BILL ANALYSIS SENATE JUDICIARY COMMITTEE S Charles M. Calderon, Chairman B 1995-96 Regular Session 1 5 8 5 SB 1585 Senator Craven As amended on March 14, 1996 Hearing Date: March 19, 1996 Civil Code GEH:cb mobilehome residency law - age requirements - HISTORY Source: Western Mobilehome Association Related Pending Legislation: SB 2097 (Haynes); AB 2646 (Granlund) KEY ISSUE 1. should it be made easier to establish seniors-only mobilehome parks, by updating the cross-reference to federal fair housing laws in the state Mobilehome Residency Law? PURPOSE The purpose of this bill is to make it easier to establish seniors-only mobilehome parks by updating the cross-reference to federal fair housing laws in the state Mobilehome Residency Law. Existing law: Under the Unruh Civil Rights Act (Civil Code ?51 et. seq.), business establishments, including housing facilities, are generally prohibited from discriminating on the basis of age (See Marina Point, Ltd. v. Wolfson (1982) SB 1585 (Craven) Page 2 30 Cal.3d 72). However, Sections 51.2, 51.3 and 51.4 in the Act allow business establishments to establish and preserve housing for senior citizens, if that housing meets a number of conditions. These conditions are stricter than the conditions under the federal fair housing laws discussed below. The definition of "housing" and "dwelling" under the Unruh Civil Rights Act explicitly excludes mobilehomes. As a result, the legality of "seniors-only" mobilehome parks is governed by the Mobilehome Residency Law (MRL) (See Colony Cove Associates v. Brown (1990) 220 Cal.App.3d 195). Under the MRL, mobilehome parks may impose age requirements on residency in the park, provided that the requirements comply with the provisions of the federal Fair Housing Amendments Act (FHAA) of 1988 (Public Law 100-430). The federal FHAA makes it generally unlawful to discriminate in the sale or rental of housing on the basis of "familial status." However, like the Unruh Civil Rights Act, the FHAA contains an exemption for housing for older persons. Under the federal FHAA, a housing facility may discriminate on the basis of age if they are intended and operated for occupancy by persons 62 and older, if at least 80 percent of the occupied units are occupied by at least one person who is 62 years and the housing facility publishes and adheres to policies and procedures that demonstrate the intent to be operated for occupancy by persons 62 years and older. Under the federal FHAA as it existed until December of 1995, if the housing facility is intended and operated for occupancy by persons 55 and older, there was one more requirement, in addition to the ones applicable to 62 and older parks. That additional requirement is that the housing facility must provide significant facilities and services specifically designed to meet the physical or social needs of older persons, unless the provisions of such significant facilities and services is not practicable and it is necessary to provide important housing opportunities for older persons. Three months ago, President Clinton signed H.R. 66, which SB 1585 (Craven) Page 3 repealed the requirement that 55 and over housing facilities provide significant facilities and services specifically designed to meet the needs of older persons. (Public Law 104-76). Proposed legislation: This bill amends the state Mobilehome Residency Law to strike out the reference to the prior version of the federal Fair Housing Amendments Act, which required 55 and over housing facilities like mobilehome parks to provide significant facilities and services specifically designed to serve older persons. Instead, the bill inserts a reference to the current version of the federal FHAA which does not require 55 and over housing facilities like mobilehome parks to provide significant facilities and services specifically designed to serve older persons. The bill contains an urgency clause and a declaration that "in oder to conform state requirements for senior mobilehome parks to changes in federal law which were recently enacted by Congress, it is necessary that this act take effect immediately." COMMENT 1. Federal fair housing laws and seniors-only mobilehome parks a) The ill-fated "significant facilities and services requirement" According to the sponsors of the bill, the Western Mobilehome Association, the "significant facilities and services" requirement of the federal FHAA was very controversial. It took over five years for HUD to promulgate draft regulations, and when they came out, they required 55 and over facilities to provide many of the same things nursing homes are required to provide. Thousands of seniors expressed their concern that the requirement would force seniors-only housing to close throughout the country. Many seniors were offended by the regulations' apparent assumption that all seniors required nursing home-like facilities. SB 1585 (Craven) Page 4 The final version of the regulations were finally issued in September of 1995. Although the final regulations were much less burdensome, by time they were issued, there was significant momentum to repeal the requirement altogether, which was accomplished by the beginning of December. b) The MRL's cross-reference to the federal statute It seems highly unlikely that, even without this bill, the state Department of Employment and Housing would take enforcement actions against seniors-only mobilehome parks which violated the old federal law. However, the state law's reference to Public Law 100-430 technically does require adherence to the old "significant facilities and services" requirement. As a result, private litigants could successfully convince a court that a park would have to comply with that outmoded requirement. It should be noted that this bill is not required to avoid federal preemption. As it did with the Unruh Civil Rights Act, the Legislature could consciously decide to be more stringent than federal law, by, for example, requiring 55 and over mobilehome parks to provide "significant facilities and services." However, the Legislature has already decided to exempt mobilehome parks from the stricter requirements of the Unruh Civil Rights Act, and to require such parks only to meet the minimum requirements of the federal FHAA. Since those federal requirements have now changed, it would be consistent for the requirements of MRL to be adjusted accordingly. Support: Western Mobilehome Association; California Mobilehome Parkowners Alliance Opposition: None known Prior Legislation: AB 2244 (1993) Chaptered **************