SB 996

SB996:v95#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 996

An act to amend Section 18551 of, and to add Sections 18551.05 and 18551.06 to, the Health and Safety Code, relating to manufactured housing.

LEGISLATIVE COUNSEL'S DIGEST

SB 996, as amended, Padilla. Manufactured housing: classification as real property.

(1) The Mobilehome Parks Act requires the Department of Housing and Community Development to establish regulations for manufactured home, mobilehome, and commercial modular foundation systems. Existing law authorizes a manufactured home, mobilehome, or commercial modular to be installed on a foundation system as either a fixture or improvement to the real property if certain conditions are met. In this regard, existing law requires, among other things, a manufactured home, mobilehome, or commercial modular owner or licensed contractor to obtain a building permit from the appropriate enforcement agency before installing the manufactured home, mobilehome, or commercial modular on a foundation system by, among other things, submitting written evidence acceptable to the enforcement agency that the manufactured home, mobilehome, or commercial modular owner owns, holds title to, or is purchasing the real property where the mobilehome is to be installed on a foundation system. Existing law specifies that a lease held by the owner, that is transferable, for the exclusive use of the real property where the manufactured home, mobilehome, or commercial modular is to be installed, is deemed to comply with that requirement if the lease is for a term of 35 years or more, or if fewer than 35 years, for a term mutually agreed upon by the lessor and lessee, and the term of the lease is not revocable at the discretion of the lessor except for cause, as specified. A willful violation of these provisions is a crime.

This bill would specify that the authorization to install a manufactured home, mobilehome, or commercial modular as either a fixture or improvement to the real property applies to permanent foundation systems. The bill would remove the agreements that are deemed to comply with the requirement that the owner or contractor provide written evidence that the manufactured home, mobilehome, or commercial modular owner owns, holds title to, or is purchasing the real property where the mobilehome is to be installed.

Existing law authorizes a manufactured home or mobilehome to be installed on a foundation system as chattel, in accordance with specified requirements, including that the installation is in accordance with certain permitting requirements.

This bill would expand that authorization to apply to the installation of a manufactured home, mobilehome, or commercial modular as chattel or property, and would specify that the authorization applies to nonpermanent foundation systems. The bill would require that the Department of Housing and Community Development approve the installation for purposes of the above-described permitting requirements.

The bill would, in addition to the provisions described above, authorize a manufactured home, mobilehome, or commercial modular to be classified as real property for purposes of titling and the perfection of real property security interests, as specified, if certain conditions are met. In this regard, the bill would require, among other things, that at least one of certain criteria are met regarding the homeowner, including that the homeowner holds an exclusive, transferable occupancy right to the homesite that is only transferrable with the sale of the manufactured home, mobilehome, or commercial modular. homesite, as provided. The bill would require any deed of trust or mortgage encumbering a manufactured home, mobilehome, or commercial modular classified as real property pursuant to the bill’s provisions to constitute a lien upon the unit and the leasehold or other occupancy interest, as specified. The bill would specify that classification as real property pursuant to these provisions does not alter, waive, or diminish rights and obligations under specified laws relating to mobilehomes when the manufactured home, mobilehome, or commercial modular is located in a mobilehome park. The bill would require, for any homesite subject to the authorization described above, the owner, park owner, community, trust, or cooperative to cause to be recorded, among other things, a Notice of Homesite Designation, as provided.

The bill would require the department, on or before January 1, 2028, to, among other things, adopt or update regulations, forms, and guidance to implement these provisions, as specified. The bill would require local enforcement agencies to, among other things, accept applications for installation and classification, as provided, pursuant to the above-described provisions authorizing a manufactured home, mobilehome, or commercial modular to be installed on a permanent foundation system as either a fixture or improvement to the real property or to be installed on nonpermanent foundation as chattel or nonfixed real property, and the above-described provisions authorizing a manufactured home, mobilehome, or commercial modular to be classified as real property. The bill would require the department upon recordation of certain forms relating to the above-described provisions to cancel registration of the manufactured home, mobilehome, or commercial modular and to notify the county assessor.

(2) The bill would make findings and declarations related to its provisions.

(3) By imposing additional duties on local enforcement agencies agencies, county assessors, and county recorders with respect to the regulation of manufactured housing, and by expanding the scope of a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

This act shall be known and may be cited as the Manufactured Housing Real Property Modernization Act of 2026.

Manufactured Housing Real Property Modernization Act of 2026

SEC. 2.

