Bill Text: NY S06177 | 2017-2018 | General Assembly | Amended
Bill Title: Regulates the use and terms of rent to own leases in and outside of manufactured home parks.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-06-20 - COMMITTED TO RULES [S06177 Detail]
Download: New_York-2017-S06177-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6177--A 2017-2018 Regular Sessions IN SENATE May 11, 2017 ___________ Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- committee discharged and said bill committed to the Committee on Hous- ing, Construction and Community Development -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property law, in relation to lease to own contracts in manufactured home communities The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 233 of the real property law is amended by adding a 2 new subdivision y to read as follows: 3 y. Lease to own contracts. 1. Definitions. For purposes of this subdi- 4 vision: 5 (a) "Commercial communication" shall mean any written or oral state- 6 ment, illustration or depiction, whether in English or any other 7 language, that is designed to effect a sale or create interest in 8 purchasing goods or services, whether it appears on or in a label, pack- 9 age, package insert, radio, television, cable television, brochure, 10 newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert, 11 free standing insert, letter, catalogue, poster, chart, billboard, 12 public transit card, point of purchase display, film, slide, audio 13 program transmitted over a telephone system, telemarketing script, 14 on-hold script, upsell script, training materials provided to telemar- 15 keting firms, program-length commercial ("infomercial"), the internet, 16 cellular network, or any other medium. Promotional materials and items, 17 and web pages shall be included in the term commercial communication. 18 (b) "Lease to own contract" shall mean an agreement where a manufac- 19 tured home park owner or operator, or a lessor, which may be (i) another 20 entity certified as a manufactured home retailer pursuant to article EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11654-03-7S. 6177--A 2 1 twenty-one-B of the executive law, or (ii) a landowner, enters into an 2 agreement with a manufactured home tenant whereby the manufactured home 3 tenant leases a home located in a manufactured home park and, whether in 4 the lease to own agreement or in a separate agreement, leases the lot 5 upon which the home is located, and the manufactured home tenant 6 receives an option to purchase the manufactured or mobile home upon 7 payment of specified payments over a specified period of time, and upon 8 the expiration of the time period, and payment of the specified 9 payments, the manufactured home tenant obtains title and ownership of 10 the home. 11 (c) "Lease to own payments" shall mean the periodic amounts required 12 to be paid over the duration of the lease to own contract, over and 13 above any payments required for rental of the lot upon which the manu- 14 factured home is located. Lease to own payments shall also include the 15 amount required to be paid at the end of the term. 16 (d) "Lessee" shall mean a manufactured home community owner or any 17 other person, corporation, association, or other legal entity who leases 18 a manufactured or mobile home subject to a lease to own contract. 19 (e) "Lessor" shall mean any person, corporation, association or any 20 other legal entity who leases a manufactured or mobile home subject to a 21 lease to own contract. 22 (f) "Terms" means any of the fees, costs, obligations, or character- 23 istics of or associated with the lease to own option. 24 2. Requirements for lease to own contracts: 25 (a) on and after the effective date of this subdivision, no manufac- 26 tured home park owner or operator, or lessor, shall enter into a lease 27 to own contract except in accordance with the provisions of this subdi- 28 vision; 29 (b) on or after the effective date of this subdivision, no manufac- 30 tured home park owner or operator or lessor shall offer a lease to own 31 contract unless the manufactured home park owner or operator, or lessor, 32 has complied with the provisions of this subparagraph to establish the 33 ownership of the home that is to be transferred pursuant to the lease to 34 own contract: 35 (1) At least five business days prior to the execution of the lease to 36 own contract, the manufactured home park owner or operator, or lessor 37 shall, at his or her expense: 38 (A) perform a certified search through the uniform commercial 39 code/lien search from the department of state; 40 (B) perform a records search from the county clerk of the county where 41 the manufactured or mobile home is located; 42 (C) perform a records search from the county clerk of the county where 43 the lessor resides, if different from the county where the manufactured 44 or mobile home is located; 45 (D) if the mobile home is a nineteen hundred ninety-five model year or 46 newer manufactured home, perform a records search from the department of 47 motor vehicles; and 48 (E) (i) receive copies of the results of the searches required under 49 items (A), (B), (C) or (D) of this clause; and 50 (ii) provide a copy to the lessee, either by certified mail or in 51 person, of each of the searches required under subparagraph one of para- 52 graph (a) of this subdivision; and 53 (iii) discharge any lien or any security interest encumbering the 54 manufactured or mobile home, if any exist. 