Bill Text: NY A08081 | 2013-2014 | General Assembly | Amended

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Bill Title: Relates to providing recourse for manufactured homeowners in manufactured home parks confronted with unjustifiable rent increases; creates a local option in counties in New York state to provide such protection.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2014-01-31 - print number 8081a [A08081 Detail]

Download: New_York-2013-A08081-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
           S. 5860--A                                            A. 8081--A
                              2013-2014 Regular Sessions
                             S E N A T E - A S S E M B L Y
                                     June 18, 2013
                                      ___________
       IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
         ed,  and  when  printed  to  be committed to the Committee on Rules --
         recommitted to the Committee on Housing,  Construction  and  Community
         Development  in  accordance  with  Senate  Rule 6, sec. 8 -- committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once  and  referred
         to the Committee on Judiciary -- recommitted to the Committee on Judi-
         ciary  in  accordance  with  Assembly  Rule  3,  sec.  2  -- 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; and providing for the
         repeal of certain provisions upon expiration thereof
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.   Subdivision e of section 233 of the real property law is
    2  amended by adding a new paragraph 4 to read as follows:
    3    4. RENT INCREASES FOR MANUFACTURED  HOMEOWNERS,  INCLUDING  ALL  FEES,
    4  RENTS,  CHARGES,  ASSESSMENTS  AND  UTILITIES,  SHALL  BE SUBJECT TO THE
    5  PROVISIONS OF SECTION TWO HUNDRED THIRTY-THREE-B OF THIS ARTICLE.
    6    S 2. Paragraph 2 of subdivision g of section 233 of the real  property
    7  law,  as  amended by chapter 566 of the laws of 1996, is amended to read
    8  as follows:
    9    2. A manufactured home park owner or operator  shall  be  required  to
   10  fully  disclose  in  writing  all  fees, charges, assessments, including
   11  rental fees, rules and regulations prior to [a manufactured home  tenant
   12  assuming  occupancy] ENTERING INTO A RENTAL AGREEMENT WITH A PROSPECTIVE
   13  TENANT in the manufactured home park.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11585-02-4
       S. 5860--A                          2                         A. 8081--A
    1    S 3. The real property law is amended by adding a new section 233-b to
    2  read as follows:
