SENATE BILL REPORT

ESHB 2907

BYHouse Committee on Housing (originally sponsored by Representatives Nutley, Winsley and Leonard)

Concerning mobile home relocation.

House Committe on Housing

Rereferred House Committee on Appropriations

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 20, 1990; February 23, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; McMullen, Matson, Murray, Smitherman, Williams.

Senate Staff:Dave Cheal (786-7576)

                  February 23, 1990

Senate Committee on Ways & Means

Senate Hearing Date(s):February 26, 1990

Majority Report:  Do pass as amended by Committee on Economic Development & Labor.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Johnson, Lee, Moore, Niemi, Saling, Smith, Warnke, Wojahn.

Senate Staff:Dave Cheal (786-7576)

                  February 28, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 26, 1990

BACKGROUND:

The Legislature enacted legislation during the 1989 session that requires the payment of relocation assistance to tenants of mobile home parks when a park is closed or converted to another use.  The amount of assistance was established at $4,500 for a single-wide mobile home and $7,500 for a double-wide mobile home.  It is suggested that only low-income tenants should be provided with relocation assistance from the relocation assistance fund because of lending of credit concerns.  It is also suggested that the amounts of assistance be lowered to reflect current costs for moving a mobile home.

The 1989 legislation also imposed an annual assessment of $10 on each tenant in a mobile home park for the relocation fund, and an annual assessment of $1 per tenant in a mobile home park to support the Office of Mobile Home Affairs.  The county treasurers are responsible for collecting these fees.  The county treasurers have expressed concerns about the expenses associated with the collection process.

Park owners are responsible under current law for providing, under most circumstances, all of the relocation assistance for tenant relocations prior to July 1, 1990, and one-third of the relocation assistance after July 1, 1990.  The relocation fund is responsible for providing the remaining amount of relocation assistance required after July 1, 1990.  It is suggested that a different collection and funding mechanism should be developed to provide moneys for relocation assistance and support for the Office of Mobile Home Affairs.

Current law requires the park owner to pay the relocation assistance at the time the tenant relocates.  It is possible for several different park owners to be responsible for relocation assistance if a single park changes hands within the time the tenants receive notice and when the park closes.  It is suggested that potential misunderstandings could be avoided if the park owner is responsible for paying relocation assistance at the time written notice of the park closure is provided.

SUMMARY:

Relocation assistance from the mobile home park relocation fund is payable only to low-income mobile home park tenants instead of all mobile home park tenants when a park is closed or converted to another use.  A low-income tenant is defined as a person at or below 80 percent of the median income for the area where the park is located.

The amount of relocation assistance an eligible tenant may receive is reduced from $4,500 to $3,500 for a single-wide mobile home and from $7,500 to $5,000 for a double-wide mobile home.  The amount of relocation assistance is adjusted annually to reflect increases in the consumer price index for the state.

A mobile home park owner is required to pay the park owner's share of relocation assistance to tenants who are not low-income directly to those tenants.  If the mobile home park relocation fund has insufficient funds, then the park owner may be required to pay the total amount of relocation assistance.  The Department of Community Development may promulgate rules to govern park owner payments when there are insufficient funds.

The owner of the mobile home park is responsible for providing the relocation assistance payments to the tenants at the time written closure notice is given to the tenants.

The park owners are required to collect the annual assessment of $10 on each tenant in a mobile home park and forward it to the Department of Revenue.  Lots that are vacant at least 60 percent of the year and mobile homes owned by the park owner are exempt from the fee.

A fee of $15 is imposed on every transfer of title of a new or used mobile home where ownership is changed.  The fee is collected by the county treasurer or auditor and forwarded for deposit in the mobile home affairs account to support the Office of Mobile Home Affairs in the Department of Community Development.  The fee takes effect on July 1, 1990.  The annual assessment on all mobile homes located in mobile home parks to support the Office of Mobile Home Affairs is repealed.

Any waiver of relocation assistance that was signed as a condition of starting or renewing a tenancy in a mobile home park is void and unenforceable.

A provision that allowed units of local government to loan moneys to the mobile home park relocation fund upon the approval of the director of the Department of Community Development is repealed.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE ECONOMIC DEVELOPMENT & LABOR AMENDMENTS:

The annual $10 fee on mobile homes in parks is removed and the transfer fee of $15 is raised to $65.  Fifty dollars of the transfer fee goes to the relocation assistance fund and $15 goes to support the Office of Mobile Home Affairs.

Tenants who rent rather than own mobile homes are not eligible for relocation assistance.  No relocation assistance can be provided for relocation of recreational vehicles.

The Department of Community Development is given the task of determining which tenants are of low income status, as defined by the bill.

Relocation assistance grant levels are restored to the amounts in current law.

Notices of closure must be recorded as deeds or other instruments affecting land, and the responsibility for paying relocation assistance is made binding on owners who purchase a park after closure notice is given, provided they own the park at the time assistance payments are due.

Transfers of ownership of mobile homes which involve elimination of the vehicle title, i.e., "converted" to real property, are made subject to the transfer fee.

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  Mike Piper, Ben Bonkowski, DCD; Heather Hamilton, DOW; Arnold Livingston, MHOA and Senior Lobby; Ron Clarke, Washington Manufacturing Housing Association; David Girard, Evergreen Legal Services; John Woodring, Washington Mobile Park Owners Association; Sherman Bailey, King County Council; Fred Saeger, Washington Association of County Officials; Maureen Kostiak, King County; Rachael LeMieur, DOR

Senate Committee - Testified: WAYS & MEANS:  John Woodring, Washington Mobile Park Owners Association