55 (c) every lease to own contract, whether as a part of a lease, or as a 56 separate document, shall be in writing and clearly state all termsS. 6177--A 3 1 governing the transaction. Such terms shall be separately stated and, at 2 a minimum, include the following: 3 (i) a description of the home to be leased, including: 4 (A) the name of the manufacturer of the home; 5 (B) the serial number of the home; and 6 (C) the year of manufacture of the home; 7 (ii) the lot number upon which the home is located in the manufactured 8 home park; 9 (iii) the periodic rent attributable solely to the lot upon which the 10 manufactured or mobile home is located; such lot rent may be increased 11 over the term of the contract, but only in conformity with the 12 provisions of this subdivision; 13 (iv) the amount of the lease to own payments required to be made in 14 addition to the lot rent, including the periodic amount to be paid, the 15 number of payments required to be made over the term of the agreement 16 and the total amount of payments to be made; 17 (v) the disclosures required by the federal Consumer Leasing Act, 15 18 U.S.C.A. § 1667 et. seq., and Regulation M, 12 C.F.R. Part 1013, without 19 regard to the dollar amount limitations in 12 C.F.R. § 1013.2(e)(1); 20 (vi) the duration of the lease and, if different, the duration of the 21 lease to own option; 22 (vii) information on whether any fees or public charges are delinquent 23 or have been levied against the manufactured or mobile home, including 24 any that may have been imposed by or owed to the manufactured home park 25 owner; 26 (viii) a provision that the manufactured home tenant has the right to 27 accelerate any lease to own payments; 28 (ix) whether the manufactured home park owner or operator, or lessor, 29 has received written notice from any state or local government entity 30 requiring any repairs or improvements to be made to the manufactured or 31 mobile home that is the subject of the lease to own contract; 32 (x) the following notice: "NOTICE TO THE BUYER: (1) Do not sign this 33 lease to own contract before you read it or if it contains any blank 34 spaces. (2) You are entitled to a completely filled in copy of this 35 lease to own contract when you sign it. (3) Under the law, you have the 36 right to pay off in advance the full amount due"; and 37 (xi) a provision requiring that in the event the manufactured home 38 park owner or operator sells or otherwise transfers ownership of the 39 manufactured home park to another person or entity, prior to such trans- 40 fer, the manufactured home park owner or operator shall: 41 (A) include a provision in the terms of the agreement transferring the 42 manufactured home park requiring that the purchaser or transferee of the 43 manufactured home park assume all obligations of the manufactured home 44 park owner or operator with respect to every lease to own contract then 45 in effect in the manufactured home park; 46 (B) refund to all manufactured home tenants with currently effective 47 lease to own contracts, the full amount of all lease to own payments 48 made by the manufactured home tenant over the entire time of his or her 49 tenancy plus interest at the rate for thirty year fixed rate mortgages 50 as shown on the then current Primary Mortgage Market Survey published by 51 the Federal Home Loan Mortgage Corporation (also known as "Freddie 52 Mac"); or 53 (C) agree to continue to retain ownership of the home and receive 54 lease to own contract payments until such time as ownership of the home 55 passes to the manufactured home tenant.S. 6177--A 4 1 3. Notwithstanding any provision of law to the contrary, a lease to 2 own contract shall be presumed to be valid if: 3 (a) It complies with the provisions of the federal Consumer Leasing 4 Act, 15 U.S.C.A. § 1667 et. seq., and Regulation M, 12 C.F.R. Part 1013, 5 without regard to the dollar amount limitations in 12 C.F.R. § 6 1013.2(e)(1); 7 (b) Payments for lot rent are separately stated and not included with- 8 in the amount of periodic payments for the lease of the home; 9 (c) It provides that upon payment of the purchase option price and all 10 periodic lease payments then due, the lessor shall transfer title to the 11 home to the lessee; and 12 (d) In the case of lease to own contracts entered into on or after the 13 effective date of this subdivision, includes the provisions set forth in 14 paragraph two of this subdivision. 