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


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

CORRECTIVE REPRINT

 

PRIOR PRINTER'S NO. 1428

PRINTER'S NO.  1459

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1201

Session of

2009

  

  

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

  

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Amending the act of November 24, 1976 (P.L.1176, No.261),

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entitled "An act providing for the rights and duties of

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mobile home owners or operators and mobile home residents,"

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adding definitions; and providing for written disclosures

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prior to sale or rental of mobile home lots.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  The title of the act of November 24, 1976

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(P.L.1176, No.261), known as the Mobile Home Park Rights Act, is

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amended to read:

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AN ACT

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Providing for the rights and duties of mobile home owners or

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operators and mobile home residents; requiring certain mobile

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home park owners and operators to provide written disclosures

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prior to the rental or sale of any mobile home park lot.

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Section 2.  Section 1 of the act is amended to read:

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Section 1.  Short Title.--This act shall be known and may be

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cited as the "Mobile Home Park Disclosure and Rights Act."

 


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Section 3.  Section 2 of the act is amended by adding

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definitions to read:

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Section 2.  Definitions.--As used in this act:

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"Agency" means the Office of the Attorney General.

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* * *

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"Mobile home park owner" or "park owner" means an owner or

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operator of a mobile home park.

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* * *

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"Mobile home space rental agreement" or "rental agreement"

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means any mutual understanding or lease, whether oral or

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written, between a mobile home resident and a mobile home park

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owner in which the mobile home resident is entitled to place

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that resident's mobile home on a mobile home space for either

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direct or indirect remuneration of the mobile home park owner.

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The term includes any ground rent charged to the mobile home

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resident.

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"Mobile home subdivision" means a subdivision of mobile homes

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where individual lots are owned by mobile home residents and

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where a portion of the subdivision or the amenities exclusively

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serving the subdivision are retained by the subdivision

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developer.

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"Operator of a mobile home park" or "operator" means either a

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person who establishes a mobile home park on land which is

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leased from another person or a person who has been delegated

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the authority to act as the park owner in matters relating to

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the administration and management of the mobile home park,

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including, but not limited to, authority to make decisions

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relating to the mobile home park.

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* * *

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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

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Lot; Prospectus, Filing, Approval.--(a)  In a mobile home park

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containing 20 or more lots, the park owner shall file a

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prospectus with the agency. Prior to entering into an

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enforceable rental agreement for a mobile home lot, the park

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owner shall deliver to the homeowner a prospectus approved by

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the agency.

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(b)  The agency shall determine whether the proposed

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prospectus or offering circular is adequate to meet the

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requirements of this section and shall notify the park owner by

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mail, within 45 days after receipt of the document, that the

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agency has found that the prospectus or offering circular is

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adequate or has found specified deficiencies. If the agency does

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not make either finding within 45 days, the prospectus shall be

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deemed to have been found adequate.

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(c)  (1)  Filings for mobile home parks in which lots have

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not been offered for lease prior to June 30, 2009, shall be

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accompanied by a filing fee of $10 per lot offered for lease by

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the park owner; however, the fee shall not be less than $100.

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(2)  Filings for mobile home parks in which lots have been

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offered for lease prior to the effective date of this section

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shall be accompanied by a filing fee as follows:

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(i)  For a park in which there are 20-50 lots: $100.

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(ii)  For a park in which there are 51-100 lots: $150.

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(iii)  For a park in which there are 101-150 lots: $200.

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(iv)  For a park in which there are 151-200 lots: $250.

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(v)  For a park in which there are 201 or more lots: $300.

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(d)  The agency shall maintain copies of each prospectus and

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all amendments to each prospectus which are considered adequate

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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

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the written request is received.

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(e)  The park owner shall furnish a copy of the prospectus or

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offering circular together with all of the exhibits thereto to

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each prospective lessee. Delivery shall be made prior to

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execution of the lot rental agreement or at the time of

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occupancy, whichever occurs first. Upon delivery of a prospectus

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to a prospective lessee, the lot rental agreement is voidable by

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the lessee for a period of 15 days. However, the park owner is

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not required to furnish a copy of the prospectus or offering

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circular if the tenancy is a renewal of a tenancy and the mobile

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home resident has previously received the prospectus or offering

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circular.

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(f)  The prospectus or offering circular together with its

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exhibits is a disclosure document intended to afford protection

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to homeowners and prospective homeowners in the mobile home

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park. The purpose of the document is to disclose the history of

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expenses associated with tenancy in and representations of the

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mobile home park owner concerning the operations of the mobile

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home park and to inform prospective owners of the features of

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the mobile home community.