The Legislature finds and declares all of the following:

(a) Manufactured homes provide a critical pathway to affordable, climate‑resilient homeownership across California, both within manufactured housing communities and on leased or trust-held land.

(b) Although often referred to as “mobile,” manufactured homes are overwhelmingly permanent in practice. The State Board of Equalization Assessors’ Handbook Section 511 estimates that approximately 95 percent of manufactured homes never leave the site where they are first installed, and other reports indicate that over 90 percent remain in place throughout their useful life.

(c) Existing law requires a manufactured home to be installed on a permanent foundation system and meet other requirements in order to obtain real property classification for titling and taxation, which can erect unnecessary barriers to financing and wealth-building for homeowners when homes are safely installed under the United States Department of Housing and Urban Development (HUD) standards but are not installed on a permanent foundation system.

(d) The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) require a manufactured home, in order to be eligible for sale into the secondary mortgage market, to be legally classified as real property under state law and, for most executions, be permanently affixed to land on a permanent foundation, with title surrendered and liens perfected according to state procedure.

(e) It is the intent of the Legislature to expand the pathways for real property classification for manufactured homes, without compromising safety, by recognizing long-term, nonrevocable occupancy rights on leased or trust-held land and HUD-compliant installation, and to expressly preserve investor requirements for loans intended for sale to the secondary market.

SEC. 3.

Section 18551 of the Health and Safety Code is amended to read:

18551.

The department shall establish regulations for manufactured home, mobilehome, and commercial modular foundation systems that shall be applicable throughout the state. When established, these regulations supersede any ordinance enacted by any city, county, or city and county applicable to manufactured home, mobilehome, and commercial modular foundation systems. The department may approve alternate foundation systems to those provided by regulation if the department is satisfied with equivalent performance. The department shall document approval of alternate systems by its stamp of approval on the plans and specifications for the alternate foundation system. A manufactured home, mobilehome, or commercial modular may be installed on a permanent foundation system as either a fixture or improvement to the real property, in accordance with subdivision (a), or a manufactured home, mobilehome, or commercial modular may be installed on a nonpermanent foundation system as either chattel or real property, in accordance with subdivision (b).

(a) Notwithstanding any other law, prior to a manufactured home, mobilehome, or commercial modular being deemed a fixture or improvement to the real property, the installation shall comply with all of the following:

(1) Prior to installation of a manufactured home, mobilehome, or commercial modular on a permanent foundation system, the manufactured home, mobilehome, or commercial modular owner or a licensed contractor shall obtain a building permit from the appropriate enforcement agency. To obtain a permit, the owner or contractor shall provide the following:

(A) Written evidence acceptable to the enforcement agency that the manufactured home, mobilehome, or commercial modular owner owns, holds title to, or is purchasing the real property where the unit is to be installed on a permanent foundation system. Notwithstanding Section 18555, a registered owner of a manufactured home, mobilehome, or commercial modular in a mobilehome park that is converted or proposed to be converted to a resident-owned subdivision formed pursuant to Section 11010.8 of the Business and Professions Code, stock cooperative, as defined in Section 4190 of the Civil Code, or condominium project, as defined in Section 4125 of the Civil Code, may submit written evidence of that owner’s resident ownership in the mobilehome park in order to comply with this paragraph.

(B) Written evidence acceptable to the enforcement agency that the registered owner owns the manufactured home, mobilehome, or commercial modular free of any liens or encumbrances or, in the event that the legal owner is not the registered owner, or liens and encumbrances exist on the manufactured home, mobilehome, or commercial modular, written evidence provided by the legal owner and any lienors or encumbrancers that the legal owner, lienor, or encumbrancer consents to the attachment of the manufactured home, mobilehome, or commercial modular upon the discharge of any personal lien, that may be conditioned upon the satisfaction by the registered owner of the obligation secured by the lien.

(C) Plans and specifications required by department regulations or a department-approved alternate for the manufactured home, mobilehome, or commercial modular foundation system.

(D) The manufactured home, mobilehome, or commercial modular manufacturer’s installation instructions, or plans and specifications signed by a California-licensed architect or engineer covering the installation of an individual manufactured home, mobilehome, or commercial modular in the absence of the manufactured home, mobilehome, or commercial modular manufacturer’s instructions.

(E) Building permit fees established by ordinance or regulation of the appropriate enforcement agency.

