Senate Bill S4436

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

    S. 4436                                                  A. 6269

                       2015-2016 Regular Sessions

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

                             March 20, 2015
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Housing,
  Construction and Community Development

IN ASSEMBLY -- Introduced by M. of A.  THIELE,  GRAF,  JAFFEE,  PALUMBO,
  SCARBOROUGH,  WEPRIN  --  Multi-Sponsored  by -- M. of A. SKARTADOS --
  read once and referred to the Committee on Judiciary

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.
  (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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03063-01-5
              

S. 4436                             2                            A. 6269

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:
  (A)  INCREASES  IN  THE  MANUFACTURED  HOME  PARK  OWNER'S   OPERATING
EXPENSES.

S. 4436                             3                            A. 6269

  (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.