    3    S  233-B.  UNJUSTIFIED  RENT INCREASES IN MANUFACTURED HOME PARKS.  1.
    4  DEFINITIONS. (A) ALL DEFINITIONS IN SUBDIVISION A OF SECTION TWO HUNDRED
    5  THIRTY-THREE OF THIS ARTICLE SHALL BE APPLICABLE TO THIS SECTION.
    6    (B) "CONSUMER PRICE INDEX" MEANS THE  CONSUMER  PRICE  INDEX  FOR  ALL
    7  ITEMS-ALL  URBAN  CONSUMERS FOR NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND
    8  INDEX PUBLISHED MONTHLY BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU
    9  OF LABOR STATISTICS.
   10    (C) "INCREASE IN LOT RENT" MEANS ALL  COST  INCREASES,  INCLUDING  ALL
   11  INCREASED RENT, FEES, CHARGES, ASSESSMENTS AND UTILITIES.
   12    (D)  "COMMISSIONER"  MEANS  THE  COMMISSIONER OF HOUSING AND COMMUNITY
   13  RENEWAL.
   14    (E) "OPERATING COSTS" MEANS THE COSTS OF MAINTAINING AND OPERATING THE
   15  MANUFACTURED HOME COMMUNITY, INCLUDING, BUT NOT  LIMITED  TO,  OPERATING
   16  EXPENSES, TAXES, ASSESSMENTS AND OTHER GOVERNMENTAL FEES, COSTS OF MAIN-
   17  TENANCE AND OPERATION OF SEWER AND WATER SYSTEMS, DEBT SERVICE AND CAPI-
   18  TAL  EXPENDITURES  OF  TEN  THOUSAND  DOLLARS OR MORE WHICH ARE DIRECTLY
   19  RELATED  TO  ACQUISITION  OR  MAJOR  CAPITAL  IMPROVEMENTS,   REASONABLE
   20  RESERVES  FOR  FUTURE  CAPITAL  IMPROVEMENTS,  AND  A REASONABLE RATE OF
   21  RETURN ON THE MANUFACTURED HOME COMMUNITY OWNER'S EQUITY INVESTMENT.
   22    2. APPLICABILITY. THIS SECTION SHALL APPLY TO MANUFACTURED HOME  PARKS
   23  WHICH  ARE  USED  FOR  THE  ACCOMMODATION  OF FORTY OR MORE MANUFACTURED
   24  HOMES.
   25    3. LOCAL OPTION. THE PROVISIONS OF THIS SECTION  SHALL  APPLY  IN  ANY
   26  COUNTY  IN  WHICH  THE GOVERNING BOARD OF SUCH COUNTY HAS PASSED A LOCAL
   27  LAW ADOPTING THE PROVISIONS OF THIS SECTION.
   28    4. BASIS FOR CHALLENGE. AN INCREASE IN RENT WHICH EXCEEDS THE PERCENT-
   29  AGE INCREASE IN THE CONSUMER PRICE INDEX OR THREE PERCENT  WHICHEVER  IS
   30  GREATER SINCE THE CURRENT LOT RENT BECAME EFFECTIVE MAY BE CHALLENGED BY
   31  AN AGGRIEVED MANUFACTURED HOMEOWNER AS UNJUSTIFIED.
   32    5.  PRESUMPTION.  IN ANY PROCEEDINGS UNDER THIS SECTION THERE SHALL BE
   33  AN IRREFUTABLE PRESUMPTION THAT A RENT INCREASE IS JUSTIFIABLE WHEN  THE
   34  AMOUNT  OF  SUCH INCREASE DOES NOT EXCEED THE TENANT'S PRO-RATA SHARE IN
   35  OPERATING COSTS.
   36    6. PROCEDURE. (A) NOT LESS THAN TEN PERCENT OF THE  MANUFACTURED  HOME
   37  TENANTS  IN  A  MANUFACTURED  HOME  PARK  MAY  FILE A COMPLAINT WITH THE
   38  COMMISSIONER  ALLEGING  THAT  A  RENT  INCREASE  IS  UNJUSTIFIED.   SUCH
   39  COMPLAINT  MUST BE FILED WITHIN FORTY-FIVE DAYS OF RECEIPT OF THE NOTICE
   40  OF THE INCREASE IN LOT RENT. IN THE EVENT THAT MORE THAN  ONE  COMPLAINT
   41  IS  FILED  IN  THE  SAME YEAR WITH RESPECT TO THE SAME MANUFACTURED HOME
   42  PARK, THE COMMISSIONER SHALL CONSOLIDATE SUCH COMPLAINTS FOR  RESOLUTION
   43  IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
   44    (B)  UPON  RECEIPT  OF  ONE OR MORE COMPLAINTS ALLEGING AN UNJUSTIFIED
   45  INCREASE IN LOT RENT, THE COMMISSIONER  SHALL  REVIEW  THE  INCREASE  TO
   46  DETERMINE WHETHER SUCH INCREASE IS PRESUMPTIVELY JUSTIFIED IN ACCORDANCE
   47  WITH  SUBDIVISION FIVE OF THIS SECTION. SUCH DETERMINATION SHALL BE MADE
   48  UPON SUBMISSION OF DOCUMENTATION SUBMITTED BY THE MANUFACTURED HOME PARK
   49  OWNER AND THE COMPLAINANTS AND ANY OTHER DOCUMENTATION OR  TESTIMONY  AS
   50  MAY REASONABLY BE REQUIRED BY THE COMMISSIONER. THE COMPLAINANTS AND THE
   51  MANUFACTURED  HOME  PARK  OWNER  SHALL HAVE THE RIGHT TO APPEAR AND GIVE
