S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7335
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 25, 2019
                                ___________
 
 Introduced  by M. of A. BARRETT -- read once and referred to the Commit-
   tee on Housing
 
 AN ACT to amend the real property law, in relation to rent increases  in
   manufactured home parks
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 233 of the real property law is amended by adding a
 new subdivision y to read as follows:
   Y. 1. (A) THE OWNER OF A MANUFACTURED HOME PARK MAY NOT RAISE A  MANU-
 FACTURED  HOME TENANT'S LOT RENT ABOVE THE CONSUMER PRICE INDEX AVERAGED
 OVER THE MOST RECENTLY  AVAILABLE  PRECEDING  THIRTY-SIX  MONTH  PERIOD,
 UNLESS THE PROPOSED RENT INCREASE IS APPROVED BY THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL AND DIRECTLY RELATED TO OPERATING, MAINTAINING, OR
 IMPROVING THE MANUFACTURED HOME PARK FOR THE FOLLOWING PURPOSES:
   (I) THE COMPLETION AND INCURRING OF COSTS FOR ANY CAPITAL IMPROVEMENTS
 OR  REHABILITATION  WORK IN THE MANUFACTURED HOME PARK, AS DISTINGUISHED
 FROM ORDINARY REPAIR, REPLACEMENT, OR MAINTENANCE. CAPITAL  IMPROVEMENTS
 SHALL  INCLUDE ROADWAY IMPROVEMENTS, PLUMBING AND PIPING INFRASTRUCTURE,
 COMMUNITY STRUCTURES, NATURAL DISASTER RECOVERY. ALL  OTHER  MAINTENANCE
 SHALL  BE  CONSIDERED  ORDINARY,  AND  SHALL  NOT  BE GROUNDS FOR A RENT
 INCREASE. ALL RENT INCREASES RESULTING FROM CAPITAL  IMPROVEMENTS  SHALL
 EXPIRE ONCE THE IMPROVEMENT IS PAID FOR;
   (II)  CHANGES IN PROPERTY TAXES OR OTHER TAXES WITHIN THE MANUFACTURED
 HOME PARK;
   (III) CHANGES IN UTILITY CHARGES WITHIN THE MANUFACTURED HOME PARK;
   (IV) CHANGES IN INSURANCE COSTS  AND  FINANCING  ASSOCIATED  WITH  THE
 MANUFACTURED HOME PARK;
   (V)  CHANGES IN REASONABLE OPERATING AND MAINTENANCE EXPENSES RELATING
 TO THE MANUFACTURED HOME PARK INCLUDING, BUT NOT LIMITED TO  COSTS  FOR:
 WATER  SERVICE;  SEWER  SERVICE;  SEPTIC  SERVICE; WATER DISPOSAL; TRASH
 COLLECTION; AND EMPLOYEE EXPENSES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10803-02-9

 A. 7335                             2
 
   (B) (I) A MANUFACTURED HOME PARK OWNER SHALL NOT INCORPORATE THE  COST
 OF A CIVIL PENALTY, CRIMINAL FINE, OR LITIGATION-RELATED COSTS FOR RENT-
 RELATED PROCEEDINGS INTO RENT CHARGED UNDER ANY CIRCUMSTANCE.
   (II)  A  MANUFACTURED  HOME  PARK  OWNER SHALL NOT UTILIZE THE COST OF
 CAPITAL IMPROVEMENTS OR REHABILITATION WORK  AS  JUSTIFICATION  FOR  ANY
 FUTURE RENTAL INCREASE ONCE SUCH COST HAS BEEN FULLY RECOVERED BY RENTAL
 INCREASES  THAT WERE INCORPORATED INTO A PRIOR RENTAL INCREASE IN EXCESS
 OF THE CONSUMER PRICE INDEX AND WHERE SUCH  PRIOR  RENTAL  INCREASE  WAS
 PROPERLY IMPLEMENTED PURSUANT TO THIS SUBDIVISION.
   (C)  WHEN A MANUFACTURED HOME TENANT FIRST MOVES ONTO A LOT IN A MANU-
 FACTURED HOME PARK, THE TENANT SHALL BE  OFFERED  RENT  AT  A  RATE  NOT
 EXCEEDING  THE  AVERAGE  RENT FOR LOTS SIMILAR IN SIZE TO SUCH LOT WHICH
 ARE LOCATED WITHIN SUCH MANUFACTURED HOME PARK.
   2. (A) IN ADDITION TO THE NOTICE REQUIRED PURSUANT TO PARAGRAPH  THREE
 OF  SUBDIVISION  G OF THIS SECTION, A MANUFACTURED HOME PARK OWNER SHALL
 GIVE WRITTEN NOTICE TO THE HOME OWNERS' ASSOCIATION, IF ONE EXISTS,  AND
 THE DIVISION OF HOUSING AND COMMUNITY RENEWAL AT LEAST NINETY DAYS PRIOR
 TO ANY INCREASE IN RENT. THE NOTICE SHALL IDENTIFY ALL AFFECTED MANUFAC-
 TURED  HOME  OWNERS BY LOT NUMBER, NAME, GROUP OR PHASE. IF THE AFFECTED
 MANUFACTURED HOME OWNERS ARE NOT IDENTIFIED BY  NAME,  THE  MANUFACTURED
 HOME  PARK  OWNER  SHALL  MAKE  THE NAMES AND ADDRESSES AVAILABLE TO ANY
 AFFECTED MANUFACTURED HOME OWNER, THE HOME OWNERS' ASSOCIATION,  IF  ONE
 EXISTS, AND THE DIVISION OF HOUSING AND COMMUNITY RENEWAL UPON REQUEST.
   (B)  (I)  IF  THE  PROPOSED  RENT  INCREASE EXCEEDS THE CONSUMER PRICE
 INDEX, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL  SHALL  SCHEDULE  A
 FINAL  MEETING  BETWEEN  THE  PARTIES  AT A MUTUALLY-CONVENIENT TIME AND
 PLACE TO BE HELD WITHIN THIRTY DAYS FROM THE MAILING OF  THE  NOTICE  OF
 THE  RENT  INCREASE,  TO  DISCUSS  THE REASONS FOR THE INCREASE.  AT THE
 MANUFACTURED HOME PARK OWNER'S ELECTION, THE  DIVISION  OF  HOUSING  AND
 COMMUNITY  RENEWAL  SHALL  ALSO  SCHEDULE  ONE OR MORE OPTIONAL INFORMAL
 MEETINGS PRIOR TO THE FINAL MEETING. THE MANUFACTURED  HOME  PARK  OWNER
 PROPOSING  THE  RENT INCREASE SHALL RECOMMEND TO THE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL A DATE, TIME AND PLACE OF THE FINAL MEETING AND OF
 ANY PRECEDING INFORMAL MEETINGS, AND THE DIVISION OF HOUSING AND  COMMU-
 NITY RENEWAL SHALL AFFIRM SUCH RECOMMENDATION WITH THE MANUFACTURED HOME
 PARK OWNER, IF THE DIVISION FINDS THE DATE, TIME AND PLACE TO BE REASON-
 ABLE.  AT  OR  BEFORE THE FINAL MEETING THE MANUFACTURED HOME PARK OWNER
 SHALL, IN GOOD FAITH, DISCLOSE IN WRITING ALL OF  THE  MATERIAL  FACTORS
 RESULTING IN THE DECISION TO INCREASE THE RENT.
   (II)  THE  PARTIES  MAY  AGREE IN A WRITING SIGNED BY THE MANUFACTURED
 HOME PARK OWNER AND AT LEAST ONE AFFECTED MANUFACTURED HOME OWNER OR THE
 HOME OWNERS' ASSOCIATION TO EXTEND OR CONTINUE ANY MEETINGS REQUIRED  BY
 THIS  PARAGRAPH  TO  A DATE SPECIFIED IN THE WRITING AND APPROVED BY THE
 DIVISION OF HOUSING AND COMMUNITY RENEWAL AS  REASONABLE.    WITHIN  TWO
 BUSINESS  DAYS  OF  SIGNING AN AGREEMENT TO CONTINUE OR EXTEND MEETINGS,
 THE MANUFACTURED HOME PARK OWNER SHALL NOTIFY THE  DIVISION  OF  HOUSING
 AND  COMMUNITY RENEWAL OF SUCH AGREEMENT BY FORWARDING THE SIGNED AGREE-
 MENT TO THE DIVISION.
   (C) AFTER THE FINAL MEETING, ANY AFFECTED MANUFACTURED HOME OWNER  WHO
 HAS  NOT  ALREADY  ACCEPTED  THE  PROPOSED INCREASE, OR THE HOME OWNERS'
 ASSOCIATION ON BEHALF OF ONE OR MORE AFFECTED MANUFACTURED  HOME  OWNERS
 WHO  HAVE  NOT ALREADY ACCEPTED THE PROPOSED INCREASE MAY, WITHIN THIRTY
 DAYS FROM THE CONCLUSION OF THE FINAL MEETING, PETITION THE DIVISION  OF
 HOUSING  AND COMMUNITY RENEWAL TO APPOINT AN ARBITRATOR TO CONDUCT ARBI-
 TRATION SUBJECT TO THE PROVISIONS OF ARTICLE SEVENTY-FIVE OF  THE  CIVIL
 PRACTICE LAW AND RULES.

 A. 7335                             3

   3.  A  MANUFACTURED  HOME  PARK  OWNER  WHO RAISES A MANUFACTURED HOME
 OWNER'S RENT MORE THAN THE ANNUAL AVERAGE INCREASE OF THE CONSUMER PRICE
 INDEX FOR THE PRECEDING THIRTY-SIX MONTH PERIOD WITHOUT HAVING  OBTAINED
 APPROVAL  OF  THE  DIVISION  OF  HOUSING  AND COMMUNITY RENEWAL SHALL BE
 REQUIRED  TO  IMMEDIATELY REDUCE THE RENT TO THE AMOUNT IN EFFECT BEFORE
 THE UNAUTHORIZED INCREASE AND REBATE THE UNAUTHORIZED RENT COLLECTED  TO
 THE MANUFACTURED HOME OWNERS WITH INTEREST.
   4.  MANUFACTURED  HOME  PARK  COOPERATIVES  SHALL  BE  EXEMPT FROM THE
 PROVISIONS OF THIS SUBDIVISION.
   § 2. This act shall take effect immediately.