HB2381 - 561R

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

Section 1. 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. "Good cause" means:

1. Noncompliance with any provision of the rental agreement.

2. Nonpayment of rent.

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 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. If within fourteen days of receipt of the notice of the breach the tenant presents to the landlord a signed contract with a contractor who is licensed pursuant to title 32, chapter 10 to correct the breach showing the breach will be repaired within sixty days of the notice, the landlord shall extend the time for repairs from fourteen days to sixty days.

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 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 from the termination of rental agreement notice.

3. If there is a noncompliance that is both material and irreparable and that occurs on the premises, including an illegal discharge of a weapon, homicide as prescribed in sections 13-1102 through 13-1105, criminal street gang activity as prescribed in section 13-105, activity as prohibited in section 13-2308, prostitution as defined in section 13-3211, the unlawful manufacturing, selling, transferring, possessing, using or storing of a controlled substance as defined in section 13-3451, threatening or intimidating as prohibited in section 13-1202, infliction of serious bodily harm, assault as prohibited in section 13-1203, criminal activity involving serious property damage or acts that have been found to constitute a nuisance pursuant to section 12-991, the landlord may deliver a written notice for immediate termination of the rental agreement and proceed pursuant to section 33-1485.

4. If a tenant engages in repetitive conduct that is the subject of notices under this subsection, after two incidents of the same type documented by the landlord within a twelve month period or after receipt by the landlord of two written complaints from other tenants about the repetitive conduct within a twelve month period, the landlord may deliver a written notice to the tenant specifying the repetitive conduct and the documentation and advising the tenant that on documentation of the next incident of the same type final notice will be given and the rental agreement or tenancy will be terminated thirty days after the date of the notice.

5. If a tenant has been involved in three or more documented incidents of conduct of any type described in this section within a twelve month period, the landlord may deliver a written notice to the tenant specifying the conduct and the documentation and advising the tenant that on documentation of the next incident final notice will be given and the rental agreement or tenancy will be terminated thirty days after the date of the notice.

E. If rent is unpaid when due and the tenant fails to pay rent within seven days after written notice by the landlord of nonpayment and the landlord's intention to terminate the rental agreement if the rent is not paid within that period of time, the landlord may terminate the rental agreement. Before judgment in an action brought by the landlord under this subsection, the tenant may have the rental agreement reinstated by tendering the past due but unpaid periodic rent, reasonable attorney's fees incurred by the landlord and court costs, if any.

F. Except as provided in this chapter, the landlord may recover actual damages, obtain injunctive relief or recover possession of the premises pursuant to an action in forcible detainer for repeated noncompliance by the tenant with the rental agreement or section 33-1451.

G. The remedy provided in subsection F of this section is in addition to any right of the landlord arising under subsection D of this section.

H. If a change in use is intended for the land on which a mobile home park or a portion of a mobile home park is located and the landlord intends eviction of a mobile home tenant due to a change in use, the landlord shall notify all tenants in the park in writing that:

1. The change in use may subsequently result in the termination of a rental agreement.

2. The tenant being terminated due to the change in use will receive a one hundred eighty day notice before the actual termination of the rental agreement. END_STATUTE

Sec. 2. Section 33-1476.01, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1476.01. Change in use; notices; compensation for moving expenses; payments by the landlord; applicability

A. The landlord shall notify the director and all tenants in writing of a change in use at least one hundred eighty days before the change in use. The landlord may not increase rent within ninety days before giving notice of a change in use.

B. The landlord shall inform all tenants in writing about the mobile home relocation fund established by section 33-1476.02.

C. If a tenant is required to move due to a change in use or redevelopment of the mobile home park, the tenant may do any of the following:

1. Collect payment from the mobile home relocation fund for the lesser of the actual moving expenses of relocating the mobile home to a new location that is within a one hundred-mile radius of the vacated mobile home park or the maximum of seven thousand five hundred dollars $12,500 for a single section mobile home or twelve thousand five hundred dollars $20,000 for a multisection mobile home. Moving expenses include the cost of stabilizing, taking down, moving and setting up the mobile home in the new location.

2. Abandon the mobile home in the mobile home park and collect an amount equal to one-fourth forty percent of the maximum allowable moving expense for that mobile home from the mobile home relocation fund. To qualify for abandonment payment pursuant to this paragraph, the tenant shall deliver to the landlord the current title to the mobile home with the notarized endorsement of the owner of record together with complete releases of all liens that are shown on the title and proof that all taxes owing on the mobile home have been paid to date. The tenant shall provide a copy of these documents to the Arizona department of housing in support of the tenant's application for payment. If the tenant chooses to abandon the mobile home pursuant to this paragraph, the landlord is exempt from making the payments to the fund prescribed in subsection D of this section.

