HB2778 - 561R - I Ver

 

 

 

REFERENCE TITLE: mobile home parks; operations; purchase

 

 

 

 

State of Arizona

House of Representatives

Fifty-sixth Legislature

First Regular Session

2023

 

 

 

HB 2778

 

Introduced by

Representatives Aguilar: Austin, Bravo, Hernandez L, Hernandez M, Ortiz, Sandoval

 

 

 

 

 

 

 

 

An Act

 

amending section 33-1413.01, Arizona Revised Statutes; amending title 33, chapter 11, article 1, Arizona Revised Statutes, by adding sections 33-1420 and 33-1420.01; amending title 33, chapter 11, article 2, Arizona Revised Statutes, by adding section 33-1439; amending sections 33-1476, 33-1481, 43-1022 and 43-1122, Arizona Revised Statutes; relating to the Arizona mobile home parks residential landlord and tenant act.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section  1. Section 33-1413.01, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1413.01. Utility charges; waste, garbage and rubbish removal charges

A. If A landlord charges separately for gas, water or electricity there shall be provide a separate meter for every user for gas, water and electricity. For each billing period the cost of the charges for the period shall be separately stated, along with the opening and the closing meter readings and the dates of the meter readings. Each bill shall show the computation of the charge generally in accordance with the serving utility company billing format for individual service supplied through a single service meter.

B. If the landlord separately charges for utilities, The landlord shall not charge more than the prevailing basic service single family single-family residential rate charged by the serving utility or provider.

C. For the purpose of regulating mobile home parks as public or consecutive water systems, the state shall not adopt rules pursuant to title 49, chapter 2, article 9,   that are more stringent than authorized by the federal government. Submetering solely to determine the charges for individual water use by park tenants for the purpose of water conservation, without other evidence indicating a transaction subject to regulation under title 49, chapter 2, article 9, shall not be used as a basis for treating any mobile home park as a public or consecutive water system.

D. A landlord may charge separately for removal of waste, garbage, rubbish, refuse and trash and for sewer services. Any charges for removal or sewer services may not exceed the prevailing single family single-family residential charge, fee or rate for these services levied by the political subdivision or provider. END_STATUTE

Sec.  2. Title 33, chapter 11, article 1, Arizona Revised Statutes, is amended by adding sections 33-1420 and 33-1420.01, to read:

START_STATUTE33-1420. Mobile home park opportunity to purchase; offers; exemption

A. A mobile home park owner may not make a final unconditional acceptance of any offer for the sale or other transfer of ownership of the mobile home park without first giving ninety days' notice of the following to each tenant:

1. That the mobile home park owner intends to sell the mobile home park.

2. The price, terms and conditions of an acceptable offer that the mobile home park owner has received to sell the mobile home park or the price, terms and conditions for which the mobile home park owner intends to sell the mobile home park.   On request, the mobile home park owner shall provide to the tenants a copy of the signed written offer.  

3. That the residents have the opportunity to purchase the mobile home park as prescribed by this section.

B. The mobile home park owner shall provide the notice required by subsection A of this section by certified mail, return receipt requested, to each tenant at the tenant's permanent address, to the city or town in which the mobile home park is located or, if none, the county in which the mobile home park is located and to the Arizona department of housing at its main office.   The Arizona department of housing, within five days after receiving the notice, shall provide a copy of the notice to any governmental body or nonprofit organization that has registered with the department to receive copies of those notices.

C. A group or association of tenants of the mobile home park or their assignees may submit to the mobile home park owner a proposed purchase and sale agreement within ninety days after the date that the mobile home park owner mails a notice prescribed by subsection A of this section.   On submittal of the proposed purchase and sale agreement, the group or association of tenants or their assignees have an additional ninety days from the date of the proposed purchase and sale agreement to obtain a binding commitment for any necessary financing or guarantees.   The group or association of tenants or their assignees must submit to the mobile home park owner reasonable evidence that the owners of at least fifty-one percent of the owner-occupied mobile homes in the mobile home park have approved the group or association purchasing the park.     During the time periods prescribed by this section, the mobile home park owner may not complete an unconditional sale of the mobile home park to another potential buyer.

D. A mobile home park owner that receives an offer pursuant to this section may not unreasonably refuse to:

1. Provide documents, data and other information in response to reasonable requests for information from a group or association of tenants or their assignees that are participating in the opportunity to purchase the mobile home park and that would enable them to prepare an offer.   The documents, data and other information provided to the tenants may be shared for the purposes of evaluating or obtaining financing for the prospective transaction, but all persons who receive the documents, data and other information shall otherwise keep them confidential if the mobile home park owner or the mobile home park owner's agent so requests.

2. Schedule a closing date for a purchase and sale agreement.

E. If, after a proposed purchase and sale agreement is submitted pursuant to subsection C of this section, the additional ninety-day period prescribed by subsection C of this section expires and a group or association of tenants or their assignees have not submitted to the mobile home park owner a binding financial commitment regarding the sale, the group's or association's opportunity to purchase that is provided by this section terminates.

F. A group or association of tenants or their assignees that have the opportunity to purchase may assign their purchase right to a local or state government, tribal government or housing authority, a nonprofit corporation with expertise related to housing or an agency of this state for the purpose of continuing to operate the property as a mobile home park.

G. A group or association of tenants or their assignees may submit an offer to purchase to a mobile home park owner at any time without regard to whether the mobile home park owner has RECEIVED, accepts or offers a sale as prescribed in subsection A of this section.   The mobile home park owner shall consider in good faith any offer made pursuant to this section.   The requirements of this section apply separately to each substantially different offer to sell or purchase the mobile home park.

