S T A T E   O F   N E W   Y O R K
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                                  7534

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             April 14, 2009
                               ___________

Introduced by M. of A. THIELE -- read once and referred to the Committee
  on Judiciary

AN ACT to amend the real property law and the judiciary law, in relation
  to  providing  recourse  for 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
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 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, and the cost of relocating a manufactured home, even  if
such  a  vacancy  exists, is prohibitively high and threatens the struc-
tural integrity of many manufactured homes.
  (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.

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

                                                           LBD10805-01-9

A. 7534                             2

  (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. A MANUFACTURED HOME PARK OWNER OR OPERATOR SHALL FULLY DISCLOSE  IN
WRITING  ALL  TERMS  AND  CONDITIONS  OF  THE TENANCY INCLUDING, BUT NOT
LIMITED TO, RENTAL, UTILITY AND SERVICE CHARGES, PRIOR TO ENTERING  INTO
A  RENTAL  AGREEMENT  WITH A PROSPECTIVE TENANT. NO CHARGES SO DISCLOSED
MAY BE INCREASED BY THE MANUFACTURED HOME PARK OWNER OR OPERATOR WITHOUT
A SPECIFIC EXPLANATION FOR A JUSTIFIABLE  INCREASE  AND  SPECIFYING  THE
DATE  OF  IMPLEMENTATION  OF  SUCH INCREASE, WHICH DATE SHALL BE NO LESS
THAN SIXTY DAYS AFTER WRITTEN NOTICE TO THE TENANT, AND SUBJECT  TO  THE
RECOURSE PROVIDED UNDER SECTION TWO HUNDRED THIRTY-THREE-B OF THIS ARTI-
CLE. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PERMIT A MANUFACTURED
HOME  PARK  OWNER  OR  OPERATOR  TO  VARY THE TERMS OF A WRITTEN OR ORAL
RENTAL AGREEMENT WITHOUT THE EXPRESS WRITTEN CONSENT OF THE TENANT.
  S 3. The real property law is amended by adding a new section 233-b to
read as follows:
  S 233-B.  RECOURSE FOR CERTAIN RENT INCREASES; SUFFOLK COUNTY. 1.  ANY
NOTICE  OF AN INCREASE IN LOT RENT WHICH EXCEEDS THE PERCENTAGE INCREASE
IN THE CONSUMER PRICE INDEX SINCE THE CURRENT LOT RENT BECAME  EFFECTIVE
MAY BE CHALLENGED ACCORDING TO THE PROCEDURES SET FORTH IN THIS SECTION.
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  THE COST OF ANY UTILITY OR OTHER ONGOING SERVICE THE RESPONSI-
BILITY FOR WHICH IS TRANSFERRED FROM THE MANUFACTURED HOME PARK OWNER TO
THE MANUFACTURED HOMEOWNER.
  2. WITHIN THIRTY DAYS OF THE RECEIPT OF NOTICE OF AN INCREASE  IN  LOT
RENT  UNDER  THIS  SECTION,  ONE-THIRD OF MANUFACTURED HOMEOWNERS IN THE
PARK, ONE VOTE PER MANUFACTURED HOME UNIT, MAY BRING A PETITION REQUEST-
ING THAT THE COURT ALTERNATIVE DISPUTE RESOLUTION  SERVICE  PURSUANT  TO
SECTION  THIRTY-NINE-C  OF  THE JUDICIARY LAW, CONDUCT A MEDIATION IN AN
ATTEMPT TO ASSIST THE PARTIES IN REACHING  AN  AGREEMENT  REGARDING  THE
AMOUNT  OF THE RENT INCREASE. IF NO PETITION IS FILED IN ACCORDANCE WITH
THE REQUIREMENTS OF THIS SUBDIVISION, NO CHALLENGE MAY BE  MADE  TO  THE
PROPOSED RENT INCREASE.
  3.  IF  AFTER  SIXTY  DAYS FROM THE FILING OF THE PETITION THE PARTIES
HAVE NOT REACHED AN AGREEMENT, ANY FIVE SIGNATORIES TO THE PETITION,  OR
FIFTY  PERCENT OF THE SIGNATORIES IN A MANUFACTURED HOME PARK CONTAINING
FEWER THAN TEN OCCUPIED HOMES, MAY FILE AN ACTION IN THE SUFFOLK  COUNTY
COURT  SEEKING A DECLARATORY JUDGMENT THAT THE RENT INCREASE IS UNJUSTI-
FIABLE.
  4. A HEARING ON THE PETITION SHALL BE HELD WITHIN NINETY DAYS  OF  THE
FILING OF THE PETITION AND THE COURT SHALL ISSUE A DECISION WITHIN SIXTY
DAYS.
  5.  IN ANY PROCEEDINGS UNDER THIS SECTION THERE SHALL BE AN IRREBUTTA-
BLE 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.
  6. IN DETERMINING WHETHER THE PROPOSED RENT INCREASE IS UNJUSTIFIABLE,
THE COURT SHALL CONSIDER:
  (A)   INCREASES  IN  THE  MANUFACTURED  HOME  PARK  OWNER'S  OPERATING
EXPENSES.

