(a) The Legislature finds and declares all of the following: (1) The financial hardship endured by someone who is buying or selling a manufactured home for the purpose of using it for a primary residence is more profound than the hardship of someone who is selling or purchasing a manufactured home for investment purposes. (2) It is, therefore, the intent of the Legislature in enacting this chapter that any claims for primary residences submitted, pursuant to this chapter, by a claimant for payment from the fund shall be given priority over claims submitted for investment purposes. (3) The distinctions made in this chapter between claims made for personal residential purposes and claims made for investment purposes shall reflect the priorities set forth in this paragraph. (4) The costs of seeking and obtaining civil judgments and related collection efforts to support claims for compensation often exceed the ability of claimants and the amounts received. (5) The costs and efforts of public entities obtaining criminal or administrative restitution orders could provide further benefits if these orders could be used as the basis for compensation claims. (b) The following definitions shall apply for the purposes of this chapter: (1) âActual and direct lossâ includes the following: (A) The amount of the actual and direct loss, interest at the statutory rate from the date of loss, plus court costs and reasonable attorneyâs fees incurred in pursuit of the judgment, not to exceed 25 percent of the amount of the judgment, if the claim is based on a judgment obtained by a private attorney or an attorney employed by a nonprofit corporation, and not to exceed 35 percent of the amount of the judgment if the claim is based on a judgment obtained by an attorney employed by a public agency. (B) The amount of the actual and direct loss, if the claim is not based on a judgment. However, the claimant may collect actual and reasonable costs incurred in pursuit of compensation including attorneyâs fees not exceeding 15 percent of the amount of the claim and court costs, if any. âActual and direct lossâ does not include any punitive damages or damages awarded for negligent or intentional infliction of emotional distress. (2) âClaimantâ does not include a person holding a lien on, or a person possessing a secondary interest in, a manufactured home. (3) âConversionâ means the unlawful appropriation of the property of another. (4) âJudgmentâ means any of the following: (A) A final judgment in a court of competent jurisdiction, other than a court in another state, including, but not limited to, a criminal restitution order issued pursuant to subdivision (f) of Section 1202.4 of the Penal Code or Section 3663 of Title 18 of the United States Code. (B) An order of the director, including an order for restitution, based on an accusation filed pursuant to Article 3 (commencing with Section 18058) of Chapter 7, after an opportunity for a hearing. (5) âComplaintâ means the facts of the underlying transaction upon which the criminal restitution order or administrative order is based. (6) âJudgment debtorâ means any defendant who is the subject of the criminal restitution order or civil judgment, any respondent who is the subject of an administrative accusation and order, or any person responsible for any violation upon which payment is made, as determined by the department. (c) There is hereby created in the State Treasury the Manufactured Home Recovery Fund. The money in the fund shall be used only for the purposes of this chapter, including payment of the departmentâs administrative costs incurred pursuant to this chapter. The departmentâs costs may include any investigative costs incurred under this chapter, costs incurred to render a decision pursuant to Section 18070.3, and costs incurred in defending a decision on appeal. (d) The moneys in the fund may be invested pursuant to Chapter 3 (commencing with Section 16430) of
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