H. Notwithstanding any provision of this section, a mobile home park owner is not required to provide notice or the opportunity to purchase to a group or association of tenants or their assignees if the sale, transfer or conveyance of the mobile home park is to any of the following:

1. A spouse, a partner in a civil union or a parent, sibling, aunt, uncle, first cousin or legally recognized child of the mobile home park owner.

2. A trust the beneficiaries of which are the spouse, partner in a civil union or legally recognized children of the mobile home park owner.

3. A business entity or trust that the transferring business entity or trust controls directly or indirectly.   For the purposes of this paragraph, "controls" means:

(a) Owns entirely as a subsidiary.

(b) Owns a majority interest.

(c) Owns as large of an ownership interest as any other owner, with a minimum ownership interest of twenty-five percent.

(d) Is owned by a family member who is included within the line of intestate succession if the mobile home park owner dies intestate.

(e) Is transferred between joint tenants or tenants in common.

4. An entity pursuant to eminent domain.

I. To qualify for an exemption under subsection H of this section, a transaction must not be made in bad faith, must be made for a legitimate business purpose or a legitimate familial purpose consistent with the exemptions prescribed by subsection H of this section and must not be made for the primary purpose of avoiding the opportunity to purchase provisions prescribed by this section.  

J. Notwithstanding any provision of the leases or other documents that govern the use and operation of the mobile home park, the duty to comply with this section is deemed an implied covenant of the lease agreement between the tenant and the mobile home park owner.END_STATUTE

START_STATUTE33-1420.01. Capital gains tax exclusion; sale of mobile home park; definition

A. Any capital gains income realized from the sale or exchange of a mobile home park is excluded from Arizona taxable income or gross income under title 43.  

B. To qualify for the exclusion under this section, the sale must be made to:

1. A tenants' association or a mobile home park residents' association.

2. A nonprofit organization under section 501(c)(3) of the internal Revenue Code that purchases a mobile home park on behalf of an association of tenants or mobile home park residents.

3. A county housing authority.

4. A municipal housing authority.

C. An individual, corporation or partnership, S corporation or disregarded entity qualifies for the exclusion under this section.   If the exclusion allowed under this section is taken by a partnership, S corporation or disregarded entity, the exclusion must be attributed to shareholders, partners or other owners using the same proportion used to report the partnership's, S corporation's or disregarded entity's income or loss for income tax purposes.

D. For the purposes of this section, "tenants' association" or "mobile home park residents' association" means an association of tenants in a mobile home park that has established bylaws for the association.END_STATUTE

Sec.  3. Title 33, chapter 11, article 2, Arizona Revised Statutes, is amended by adding section 33-1439, to read:

START_STATUTE33-1439. Heat mitigation measures

an owner or park manager may not prohibit a tenant from installing on or in the tenant's mobile home reasonably necessary cooling mechanisms or features to reduce energy costs and prevent the occupants' heat-related illness and death. These cooling mechanisms and features include temporary window-mounted ventilation or air conditioning units, wall-mounted mini-split air conditioners, commercial window coverings and other commercial cooling methods and sun barriers.END_STATUTE

Sec.  4. Section 33-1476, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1476. Termination or nonrenewal of rental agreement by landlord; noncompliance with rental agreement by tenant; failure to pay rent

A. The landlord shall specify the reason or reasons for the termination or nonrenewal of any tenancy in the mobile home park.   The reason or reasons relied on for the termination or nonrenewal shall be stated in writing with specific facts, so that the date, place and circumstances concerning the reason or reasons for termination or nonrenewal can be determined.   Reference to or recital of the language of this chapter, or both, is not sufficient compliance with this subsection.

B. The landlord may not terminate or refuse to renew a tenancy without good cause.   For the purposes of this subsection, "good cause" means:

1. Noncompliance with any provision of the rental agreement.

2. Nonpayment of rent.   NOTWITHSTANDING any provision in the lease agreement, Failure to pay parking or pet fees does not constitute nonpayment of rent and is not grounds for termination, nonrenewal or eviction.

3. Change in use of land.

4. Clear and convincing evidence that a tenant has repeatedly violated any provision of this chapter and established a pattern of noncompliance with such provisions.  

C. The landlord's right to terminate or to refuse to renew a tenancy pursuant to subsection B of this section does not arise until the landlord has complied with subsection D, E or H of this section.

D. Except as otherwise prohibited by law:

1. If there is a material noncompliance by the tenant with the rental agreement, the landlord shall deliver a written notice to the tenant specifying the acts and omissions constituting the breach and that the rental agreement will terminate upon on a date not less than thirty days after receipt of the notice if the breach is not remedied in fourteen days.   If the tenant remedies the situation within the time specified in the notice, the landlord shall issue a notice to the tenant releasing the tenant from the termination of rental agreement notice.

2. If there is a noncompliance by the tenant with section 33-1451 materially affecting health and safety, the landlord may deliver a written notice to the tenant specifying the acts and omissions constituting the breach and that the rental agreement will terminate upon on a date not less than twenty days after receipt of the notice if the breach is not remedied in ten days.   However, if the breach is remediable by repair or the payment of damages or otherwise, and the tenant adequately remedies the breach before the date specified in the notice, the rental agreement will not terminate. If the tenant remedies the situation within the time specified in the notice, the landlord shall issue a notice to the tenant releasing the tenant fro