Bill Text: FL S1064 | 2014 | Regular Session | Introduced
Bill Title: Mobile Home Park Lot Tenancies
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-05-02 - Died in Regulated Industries [S1064 Detail]
Download: Florida-2014-S1064-Introduced.html
Florida Senate - 2014 SB 1064 By Senator Latvala 20-00425-14 20141064__ 1 A bill to be entitled 2 An act relating to mobile home park lot tenancies; 3 amending s. 723.003, F.S.; defining the term 4 “amenity”; amending s. 723.012, F.S.; revising the 5 requirements of a prospectus or offering circular to 6 include an additional statement on the front cover or 7 the first page after a specified date; amending s. 8 723.037, F.S.; requiring a park owner to give written 9 notice before reducing amenities; providing that a 10 homeowners’ association does not have standing to 11 challenge a reduction in amenities unless agreed to by 12 a majority of the homeowners; expanding the notice to 13 include certain information if amenities are reduced; 14 adding the requirement for a meeting within 30 days 15 after receipt of the notice that an amenity is 16 reduced; clarifying that the committee required to be 17 designated under certain circumstances may not exceed 18 five mobile home owners; requiring the disclosure of 19 material factors that resulted in the reduction of 20 amenities; amending s. 723.061, F.S.; providing 21 circumstances under which a mobile home park owner may 22 evict a mobile home owner, a mobile home tenant, a 23 mobile home occupant, or a mobile home due to a change 24 of use or rezoning; amending s. 723.071, F.S.; 25 increasing the number of days available for mobile 26 home owners to purchase the park; repealing s. 27 723.075(3), F.S., relating to a homeowner of a 28 concrete block home in a mobile home park being a part 29 of the homeowners’ association; amending ss. 73.072 30 and 723.031, F.S.; conforming cross-references to 31 changes made by the act; providing an effective date. 32 33 Be It Enacted by the Legislature of the State of Florida: 34 35 Section 1. Section 723.003, Florida Statutes, is reordered 36 and amended to read: 37 723.003 Definitions.—As used in this chapter, the termthe38following words and terms have the followingmeanings unless39clearly indicated otherwise: 40 (1) “Amenity” means a tangible or intangible benefit 41 offered by a park owner to a home owner, including onsite 42 recreational facilities and planned programs, services, 43 activities, and maintenance. 44 (3)(1)The term“Division” means the Division of Florida 45 Condominiums, Timeshares, and Mobile Homes of the Department of 46 Business and Professional Regulation. 47 (4)(2)The term“Lot rental amount” means all financial 48 obligations, except user fees, which are required as a condition 49 of the tenancy. 50 (5)(3)The term“Mobile home” means a residential 51 structure, transportable in one or more sections, which is 8 52 body feet or more in width, over 35 body feet in length with the 53 hitch, built on an integral chassis, designed to be used as a 54 dwelling when connected to the required utilities, and not 55 originally sold as a recreational vehicle, and includes the 56 plumbing, heating, air-conditioning, and electrical systems 57 contained therein. 58 (6)(4)The term“Mobile home lot rental agreement” or 59 “rental agreement” means aanymutual understanding or lease, 60 whether oral or written, between a mobile home owner and a 61 mobile home park owner in which the mobile home owner is 62 entitled to place his or her mobile home on a mobile home lot 63 foreitherdirect or indirect remuneration of the mobile home 64 park owner. 65 (7)(5)The term“Mobile home owner” or “home owner” means a 66 person who owns a mobile home and rents or leases a lot within a 67 mobile home park for residential use. 68 (8)(6)The term“Mobile home park” or “park” means a use of 69 land in which lots or spaces are offered for rent or lease for 70 the placement of mobile homes and in which the primary use of 71 the park is residential. 72 (9)(7)The term“Mobile home park owner” or “park owner” 73 means an owner or operator of a mobile home park. 74 (10)(8)The term“Mobile home subdivision” means a 75 subdivision of mobile homes where individual lots are owned by 76 owners and where a portion of the subdivision or the amenities 77 exclusively serving the subdivision are retained by the 78 subdivision developer. 79 (11)(9)The term“Operator of a mobile home park” means 80 either a person who establishes a mobile home park on land which 81 is leased from another person or a person who has been delegated 82 the authority to act as the park owner in matters relating to 83 the administration and management of the mobile home park, 84 including, but not limited to, authority to make decisions 85 relating to the mobile home park. 86 (12)(10)The term“Pass-through charge” means the mobile 87 home owner’s proportionate share of the necessary and actual 88 direct costs and impact or hookup fees for a governmentally 89 mandated capital improvement, which may include the necessary 90 and actual direct costs and impact or hookup fees incurred for 91 capital improvements required for public or private regulated 92 utilities. 93 (13)(11)The term“Proportionate share”as used in94subsection (10)means an amount calculated by dividing equally 95 among the affected developed lots in the park the total costs 96 for the necessary and actual direct costs and impact or hookup 97 fees incurred for governmentally mandated capital improvements 98 serving the recreational and common areas and all affected 99 developed lots in the park. 100 (15)(12)The term“Unreasonable” means arbitrary, 101 capricious, or inconsistent with this chapter. 102 (16)(13)The term“User fees” means those amounts charged 103 in addition to the lot rental amount for nonessential optional 104 services provided by or through the park owner to the mobile 105 home owner under a separate written agreement between the mobile 106 home owner and the person furnishing the optional service or 107 services. 108 (2)(14)The term“Discrimination” or “discriminatory” means 109 that a homeowner is being treated differently as to the rent 110 charged, the services rendered, or an action for possession or 111 other civil action being taken by the park owner, without a 112 reasonable basis for the different treatment. 113 (14)(15)The term“Resale agreement” means a contract in 114 which a mobile home owner authorizes the mobile home park owner, 115 or the park owner’s designee, to act as exclusive agent for the 116 sale of the homeowner’s mobile home for a commission or fee. 117 Section 2. Paragraph (b) of subsection (1) of section 118 723.012, Florida Statutes, is amended to read: 119 723.012 Prospectus or offering circular.—The prospectus or 120 offering circular, which is required to be provided by s. 121 723.011, must contain the following information: 122 (1) The front cover or the first page must contain only: 123 (b) The following statements in conspicuous type: 124 1. THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION 125 REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN 126 LEASING A MOBILE HOME LOT. MAKE SURE THAT YOU READ THE ENTIRE 127 DOCUMENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS 128 REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT. 129 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN 130 NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES, ALL 131 EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS. 132 3. ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS 133 CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR 134 OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR) AND ITS 135 EXHIBITS FOR CORRECT REPRESENTATIONS. 136 4. UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE LESSEE, 137 THE RENTAL AGREEMENT IS VOIDABLE BY THE LESSEE FOR A PERIOD OF 138 15 DAYS. 139 5. UPON A CHANGE IN USE OF THE LAND, YOU MAY BE EVICTED AND 140 ORDERED TO MOVE YOUR MOBILE HOME WITHIN 6 MONTHS, OR ABANDON 141 YOUR MOBILE HOME IF THE HOME CANNOT BE RELOCATED. YOU MAY BE 142 ELIGIBLE FOR ASSISTANCE TO RELOCATE PURSUANT TO SECTIONS 723.061 143 AND 723.0612, FLORIDA STATUTES. 144 145 Beginning July 1, 2014, the language required in subparagraph 5. 146 must be included in each new prospectus delivered by the park 147 owner to a prospective lessee. 148 Section 3. Section 723.037, Florida Statutes, is amended to 149 read: 150 723.037 Lot rental increases; reduction in services,or151 utilities, or amenities; change in rules and regulations; 152 mediation.— 153 (1) A park owner shall give written notice to each affected 154 mobile home owner and the board of directors of the homeowners’ 155 association, if one has been formed, at least 90 days before an 156priorto anyincrease in lot rental amount; aorreduction in 157 services,orutilities, or amenities provided by the park owner; 158 or a change in rules and regulations. The notice mustshall159 identify all other affected homeowners, which may beby lot 160 number, name, group, or phase. If the affected homeowners are 161 not identified by name, the park owner shall make the names and 162 addresses available upon request. Rules adopted as a result of 163 restrictions imposed by governmental entities and required to 164 protect the public health, safety, and welfare may be enforced 165 beforeprior tothe expiration of the 90-day period but are not 166 otherwise exempt fromthe requirements ofthis chapter. Pass 167 through charges must be separately listed as to the amount of 168 the charge, the name of the governmental entity mandating the 169 capital improvement, and the nature or type of the pass-through 170 charge being levied. A noticeNoticesof increase in the lot 171 rental amount due to a pass-through charge mustshallstate the 172 additional payment and starting and ending dates of each pass 173 through charge. The homeowners’ association does notshallhave 174nostanding to challenge the increase in lot rental amount;,175 reduction in services,orutilities, or amenities; or change of 176 rules and regulations unless a majority of the affected 177 homeowners agree, in writing, to such representation. 178 (2)Notice as required by this section shall,In addition 179 to the information required in subsection (1), the notice 180 required under this section is onlyberequired to include the 181 dollar amount of the relevant portions of the present lot rental 182 amount that are being increased and the dollar amount of the 183 proposed increases in lot rental amount if there is an increase 184 in the lot rental amount; a, thereduction in services,or185 utilities, or amenities; or athechange in rules and 186 regulations and itstheeffective datethereof. 187 (3) The park owner shall file annually with the division a 188 copy of any notice of a lot rental amount increase. The notice 189 shall be filed byon or beforeJanuary 1 of each year for any 190 notice given during the preceding year. If the actual increase 191 is an amount less than the proposed amount stated in the notice, 192 the park owner shall notify the division of the actual amount of 193 the increase within 30 days afterofthe effective date of the 194 increase or at the time of filing, whichever is later. 195 (4)(a) A committee, not to exceed five mobile home owners 196in number, designated by a majority of the affected mobile home 197 owners or by the board of directors of the homeowners’ 198 association, if applicable, and the park owner shall meet,at a 199 mutually convenient time and place within 30 days after receipt 200 by the homeowners of the notice of change,to discuss the 201 reasons for the increase in lot rental amount;,reduction in 202 services,orutilities, or amenities; or change in rules and 203 regulations. 204 (b)1. At the meeting, the park owner or subdivision 205 developer shall in good faith disclose and explain all material 206 factors resulting in the decision to increase the lot rental 207 amount;,reduce services,orutilities, or amenities; or change 208 rules and regulations, including how those factors justify the 209 specific change proposed. The park owner or subdivision 210 developer may not limit the discussion of the reasons for the 211 change to generalities only, such as, but not limited to, 212 increases in operational costs, changes in economic conditions, 213 or rents charged by comparable mobile home parks. For example, 214 if the reason for an increase in lot rental amount is an 215 increase in operational costs, the park owner must disclose the 216 item or items which have increased, the amount of the increase, 217 any similar item or items which have decreased, and the amount 218 of the decrease. If an increase is based upon the lot rental 219 amount charged by comparable mobile home parks, the park owner 220 shall disclose, and provide in writing to the committee at or 221 before the meeting, the name, address, lot rental amount, and 222 any other relevant factors relied upon by the park owner, such 223 as facilities, services, and amenities, concerning the 224 comparable mobile home parks. The information concerning 225 comparable mobile home parks to be exchanged by the parties is 226 to encourage a dialogue concerning the reasons used by the park 227 owner for the increase in lot rental amount and to encourage the 228 home owners to evaluate and discuss the reasons for those 229 changes with the park owner. The park owner shall prepare a 230 written summary of the material factors and retain a copy for 3 231 years. The park owner shall provide the committee a copy of the 232 summary at or before the meeting. 233 2. The park owner mayshallnot limit the comparable mobile 234 home park disclosure to those mobile home parks that are owned 235 or operated by the same owner or operator as the subject park, 236 except in certain circumstances, which include, but are not 237 limited to: 238 a. That the market area for comparable mobile home parks 239 includes mobile home parks owned or operated by the same entity 240 that have similar facilities, services, and amenities; 241 b. That the subject mobile home park has unique attributes 242 that are shared with similar mobile home parks; 243 c. That the mobile home park is located in a geographic or 244 market area that contains few comparable mobile home parks; or 245 d. That there are similar considerations or factors that 246 would be considered in such a market analysis by a competent 247 professional and would be considered in determining the 248 valuation of the market rent. 249 (c) If the committee disagrees with a park owner’s lot 250 rental amount increase based upon comparable mobile home parks, 251 the committee shall disclose to the park owner the name, 252 address, lot rental amount, and any other relevant factors 253 relied upon by the committee, such as facilities, services, and 254 amenities, concerning the comparable mobile home parks. The 255 committee