senate Bill S3177A

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 10 / Feb / 2011
    • REFERRED TO JUDICIARY
  • 24 / May / 2011
    • AMEND AND RECOMMIT TO JUDICIARY
  • 24 / May / 2011
    • PRINT NUMBER 3177A
  • 07 / Jun / 2011
    • 1ST REPORT CAL.1076
  • 13 / Jun / 2011
    • 2ND REPORT CAL.
  • 14 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO JUDICIARY

Summary

Relates to providing recourse for manufactured homeowners in manufactured home parks confronted with unjustifiable rent increases; creates a local option in counties in New York state to provide such protection.

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Bill Details

See Assembly Version of this Bill:
A5029A
Versions:
S3177
S3177A
Legislative Cycle:
2011-2012
Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Amd §233, add §233-b, RP L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S6920A, A4851A
2007-2008: A7985A, A7985A

Sponsor Memo

BILL NUMBER:S3177A

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

PURPOSE OF BILL:
To provides recourse for homeowners in manufactured
home parks who are confronted with unjustifiable rent increases.

SUMMARY OF BILL:
This bill makes amendments to the Real Property Law
to permit counties by local law to adopt this section to provide
recourse for homeowners in manufactured home parks who are confronted
with unjustifiable rent increases.

JUSTIFICATION:
Factors unique to home ownership in manufactured home
parks require that the owners of such manufactured homes be protected
from involuntary forfeiture of their homes due to unreasonable
increases in lot rent. Homeownership in manufactured home parks
differs from other forms of homeownership as well as from the
traditional landlord-tenant relationship.
Unlike other homeowners, because the manufactured homeowners do not
control the land on which their home exists. They have no control
over this substantial portion of their housing costs. Vacant lots on
which to place an existing manufactured home are extremely rare, and
the cost of relocating a manufactured home, even if such a vacancy
exists, is prohibitively high and threatens the structural integrity
of many manufactured homes.

The manufactured homeowners' total lack of bargaining power disrupts
the normal operation of market forces and renders such manufactured
homeowners captive to whatever terms a manufactured home park owner
may choose to impose. Although many manufactured home park owners
choose not to take advantage of their superior bargaining power, many
do. This often results in manufactured homeowners being evicted
because of rents they can no longer afford, and as a result, losing
their manufactured home altogether because there is no alternative
site on which to place such home.

Under current law, manufactured homeowners who rent lots in
manufactured home parks have no legal remedy for an unjustifiable
rent increase. It is the goal of this legislation to provide that
mechanism to the manufactured homeowner.

LEGISLATIVE HISTORY:

2009-10: A.4851A/S.6920A - Reported to Assembly Rules Committee
2007-08: A.7985A - Passed Assembly

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
January 1 after becoming law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 3177--A                                            A. 5029--A

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            February 10, 2011
                               ___________

IN  SENATE  --  Introduced  by Sens. LAVALLE, NOZZOLIO -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Judiciary  -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

IN ASSEMBLY -- Introduced by M. of A. THIELE, LOSQUADRO -- read once and
  referred to the Committee on Judiciary -- committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The legislature  finds  and  declares
that:
  (a) Factors unique to home ownership in manufactured home parks in New
York  state  require  that  the  owners  of  such  manufactured homes be
protected from involuntary forfeiture of their homes due to unreasonable
increases in lot rent.
  (b) Homeownership in such manufactured home parks differs  from  other
forms  of  homeownership as well as from the traditional landlord-tenant
relationship. Unlike other homeowners, because the manufactured homeown-
ers do not control the land on which  their  manufactured  homes  exist,
they  have  no  control  over  this substantial portion of their housing
costs.
  (c) Vacant lots on which to place an existing  manufactured  home  are
extremely  rare in New York state, and the cost of relocating a manufac-
tured home, even if such a vacancy exists,  is  prohibitively  high  and
threatens the structural integrity of many manufactured homes.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07661-02-1

