S T A T E O F N E W Y O R K
________________________________________________________________________
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
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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.