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-
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
(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
(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.
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
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
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
(B) INCREASES IN THE MANUFACTURED HOME PARK OWNER'S PROPERTY TAXES ON
(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
(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
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.