HOUSE BILL REPORT

HB 2272

As Amended by the Senate

BYRepresentatives Leonard, Padden, Todd, Winsley, Anderson, Nutley, Ballard, Rector, May, Inslee, Wolfe, Prentice, D. Sommers, Crane and Wood

Changing provisions relating to mobile home landlords.

House Committe on Housing

Majority Report:  Do pass.  (7)

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

House Staff:Bill Lynch (786-7092)

AS PASSED HOUSE FEBRUARY 6, 1990

BACKGROUND:

Landlords of mobile home parks may not offer a mobile home lot for rent to anyone without offering a written rental agreement for a term of at least one year.  The written rental agreement must contain certain information specified in statute, but there is no requirement for the tenant to furnish the name and address of any party who has a secured interest in the mobile home.  A party with a security interest in the mobile home is generally the lending institution that helped finance the purchase of the mobile home. There is also no requirement for the tenant to provide a forwarding address or the name and address of a person likely to know the whereabouts of the tenant in the case of an emergency or an abandonment of the mobile home.

It is suggested that requiring the tenant to identify any secured parties in the rental agreement makes it easier to notify secured parties of their responsibilities to the mobile home park.  It is similarly suggested that requiring the tenant to provide a forwarding address makes it easier to provide notice to the tenant or the tenant's family in the event of an emergency or before abandonment proceedings are initiated.

Under the Mobile Home Landlord-Tenant Act, a party with a secured interest in a mobile home is liable to the landlord for rent for occupancy of the mobile home space after the secured party has taken possession of the mobile home pursuant to the Uniform Commercial Code.  A secured party, however, may have the right to take possession of the mobile home weeks or months before actually taking possession.  It is suggested that a secured party's liability to the landlord for rent should begin at the time the secured party is entitled to possession of the mobile home under the Uniform Commercial Code.

A landlord is entitled to a statutory lien for rent against any personal property of the tenant that was kept at the rented premises by the tenant.  The statutory lien is for up two months rent, and must be enforced by the landlord within two months of a default in payment of rent by the tenant or the lien expires. Landlords may be less likely to initiate an unlawful detainer action against a tenant who is delinquent in rent if the landlord's lien for rent is extended beyond two months.

SUMMARY:

The written rental agreement between a landlord and a tenant of a mobile home park must contain: (1) the name and address of any party who has a secured interest in the mobile home; and (2) a forwarding address of the tenant or the name and address of someone likely to know the whereabouts of the tenant in the event of an emergency or an abandonment of the mobile home.

A person with a security interest in a mobile home, who has a right to possession of the mobile home under the Uniform Commercial Code, is liable to the landlord for rent and other reasonable expenses from the date the secured party receives notice of default from the landlord. The notice must be in writing and sent by certified mail, return receipt requested.  "Reasonable expenses" is defined as any routine maintenance and utility charges for which the tenant is liable under the rental agreement.  The secured party is liable only for those expenses which are incurred after the receipt of the written notice.

Any rent or other reasonable expenses owed by the secured party must be paid to the landlord before the mobile home may be removed from the mobile home park.

The relationship between a landlord and a secured party who is liable to the landlord for rent and reasonable expenses is governed by the rental agreement previously signed by the tenant of the mobile home unless otherwise agreed.  The secured party and the landlord are not required to execute a new rental agreement.  The rental agreement, however, converts to a month-to-month tenancy which either party may terminate upon giving 30 days written notice.  No waiver is required to convert the rental agreement to a month-to-month tenancy.  Nothing which governs the relationship between the landlord and the secured party acts as a waiver of any rights of the tenant.

The landlord's lien for rent is extended from two months to four months for tenants who rent a mobile home lot in a mobile home park.  The duration of the landlord's lien for rent is increased from two months to four months for tenants who rent a mobile home lot in a mobile home park.

EFFECT OF SENATE AMENDMENTS:  Language is added to specify the information that must be contained in the notice of default that is sent by the landlord to the secured party.  The notice must state the amount of rent and the amount and nature of any reasonable expenses that the secured party is liable for payment to the landlord.  The notice must also provide that the secured party will be sent a copy of the rental agreement previously signed by the tenant and the landlord upon request.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Ron Clarke, Washington Manufactured Housing Association, and Arnold Livingston, Mobile Home Owners of America testified for the bill.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This measure represents an agreement between the financial institutions, park owners, tenants, and manufacturers. It gives reasonable safeguards to the park owners without taking rights away from other affected parties.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Miller