Governor Releases Proposed Budget

On Wednesday, January 10, the Governor released his proposed $291.5 billion budget for Fiscal Year 2024-25 to the State Legislature, and General Fund expenditures are proposed to be reduced by approximately $12 billion from 2023-24 levels.  The proposed budget also projects taking $13 billion from the State Rainy Day Fund, which was created several years ago to help the state weather future deficits.

According to the Governor, the state faces a current year budget deficit of $37.9 billion. This is a significantly lower number than the $68 billion deficit projected by the nonpartisan Legislative Analyst’s Office late last month.  The Governor has proposed solving the current year shortage by $18.8 billion in new borrowing (from special funds); $11.9 billion in spending reductions; and $7.2 billion in delays and deferrals.

With California facing a housing crisis, initial observations are that the various housing programs such as the MORE Program, the Mobilehome Dispute Resolution Fund, and the Manufactured Home Recovery Fund appear to be spared from any significant reductions. 

A more detailed analysis of the State Budget’s impact on the manufactured housing community will be forthcoming in the coming weeks, but the revenue assumptions made in the proposed budget appear to be very optimistic. 

To view the proposed budget, please click here. 

To view an initial summary of the State Budget by the Assembly Committee on Budget, please click here. 

WMA-Sponsored Assembly Bill 661 Passes Unanimously Out of Assembly Housing Committee

Assembly Bill 661 (Joe Patterson, R-Rocklin) introduced this legislation to allow parkowners to electronically notify residents who agree to receiving electronic notification through text, email, or phone calls, about future utility disruptions in their park – instead of having to deliver paper notices to residents.

This bill passed out of the Assembly Housing and Community Development Committee on a vote of 8-0 and now heads to the Assembly Floor, where it must be passed by January 31, 2024, to the Senate for its consideration and transmittal to the Governor for his signature. 

To read a copy of Assembly Bill 661, please click here.  

Legislative Deadlines Getting Closer

February 16 is the last day to introduce bills for 2024, and WMA is working with several offices to finalize language for proposed legislation on issues such as water systems, Mobilehome Residency Law Protection Program (MRLPP) and California Department of Housing & Community Development (HCD) reform, and allowing allowing for additional time to work with residents on resident violations in mobilehome parks before a Permit to operate is jeopardized.

WMA also expects many bills to be introduced that would pose an adverse impact on parkowners and managers. We will keep our members apprised about any potential threats in the form of legislation.

Mark Your Calendars for February 8th MCM Webinar – Fair Housing Basics for 2024

Every rental housing professional should be aware of and understand the implications and sometimes complicated Fair Housing regulations.  

Join us for an informative session with Angel Rogers of Star Training as she covers best practices and trending issues regarding Fair Housing.

To register today click here. 

State Controller Looks for More Revenue from Los Angeles Dodgers Player

As the State of California grapples with a massive budget deficit, State Controller Mailia Cohen has turned her attention to Shohei Othani and his new ten-year contract valued at $700 million with the Los Angeles Dodgers. 

The terms of the star pitcher’s contract defer approximately $680 million to 2034, and if Ohtani moves out of California before then, he will not be subject to California’s extraordinarily high taxes. Instead of addressing the root causes of California’s budget crisis, Cohen’s recent announcement illustrates a mindset that the government just needs more money instead of structural reform of the way it operates. 

To view more about this interesting development, please click here. 

It is an honor to serve WMA. Please feel to reach me directly at chris@wma.org or on my direct line at the office – 916.288.4026.