(F) A fee payable to the department in the amount of eleven dollars ($11) for each transportable section of the manufactured home, mobilehome, or commercial modular, that shall be transmitted to the department at the time the certificate of occupancy is issued with a copy of the building permit and any other information concerning the manufactured home, mobilehome, or commercial modular that the department may prescribe on forms provided by the department.

(2) (A) Within five business days of the issuance of the certificate of occupancy for the manufactured home, mobilehome, or commercial modular by the appropriate enforcement agency, the enforcement agency shall record a document naming the owner of the real property, describing the real property with certainty, and stating that a manufactured home, mobilehome, or commercial modular has been affixed to that real property by installation on a permanent foundation system pursuant to this subdivision. The document shall be recorded with the county recorder of the county where the real property, upon which the manufactured home, mobilehome, or commercial modular that has been installed, is situated.

(B) When recorded, the document referred to in subparagraph (A) shall be indexed by the county recorder to the named owner and shall be deemed to give constructive notice as to its contents to all persons thereafter dealing with the real property.

(C) Fees received by the department pursuant to subparagraph (F) of paragraph (1) shall be deposited in the Mobilehome-Manufactured Home Revolving Fund established under subdivision (a) of Section 18016.5.

(3) The certification of title and other indicia of registration shall be surrendered to the department pursuant to regulations adopted by the department providing for the cancellation of registration of a manufactured home, mobilehome, or commercial modular that is permanently attached to the ground on a permanent foundation system pursuant to this subdivision. For the purposes of this subdivision, permanent affixation to a permanent foundation system shall be deemed to have occurred on the day a certificate of occupancy is issued to the manufactured home, mobilehome, or commercial modular owner and the document referred to in subparagraph (A) of paragraph (2) is recorded. Cancellation shall be effective as of that date and the department shall enter the cancellation on its records upon receipt of a copy of the certificate of occupancy. This subdivision shall not be construed to affect the application of existing laws, or the department’s regulations or procedures with regard to the cancellation of registration, except as to the requirement therefor and the effective date thereof.

(4) Once installed on a permanent foundation system in compliance with this subdivision, a manufactured home, mobilehome, or commercial modular shall be deemed a fixture and a real property improvement to the real property to which it is affixed. Physical removal of the manufactured home, mobilehome, or commercial modular shall thereafter be prohibited without the consent of all persons or entities who, at the time of removal, have title to any estate or interest in the real property to which the manufactured home, mobilehome, or commercial modular is affixed.

(5) For the purposes of this subdivision:

(A) “Physical removal” shall include, without limitation, the unattaching of the manufactured home, mobilehome, or commercial modular from the permanent foundation system, except for temporary purposes of repair or improvement thereto.

(B) Consent to removal shall not be required from the owners of rights-of-way or easements or the owners of subsurface rights or interests in or to minerals, including, but not limited to, oil, gas, or other hydrocarbon substances.

(6) At least 30 days prior to a legal removal of the manufactured home, mobilehome, or commercial modular from the permanent foundation system and transportation away from the real property to which it was formerly affixed, the manufactured home, mobilehome, or commercial modular owner shall notify the department and the county assessor of the intended removal of the manufactured home, mobilehome, or commercial modular. The department shall require written evidence that the necessary consents have been obtained pursuant to this section and shall require application for either a transportation permit or manufactured home, mobilehome, or commercial modular registration, as the department may decide is appropriate to the circumstances. Immediately upon removal, as defined in this section, the manufactured home, mobilehome, or commercial modular shall be deemed to have become personal property and subject to all laws governing the same as applicable to a manufactured home, mobilehome, or commercial modular.

(b) The installation of a manufactured home, mobilehome, or commercial modular on a nonpermanent foundation system as either chattel or real property shall be approved by the department in accordance with Section 18613 and shall be deemed to meet or exceed the requirements of Section 18613.4. This subdivision shall not be construed to affect the application of sales and use or property taxes. No provisions of this subdivision are intended, nor shall they be construed, to affect the ownership interest of any owner of a manufactured home, mobilehome, or commercial modular.

(c) Once installed on a foundation system, a manufactured home, mobilehome, or commercial modular shall be subject to state-enforced health and safety standards for manufactured homes, mobilehomes, or commercial modulars enforced pursuant to Section 18020.

(d) No local agency shall require that any manufactured home, mobilehome, or commercial modular currently on private property be placed on a permanent foundation system.

(e) No local agency shall require that any manufactured home, mobilehome, or commercial modular located in a mobilehome park be placed on a permanent foundation system.

