SENATE BILL REPORT

SSB 5787

BYSenate Committee on Commerce & Labor (originally sponsored by Senators Warnke and Smitherman)

Creating provisions for abandoned mobile homes located in trailer parks.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 18, 1987; February 20, 1987

Majority Report:  That Substitute Senate Bill No. 5787 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Cantu, Lee, Sellar, Vognild, Wojahn.

Senate Staff:Dave Cheal (786-7576)

                  March 12, 1987

AS PASSED SENATE, MARCH 11, 1987

BACKGROUND:

Mobile homes are sometimes abandoned by owners in mobile home parks.  This creates a problem for the mobile home park owner because rights with respect to that property are unclear.  There may be a mortgage on the mobile home and rights of the mortgage holder have to be taken into account.  Meanwhile, the rent is not being paid and revenue from that park space is lost.  The mobile home may also deteriorate rapidly and the park owner has the choice of watching an eyesore develop in the park or spending further resources to maintain it himself. 

SUMMARY:

The conditions constituting an abandonment are described.  There must be a default on rental payments accompanied by an apparent physical abandonment of the premises by the tenant.  The landlord must give written notice of these facts to a law enforcement officer who has the responsibility of obtaining the last known name and address of the registered and legal owners of the mobile home from the Department of Licensing and supplying them to the landlord.  The landlord must give notice to that address stating the consequences of inaction on the part of the owner, that the mobile home is subject to sale. 

Following an abandonment, a mobile home park owner is given the rights of a secured party under Article IX of the Uniform Commercial Code.  This allows the landlord to take control of the mobile home and dispose of it as also prescribed by the Uniform Commercial Code.  Mobile home owners have a right of redemption up to the time of sale, and purchasers have a clear title.

Landlords are required to notify secured parties (e.g., mortgage lenders) of an abandonment before they are authorized to pursue the remedies provided.  From the time notice is given a landlord has first claim on proceeds of a sale of the mobile home for past due rent up to the time of sale.

Mortgage holders retain priority for all other purposes.

Landlord's lien rights are provided under the personal property lien rights statute, Chapter 60.10 RCW, which gives purchasers clear title and debtors, i.e., mobile home owners, redemption rights up to the time of sale.

Fiscal Note:      none requested

Senate Committee - Testified: Ron Clarke, Washington Manufactured Housing Association; John Woodring, Washington Mobile Park Owners Association; Gary T. McFadden, Washington Mobile Park Owners; John Jensen