House of Representatives

HB 2263

manufactured housing; assessment

Sponsors: Representatives Somers, Polestra: Blendu, Knaperek et. al

X	Committee on Committee on Commerce and Economic Development
	Committee on Committee on Ways and Means
	Caucus and COW
	Third Read
	As Passed the House

HB 2263 authorizes a mobile home owner to classify the mobile home as real property if the land that it is situated on is being leased for at least five years. The bill has a proposed strike-everything amendment on the same subject.

History

Laws 1997, Ch. 150 § 172 which took effect January 1, 1999, allows manufactured homes to be assessed as real property but only if (a) the home is permanently affixed to land which is owned and (b) an affidavit of affixture is filed with the county recorder.

Currently, manufactured homes that are permanently affixed to leased land are considered personal property and are therefore subject to higher rates of mortgage financing and property taxes than real property. HB 2263 classifies a mobile home that is permanently affixed to a leased parcel as real property if the lease or contract is for five or more years, and if a memorandum of lease and an affidavit of affixture have been filed.

Several states allow an individual to claim a manufactured home situated on leased land as real property.

Provisions

· Expands real property owned by the owner of the mobile home to include land that is leased or contracted for five or more years.

· Mandates that to be considered real property the owner must file a memorandum of lease with the county recorder in the county where the land is located.

· Requires that the memorandum of lease contain a legal description of the leased land.

· A fiscal note has been requested for this bill.

A Strike Everything Amendment Will Be Offered to HB 2263 With the Following Provisions:

· Allows a person who owns a mobile home located on leased land which they do not own to file an affidavit of affixture with the County Recorder if all if the following criteria are met:

1. The mobile home has been affixed to the property as required by state and local standards.

2. The term of the lease of the property is for at least 15 years and permits the recording of an affidavit of affixture.

3. Before filing the affidavit of affixture, a memorandum of lease is recorded that includes all of the following:

a. Names and addresses of the landlord and tenant.

b. Duration of the lease.

c. Terms and conditions of renewal.

d. Make, year, size and vehicle identification numbers (VIN) of the mobile home.

e. Legal description of real property where mobile home is located. Outlines requirements.

f. Acknowledged signatures of both landlord and tennant.

· Stipulates the requirements for an affidavit of affixture.

· States that the recording of an affidavit of affixture does not impair the rights of a holder of a perfected security interest unless the affidavit of affixture contains the acknowledged consent of the secured party of the termination of the security interest.

· Requires a certificate of compliance or waiver issued by the Office of Manufactured Housing if an affidavit of affixture is submitted for recording on a mobile home entering the state for sale or installation.

· Outlines requirements in the event that the lease is terminated, including notice and filing requirements.

· Stipulates procedures after completion of the filing in order to retitle the mobile home.

· Mandates an amended memorandum of lease if the identity of the tenant changes during the term of lease.

· Establishes that upon recording the amended memorandum of lease, the successor tenant is afforded the rights and obligations of the owner under the affidavit of affixture.

· Directs the mobile home and real property to which it is affixed to be assessed as real property (throughout the duration of the affidavit of affixture).

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45th Legislature

Second Regular Session 2 March 15, 2002

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