Bill Text: PA HB1201 | 2009-2010 | Regular Session | Amended

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Bill Title: Adding definitions; and providing for written disclosures prior to sale or rental of mobile home lots.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-04-07 - Corrective Reprint, Printer's No. 1459 [HB1201 Detail]

Download: Pennsylvania-2009-HB1201-Amended.html

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CORRECTIVE REPRINT
PRIOR PRINTER'S NO. 1428 PRINTER'S NO. 1459
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1201 Session of2009
INTRODUCED BY HARPER, R. TAYLOR, BRENNAN, CLYMER, D. COSTA, CREIGHTON, FREEMAN, GRUCELA, HORNAMAN, JOSEPHS, KAUFFMAN, KORTZ, KOTIK, MURT, PASHINSKI, SCAVELLO, SIPTROTH, J. TAYLOR, TRUE AND GEIST, APRIL 3, 2009
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 3, 2009
AN ACT
Amending the act of November 24, 1976 (P.L.1176, No.261),
entitled "An act providing for the rights and duties of
mobile home owners or operators and mobile home residents,"
adding definitions; and providing for written disclosures
prior to sale or rental of mobile home lots.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of November 24, 1976
(P.L.1176, No.261), known as the Mobile Home Park Rights Act, is
amended to read:
AN ACT
Providing for the rights and duties of mobile home owners or
operators and mobile home residents; requiring certain mobile
home park owners and operators to provide written disclosures
prior to the rental or sale of any mobile home park lot.
Section 2. Section 1 of the act is amended to read:
Section 1. Short Title.--This act shall be known and may be
cited as the "Mobile Home Park Disclosure and Rights Act."
Section 3. Section 2 of the act is amended by adding
definitions to read:
Section 2. Definitions.--As used in this act:
"Agency" means the Office of the Attorney General.
* * *
"Mobile home park owner" or "park owner" means an owner or
operator of a mobile home park.
* * *
"Mobile home space rental agreement" or "rental agreement"
means any mutual understanding or lease, whether oral or
written, between a mobile home resident and a mobile home park
owner in which the mobile home resident is entitled to place
that resident's mobile home on a mobile home space for either
direct or indirect remuneration of the mobile home park owner.
The term includes any ground rent charged to the mobile home
resident.
"Mobile home subdivision" means a subdivision of mobile homes
where individual lots are owned by mobile home residents and
where a portion of the subdivision or the amenities exclusively
serving the subdivision are retained by the subdivision
developer.
"Operator of a mobile home park" or "operator" means either a
person who establishes a mobile home park on land which is
leased from another person or a person who has been delegated
the authority to act as the park owner in matters relating to
the administration and management of the mobile home park,
including, but not limited to, authority to make decisions
relating to the mobile home park.
* * *
Section 4. The act is amended by adding sections to read:
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Section 2.1. Disclosure Prior to Rental of a Mobile Home
Lot; Prospectus, Filing, Approval.--(a) In a mobile home park
containing 20 or more lots, the park owner shall file a
prospectus with the agency. Prior to entering into an
enforceable rental agreement for a mobile home lot, the park
owner shall deliver to the homeowner a prospectus approved by
the agency.
(b) The agency shall determine whether the proposed
prospectus or offering circular is adequate to meet the
requirements of this section and shall notify the park owner by
mail, within 45 days after receipt of the document, that the
agency has found that the prospectus or offering circular is
adequate or has found specified deficiencies. If the agency does
not make either finding within 45 days, the prospectus shall be
deemed to have been found adequate.
(c) (1) Filings for mobile home parks in which lots have
not been offered for lease prior to June 30, 2009, shall be
accompanied by a filing fee of $10 per lot offered for lease by
the park owner; however, the fee shall not be less than $100.
(2) Filings for mobile home parks in which lots have been
offered for lease prior to the effective date of this section
shall be accompanied by a filing fee as follows:
(i) For a park in which there are 20-50 lots: $100.
(ii) For a park in which there are 51-100 lots: $150.
(iii) For a park in which there are 101-150 lots: $200.
(iv) For a park in which there are 151-200 lots: $250.
(v) For a park in which there are 201 or more lots: $300.
(d) The agency shall maintain copies of each prospectus and
all amendments to each prospectus which are considered adequate
by the agency. The agency shall provide copies of the documents
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requested in writing under this subsection within ten days after
the written request is received.