shall provide to the park owner the disclosure, in 256 writing, within 15 days after the meeting with the park owner, 257 together with a request for a second meeting. The park owner 258 shall meet with the committee at a mutually convenient time and 259 place within 30 days after receipt by the park owner of the 260 request from the committee to discuss the disclosure provided by 261 the committee. At the second meeting, the park owner may take 262 into account the information on comparable parks provided by the 263 committee, may supplement the information provided to the 264 committee at the first meeting, and may modify his or her 265 position, but the park owner may not change the information 266 provided to the committee at the first meeting. 267 (d) The committee and the park owner may mutually agree, in 268 writing, to extend or continue any meetings required by this 269 section. 270 (e) Either party may prepare and use additional information 271 to support its position during or subsequent to the meetings 272 required by this section. 273 274 This subsection is not intended to be enforced by civil or 275 administrative action. Rather, the meetings and discussions are 276 intended to be in the nature of settlement discussions before 277prior tothe parties proceedproceedingto mediation of any 278 dispute. 279 (5)(a) Within 30 days after the date of the last scheduled 280 meeting described in subsection (4), the homeowners may petition 281 the division to initiate mediation of the dispute pursuant to s. 282 723.038 if a majority of the affected homeowners have 283 designated, in writing, that: 284 1. The rental increase is unreasonable; 285 2. The rental increase has made the lot rental amount 286 unreasonable; 287 3. The decrease in services or utilities is not accompanied 288 by a corresponding decrease in rent or is otherwise 289 unreasonable; or 290 4. The change in the rules and regulations is unreasonable. 291 (b) A park owner, within the same time period, may also 292 petition the division to initiate mediation of the dispute. 293 (c) When a dispute involves a rental increase for different 294 home owners and there are different rates or different rental 295 terms for those home owners, all such rent increases in a 296 calendar year for one mobile home park may be considered in one 297 mediation proceeding. 298 (d) At mediation, the park owner and the homeowners 299 committee may supplement the information provided to each other 300 at the meetings described in subsection (4) and may modify their 301 position, but they may not change the information provided to 302 each other at the first and second meetings. 303 304 The purpose of this subsection is to encourage discussion and 305 evaluation by the parties of the comparable mobile home parks in 306 the competitive market area. The requirements of this subsection 307 are not intended to be enforced by civil or administrative 308 action. Rather, the meetings and discussions are intended to be 309 in the nature of settlement discussions beforeprior tothe 310 parties proceedproceedingto litigation of any dispute. 311 (6) If a party requests mediation and the opposing party 312 refuses to agree to mediate upon proper request, the party 313 refusing to mediate isshallnotbeentitled to attorney 314attorney’sfees in any action relating to a dispute described in 315 this section. 316 Section 4. Paragraph (d) of subsection (1) of section 317 723.061, Florida Statutes, is amended to read: 318 723.061 Eviction; grounds, proceedings.— 319 (1) A mobile home park owner may evict a mobile home owner, 320 a mobile home tenant, a mobile home occupant, or a mobile home 321 only on one or more of the following grounds: 322 (d) Change in use of the land comprising the mobile home 323 park, or the portion thereof from which mobile homes are to be 324 evicted, from mobile home lot rentals to some other use, if: 325 1. The park owner gives written notice to the homeowners’ 326 association formed and operating under ss. 723.075-723.079 of 327 its right to purchase the mobile home park, if the land 328 comprising the mobile home park is changing use from mobile home 329 lot rentals to a different use, at the price and under the terms 330 and conditionsset forthin the written notice. 331 a. The notice shall be delivered to the officers of the 332 homeowners’ association by United States mail. Within 9045days 333 after the date of mailing of the notice, the homeowners’ 334 association may execute and deliver a contract to the park owner 335 to purchase the mobile home park at the price and under the 336 terms and conditionsset forthin the notice. If the contract 337 between the park owner and the homeowners’ association is not 338 executed and delivered to the park owner within the 90-day45339dayperiod, the park owner is under no further obligation to the 340 homeowners’ association except as provided in sub-subparagraph 341 b. 342 b. If the park owner elects to offer or sell the mobile 343 home park at a price lower than the price specified in her or 344 his initial notice to the officers of the homeowners’ 345 association, the homeowners’ association has an additional 10 346 days to meet the revised price, terms, and conditions of the 347 park owner by executing and delivering a revised contract to the 348 park owner. 