AB 1543

Introduced by Assembly Member Quirk-Silva
 An act to amend Section 798.30.5 of the Civil Code, relating to housing.
housing
Mobilehome parks: rent caps.
Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. The law defines “mobilehome park” for these purposes to mean an area of land where 2 or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation.
The law caps the amount by which management of a qualified mobilehome park may increase the gross rental rate for a tenancy over the course of any 12-month period. The cap is the lower of 5% of the lowest gross rental rate charge for a tenancy at any time during the preceding 12 months or 3% of that amount plus the percentage change in the cost of living. Under that law, a mobilehome park is subject to that cap if it is located within and governed by the jurisdictions of 2 or more incorporated cities.
This bill would instead make any mobilehome park subject to that cap. The bill would make conforming changes related to these provisions.
The people of the State of California do enact as follows:
SECTION 1.
Section 798.30.5 of the
Civil Code
 is amended to read:
798.30.5.
(a) (1) Subject to subdivision (b), management shall not, over the course of any 12-month period, increase the gross rental rate for a tenancy in a mobilehome park more than 3 percent plus the percentage change in the cost of living, or 5 percent, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase.
(2) If the same homeowner maintains a tenancy over any 12-month period, the gross rental rate for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross
				  rental rate increase.
(b) For a new tenancy in which no homeowner from the prior tenancy remains in lawful possession of the mobilehome space, management may establish the initial rental rate not subject to subdivision (a), unless the applicable local agency or jurisdiction has adopted an ordinance, rule, regulation, or initiative measure that limits the allowable rental rate for a new tenancy, in which case that ordinance, rule, regulation, or initiative measure shall apply. Subdivision (a) shall be applicable to subsequent increases after that initial rental rate has been established, except as otherwise provided in this section.
(c) A homeowner with a tenancy subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (c) of Section 798.23.5. Nothing in this subdivision
				  authorizes a homeowner to sublet or assign the homeowner’s interest where otherwise prohibited.
(d) Management shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each homeowner in accordance with Section 798.30.
(e) This section shall not apply to a tenancy for any of the following:
(1) A mobilehome space restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable
				  federal statutes.
(2) A mobilehome space constructed and maintained in connection with any higher education institution within the state for use and occupancy by students in attendance at the institution.
(3) A mobilehome space subject to any ordinance, rule, regulation, or initiative measure that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
(4) A mobilehome space within a resident-owned mobilehome park, as defined in Section 799.
(f) (1) (A) Except as provided in paragraph (4), this section
				  shall apply to all rent increases occurring on or after February 18, 2021.
(B) This section shall become operative January 1, 2022.
(2) In the event that management has increased the rent by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:
(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).
(B) Management shall not be liable to a homeowner for any corresponding rent overpayment.
(3) Management subject to subdivision (a) who increased the rental rate for a tenancy on or after February 18, 2021, but prior to
				  January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).
(4) The amendments made to this section by the act that added this paragraph shall become operative on January 1, 2027.
(g) Any waiver of the rights under this section shall be void as contrary to public policy.
(h) For the purposes of this section:
(1) “Consumer Price Index for All Urban Consumers for
				  All Items” means the following:
(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:
(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.
(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.
(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.
(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda,
				  Contra Costa, Marin, San Francisco, and San Mateo.
(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.
(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.
(C) On or after January 1, 2022, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is
				  first published.
(2) (A) “Percentage change in the cost of living” means the percentage change in the applicable Consumer Price Index for All Urban Consumers for All Items, as described in paragraph (1) and computed pursuant to subparagraph (B) of this paragraph.
(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:
(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
(I) The percentage change shall be the percentage change in the amount published for April of that calendar year
				  and April of the immediately preceding calendar year.
(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(i) (1) Nothing in this
				  section affects the authority of a local government to adopt or maintain an ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent. However, if a local ordinance, rule, regulation, or initiative measure allows for a rental rate increase greater than that provided in subdivision (a), this section shall apply.
(2) Nothing in this section alters the application of Sections 798.17, 798.45, or 798.49 to any ordinance, rule, regulation, or initiative measure that establishes a maximum amount that may be charged for rent.
(3) This section is not intended to express any policy regarding the appropriate, allowable rental rate increase limitations when a local government or jurisdiction adopts an ordinance, rule, regulation, or initiative measure regulating rent increases.
(j) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.