3. If a mobile home is relocated to a location outside of the vacated mobile home park and, in the sole judgment of the director, the mobile home was ground set in the mobile home park from which it was removed, the tenant may collect additional monies not to exceed two thousand five hundred dollars $2,500 for the incremental costs of removing a ground-set mobile home. These monies are in addition to any monies provided pursuant to paragraph 1 of this subsection.

D. Except as provided in subsection C, paragraph 2 and subsection F of this section and section 33-1476.04, subsection D, if there is a change in use the landlord shall pay five hundred dollars $500 for each single section mobile home and eight hundred dollars $800 for each multisection mobile home relocated to the fund for each tenant filing for relocation assistance with the director.

E. If a change in use occurs before the time stated in the statements of policy and the landlord does not comply with subsection A of this section and with section 33-1436 and section 33-1476, subsection H, the landlord shall pay to the fund in addition to the monies prescribed in subsection D of this section:

1. Five hundred dollars $500 for each mobile home space occupied by a single-section mobile home.

2. Eight hundred dollars $800 for each mobile home space occupied by a multisection mobile home.

F. The landlord is not required to make the payments prescribed in subsections D and E of this section for moving mobile homes owned by the landlord or for moving a mobile home under a contract with the tenant if the tenant does not file for relocation assistance with the director.

G. If a change in use occurs within two hundred seventy days after relocations under section 33-1476.04, the landlord shall pay to the fund in addition to the monies prescribed in subsection D of this section:

1. Five hundred dollars $500 for each mobile home space occupied by a single section mobile home.

2. Eight hundred dollars $800 for each mobile home space occupied by a multisection mobile home.

H. The tenant shall submit a contract for relocation of a mobile home for approval to the director within sixty days after the relocation to be eligible for payment of relocation expenses. The director must approve or disapprove the contract within fifteen days after receipt of the contract, or the contract is deemed to be approved.

I. If the contract is approved, the payment of relocation expenses shall be made to the installer or contractor when both of the following are complete:

1. The installer or contractor obtains valid permits to move the mobile or manufactured home to a new location.

2. The installer or contractor provides documentation to the department that the installation of the mobile or manufactured home at the new location is complete and has been inspected by the department or its designee and is approved for occupancy.

J. If the contract is not approved, the tenant may appeal to an administrative law judge pursuant to title 41, chapter 37, article 5. The tenant shall provide notice pursuant to section 33-1451, subsection A, paragraph 6 if the tenant relocates.

K. If this state or a political subdivision of this state exercises eminent domain and the mobile home park is sold or a sale is made to this state or a political subdivision of this state that intends to exercise eminent domain, the state or political subdivision is responsible for the relocation costs of the tenants.

L. If a tenant is vacating the premises and has informed the landlord or manager before the change-in-use notice has been given, the tenant is not eligible for compensation under this section.

M. A person who purchases a mobile home already situated in a park or moves a mobile home into a park in which a change-in-use notice has been given is not eligible for compensation under this section.

N. After delivery of the one hundred eighty-day notice prescribed by subsection A of this section, the landlord and the tenants shall inform any prospective buyer or tenant that closure of the park is pending.

O. This section does not apply to a change in use if the landlord moves a tenant to another space in the mobile home park at the landlord's expense. END_STATUTE

Sec. 3. 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 33-1476.03 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 33-1476.05, 33-2149 and 33-2150. 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 shall 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. 4. Section 33-1476.03, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1476.03. Assessments for mobile home relocation fund; waiver

A. In order to provide monies for the mobile home relocation fund, each owner of a mobile home located in a mobile home park who does not own the land upon on which the mobile home is located shall pay each year to the state an assessment equal to a rate of fifty cents $.50 per one hundred dollars $100 of the taxable assessed valuation, derived by applying the applicable percentage specified in title 42, chapter 15, article 1 to the limited property value, for each mobile home the person owns. The county treasurer shall collect the assessment imposed by this subsection at the same time and in the same manner as personal property taxes. The county treasurer shall separately list the assessment on the tax roll and shall transfer the revenues collected to the state treasurer for deposit in the mobile home relocation fund. The county treasurer shall send to the state treasurer a written notice of the total taxable assessed valuation, derived by applying the applicable percentage specified in title 42, chapter 15, article 1 to the limited property value, of all mobile homes in the county on which the assessment prescribed by this section is assessed. The assessment constitutes a lien on the mobile home.

B. The director shall notify all county assessors to waive the assessment for any year if the monies in the fund exceed eight million dollars $8,000,000. The director shall send a copy of the notice to the county treasurers.

