California Governor Edmund Brown signed legislation – AB 379 – authored by Assemblymember Cheryl R. Brown (D-San Bernardino). The bill’s objective is to preserve access to manufactured housing by allowing it to be converted from “chattel” – personal property – into real property. Inland Valley News tells MHProNews a key motive for the bill was the Court of Appeals ruling in Vieira Enterprises v. City of East Palo Alto (2012). 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 against Vieira, citing the company lacked a security interest in the homes because they were real property. The ruling allowed the borrower to forgo paying paying the loan balance. Thus the ruling chilled lending to consumers interested in purchasing manufactured homes. 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. ##
