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<ns0:Description>
<ns0:Id>20250SB__099699INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-09</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>996</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Padilla</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Senators Allen, Caballero, and Reyes)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Padilla</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Caballero</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Reyes</ns0:Name>
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<ns0:Title> An act to amend Section 18551 of, and to add Sections 18551.05, 18551.06, and 18551.07 to, the Health and Safety Code, and to amend Section 5801 of the Revenue and Taxation Code, relating to manufactured housing. </ns0:Title>
<ns0:RelatingClause>manufactured housing</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Manufactured housing: classification as real property. </ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
The Mobilehome Parks Act requires the Department of Housing and Community Development to establish regulations for manufactured home, mobilehome, and commercial modular foundation systems. Existing law authorizes a manufactured home, mobilehome, or commercial modular to be installed on a foundation system as either a fixture or improvement to the real property if certain conditions are met. In this regard, existing law requires, among other things, a manufactured home, mobilehome, or commercial modular owner or licensed contractor to obtain a building permit from the appropriate enforcement agency before installing the manufactured home, mobilehome, or commercial modular on a foundation system by, among other things, submitting written evidence acceptable to the enforcement agency that the manufactured home, mobilehome, or commercial modular owner owns, holds
title to, or is purchasing the real property where the mobilehome is to be installed on a foundation system. Existing law specifies that a lease held by the owner, that is transferable, for the exclusive use of the real property where the manufactured home, mobilehome, or commercial modular is to be installed, is deemed to comply with that requirement if the lease is for a term of 35 years or more, or if fewer than 35 years, for a term mutually agreed upon by the lessor and lessee, and the term of the lease is not revocable at the discretion of the lessor except for cause, as specified. A willful violation of these provisions is a crime.
</html:p>
<html:p>This bill would authorize a manufactured home, mobilehome, and commercial modular owner or licensed contractor to also submit written evidence acceptable to the enforcement agency that the manufactured home, mobilehome, or commercial modular owner has a transferable exclusive occupancy right to the real property where the unit is to
be installed on a foundation system. The bill would also include a proprietary occupancy agreement held by the manufactured home, mobilehome, or commercial modular owner that meets the above-described criteria among the agreements described above that are deemed to comply with that requirement.</html:p>
<html:p>The bill would, in addition to the provisions described above, authorize a manufactured home or mobilehome to be classified as real property for purposes of titling, taxation, and the perfection of real property security interests, as specified, if certain conditions are met. In this regard, the bill would require, among other things, that the homeowner holds a transferable, exclusive occupancy right to the homesite under a lease or proprietary occupancy agreement with a remaining term of not fewer than 30 years, which is not revocable at the discretion of the lessor, except for cause, as specified. The bill would require a manufactured home or mobilehome classified as real
property pursuant to the bill’s provisions to be taxed as real property, and any deed of trust or mortgage encumbering the real property to constitute a lien upon the unit and the leasehold or other occupancy interest, as specified. The bill would specify that nothing in these provisions is to be construed to alter, waive, or supersede underwriting, collateral, or securitization requirements of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, as specified.</html:p>
<html:p>The bill would require the department, on or before January 1, 2028, to, among other things, adopt or update regulations, forms, and guidance to implement these provisions, as specified. The bill would require local enforcement agencies to, among other things, accept applications for installation and classification pursuant to the above-described provisions authorizing a manufactured home, mobilehome, or commercial modular to be installed on a foundation system as either a
fixture or improvement to the real property and the above-described provisions authorizing a manufactured home or mobilehome to be classified as real property. The bill would require the department upon recordation of certain forms relating to the above-described provisions to cancel registration of the manufactured home or mobilehome and to notify the county assessor.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The California Constitution requires that all property be taxed at the same percentage of fair market value, except as otherwise provided by the California Constitution or federal law, and establishes the State Board of Equalization with prescribed duties relating to taxes imposed on property under these provisions. Among other things, existing law requires the board to prescribe rules and regulations to govern local boards of equalization when equalizing, and assessors when assessing, and to prepare and issue instructions to assessors designed to promote uniformity
throughout the state and its local taxing jurisdictions in the assessment of property for the purposes of taxation, as provided.