349 c. The park owner is not obligated under this subparagraph 350 or s. 723.071 to give any other notice to, or to further 351 negotiate with, the homeowners’ association for the sale of the 352 mobile home park to the homeowners’ association after 6 months 353 after the date of the mailing of the initial notice under sub 354 subparagraph a. 355 2. The park owner has applied to the local government for 356 change of use or rezoning and gives the affected mobile home 357 owners and tenants at least 6 months’ notice of the eviction due 358 to the projected change in use and of their need to secure other 359 accommodations. 360 a. The notice of eviction due to a change in use of the 361 land must include in a font no smaller than the body of the 362 notice the following statement: 363 364 YOU MAY BE ENTITLED TO COMPENSATION FROM THE FLORIDA 365 MOBILE HOME RELOCATION TRUST FUND, ADMINISTERED BY THE 366 FLORIDA MOBILE HOME RELOCATION CORPORATION (FMHRC). 367 FMHRC CONTACT INFORMATION IS AVAILABLE FROM THE 368 FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL 369 REGULATION. 370 371 b. The park owner may not give a notice of increase in lot 372 rental amount within 90 days before giving notice of a change in 373 use or within 6 months after the eviction notice. 374 c. The park owner shall attach a relocation plan to the 375 application to the local government for change of use or 376 rezoning. Such plan must indicate monetarily comparable, 377 suitable, and available facilities for displaced residents. The 378 application and the attached plan must be provided to the park’s 379 homeowners’ association with the eviction notice. 380 Section 5. Paragraph (b) of subsection (1) of section 381 723.071, Florida Statutes, is amended to read: 382 723.071 Sale of mobile home parks.— 383 (1) 384 (b) The mobile home owners, by and through the association 385 defined in s. 723.075,shallhave the right to purchase the park 386 if, providedthe home owners meet the price and terms and 387 conditions of the mobile home park owner by executing a contract 388 with the park owner within 9045days after, unless agreed to389otherwise, fromthe date of mailing of the notice, unless 390 another timeframe is agreed upon, and ifprovidedthey have 391 complied with ss. 723.075-723.079. If a contract between the 392 park owner and the association is not executed within such 90 393 day45-dayperiod,then,unless the park owner thereafter elects 394 to offer the park at a price lower than the price specified in 395 her or his notice to the officers of the homeowners’ 396 association, the park owner has no further obligations under 397 this subsection, and her or his only obligation isshall beas 398 describedset forthin subsection (2). 399 Section 6. Subsection (3) of section 723.075, Florida 400 Statutes, is repealed. 401 Section 7. Subsection (1) of section 73.072, Florida 402 Statutes, is amended to read: 403 73.072 Mobile home parks; compensation for permanent 404 improvements by mobile home owners.— 405 (1) IfWhenall or a portion of a mobile home park as 406 defined in s. 723.003(6)is appropriated under this chapter, the 407 condemning authority shall separately determine the compensation 408 for any permanent improvements made to each site. This 409 compensation shall be awarded to the mobile home owner leasing 410 the site if: 411 (a) The effect of the taking includes a requirement that 412 the mobile home owner remove or relocate his or her mobile home 413 from the site; 414 (b) The mobile home owner currently leasing the site has 415 paid for the permanent improvements to the site; and 416 (c) The value of the permanent improvements on the site 417 exceeds $1,000 as of the date of taking. 418 Section 8. Paragraph (b) of subsection (5) of section 419 723.031, Florida Statutes, is amended to read: 420 723.031 Mobile home lot rental agreements.— 421 (5) The rental agreement shall contain the lot rental 422 amount and services included. An increase in lot rental amount 423 upon expiration of the term of the lot rental agreement shall be 424 in accordance with ss. 723.033 and 723.037 or s. 723.059(4), 425 whichever is applicable, provided that, pursuant to s. 426 723.059(4), the amount of the lot rental increase is disclosed 427 and agreed to by the purchaser, in writing. An increase in lot 428 rental amount shall not be arbitrary or discriminatory between 429 similarly situated tenants in the park. No lot rental amount may 430 be increased during the term of the lot rental agreement, 431 except: 432 (b) For pass-through chargesas defined in s. 723.003(10). 433 Section 9. This act shall take effect July 1, 2014.