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(g)  With regard to a tenancy in existence on the effective

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date of this section, the prospectus or offering circular

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offered by the mobile home park owner shall contain the same

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terms and conditions as rental agreements offered to all other

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mobile home owners residing in the park on the effective date of

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this section, excepting only the rent variations based upon lot

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location and size.

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(h)  The mobile home park owner may request that the

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homeowner sign a receipt indicating that the homeowner has

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received a copy of the prospectus, the rules and regulations and

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other pertinent documents so long as any such documents are

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clearly identified in the receipt itself. Such a receipt shall

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indicate nothing more than that the documents identified in the

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receipt have been received by the mobile home owner as of a date

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certain.

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Section 2.2.  Prospectus or Offering Circular.--The

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prospectus or offering circular, which is required to be

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provided by section 2.1, must contain the following information:

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(1)  The front cover or the first page must contain only:

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(i)  The name of the mobile home park.

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(ii)  The following statements in conspicuous type:

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1.  THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION

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REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL

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OBLIGATIONS IN LEASING A MOBILE HOME LOT. MAKE SURE THAT

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YOU READ THE ENTIRE DOCUMENT AND SEEK LEGAL ADVICE IF YOU

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HAVE ANY QUESTIONS REGARDING THE INFORMATION SET FORTH IN

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THIS DOCUMENT.

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2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

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NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL

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REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS

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AND SALES MATERIALS.

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3.  ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS

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CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER

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OR OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR)

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AND ITS EXHIBITS FOR CORRECT REPRESENTATIONS.

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4.  YOU HAVE 15 DAYS FROM THE DATE YOU RECEIVED THIS

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PROSPECTUS TO CANCEL YOUR AGREEMENT IN WRITING.

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(2)  The next page must contain all statements required to be

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in conspicuous type in the prospectus or offering circular in a

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summary form.

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(3)  A separate index of the contents and exhibits of the

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prospectus.

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(4)  Beginning on the first page of the text, the following

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information:

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(i)  The name and address or location of the mobile home

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park.

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(ii)  The name and address of the person authorized to

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receive notices and demands on the park owner's behalf.

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(iii)  A description of the mobile home park property,

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including, but not limited to:

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(A)  The number of lots in each section, the approximate size

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of each lot, the setback requirements and the minimum separation

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distance between mobile homes as required by law.

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(B)  The maximum number of lots that will use shared

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facilities of the park; and, if the maximum number of lots will

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vary, a description of the basis for variation.

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(5)  A description of the recreational and other common

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facilities, if any, that will be used by the mobile home

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residents, including, but not limited to:

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(i)  The number of buildings and each room thereof and its

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intended purposes, location, approximate floor area and capacity

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in numbers of people.

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(ii)  Each swimming pool, if any, as to its general location,

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approximate size and depths and approximate deck size and

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capacity and whether heated.

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(iii)  All other facilities and permanent improvements which

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will serve the mobile home residents.

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(iv)  A general description of the items of personal property

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available for use by the mobile home residents.

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(v)  A general description of the days and hours that

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facilities will be available for use.

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(vi)  A statement as to whether all improvements are complete

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and, if not, their estimated completion dates.

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(6)  The arrangements for management of the park and

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maintenance and operation of the park property and of other

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property that will serve the mobile home residents and the

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nature of the services included.

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(7)  A description of all improvements, whether temporary or

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permanent, which are required to be installed by the mobile home

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resident as a condition of his or her occupancy in the park.

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(8)  The manner in which utility and other services,

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including, but not limited to, sewage and waste disposal, cable

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television, water supply and storm drainage, will be provided,

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and the person or entity furnishing them. The services and the

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lot rental amount or user fees charged by the park owner for the

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services provided by the park owner shall also be disclosed.

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(9)  An explanation of the manner in which the lot rental

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amount will be raised, including, but not limited to:

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(i)  Notification of the mobile home resident at least 90

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days in advance of the increase.

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(ii)  Disclosure of any factors which may affect the lot

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rental amount, including, but not limited to:

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(A)  Water rates.

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(B)  Sewer rates.

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(C)  Waste disposal rates.

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(D)  Maintenance costs, including costs of deferred

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maintenance.

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(E)  Management costs.

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(F)  Property taxes.

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(G)  Major repairs or improvements.

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(H)  Any other fees, costs, entrance fees or charges to which

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the mobile home resident may be subjected.

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(10)  Disclosure of the manner in which the pass-through

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charges will be assessed.