</html:p>
<html:p>This bill would require the board, on or before July 1, 2027, to issue a Letter to Assessors and to update specified portions of the Assessors’ Handbook to reflect the changes made by this bill, as described above.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Existing law, The Manufactured Home Property Tax Law, establishes a process governing the taxation of manufactured homes, including mobilehomes, as defined. That law requires the county tax collector, upon application, to issue a tax clearance certificate or a conditional tax clearance certificate if specified requirements are met. Among other things, that law requires a tax clearance certificate issued to be used to permit registration of used manufactured homes and for other purposes prescribed by the Controller. That law excludes a manufactured home that has
become real property by being affixed to land on a permanent foundation system pursuant to The Mobilehome Parks Act and is taxed as all other real property is taxed.
</html:p>
<html:p>This bill would additionally exclude from The Manufactured Home Property Tax Law a manufactured home that has been classified as real property pursuant to the Mobilehome Parks Act under the bill’s provisions, as described above. The bill would require county assessors to accept certain forms relating to the classification of a manufactured home as real property pursuant to the above-described provisions as conclusive evidence for the classification of a manufactured home as real property under The Manufactured Home Property Tax Law.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The bill would make findings and declarations related to its provisions.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
By imposing additional duties on local enforcement agencies and
county assessors with respect to the regulation and taxation of manufactured housing, and by expanding the scope of a crime, this bill would impose a state-mandated local program.
</html:p>
<html:p>The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.</html:p>
<html:p>With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_65E56C94-018F-4F0C-9267-605CEC173D39">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_DECLARED" ns3:href="" ns3:label="" ns3:type="simple">
This act shall be known and may be cited as the
<ns0:DocName>Manufactured Housing Real Property Modernization Act of 2026</ns0:DocName>
.
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<ns0:Act>
<ns0:Preamble/>
<ns0:LawTitle>
Manufactured Housing Real Property Modernization Act of 2026
</ns0:LawTitle>
</ns0:Act>
</ns0:BillSection>
<ns0:BillSection id="id_59AD4BCE-1C2A-4ABD-A2B7-0D6245A12E28">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Manufactured homes provide a critical pathway to affordable, climate‑resilient homeownership across California, both within manufactured housing communities and on leased or trust-held land.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Although often referred to as “mobile,” manufactured homes are overwhelmingly permanent in practice. The State Board of Equalization Assessors’ Handbook Section 511 estimates that approximately 95 percent of manufactured homes never leave the site where they are first installed, and other reports indicate that over 90 percent remain in place throughout their useful life.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Existing law requires a manufactured home to be installed on a permanent foundation system and meet other requirements in order to obtain real property classification for titling and taxation, which can erect unnecessary barriers to financing and wealth-building for homeowners when homes are safely installed under the United States Department of Housing and Urban Development (HUD) standards but are not installed on a permanent foundation system.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) require a manufactured home, in order to be eligible for sale into the secondary mortgage market, to be legally classified as real property under state law and, for most executions, be permanently affixed to land on a permanent foundation, with title surrendered and liens perfected according to state procedure.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
It is the intent of the Legislature to expand the pathways for real property classification for manufactured homes, without compromising safety, by recognizing long-term, nonrevocable occupancy rights on leased or trust-held land and HUD-compliant installation, and to expressly preserve investor requirements for loans intended for sale to the secondary market.
