S T A T E   O F   N E W   Y O R K
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                                   5247
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 7, 2019
                                ___________
 
 Introduced  by M. of A. THIELE, JAFFEE, PALUMBO, WEPRIN -- 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) Manufactured homes are a critical source of affordable housing for
 residents in New York state, particularly for senior citizens seeking to
 remain in their communities.
   (b) 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.
   (c) 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.
   (d) Vacancies in existing manufactured home parks are  extremely  rare
 in  New York state, and the cost of relocating a manufactured home, even
 if such a vacancy exists, is prohibitively high and threatens the struc-
 tural integrity of many manufactured homes.
   (e) 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03203-02-9

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 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.
   (f)  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.
   (g) It is the purpose of  this  legislation  to  provide  manufactured
 homeowners  with  a  judicial  remedy  when  they are confronted with an
 unjustifiable 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 OWNERS OF AT LEAST  FIVE
 PERCENT  (5%) OF THE MANUFACTURED HOMES AFFECTED BY THE INCREASE IN RENT
 WITHIN THE MANUFACTURED HOME PARK SHALL BE PETITIONERS. THE MANUFACTURED
 HOME SHALL BE THE PRIMARY RESIDENCE OF EACH PETITIONER.
   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. 5247                             3
 
   (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.
   (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 thirtieth day  after  it  shall
 have become a law.