SB 996 (Padilla)
HOME sponsor: NPHS Inc (Cosponsored with ROC USA)
The Problem
95% of manufactured homes have never moved – and yet we have titled them as real property.
Under California Revenue and Taxation Code §5801(b)(2), a manufactured home is classified as real property for tax purposes only when it is placed on a permanent foundation.
Manufactured homes that are not permanently affixed are treated as personal property, which can limit access to traditional mortgage financing and other real-property benefits. (Pew Study)
While residents in mobile home communities often own their homes, this tax and financing framework constrains pathways to wealth-building and long-term housing stability.
The Solution
SB 996 would create an opt-in process by which manufactured home owners, who own a stake or right to the land under their home (co-ops, ROCs, LEHCs), outright own the land under their home, or possess a long-term lease, can have their homes titled as real property and, in turn, gain access to more favorable financing, such as traditional mortgages.
This unlocks access to conventional mortgage financing (interest rates at 5-7%) instead of high-cost chattel loans (interest rates at 8-12%) and puts California closer in alignment with federal opportunities through Fannie Mae and the FHA Title I program.
Contact for questions: Ryan Sears, ryan@nphsinc.org