Do residents have any rights to compensation for being dislocated when the park closes down?
Mobilehome park residents are entitled to receive one of two kinds of written notice before a mobilehome park
may legally close or convert to another type of land use:
(1) Where no local government permits are required to close or convert the park to another use, management
must give residents at least 12 months written notice of termination of tenancy. (Civil Code §798.56(g) (2) (B))
(2) Where local permits are required, which is usually the case, management must give residents a 60-day written
notice that park management will appear before a local board or planning commission to request permits for a
change of use. After all permits have been approved residents must then also receive a 6-month written notice of
termination of tenancy. (Civil Code §798.56(g) (1) and (2) (A))
Together with these notices, State law requires the park owner to also prepare and file a written report on the
impact of the closure or cessation of use of the mobilehome park with the local city or county government
authority (typically called a “Closure Impact Report” or “CIR”) (Govt. Code §65863.7). The CIR must be provided to
all residents of the park along with the above-described notices. (Civil Code §798.56(h)) Approval of the closure or
conversion of a mobilehome park to another use is conditioned upon approval of the CIR, so as to determine the
impact and effect the conversion will have on the residents’ dislocation and their ability to find alternative housing.
(Govt. §65863.7) Pursuant to significant amendments enacted by Assembly Bill 2782 effective January 1, 2020, CA
Government Code §65863.7 now reads as follows:
Requires that the CIR include a replacement and relocation plan that adequately mitigates the impact of the closure
or conversion upon the displaced residents; Requires the park owner to relocate the displaced residents to
alternative housing, or to pay to them the “in place” market value of the displaced resident’s mobilehome if
he/she/they cannot be relocated to adequate replacement housing (i.e. a fair market value ‘buy out’); Requires the
park owner to pay for, and include in the CIR, an appraisal by a state-certified appraiser which determines the inplace market value of the displaced resident’s mobilehome, if no relocation is possible.; and
Prohibits local authorities from approving any closure or change of use unless they find that it will not result in or
contribute to a shortage of affordable housing within the local jurisdiction.
The local government agency must hold a public hearing to review the CIR and determine its sufficiency, and shall
require management to pay the reasonable costs of relocation to displaced residents as a condition for obtaining
various permits to convert the park and develop the land for another use. Usually this takes several hearings and a
number of months. Actual relocation assistance afforded to residents is determined by the local government,
usually the planning commission or a delegated committee or agency of the commission. Many local governments
have enacted a mobilehome park closure or conversion ordinance which parallels the requirements of state law
and fills in the details of the required mitigation assistance, whether an actual relocation of the mobilehome or a
fair market value buy-out. Govt. Code §65863.7 establishes the minimum standard for local governments to follow,
but does not prevent them from enacting more stringent measures.
If the park is to be subdivided into individual parcels (where a conventional subdivision will replace the park) and
where a tentative or final map is required, the local government may impose even more stringent relocation
requirements. (Govt. Code §66427.4.) Any such ordinance is the final authority regarding any relocation assistance
to which displaced mobilehome owners may be entitled.
Recap:
● If no local permits are required for park closure or conversion, then the park must give residents at least 12
months advance written notice.
● If local permits are required for park closure or conversion, then the park must give residents 60 days notice of
any local hearings, followed by a 60-day written notice once permits are approved.
● The park owner must prepare, serve and file a written Closure Impact Report (“CIR”), which is publicly reviewed
and approved by the local government agency.
● The CIR must contain a relocation plan that mitigates the impact of the park closure or conversion upon the
residents, which provides that if a resident cannot be relocated to adequate housing he/she/they shall be paid the
in-place market value of their home pursuant to an appraisal prepared by a state-certified appraiser.
● The state Government Code establishes a minimum standard for local governments, which can enact their own
more stringent requirements for conversion or closure
● No conversion or closure can be approved unless the local government finds that it will not result in or materially
contribute to a shortage of affordable housing within the area.