15 4. (a) A manufactured home park owner or operator, or lessor, who 16 wrongfully terminates the tenancy of a manufactured home tenant with a 17 lease to own contract shall refund to the manufactured home tenant the 18 full amount of all lease to own payments made by the manufactured home 19 tenant over the entire time of his or her tenancy plus interest at the 20 rate specified in section 5-501 of the general obligations law. 21 (b) For purposes of this paragraph, there shall be a rebuttable 22 presumption that a manufactured home park owner or operator, or lessor, 23 wrongfully terminated the tenancy if (i) the termination takes place 24 within twelve months of the end of the term of the lease to own contract 25 and (ii) at the time of the termination, the manufactured home tenant is 26 in good standing as defined in subparagraph (ii) of paragraph two of 27 subdivision e of this section. 28 5. Until such time as ownership of the home passes to the manufactured 29 home tenant, manufactured homes under a lease to own contract shall be 30 deemed to be rented homes for purposes of the provisions of subdivision 31 m of this section. If the lease to own contract is between a manufac- 32 tured home tenant and a lessor other than a manufactured home community 33 owner or operator, the manufactured home shall be deemed to be a rented 34 home for purposes of the provisions of the warranty to habitability set 35 forth in section two hundred thirty-five-b of this article. 36 6. No manufactured home park owner or operator shall make any material 37 misrepresentation, expressly or by implication, in any commercial commu- 38 nication, regarding any of the terms of the lease to own contract 39 including, but not limited to: 40 (a) The charges for the lease to own contract option; 41 (b) The existence, nature, or amount of fees or costs to the manufac- 42 tured home tenant associated with the lease to own contract, including 43 but not limited to misrepresentations that no fees are charged; 44 (c) The existence, cost, payment terms, or other terms associated with 45 any additional product or feature that is or may be sold in conjunction 46 with the lease to own contract, including but not limited to credit 47 insurance or credit disability insurance; 48 (d) The terms, amounts, payments, or other requirements relating to 49 taxes or insurance associated with the lease to own contract, including 50 but not limited to misrepresentations about: 51 (i) whether separate payment of taxes or insurance is required; or 52 (ii) the extent to which payment for taxes or insurance is included in 53 the loan payments, loan amount, or total amount due from the manufac- 54 tured home tenant;S. 6177--A 5 1 (e) Any prepayment penalty associated with the lease to own contract, 2 including but not limited to misrepresentations concerning the exist- 3 ence, nature, amount, or terms of such penalty; 4 (f) The variability of interest, payments, or other terms of the lease 5 to own contract, including but not limited to misrepresentations using 6 the word "fixed"; 7 (g) Any comparison between: 8 (i) any rate or payment that will be available for a period less than 9 the full length of the lease to own contract; and 10 (ii) any actual or hypothetical rate or payment; 11 (h) The amount of the obligation, or the existence, nature, or amount 12 of cash or credit available to the manufactured home tenant in 13 connection with the lease to own contract, including but not limited to 14 misrepresentations that the manufactured home tenant will receive a 15 certain amount of cash or credit as part of the transaction; 16 (i) The existence, number, amount, or timing of any minimum or 17 required payments, including but not limited to misrepresentations about 18 any payments or that no payments are required in the lease to own 19 contract; 20 (j) The potential for default under the lease to own contract, includ- 21 ing but not limited to misrepresentations concerning the circumstances 22 under which the manufactured home tenant could default for nonpayment of 23 taxes, insurance, or maintenance, or for failure to meet other obli- 24 gations; 25 (k) The effectiveness of the lease to own contract in helping the 26 manufactured home tenant resolve difficulties in paying debts, including 27 but not limited to misrepresentations that any lease to own contract can 28 reduce, eliminate, or restructure debt or result in a waiver or forgive- 29 ness, in whole or in part, of the manufactured home tenant's existing 30 obligation with any person; 31 (l) The association of the lease to own contract or any provider of 32 such contract with any other person or program, including but not limit- 33 ed to misrepresentations that: 34 (i) the provider is, or is affiliated with, any governmental entity or 35 other organization; or 36 (ii) the product is or relates to a government benefit, or is 37 endorsed, sponsored by, or affiliated with any government or other 38 program, including but not limited to through the use of formats, 39 symbols, or logos that resemble those of such entity, organization, or 40 program; 41 (m) The source of any