S T A T E   O F   N E W   Y O R K
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     S. 3231                                                  A. 2682
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Housing,
   Construction and Community Development
 
 IN ASSEMBLY -- Introduced by M. of A.  THIELE,  GRAF,  JAFFEE,  PALUMBO,
   WEPRIN  --  Multi-Sponsored  by -- M. of A. SKARTADOS -- 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:
 
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04079-01-7

 S. 3231                             2                            A. 2682
 
 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.
   (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.
   § 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.
   §  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.
   § 4. The real property law is amended by adding a new section 233-b to
 read as follows:
   §  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.

 S. 3231                             3                            A. 2682

   (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.
   (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.
   §  5. This act shall take effect on the first of January next succeed-
 ing the date  on which it shall have become a law.