S T A T E   O F   N E W   Y O R K
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    S. 5860--A                                            A. 8081--A

                       2013-2014 Regular Sessions

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

                              June 18, 2013
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Rules --
  recommitted to the Committee on Housing,  Construction  and  Community
  Development  in  accordance  with  Senate  Rule 6, sec. 8 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once  and  referred
  to the Committee on Judiciary -- recommitted to the Committee on Judi-
  ciary  in  accordance  with  Assembly  Rule  3,  sec.  2  -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

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 providing for the
  repeal of certain provisions upon expiration thereof

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

  Section  1.   Subdivision e of section 233 of the real property law is
amended by adding a new paragraph 4 to read as follows:
  4. RENT INCREASES FOR MANUFACTURED  HOMEOWNERS,  INCLUDING  ALL  FEES,
RENTS,  CHARGES,  ASSESSMENTS  AND  UTILITIES,  SHALL  BE SUBJECT TO THE
PROVISIONS OF SECTION TWO HUNDRED THIRTY-THREE-B OF THIS ARTICLE.
  S 2. 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11585-02-4
              

S. 5860--A                          2                         A. 8081--A

  S 3. 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.
DEFINITIONS. (A) ALL DEFINITIONS IN SUBDIVISION A OF SECTION TWO HUNDRED
THIRTY-THREE OF THIS ARTICLE SHALL BE APPLICABLE TO THIS SECTION.
  (B) "CONSUMER PRICE INDEX" MEANS THE  CONSUMER  PRICE  INDEX  FOR  ALL
ITEMS-ALL  URBAN  CONSUMERS FOR NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND
INDEX PUBLISHED MONTHLY BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU
OF LABOR STATISTICS.
  (C) "INCREASE IN LOT RENT" MEANS ALL  COST  INCREASES,  INCLUDING  ALL
INCREASED RENT, FEES, CHARGES, ASSESSMENTS AND UTILITIES.
  (D)  "COMMISSIONER"  MEANS  THE  COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL.
  (E) "OPERATING COSTS" MEANS THE COSTS OF MAINTAINING AND OPERATING THE
MANUFACTURED HOME COMMUNITY, INCLUDING, BUT NOT  LIMITED  TO,  OPERATING
EXPENSES, TAXES, ASSESSMENTS AND OTHER GOVERNMENTAL FEES, COSTS OF MAIN-
TENANCE AND OPERATION OF SEWER AND WATER SYSTEMS, DEBT SERVICE AND CAPI-
TAL  EXPENDITURES  OF  TEN  THOUSAND  DOLLARS OR MORE WHICH ARE DIRECTLY
RELATED  TO  ACQUISITION  OR  MAJOR  CAPITAL  IMPROVEMENTS,   REASONABLE
RESERVES  FOR  FUTURE  CAPITAL  IMPROVEMENTS,  AND  A REASONABLE RATE OF
RETURN ON THE MANUFACTURED HOME COMMUNITY OWNER'S EQUITY INVESTMENT.
  2. APPLICABILITY. THIS SECTION SHALL APPLY TO MANUFACTURED HOME  PARKS
WHICH  ARE  USED  FOR  THE  ACCOMMODATION  OF FORTY OR MORE MANUFACTURED
HOMES.
  3. 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.
  4. BASIS FOR CHALLENGE. AN INCREASE IN RENT WHICH EXCEEDS THE PERCENT-
AGE INCREASE IN THE CONSUMER PRICE INDEX OR THREE PERCENT  WHICHEVER  IS
GREATER SINCE THE CURRENT LOT RENT BECAME EFFECTIVE MAY BE CHALLENGED BY
AN AGGRIEVED MANUFACTURED HOMEOWNER AS UNJUSTIFIED.
  5.  PRESUMPTION.  IN ANY PROCEEDINGS UNDER THIS SECTION THERE SHALL BE
AN IRREFUTABLE 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.
  6. PROCEDURE. (A) NOT LESS THAN TEN PERCENT OF THE  MANUFACTURED  HOME
TENANTS  IN  A  MANUFACTURED  HOME  PARK  MAY  FILE A COMPLAINT WITH THE
COMMISSIONER  ALLEGING  THAT  A  RENT  INCREASE  IS  UNJUSTIFIED.   SUCH
COMPLAINT  MUST BE FILED WITHIN FORTY-FIVE DAYS OF RECEIPT OF THE NOTICE
OF THE INCREASE IN LOT RENT. IN THE EVENT THAT MORE THAN  ONE  COMPLAINT
IS  FILED  IN  THE  SAME YEAR WITH RESPECT TO THE SAME MANUFACTURED HOME
PARK, THE COMMISSIONER SHALL CONSOLIDATE SUCH COMPLAINTS FOR  RESOLUTION
IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
  (B)  UPON  RECEIPT  OF  ONE OR MORE COMPLAINTS ALLEGING AN UNJUSTIFIED
INCREASE IN LOT RENT, THE COMMISSIONER  SHALL  REVIEW  THE  INCREASE  TO
DETERMINE WHETHER SUCH INCREASE IS PRESUMPTIVELY JUSTIFIED IN ACCORDANCE
WITH  SUBDIVISION FIVE OF THIS SECTION. SUCH DETERMINATION SHALL BE MADE
UPON SUBMISSION OF DOCUMENTATION SUBMITTED BY THE MANUFACTURED HOME PARK
OWNER AND THE COMPLAINANTS AND ANY OTHER DOCUMENTATION OR  TESTIMONY  AS
MAY REASONABLY BE REQUIRED BY THE COMMISSIONER. THE COMPLAINANTS AND THE
MANUFACTURED  HOME  PARK  OWNER  SHALL HAVE THE RIGHT TO APPEAR AND GIVE
TESTIMONY TO THE COMMISSIONER.
  (C) UPON COMPLETION OF SUCH REVIEW, IF THE INCREASE IS NOT  DETERMINED
TO  BE PRESUMPTIVELY JUSTIFIED, OR AT ANY OTHER TIME AFTER THE FILING OF
A COMPLAINT PURSUANT TO THIS SECTION, THE COMMISSIONER SHALL ATTEMPT  TO