commercial communication, including but not 42 limited to misrepresentations that a commercial communication is made by 43 or on behalf of the manufactured home tenant's current mortgage lender 44 or servicer; 45 (n) The right of the manufactured home tenant to reside in the dwell- 46 ing that is the subject of the lease to own contract, or the duration of 47 such right; 48 (o) The manufactured home tenant's ability or likelihood to obtain any 49 lease to own contract or term, including but not limited to misrepresen- 50 tations concerning whether the manufactured home tenant has been preap- 51 proved or guaranteed for any such contract or term; 52 (p) The manufactured home tenant's ability or likelihood to obtain a 53 refinancing or modification of any lease to own contract or term, 54 including but not limited to misrepresentations concerning whether the 55 manufactured home tenant has been preapproved or guaranteed for any such 56 refinancing or modification; andS. 6177--A 6 1 (q) The availability, nature, or substance of counseling services or 2 any other expert advice offered to the manufactured home tenant regard- 3 ing any lease to own contract or term, including but not limited to the 4 qualifications of those offering the services or advice. 5 7. It is a violation of this subdivision for any person to obtain, or 6 attempt to obtain, a waiver from any manufactured home tenant of any 7 protection provided by or any right of the manufactured home tenant 8 under this subdivision. 9 8. (a) Manufactured home park owners or operators offering lease to 10 own contracts shall keep, for a period of twenty-four months from the 11 last date the manufactured home park owner or operator made or dissem- 12 inated the applicable commercial communication regarding any term of any 13 lease to own contract, the following evidence of compliance with this 14 section: 15 (i) copies of all materially different commercial communications as 16 well as sales scripts, training materials, and marketing materials, 17 regarding any term of any lease to own contract, that the manufactured 18 home park owner or operator made or disseminated during the relevant 19 time period; 20 (ii) documents describing or evidencing all lease to own contracts 21 available to manufactured home tenants during the time period in which 22 the person made or disseminated each commercial communication regarding 23 any term of any lease to own contract, including but not limited to the 24 names and terms of each such lease to own contract available to manufac- 25 tured home tenants; and 26 (iii) documents describing or evidencing all additional products or 27 services (such as credit insurance or credit disability insurance) that 28 are or may be offered or provided with the lease to own contracts avail- 29 able to manufactured home tenants during the time period in which the 30 person made or disseminated each commercial communication regarding any 31 term of any lease to own contract, including but not limited to the 32 names and terms of each such additional product or service available to 33 manufactured home tenants. 34 (b) Any person who is subject to the provisions of this subdivision 35 may keep the records required by subparagraph (a) of this paragraph in 36 any legible form, and in the same manner, format, or place as they keep 37 such records in the ordinary course of business. 38 9. Nothing contained in this subdivision shall be deemed to invalidate 39 a lease to own contract entered into prior to the effective date of this 40 subdivision. 41 10. The provisions of this subdivision shall apply without regard to 42 whether the manufactured home that is the subject of the transaction is 43 a new home or a resale of a previously-owned home. 44 § 2. The real property law is amended by adding a new section 233-b to 45 read as follows: 46 § 233-b. Manufactured or mobile home lease to own contracts outside of 47 manufactured home parks. 1. Definitions. For purposes of this section, 48 the following terms shall have the meaning set forth in this subdivi- 49 sion: 50 (a) "Manufactured home lease to own contract outside of manufactured 51 home parks" shall mean a lease to own contract as defined in paragraph 52 one of subdivision y of section two hundred thirty-three of this article 53 where the manufactured or mobile home that is the subject of the lease 54 to own contract is not located in a manufactured home park, as defined 55 in subdivision a of section two hundred thirty-three of this article.S. 6177--A 7 1 (b) "Lessee" shall mean any person, corporation, association, or other 2 legal entity who leases a manufactured or mobile home subject to a lease 3 to own contract. 4 (c) "Lessor" shall mean any person, corporation, association or any 5 other legal entity who leases a manufactured or mobile home subject to a 6 lease to own contract. 7 (d) "Manufactured home" shall have the same meaning as set forth in 8 subparagraph four of paragraph a of subdivision y of section two hundred 9 thirty-three of this article. 