SENATE BILL REPORT

SB 5369

BYSenators Bluechel, Warnke, Smith, Lee and von Reichbauer

Providing for a study of mobile home availability.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 1, 1989; February 8, 1989

Majority Report:  That Substitute Senate Bill No. 5369 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Dave Cheal (786-7576)

                  February 8, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 8, 1989

BACKGROUND:

During the past decade an increasing percentage of new residential construction, particularly in the lower price quadrant, is supplied by mobile or manufactured homes.  Many of these homes are placed in mobile home parks on leased spaces by the owners of the home.  Mobile home owners, particularly those who lease spaces in parks, have come to the Legislature consistently over the past 10 years to call attention to a declining availability of rental spaces and an escalating rent level that consistently increases faster than general inflation.

Lack of state regulation, local zoning practices, and high land and development costs have been cited as causes of these problems.

SUMMARY:

A 16 member commission is created consisting of eight legislators, two representatives of cities, two representatives of counties, two representatives of park owners, and two representatives of mobile home owners/park tenants.

The commission is directed to develop recommendations that will increase competition among mobile home parks, increase availability of land for the development of parks, and solve the problems of continual rent increases of mobile home spaces.  The recommendations are to provide a balance between park owners' legitimate costs and their need to receive a reasonable return on investment, and the ability of tenants to absorb rate increases.

The commission is given the authority to use legislative staff assistance and state agencies are authorized to assign personnel to assist the commission.  The commission is authorized to appoint a technical advisory committee, and is encouraged to consult with federal, state and local agencies as well as private groups in the performance of its task.

The commission is to submit a preliminary report by July 1, 1990, and a final report by July 1, 1991.

EFFECT OF PROPOSED SUBSTITUTE:

Instead of creating a commission, the tasks outlined in the original bill are delegated to the existing Office of Mobile Home Affairs within the Department of Community Development.  The appropriation of $50,000 is removed.  No appointments are required by the Legislature.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 8, 1989

Senate Committee - Testified: John Woodring (con)