S. 5860--A                          3                         A. 8081--A

INFORMALLY  RESOLVE THE DISPUTE BETWEEN THE MANUFACTURED HOME PARK OWNER
AND THE COMPLAINANTS.
  (D)  IF  SUCH  INFORMAL  ATTEMPTS  AT RESOLUTION ARE UNSUCCESSFUL, THE
COMMISSIONER  SHALL  REQUIRE  THE  MANUFACTURED  HOME  PARK  OWNER   AND
COMPLAINANTS  TO  APPEAR BEFORE A MEDIATOR TO BE SELECTED BY THE COMMIS-
SIONER. THE COSTS OF SUCH MEDIATION SHALL BE BORNE EQUALLY BY THE  MANU-
FACTURED  PARK  COMMUNITY OWNER AND THE COMPLAINANTS. IF, AT THE CONCLU-
SION OF THE MEDIATION, THERE IS NO AGREEMENT  BETWEEN  THE  MANUFACTURED
HOME  PARK  OWNER AND THE COMPLAINANTS, THE MANUFACTURED HOME PARK OWNER
SHALL HAVE THE OPPORTUNITY WITHIN TEN DAYS  TO  MAKE  A  FINAL,  BINDING
OFFER TO REDUCE THE AMOUNT OF THE RENT INCREASE.
  (E)  IF  NO  SUCH OFFER IS MADE OR SUCH OFFER IS REJECTED, THE COMMIS-
SIONER SHALL THEREUPON PROCEED TO  MAKE  A  FINAL  DETERMINATION  AS  TO
WHETHER  THE AMOUNT OF THE PROPOSED RENT INCREASE, AS FINALLY OFFERED BY
THE MANUFACTURED HOME PARK OWNER IS UNJUSTIFIED.
  (F) IN DETERMINING WHETHER THE PROPOSED INCREASE IN LOT RENT IS UNJUS-
TIFIABLE, THE COMMISSIONER SHALL ALLOW THE MANUFACTURED  PARK  OWNER  TO
RECOUP OPERATING COSTS.
  (G) WHILE A PROCEEDING CHALLENGING AN INCREASE IN LOT RENT 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  DETERMINATION  OF  THE  COMMISSIONER,  PROVIDED
HOWEVER,  THAT  NO  MANUFACTURED  HOME  PARK TENANT SHALL BE EVICTED FOR
NON-PAYMENT OF THE RENT INCREASE PRIOR TO A  FINAL  DISPOSITION  OF  THE
MATTER  BY THE COMMISSIONER. FAILURE BY THE MANUFACTURED HOME PARK OWNER
TO PLACE SUCH CHALLENGED INCREASE IN LOT RENT IN ESCROW SHALL BE PUNISH-
ABLE BY A CIVIL PENALTY OF NOT MORE THAN FIVE HUNDRED  DOLLARS.  IF  THE
COMPLAINANTS  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  COMMISSIONER  DECLARES  INCREASE IN LOT RENT OR ANY PART
THEREOF UNJUSTIFIED, THE MANUFACTURED HOME PARK OWNER SHALL  REFUND  THE
AMOUNT OF UNJUSTIFIED INCREASE TO EACH MANUFACTURED HOME TENANT.
  (H)  ANY  FINDINGS  MADE BY THE COMMISSIONER WITH RESPECT TO WHETHER A
PROPOSED INCREASE IN LOT RENT IS PRESUMPTIVELY LAWFUL OR IS  UNJUSTIFIED
SHALL  BE BINDING UPON ALL MANUFACTURED HOME TENANTS IN THE MANUFACTURED
HOME PARK.
  7. REVIEW. THE  FINAL  DETERMINATION  OF  THE  COMMISSIONER  SHALL  BE
SUBJECT  TO  REVIEW PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRAC-
TICE LAW AND RULES.
  S 4. 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.