HB2515 - 541R

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

Section 1. Section 33-1476.02, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1476.02. Mobile home relocation fund; investment of monies

A. The mobile home relocation fund is established consisting of monies collected pursuant to sections 33‑1476.01, 33‑1476.03, 33‑1478, 33‑2149 and 33‑2151 and any surcharge collected pursuant to section 33‑1437. The director shall administer the fund.

B. Fund monies shall be used as prescribed in sections 33‑1476.04 and 41‑4008 and to pay premiums and other costs of purchasing, from a private insurer who is licensed to transact insurance business in this state, insurance coverage for tenant relocation costs due to a change in use as prescribed in sections 33‑1476.01 and 33‑2149. Any insurance rebates shall be deposited in the fund. If such insurance is not available, or if the insurance costs exceed the amount available from the fund, the fund shall be used to make direct payments for tenant relocation costs. Monies in the fund in excess of the amount required for these purposes shall be used, as necessary, to support the Arizona department of housing's administration of the hearing function pursuant to section 41‑4062 and the Arizona department of housing's administration of section 33‑1437, subsection C.

C. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund. Any unexpended and unencumbered monies remaining in the fund at the end of the fiscal year do not revert to the state general fund but remain in the fund, separately accounted for, as a contingency reserve.

D. The director may adopt, amend or repeal rules pursuant to title 41, chapter 6 for the administration of the fund. Fund monies shall be paid to the Arizona department of housing to offset the costs of administering the fund, including the direct and indirect costs of processing applications for reimbursement submitted under section 41‑4008 and administering the direct and indirect costs of section 33‑1437, subsection C. The attorney general shall review the costs charged to the fund. END_STATUTE

Sec. 2. Section 33-1478, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1478. Remedies for abandonment; required registration; liens; notice; lien sales; purchase; definitions

A. If the tenant abandons the mobile home unit on a mobile home space, it is incumbent upon the landlord to locate the legal owner or lienholder of the mobile home unit within ten days and communicate to him his may notify the owner of record and lienholder of record of their liability for any costs incumbered incurred by the landlord for the mobile home space for such that mobile home unit, including rent and utilities due and owing. However, the landlord shall be is entitled to a maximum of sixty days' rent due prior to before notice to the lienholder. Any and all costs shall then become are the responsibility of the legal owner or lienholder of the mobile home. The mobile home unit may not be removed from the mobile home space without a signed written agreement from the mobile home park landlord, owner or manager showing clearance for removal, showing all monies due and owing paid in full, or an some other agreement for removal that is reached with the legal owner and the landlord.

B. A required standardized registration form shall be filled out by each mobile home space renter, upon on mobile home space rental, showing mobile home make, year, serial number and license number if any be are legally required. , and also showing if The registration form must also state whether the mobile home is paid for, if whether there is a lien on the mobile home, and if so the lienholder, and who is the legal owner of the mobile home unit. The registration cards or forms shall be kept on file with the park management as long as the mobile home is on the mobile home space within in the park. Notice shall be given to park management within ten days of any changes in a new lien, changes of existing lien or settlement of lien.

c. NOTWITHSTANDING SECTION 33-1480, a LANDLORD's LIEN attaches to a mobile home when it is placed on the rental premises and extends to all amounts prescribed by this section. THE LIEN is not AFFECTED BY ANY TRANSFER OR ENCUMBRANCE OF THE MOBILE HOME and the landlord's lien remains on the mobile home if removed from the rental premises without paying the LANDLORD'S lien. THE LIEN DOES NOT APPLY TO THE TENANT'S HOUSEHOLD GOODS.

D. The landlord has a lien on the mobile HOME for all of the following:

1. Except as prescribed in subsection A of this section, all rent that is due and unpaid with any late fees or unpaid utility bills and any taxes on the mobile home that have been paid by the landlord.

2. Any additional amounts awarded to the landlord in an eviction JUDGMENT and reasonable ATTORNEY fees incurred in processing the LANDLORD'S lien notices and sale.

3. Postage for all notices and FEES incurred for requests, searches and inspections to obtain a report from the department of transportation or its authorized third-party agents.

4. Any costs associated with removing the mobile home pursuant to SUBSECTION I of this section and restoring the rental premises.

