NY State Senate Bill 2019-S6242

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to housing, construction and community development
May 29, 2019	referred to housing, construction and community development

co-Sponsors

2019-S6242 (ACTIVE) - Details

See Assembly Version of this Bill:: A7335
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Law
Laws Affected:: Amd §233, RP L

2019-S6242 (ACTIVE) - Summary

Regulates the rates manufactured home park owners may increase rents for manufactured home tenants' lots.

2019-S6242 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6242

SPONSOR: METZGER
 
TITLE OF BILL:  An act to amend the real property law, in relation to
rent increases in manufactured home parks

 
PURPOSE:

To limit rent increases in manufactured home parks to the three year
average of inflation plus acceptable allowances, and require the owners
of manufactured home parks to justify such rent increases upon tenants
request.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one adds a new subdivision (y) to section 233 of the Real Prop-
erty Law establishing a program of rent justification as follows:

Subsection 1, paragraph (a) states that a manufactured home park owner
cannot raise lot rent above the average Consumer Price Index from the
preceding 36-month period, unless the increase is directly related to

operating, maintaining, or improving the park for specific reasons and
is approved by the Division of Housing and Community Renewal. The
specific reasons for which rent can be increased above CPI are as
follows: capital projects, changes in property taxes, changes in utility
charges, changes in insurance costs and financing associated with the
park, changes in operating expenses such as garbage collection, sewer
service, septic service, and water service.  Subsection 1, paragraph (b)
states that (i) civil penalties, criminal fines, or the cost of any
litigation into the rent and (ii) any increases for capital improvements
must expire when the work has been paid for.

Subsection 1, paragraph (c) states that when a tenant first moves in to
the park, they shall be offered a lot rent not exceeding the average
rent for lots similar in size within the manufactured home park.

Subsection 2, paragraph (a) states that the park owner shall notify the
tenants' homeowner association and DHCR of all tenants affected by rent
increases.

Subsection 2, paragraph (b) states that if the rent increases is above
the 3-year average of CPI, DHCR shall schedule a meeting between the
park owner and the tenants to discuss the reasons for the increase.

Subsection 2, paragraph (c) states that if any party has not accepted
the proposed rent increase after the meeting, they shall have 30 days to
petition DHCR to appoint an arbitrator who can decide the matter pursu-
ant to article 75 of the civil practice law and rules.

Subsection 3 states that a manufactured home park owner who raises rents
above the 3-year average of CPI without DHCR approval shall be required
to immediately reduce the rent to the previous level and rebate the
unauthorized increase to the tenants with interest.

Subsection 4 states that manufactured home park cooperatives shall be
exempt from the provisions of this subdivision.

Section 2 of the bill sets forth the effective date.

 
JUSTIFICATION:

Manufactured Home tenants in New York State are currently faced with
rising rents, extra fees, and landlord harassment. This legislation
seeks to prevent these problems by providing state oversight and giving
tenants access to arbitration to fight unfair rent increases.

Manufactured home owners are often low- to moderate-income, and many are
senior citizens or on a fixed income. These constraints make rent
increases particularly hard to absorb for many people. This legislation
seeks to limit unnecessarily high rent increases, while still allowing
for all necessary expenses and maintenance, as well as park improve-
ments. This mechanism to oversee rent increases should be an effective
check against burdensome rent hikes.

This legislation should also serve as a deterrent for predatory owner-
ship practices. There is currently a nationwide trend of corporate,
out-of-state real estate speculators purchasing manufactured home parks
and changing the way business is done in order to extract more value
from the park. Common tactics include large rent increases, additional
fees, and reduction of services. This trend is beginning to appear in
New York State, and this legislation is necessary to curtail its spread.

This legislation is premised on the idea that tenants should not be at
the whim of arbitrary rent increases, and that New York has an interest
in ensuring that manufactured home parks are owned and operated by local
landlords, not out-of-state corporations. Changing policy to reflect
these goals can make New York friendlier to all residents.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S6242 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6242
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 29, 2019
                                ___________
 
 Introduced  by  Sen. METZGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10803-02-9

 S. 6242                             2
 
 WATER SERVICE; SEWER SERVICE;  SEPTIC  SERVICE;  WATER  DISPOSAL;  TRASH
 COLLECTION; AND EMPLOYEE EXPENSES.
   (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-

 S. 6242                             3
 
 TRATION  SUBJECT  TO THE PROVISIONS OF ARTICLE SEVENTY-FIVE OF THE CIVIL
 PRACTICE LAW AND RULES.
   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.

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Senate Bill S6242

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

co-Sponsors

2019-S6242 (ACTIVE) - Details

2019-S6242 (ACTIVE) - Summary

2019-S6242 (ACTIVE) - Sponsor Memo

2019-S6242 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jen Metzger

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

co-Sponsors

Julia Salazar

2019-S6242 (ACTIVE) - Details

2019-S6242 (ACTIVE) - Summary

2019-S6242 (ACTIVE) - Sponsor Memo

2019-S6242 (ACTIVE) - Bill Text download pdf

Comments