S. 3177--A                          2                         A. 5029--A

  (d)  The  manufactured  homeowners'  total  lack  of  bargaining power
disrupts the normal operation of market forces and renders such manufac-
tured homeowners captive to whatever  terms  a  manufactured  home  park
owner  may choose to impose. Although many manufactured home park owners
choose  not  to  take advantage of their superior bargaining power, many
do. This often results in manufactured homeowners being evicted  because
of  manufactured  home  park  rents  they can no longer afford, and as a
result, losing their manufactured home altogether because  there  is  no
alternative site on which to place such home.
  (e)  Under current law, manufactured homeowners who rent lots in manu-
factured home parks have no legal remedy for an unjustifiable and unrea-
sonable rent increase.
  S 2. Subdivision e of section 233 of the real property law is  amended
by adding a new paragraph 4 to read as follows:
  4. ALL RENT INCREASES, INCLUDING ALL FEES, RENTS, CHARGES, ASSESSMENTS
AND  UTILITIES,  SHALL  BE  SUBJECT  TO  JUDICIAL  CHALLENGE PURSUANT TO
SECTION TWO HUNDRED THIRTY-THREE-B  OF  THIS  ARTICLE  FOR  MANUFACTURED
HOMEOWNERS.
  S  3. Paragraph 2 of subdivision g of section 233 of the real property
law, as amended by chapter 566 of the laws of 1996, is amended  to  read
as follows:
  2.  A  manufactured  home  park owner or operator shall be required to
fully disclose in writing  all  fees,  charges,  assessments,  including
rental  fees, rules and regulations prior to [a manufactured home tenant
assuming occupancy] ENTERING INTO A RENTAL AGREEMENT WITH A  PROSPECTIVE
TENANT in the manufactured home park.
  S 4. The real property law is amended by adding a new section 233-b to
read as follows:
  S  233-B.  UNJUSTIFIED  RENT INCREASES IN MANUFACTURED HOME PARKS.  1.
LOCAL OPTION. THE PROVISIONS OF THIS SECTION SHALL APPLY IN  ANY  COUNTY
IN  WHICH  THE  GOVERNING  BOARD  OF  SUCH COUNTY HAS PASSED A LOCAL LAW
ADOPTING THE PROVISIONS OF THIS SECTION.
  2. SCOPE. TO BE ELIGIBLE FOR THIS REMEDY, THE MANUFACTURED  HOME  MUST
BE THE PRIMARY RESIDENCE OF THE MANUFACTURED HOMEOWNER.
  3.  PRIMA FACIE CASE. AN INCREASE IN RENT WHICH EXCEEDS THE PERCENTAGE
INCREASE IN THE CONSUMER PRICE INDEX SINCE THE CURRENT LOT  RENT  BECAME
EFFECTIVE  MAY  BE  CHALLENGED BY AN AGGRIEVED MANUFACTURED HOMEOWNER AS
UNJUSTIFIED. THE TERM "CONSUMER PRICE INDEX" MEANS THE  INDEX  PUBLISHED
MONTHLY  BY  THE  UNITED  STATES  DEPARTMENT  OF  LABOR, BUREAU OF LABOR
STATISTICS, FOR  THE  APPLICABLE  NEW  YORK  REGION.  IN  THIS  SECTION,
"INCREASE  IN  LOT  RENT"  INCLUDES  ALL  COST  INCREASES, INCLUDING ALL
INCREASED RENT, FEES, CHARGES, ASSESSMENTS AND UTILITIES.
  4. JOINDER. MULTIPLE AGGRIEVED MANUFACTURED HOMEOWNERS MAY JOIN IN THE
SAME ACTION WHERE THERE IS A COMMON QUESTION OF LAW OR FACT.
  5. VENUE AND STATUTE OF LIMITATION. WITHIN NINETY DAYS OF  THE  NOTICE
OF  THE PROPOSED INCREASE, AN AGGRIEVED MANUFACTURED HOMEOWNER MAY CHAL-
LENGE SUCH INCREASE BY FILING AN ACTION IN THE  COUNTY  WHERE  THE  REAL
PROPERTY  IS  LOCATED  SEEKING  A  DECLARATORY  JUDGMENT  THAT  THE RENT
INCREASE IS UNJUSTIFIABLE.
  6. PRESUMPTION.  IN ANY PROCEEDINGS UNDER THIS SECTION THERE SHALL  BE
AN IRREBUTTABLE PRESUMPTION THAT A RENT INCREASE IS JUSTIFIABLE WHEN THE
AMOUNT  OF  SUCH INCREASE DOES NOT EXCEED THE TENANT'S PRO-RATA SHARE IN
OPERATING COSTS AND PROPERTY TAXES FOR THE  MANUFACTURED  HOME  PARK  IN
WHICH THE TENANT RESIDES.
  7.  STANDARD FOR JUDICIAL REVIEW.  IN DETERMINING WHETHER THE PROPOSED
RENT INCREASE IS UNJUSTIFIABLE, THE COURT SHALL CONSIDER:

S. 3177--A                          3                         A. 5029--A

  (A)  INCREASES  IN  THE  MANUFACTURED  HOME  PARK  OWNER'S   OPERATING
EXPENSES.
  (B)  INCREASES IN THE MANUFACTURED HOME PARK OWNER'S PROPERTY TAXES ON
SUCH PARK.
  (C) INCREASES IN THE COST OF DEBT SERVICE WHICH IS DIRECTLY RELATED TO
ACQUISITION OR CAPITAL IMPROVEMENTS IN THE MANUFACTURED HOME PARK.
  (D) THE RETURN ON THE MANUFACTURED HOME PARK OWNER'S EQUITY INVESTMENT
OVER THE PAST THREE YEARS, AND THE REASONS  OFFERED  BY  THE  OWNER  FOR
SEEKING AN INCREASE IN THE RETURN ON HIS OR HER INVESTMENT.
  (E) A SAMPLING OF CURRENT LOT RENTS IN THE REGION IN WHICH THE PARK IS
LOCATED.
  (F) ANY OTHER COSTS ASSERTED BY THE MANUFACTURED HOME PARK OWNER WHICH
ARE RELEVANT AND PROBATIVE OF THE NEED FOR AN INCREASE.
  8.  CONDITIONAL  APPROVAL. THE COURT MAY CONDITION ITS APPROVAL OF ANY
JUSTIFIED INCREASE UPON THE REDRESS OF CONDITIONS  IN  THE  MANUFACTURED
HOME  PARK WHICH THREATEN THE HEALTH AND SAFETY OF THE MANUFACTURED HOME
PARK TENANTS.
  9. ESCROW.  WHILE A CHALLENGE TO A  RENT  INCREASE  PURSUANT  TO  THIS
SECTION  IS PENDING, MANUFACTURED HOME PARK TENANTS SHALL PAY THE AMOUNT
OF THE RENT INCREASE TO THE MANUFACTURED HOME PARK OWNER, WHO SHALL HOLD
SUCH AMOUNTS IN ESCROW PENDING A MEDIATED AGREEMENT BETWEEN THE  PARTIES
OR  A FINAL DECISION FROM THE COURT, PROVIDED, HOWEVER, THAT NO MANUFAC-
TURED HOME PARK TENANT SHALL BE EVICTED  FOR  NON-PAYMENT  OF  THE  RENT
INCREASE  PRIOR TO A FINAL DISPOSITION OF THE MATTER BY THE COURT IN THE
COUNTY WHERE THE MANUFACTURED HOME PARK IS LOCATED. FAILURE BY THE MANU-
FACTURED HOME PARK OWNER TO  PLACE  SUCH  CHALLENGED  RENT  INCREASE  IN
ESCROW  SHALL  BE  PUNISHABLE  BY  A CIVIL PENALTY OF NOT MORE THAN FIVE
HUNDRED DOLLARS.  IF THE PETITIONERS APPEAL, THE MANUFACTURED HOME  PARK
OWNER  MAY REMOVE THE RENT INCREASE FUNDS FROM ESCROW, MINGLE SUCH FUNDS
WITH ANY OTHER FUNDS, AND EVICT A TENANT WHO HAS NOT PAID  THE  INCREASE
FOR  NON-PAYMENT OF RENT. IF THE COURT ENTERS A FINAL JUDGMENT DECLARING
THE RENT INCREASES OR ANY PART THEREOF UNJUSTIFIABLE,  THE  MANUFACTURED
HOME  PARK  OWNER  SHALL  REFUND THE AMOUNT OF UNJUSTIFIABLE INCREASE TO
EACH TENANT HOUSEHOLD.
  S 5. This act shall take effect on the first of January next  succeed-
ing the date  on which it shall have become a law.

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