(SACRAMENTO, CA)  The Governor vetoed a bill by Assemblymember Noreen Evans (D-Santa Rosa), Chair of the Assembly Democratic Caucus, to protect seniors and working families now living in mobile home parks by regulating the conversion of mobile home parks from rentals to resident ownership.

“This veto is reckless and cold-hearted,” said Evans.  “Hundreds of thousands of seniors and working families now face being put out on the street.  They were counting on the Governor and he really let them down.”

AB 1542 would have closed a loophole in current law allowing mobile home park owners to subdivide and convert mobile home parks into condominiums, to avoid local rent control, and to potentially make huge profits in the process.  It would also provide local governments in jurisdictions with a local rent control ordinance the opportunity to review and approve applications to convert mobile home parks.

There are about 40 pending mobile home park conversions in varying locations across California, including the cities of Santa Rosa, Rohnert Park, Hayward, Vallejo, Buellton, Carson, Ojai, and San Luis Obispo.  Several cities and counties have adopted moratoriums to give the State Legislature time to act on AB 1542.

“I’ll keep fighting for mobile home residents,” added Evans.  “This isn’t over.  The problem isn’t going away.  There is nothing stopping developers and land speculators who want to turn mobile homes into condominiums.  A lot of people are going to get screwed.  Condo ownership is not an option for people of modest means.”

Current law allows a mobile home park to be subdivided into residential ownership.  But there are no safeguards for local governments to ensure that conversions serve the public interest.  If one parcel in a mobile home park is sold, the phase-out of rent control begins for the remaining park residents except for low-income tenants.  After 4 years spaces not rented to low-income tenants at the time of conversion can be rented at market rate.  This means that a space rented for $600/month today could cost $1,000 to $1,500 in just a few years.

“Mobile homes are an alternative to conventional home ownership,” concluded Evans.  “Residents own their mobile home but rent the space upon which the home is situated.  Even though these homes are called ‘mobile,’ they are difficult and costly to move.  That’s why over 100 communities have rent control ordinances to keep rents affordable.”

AB 1542 passed the Assembly 41-32 and the Senate 21-16.  It is sponsored by the City of Santa Rosa, the County of Sonoma, and the League of Cities.  It is supported by the California State Association of Counties, the Sonoma Housing Advocacy Group, the Golden State Manufactured-Home Owners League, the California Rural Legal Assistance Foundation, and the State Building and Construction Trades Council of California.

A copy of the Governor’s veto is available online at http://gov.ca.gov/pdf/press/AB%201542%20veto%20message.pdf.