AMENDED IN SENATE AUGUST 21, 2026
AMENDED IN SENATE AUGUST 13, 2026
AMENDED IN SENATE JUNE 25, 2026
AMENDED IN SENATE JUNE 18, 2026
AMENDED IN ASSEMBLY MARCH 19, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
94
Introduced by Assembly Members Harabedian and Wicks
(Coauthors: Assembly Members Caloza, Mark González, Hoover, Patterson, and Quirk-Silva)
February 18, 2026
An act to amend Sections 19976.05, 19982, 19991, and 19992 of, and to add Sections 19992.1 and 19992.2 to, the Health and Safety Code, relating to housing, and making an appropriation therefor. housing.
Vote: majority Appropriation: no Fiscal committee: yes Local program: yes
LEGISLATIVE COUNSEL’S DIGEST
(1) Existing law, the California Factory-Built Housing Law, generally regulates the design, manufacture, and installation of factory-built housing and defines terms for its purposes. The law authorizes the Department of Housing and Community Development, among other things, to regulate quality assurance agencies to perform inspections of factory-built housing manufacturers. The law requires a local enforcement agency, among other things, to enforce and inspect the installation of factory-built housing. The law provides that any person who violates any of its provisions and other specified law is guilty of a misdemeanor, as specified.
This bill would revise these provisions, among other things, to authorize a quality assurance agency to also perform an installation inspection of factory-built housing, at the choice of a first user, after the department adopts regulations regarding the requirements for a quality assurance agency to perform these inspections. The bill would require the department to adopt those regulations by January 1, 2029. The bill would set the maximum fees that a local enforcement agency is authorized to impose for the inspection or permitting of factory-built housing, and prohibit a local enforcement agency from imposing fees under certain circumstances. The bill would prohibit a quality assurance agency or a local enforcement agency from disassembling, damaging, or destroying factory-built housing while inspecting the installation. The bill would make conforming changes and define terms for its purposes.
By increasing the duties of local officials, and by expanding the scope of a crime, this bill would impose a state-mandated local program.
This bill would require the department, by rule and regulation, to establish a schedule of fees to pay and recover the costs incurred by the department for the work related to the administration and enforcement of the California Factory-Built Housing Law. By expanding the purposes for which moneys in the Mobilehome-Manufactured Home Revolving Fund, a continuously appropriated fund, may be used, and increasing moneys deposited into a continuously appropriated fund, the bill would make an appropriation.
(3)
(2) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The people of the State of California do enact as follows:
SECTION 1.
Section 19976.05 of the Health and Safety Code is amended to read:
19976.05.
“Quality assurance agency” means a private organization meeting the requirements specified in regulations of the department to perform in-plant inspections of the manufacture of factory-built housing and onsite installation inspections of factory-built housing.
Section 19982 of the Health and Safety Code is amended to read:
19982.
(a) The department by rule and regulation shall establish a schedule of fees to pay and recover the costs incurred by the department for the work related to the administration and enforcement of this part. Notwithstanding Section 13340 of the Government Code, the fees collected shall be placed in the Mobilehome-Manufactured Home Revolving Fund established by Section 18016.5, and are continuously appropriated to the department for expenditure in carrying out this part.
(b) The total amount of money collected pursuant to this part and contained in the Mobilehome-Manufactured Home Revolving Fund on June 30 of each fiscal year shall not exceed the amount needed for operating expenses for one year for the enforcement of this part. If the total amount of money collected pursuant to this part in the fund exceeds this amount, the department shall make appropriate reductions in the schedule of fees authorized by this section.
SEC. 3.SEC. 2.
Section 19991 of the Health and Safety Code is amended to read:
19991.
(a) The department shall enforce every provision of this part, the building standards published in the State Building Standards Code relating to factory-built housing, and the other regulations adopted pursuant to this part, except as provided in Sections 19991.1, 19991.3, 19991.4, 19992, 19992.1, and 19992.2.
