BILL REQ. #:  H-2264.2 

READ FIRST TIME 03/04/05.   

     AN ACT Relating to resolving manufactured/mobile home landlord and tenant disputes; amending RCW 59.22.050; adding a new chapter to Title 59 RCW; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The legislature finds that there are factors unique to the relationship between a manufactured/mobile homeowner and a manufactured/mobile home park owner. Once occupancy has commenced, the difficulty and expense in moving and relocating a manufactured/mobile home can affect the operation of market forces, and lead to an inequality of the bargaining position of the parties. Once occupancy has commenced, a homeowner may be subject to violations of the manufactured/mobile home landlord-tenant act or unfair practices without an adequate remedy at law. This chapter is created for the purpose of protecting the public, fostering fair and honest competition, and regulating the factors unique to the relationship between the manufactured/mobile homeowner and park owner.
     (2) The legislature finds that taking legal action against a park owner for violations of the manufactured/mobile home landlord-tenant act can be a costly and lengthy process, and that many people cannot afford to pursue a court process to vindicate statutory rights. Park owners similarly are benefited by having access to a process that resolves disputes quickly and efficiently.
     (3) Therefore, it is the intent of the legislature to provide a less costly and more efficient way for manufactured/mobile homeowners and park owners to resolve disputes, and to provide a mechanism for state authorities to quickly locate owners of manufactured housing communities. The legislature further intends to authorize the department of community, trade, and economic development to register mobile home parks or manufactured housing communities and conduct investigations of alleged violations of the manufactured/mobile home landlord-tenant act.
     (4) If the provisions of this chapter authorizing the department to obtain information, investigate complaints, clarify existing law, and work to resolve disputes in good faith voluntarily prove insufficient to adequately protect the rights and responsibilities of mobile home park tenants and owners, it is the intent of the legislature to find other methods for resolution in the future, such as full enforcement of this chapter.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context requires otherwise.
     (1) "Department" means the department of community, trade, and economic development.
     (2) "Director" means the director of the department of community, trade, and economic development.
     (3) "Mobile home park" or "manufactured housing community" means any real property that is rented or held out for rent to others for the placement of two or more mobile homes, manufactured homes, or park models for the primary purpose of production of income, except when the real property is rented or held out for rent for seasonal recreational purposes only and is not intended for year-round occupancy.
     (4) "Landlord" or "park owner" means the owner of a mobile home park or a manufactured housing community and includes the agents of the landlord.
     (5) "Tenant" or "homeowner" means any person, except a transient, who rents or occupies a mobile home lot.
     (6) "Owner" means one or more persons, jointly or severally, in whom is vested:
     (a) All or part of the legal title to the real property; or
     (b) All or part of the beneficial ownership, and a right to present use and enjoyment of the real property.
     (7) "Unfair practice" means any act that would constitute an unfair or deceptive act or practice under chapter 19.86 RCW.
     (8) "Complainant" means a landlord, park owner, tenant, or homeowner, who has a complaint alleging an unfair practice or violation of chapter 59.20 RCW.
     (9) "Respondent" means a landlord, park owner, tenant, or homeowner, alleged to have committed an unfair practice or violation of chapter 59.20 RCW.

