SENATE BILL REPORT
ESHB 995
BYHouse Committee on Housing (originally sponsored by Representatives Todd, Cantwell, Crane, Cooper, Leonard and Nutley)
Establishing a mobile home park purchase fund.
House Committe on Housing
Senate Committee on Commerce & Labor
Senate Hearing Date(s):March 26, 1987; March 31, 1987
Majority Report: Do pass as amended.
Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Lee, Sellar, Vognild, Williams.
Senate Staff:Dave Cheal (786-7576)
April 2, 1987
AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 31, 1987
BACKGROUND:
A mobile home park is a parcel of land under single ownership on which mobile or manufactured homes are located. Generally the land is rented out to tenants who own their mobile/manufactured home. There is usually a certain amount of common space and common facilities for tenants. A mobile home park may have a tenant organization to interface with the park owner. Mobile homes have traditionally provided low cost housing for elderly and low income persons.
There is some evidence that rising costs of mobile home park development and operation, plus speculative investment, have reduced the primary benefit provided by mobile or manufactured homes: moderate and low-cost housing. This implies that the sale of mobile home parks may often result in an increase in rents.
The Department of Community Development (DCD) is a department created to assist in providing financial and technical assistance to the communities of the state, to assist in improving the delivery of federal, state, and local programs, and to provide communities with access to opportunities for productive and coordinated development beneficial to the well-being of the communities and their residents. A significant portion of the department's efforts have focused on housing issues.
SUMMARY:
The legislative intent of this measure is to encourage and facilitate the conversion of mobile home parks to residential ownership, which would be accomplished primarily through private funding of mobile home park conversions (to resident owned). This is intended to maintain the affordability of housing in these resident owned parks for the low income, elderly, poor or infirm.
A mobile home park purchase fund is created in the office of the Treasurer. The Department of Community Development (DCD) is charged with administering the program.
Loans can be made to tenant organizations for conversion costs. The loan is for the minimum amount necessary to enable the organization to purchase the park, but cannot exceed 50 percent of the conversion costs. The loan term is a maximum three years; the interest rate is a competitive rate set by DCD. Loans can only be made to tenant or resident organizations in which a significant portion are low income, elderly, poor or infirm.
Eligible tenant or resident organizations are mobile home park residents who have formed a legal entity (i.e. nonprofit corporation) for the purpose of acquiring the mobile home park in which they live. It must include two thirds of the households residing in the mobile home park at the time of the request for assistance to purchase the park.
Loans may also be made to individuals to reduce the monthly housing costs for low income residents to an affordable level (30 percent of monthly income). The loan amount is for the least amount necessary to reduce the borrower's housing costs to the affordable level, but not to exceed 50 percent of the acquisition cost of the individual's interest in the mobile home park. The maximum term is 30 years; the interest rate is a competitive rate set by DCD.
The Department of Community Development must consider, among other things, local housing programs, the reasonableness of the conversions and whether it is the most efficient use of the funds. The Department must seek to distribute the funds statewide, with a goal of at least 20 percent in rural areas.
An office of mobile home affairs is created in the Department of Community Development. The office will deal with matters relating to mobile or manufactured homes, and will promote effective utilization of mobile homes.
The mobile home affairs office will provide an ombudsman service to assist in the resolution of disputes between park owners and tenants, to help access governmental services related to the health and safety of mobile home parks, and to provide technical assistance in converting mobile home parks to resident ownership.
The office is also asked to develop policies and strategies to promote utilization of mobile or manufactured homes which will enhance the supply of safe and low cost housing in the state.
A five member advisory committee composed of one representative each from mobile home manufacturers, mobile home park owners, mobile home tenants, local government and the public is established. This advisory committee is to provide input to the Department of Community Development regarding mobile home issues including mobile home landlord tenant issues.
SUMMARY OF PROPOSED SENATE AMENDMENT:
The amendment does the following: (1) Removes certain rulemaking guidance to the Department; (2) redefines individual eligibility to include consideration of net worth except for the mobile home used as a primary residence; (3) makes clear that a park owner retains full control of that portion retained in the case of a sale of part of a park; (4) removes an example of flexible loan repayment plans; (5) makes it clear that any tenant relocation plan for nonparticipating tenants is not at the expense of park owners; (6) prohibits the Office of Mobile Home Affairs from considering rent control; (7) makes several technical changes regarding the Advisory Committee to the Office of Mobile Home Affairs.
Fiscal Note: none requested
Senate Committee - Testified: Mel Gaumer, Mobile Home Owners Association; Ron Clarke, Washington Manufactured Housing Association; Stephen J. Kolcsey, WMPOA