Bill > SB996

This bill, known as the Manufactured Housing Real Property Modernization Act of 2026, aims to make it easier for manufactured homes and mobilehomes to be classified as real property for purposes of titling, taxation, and securing loans, even if they are not installed on a permanent foundation. It expands the ways a homeowner can demonstrate ownership or a right to occupy the land where the manufactured home is located, including allowing for long-term leases or proprietary occupancy agreements (where a resident owns a share in a cooperative that owns the land) with a remaining term of at least 30 years, provided these agreements are transferable and not revocable except for cause. The bill also requires that the manufactured home be installed according to federal safety standards and that local agencies issue a certificate of occupancy and record a notice of installation. Once classified as real property under these new provisions, the manufactured home will be taxed as real property, and any mortgage on the property will cover the home and the occupancy right. Importantly, the bill clarifies that these changes do not alter the requirements for loans intended for sale to Fannie Mae (Federal National Mortgage Association) or Freddie Mac (Federal Home Loan Mortgage Corporation), which may still require permanent foundation installation. The Department of Housing and Community Development (HCD) will be responsible for updating regulations and forms to implement these changes by January 1, 2028, and the State Board of Equalization will update guidance for assessors by July 1, 2027.

Housing and Urban Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB996