HOUSE BILL REPORT
ESHB 2907
As Amended by the Senate
BYHouse Committee on Housing (originally sponsored by Representatives Nutley, Winsley and Leonard)
Concerning mobile home relocation.
House Committe on Housing
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (8)
Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Winsley, Ranking Republican Member; Anderson, Ballard, Padden, Rector and Todd.
Minority Report: Do not pass. (1)
Signed by Representative Inslee.
House Staff:Bill Lynch (786-7092)
Rereferred House Committee on Appropriations
Majority Report: The substitute bill by Committee on Housing be substituted therefor and the substitute bill do pass. (20)
Signed by Representatives Locke, Chair; Silver, Ranking Republican Member; Appelwick, Belcher, Bowman, Braddock, Brekke, Dorn, Ebersole, Hine, May, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.
Minority Report: Do not pass. (5)
Signed by Representatives Youngsman, Assistant Ranking Republican Member; Doty, Inslee, McLean and Nealey.
House Staff: Susan Nakagawa (786-7145)
AS PASSED HOUSE FEBRUARY 9, 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 at the time the tenant relocates to pay the relocation assistance. 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 if the park owner at the time written notice of the park closure is provided is responsible for paying relocation assistance, then potential misunderstandings could be avoided.
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 at the time written closure notice is given to the tenants is responsible for providing the relocation assistance payments 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.
EFFECT OF SENATE AMENDMENTS: The $10 annual assessment on each mobile home in a mobile home park is repealed. A $50 fee is imposed on every transfer of title of a new or used mobile home and on every transfer of ownership in which the title is eliminated. Moneys collected from the $50 fee are transferred to the mobile home park relocation fund.
The amount of relocation assistance available for a single-wide and a double-wide mobile home is restored to the level currently in statute.
The park owner at the time relocation assistance is provided is responsible for paying relocation costs. The obligation of a park owner to pay relocation assistance runs with the land and is binding upon any purchases, successors, and assigns of the park owner. Notice of a park closure or conversion must be recorded with the county auditor in the county where the mobile home park is located.
Tenants who rent a mobile home are ineligible for relation assistance. A tenant may not receive relocation assistance for relocating a recreational vehicle.
The Department of Community Development is responsible for determining the income status of park tenants. The Department is directed to issue a document to each tenant signifying the tenant's income status.
Any park owner who coerces or attempts to coerce a tenant into terminating a tenancy for the purpose of avoiding the payment of relocation assistance may be subject to a civil action for damages or equitable relief by an injured tenant.
Fiscal Note: Available.
House Committee ‑ Testified For: (Housing) Maureen Kostyack, King County Housing and Economic Development.
(Appropriations) No one.
House Committee - Testified Against: (Housing) Ron Clarke, Washington Manufactured Housing Association; and John Woodring and Fred Brune, Washington Mobile Park Owners.
(Appropriations) No one.
House Committee - Testimony For: (Housing) The need to enact legislation this session is critical. The current collection mechanism is not feasible.
(Appropriations) None.
House Committee - Testimony Against: (Housing) The mobile home park relocation fund should not be funded by fees imposed on mobile home sales because most new homes that are sold won't be located in parks. The process established last year should be maintained or modified slightly.
(Appropriations) None.
VOTE ON FINAL PASSAGE:
Yeas 82; Nays 8; Absent 3; Excused 5
Voting Nay: Representatives Beck, Grant, Inslee, Jesernig, McLean, Prince, Silver, Zellinsky.
Absent: Representatives Hankins, Haugen, Locke.
Excused: Representatives Ballard, Basich, Chandler, Gallagher, Sommers D.