C. If at the end of a fiscal year the amount of monies in the relocation fund is less than six million dollars $6,000,000, the director may shall notify the county assessors to reinstate the assessment prescribed by this section. If the director notifies the county assessors, the director shall send a copy of the notice to the county treasurers. END_STATUTE

Sec. 5. Section 33-2149, Arizona Revised Statutes, is amended to read:

START_STATUTE33-2149. Change in use; notices; compensation for moving expenses; payments by the landlord; applicability

For recreational vehicles that are park trailers or park models only:

1. The landlord shall notify the director and all tenants in writing of a change in use at least one hundred eighty days before the change in use. The landlord may not increase rent within ninety days before giving notice of a change in use.

2. The landlord shall inform all tenants in writing about the mobile home relocation fund established by section 33-1476.02.

3. If a tenant is required to move due to a change in use or redevelopment of the park, the tenant may do any of the following:

(a) Collect payment from the mobile home relocation fund for the lesser of the actual moving expenses of relocating the park trailer or park model to a new location that is within a one hundred-mile radius of the vacated park or the maximum of four thousand dollars $6,000. Moving expenses include the cost of stabilizing, taking down, moving and setting up the park trailer or park model in the new location.

(b) Abandon the park trailer or park model in the park and collect an amount equal to one-fourth forty percent of the maximum allowable moving expense for that park trailer or park model from the mobile home relocation fund. To qualify for abandonment payment pursuant to this subdivision, the tenant shall deliver to the landlord the current title to the park trailer or park model with the notarized endorsement of the owner of record together with complete releases of all liens that are shown on the title and proof that all taxes owing have been paid to date. The tenant shall provide a copy of these documents to the Arizona department of housing in support of the tenant's application for payment. If the tenant chooses to abandon the park trailer or park model pursuant to this subdivision, the landlord is exempt from making the payments to the fund prescribed in paragraph 4 of this section.

(c) If a park trailer or park model is relocated to a location outside of the vacated park and, in the sole judgment of the director, the park trailer or park model was ground set in the park from which it was removed, the tenant may collect additional monies not to exceed two thousand five hundred dollars $2,500 for the incremental costs of removing a ground-set park trailer or park model. These monies are in addition to any monies provided pursuant to subdivision (a) of this paragraph.

4. Except as provided in paragraph 3, subdivision (b) and paragraph 6 of this section, if there is a change in use the landlord shall pay two hundred fifty dollars $250 for each park trailer or park model relocated to the fund for each tenant filing for relocation assistance with the director.

5. If a change in use occurs and the landlord does not comply with paragraph 1 of this section, the landlord shall pay to the fund in addition to the monies prescribed in paragraph 4 of this section two hundred fifty dollars $250 for each space occupied by a park trailer or park model.

6. The landlord is not required to make the payments prescribed in paragraphs 4 and 5 of this section for moving a park trailer or park model owned by the landlord or for moving a park trailer or park model under a contract with the tenant if the tenant does not file for relocation assistance with the director.

7. The tenant shall submit a contract for relocation of a park trailer or park model for approval to the director within sixty days after the relocation to be eligible for payment of relocation expenses. The director must approve or disapprove the contract within fifteen days after receipt of the contract, or the contract is deemed to be approved.

8. If the contract is approved, the payment of relocation expenses shall be made to the installer or contractor when both of the following are complete:

(a) The installer or contractor obtains valid permits to move the park trailer or park model to a new location.

(b) The installer or contractor provides documentation to the department that the installation of the park trailer or park model at the new location is complete and has been inspected by the department or its designee and is approved for occupancy.

9. If the contract is not approved, the tenant may appeal to an administrative law judge pursuant to title 41, chapter 37, article 5. The tenant shall provide notice pursuant to section 33-2105, subsection I, if the tenant relocates.

10. If this state or a political subdivision of this state exercises eminent domain and the park is sold or a sale is made to this state or a political subdivision of this state that intends to exercise eminent domain, the state or political subdivision is responsible for the relocation costs of the tenants.

11. If a tenant is vacating the premises and has informed the landlord or manager before the change-in-use notice has been given, the tenant is not eligible for compensation under this section.

12. A person who purchases a park trailer or park model already situated in a park or moves a park trailer or park model into a park in which a change-in-use notice has been given is not eligible for compensation under this section.

13. This section does not apply to a change in use if the landlord moves a tenant to another space in the park at the landlord's expense. END_STATUTE

Sec. 6. Retroactivity

This act applies retroactively to from and after April 15, 2022.

Sec. 7. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.