Manufactured housing: conformity.

The legislative counsel's digest previously referenced two report deadlines ('by January 1, 2028, July 1, 2029') for the department's report on divided-tenure and leasehold homeownership arrangements. The enrolled version consolidates this to a single deadline of July 1, 2029.

The entire bill body was reformatted from amendment markup style (with 'line X' prefixes indicating changed lines) to clean enrolled text without line-number annotations. No substantive statutory language changes are visible in the Section 9102 definitions shown.

Removed Sections 18551.05 and 18551.06 of the Health and Safety Code, which would have authorized manufactured homes, mobilehomes, or commercial modulars to be classified as real property for titling and perfection of security interests, required recording of a Notice of Homesite Designation, and modified installation rules for permanent versus nonpermanent foundation systems.

Removed the provision modifying Section 18551 of the Health and Safety Code (Mobilehome Parks Act) that would have specified fixture/improvement installation applies to permanent foundation systems, removed deemed-compliance lease agreements, and expanded chattel installation authorization to nonpermanent foundation systems.

The divided-tenure and leasehold homeownership report deadline is changed from a single date of January 1, 2028 to two dates: January 1, 2028 and July 1, 2029, suggesting an initial report followed by an updated or expanded report.

The department is now required to 'contract with appropriate outside parties' to prepare the divided-tenure homeownership report, rather than simply consulting with entities like county assessors and recorders directly. The outside parties are the ones who shall consult with those entities.

The definition of 'manufactured home' in Commercial Code Section 9102(53) was changed from requiring a structure built on a permanent chassis meeting specific size thresholds to one constructed on or after June 15, 1976, with or without a foundation system, having the same meaning as defined in 42 USC Section 5402. This removes the permanent chassis requirement from the UCC definition.

Health and Safety Code Section 18007 was amended to update the definition of 'manufactured home' for that part, adding the June 15, 1976 construction date and specifying it is designed as a single-family dwelling with or without a foundation.

The Department of Housing and Community Development must, by July 1, 2027, review, revise, and adopt regulations to permit the construction, installation, sale, and occupancy of manufactured homes built without a permanent chassis in parity with those built with a permanent chassis. These regulations are exempt from Administrative Procedure Act rulemaking requirements.

The department must report to the Legislature by July 1, 2027 on the status of the above-described regulations.

The department must, by January 1, 2028, prepare and submit a report to the Legislature evaluating statutory and administrative changes necessary to regulate, finance, title, tax, and protect homeowners in divided-tenure and leasehold homeownership arrangements, consulting with county assessors and recorders.

The bill now amends Section 9102 of the Commercial Code and adds Sections 18025.7 and 18025.8 to the Health and Safety Code, expanding its reach beyond the original Mobilehome Parks Act provisions.

The bill title was expanded to reflect the additional Commercial Code and Health and Safety Code amendments, now covering both 'classification as real property' and 'conformity' of manufactured housing.

Section 18551.05(a)(2)(A) now specifies two acceptable forms of occupancy rights: (i) a lease or proprietary occupancy agreement with at least 15 years remaining that is not revocable at the lessor's discretion except for cause, or (ii) an occupancy agreement granting a perpetual right to occupy the homesite. Previously, the requirement was simply an 'exclusive, transferable occupancy right' without specifying minimum terms.

New paragraph (8) in Section 18551.05(a) requires that for units qualifying under subparagraph (A) of paragraph (2), the lease or proprietary occupancy agreement (or a recordable memorandum thereof) must be recorded with the county recorder prior to or concurrent with recording form HCD 433X.

Section 18551.05(a)(7) now requires that plot maps for units on nonprofit- or government-owned land be prepared by a licensed land surveyor and provided to each requesting homeowner as a legally required addendum to the recorded form HCD 433X. The description of each homesite must now be a 'legal description' sufficient to support conveyancing and perfection of security interests.

The lien provision in Section 18551.05(b) now covers occupancy interests described in subparagraphs (A) or (C) of paragraph (2), rather than only subparagraph (A). This expands the scope of what a mortgage or deed of trust can encumber to include exclusive renewable leases where the homeowner does not own the land.

Section 18551.05(b)(1) now explicitly states that a manufactured home classified under this section 'is a separate estate in real property,' which is a significant legal characterization that may affect how courts and lenders treat these properties.

Section 18551.05(a)(5) now requires a 'conformed certified copy' of the recorded form HCD 433X rather than just a 'conformed copy,' imposing a higher standard of documentation for title cancellation.

