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Senate Bill 996 (Padilla) enacts the Manufactured Housing Real Property Modernization Act of 2026. The bill has passed the Senate and is pending in the Assembly Appropriations Committee. The bill expands state law to allow proprietary occupancy agreements and long-term land leases to qualify manufactured housing as real property for purposes of titling in resident-owned communities. It also provides that a home not placed on a permanent foundation may be classified as real property if it meets certain requirements, including among other things, that the homeowner possesses one of the following: a transferable, exclusive occupancy right to the homesite that is only transferable with the sale of the manufactured home, mobilehome, or commercial modular; full ownership of the land under their unit; or, an exclusive and renewable long-term lease not terminable except for just cause; or, an occupancy agreement with a perpetual right to occupy the mobilehome. The local enforcement agency would issue a certificate of occupancy for the unit and record a notice of installation on form 433X. HCD would then cancel any certificate of title or registration for the unit upon receipt of a conformed copy of the recorded form 433X.
The bill was amended on June 16th to provide that concurrent with the recording of form HCD 433X for any homesite subject to this section, the owner, park owner, community trust, or cooperative shall cause to be recorded with the county recorder a Notice of Homesite Designation. The notice must do all of the following: identify the property by assessor’s parcel number; identify the specific homesite to which the notice applies; state that the homesite is configured pursuant to a plot plan or site map approved or filed with the department under Title 25 of the California Code of Regulations, and; incorporate by reference the applicable plot plan or site map. Comments are closed.
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