Bill Text: NY S03177 | 2011-2012 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to providing recourse for manufactured homeowners in manufactured home parks confronted with unjustifiable rent increases; creates a local option in counties in New York state to provide such protection.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO JUDICIARY [S03177 Detail]

Download: New_York-2011-S03177-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
           S. 3177                                                  A. 5029
                              2011-2012 Regular Sessions
                             S E N A T E - A S S E M B L Y
                                   February 10, 2011
                                      ___________
       IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
         ed, and when printed to be committed to the Committee on Judiciary
       IN ASSEMBLY -- Introduced by M. of A. THIELE, LOSQUADRO -- 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:
    1    Section  1.  Legislative  findings. The legislature finds and declares
    2  that:
    3    (a) Factors unique to home ownership in manufactured home parks in New
    4  York state require  that  the  owners  of  such  manufactured  homes  be
    5  protected from involuntary forfeiture of their homes due to unreasonable
    6  increases in lot rent.
    7    (b)  Homeownership  in such manufactured home parks differs from other
    8  forms of homeownership as well as from the  traditional  landlord-tenant
    9  relationship. Unlike other homeowners, because the manufactured homeown-
   10  ers  do  not  control  the land on which their manufactured homes exist,
   11  they have no control over this  substantial  portion  of  their  housing
   12  costs.
   13    (c)  Vacant  lots  on which to place an existing manufactured home are
   14  extremely rare in New York state, and the cost of relocating a  manufac-
   15  tured  home,  even  if  such a vacancy exists, is prohibitively high and
   16  threatens the structural integrity of many manufactured homes.
   17    (d) The  manufactured  homeowners'  total  lack  of  bargaining  power
   18  disrupts the normal operation of market forces and renders such manufac-
   19  tured  homeowners  captive  to  whatever  terms a manufactured home park
   20  owner may choose to impose. Although many manufactured home park  owners
   21  choose  not  to  take advantage of their superior bargaining power, many
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07661-01-1
       S. 3177                             2                            A. 5029
    1  do. This often results in manufactured homeowners being evicted  because
    2  of  manufactured  home  park  rents  they can no longer afford, and as a
    3  result, losing their manufactured home altogether because  there  is  no
    4  alternative site on which to place such home.
    5    (e)  Under current law, manufactured homeowners who rent lots in manu-
    6  factured home parks have no legal remedy for an unjustifiable and unrea-
    7  sonable rent increase.
    8    S 2. Subdivision e of section 233 of the real property law is  amended
    9  by adding a new paragraph 4 to read as follows:
   10    4. ALL RENT INCREASES, INCLUDING ALL FEES, RENTS, CHARGES, ASSESSMENTS
   11  AND  UTILITIES,  SHALL  BE  SUBJECT  TO  JUDICIAL  CHALLENGE PURSUANT TO
   12  SECTION TWO HUNDRED THIRTY-THREE-B  OF  THIS  ARTICLE  FOR  MANUFACTURED
   13  HOMEOWNERS.
   14    S  3. Paragraph 2 of subdivision g of section 233 of the real property
   15  law, as amended by chapter 566 of the laws of 1996, is amended  to  read
   16  as follows:
   17    2.  A  manufactured  home  park owner or operator shall be required to
   18  fully disclose in writing  all  fees,  charges,  assessments,  including
   19  rental  fees, rules and regulations prior to [a manufactured home tenant
   20  assuming occupancy] ENTERING INTO A RENTAL AGREEMENT WITH A  PROSPECTIVE
   21  TENANT in the manufactured home park.
   22    S 4. The real property law is amended by adding a new section 233-b to
   23  read as follows:
   24    S  233-B.  UNJUSTIFIED  RENT INCREASES IN MANUFACTURED HOME PARKS.  1.
   25  LOCAL OPTION. THE PROVISIONS OF THIS SECTION SHALL APPLY IN  ANY  COUNTY
   26  IN  WHICH  THE  GOVERNING  BOARD  OF  SUCH COUNTY HAS PASSED A LOCAL LAW
   27  ADOPTING THE PROVISIONS OF THIS SECTION.
   28    2. SCOPE. TO BE ELIGIBLE FOR THIS REMEDY, THE MANUFACTURED  HOME  MUST
   29  BE THE PRIMARY RESIDENCE OF THE MANUFACTURED HOMEOWNER.
   30    3.  PRIMA FACIE CASE. AN INCREASE IN RENT WHICH EXCEEDS THE PERCENTAGE
   31  INCREASE IN THE CONSUMER PRICE INDEX SINCE THE CURRENT LOT  RENT  BECAME
   32  EFFECTIVE  MAY  BE  CHALLENGED BY AN AGGRIEVED MANUFACTURED HOMEOWNER AS
   33  UNJUSTIFIED. THE TERM "CONSUMER PRICE INDEX" MEANS THE  INDEX  PUBLISHED
   34  MONTHLY  BY  THE  UNITED  STATES  DEPARTMENT  OF  LABOR, BUREAU OF LABOR
   35  STATISTICS, FOR  THE  APPLICABLE  NEW  YORK  REGION.  IN  THIS  SECTION,
   36  "INCREASE  IN  LOT  RENT"  INCLUDES  ALL  COST  INCREASES, INCLUDING ALL
   37  INCREASED RENT, FEES, CHARGES, ASSESSMENTS AND UTILITIES.
   38    4. JOINDER. MULTIPLE AGGRIEVED MANUFACTURED HOMEOWNERS MAY JOIN IN THE
   39  SAME ACTION WHERE THERE IS A COMMON QUESTION OF LAW OR FACT.
   40    5. VENUE AND STATUTE OF LIMITATION. WITHIN NINETY DAYS OF  THE  NOTICE
   41  OF  THE PROPOSED INCREASE, AN AGGRIEVED MANUFACTURED HOMEOWNER MAY CHAL-
   42  LENGE SUCH INCREASE BY FILING AN ACTION IN THE  COUNTY  WHERE  THE  REAL
   43  PROPERTY  IS  LOCATED  SEEKING  A  DECLARATORY  JUDGMENT  THAT  THE RENT
   44  INCREASE IS UNJUSTIFIABLE.
   45    6. PRESUMPTION.  IN ANY PROCEEDINGS UNDER THIS SECTION THERE SHALL  BE
   46  AN IRREBUTTABLE PRESUMPTION THAT A RENT INCREASE IS JUSTIFIABLE WHEN THE
   47  AMOUNT  OF  SUCH INCREASE DOES NOT EXCEED THE TENANT'S PRO-RATA SHARE IN
   48  OPERATING COSTS AND PROPERTY TAXES FOR THE  MANUFACTURED  HOME  PARK  IN
   49  WHICH THE TENANT RESIDES.
   50    7.  STANDARD FOR JUDICIAL REVIEW.  IN DETERMINING WHETHER THE PROPOSED
   51  RENT INCREASE IS UNJUSTIFIABLE, THE COURT SHALL CONSIDER:
   52    (A)  INCREASES  IN  THE  MANUFACTURED  HOME  PARK  OWNER'S   OPERATING
   53  EXPENSES.
   54    (B)  INCREASES IN THE MANUFACTURED HOME PARK OWNER'S PROPERTY TAXES ON
   55  SUCH PARK.
       S. 3177                             3                            A. 5029
    1    (C) INCREASES IN THE COST OF DEBT SERVICE WHICH IS DIRECTLY RELATED TO
    2  ACQUISITION OR CAPITAL IMPROVEMENTS IN THE MANUFACTURED HOME PARK.
    3    (D) THE RETURN ON THE MANUFACTURED HOME PARK OWNER'S EQUITY INVESTMENT