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(11)  A report of the utility fees charged for the lot during

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the previous year.

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(12)  Disclosure of all user fees currently charged for

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services offered which the homeowner may elect to incur and the

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manner in which the fees will be increased.

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(13)  The park rules and regulations and an explanation of

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the manner in which park rules or regulations will be set,

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changed or promulgated.

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(14)  A statement describing the existing zoning

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classification of the park property and permitted uses under

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such classification.

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(15)  A statement of the nature and type of zoning under

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which the mobile home park operates, the name of the zoning

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authority which has jurisdiction over the land comprising the

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mobile home park and, if applicable, a detailed description of

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any definite future plans which the park owner has for changes

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in the use of the land comprising the mobile home park.

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(16)  Copies of the following, to the extent they are

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applicable, as exhibits:

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(i)  The ground lease or other underlying leases of the

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mobile home park or a summary of the contents of the lease or

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leases when copies of the same have been filed with the agency.

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(ii)  A copy of the mobile home park lot layout showing the

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location of the recreational areas and other common areas.

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(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

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the foregoing.

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(iv)  A copy of the rental agreement or agreements to be

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offered for rental of mobile home lots.

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(17)  An addendum to the prospectus unique to each rental

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space in the mobile home park containing:

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(i)  The rent increases for the three full calendar years

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immediately preceding the prospective initial rental agreement

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date. This information shall be for basic space rental only and

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does not apply to other fees such as late charges, guest fees

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and utility charges.

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(ii)  The park owner or operator must disclose the rent

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history with calculations that fairly describe the rent history

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and that are made in any manner that reasonably informs the

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prospective tenant of the history of basic space rent in the

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mobile home park during that period.

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(iii)  The disclosure calculation shall be made as of January

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of each year by adding the dollar amounts and percentage amounts

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for aggregate rental increases that became effective in the

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prior calendar year for every space in the park and dividing

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that number by the total number of occupied revenue spaces for

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which rent was or could have been increased.

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(iv)  This average amount of rental increase and average

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percentage of rental increase shall be posted at the rental

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office for three years.

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(v)  Disclosure calculations made pursuant to paragraph (17)

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shall be made to the best of the park owner's or operator's

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ability.

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Section 2.3.  Written Notification in the Absence of

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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

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written notification to the mobile home resident of the

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following information prior to occupancy:

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(1)  The nature and type of zoning under which the mobile

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home park operates; the name of the zoning authority which has

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jurisdiction over the land comprising the mobile home park; and

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a detailed description containing all information available to

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the mobile home park owner, including the time, manner and

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nature, of any definite future plans which he or she has for

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future changes in the use of the land comprising the mobile home

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park or a portion thereof.

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(2)  The name and address of the mobile home park owner or a

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person authorized to receive notices and demands on his or her

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behalf.

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(3)  All fees and charges, assessments or other financial

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obligations not included in the rental agreement and a copy of

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the rules and regulations in effect.

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(4)  An explanation of the manner in which the lot rental

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amount will be raised, including, but not limited to:

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(i)  Notification of the mobile home resident at least 90

21

days in advance of the increase.

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(ii)  Disclosure of any factors which may affect the lot

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rental amount, including, but not limited to:

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(A)  Water rates.

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(B)  Sewer rates.

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(C)  Waste disposal rates.

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(D)  Maintenance costs, including costs of deferred

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maintenance.

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(E)  Management costs.

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(F)  Property taxes.

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(G)  Major repairs or improvements.

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(H)  Any other fees, costs, entrance fees or charges to which

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the mobile home resident may be subjected.

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Section 2.4.  Failure to Provide Prospectus or Offering

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Circular Prior to Occupancy.--(a)  If a prospectus or offering

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circular was not provided to the prospective lessee prior to

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execution of the lot rental agreement or prior to initial

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occupancy of a new mobile home, the rental agreement is voidable

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by the lessee until 15 days after the receipt by the lessee of

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the prospectus or offering circular and all exhibits thereto.

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(b)  To cancel the rental agreement, the mobile home resident

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shall deliver written notice to the park owner within 15 days

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after receipt of the prospectus or offering circular and shall

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thereupon be entitled to a refund of any deposit together with

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relocation costs for the mobile home, or the market value

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thereof, including any appurtenances thereto paid for by the

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mobile home resident, from the park owner.

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Section 5.  This act shall apply to all new sales or leases

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of mobile home park lots entered into on or after July 1, 2009.

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This act shall also apply to any lease renewals entered into on

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or after July 1, 2009.

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Section 6.  This act shall take effect July 1, 2009.

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