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

                                 6920--A

                            I N  S E N A T E

                            February 25, 2010
                               ___________

Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

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
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.

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

                                                           LBD08081-02-0

S. 6920--A                          2

  (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.
  (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.

S. 6920--A                          3

  (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.
  10. EFFECT. WHERE ONE OR MORE MANUFACTURED HOMEOWNER BRINGS A SUCCESS-
FUL JUDICIAL CHALLENGE THAT A RENT INCREASE IS UNJUSTIFIABLE PURSUANT TO
THIS SECTION RESULTING IN THE REDUCTION OF RENT, SAID REMEDY SHALL APPLY
TO ALL MANUFACTURED HOMEOWNERS IN THE MANUFACTURED HOME PARK AFFECTED BY
SAID RENT INCREASE, REGARDLESS OF WHETHER OR NOT THE  MANUFACTURED  HOME
IS A PRIMARY RESIDENCE.
  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.