   52  TESTIMONY TO THE COMMISSIONER.
   53    (C) UPON COMPLETION OF SUCH REVIEW, IF THE INCREASE IS NOT  DETERMINED
   54  TO  BE PRESUMPTIVELY JUSTIFIED, OR AT ANY OTHER TIME AFTER THE FILING OF
   55  A COMPLAINT PURSUANT TO THIS SECTION, THE COMMISSIONER SHALL ATTEMPT  TO
       S. 5860--A                          3                         A. 8081--A
    1  INFORMALLY  RESOLVE THE DISPUTE BETWEEN THE MANUFACTURED HOME PARK OWNER
    2  AND THE COMPLAINANTS.
    3    (D)  IF  SUCH  INFORMAL  ATTEMPTS  AT RESOLUTION ARE UNSUCCESSFUL, THE
    4  COMMISSIONER  SHALL  REQUIRE  THE  MANUFACTURED  HOME  PARK  OWNER   AND
    5  COMPLAINANTS  TO  APPEAR BEFORE A MEDIATOR TO BE SELECTED BY THE COMMIS-
    6  SIONER. THE COSTS OF SUCH MEDIATION SHALL BE BORNE EQUALLY BY THE  MANU-
    7  FACTURED  PARK  COMMUNITY OWNER AND THE COMPLAINANTS. IF, AT THE CONCLU-
    8  SION OF THE MEDIATION, THERE IS NO AGREEMENT  BETWEEN  THE  MANUFACTURED
    9  HOME  PARK  OWNER AND THE COMPLAINANTS, THE MANUFACTURED HOME PARK OWNER
   10  SHALL HAVE THE OPPORTUNITY WITHIN TEN DAYS  TO  MAKE  A  FINAL,  BINDING
   11  OFFER TO REDUCE THE AMOUNT OF THE RENT INCREASE.
   12    (E)  IF  NO  SUCH OFFER IS MADE OR SUCH OFFER IS REJECTED, THE COMMIS-
   13  SIONER SHALL THEREUPON PROCEED TO  MAKE  A  FINAL  DETERMINATION  AS  TO
   14  WHETHER  THE AMOUNT OF THE PROPOSED RENT INCREASE, AS FINALLY OFFERED BY
   15  THE MANUFACTURED HOME PARK OWNER IS UNJUSTIFIED.
   16    (F) IN DETERMINING WHETHER THE PROPOSED INCREASE IN LOT RENT IS UNJUS-
   17  TIFIABLE, THE COMMISSIONER SHALL ALLOW THE MANUFACTURED  PARK  OWNER  TO
   18  RECOUP OPERATING COSTS.
   19    (G) WHILE A PROCEEDING CHALLENGING AN INCREASE IN LOT RENT PURSUANT TO
   20  THIS  SECTION  IS  PENDING, MANUFACTURED HOME PARK TENANTS SHALL PAY THE
   21  AMOUNT OF THE RENT INCREASE TO THE MANUFACTURED  HOME  PARK  OWNER,  WHO
   22  SHALL  HOLD  SUCH AMOUNTS IN ESCROW PENDING A MEDIATED AGREEMENT BETWEEN
   23  THE PARTIES OR A  FINAL  DETERMINATION  OF  THE  COMMISSIONER,  PROVIDED
   24  HOWEVER,  THAT  NO  MANUFACTURED  HOME  PARK TENANT SHALL BE EVICTED FOR
   25  NON-PAYMENT OF THE RENT INCREASE PRIOR TO A  FINAL  DISPOSITION  OF  THE
   26  MATTER  BY THE COMMISSIONER. FAILURE BY THE MANUFACTURED HOME PARK OWNER
   27  TO PLACE SUCH CHALLENGED INCREASE IN LOT RENT IN ESCROW SHALL BE PUNISH-
   28  ABLE BY A CIVIL PENALTY OF NOT MORE THAN FIVE HUNDRED  DOLLARS.  IF  THE
   29  COMPLAINANTS  APPEAL,  THE  MANUFACTURED  HOME PARK OWNER MAY REMOVE THE
   30  RENT INCREASE FUNDS FROM ESCROW, MINGLE SUCH FUNDS WITH ANY OTHER FUNDS,
   31  AND EVICT A TENANT WHO HAS NOT PAID  THE  INCREASE  FOR  NON-PAYMENT  OF
   32  RENT.  IF  THE  COMMISSIONER  DECLARES  INCREASE IN LOT RENT OR ANY PART
   33  THEREOF UNJUSTIFIED, THE MANUFACTURED HOME PARK OWNER SHALL  REFUND  THE
   34  AMOUNT OF UNJUSTIFIED INCREASE TO EACH MANUFACTURED HOME TENANT.
   35    (H)  ANY  FINDINGS  MADE BY THE COMMISSIONER WITH RESPECT TO WHETHER A
   36  PROPOSED INCREASE IN LOT RENT IS PRESUMPTIVELY LAWFUL OR IS  UNJUSTIFIED
   37  SHALL  BE BINDING UPON ALL MANUFACTURED HOME TENANTS IN THE MANUFACTURED
   38  HOME PARK.
   39    7. REVIEW. THE  FINAL  DETERMINATION  OF  THE  COMMISSIONER  SHALL  BE
   40  SUBJECT  TO  REVIEW PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRAC-
   41  TICE LAW AND RULES.
   42    S 4. This act shall take effect immediately; provided,  however,  that
   43  sections  one  and three of this act shall expire and be deemed repealed
   44  December 31, 2018.