(f) No local agency shall require, as a condition for the approval of the conversion of a rental mobilehome park to a resident-owned park, including, but not limited to, a subdivision, stock cooperative, or condominium project for mobilehomes, that any manufactured home, mobilehome, or commercial modular located there be placed on a permanent foundation system. This subdivision shall only apply to the conversion of a rental mobilehome park that has been operated as a rental mobilehome park for a minimum period of five years.

SEC. 4.

Section 18551.05 is added to the Health and Safety Code, to read:

18551.05.

(a) In addition to the pathway provided by Section 18551 for installation on a permanent foundation system, a manufactured home, mobilehome, or commercial modular may be classified as real property for purposes of titling and the perfection of real property security interests, notwithstanding that the manufactured home, mobilehome, or commercial modular is not installed on a permanent foundation system, if all of the conditions in paragraphs (1) to (7), (8), inclusive, are satisfied:

(1) The unit is delivered and installed in or on any of the following:

(A) A mobilehome park or manufactured housing community whose primary owner is an organization that qualifies under Section 501(c)(3) of the United States Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) or a municipal government.

(B) Land owned by a community land trust, as defined in Section 214.18 of the Revenue and Taxation Code, owned by a resident-owned community, or owned by a cooperative housing corporation, including a limited‑equity housing cooperative, as defined in Section 817 of the Civil Code.

(C) Land that has full ownership or financed ownership that is the same as the ownership of the manufactured home, mobilehome, or commercial modular.

(2) Any of the following apply to the homeowner:

(A) The homeowner holds an exclusive, transferable occupancy right to the homesite that is only transferable with the sale of the manufactured home, mobilehome, or commercial modular. under either of the following:

(i) A lease or proprietary occupancy agreement with a remaining term of not less than 15 years, and the term of the lease is not revocable at the discretion of the lessor, except for cause, as described in paragraphs (2) to (5), inclusive, of Section 1161 of the Code of Civil Procedure, that is only transferable with the sale of the manufactured home, mobilehome, or commercial modular.(ii) An occupancy agreement with a perpetual right to occupy the homesite.

(B) The homeowner has full, independently financed, or jointly financed with the home, ownership of the land underneath the homesite.

(C) The homeowner holds an exclusive and renewable lease to the homesite in which the homeowner possesses no ownership of the land underneath the homesite, and which is not terminable except for cause, as described in subdivisions (2) to (5), inclusive, of Section 1161 of the Code of Civil Procedure.

(3) The unit is installed, anchored, and skirted consistent with applicable construction and safety standards under the federal Manufactured Home Construction and Safety Standards (Part 3280 of Title 24 of the Code of Federal Regulations), installation standards under the federal Model Manufactured Home Installation Standards (Part 3285 of Title 24 of the Code of Federal Regulations), and any additional state or local health and safety requirements, as verified by the applicable enforcement agency through permit and inspection.

(4) The local enforcement agency issues a certificate of occupancy for the unit and records with the county recorder a notice of installation on the form HCD 433X created pursuant to Section 18551.06.

(5) The department cancels any certificate of title or registration for the unit upon receipt of a conformed certified copy of the recorded form HCD 433X described in paragraph (4) and notifies the county assessor of the cancellation. Prior to the cancellation of any certificate of title or registration for the unit pursuant to this paragraph, the homeowner shall provide written evidence acceptable to the department that the registered owner owns the manufactured home or mobilehome free of any personal property liens or encumbrances or, in the event that the legal owner is not the registered owner, or personal property liens and encumbrances exist on the manufactured home or mobilehome, written evidence provided by the legal owner and any lienors or encumbrancers that the legal owner, lienor, or encumbrancer consents to the classification of the manufactured home or mobilehome as real property upon the discharge of any personal lien, that may be conditioned upon the satisfaction by the registered owner of the obligation secured by the lien.

(6) For units placed on homesites that are in a mobilehome park, manufactured housing community, or commercial modular housing community whose primary owner is an organization that qualifies under Section 501(c)(3) of the United States Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) or a municipal government, the homeowner shall also demonstrate that their homesite has an individually metered utility connection to either water or electric infrastructure.