NEW SECTION.  Sec. 3   (1) A complainant shall have the right to file a complaint with the department alleging an unfair practice or a violation of chapter 59.20 RCW.
     (2) The complainant must provide written notice to the respondent prior to notifying the department of an alleged violation of chapter 59.20 RCW or unfair practice. If the complaint is not remedied within the time frame provided by RCW 59.20.080 or 59.20.200, the complainant may then file a complaint with the department.
     (3) The department may:
     (a) Investigate the alleged violations at its discretion upon receipt of a complaint alleging unfair practices or violations of chapter 59.20 RCW;
     (b) Utilize problem-solving groups comprised of equal numbers of representatives of mobile home park owner organizations and mobile home park tenant organizations, in the course of investigating and evaluating complaints alleging unfair practices or violations of chapter 59.20 RCW;
     (c) Discuss the issues surrounding or relating to the complaint with the complainant, respondent, or any witnesses, either individually or jointly;
     (d) Explain options available to the complainant or respondent, including the involvement of other agencies; and
     (e) Negotiate an agreement that is agreed upon by both the complainant and the respondent.
     (4) The department may require or permit any person to file a complaint or statement in writing, under oath or otherwise as the department determines, as to the facts and circumstances concerning a matter to be investigated.
     (5) The department has the power to:
     (a) Issue subpoenas and administer oaths in connection with any investigation, hearing, or proceeding held under this chapter;
     (b) Take or cause depositions to be taken and use other discovery procedures as needed in an investigation, hearing, or proceeding held under this chapter;
     (c) Compel attendance of witnesses at hearings;
     (d) Designate individuals authorized to sign subpoenas and citations;
     (e) Employ investigative, administrative, and clerical staff as necessary for administration of this chapter; and
     (f) Issue guidelines and interpretive statements concerning chapter 59.20 RCW.
     (6)(a) Complainants and respondents shall cooperate with the department in the course of an investigation by:
     (i) Furnishing any papers or documents requested;
     (ii) Furnishing in writing an explanation covering the matter contained in a complaint when requested by the department;
     (iii) Allowing authorized access to department representatives for inspection of mobile home parks/manufactured housing community facilities relevant to the alleged violation being investigated; or
     (iv) Responding to subpoenas issued by the department.
     (b) Failure to cooperate with the department in the course of an investigation is a violation of this chapter.
     (7) After the department has completed its investigation and other duties, the department shall compile a written report documenting the process and resolution of the complaint investigation.
     (8) By December 31, 2005, the department shall submit a summary report of its activities under this chapter during the period July 1, 2005, through December 31, 2005, to the house of representatives housing committee and the senate committee on financial institutions, housing and consumer protection, including:
     (a) The number of complaints received;
     (b) The nature and extent of the complaints received;
     (c) The actions taken on each complaint by the department;
     (d) Recommendations on what further changes in law are necessary to resolve disputes;
     (e) Recommendations on changes to the department's ombudsman and investigative programs;
     (f) Recommendations on resources necessary to retain or improve the program; and
     (g) Recommendations on whether a formal mobile/manufactured home landlord-tenant act enforcement and administrative hearing process should be adopted and how such a process should be structured.
     (9) The department shall ensure that notice is given to each mobile home unit owner or tenant. The landlord shall maintain a list indicating by tenant initials which tenants have received such a notice. A notice shall also be prominently posted for easy visibility in all common areas of mobile home parks, including in each clubhouse, summarizing mobile home park tenant rights and responsibilities, in a style and format to be determined by the department, and including a toll-free telephone number that mobile home park owners and tenants can use to seek additional information and communicate complaints.
     (10) This section is not exclusive and does not limit the right of landlords or tenants to take legal action against another party as provided in chapter 59.20 RCW or otherwise. Exhaustion of this administrative remedy is not required before bringing legal action. This section does not apply to unlawful detainer actions initiated under RCW 59.20.080; however, a tenant is not precluded from seeking relief under this chapter if the complaint claims the notice of termination violates RCW 59.20.080.

NEW SECTION.  Sec. 4   The director or individuals acting on the director's behalf are immune from suit in any action, civil or criminal, based upon any disciplinary actions or other official acts performed in the course of their duties under this chapter, except their intentional or willful misconduct.