(e) The park owner shall furnish a copy of the prospectus or
offering circular together with all of the exhibits thereto to
each prospective lessee. Delivery shall be made prior to
execution of the lot rental agreement or at the time of
occupancy, whichever occurs first. Upon delivery of a prospectus
to a prospective lessee, the lot rental agreement is voidable by
the lessee for a period of 15 days. However, the park owner is
not required to furnish a copy of the prospectus or offering
circular if the tenancy is a renewal of a tenancy and the mobile
home resident has previously received the prospectus or offering
circular.
(f) The prospectus or offering circular together with its
exhibits is a disclosure document intended to afford protection
to homeowners and prospective homeowners in the mobile home
park. The purpose of the document is to disclose the history of
expenses associated with tenancy in and representations of the
mobile home park owner concerning the operations of the mobile
home park and to inform prospective owners of the features of
the mobile home community.
(g) With regard to a tenancy in existence on the effective
date of this section, the prospectus or offering circular
offered by the mobile home park owner shall contain the same
terms and conditions as rental agreements offered to all other
mobile home owners residing in the park on the effective date of
this section, excepting only the rent variations based upon lot
location and size.
(h) The mobile home park owner may request that the
homeowner sign a receipt indicating that the homeowner has
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received a copy of the prospectus, the rules and regulations and
other pertinent documents so long as any such documents are
clearly identified in the receipt itself. Such a receipt shall
indicate nothing more than that the documents identified in the
receipt have been received by the mobile home owner as of a date
certain.
Section 2.2. Prospectus or Offering Circular.--The
prospectus or offering circular, which is required to be
provided by section 2.1, must contain the following information:
(1) The front cover or the first page must contain only:
(i) The name of the mobile home park.
(ii) The following statements in conspicuous type:
1. THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION
REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL
OBLIGATIONS IN LEASING A MOBILE HOME LOT. MAKE SURE THAT
YOU READ THE ENTIRE DOCUMENT AND SEEK LEGAL ADVICE IF YOU
HAVE ANY QUESTIONS REGARDING THE INFORMATION SET FORTH IN
THIS DOCUMENT.
2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL
REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS
AND SALES MATERIALS.
3. ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS
CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER
OR OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR)
AND ITS EXHIBITS FOR CORRECT REPRESENTATIONS.
4. YOU HAVE 15 DAYS FROM THE DATE YOU RECEIVED THIS
PROSPECTUS TO CANCEL YOUR AGREEMENT IN WRITING.
(2) The next page must contain all statements required to be
in conspicuous type in the prospectus or offering circular in a
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summary form.
(3) A separate index of the contents and exhibits of the
prospectus.
(4) Beginning on the first page of the text, the following
information:
(i) The name and address or location of the mobile home
park.
(ii) The name and address of the person authorized to
receive notices and demands on the park owner's behalf.
(iii) A description of the mobile home park property,
including, but not limited to:
(A) The number of lots in each section, the approximate size
of each lot, the setback requirements and the minimum separation
distance between mobile homes as required by law.
(B) The maximum number of lots that will use shared
facilities of the park; and, if the maximum number of lots will
vary, a description of the basis for variation.
(5) A description of the recreational and other common
facilities, if any, that will be used by the mobile home
residents, including, but not limited to:
(i) The number of buildings and each room thereof and its
intended purposes, location, approximate floor area and capacity
in numbers of people.
(ii) Each swimming pool, if any, as to its general location,
approximate size and depths and approximate deck size and
capacity and whether heated.
(iii) All other facilities and permanent improvements which
will serve the mobile home residents.
(iv) A general description of the items of personal property
available for use by the mobile home residents.
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(v) A general description of the days and hours that
facilities will be available for use.
(vi) A statement as to whether all improvements are complete
and, if not, their estimated completion dates.
(6) The arrangements for management of the park and
maintenance and operation of the park property and of other
property that will serve the mobile home residents and the
nature of the services included.
(7) A description of all improvements, whether temporary or
permanent, which are required to be installed by the mobile home
resident as a condition of his or her occupancy in the park.
(8) The manner in which utility and other services,
including, but not limited to, sewage and waste disposal, cable
television, water supply and storm drainage, will be provided,
and the person or entity furnishing them. The services and the
lot rental amount or user fees charged by the park owner for the
services provided by the park owner shall also be disclosed.
(9) An explanation of the manner in which the lot rental
amount will be raised, including, but not limited to:
(i) Notification of the mobile home resident at least 90
days in advance of the increase.
(ii) Disclosure of any factors which may affect the lot
rental amount, including, but not limited to:
(A) Water rates.
(B) Sewer rates.
(C) Waste disposal rates.
(D) Maintenance costs, including costs of deferred
maintenance.
(E) Management costs.
(F) Property taxes.
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(G) Major repairs or improvements.