(7)Prior to, or concurrent with, the recording of any form HCD 433X for any homesite subject to this section, the owner, park owner, community, trust, or cooperative shall have caused to be recorded with the county recorder of the county in which the property is located a plot plan, as required under Title 25 of the California Code of Regulations for park communities. For nonpark communities, the following may be submitted in lieu of a plot plan, and shall be submitted with any department-filed plot plan that is missing this information:

(7) For units qualifying under subparagraph (A) or (B) of paragraph (1), prior to, or concurrent with, the recording of any form HCD 433X, the landowner, owner or operator of the park, community, trust, or cooperative, as applicable, shall have provided, to each homeowner requesting reclassification as real property for the purposes of titling, a copy of the plot map, as verified by local or state agencies enforcing Section 1105 of Title 25 of the California Code of Regulations, as a legally required addendum to the recorded instrument form HCD 433X. The plot map shall include all of the following:

(A) The boundaries of the overall parcel or parcels comprising the park, community, or trust- or cooperative-held land, or individually owned homesite. land, on a plat map, as prepared by a licensed land surveyor.

(B) Verification by the department or a local agency of the required four corner markers for The boundaries of each individual homesite within the park, community, or trust- or cooperative-held land, identified by a unique lot or space number corresponding to the designations used in lease or proprietary occupancy agreements. In addition, for self-owned land, a verification through the department or a local agency for the home being located on the homesite indicated as part of this recording. agreements, as required under Section 1105 of Title 25 of the California Code of Regulations.

(C) All common areas, roadways, and utility easements.

(D) For park communities, a A legal description of each homesite sufficient to support conveyancing and the perfection of security interests for the home-only unit to be placed on the homesite. interests.

(8) For units qualifying under subparagraph (A) of paragraph (2), the lease or proprietary occupancy agreement, or a memorandum thereof in a form sufficient for recording, shall be recorded with the county recorder of the county in which the real property is situated prior to, or concurrent with, the recording of the form HCD 433X.

(b) The deed of trust or mortgage encumbering a manufactured home, mobilehome, or commercial modular classified as real property pursuant to this section shall constitute a lien upon the unit and the leasehold or other occupancy interest described in subparagraph subparagraphs (A) or (C) of paragraph (2) of subdivision (a).

(1) A manufactured home, mobilehome, or commercial modular classified under this section is a separate estate in real property and, as classified pursuant to this section, may be encumbered by a mortgage or deed of trust recorded in the official records of the county, subject to the restrictions and obligations imposed by this chapter and any recorded agreement. If the homeowner qualifies under subparagraphs (A) or (C) of paragraph (2) of subdivision (a), the unit shall constitute a separate estate in real property. Any deed of trust or mortgage shall constitute a lien upon the unit and the leasehold or other occupancy interest described in subparagraphs (A) or (C) of paragraph (2) of subdivision (a), and may be recorded in the official records of the county. A mortgage, deed of trust, or other lien recorded against the unit shall only encumber the unit, including any transferable occupancy right appurtenant to the home, and shall not attach to, or encumber, the mobilehome park owner’s fee or leasehold estate absent the mobilehome park owner’s separate and express consent.

(2) A manufactured home classified pursuant to this section may be treated as a fixture solely for the limited purpose of perfecting and enforcing a mortgage or deed of trust against the home itself, and shall not, by reason of that treatment, be deemed to accede to the underlying real property or to authorize removal upon foreclosure, except as expressly provided by statute or recorded agreement. If the homeowner qualifies under subparagraph (B) of paragraph (2) of subdivision (a), the unit shall be deemed a fixture and improvement to the real property to which it is affixed and shall not constitute a separate estate. Any deed of trust or mortgage shall constitute a lien upon the unit and the underlying real property as a single interest. Physical removal of the unit shall be subject to the requirements of paragraphs (4) to (6), inclusive, of subdivision (a) of Section 18551, applied as though the unit were installed on a permanent foundation system.

(3) A mortgage, deed of trust, or other lien recorded against the manufactured home, mobilehome, or commercial modular shall only encumber the manufactured home, mobilehome, or commercial modular, including any transferable occupancy right appurtenant to the home, and shall not attach to, or encumber, the mobilehome park owner’s fee or leasehold estate absent the mobilehome park owner’s separate, express, and recorded separate and express consent.

(c) Classification as real property pursuant to this section does not alter, waive, or diminish any rights and obligations under the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code) when the manufactured home, mobilehome, or commercial modular is located in a mobilehome park.

(d) On or before January 1, 2028, the department shall adopt or update regulations, forms, and guidance to implement this section, including the creation of the form HCD 433X pursuant to Section 18551.06 and instructions for those submitting the form and applicable enforcement agencies and county recorders. agencies.