10 (e) "Mobile home" shall have the same meaning as set forth in subpara- 11 graph five of paragraph a of subdivision y of section two hundred thir- 12 ty-three of this article. 13 2. Requirements for lease to own contracts outside of manufactured 14 home parks: 15 (a) on and after the effective date of this section, no person, corpo- 16 ration, association or any other legal entity shall enter into a lease 17 to own contract except in accordance with the provisions of this subdi- 18 vision; 19 (b) on or after the effective date of this section, no person, corpo- 20 ration, association or other legal entity shall offer a lease to own 21 contract except in compliance with the provisions of this paragraph to 22 establish the ownership of the home that is to be transferred pursuant 23 to the lease to own contract: 24 (1) At least five business days prior to the execution of the lease to 25 own contract, the lessor shall, at its own expense: 26 (A) perform a certified search through the uniform commercial 27 code/lien search from the department of state; 28 (B) perform a records search from the county clerk of the county where 29 the manufactured or mobile home is located; 30 (C) perform a records search from the county clerk of the county where 31 the lessor resides, if different from the county where the manufactured 32 or mobile home is located; 33 (D) if the mobile home is a nineteen hundred ninety-five model year or 34 newer manufactured home, perform a records search from the department of 35 motor vehicles; and 36 (E) (i) receive copies of the results of the searches required under 37 clause (A), (B), (C) or (D) of this subparagraph; and 38 (ii) provide a copy to the lessee, either by certified mail or in 39 person, of each of the searches required under this subparagraph; and 40 (iii) discharge any lien or any security interest encumbering the 41 manufactured or mobile home, if any exist. 42 (c) every lease to own contract, whether as a part of a lease, or as a 43 separate document, shall be in writing and clearly state all terms 44 governing the transaction. Such terms shall be separately stated and, at 45 a minimum, include the following: 46 (i) a description of the home to be leased, including: 47 (A) the name of the manufacturer of the home; 48 (B) the serial number of the home; and 49 (C) the year of manufacture of the home; 50 (ii) the address where the home is located; 51 (iii) if the lessor is also the owner of the land upon which the manu- 52 factured or mobile home is located, the periodic rent attributable sole- 53 ly to the lot upon which the manufactured or mobile home is located; 54 such lot rent may be increased over the term of the contract, but only 55 upon ninety days notice and not more than once in any year;S. 6177--A 8 1 (iv) the amount of the lease to own payments required to be made in 2 addition to the lot rent, if any, including the periodic amount to be 3 paid, the number of payments required to be made over the term of the 4 agreement and the total amount of payments to be made; 5 (v) the disclosures required by the federal Consumer Leasing Act, 15 6 U.S.C.A. § 1667 et. seq., and Regulation M, 12 C.F.R. Part 1013, with- 7 out regard to the dollar amount limitations in 12 C.F.R. § 8 1013.2(e)(1); 9 (vi) the duration of the lease and, if different, the duration of the 10 lease to own option; 11 (vii) information on whether any fees or public charges are delinquent 12 or have been levied against the manufactured or mobile home, including 13 any that may have been imposed by or owed to the manufactured home park 14 owner; 15 (viii) a provision that the manufactured home tenant has the right to 16 accelerate any lease to own payments; 17 (ix) whether the manufactured home park owner or operator has received 18 written notice from any state or local government entity requiring any 19 repairs or improvements to be made to the manufactured or mobile home 20 that is the subject of the lease to own contract; 21 (x) the following notice: "NOTICE TO THE BUYER: (1) Do not sign this 22 lease to own contract before you read it or if it contains any blank 23 spaces. (2) You are entitled to a completely filled in copy of this 24 lease to own contract when you sign it. (3) Under the law, you have the 25 right to pay off in advance the full amount due."; and 26 (xi) a provision requiring that, in the event the lessor is the owner 27 of the land upon which the manufactured home is located, sells or other- 28 wise transfers ownership of the land upon which the manufactured home is 29 located to another person or entity other than the lessee, prior to such 30 transfer, the lessor shall: 31 (A) include a provision in the terms of the agreement transferring the 32 land requiring that the purchaser or transferee of the land assume all 33 obligations of the lessor with respect to the lessee's lease to own 34 contract; 35 (B) refund the full amount of all lease to own payments made by the 36 lessee over the entire time of his or her tenancy plus interest at the 37 rate for thirty year fixed rate mortgages as shown on the then current 38 Primary Mortgage Market Survey published by the Federal Home Loan Mort- 39 gage Corporation (also known as "Freddie Mac"); or 40 (C) agree to continue to retain ownership of the home and receive 41 lease to own contract payments until such time as ownership of the home 42 passes to the lessee. 