.23.025 and 1993 c 66 s 5 are each amended to read as follows:

    (1) If notice of a desire to purchase has been given under RCW 59.23.015, a park owner shall notify the qualified tenant organization that an agreement to purchase and sell has been reached and the terms of the agreement, including the availability and terms of seller financing, before closing a sale with any other person or entity.  If, within ((thirty)) ninety days after the actual notice has been received, the qualified tenant organization tenders to the park owner an amount equal to two percent of the agreed purchase price, ((refundable only according to this chapter)) which is refundable if the qualified tenant organization is not able to obtain financing for the purchase of the mobile home park, together with a fully executed purchase and sale agreement at least as favorable to the park owner as the original agreement, the mobile home park owner must sell the mobile home park to the qualified tenant organization.  The tenant organization must then close the sale on the same terms as outlined in the original agreement between the park owner and the prospective purchaser.  In the case of seller financing, a mobile home park owner may decline to sell the mobile home park to the qualified tenant organization if, based on reasonable and objective evidence, to do so would present a greater financial risk to the seller than would selling on the same terms to the original offeror.

    If the qualified tenant organization fails to perform under the terms of the agreement the owner may proceed with the sale to any other party at these terms.  If the park owner thereafter elects to accept an offer at a price lower than the price specified in the notice, the homeowners will have an additional ten days to meet the price and terms and conditions of this lower offer by executing a contract.  If the qualified tenant organization fails to perform following two such opportunities, the park owner shall be free for a period of twenty-four months to execute a sale of the park to any other party.

    A mobile home park owner who enters into a signed agreement to sell or transfer the ownership of the mobile home park to a relative or a legal entity composed of relatives or established for the benefit of relatives of the mobile home park owner, who signs an agreement stating the intention to maintain the property as a mobile home park is exempted from the requirements of this section and RCW 59.23.030.

 

    Sec. 15.  RCW 59.23.030 and 1993 c 66 s 6 are each amended to read as follows:

    Failure on the part of a mobile home park owner to give notice as required by this chapter renders a sale of the mobile home park that occurs within ((thirty)) ninety days of the time the qualified tenant organization knows or has reason to know that a violation of the notice provisions of RCW 59.23.015 has occurred, voidable upon application to superior court after notice and hearing.  If the court determines that the notice provisions of this chapter have been violated, the court shall issue an order setting aside the improper sale.  In an action brought under this section, the court shall award the prevailing party attorneys' fees and costs.  For the purposes of this section, a "prevailing party" includes any third party purchaser who appears and successfully defends his or her interest.

 

    NEW SECTION.  Sec. 16.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

    NEW SECTION.  Sec. 17.  Part headings used in this act are not any part of the law.

 


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