SENATE BILL REPORT

ESHB 2136

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

Rereferred House Committee on Appropriations

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 30, 1989; March 31, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Murray, Saling, Smitherman, Warnke, Williams.

Senate Staff:David Cheal (786-7576)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 31, 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.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested March 7, 1989

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

SUMMARY OF PROPOSED SENATE AMENDMENT:

Park owners have a choice of providing two years' notice of park closure or providing monetary assistance to each tenant of $4,500 for a single-wide mobile home or $7,500 for a double-wide.  After July 1, 1991, the park owner's share goes to two-thirds of the above stated amounts, if they do not give two years' notice.  Twelve months' notice must be provided in any event.  The remaining one-third of the relocation grant comes from a fund established by assessments on tenants of $10 per year.  If a landlord gives two years' notice, the entire grant is paid from the fund.

Park owners must provide a covenant in new leases and renewals that the park will remain open for three years or a notice that the park may be sold at any time and closed.

Low income tenants who have already received notice to vacate due to park closure are eligible for assistance from the relocation assistance fund.  An appropriation to the fund would be required to make this possible, or local governments could contribute to the fund and be reimbursed at a later time.

The $10 assessments from tenants are collected by the county treasurers rather than park owners.

Senate Committee - Testified: Linda Lethban; Laura Egbert (pro); John Jensen (pro); Mike Ryherd (pro); Shirley McCullough (pro); Ava Frisinger (pro); Nadine Shannon (pro); Peter Adamski (pro); Shirley Nichols (pro); Nancy Ristow (pro); Audrey McGee (pro); Richard Gamble (pro); Paul Borden (pro); Fred Brune (pro); Morton Clarke (pro); Margaret Troiani (pro); Sheila Parker (pro); Willie Guimont (con)