</html:p>
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<ns0:BillSection id="id_3908B5FE-0E52-4FD3-A21A-05C5681D5374">
<ns0:Num>SEC. 3.</ns0:Num>
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Section 18551 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:Num>18551.</ns0:Num>
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<html:p>The department shall establish regulations for manufactured home, mobilehome, and commercial modular foundation systems that shall be applicable throughout the state. When established, these regulations supersede any ordinance enacted by any city, county, or city and county applicable to manufactured home, mobilehome, and commercial modular foundation systems. The department may approve alternate foundation systems to those provided by regulation if the department is satisfied of equivalent performance. The department shall document approval of alternate systems by its stamp of approval on the plans and specifications for the alternate foundation system. A manufactured home, mobilehome, or commercial modular may be installed on a foundation system as either a fixture or improvement to the real property, in accordance with subdivision (a), or a
manufactured home or mobilehome may be installed on a foundation system as a chattel, in accordance with subdivision (b).</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law, prior to a manufactured home, mobilehome, or commercial modular being deemed a fixture or improvement to the real property, the installation shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Prior to installation of a manufactured home, mobilehome, or commercial modular on a foundation system, the manufactured home, mobilehome, or commercial modular owner or a licensed contractor shall obtain a building permit from the appropriate enforcement agency. To obtain a permit, the owner or contractor shall provide the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Written evidence acceptable to the enforcement agency that the manufactured home, mobilehome, or commercial modular owner owns, holds title to,
is purchasing, or has a transferable, exclusive occupancy right to the real property where the unit is to be installed on a foundation system. A lease or proprietary occupancy agreement held by the manufactured home, mobilehome, or commercial modular owner, that is transferable,
for the exclusive use of the real property where the unit is to be installed, shall be deemed to comply with this paragraph if the lease or proprietary occupancy agreement is for a term of 35 years or more, or if fewer than 35 years, for a term mutually agreed upon by the lessor and lessee, and the term of the leaseor proprietary occupancy agreement
is not revocable at the discretion of the lessor except for cause, as described in subdivisions 2 to 5, inclusive, of Section 1161 of the Code of Civil Procedure. Notwithstanding Section 18555, a registered owner of a manufactured home or mobilehome in a mobilehome park that is converted or proposed to be converted to a resident-owned subdivision formed pursuant to Section 11010.8 of the Business and Professions Code, stock cooperative, as defined in Section 4190 of the Civil Code, or condominium project, as defined in Section 4125 of the Civil Code, may submit written evidence of that owner’s resident ownership in the mobilehome park in order to comply with this paragraph.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Written evidence acceptable to the enforcement agency that the registered owner owns the manufactured home, mobilehome, or commercial modular free of any liens or encumbrances or, in the event that the legal owner is not the registered owner, or liens and
encumbrances exist on the manufactured home, mobilehome, or commercial modular, written evidence provided by the legal owner and any lienors or encumbrancers that the legal owner, lienor, or encumbrancer consents to the attachment of the manufactured home, mobilehome, or commercial modular upon the discharge of any personal lien, that may be conditioned upon the satisfaction by the registered owner of the obligation secured by the lien.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Plans and specifications required by department regulations or a department-approved alternate for the manufactured home, mobilehome, or commercial modular foundation system.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The manufactured home, mobilehome, or commercial modular manufacturer’s installation instructions, or plans and specifications signed by a California-licensed architect or engineer covering the installation of an individual manufactured home, mobilehome, or commercial
modular in the absence of the manufactured home, mobilehome, or commercial modular manufacturer’s instructions.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Building permit fees established by ordinance or regulation of the appropriate enforcement agency.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A fee payable to the department in the amount of eleven dollars ($11) for each transportable section of the manufactured home, mobilehome, or commercial modular, that shall be transmitted to the department at the time the certificate of occupancy is issued with a copy of the building permit and any other information concerning the manufactured home, mobilehome, or commercial modular that the department may prescribe on forms provided by the department.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Within five business days of the issuance of the certificate of occupancy for the manufactured home, mobilehome, or
commercial modular by the appropriate enforcement agency, the enforcement agency shall record a document naming the owner of the real property, describing the real property with certainty, and stating that a manufactured home, mobilehome, or commercial modular has been affixed to that real property by installation on a foundation system pursuant to this subdivision. The document shall be recorded with the county recorder of the county where the real property, upon which the manufactured home, mobilehome, or commercial modular that has been installed, is situated.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
When recorded, the document referred to in subparagraph (A) shall be indexed by the county recorder to the named owner and shall be deemed to give constructive notice as to its contents to all persons thereafter dealing with the real property.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Fees received by the department pursuant to subparagraph (F) of
paragraph (1) shall be deposited in the Mobilehome-Manufactured Home Revolving Fund established under subdivision (a) of Section 18016.5.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The certification of title and other indicia of registration shall be surrendered to the department pursuant to regulations adopted by the department providing for the cancellation of registration of a manufactured home, mobilehome, or commercial modular that is permanently attached to the ground on a foundation system pursuant to this subdivision. For the purposes of this subdivision, permanent affixation to a foundation system shall be deemed to have occurred on the day a certificate of occupancy is issued to the manufactured home, mobilehome, or commercial modular owner and the document referred to in subparagraph (A) of paragraph (2) is recorded. Cancellation shall be effective as of that date and the department shall enter the cancellation on its records upon receipt of a copy of the certificate of
