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
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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 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.