(b) Nothing in this chapter shall be construed to alter the authority of a local enforcement agency to issue or withhold a certificate of occupancy in accordance with any other law.
SEC. 4.SEC. 3.
Section 19992 of the Health and Safety Code is amended to read:
19992.
Local enforcement agencies shall enforce the installation of factory-built housing. The installation of factory-built housing shall be conducted in accordance with the requirements of the building standards published in the State Building Standards Code relating to factory-built housing and the other requirements of Part 1.5 (commencing with Section 17910), subject to the provisions of Section 19990. A local enforcement agency or quality assurance agency shall not disassemble, damage, or destroy factory-built housing while inspecting the installation of that factory-built housing, pursuant to Section 19992.1.
SEC. 5.SEC. 4.
Section 19992.1 is added to the Health and Safety Code, to read:
19992.1.
(a) (1) A local enforcement agency shall offer the inspection of the installation of factory-built housing. After the department adopts regulations pursuant to subdivision (d), a first user shall choose to have either the local enforcement agency or a quality assurance agency, acting on behalf of and subject to the supervision of the department, inspect the installation of factory-built housing.
(2) If a first user chooses to have a quality assurance agency inspect the installation of factory-built housing, the first user shall cover the cost of the inspections.
(b) (1) The local enforcement agency may, by ordinance, impose an inspection fee for the inspection of the installation of factory-built housing, provided that the fee is no more than 50 percent of the equivalent inspection fee for nonfactory-built housing.
(2) Notwithstanding paragraph (1), a local enforcement agency may impose an inspection fee for the inspection of the installation of factory-built housing that exceeds 50 percent of the equivalent inspection fee for nonfactory-built housing if the local enforcement agency, as part of a written finding and an adopted resolution or ordinance, provides substantial evidence of the reasonable cost to conduct the inspections.
(c) If a first user chooses to have a quality assurance agency inspect the installation of factory-built housing, the local enforcement agency shall not charge an inspection fee, but may charge fees for inspection of sitework for items not related to the installation of the factory-built housing, including, but not limited to, grading, foundations, and landscaping other nonfactory-built housing.
(d) By January 1, 2029, the department shall adopt regulations pursuant to this part to establish standards, qualifications, procedures, and oversight requirements governing quality assurance agencies performing installation inspections pursuant to this section, including, but not limited to, approval criteria, inspection requirements, reporting obligations, and conditions for suspension, revocation, or other enforcement actions related to certification to perform installation inspections.
(e) Subdivisions (a) to (c), inclusive, shall not authorize a quality assurance agency to perform installation inspections of factory-built housing, and subdivisions (b) and (c) shall not become operative until the department adopts regulations pursuant to subdivision (d).
(f) A quality assurance agency performing installation inspections of factory-built housing pursuant to this section shall, to the extent practicable, coordinate with the local enforcement agency having jurisdiction and shall ensure that installation inspections are conducted in a manner consistent with applicable local requirements that are not preempted by this part.
SEC. 6.SEC. 5.
Section 19992.2 is added to the Health and Safety Code, to read:
19992.2.
(a) A local enforcement agency shall not impose any permitting fee related to a factory-built housing structure that exceeds 50 percent of the equivalent permitting fee for a nonfactory-built housing. housing structure.
(b) Notwithstanding subdivision (a), a local enforcement agency may impose a permitting fee related to a factory-built housing structure that exceeds 50 percent of the equivalent permitting fee for a nonfactory-built housing structure if the local enforcement agency, as part of a written finding and an adopted resolution or ordinance, provides substantial evidence of the reasonable cost to review the permits.
SEC. 7.SEC. 6.
The Legislature finds and declares that the provision of adequate housing, in light of the severe shortage of housing at all income levels in the state, is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1, 2, 3, 4, 5, and 6 and 5 of this
act amending Sections 19976.05, 19982, 19991, and 19992 of, and adding Sections 19992.1 and 19992.2 to, the Health and Safety Code, respectively, apply to all cities, including charter cities.
SEC. 8.SEC. 7.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.