Modular homes, mobile homes, and manufactured homes are all commonly referred to as manufactured homes. Although all three are primarily constructed in a factory setting, they each have unique attributes that make them different. While the terms mobile home and manufactured home are often used interchangeably to describe either, the term modular home should only be used to describe a home that is built to the local building code. Below are definitions that you might find helpful.
Modular Homes – housing built in a factory to the local building code, trucked to the site where sections are craned into place and installed on a permanent foundation. As a result, these factory-built homes are classified as real property and not titled and registered with the California Department of Housing and Community Development (HCD). For more information on modular homes contact your local permitting jurisdiction.
Mobile Homes – housing built in a factory and first sold prior to July 1, 1980.
Manufactured Homes – housing built in a factory and first sold on or after July 1, 1980.
HCD 433A Permanent Foundation
Mobile and manufactured homes may be installed on a permanent foundation. If the intent of the owner is to re-classify the home as real property, the owner must initiate the process by submitting a completed HCD-433A Form to the local building jurisdiction when applying for a building permit for the permanent foundation. Owners should consult with the local building jurisdiction to ensure that additional required documents are submitted and to ensure that the 433A form is recorded at the County Recorder's Office.
Mobile and manufactured homes with a recorded 433A permanent foundation are subject to local property taxation in the same manner as other site built homes and are taxed at the same rate as all other property in California. Their values will increase by no more than 2% per year (Prop 13 inflation factoring), unless a change in ownership or new construction occurs.
No Recorded 433A Permanent Foundation
All mobile and manufactured homes that are not secured to the land with a permanent foundation, or where no HCD 433A form has been recorded, have titles (similar to automobiles) issued and tracked by HCD. Mobile homes, originally built and first sold before July 1980, may be subject to an HCD license fee OR to local property taxes, depending on certain circumstances. Manufactured homes are always subject to local property taxes and will receive a tax bill for the home.
Mobile and manufactured homes, without a recorded 433A permanent foundation, that are subject to local property taxes, are assessed under Prop 13 also. If the market value of the home falls below the Prop 13 factored value, the market value is temporarily assessed. Values under this temporary reduction (aka Prop 8) are reviewed annually until the market value exceeds the Prop 13 factored value, at that time the Prop 13 factored value is restored. Prop 13 factored values are limited to an annual increase of no more than 2%. Values of property receiving a temporary reduction (Prop 8) are not limited to that 2%. Assessed values will go up or down in tandem with market value. The assessed value will never exceed a property's Prop 13 factored value. Chart: How Property Values Are Assessed.
Because mobile and manufactured homes, without a recorded 433A permanent foundation, are considered personal property, a transfer upon death document recorded at the County Recorder's Office is not sufficient to affect a title change at HCD. The document must also be filed with HCD to affect a legal title change. HCD may require additional forms to be completed.
Please contact HCD for more information at (916) 323-9224 or visit their website at Registration & Titling | California Department of Housing and Community Development.
Floating Homes
For questions regarding Floating Homes, please contact HCD by email at ContactRT@hcd.ca.gov.
Information on Sales or Transfer of Title or Location
More information about manufactured home/mobile home property taxes may be found in Mobile Home FAQ's , or please contact us at (916) 875-0700 or ASR-MobileHomes@saccounty.gov.
