13 ATTACHMENTS - Laserfiche WebLink

1. Residents that are lower income, as defined in Health and Safety Code Section 50079.5, may not have their preconversion monthly rent raised more than the average rent increase in the four years immediately prior to conversion or the Consumer Price Index for the most recently reported period, whichever is less 2. Residents that are not lower income, as defined in Health and Safety Code Section 50079.5, may have their rent increased to market levels in equal annual increases over a four -year period. The market rent survey shall be conducted in accordance with nationally recognized professional appraisal standards. (Government Code Section 66427.5) After a parkowner /subdivider secures local approval, then they must make an application to the Department of Real Estate (DRE) for a public report consisting of a notice of intention, a reserve study and budget, and a completed questionnaire on a form prepared by the department. (Business and Professions Code 11010) However, prior to making an application to DRE the subdivider of a mobilehome park must disclose in writing to homeowners and residents of the park the tentative price of the subdivided interest proposed to be sold or leased. (Business and Professions Code 11010.9) MOBILEHOME PARK BECOMES CONDOMIUM PROJECT As the California legislative scheme has evolved, a condominium can be created for virtually any type of real estate interest or structure. Formerly, the condominium statutes stated that the separate interest portion of the condominium had to be within a building. This was eliminated with the adoption of the Davis Sterling Common Interest Development Act (Civ. Code, section 1350 et seq.). After the subdivision application is approved at the local level, a detailed condominium plan is prepared by a project engineer. The plan details the specific dimensions and boundaries for each individual unit as well as all common areas. The condo plan is the main documentation under which the condo units are offered for sale. This document is approved by the DRE and subsequently recorded. After the public report is issued by the DRE, then the mobilehome park becomes a condominium project. The condominium project now must abide by the statutes in the Davis Sterling Act, the body of law which regulates the operation and fiduciary requirements of a condominium project. (sf: sf/168798_1. DOC/012009/4640.001