E. AFTER A MOBILE HOME HAS BEEN ABANDONED, THE LANDLORD MAY notify THE OWNER OF RECORD and the lienholder of record that the landlord has TERMINATed ANY RIGHT TO KEEP THE mobile HOME ON THE rental premises AND DEMANDs PAYMENT OF ALL amounts DUE and that a sale of the mobile home may OCCUR. THE NOTICE SHALL BE SENT BY CERTIFIED MAIL TO THE OWNER OF RECORD and the lienholder of record and shall contain at least the following:

1. the name and address of the owner of record and lienholder of record.

2. the name, address and telephone number of the landlord or the landlord's agent.

3. A statement of the full amount due to the landlord as of the date of the NOTICE.

4. If known, the mobile home MANUFACTURER and the mobile home vehicle identification number.

F. Before completion of the landlord's lien sale of the mobile home:

1. The tenant, the mobile home owner or any lienholder of record may pay and satisfy the LANDLORD'S lien in full and remove the mobile home from the rental premises.

2. If the landlord releases or PROVIDES Written clearance for REMOVAL of the mobile home, or both, to the TENANT, the mobile home owner or any lienholder of record, the landlord is not liable to the tenant, mobile home owner or lienholder or any other person.

3. A person may not remove FIXTURES, built-in APPLIANCES, appurtenances or building components of the mobile home.

g. The landlord may FORECLOSE its lien and sell the mobile home pursuant to section 33-1023 after providing notice as prescribed in subsection E of this section. A lANDLORD'S lien sale may not be held any earlier than seventy-Two days after mailing the notice prescribed in SUBSECTION E of this section.

H. IF A LANDLORD'S LIEN SALE IS HELD UNDER THIS SECTION:

1. WITHIN TEN DAYS AFTER THE SALE, THE SELLER SHALL PROVIDE THE PURCHASER WITH A COPY OF ANY NOTICE ISSUED PURSUANT TO THIS SECTION AND A BILL OF SALE THAT contains THE DATE OF SALE and THE PURCHASE PRICE and LISTS THE NAME AND ADDRESS OF THE PREVIOUS TENANT AND THE NAME AND ADDRESS OF THE PURCHASER.

2. THE PURCHASER may OBTAIN TITLE TO THE MOBILE HOME FROM THE DEPARTMENT OF TRANSPORTATION, FREE AND CLEAR OF ALL LIENS AND ENCUMBRANCES, INCLUDING THOSE OF RECORD, by presenting DOCUMENTATION OF COMPLIANCE WITH THis section.

3. THE SELLER SHALL DISTRIBUTE THE PROCEEDS IN THE FOLLOWING MANNER AND IN THE FOLLOWING ORDER:

(a) TO SATISFY THE LANDLORD'S LIEN.

(b) TO SATISFY THE VALID CLAIMS OF ANY LIENHOLDER of record BY the EARLIEST DATE OF RECORD.

(c) TO PAY ANY REMAINING PROCEEDS TO THE FORMER OWNER OF THE MOBILE HOME ON DEMAND, or THE SELLER MAY SATISFY ITS LIEN AND DEPOSIT THE BALANCE OF THE PROCEEDS WITH THE Arizona DEPARTMENT OF HOUSING.

4. Not later than ninety days after the date of the sale, deposit any unclaimed proceeds with the Arizona department of housing.

I. If a FIRE DEPARTMENT OR RESPONSIBLE CODE ENFORCEMENT AGENCY determines in writing that a mobile home is SUBSTANTIALLY DAMAGED OR DESTROYED BY FIRE OR OTHER casualty ON THE SPACE and UNLESS WORK IS BEGUN within twenty days after the CASUALTY OCCURS TO RESTORE THE mobile HOME TO A HABITABLE CONDITION, THE LANDLORD SHALL NOTIFY the TENANT, THE LIENHOLDER OF RECORD AND THE OWNER OF RECORD to REMOVE the mobile home FROM THE rental premises WITHIN THIRTY DAYS after MAILING the notice by certified mail. The notice to the tenant, OWNER and lienholder SHALL INCLUDE A COPY OF THE WRITTEN DETERMINATION OF SUBSTANTIAL DAMAGE OR DESTRUCTION RECEIVED FROM THE FIRE DEPARTMENT OR CODE ENFORCEMENT AGENCY. IF THE mobile home is not removed WITHIN the THIRTY‑DAY period, THE LANDLORD MAY REMOVE OR DEMOLISH THE HOME and its contents AND SHALL NOTIFY THE DEPARTMENT OF TRANSPORTATION OF THE removal or DEMOLITION. A LANDLORD THAT COMPLIES WITH THIS SUBSECTION IS NOT LIABLE to an owner, lienholder, tenant or other third PARTY FOR the removal or demolition.

