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LAWS APPLICABLE TO RESIDENT OWNED Manufactured Home Park Communities.

By John DL Arendsen

Real Estate Broker/Owner with CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments 521400, 1501015, 01795582

July 08, 2014 08:40 AM

LAWS APPLICABLE TO RESIDENT OWNED

Manufactured Home Park Communities.

Q. Which state laws regulate

the operation of non-profit

resident owned parks – the

Mobilehome Residency Law,

the Mobilehome Parks Act, the

Non-Profit Mutual Benefit

Corporation Law, or the Davis-

Stirling Common Interest

Development Act?

A. All these laws may apply, but whether they do in a particular park depends upon the circumstances in each case and may require consultation with an attorney.

Therefore, the following answer is only intended to have

general application:

Mobilehome Residency Law (MRL):

For a resident-owned park, Civil Code Sec. 799.1 clarifies that Article 9 of the MRL, governing the relationship between residents and the park management (Civil Code Section 799 et. seq.), applies only to residents who have an ownership interest in the park, while Articles 1 through 8 (Sections 798 – 798.88), relating to rental parks, apply to any non-owning residents who continue to rent or lease their spaces in a resident-owned park.

Mobilehome Parks Act (MPA):

The MPA governs health and safety (building) code requirements for both rental parks and resident-owned parks that were converted from formerly rental parks, but the MPA in most cases does not apply to resident-owned parks that were originally developed as manufactured housing subdivisions or communities under local development standards, not rental parks.

Non-Profit Mutual Benefit Corporation Law (Corporations

Code Sec. 7110, et. seq.):

This law applies to a non-profit corporation which is a homeowners association that operates or governs a multiple residential community for the mutual benefit of the members of the association.

However, the Corporations Code does not apply to unincorporated homeowners associations that operate such communities, of which there are estimated to be but a few.

Davis-Stirling Common Interest Development Act:

This Act defines and regulates common interest developments (CIDs), including many resident- owned parks. In order to be a CID subject to the requirements of the Davis- Stirling Act, the park 1) must have a common area or common areas (such as roads, a club house, or other commonly used facilities) in addition to individual interests or residences, and 2) the park must file a declaration of intent to create a CID with the county recorder along with a condominium plan, if applicable, or a final map or parcel map, if applicable, for the CID.

In most cases where a resident-owned park is a

condominium, planned unit development (PUD), or

subdivision, the Davis-Stirling Act will apply.

However, non-profit stock cooperatives or other resident-owned parks that are not subdivisions or condominiums may also be subject to the Davis. Stirling Act if a simple declaration creating the CID is recorded. Without the recording of such a declaration, however, the Davis Stirling Act does not apply.

Recap:

● Different laws apply. Check with attorney.

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