Assemblymember Cheryl R. Brown’s Bill to Protect Financing for Manufactured Homeowners Moves to Governor’s Desk SACRAMENTO - AB 379, a bill authored by Assemblymember Cheryl R. Brown (D-San Bernardino), successfully passed out of the Assembly and Senate unanimously and now moves to the governor’s desk to be signed into law. Manufactured homes (i.e. mobile homes), unlike traditional homes, must be built on a permanent chassis and have the ability to move to different locations. This creates an issue of whether manufactured homes are considered chattel or real property. For most lenders, manufactured homes are considered chattel, which can limit financing options for homeowners. AB 379 seeks to protect access to financing for manufactured homeowners. The bill was inspired by a recent court case, Vieira Enterprises v. City of East Palo Alto. Vieira Enterprises filed a lawsuit against its property owner for failing to pay fees associated with the delivery and installation of two manufactured homes on real property. The Court of Appeals ruled in opposition of Vieira Enterprises, citing that the company had no security interest in the homes because the homes were considered real property. This ruling allowed the borrower to forgo paying the balance of the home. Further, the ruling discouraged lending efforts to consumers interested in purchasing manufactured homes. By allowing manufactured homes to be converted into real property, AB 379 removes the legal ambiguity that resulted from the Vieira case and helps ensure that loans to consumers who purchase manufactured homes will continue to occur. “I look forward to Governor Brown signing this piece of legislation into law,” said Assemblymember Brown. “This bill will clear up any confusion that exists between whether a manufactured home is considered real property or personal property and ensure that consumers have access to reliable financing.”
Posted on: Mon, 12 Aug 2013 02:19:52 +0000
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