J. A purchaser who acquires TITLE TO A MOBILE HOME that contains no personal property at a landlord's lien sale IS NOT REQUIRED TO STORE any PERISHABLE ITEMS, PLANTS OR ANIMALS. AT THE purchaser's DISCRETION, THE purchaser MAY REMOVE AND DISPOSE OF ANY PERSONAL PROPERTY IN THE MOBILE HOME THAT IS CONTAMINATED OR MAY BE CONSIDERED A BIOHAZARD OR that POSES A HEALTH AND SAFETY RISK. AT THE purchaser's DISCRETION, the purchaser MAY IMMEDIATELY REMOVE AND RELEASE TO A SHELTER OR BOARDING FACILITY. THE PURCHASER IS NOT LIABLE FOR ANY ACTION TAKEN IN GOOD FAITH RELATED TO THE REMOVAL, RELEASE, SEIZURE OR CARE OF THE ABANDONED ANIMALS PURSUANT TO THIS subSECTION. FOR PERSONAL PROPERTY HAVING SOME APPARENT VALUE, THE purchaser:

1. MAY STORE THE PERSONAL PROPERTY on the premises if allowed by the landlord or off the premises. THE purchaser SHALL NOTIFY THE TENANT OF THE LOCATION OF THE PERSONAL PROPERTY BY SENDING A NOTICE TO THE TENANT and the landlord BY CERTIFIED MAIL at the address listed on the bill of sale.

2. SHALL HOLD THE PERSONAL PROPERTY FOR FOURTEEN CALENDAR DAYS AFTER OBTAINING TITLE TO THE MOBILE HOME. THE purchaser SHALL USE REASONABLE CARE IN MOVING and HOLDING THE TENANT'S PERSONAL PROPERTY. IF THE purchaser HOLDS THE PROPERTY FOR THIS PERIOD AND THE TENANT does not make a REASONABLE EFFORT TO RECOVER IT, THE purchaser MAY DONATE THE PERSONAL PROPERTY TO A QUALIFYING CHARITABLE ORGANIZATION AS DEFINED IN SECTION 43‑1088 OR to an OTHERWISE RECOGNIZED CHARITY, OR MAY SELL THE PROPERTY. ANY TAX BENEFIT ASSOCIATED WITH THE DONATION OF THE PERSONAL PROPERTY BELONGS TO THE TENANT. IF THE purchaser SELLS THE PROPERTY, THE purchaser SHALL RETAIN THE PROCEEDS AND APPLY THEM TOWARD THE purchaser's ACTUAL AND REASONABLE COSTS OF HOLDING, MOVING AND DISPOSING OF THE PERSONAL PROPERTY. Notice of aNY EXCESS PROCEEDS SHALL BE MAILED TO THE TENANT AT THE TENANT'S ADDRESS listed on the bill of sale.

3. IF THE TENANT does not claim the excess proceeds within ninety days after the date of the notice, THE purchaser SHALL PAY ANY EXCESS PROCEEDS TO THE Arizona DEPARTMENT OF HOUSING TO BE DEPOSITED IN THE MOBILE HOME RELOCATION FUND ESTABLISHED BY SECTION 33-1476.02, IDENTIFYING THE NAMES OF THE FORMER OWNER, LANDLORD AND MOBILE HOME PARK IN WHICH THE MOBILE HOME CONTAINING THE PERSONAL PROPERTY WAS LOCATED.

4. THE purchaser MAY DESTROY OR OTHERWISE DISPOSE OF SOME OR ALL OF THE PERSONAL PROPERTY IF THE purchaser REASONABLY DETERMINES THAT THE VALUE OF THE PROPERTY IS SO LOW THAT THE COST OF MOVING, storing AND CONDUCTING A PUBLIC SALE EXCEEDS THE AMOUNT THAT WOULD BE REALIZED FROM THE SALE.

5. A purchaser THAT COMPLIES WITH THIS SECTION IS NOT LIABLE TO THE TENANT OR ANY THIRD PARTY FOR ANY LOSS THAT RESULTS FROM MOVING, STORING OR DONATING ANY PERSONAL PROPERTY from THE MOBILE HOME.

K. THE purchaser SHALL KEEP ADEQUATE RECORDS OF THE OUTSTANDING AND UNPAID RENT AND THE SALE OF THE TENANT'S PERSONAL PROPERTY FOR TWELVE MONTHS AFTER THE SALE.