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  (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.
  7. IF THE COURT FINDS THAT THERE ARE DETERIORATING CONDITIONS  IN  THE
PARK RELATIVE TO ROADS, WATER SUPPLY, SEWAGE DISPOSAL, ELECTRIC SERVICE,
OR OTHER CONDITIONS WHICH THREATEN THE HEALTH AND SAFETY OF THE MANUFAC-
TURED  HOME PARK TENANTS, IT MAY CONDITION ITS APPROVAL OF ANY OTHERWISE
JUSTIFIABLE RENT INCREASES UPON A SHOWING BY THE MANUFACTURED HOME  PARK
OWNER  THAT  HE OR SHE HAS MADE SPECIFIC APPROPRIATE PLANS FOR REPAIR OF
THE DEFECTIVE CONDITIONS.
  8. 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 MANUFACTURED
HOME PARK TENANT SHALL BE EVICTED FOR NON-PAYMENT OF THE  RENT  INCREASE
PRIOR  TO  A  FINAL  DISPOSITION  OF THE MATTER BY THE COURT ALTERNATIVE
DISPUTE RESOLUTION SERVICE OR THE SUFFOLK COUNTY COURT. FAILURE  BY  THE
MANUFACTURED  HOME  PARK OWNER TO PLACE SUCH CHALLENGED RENT INCREASE IN
ESCROW SHALL CONSTITUTE A  VIOLATION.  IF  THE  PETITIONERS  APPEAL  THE
SUFFOLK  COUNTY  COURT  DECISION  TO THE SUPREME COURT, 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 4. The judiciary law is amended by adding a new section 39-c to read
as follows:
  S 39-C.  COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE. 1. COURT ALTER-
NATIVE DISPUTE RESOLUTION  SERVICE.  THERE  IS  ESTABLISHED  WITHIN  THE
COURTS  A COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE TO PROVIDE ALTER-
NATIVE DISPUTE  RESOLUTION,  REFERRED  TO  IN  THIS  SECTION  AS  "ADR,"
SERVICES IN THE COURTS THROUGHOUT THE STATE.
  2. ADR PROVIDERS. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL CONTRACT
FOR  THE  SERVICES  OF  QUALIFIED  PERSONS  OR ORGANIZATIONS TO SERVE AS
PROVIDERS OF ADR SERVICES TO PARTIES. THE ADR PROVIDERS ARE NOT  EMPLOY-
EES  OF  THE STATE FOR ANY PURPOSE. THE ADR PROVIDERS ARE ENTITLED TO BE
PAID A REASONABLE PER DIEM  FEE  PLUS  REIMBURSEMENT  OF  THEIR  ACTUAL,
NECESSARY  AND  REASONABLE EXPENSES INCURRED IN THE PERFORMANCE OF THEIR
DUTIES, CONSISTENT WITH POLICIES ESTABLISHED BY THE CHIEF  ADMINISTRATOR
OF THE COURTS.
  3.  IMMUNITY FROM CIVIL LIABILITY. A PERSON SERVING AS AN ADR PROVIDER
UNDER CONTRACT WITH THE CHIEF ADMINISTRATOR OF  THE  COURTS  OR  AS  THE
DIRECTOR  OF  THE COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE IS IMMUNE
FROM ANY CIVIL LIABILITY, AS ARE EMPLOYEES OF GOVERNMENTAL ENTITIES, FOR
ACTS PERFORMED WITHIN THE SCOPE OF  THE  PROVIDER'S  OR  THE  DIRECTOR'S
DUTIES.
  4.  STAFF.  WITH  THE  ADVICE  AND  APPROVAL  OF THE COURT ALTERNATIVE
DISPUTE RESOLUTION SERVICE COMMITTEE, THE  CHIEF  ADMINISTRATOR  OF  THE

