Do You Value Your Home? Please read below to see if you are affected.
Support AB 2539 - A statewide proposal for Mobilehome parks: sale: notice: right of first refusal
March 31, 2024
Assemblyman Damon Connolly
California State Assembly
P.O.Box 942849 Sacramento, CA 94249-0012
RE: AB 2539 - Mobilehome Resident Opportunity to Purchase Act – SUPPORT
Dear Assemblymember Connolly & All Interested Legislators:
The Mobile Home Resident Coalition (MHRC) is pleased to support Assembly Bill 2539, which will allow residents of mobilehome parks (MHP) the time necessary to organize and the opportunity to purchase their park when an owner is interested in selling. Mobilehomes are one of the last forms of naturally occurring affordable housing in California. These parks house an estimated 363,000 homes in California. Mobilehome parks enable communities of all income levels to attain homeownership and build equity.
In recent years, investment firms and corporations nationwide have begun buying up mobilehome parks. Many residents live on fixed-incomes and cannot afford the rent spikes that are now commonplace. In some cases, park ownership switches from an individual park owner to corporate ownership which creates an even heavier burden on the homeowner. Not owning the land where their home resides effectively traps homeowners and forces them to pay endlessly rising rents at the discretion of the park owner or abandon their home since moving mobilehomes is cost prohibitive or impossible.
Mobilehome residents often have a significant financial investment in their homes, and displacement due to a park sale can be disruptive and expensive. A right of first refusal allows residents to secure long-term affordability and stability by purchasing the park and controlling future rent increases. It can help address the growing issue of displacement and loss of affordable housing options, particularly for vulnerable populations like fixed-income seniors. Additionally, owning the park incentivizes residents to invest in repairs and upgrades whereas corporate owners or investors have little incentive to make the capital improvements so many parks need. To address this crisis, at least a dozen states have passed some form of a “right to first refusal” law.
The existing Mobilehome Residency Law (MRL) only requires a park owner to give residents a minimum of 30 days’ notice of their intent to sell. AB 2539 would provide an additional notice period (120 days total) to give residents the time needed to form a resident organization for the purpose of purchasing the park. This bill would grant the resident organization a right of first refusal and give them six months from the time they receive notice of intent to sell, to make an offer. The park owner must then engage in good faith negotiations with the resident organization and would be prohibited from negotiating with or accepting an offer from another party until the six-month period has elapsed. This bill has the potential to shift the housing landscape toward long-term stability for current and future mobilehome park residents.
For these reasons, MHRC strongly supports AB 2539.
The success of good faith negotiations call for MHP resident associations to be non-profit. MHRC is willing to offer its assistance to help these groups be aware of the importance of becoming a non-profit and the general process for potentially buying their own parks. Increasing numbers of organizations offer low interest rate loans and assist resident associations with mobilizing an effort to purchase their park.
Sincerely,
WE NEED YOUR HELP NOW! SUPPORT AB 2539.