LAC Goes for Win-Win

A rising tide floats all houseboats | photo and post by Larry Clinton

The FHA’s Legal Action Committee (LAC) continues to pursue amending the Floating Homes Residency Law to address vacancy control, passthrough fees, and long-term leases in a way that is fair to all: owners of newer and larger homes, owners of smaller and older homes, and the marina operators themselves. The process is complicated, because over the years a variety of leases have been issued by the five different Sausalito floating home marinas. Therefore, different homeowners have different concerns about the future of their leases.

The LAC has been working to find a compromise that changes the terms of vacancy control (the amount berth rent can be raised when a home is sold), to give the marinas more flexibility while ensuring 10-year leases and better fee protections for homeowners. The committee has engaged an attorney to determine the legality of new fees that some marinas are passing through to homeowners.

Assemblymember Connolly is expected to soon introduce a preliminary amendment. The LAC has worked with the County on possible concepts and language, but we do not know what precise language will be included and thus whether the LAC and the houseboat owners will support the bill as introduced. The preliminary amendment is meant to get on the state’s legislative calendar, and the bill can be amended further in the coming weeks based on continuing discussions.

Meanwhile, the LAC is committed to keeping residents informed about this process. Committee co-chair Wilford Welch has put together the following Frequently Asked Questions to provide more background and clarity on this fast-moving process. Additional updates will be provided by email and in the Dock Peeps group on Facebook.

PROGRESS REPORT – THE FHA’S LEGISLATIVE ACTION COMMITTEE’S WORK ON BEHALF OF ALL HOUSEBOAT OWNERS TO PRESERVE AND EXPAND THEIR RIGHTS GAINED BY AB 252

WHAT IS THE LEGISLATIVE ACTION COMMITTEE, (LAC), OF THE FHA, AND WHAT IS ITS MANDATE?

The Floating Homes Association voted in mid-November of 2023 to establish a Legislative Action Committee (LAC), to: “consider, research and actively represent the common interests of our community of floating homeowners and residents concerning pending and future legislative and regulatory issues at the County and State government levels”. Houseboat owner Joe Novitski was named Chair of the LAC and houseboat owner Wilford Welch, Vice Chair.

WHY ARE WE NOW HAVING TO DEAL WITH THIS AGAIN?

The marina owners were very upset with the restrictions placed upon them by AB 252, now integrated in the Floating Homes Residency Law. Last Spring the marina owners sought to get all the provisions of AB 252 repealed. But after pressure by the FHA and homeowners, our legislators responded by saying they would only be open to a possible change in one of AB 252’s provisions, that being “Vacancy Control”. The change they wanted would have given the marina owners the right to raise the slip rate of a houseboat with a ten-year lease when it was sold to a rate determined solely by the marina where it was located.

More recently, some marina owners have been making changes to the terms of our leases, including only offering 1-year leases and adding new, and in some cases, what appear to be illegal, fees.

The County would like to find a compromise position that changes the terms of vacancy control but only if it ensures 10-year leases and better fee protections for houseboat owners. The amendments implemented by AB 252 sunset in 2029. The County staff believe that if we do not agree to some revisions in the bill, we are very unlikely to get the provisions extended in 2029.

WHAT HAS THE LAC ALREADY DONE TO ADDRESS THE CONCERNS OF OUR COMMUNITY?

The LAC first reached out to the residents of all docks (regardless of whether they were dues paying members of the FHA) to listen to their concerns, and what they wanted the LAC to do for them. Between December 28th and January 14th, in-person meetings were held on all ten docks and with more than 100 residents, all suggestions captured. A summary report was produced which we would be happy to provide to anyone who asks.

The overall conclusions of all these meetings were:

  • Homeowners are overwhelmingly opposed to a repeal of vacancy control that would allow the harbor owners to raise rates when a houseboat sells with no limits on the increase. Many want more protections, not less, and question the Marina owners’ claims of financial hardship.
  • Due to the complexity of the issues and the recent breakdown in trust, many felt that it will not be possible to resolve this to all parties’ satisfaction by February 15. A number of homeowners expressed interest in a process that was collaborative with the Marina Owners over the next year, but others felt this would require transparency by the Marina Owners, which is not forthcoming.
  • Floating homeowners would oppose any provision that allows Marina Owners to raise rental fees to “market rate”. There is not a market in slip rates, there is no transparency in berth rates now and, because there is no place for us to move our houseboats, the marina owners have a monopoly. With no limitations or constraints, marina owners could raise lease fees to a level that would make it very difficult for houseboat owners to sell their floating home.
  • Many floating home owners are willing to support amending vacancy control, but only if: a) the amendment protects the houseboat owners from the imposition of all the new fees, such as those now being imposed by the marina owners, and b) if there is a limited and predictable increase in the slip rate upon a sale, including a cap, and c) leases would have a minimum 10-year term.