occupancy. This subdivision shall not be construed to affect the application of existing laws, or the department’s regulations or procedures with regard to the cancellation of registration, except as to the requirement therefor and the effective date thereof.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Once installed on a foundation system in compliance with this subdivision, a manufactured home, mobilehome, or commercial modular shall be deemed a fixture and a real property improvement to the real property to which it is affixed. Physical removal of the manufactured home, mobilehome, or commercial modular shall thereafter be prohibited without the consent of all persons or entities who, at the time of removal, have title to any estate or interest in the real property to which the manufactured home, mobilehome, or commercial modular is affixed.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
For the purposes of this subdivision:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“Physical removal” shall include, without limitation, the unattaching of the manufactured home, mobilehome, or commercial modular from the foundation system, except for temporary purposes of repair or improvement thereto.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Consent to removal shall not be required from the owners of rights-of-way or easements or the owners of subsurface rights or interests in or to minerals, including, but not limited to, oil, gas, or other hydrocarbon substances.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
At least 30 days prior to a legal removal of the manufactured home, mobilehome, or commercial modular from the foundation system and transportation away from the real property to which it was formerly affixed, the manufactured home, mobilehome, or commercial modular owner shall notify the department and the county assessor of the intended removal of the manufactured
home, mobilehome, or commercial modular. The department shall require written evidence that the necessary consents have been obtained pursuant to this section and shall require application for either a transportation permit or manufactured home, mobilehome, or commercial modular registration, as the department may decide is appropriate to the circumstances. Immediately upon removal, as defined in this section, the manufactured home, mobilehome, or commercial modular shall be deemed to have become personal property and subject to all laws governing the same as applicable to a manufactured home, mobilehome, or commercial modular.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The installation of a manufactured home or a mobilehome on a foundation system as chattel shall be in accordance with Section 18613 and shall be deemed to meet or exceed the requirements of Section 18613.4. This subdivision shall not be construed to affect the application of sales and use or property taxes. No
provisions of this subdivision are intended, nor shall they be construed, to affect the ownership interest of any owner of a manufactured home or mobilehome.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Once installed on a foundation system, a manufactured home, mobilehome, or commercial modular shall be subject to state-enforced health and safety standards for manufactured homes, mobilehomes, or commercial modulars enforced pursuant to Section 18020.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
No local agency shall require that any manufactured home, mobilehome, or commercial modular currently on private property be placed on a foundation system.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
No local agency shall require that any manufactured home or mobilehome located in a mobilehome park be placed on a foundation system.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
No local agency shall require, as a condition
for the approval of the conversion of a rental mobilehome park to a resident-owned park, including, but not limited to, a subdivision, stock cooperative, or condominium project for mobilehomes, that any manufactured home or mobilehome located there be placed on a foundation system. This subdivision shall only apply to the conversion of a rental mobilehome park that has been operated as a rental mobilehome park for a minimum period of five years.
</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 18551.05 is added to the
<ns0:DocName>Health and Safety Code</ns0:DocName>
, to read:
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<ns0:Num>18551.05.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
In addition to the pathway provided by Section 18551 for installation on a permanent foundation system, a manufactured home or mobilehome may be classified as real property for purposes of titling, taxation, and the perfection of real property security interests, notwithstanding that the manufactured home or mobilehome is not installed on a permanent foundation system, if all of the following conditions are satisfied:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The unit is delivered and installed in or on either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A mobilehome park or manufactured housing community subject to this part.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Land owned by a community land trust, as
defined in Section 214.18 of the Revenue and Taxation Code, or owned by a cooperative housing corporation, including a limited‑equity housing cooperative, as defined in Section 817 of the Civil Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The homeowner holds a transferable, exclusive occupancy right to the homesite under a lease or proprietary occupancy agreement with a remaining term of not less than 30 years, and the term of the lease is not revocable at the discretion of the lessor, except for cause, as described in subdivisions (2) to (5), inclusive, of Section 1161 of the Code of Civil Procedure.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The unit is installed, anchored, and skirted consistent with applicable construction and safety standards under the federal Manufactured Home Construction and Safety Standards (Part 3280 of Title 24 of the Code of Federal Regulations), installation standards under the federal Model Manufactured Home Installation
Standards (Part 3285 of Title 24 of the Code of Federal Regulations), and any additional state or local health and safety requirements, as verified by the applicable enforcement agency through permit and inspection.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The local enforcement agency issues a certificate of occupancy for the unit and records with the county recorder a notice of installation on the form HCD 433X created pursuant to Section 18551.06.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The department cancels any certificate of title or registration for the unit upon receipt of a conformed copy of the recorded form HCD 433X described in paragraph (4) and notifies the county assessor of the cancellation.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A manufactured home or mobilehome classified as real property pursuant to this section shall be taxed as real property, and any deed of trust or mortgage encumbering the real
property shall constitute a lien upon the unit and the leasehold or other occupancy interest described in paragraph (2) of subdivision (a).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Nothing in this section shall be construed to alter, waive, or supersede underwriting, collateral, or securitization requirements of the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). A mortgage intended for sale to Fannie Mae or Freddie Mac shall continue to require permanent foundation installation and any other investor requirements, including surrender or cancellation of any certificate of title and the perfection of a first lien on the manufactured home as part of the real property, consistent with those investors’ guides, unless otherwise altered.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
On or before January 1, 2028, the department shall adopt or update regulations, forms, and guidance to implement this
section, including the creation of the form HCD 433X pursuant to Section 18551.06 and instructions for applicable enforcement agencies and county recorders.