(H) Any other fees, costs, entrance fees or charges to which
the mobile home resident may be subjected.
(10) Disclosure of the manner in which the pass-through
charges will be assessed.
(11) A report of the utility fees charged for the lot during
the previous year.
(12) Disclosure of all user fees currently charged for
services offered which the homeowner may elect to incur and the
manner in which the fees will be increased.
(13) The park rules and regulations and an explanation of
the manner in which park rules or regulations will be set,
changed or promulgated.
(14) A statement describing the existing zoning
classification of the park property and permitted uses under
such classification.
(15) A statement of the nature and type of zoning under
which the mobile home park operates, the name of the zoning
authority which has jurisdiction over the land comprising the
mobile home park and, if applicable, a detailed description of
any definite future plans which the park owner has for changes
in the use of the land comprising the mobile home park.
(16) Copies of the following, to the extent they are
applicable, as exhibits:
(i) The ground lease or other underlying leases of the
mobile home park or a summary of the contents of the lease or
leases when copies of the same have been filed with the agency.
(ii) A copy of the mobile home park lot layout showing the
location of the recreational areas and other common areas.
(iii) All covenants and restrictions and zoning which will
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affect the use of the property and which are not contained in
the foregoing.
(iv) A copy of the rental agreement or agreements to be
offered for rental of mobile home lots.
(17) An addendum to the prospectus unique to each rental
space in the mobile home park containing:
(i) The rent increases for the three full calendar years
immediately preceding the prospective initial rental agreement
date. This information shall be for basic space rental only and
does not apply to other fees such as late charges, guest fees
and utility charges.
(ii) The park owner or operator must disclose the rent
history with calculations that fairly describe the rent history
and that are made in any manner that reasonably informs the
prospective tenant of the history of basic space rent in the
mobile home park during that period.
(iii) The disclosure calculation shall be made as of January
of each year by adding the dollar amounts and percentage amounts
for aggregate rental increases that became effective in the
prior calendar year for every space in the park and dividing
that number by the total number of occupied revenue spaces for
which rent was or could have been increased.
(iv) This average amount of rental increase and average
percentage of rental increase shall be posted at the rental
office for three years.
(v) Disclosure calculations made pursuant to paragraph (17)
shall be made to the best of the park owner's or operator's
ability.
Section 2.3. Written Notification in the Absence of
Prospectus.--A mobile home park owner who enters into a rental
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agreement in which a prospectus is not provided shall give
written notification to the mobile home resident of the
following information prior to occupancy:
(1) The nature and type of zoning under which the mobile
home park operates; the name of the zoning authority which has
jurisdiction over the land comprising the mobile home park; and
a detailed description containing all information available to
the mobile home park owner, including the time, manner and
nature, of any definite future plans which he or she has for
future changes in the use of the land comprising the mobile home
park or a portion thereof.
(2) The name and address of the mobile home park owner or a
person authorized to receive notices and demands on his or her
behalf.
(3) All fees and charges, assessments or other financial
obligations not included in the rental agreement and a copy of
the rules and regulations in effect.
(4) An explanation of the manner in which the lot rental
amount will be raised, including, but not limited to:
(i) Notification of the mobile home resident at least 90
days in advance of the increase.
(ii) Disclosure of any factors which may affect the lot
rental amount, including, but not limited to:
(A) Water rates.
(B) Sewer rates.
(C) Waste disposal rates.
(D) Maintenance costs, including costs of deferred
maintenance.
(E) Management costs.
(F) Property taxes.
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(G) Major repairs or improvements.
(H) Any other fees, costs, entrance fees or charges to which
the mobile home resident may be subjected.
Section 2.4. Failure to Provide Prospectus or Offering
Circular Prior to Occupancy.--(a) If a prospectus or offering
circular was not provided to the prospective lessee prior to
execution of the lot rental agreement or prior to initial
occupancy of a new mobile home, the rental agreement is voidable
by the lessee until 15 days after the receipt by the lessee of
the prospectus or offering circular and all exhibits thereto.
(b) To cancel the rental agreement, the mobile home resident
shall deliver written notice to the park owner within 15 days
after receipt of the prospectus or offering circular and shall
thereupon be entitled to a refund of any deposit together with
relocation costs for the mobile home, or the market value
thereof, including any appurtenances thereto paid for by the
mobile home resident, from the park owner.
Section 5. This act shall apply to all new sales or leases
of mobile home park lots entered into on or after July 1, 2009.
This act shall also apply to any lease renewals entered into on
or after July 1, 2009.
Section 6. This act shall take effect July 1, 2009.
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