NEW SECTION.  Sec. 5   (1) All mobile home parks and manufactured housing communities must be registered with the department.
     (2) To apply for registration, the owner of a mobile home park or manufactured housing community must file with the department an application for registration on a form prescribed by the department. The department may adopt rules to prescribe the contents of the application. The application must include, but is not limited to:
     (a) The name and address of the owner of the mobile home park or manufactured housing community;
     (b) The name and address of the mobile home park or manufactured housing community;
     (c) The name and address of the manager of the mobile home park or manufactured housing community; and
     (d) The number of lots within the mobile home park or manufactured housing community that are subject to chapter 59.20 RCW.
     (3) Certificates of registration are effective on the date issued by the department. The department shall assign an expiration date and the registration must be renewed annually.

NEW SECTION.  Sec. 6   The department must:
     (1) Compile the most accurate list possible of all the mobile home parks or manufactured housing communities in the state, the number of lots subject to chapter 59.20 RCW located in each mobile home park or manufactured housing community, and the names and addresses of the owners of these parks. The department shall present this list to the house of representatives housing committee and the senate committee on financial institutions, housing and consumer protection by December 31, 2005. The department is encouraged to work with groups including, but not limited to: The office of community development, mobile homeowners' associations, tenant advocacy groups, park owners' associations, and county assessors to generate the list;
     (2) Send out notifications to all known mobile home park owners or manufactured housing community owners that the first annual assessments pursuant to section 7 of this act are due. These notifications must include information about late fees, liens, and passing costs on to tenants; and
     (3) Collect the first annual assessments due from all mobile home park owners or manufactured housing community owners, and allow ninety days to pass before late fees and lien notices are sent to noncomplying owners as provided in this chapter.

NEW SECTION.  Sec. 7   (1) The owner of each mobile home park or manufactured housing community shall pay to the department an annual registration assessment to fund the costs associated with administering this chapter. The assessment must be set by rule and determined annually by the department, and may not exceed ten dollars for each mobile home or manufactured home that is subject to chapter 59.20 RCW within a park or community. Manufactured housing community owners or mobile home park owners may pass on no more than the first five dollars of this assessment to tenants. The annual assessment is to be collected on the date of the registration.
     (2) If an owner fails to pay the annual assessments before the registration expiration date, a late fee as determined by the director by rule shall be assessed. The owner is not entitled to any reimbursement of this fee from the tenants. The owner is precluded from utilizing any of the remedies of this chapter or any other remedy provided in chapter 59.20 RCW if the annual assessment is not paid.
     (3) If an owner fails to pay the required assessments within ninety days of the registration expiration date, the amount due under this section becomes a lien in favor of the state upon the owner's property. The lien is superior to all other liens and encumbrances except general taxes and local and special assessments, and bears interest computed monthly and compounded annually at a rate of eight percent.

NEW SECTION.  Sec. 8   The manufactured/mobile home investigations account is created in the custody of the state treasurer. All receipts from fees collected under section 7 of this act must be deposited into the account. Expenditures from the account may be used only for the costs associated with administering this chapter. Only the director or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 9   RCW 59.22.050 and 1991 c 327 s 3 are each amended to read as follows:
     (1) In order to provide general assistance to mobile home resident organizations, park owners, and landlords and tenants, the department shall establish an office of mobile home affairs which will serve as the coordinating office within state government for matters relating to mobile homes or manufactured housing.
     This office will provide an ombudsman service to mobile home park owners and mobile home tenants with respect to problems and disputes between park owners and park residents and to provide technical assistance to resident organizations or persons in the process of forming a resident organization pursuant to chapter 59.22 RCW. The office will keep records of its activities in this area.
     (2) The office shall perform all the consumer complaint and related functions of the state administrative agency that are required for purposes of complying with this chapter and the regulations established by the federal department of housing and urban development for manufactured housing, including the preparation and submission of the state administrative plan.
     (3) The office shall administer the mobile home relocation assistance program established in chapter 59.21 RCW, including verifying the eligibility of tenants for relocation assistance.

NEW SECTION.  Sec. 10   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2005.

NEW SECTION.  Sec. 11   Sections 1 through 8 of this act constitute a new chapter in Title 59 RCW.