43 3. Notwithstanding any provision of law to the contrary, a lease to 44 own contract shall be presumed to be valid if: 45 (a) It complies with the provisions of the federal Consumer Leasing 46 Act, 15 U.S.C.A. § 1667 et. seq., and Regulation M, 12 C.F.R. Part 1013, 47 without regard to the dollar amount limitations in 12 C.F.R. § 48 1013.2(e)(1); 49 (b) Payments for lot rent are separately stated and not included with- 50 in the amount of periodic payments for the lease of the home; 51 (c) It provides that upon payment of the purchase option price and all 52 periodic lease payments then due, the lessor shall transfer title to the 53 home to the lessee; and 54 (d) In the case of lease to own contracts entered into on or after the 55 effective date of this subdivision, includes the provisions set forth in 56 subdivision two of this section.S. 6177--A 9 1 4. (a) A lessor who is also the landowner of the land upon which the 2 manufactured home is located and who wrongfully terminates the tenancy 3 of a lessee shall refund to the lessee the full amount of all lease to 4 own payments made by the manufactured home tenant over the entire time 5 of his or her tenancy plus interest at the rate specified in section 6 5-501 of the general obligations law. 7 (b) For purposes of this subdivision, there shall be a rebuttable 8 presumption that a lessor wrongfully terminated the tenancy if: (i) the 9 termination takes place within twelve months of the end of the term of 10 the lease to own contract and (ii) at the time of the termination, the 11 lessee is not in default in the payment of more than one month's rent to 12 the lessor, and is not otherwise in violation of the terms of the lease 13 to own contract or the terms of the lease governing the lessee's use and 14 occupancy of the land upon which the manufactured home is located. 15 5. Until such time as ownership of the home passes to the lessee, 16 manufactured homes under a lease to own contract shall be deemed to be 17 rented homes for purposes of the provisions of the warranty to habita- 18 bility set forth in section two hundred thirty-five-b of this article. 19 6. No lessor shall make any material misrepresentation, expressly or 20 by implication, in any commercial communication, regarding any of the 21 terms of the lease to own contract including, but not limited to: 22 (a) The charges for the lease to own contract option; 23 (b) The existence, nature, or amount of fees or costs to the lessor 24 associated with the lease to own contract, including but not limited to 25 misrepresentations that no fees are charged; 26 (c) The existence, cost, payment terms, or other terms associated with 27 any additional product or feature that is or may be sold in conjunction 28 with the lease to own contract, including but not limited to credit 29 insurance or credit disability insurance; 30 (d) The terms, amounts, payments, or other requirements relating to 31 taxes or insurance associated with the lease to own contract, including 32 but not limited to misrepresentations about: 33 (i) whether separate payment of taxes or insurance is required; or 34 (ii) the extent to which payment for taxes or insurance is included in 35 the loan payments, loan amount, or total amount due from the lessor; 36 (e) Any prepayment penalty associated with the lease to own contract, 37 including but not limited to misrepresentations concerning the exist- 38 ence, nature, amount, or terms of such penalty; 39 (f) The variability of interest, payments, or other terms of the lease 40 to own contract, including but not limited to misrepresentations using 41 the word "fixed"; 42 (g) Any comparison between: 43 (i) any rate or payment that will be available for a period less than 44 the full length of the lease to own contract; and 45 (ii) any actual or hypothetical rate or payment; 46 (h) The amount of the obligation, or the existence, nature, or amount 47 of cash or credit available to the lessee in connection with the lease 48 to own contract, including but not limited to misrepresentations that 49 the lessee will receive a certain amount of cash or credit as part of 50 the transaction; 51 (i) The existence, number, amount, or timing of any minimum or 52 required payments, including but not limited to misrepresentations about 53 any payments or that no payments are required in the lease to own 54 contract; 55 (j) The potential for default under the lease to own contract, includ- 56 ing but not limited to misrepresentations concerning the circumstancesS. 