Relates to providing recourse for manufactured homeowners in manufactured home parks confronted with unjustifiable rent increases

1 Co-sponsor

• Ted O'Brien

BILL NUMBER:S5860A

Title of bill

An act to amend the real property law, in relation to providing recourse for manufactured homeowners in manufactured home parks, who are confronted with unjustifiable rent increases; and provid- ing for the repeal of certain provisions upon expiration thereof

Purpose

To provide a process under which tenants in manufactured home parks can obtain recourse from unjustifiable rent increases.

Summary of provisions

Section 1. Amends Section 233(e) of the Real Property Law to provide that rent increases shall be subject to section 233-b of the Real Prop- erty Law.

Section 2. Amends section 233(g) of the Real Property Law to provide that disclosure of rents, fees and regulations shall be made prior to entering into a rental agreement.

Section 3. Adds a new section 233(b) to the Real Property law which provides that tenants may object to unjustifiable rent increases when the rent increase exceeds operating costs which include but are not limited to taxes, assessments and other governmental fees, costs of maintenance and operation of sewer and water systems, debt service and capital expenditures of $10,000 or more which are directly related to acquisition or major capital improvements and a reasonable rate of return on the owner's equity investment.

The bill is subject to county local option and would only apply to parks with 40 or more units. The bill will sunset on December 31, 2018.

Justification

Ownership in manufactured home parks is divided between the park owner who owns the lot, access roads and utilities which service the units and the manufactured home owner who has title to the home. Some homes are incapable of being moved due to age. The costs of moving a newer unit is very expensive and in many areas there are not vacant lots to move a home to_ These factors create a situation in which some owners can take advantage of the tenants by charging unjustifiable increases in rent. This legislation would give the tenants a remedy while giving the reputable park owners due opportunity to recoup their costs and realize a fair return on their investment.

Legislative history

New Legislation, 2013.

Fiscal implications

None

Effective date

This act shall take effect immediately; provided, however, that sections one and three of this act shall expire and be deemed repealed December 31, 2018.