HOUSE BILL REPORT

HB 2136

BYRepresentatives 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 REPORTED BY COMMITTEE ON APPROPRIATIONS MARCH 5, 1989

BACKGROUND:

State law requires that mobile home park-owners 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:

SUBSTITUTE BILL:  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 to vacate must be given on all park closures 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 tax assessment on all mobile homes that are classified as personal property; and (3)  the state, through a tenant relocation assistance account capitalized by a general fund appropriation ($2 million for the biennium ending June 30, 1991).

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 not be paid to tenants who are not 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.

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

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill substantially modifies the relocation assistance provisions in the original bill.  The original bill required that for relocations prior to January 1, 1992, a park-owner must provide two years notice and pay the entire cost of relocation assistance. The relocation assistance in the original bill was the lesser of the actual cost to move the mobile home or $2,000 for a single-wide home or $3,000 for a double-wide home. The original bill required that for relocations on or after January 1, 1992, the notice requirement was six months and relocation assistance would be paid jointly by tenants (through an annual tax on mobile homes) and park-owners ($500 per single-wide home and $800 per double-wide per relocated mobile home).

The substitute bill removes these provisions and (1) requires one year notice except for King and Snohomish counties, where two years notice must be given through July 1, 1991; (2) provides relocation assistance of $4,500 for single-wide homes and $7,500 for double-wide homes, although tenants who are not low income receive a lessor amount; and (3) requires the park-owner, the tenants, and the state to all share the relocation burden, although the percentages change over time.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS: The $2,250,000 general fund appropriation for the tenant relocation assistance account is deleted.

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.