L. IF THE TENANT NOTIFIES THE purchaser IN WRITING ON OR BEFORE THE DATE THE purchaser SELLS OR OTHERWISE DISPOSES OF THE PERSONAL PROPERTY THAT THE TENANT INTENDS TO REMOVE THE PERSONAL PROPERTY FROM THE MOBILE HOME OR THE PLACE OF SAFEKEEPING, THE TENANT HAS FIVE DAYS TO RECLAIM THE PERSONAL PROPERTY. TO RECLAIM THE PERSONAL PROPERTY THE TENANT MUST PAY FOR only THE COSTS ASSOCIATED WITH REMOVAL AND STORAGE FOR THE PERIOD THE TENANT'S PERSONAL PROPERTY WAS STORED. FIVE DAYS AFTER THE TENANT provides a written offer TO PAY THE APPLICABLE STORAGE OR REMOVAL COSTS, THE purchaser MUST SURRENDER POSSESSION OF THE PERSONAL PROPERTY IN THE purchaser'S POSSESSION TO THE TEnaNT ON THE TENANT'S PAYMENT of the costs. IF THE purchaser FAILS TO SURRENDER POSSESSION OF THE PERSONAL PROPERTY TO THE TENANT, THE TENANT MAY obtain a court order to RECOVER THE POSSESSIONS OR AN AMOUNT EQUAL TO THE DAMAGES DETERMINED BY THE COURT IF THE LANDLORD HAS DESTROYED OR DISPOSED OF THE POSSESSIONS BEFORE THE FOURTEEN DAYS prescribed IN THIS SECTION OR AFTER THE TENANT'S OFFER TO PAY.

M. NOTWITHSTANDING subSECTIONS H, I, J, K AND L OF THIS SECTION, IF THE TENANT GIVES THE LANDLORD TITLE TO THE MOBILE HOME AND THERE IS PERSONAL PROPERTY REMAINING IN THE MOBILE HOME, THE LANDLORD MAY IMMEDIATELY REMOVE AND DISPOSE OF THE PERSONAL PROPERTY WITHOUT LIABILITY TO THE TENANT OR A THIRD PARTY UNLESS THE LANDLORD AND TENANT HAVE AGREED IN WRITING TO SOME OTHER TREATMENT OF THE PROPERTY.

N. Before a landlord's lien sale occurs, A TENANT OR FORMER TENANT WHO IS THE OWNER OF RECORD OF A MOBILE HOME THAT IS THE SUBJECT OF A LANDLORD's LIEN SALE INITIATED UNDER THIS SECTION MAY PETITION THE Arizona DEPARTMENT OF HOUSING if the landlord is not complying with this section and the Arizona DEPARTMENT of housing shall hold A HEARING UNDER SECTION 41‑4062 ON THE SINGLE ISSUE OF WHETHER THE LANDLORD IS IN COMPLIANCE WITH THIS SECTION. THE DEPARTMENT SHALL IMMEDIATELY REFER THE PETITION TO THE OFFICE OF ADMINISTRATIVE HEARINGS AND ON BEING NOTIFIED OF THIS ACTION THE LANDLORD SHALL DEFER A LANDLORD's LIEN SALE until FINAL DETERMINATION OF THE ISSUE. The office of administrative HEARINGS shall schedule the HEARING at THE EARLIEST POSSIBLE TIME ON THAT SINGLE ISSUE AND THE DECISION OF THE ADMINISTRATIVE hearing officer SHALL BE ANNOUNCED AT THE CONCLUSION OF THE HEARING AND is BINDING ON THE PARTIES. IF THE ANNOUNCED DECISION IS IN FAVOR OF THE LANDLORD, THE SALE MAY PROCEED. IF THE DECISION IS IN FAVOR OF THE TENANT, THE PENDING SALE SHALL BE CANCELED WITHOUT PREJUDICE FOR THE LANDLORD TO INITIATE A NEW LANDLORD LIEN SALE PROCESS UNDER THIS SECTION. A PERSON AGGRIEVED BY A DECISION OF THE ADMINISTRATIVE LAW jUDGE MAY APPEAL A FINAL ADMINISTRATIVE DECISION PURSUANT TO TITLE 12, CHAPTER 7, ARTICLE 6.

O. A LANDLORD who bids AT A SALE CONDUCTED pursuant to THIS SECTION SHALL BID THE FULL AMOUNT OF THE VALUE OF THE LANDLORD LIEN AND may NOT BID LESS THAN THAT AMOUNT IN an effort TO CREATE A DEFICIENCY BALANCE.

