FINAL BILL REPORT

SHB 995

PARTIAL VETO

                                  C 482 L 87

BYHouse Committee on Housing (originally sponsored by Representatives Todd, Cantwell, Crane, Cooper, Leonard and Nutley)

Establishing a mobile home park purchase fund.

House Committe on Housing

Senate Committee on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

A mobile home park is a parcel of land under single ownership on which mobile or manufactured homes are located. Generally the land is rented to tenants who own their mobile/manufactured homes.  The park usually contains a certain amount of common space and common facilities for tenants.  A mobile home park may have a tenant organization to negotiate with the park owner.  Mobile homes have traditionally provided low cost housing for elderly and low income persons.

There is evidence that rising costs of mobile home park development and operation, plus speculative investment, have reduced the primary benefit provided by mobile or manufactured homes, namely moderate and low-cost housing.  The sale of a mobile home park under these conditions may often result in an increase in rents.

The Department of Community Development is an agency created to assist in providing financial and technical assistance to the communities of the state; to assist in improving the delivery of federal, state and local programs; and to provide communities with access to opportunities for productive and coordinated development beneficial to the well-being of the communities and their residents.  A significant portion of the department's efforts have focused on housing issues.

SUMMARY:

The intent of this measure is to encourage and facilitate the conversion of mobile home parks to resident ownership.  This goal would be accomplished primarily through private funding of mobile home park conversions to resident ownership. These ownership conversions are intended to maintain the affordability of housing in resident owned parks for the low income, elderly, poor or infirm.

A mobile home park purchase fund is created in the office of the treasurer.  The Department of Community Development (DCD) is charged with administering the program.

Loans can be made to tenant organizations for conversion costs.  The loan is for the minimum amount necessary to enable the organization to purchase the park, but cannot exceed 50 percent of the conversion costs.  The loan term is a maximum three years; the interest rate is a competitive rate set by DCD.  Loans can be made only to tenant or resident organizations in which a significant portion are low income, elderly, poor or infirm.

Eligible tenant or resident organizations are mobile home park residents who have formed a legal entity, i.e. a nonprofit corporation, for the purpose of acquiring the mobile home park in which they live.  The entity must include two-thirds of the households residing in the mobile home park at the time of the request for assistance to purchase the park.  If the entire park is not sold, the park owner retains full control of that portion of the park not sold to the tenants.  The department must ensure that displacement of any tenants due to the purchase will not pass on unreasonable hardship.

Loans may also be made to individuals to reduce the monthly housing costs for low income residents to an affordable level, estimated to be 30 percent of monthly income.  The loan amount is for the least amount necessary to reduce the borrower's housing costs to the affordable level, but is not to exceed 50 percent of the acquisition cost of the individual's interest in the mobile home park.  The maximum term is 30 years; the interest rate is to be a competitive rate set by the department.

In administering the loan program, DCD must consider, among other things, local housing programs, the reasonableness of the conversions and whether a loan is the most efficient use of the funds.  The department must seek to distribute the funds statewide with a goal of at least 20 percent going to rural areas.

The Office of Mobile Home Affairs is created in DCD.  The office will deal with matters relating to mobile or manufactured homes, and will promote effective use of mobile homes.

The Office of Mobile Home Affairs will provide an ombudsman service.  The ombudsman will assist in the resolution of disputes between park owners and tenants, help provide access to governmental services related to the health and safety of mobile home parks and provide technical assistance in converting mobile home parks to resident ownership.

The office is also asked to develop policies and strategies to promote use of mobile or manufactured homes that will enhance the supply of safe and low cost housing in the state.  The Office of Mobile Home Affairs may not address policies regarding government control of the economic return from parks to park owners.

A five-member advisory committee composed of one representative each from mobile home manufacturers, mobile home park owners, mobile home tenants, local government and the public is established.  This advisory committee is to provide input to DCD regarding mobile home issues including mobile home landlord-tenant issues.  The advisory committee to the Office of Mobile Home Affairs is required to have representatives of park owners and park tenants who are knowledgeable about and have experience with the Mobile Home Landlord-Tenant Act.

VOTES ON FINAL PASSAGE:

      House 74  22

      Senate    34    15 (Senate amended)

      House 88   8 (House concurred)

EFFECTIVE:July 26, 1987

Partial Veto Summary:  Sections of the bill that prescribe the internal policies and procedures for the Mobile Home Park Purchase Fund are vetoed.  The sections setting up an Office of Mobile Home Affairs and the related advisory committee are also vetoed.

The legislative intent, the definitions section and the section that creates the Mobile Home Park Purchase Fund in the office of the treasurer are what remain after the partial veto.  (See VETO MESSAGE)