(e) (1) Concurrent with the recording of form HCD 433X for any homesite subject to this section, the owner, park owner, community trust, or cooperative shall cause to be recorded with the county recorder a Notice of Homesite Designation. The notice shall do all of the following:(A) Identify the property by assessor’s parcel number.(B) Identify the specific homesite to which the notice applies.(C) State that the homesite is configured pursuant to a plot plan or site map approved or filed with the department under Title 25 of the California Code of Regulations.(D) Incorporate by reference the applicable plot plan or site map.(2) A copy of the applicable plot plan or site map shall be attached to the notice as an informational exhibit, but shall not be required to be recorded as a stand-alone instrument.(3) For nonpark communities, a site map or diagram containing equivalent information to subparagraphs (A) to (D), inclusive, of paragraph (1) may be used in lieu of a plot plan.(4) The failure to attach an exhibit shall not affect the validity of the notice if the notice otherwise identifies the homesite with reasonable certainty.(f) For any homesite subject to this section, the owner, park owner, community, trust, or cooperative shall cause to be recorded with the county assessor form HCD 433B.(g) Upon submission of form HCD 433X for recordation by the county recorder, the recording party shall include, as part of the recordable instrument, a location certification identifying the specific area, space, or lot within the subject property to which that form applies. The location certification shall include all of the following:(1) A reference to the approved plot plan or site plan on file with the local jurisdiction.(2) A clear designation of the specific space, unit, lot, or area, with the same identifier as shown on the plot plan.(3) A statement that the location designation is intended to run with the land and to provide constructive notice to subsequent purchasers and encumbrancers.(4) The county recorder shall not accept form HCD 433X for recording unless the location certification required by this subdivision is included as part of the same recordable document or as an attachment incorporated by reference.

(e)

(h) For purposes of this section, “cooperative section:

(1) “Cooperative housing corporation” includes a resident‑owned community that owns the underlying land and issues proprietary leases or occupancy agreements conveying the exclusive right to occupy a homesite.

(2) “Plot plan” means a recorded or approved plan depicting the layout and numbering of spaces or areas within a parcel, as approved by the applicable local agency.

SEC. 5.

Section 18551.06 is added to the Health and Safety Code, to read:

18551.06.

(a) (1) (A)On or before January 1, 2028, the department shall create the form HCD 433X, which shall be titled “Notice of Manufactured Home Installation—Real Property Classification Without Permanent Foundation,” for classification pursuant to Section 18551.05.

(B) Form HCD 433X shall include all of the following:(i) Name the department as the “when recorded mail to” party.(ii) Specify that the classification of real property under Section 18551.05 is for titling purposes only.(iii) Require the terms under which the manufactured home was classified as real property, including evidence regarding an ownership structure in accordance with subparagraph (A), (B), or (C) of paragraph (1) of subdivision (a) of Section 18551.05.(iv) Require evidence of the lease terms between the homeowner and landowner, in accordance with subparagraph (A) or (B) of paragraph (1) of subdivision (a) of Section 18551.05.

(2) On or before January 1, 2028, the department shall update the form HCD 433A and related instructions to clarify acceptable land tenure evidence, including long-term leases and proprietary occupancy agreements.

(b) Local enforcement agencies shall accept applications for installation and classification pursuant to Sections 18551 and 18551.05 and shall record the applicable notice upon issuance of a certificate of occupancy, provided that, for applications under Section 18551.05, the local enforcement agency shall verify that a plot plan meeting the requirements of paragraph (7) of subdivision (a) of Section 18551.05 has been recorded prior to, or concurrently with, recording the form HCD 433X. occupancy.

(c) Upon recordation of a form HCD 433A or HCD 433X, the department shall cancel registration of the manufactured home, mobilehome, or commercial modular and notify the county assessor.

(d) The department shall produce and publish on its internet website a one-page “Before You Retitle” notice explaining all of the following information:

(1) The voluntary nature of retitling.

(2)No supplemental assessment on retitling to real property.

(3)Exclusion of site value on rented land.

(4)

(2) The nonreversion rule. of real property to personal property.

(5)

(3) A comparison of state programs accessible or inaccessible under real property titling versus personal property titling.

(6)An explanation of tax impact, if any.

(4) That there is no guarantee a retitled home will not be reassessed by the assessor.

SEC. 6.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

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REVISIONS: Heading—Line 3.

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