ARIZONA STATE SENATE
Phoenix, Arizona
manufactured housing; assessment
(NOW: mobile homes; affidavit of
affixture)
Purpose
An emergency measure that outlines the
procedures for classifying a mobile home and a long-term lease to which it is
affixed as real property.
Background
Current law allows manufactured homes to be assessed as real property only if the home is permanently affixed to land that is owned and an affidavit of affixture is filed with the county recorder (A.R.S. 42-15202). However, manufactured homes that are affixed to leased land are assessed as personal property and are generally subject to higher rates of mortgage financing and property taxes than comparable homes assessed as real property.
H.B. 2263 allows a mobile home owner that leases the land the home is situated on for at least 20 years, to file an affidavit of affixture with a county recorder for purposes of treating the mobile home and the lease to which it is affixed as real property for all purposes except property tax.
There is no anticipated fiscal impact
to the state general fund associated with this measure.
Provisions
1.
Allows a person who owns a mobile home located in a mobile
home park on real property not owned by that person to file an affidavit of
affixture with a county recorder if all of the following conditions are met:
a) The mobile home has been
installed on the real property in compliance with mobile home installation standards.
b) A mobile home owner has
entered into a lease for the real property on which the mobile home is located
for at least 20 years and the lease permits the recording of an affidavit of
affixture.
c) Before filing the
affidavit of affixture, a memorandum of lease is recorded that includes
information about the landlord, tenant and the mobile home, a legal description
of the real property and the duration and terms of the lease.
2.
Specifies that a memorandum of lease is not valid unless
the signatures of both the landlord and the tenant are included and
acknowledged.
3.
Details the elements sufficient for a legal description of
the real property for a mobile home park with or without a plat recorded with
the county recorder.
4.
Allows a mobile home park to record a leasehold map which
must contain at least the legal description of the land compromising the mobile
home park and show the location and assigned number of each rental space. Specifies labeling requirements of the leasehold
map and the requirements of a legal description for a mobile home park with a
recorded leasehold map.
5.
Requires an affidavit of affixture to contain all of the
following:
a) The make, year, size,
manufacturers list price and vehicle identification numbers of the mobile home.
b) A legal description of
the real property to which the mobile home has been affixed.
c)
A statement that the mobile home has not been assessed and
taxed in this state as personal property or a document containing information
regarding the persons to whom the last tax statement for the mobile home was
sent.
d) The name of the holder
of any security interests in the mobile home not terminated by the consent of
the secured party that is contained in the affidavit of affixture and the
original amount secured by the security interest.
6.
Requires a receipt issued by the Arizona Department of
Transportation (ADOT) regarding a mobile home’s certificate of title be filed
with the county assessor where the affidavit of affixture was recorded.
7.
Specifies that recording an affidavit of affixture does
not impair the rights of a holder of a perfected security interest in the
mobile home unless the affidavit of affixture contains the acknowledged consent
of the secured party to the termination of the security interest.
8.
Requires a certificate of compliance or a waiver issued by
the Office of Manufactured Housing on a mobile home that enters this state for
sale or installation to be submitted with the affidavit of affixture.
9.
Allows a landlord under a lease who also owns the real
property on which a mobile home is located to record a notice and affidavit
terminating an affidavit of affixture if the lease has been terminated before
its expiration. Requires the landlord to attach to the notice and affidavit one
of the following:
a) An agreement executed
between the landlord and tenant terminating the lease.
b) A copy of a court
judgment for forcible detainer upholding the termination of the lease and
awarding possession to the landlord.
c) An affidavit of the
landlord stating the mobile home has been removed from the real property.
10.
Requires ADOT to retitle the mobile home to the owner on
presentation of specified documentation at any time after the landlord records
a terminating document of the affidavit of affixture.
11.
Requires a mobile home and the leasehold to which it is
affixed to be treated as real property and applies the mobile home parks
landlord and tenant act to a landlord and tenant owner of a mobile home.
12.
Requires that the owner of a mobile home be treated as the
owner of the real property to which the mobile home is affixed as long as the
affidavit of affixture remains effective.
13.
Requires a landlord and a successor tenant to execute an
amended memorandum of the lease if the identity of the tenant changes during
the term of the lease.
14.
Specifies that on recording the amended memorandum of
lease in the case of a new tenant, the successor tenant succeeds to the rights
and obligations of the owner under the affidavit of affixture.
15.
Requires a mobile home identified in an affidavit of
affixture to be assessed as personal property.
16.
Becomes effective upon signature of the Governor.
Amendments Adopted by the Commerce
Committee
1. Increases the number of years of a lease a mobile home owner must enter into from 15 to 20 years for the real property on which the mobile home is located in order for the mobile home owner to enter an affidavit of affixture.
2. Allows a mobile home park to record a leasehold map of a mobile home park, which must contain at least the legal description of the land compromising the mobile home park show the location and assigned number of each rental space.
3. Specifies labeling requirements of the leasehold map and the requirements of a legal description for a mobile home park with a recorded leasehold map.
4. Requires that an affidavit of affixture contain the vehicle make, year, size and manufacturer’s price.
5. Requires a receipt issued by the ADOT regarding a mobile home’s certificate of title be filed with the county assessor where the affidavit of affixture was recorded.
6. Removes the requirement that a mobile home and the real property to which it is affixed be assessed as real property until the affidavit is terminated. Requires a mobile home and the leasehold to which it is affixed to be treated as real property and applies the mobile home parks landlord and tenant act to a landlord and tenant mobile home owner.
7. Requires a mobile home identified in an affidavit of affixture to be assessed under the Department of Revenue guidelines for mobile homes.
8. Adds an emergency clause.
1. Requires a mobile home identified in an affidavit of affixture to be assessed as personal property pursuant to standard appraisal methods and techniques.
1. Requires a mobile home identified in an affidavit of affixture to be assessed as personal property rather than under Department of Revenue guidelines for mobile homes.
2. Finance amendment was withdrawn.
CED 3/18/02 DPA/SE 9-0-0-1 COM 4/17/02 DPA 5-0-1-0
WM 3/28/02 DPA/SE 8-0-0-2 FIN 4/22/02 DPA 6-0-2-0
3rd Read 04/08/02 49-1-10-0 3rd
Read 4/30/02 26-0-4-0
Prepared by Senate Staff
May 3, 2002