</html:p>
<html:p>
(e)
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For purposes of this section, “cooperative housing corporation” includes a resident‑owned community that owns the underlying land and issues proprietary leases or occupancy agreements conveying the exclusive right to occupy a homesite.
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 18551.06 is added to the
<ns0:DocName>Health and Safety Code</ns0:DocName>
, to read:
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<ns0:Num>18551.06.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
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(1)
<html:span class="EnSpace"/>
On or before January 1, 2028, the department shall update the form HCD 433A and related instructions to clarify acceptable land‑tenure evidence, including long‑term leases and proprietary occupancy agreements.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
On or before January 1, 2028, the department shall create the form HCD 433X, which shall be titled “Notice of Manufactured Home Installation—Real Property Classification Without Permanent Foundation,” for classification pursuant to Section 18551.1.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Local enforcement agencies shall accept applications for installation and classification pursuant to Sections 18551 and 18551.1 and shall record the applicable notice upon issuance of a
certificate of occupancy.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Upon recordation of a form HCD 433A or HCD 433X, the department shall cancel registration of the manufactured home or mobilehome and notify the county assessor.
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<ns0:Num>SEC. 6.</ns0:Num>
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Section 18551.07 is added to the
<ns0:DocName>Health and Safety Code</ns0:DocName>
, to read:
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<ns0:Num>18551.07.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On or before July 1, 2027, the State Board of Equalization shall issue a Letter To Assessors and update the Assessors’ Handbook Section 511 to reflect all of the following, as applicable:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Any changes to Section 18551 of the Health and Safety Code and Section 5801 of the Revenue and Taxation Code, as amended during the 2025–26 Regular Session of the Legislature.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The provisions of Sections 18551.05 and 18551.06, as added during the 2025–26 Regular Session of the Legislature, including examples addressing long‑term leasehold and cooperative proprietary lease scenarios under Section 18551.05.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
County
assessors shall accept a recorded form HCD 433A or HCD 433X as conclusive evidence for classification of a manufactured home as real property under Section 5801 of the Revenue and Taxation Code.
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<ns0:Num>SEC. 7.</ns0:Num>
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Section 5801 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
is amended to read:
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<ns0:Num>5801.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
As used in Part 0.5 (commencing with Section 50), Part 1 (commencing with Section 101), Part 2 (commencing with Section 201), and this part, “manufactured home” means a manufactured home as defined in Section 18007 of the Health and Safety Code or a mobilehome as defined in Section 18008 of the Health and Safety Code that:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Was first sold new on or after July 1, 1980.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Was, at the request of the owner, and following
their notification of the Department of Housing and Community Development and the assessor, made subject to taxation under this part.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
“Manufactured home,” as used in this part, does not include a manufactured home that has become real property by being affixed to land on a permanent foundation system pursuant to Section 18551 of the Health and Safety Code or by being classified as real property pursuant to Section 18551.1 of the Health and Safety Code, and is taxed as all other real property is taxed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Except as provided in
paragraph (1), a manufactured home, otherwise subject to taxation pursuant to this part, shall not be classified as real property for property taxation purposes that would be excluded from taxation pursuant to this part.
</html:p>
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</ns0:LawSection>
</ns0:Fragment>
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<ns0:Num>SEC. 8.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
<html:p>However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall
be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
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