6177--A 10 1 under which the lessee could default for nonpayment of taxes, insurance, 2 or maintenance, or for failure to meet other obligations; 3 (k) The effectiveness of the lease to own contract in helping the 4 lessee resolve difficulties in paying debts, including but not limited 5 to misrepresentations that any lease to own contract can reduce, elimi- 6 nate, or restructure debt or result in a waiver or forgiveness, in whole 7 or in part, of the lessee's existing obligation with any person; 8 (l) The association of the lease to own contract or any provider of 9 such contract with any other person or program, including but not limit- 10 ed to misrepresentations that: 11 (i) the provider is, or is affiliated with, any governmental entity or 12 other organization; or 13 (ii) the product is or relates to a government benefit, or is 14 endorsed, sponsored by, or affiliated with any government or other 15 program, including but not limited to through the use of formats, 16 symbols, or logos that resemble those of such entity, organization, or 17 program; 18 (m) The source of any commercial communication, including but not 19 limited to misrepresentations that a commercial communication is made by 20 or on behalf of the lessee's current mortgage lender or servicer; 21 (n) The right of the lessee to reside in the dwelling that is the 22 subject of the lease to own contract, or the duration of such right; 23 (o) The lessee's ability or likelihood to obtain any lease to own 24 contract or term, including but not limited to misrepresentations 25 concerning whether the lessee has been preapproved or guaranteed for any 26 such contract or term; 27 (p) The lessee's ability or likelihood to obtain a refinancing or 28 modification of any lease to own contract or term, including but not 29 limited to misrepresentations concerning whether the lessee has been 30 preapproved or guaranteed for any such refinancing or modification; and 31 (q) The availability, nature, or substance of counseling services or 32 any other expert advice offered to the lessee regarding any lease to own 33 contract or term, including but not limited to the qualifications of 34 those offering the services or advice. 35 7. It is a violation of this section for any person to obtain, or 36 attempt to obtain, a waiver from any lessee of any protection provided 37 by or any right of the lessee under this section. 38 8. (a) Lessors offering lease to own contracts shall keep, for a peri- 39 od of twenty-four months from the last date the lessor made or dissem- 40 inated the applicable commercial communication regarding any term of any 41 lease to own contract, the following evidence of compliance with this 42 section: 43 (i) copies of all materially different commercial communications as 44 well as sales scripts, training materials, and marketing materials, 45 regarding any term of any lease to own contract, that the lessor made or 46 disseminated during the relevant time period; 47 (ii) documents describing or evidencing all lease to own contracts 48 available to lessees during the time period in which the person made or 49 disseminated each commercial communication regarding any term of any 50 lease to own contract, including but not limited to the names and terms 51 of each such lease to own contract available to lessees; and 52 (iii) documents describing or evidencing all additional products or 53 services (such as credit insurance or credit disability insurance) that 54 are or may be offered or provided with the lease to own contracts avail- 55 able to lessees during the time period in which the person made or 56 disseminated each commercial communication regarding any term of anyS. 6177--A 11 1 lease to own contract, including but not limited to the names and terms 2 of each such additional product or service available to lessees. 3 (b) Any person who is subject to the provisions of this subdivision 4 may keep the records required by subparagraph (a) of this subdivision in 5 any legible form, and in the same manner, format, or place as they keep 6 such records in the ordinary course of business. 7 9. Nothing contained in this section shall be deemed to invalidate a 8 lease to own contract entered into prior to the effective date of this 9 section. 10 10. The provisions of this section shall apply without regard to 11 whether the manufactured home that is the subject of the transaction is 12 a new home or a resale of a previously-owned home. 13 11. No lendor shall: 14 (a) place or hold any mortgage on any manufactured or mobile home sold 15 under a lease to own contract; or 16 (b) cause any insurance coverage on the manufactured or mobile home to 17 lapse or end for the duration of the lease owned contract. 18 12. Except as otherwise provided, failure of the lessor to comply with 19 this section shall give the lessee the unconditional right to cancel the 20 lease with the option to purchase contract and receive immediate refund 21 of all payments and deposits made on account of or in contemplation of 22 the lease with the option to purchase contract. 23 § 3. This act shall take effect on the one hundred eightieth day after 24 it shall have become a law.
