Mobilehomes Becoming Real Property

Senate Bill 996 (Padilla) would authorize the classification of a manufactured home or mobilehome as real property for purposes of titling, taxation, and the perfection of real property security interests if certain conditions are met. 

In order for such a classification to take place, 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. 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. The bill specifies that it is not 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.