ARIZONA STATE SENATE

RESEARCH STAFF

JULIE SZPERLING

LEGISLATIVE RESEARCH ANALYST

COMMERCE COMMITTEE

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

TO: MEMBERS OF THE SENATE

GOVERNMENT COMMITTEE

DATE: April 6, 2001

SUBJECT: Strike Everything Amendment to H.B. 2074

Purpose

Clarifies statute relating to rules and regulations governing tenants of mobile home parks.

Background

In rental mobile home parks, the tenants own the mobile homes they occupy, while renting the lot on which the home is located from the park owner. Mobile homes are difficult to move, so once they come into a park they tend to remain there for long periods of time. When the tenant/owners wish to sell them, they typically sell them on-site to buyers which, following landlord approval, become tenants of the park, taking over the rental of the mobile home lot by signing a new lease with the landlord.

Under current law, landlords may deny rental to mobile homes which are either not compatible with others in the park or do not meet the requirements of the park’s statements of policy (A.R.S. §33-1452). Traditionally, this means that when parks change their rules to require more modern homes, all new tenants must have homes that comply with the new standards. Current tenants who are unable to comply with the upgrading rules are “grandfathered in,” as long as they continue to own the mobile home. When these “grandfathered” mobile homes are sold, they must be either upgraded to the new standard or removed from the park. Also, if a home that is in compliance with park rules is incompatible with the other homes in the park (i.e. it is singlewide when the majority of homes in the park are doublewide), when it is sold it will be removed.

A recent Superior Court ruling overturned consistent industry practice by stating that a landlord may not require a mobile home to be removed upon sale if it is “compatible” with the other mobile homes in the mobile home park. The decision held that if the home is compatible, an on-site sale must be approved despite its non-compliance with upgraded rules. This essentially negates the ability of landlords to upgrade the quality of their parks.

The strike-everything amendment to H.B. 2074 clarifies that landlords may require removal of a mobile home from the mobile home park upon sale by a tenant if the mobile home does not meet the current requirements of the rules and regulations and statements of policy.

There is no anticipated fiscal impact to the state general fund impact associated with this measure.

Provisions

1. Clarifies that the landlord of a mobile home park may require removal of a mobile home from the park upon sale by a tenant if the mobile home does not meet the current requirements of the rules and regulations and statements of policy, including those pertaining to the size, age, condition and appearance of the mobile home, and exterior materials with which the home has been constructed.

2. Clarifies that new tenants who bring a mobile home into or purchase an existing mobile home in a mobile home park must comply with all current statements of policy and rules or regulations.

3. Specifies that a landlord may deny rental in a mobile home park if the mobile home does not meet the requirements of the rules and regulations of the landlord and the current statements of policy.

4. Provides for a general effective date.

JS/ac