HOUSE BILL REPORT

ESSB 6449

As Passed House:

March 6, 2002

Title:  An act relating to allowing entrance and exit fees under limited circumstances.

Brief Description:  Allowing entrance and exit fees under limited circumstances.

Sponsors:  By Senate Committee on Labor, Commerce & Financial Institutions (originally sponsored by Senator Kastama).

Brief History:

Committee Activity:

Local Government & Housing:  2/27/02, 2/28/02 [DP].

Floor Activity:

Passed House:  3/6/02, 93-0.

Brief Summary of Engrossed Substitute Bill

$Allows mobile home park landlords to charge tenants an entrance fee if it is part of a continuing care contract.

HOUSE COMMITTEE ON LOCAL GOVERNMENT & HOUSING

Majority Report:  Do pass. Signed by 11 members: Representatives Dunshee, Chair; Edwards, Vice Chair; Mulliken, Ranking Minority Member; Berkey, Crouse, DeBolt, Dunn, Hatfield, Kirby, Mielke and Sullivan.

Staff:  Kenny Pittman (786‑7392).

Background:

The state's Manufactured/Mobile Home Landlord‑Tenant Act (Act) regulates the relationship between the mobile home owner (tenant) and the mobile home park owner (landlord).  Under the Act, a landlord is required to provide a written rental agreement, signed by the landlord and the tenant, that contains the terms and conditions of the lease.  Currently, a landlord may not charge tenants an "entrance fee" to move their mobile home into the mobile home park or an "exit fee" to move their mobile home out of the mobile home park.

Continuing care retirement communities (CCRC) are for‑profit or nonprofit entities that provide a person shelter and services under continuing care contracts with its members and that sponsors or includes a health care facility or a health service.  The unique feature of CCRC contracts is that shelter and services are provided for the duration of the person's life or for a term in excess of one year.  These contracts usually require the payment of an "entrance fee" to the provider of the services (shelter and health‑related and personal care services).

Summary of Engrossed Substitute Bill:

The state's Manufactured/Mobile Home Landlord‑Tenant Act is revised to allow landlords to charge tenants an "entrance fee" if it is part of a continuing care contract.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This is limited to those specific circumstances where a mobile home park is part of a continuing care retirement community.  Those mobile home parks that are not part of a continuing care retirement community would still be prohibited from charging the tenants an entrance fee.  We support this concept and want to make sure that the entrance fee does not apply to mobile home parks that are not part of a continuing care retirement community.

Testimony Against: None.

Testified:  Senator Jim Kastama, prime sponsor; Terry Schaberg, Warm Beach Senior Community; and Ray Munson, Mobile Home Owners of America, Inc.