    4  OVER  THE  PAST  THREE  YEARS,  AND THE REASONS OFFERED BY THE OWNER FOR
    5  SEEKING AN INCREASE IN THE RETURN ON HIS OR HER INVESTMENT.
    6    (E) A SAMPLING OF CURRENT LOT RENTS IN THE REGION IN WHICH THE PARK IS
    7  LOCATED.
    8    (F) ANY OTHER COSTS ASSERTED BY THE MANUFACTURED HOME PARK OWNER WHICH
    9  ARE RELEVANT AND PROBATIVE OF THE NEED FOR AN INCREASE.
   10    8. CONDITIONAL APPROVAL. THE COURT MAY CONDITION ITS APPROVAL  OF  ANY
   11  JUSTIFIED  INCREASE  UPON  THE REDRESS OF CONDITIONS IN THE MANUFACTURED
   12  HOME PARK WHICH THREATEN THE HEALTH AND SAFETY OF THE MANUFACTURED  HOME
   13  PARK TENANTS.
   14    9.  ESCROW.    WHILE  A  CHALLENGE TO A RENT INCREASE PURSUANT TO THIS
   15  SECTION IS PENDING, MANUFACTURED HOME PARK TENANTS SHALL PAY THE  AMOUNT
   16  OF THE RENT INCREASE TO THE MANUFACTURED HOME PARK OWNER, WHO SHALL HOLD
   17  SUCH  AMOUNTS IN ESCROW PENDING A MEDIATED AGREEMENT BETWEEN THE PARTIES
   18  OR A FINAL DECISION FROM THE COURT, PROVIDED, HOWEVER, THAT NO  MANUFAC-
   19  TURED  HOME  PARK  TENANT  SHALL  BE EVICTED FOR NON-PAYMENT OF THE RENT
   20  INCREASE PRIOR TO A FINAL DISPOSITION OF THE MATTER BY THE COURT IN  THE
   21  COUNTY WHERE THE MANUFACTURED HOME PARK IS LOCATED. FAILURE BY THE MANU-
   22  FACTURED  HOME  PARK  OWNER  TO  PLACE  SUCH CHALLENGED RENT INCREASE IN
   23  ESCROW SHALL BE PUNISHABLE BY A CIVIL PENALTY  OF  NOT  MORE  THAN  FIVE
   24  HUNDRED  DOLLARS.  IF THE PETITIONERS APPEAL, THE MANUFACTURED HOME PARK
   25  OWNER MAY REMOVE THE RENT INCREASE FUNDS FROM ESCROW, MINGLE SUCH  FUNDS
   26  WITH  ANY  OTHER FUNDS, AND EVICT A TENANT WHO HAS NOT PAID THE INCREASE
   27  FOR NON-PAYMENT OF RENT. IF THE COURT ENTERS A FINAL JUDGMENT  DECLARING
   28  THE  RENT  INCREASES OR ANY PART THEREOF UNJUSTIFIABLE, THE MANUFACTURED
   29  HOME PARK OWNER SHALL REFUND THE AMOUNT  OF  UNJUSTIFIABLE  INCREASE  TO
   30  EACH TENANT HOUSEHOLD.
   31    10. EFFECT. WHERE ONE OR MORE MANUFACTURED HOMEOWNER BRINGS A SUCCESS-
   32  FUL JUDICIAL CHALLENGE THAT A RENT INCREASE IS UNJUSTIFIABLE PURSUANT TO
   33  THIS SECTION RESULTING IN THE REDUCTION OF RENT, SAID REMEDY SHALL APPLY
   34  TO ALL MANUFACTURED HOMEOWNERS IN THE MANUFACTURED HOME PARK AFFECTED BY
   35  SAID  RENT  INCREASE, REGARDLESS OF WHETHER OR NOT THE MANUFACTURED HOME
   36  IS A PRIMARY RESIDENCE.
   37    S 5. This act shall take effect on the first of January next  succeed-
   38  ing the date  on which it shall have become a law.