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COURTS  SHALL  EMPLOY OR CONTRACT WITH A PERSON TO SERVE AS THE DIRECTOR
OF THE COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE. THE CHIEF  ADMINIS-
TRATOR  OF  THE  COURTS SHALL PROVIDE OTHER NECESSARY STAFF AND CLERICAL
ASSISTANCE  TO  THE COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE, WITHIN
THE LIMITS OF FUNDS AVAILABLE.
  5. FACILITIES. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL  PROVIDE  A
PRINCIPAL  OFFICE  FOR  THE COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE
AND SHALL ARRANGE FOR FACILITIES THROUGHOUT THE STATE AS  NECESSARY  AND
ADEQUATE  FOR  THE  CONDUCT  OF ADR SESSIONS, WITHIN THE LIMITS OF FUNDS
AVAILABLE.
  6. COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE COMMITTEE.  THE  COURT
ALTERNATIVE  DISPUTE  RESOLUTION  SERVICE  COMMITTEE, OR "COMMITTEE," IS
ESTABLISHED TO SET POLICY FOR AND MONITOR THE COURT ALTERNATIVE  DISPUTE
RESOLUTION SERVICE. THE COMMITTEE CONSISTS OF:
  (A) THE CHIEF JUSTICE OF THE COURT OF APPEALS OR A DESIGNEE;
  (B) THE CHIEF ADMINISTRATOR OF THE COURTS OR A DESIGNEE;
  (C)  A JUSTICE OF THE SUPREME COURT, WHO IS APPOINTED BY AND SERVES AT
THE PLEASURE OF THE CHIEF JUSTICE OF THE COURT OF APPEALS;
  (D) A JUDGE OF THE DISTRICT COURT, WHO IS APPOINTED BY AND  SERVES  AT
THE PLEASURE OF THE CHIEF JUSTICE OF THE COURT OF APPEALS; AND
  (E) ANY ADDITIONAL MEMBERS APPOINTED BY THE CHIEF JUSTICE OF THE COURT
OF APPEALS THAT THE CHIEF JUSTICE CONSIDERS NECESSARY TO THE COMMITTEE'S
OPERATION.
  7.  FEES. WHEN A COURT REFERS PARTIES TO THE COURT ALTERNATIVE DISPUTE
RESOLUTION SERVICE, THE COURT SHALL ASSESS  THE  PARTIES  A  FEE  TO  BE
APPORTIONED  EQUALLY  AMONG  THE  PARTIES,  UNLESS  THE  COURT OTHERWISE
DIRECTS. THE FEE MUST BE DEPOSITED IN THE DEDICATED ACCOUNT  CREATED  IN
SUBDIVISION EIGHT OF THIS SECTION.
  A  PARTY  MAY FILE AN IN FORMA PAUPERIS APPLICATION FOR WAIVER OF FEE.
IF THE COURT FINDS THAT THE PARTY DOES NOT HAVE SUFFICIENT FUNDS TO  PAY
THE FEE, IT SHALL ORDER THE FEE WAIVED.
  8. COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE FUND. THE COURT ALTER-
NATIVE  DISPUTE  RESOLUTION SERVICE FUND IS ESTABLISHED AS A NONLAPSING,
DEDICATED FUND WITHIN THE OFFICE  OF  THE  CHIEF  ADMINISTRATOR.    FEES
COLLECTED  FOR  ADR  SERVICES  PROVIDED PURSUANT TO THIS SECTION MUST BE
DEPOSITED IN THE FUND.
  EXCEPT AS OTHERWISE  PROVIDED  IN  THIS  SECTION,  THE  ADMINISTRATIVE
OFFICE  OF  THE COURTS SHALL USE ONE HUNDRED PERCENT OF THE RESOURCES IN
THE FUNDS FROM NONDESIGNATED CASES TO COVER THE COSTS OF  PROVIDING  ADR
SERVICES AS REQUIRED UNDER THIS SECTION. ALL FUNDS FROM CASES HANDLED BY
THE  COURT  ALTERNATIVE  DISPUTE RESOLUTION SERVICE MUST BE USED FOR THE
COSTS OF PROVIDING ADR SERVICES AS REQUIRED UNDER THIS SECTION.
  9. RULES. THE COURT OF APPEALS SHALL ADOPT RULES TO GOVERN THE  REFER-
RAL OF CASES TO THE COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE.
  10.  LAND  USE  MEDIATION. THE LAND USE MEDIATION PROGRAM IS A PROGRAM
WITHIN THE COURT ALTERNATIVE DISPUTE RESOLUTION SERVICE.
  (A) THE DIRECTOR OF THE COURT ALTERNATIVE DISPUTE  RESOLUTION  SERVICE
SHALL ADMINISTER THE LAND USE MEDIATION PROGRAM.
  (B)  A  LAND  USE MEDIATION FUND IS ESTABLISHED AS A NONLAPSING, DEDI-
CATED FUND WITHIN THE OFFICE OF THE CHIEF ADMINISTRATOR OF  THE  COURTS.
FEES COLLECTED FOR MEDIATION SERVICES MUST BE DEPOSITED IN THE FUND. THE
CHIEF ADMINISTRATOR OF THE COURTS SHALL USE THE RESOURCES IN THE FUND TO
COVER THE COSTS OF PROVIDING MEDIATION SERVICES.
  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.