HOUSE BILL REPORT

HB 2907

BYRepresentatives 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 REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 3, 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:

SUBSTITUTE BILL:  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.

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.

SUBSTITUTE BILL COMPARED TO ORIGINAL: The original bill required park owners to pay one-half of the relocation costs for each tenant. The original bill provided an appropriation of $2 million to the relocation fund.  A $50 fee was imposed on the sale of every new or used mobile home.  This fee was transferred to the relocation fund.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS:  None.

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.