P. A LANDLORD OF A MOBILE HOME PARK that is CLOSED BY ACTION OF A public safety or CODE ENFORCEMENT AGENCY DUE TO violations OF HEALTH AND SAFETY CODES BY THE LANDLORD has no RIGHTS UNDER THIS SECTION.

Q. Any monies deposited with the Arizona department of housing as prescribed in this section shall be DEPOSITED in the mobile home relocation fund established by section 33-1476.02. The person that deposits the proceeds shall mail notice of the deposit to all persons who were required to RECEIVE notice in a seller's notice of sale or a purchaser's NOTICE of excess proceeds. At any time within two years after the date of the DEPOSIT with the Arizona DEPARTMENT of housing, if the tenant, mobile home owner or any lienholder of record at the time of the sale ESTABLISHES the right to any of the proceeds to the satisfaction of the director of the Arizona DEPARTMENT of housing, the DEPARTMENT shall release to the applicant the applicant's proceeds.

R. For any notice given to the owner of record or the lienholder of record, the names and addresses listed on the department of transportation's records constitute the owner and lienholder entitled to notice if the records are dated not more than ten days before any notice required by this section. A transfer or encumbrance of any interest in the mobile home after the issuance of a department of transportation report does not affect the validity of the notice or any sale conducted and does not require any additional notice to any person whose name did not appear on the report.

S. For the purposes of this SECTION:

1. "ABANDONED" MEANS either of the following:

(a) That RENT FOR THE rental remises IS OUTSTANDING AND UNPAID FOR MORE than sixty days AND THERE IS NO REASONABLE EVIDENCE THAT THE TENANT IS OCCUPYING THE MOBILE HOME.

(b) That the MOBILE HOME remains on the rental premises AFTER ENTRY OF A JUDGMENT OF EVICTION AND execution of A WRIT OF RESTITUTION.

2. "lienholder of record" or "owner of record" means the persons listed on the records of the department of transportation as the owner or lienholder on a REPORT FOR the mobile home that is dated not more than ten days before any NOTICE required by this section. END_STATUTE

Sec. 3. Section 41-4006, Arizona Revised Statutes, is amended to read:

START_STATUTE41-4006. Preemption of local building codes; responsibility for maintenance of utility connections; mobile home violations

A. No A building code or local enforcement agency or its adopted building codes may not require, as a condition of entry into or sale in any county or municipality, that any unit that has been certified pursuant to this chapter be subjected to any local enforcement inspection to determine compliance with any standard covering any aspect of the unit that is inspected pursuant to this article.

B. Except where a local enforcement agency participates in the office permit and certificate issuance program for the installation of manufactured homes, mobile homes, factory‑built buildings and accessory structures and inspection of such installations, no A local enforcement agency shall may not subject any unit installed to any local inspections or charge a fee for any services provided pursuant to this article.

C. A local enforcement agency in any county or municipality shall recognize the minimum standards of the act as equal to any nationally accepted or locally adopted building code standard.

D. Nothing in Subsection A, B or C of this section shall does not prevent the application of local codes and ordinances governing zoning requirements, fire zones, building setback, maximum area and fire separation requirements, site development and property line requirements and requirements for on‑site utility terminals for factory‑built buildings, manufactured homes and mobile homes.

E. Notwithstanding any other provision of this section, the owner of a manufactured home or mobile home located in a park subject to title 33, chapter 11 is responsible for the maintenance of utility connections from any outlets furnished by the landlord pursuant to section 33‑1434 to the unit, except that the landlord is responsible for the maintenance of connections for any distance greater than twenty‑five feet to the point at which the utility connections are the property of the providing utility company if the outlet is located outside the lot line of the owner's unit and is more than twenty‑five feet from the unit. A local enforcement agency that determines that local code requirements are not being met or that maintenance or safety activities are needed for utility connections may not require anyone except the responsible party to perform or pay for such activities.

F. A building code enforcement agency or other local enforcement agency may not cite or otherwise REQUIRE a mobile home park owner to correct any violation relating to a mobile home as defined in section 33‑1409 that is located in a mobile home park as defined in section 33‑1409 unless the mobile home park owner is also the owner of record of the mobile home. Any citation for a violation or other similar action may be issued only to the owner of record of the mobile home as shown in the records of the DEPARTMENT of TRANSPORTATION. END_STATUTE