WHAT HAS THE LAC DONE TO ADDRESS THESE CONCERNS WITH OUR ELECTED OFFICIALS ANDTHE COUNTY?

First off, here are the officials who will make the decision about what would go into any changes in what was called AB 252, but is now part of the Floating Homes Residency Law: Our California Assemblymember Damon Connolly will be the author of any bill introduced into the Assembly for consideration. He has been quite attentive but is relying on Marin County Supervisor Stephanie Moulton-Peters and Talia Smith, principal administrative analyst in the office of the Marin County Chief Executive to listen to both parties and come up with what is an appropriate resolution of these issues and avoids ending up as a permanent “we-they” relationship that so often exists in landlord-tenant relationships.

During the past six weeks we have had numerous conversations and meetings with all of these officials. California State Senator Mark McGuire will ultimately vote on any measure put forward. But, because he is particularly busy at this time being pro tem of the California Senate, he seems to be leaving this to Damon Connolly, Stephanie Moulton-Peters and Talia Smith of Marin County to address these issues with both the houseboat owners and marina owners.

WHAT IS BEING DONE ABOUT THE ADDITIONAL FEES BEING CHARGED BY THE MARINAS?
The LAC has a legal subcommittee working to clarify the legality of various fees being charged and possible strategies to undertake with regard to illegal fees. The FHA has approved hiring a lawyer to advise concerning the laws that apply to the relationship between the marina owners and floating homeowners, including the question of what fees can be imposed and which costs of the marinas, (such as insurance charges, property taxes, etc.), can, or cannot, be charged to the owners of floating homes.
Legal counsel has consulted with members of the LAC legal subcommittee and is beginning work on these important issues. The results will likely help guide our direction in the legislative process.
We are making it clear to our elected officials that any changes on vacancy control must
be accompanied by greater protection for houseboat owners from many of the
additional fees and assessments being imposed.

We are making it clear to our elected officials that any changes on vacancy control must be accompanied by greater protection for houseboat owners from many of the additional fees and assessments being imposed.

WHAT IS THE TIME LINE?

This is the timeline given to us by the County:

Submit a “Spot bill” by January 15th simply saying that Assemblymember Damon Connolly plans to introduce legislation dealing with floating homes (such a spot bill was submitted).

Submit a “framework” of possible proposed bill language by February 15th. The County is drafting framework bill language for Assemblymember Connolly to propose by February 15, but amendments to proposed legislation can be made through the spring.

This means that if interested parties need more time to discuss specifics through March/April, that is OK and amendments can be made to the bill later in the spring.

We are again meeting with County staff on February 13th to discuss the language that might be proposed in an amendment. County staff is working on ways that we may address fees that leverage existing legal frameworks in landlord/tenant relationships. In addition, County staff is hoping for more clarity from houseboat owners on what caps might be reasonable for vacancy control.

The County has told us that the “aim of this work with you all now is to come up with language that homeowners do support, is fair, and addresses the concerns that have arisen in the wake of AB 252 going into effect.”

HOW CAN ONE KEEP UP WITH ALL THIS OVER THE NEXT MONTHS?

The LAC plans to provide our houseboat owner/resident colleagues with updates on a regular basis, primarily using the Floating Times, the FHA website, Dock Peeps, and your dock reps. Please stay tuned.

HOW CAN HOUSEBOAT OWNERS BEST REACH OUT TO THE LAC TO EXPRESS INTERESTS AND CONCERNS?

If you have questions or concerns, first please read our regular updates. If you need to hear directly from us, please email Joe Novitski, Wilford Welch, Larry Clinton or Candice Gold.

The following are also members of the LAC along with the docks where they live:

Anna Shimko – Main; Candice Gold – Issaquah; Denice Kendall – Issaquah: Jordon McCullom – Issaquah; Michael Van Walt – South Forty; Ginger Cassady – Liberty; Patricia Lawrence – A Dock; Kimberly Wright – Yellow Ferry; Lois Salisbury – Yellow Ferry; Sasha Cole – Commodore; Larry Clinton- Gate 6 ½; Lewis Shireman – Gate 6 ½; Chris Jones – Gate 6 ½; Liz Brott – West Pier; Jennifer Silva – East Pier; Joe Novitski – East Pier; Wilford Welch – East Pier.