HOUSE BILL REPORT

ESHB 2136

As Amended by the Senate

BYHouse Committee on Housing (originally sponsored by Representatives Cole, Rust, Beck, Nutley, Patrick, Todd, Wood, Crane, Walk, G. Fisher, Nelson, Cantwell, Brekke, Sprenkle, Anderson, Holland, Leonard and Winsley)

Providing mobile home relocation assistance.

House Committe on Housing

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (6)

      Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Winsley, Ranking Republican Member, Anderson, Rector and Todd.

Minority Report:  Without recommendation.  (3)

      Signed by Representatives Ballard, Inslee and Padden.

House Staff:Charlie Gavigan (786-7340)

Rereferred House Committee on Appropriations

Majority Report:  The substitute bill by Committee on Housing as amended by Committee on Appropriations be substituted therefor and the substitute bill as amended do pass.  (19)

      Signed by Representatives Locke, Chair; Grant, Vice Chair;H. Sommers, Vice Chair; Silver, Ranking Minority Member; Belcher, Brekke, Bristow, Brough, Dorn, Ebersole, Hine, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry

Minority Report:  Do not pass.  (3)

      Signed by Representatives Bowman, McLean and Padden

House Staff:      Susan Nakagawa (786-7136)

AS PASSED HOUSE MARCH 15, 1989

BACKGROUND:

State law requires that a mobile home park-owner give 12 months notice to tenants of the mobile home park when the park- owner is changing the use of the real property to other than a mobile home park.

SUMMARY:

The park-owner (landlord) must give tenants 12 months notice to vacate the mobile home park when the park-owner is changing the use of the mobile home park, except for King and Snohomish counties.  In King and Snohomish counties, 24 months notice must be given prior to July 1, 1991.

All affected park tenants are provided with monetary relocation assistance when they relocate due to the closing of the park. The relocation is generally $4,500 for a single-wide home and $7,500 for a double-wide home. Tenants who are not low income, defined as annual income that is 80 percent or less of the median income in the county, will receive a reduced amount.

Relocation assistance will be paid from three sources:  (1) the park-owner;  (2) the tenants, through a mobile home park relocation fund capitalized by an annual $10 fee on all mobile homes that are located in a mobile home park, and collected at the same time the fee for the Office of Mobile Home Affairs is collected; and (3)  the state, through a tenant relocation assistance account subject to a general fund appropriation.

If the tenant relocates on or prior to July 1, 1991, the payment of relocation assistance shall be equally shared by the park-owner, the tenants' fund, and the state account.  If the tenant relocates after July 1, 1991, the payment of relocation assistance will be shared as follows:  (1) the park-owner will pay $500 for a single-wide home or $1,000 for a double-wide home; (2) the tenants' fund will pay $2,500 for a single-wide home or $4,000 for a double-wide home; and (3) the state account will pay $1,500 for a single-wide home or $2,500 for a double-wide home.  The state account's share will only be paid to tenants who are low income.

The director of the Department of Community Development (DCD) will collect the landlord's portion of the relocation assistance.  The director will also manage the tenants' fund and the state account, and approve expenditures from these.  Public or private entities, with the approval of the director of DCD, can loan money to the tenants' fund.

In addition to notifying the tenant of the park closure, the park- owner must notify DCD and record the notice in the county real property records.  The park-owner must also post a sign at all entrances to the park disclosing that the park is being closed.

The relocation assistance is available to all tenants who move their mobile home out of the park on or after the effective date of this act.  The requirements regarding notifying DCD, recording the notice of park closure, and posting a sign at all entrances to the park apply to park-owners who gave notice prior to the effective date of this act and all mobile homes have not been relocated.

The tenant may waive any of his or her rights to relocation assistance, provided the tenant's attorney approves the waiver in writing.

EFFECT OF SENATE AMENDMENTS:  The Senate striking amendment changes the way relocation assistance is paid as follows:  (1) no state funds are used to pay relocation assistance; (2) all tenants assisted receive $4500 for a single-wide home or $7500 for a double-wide home; (3) the parkowner pays the full amount of relocation assistance on tenant relocations before July 1, 1991, except that when notice of the park closure was given prior to April 1, 1989, relocation assistance is required to be paid only if the tenant is low-income; and (4) the parkowner pays one-third and the tenant fund pays two-thirds of the relocation assistance on tenant relocations after June 30, 1991, except that when the parkowner gives 24 months notice after July 1, 1992, the parkowner pays $500 for a single-wide or $1000 for a double-wide (and the tenant fund pays the remainder).

The Senate striking amendment removes the additional notice requirement for King and Snohomish counties (24 months rather than 12 months), and requires that the notice period be 18 months for park closure notices given within six months after the effective date of the act.

The striking amendment also:  (1) has the county treasurers collect the annual fee for the tenant fund; (2) requires parkowners, on all new tenancies, to covenant that the park will not be closed within three years or to provide the tenant with a statement that the park may be closed at any time subject to the statutory notice requirements; and (3) makes other technical and procedural changes.

Appropriation:    (Housing) $2,250,000 is appropriated from the general fund to the tenant relocation Assistance Account for the biennium ending June 30, 1991.

Fiscal Note:      Requested March 7, 1989.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    (Housing) Bill Reams, King County Council; Paul Barden, King County Council; Henry Ford, Washington Mobile Towing Association.

(Appropriations) None Presented.

House Committee - Testified Against:      (Housing) Fred Brune and Theresa Bosler, Washington Mobile Park Owners Association; Steve Hare, owner, Mobile Home Park.

(Appropriations) None Presented.

House Committee - Testimony For:    (Housing) Private land use changes and private development are causing hundreds of tenants in mobile home parks to face eviction because the park is closing. Many of these people are low income and elderly, and many of the homes are older homes, which are difficult to find spaces for.  Relocating a mobile home can cost thousands of dollars. Equity that has built up on the mobile home is often lost once the home must be relocated.  Since the person making the land use change benefits monetarily from the change, and since the relocation costs should be part of the development costs just as costs to clear any property are considered part of the development costs, relocation assistance should be provided to tenants.

(Appropriations) None Presented.

House Committee - Testimony Against:      (Housing) It is not right to interfere with a property owner's right to sell or develop his or her property.  Requiring relocation assistance would reduce the equity the property owner has built up in his or her property.  The tenant entered into a contract (rental agreement) with the clear understanding that the contract allows the park-owner to evict the tenant because of a change in the use of the park after giving the tenant 12 months notice.

(Appropriations) None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 90; Nays 8

Voting Nay: Representatives Day, Fuhrman, Hargrove, Inslee, Jesernig, Padden, Rector and Wolfe