The state-mandated local program fiscal note now explicitly includes county assessors and county recorders in addition to local enforcement agencies, broadening the range of local entities subject to reimbursement obligations under the California Constitution.

Assembly Members Lee and Wicks were added as coauthors alongside Assembly Member Quirk-Silva, indicating broader legislative support for the bill.

All provisions related to taxation were removed. The bill no longer amends Section 5801 of the Revenue and Taxation Code, no longer requires the State Board of Equalization to issue a Letter to Assessors by July 1, 2027, and no longer classifies manufactured homes as real property for tax purposes. The Manufactured Home Property Tax Law exclusion was also removed.

Section 18551.07 was removed from the bill entirely. The bill now only adds Sections 18551.05 and 18551.06 to the Health and Safety Code, rather than three new sections.

For nonpermanent foundation system installations (Section 18551(b)), approval authority was narrowed from 'the department or the United States Department of Housing and Urban Development (HUD)' to only 'the department' (HCD). HUD is no longer listed as an approving body.

The term 'nonfixed real property' was changed to simply 'real property' in Section 18551, both in the introductory paragraph and in subdivision (b), simplifying the classification language for nonpermanent foundation installations.

The provision requiring that a deed of trust or mortgage encumbering a classified unit 'shall be taxed as real property' was removed from Section 18551.05(b). Only the lien-perfection language remains.

Assembly Member Quirk-Silva was added as a coauthor of the bill.

Removed the provision allowing a homeowner to satisfy the permanent foundation installation requirement (Section 18551(a)(1)(A)) by demonstrating a transferable exclusive occupancy right to the homesite. Previously, a lease or proprietary occupancy agreement of 35 years or more (or mutually agreed term) that was not revocable at the lessor's discretion except for cause was deemed sufficient. Now only ownership, title, or purchase of the real property qualifies.

Replaced the single requirement in Section 18551.05(a)(2) that a homeowner hold a transferable exclusive occupancy right under a lease or proprietary occupancy agreement with a remaining term of not less than 30 years. The new version provides three alternative options: (A) an exclusive transferable occupancy right that is only transferable with the sale of the home, (B) full, independently financed, or jointly financed ownership of the land underneath the homesite, or (C) an exclusive and renewable lease not terminable except for cause. Notably, option (C) does not specify a minimum term, making it broader than the prior 30-year requirement.

Removed the explicit savings clause stating that classification as real property under the bill's provisions does not alter, waive, or supersede underwriting, collateral, or securitization requirements of Fannie Mae (Federal National Mortgage Association) or Freddie Mac (Federal Home Loan Mortgage Corporation). The new version instead states only that classification does not alter rights and obligations under specified laws relating to mobilehomes when the unit is located in a mobilehome park.

The bill's section references changed from adding Sections 18551.06 and 18551.07 to adding Sections 18551.05 and 18551.06, indicating a renumbering of the new statutory sections added by the bill.

Senator Wahab was added as a coauthor alongside Senators Padilla, Allen, Caballero, and Reyes.

Commercial modulars are added throughout the bill alongside manufactured homes and mobilehomes, expanding the bill's applicability to a third category of housing unit.

Local agency restrictions are updated to specify that no local agency may require placement on a 'permanent foundation system' (rather than just 'a foundation system'), and commercial modulars are added to the units protected from such requirements.

A new distinction is drawn between permanent foundation systems (for fixture/improvement classification) and nonpermanent foundation systems (for chattel or nonfixed property installation). Installation on a nonpermanent foundation system as chattel or nonfixed real property now requires approval by HCD or HUD.

For units in parks owned by a 501(c)(3) organization or municipal government, the homeowner must now demonstrate that their homesite has an individually metered utility connection to either water or electric infrastructure.

In Section 18551.05, the mobilehome park pathway for real property classification without permanent foundation is now restricted to parks whose primary owner is a 501(c)(3) organization or a municipal government, narrowing which parks qualify.

New land-tenure options are added for real property classification: (B) land owned by a resident-owned community, and (C) land where the homeowner has full or financed ownership that is the same as ownership of the home itself.

The homeowner eligibility criteria in Section 18551.05 are restructured from a single 30-year lease requirement into three alternative conditions: (A) an exclusive transferable occupancy right only transferable with sale of the home, (B) full or financed ownership of the land, or (C) an exclusive renewable lease not terminable except for cause.