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S06242 Summary:

Amd 233, RP L
Regulates the rates manufactured home park owners may increase rents for manufactured home tenants' lots.
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S06242 Actions:

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S06242 Memo:

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S06242 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                      May 29, 2019
        Introduced  by  Sen. METZGER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development
        AN  ACT to amend the real property law, in relation to rent increases in
          manufactured home parks
          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.  1. (a) The owner of a manufactured home park may not raise a manu-
     4  factured home tenant's lot rent above the consumer price index  averaged
     5  over  the  most  recently  available  preceding thirty-six month period,
     6  unless the proposed rent increase is approved by the division of housing
     7  and community renewal and directly related to operating, maintaining, or
     8  improving the manufactured home park for the following purposes:
     9    (i) The completion and incurring of costs for any capital improvements
    10  or rehabilitation work in the manufactured home park,  as  distinguished
    11  from  ordinary repair, replacement, or maintenance. Capital improvements
    12  shall include roadway improvements, plumbing and piping  infrastructure,
    13  community  structures,  natural disaster recovery. All other maintenance
    14  shall be considered ordinary, and  shall  not  be  grounds  for  a  rent
    15  increase.  All  rent increases resulting from capital improvements shall
    16  expire once the improvement is paid for;
    17    (ii) Changes in property taxes or other taxes within the  manufactured
    18  home park;
    19    (iii) Changes in utility charges within the manufactured home park;
    20    (iv)  Changes  in  insurance  costs  and financing associated with the
    21  manufactured home park;
    22    (v) Changes in reasonable operating and maintenance expenses  relating
    23  to  the  manufactured home park including, but not limited to costs for:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 6242                             2
     1  water service; sewer service;  septic  service;  water  disposal;  trash
     2  collection; and employee expenses.
     3    (b)  (i) A manufactured home park owner shall not incorporate the cost
     4  of a civil penalty, criminal fine, or litigation-related costs for rent-
     5  related proceedings into rent charged under any circumstance.
     6    (ii) A manufactured home park owner shall  not  utilize  the  cost  of
     7  capital  improvements  or  rehabilitation  work as justification for any
     8  future rental increase once such cost has been fully recovered by rental
     9  increases that were incorporated into a prior rental increase in  excess
    10  of  the  consumer  price  index and where such prior rental increase was
    11  properly implemented pursuant to this subdivision.
    12    (c) When a manufactured home tenant first moves onto a lot in a  manu-
    13  factured  home  park,  the  tenant  shall  be offered rent at a rate not
    14  exceeding the average rent for lots similar in size to  such  lot  which
    15  are located within such manufactured home park.
    16    2.  (a) In addition to the notice required pursuant to paragraph three
    17  of subdivision g of this section, a manufactured home park  owner  shall
    18  give  written notice to the home owners' association, if one exists, and
    19  the division of housing and community renewal at least ninety days prior
    20  to any increase in rent. The notice shall identify all affected manufac-
    21  tured home owners by lot number, name, group or phase. If  the  affected
    22  manufactured  home  owners  are not identified by name, the manufactured
    23  home park owner shall make the names  and  addresses  available  to  any
    24  affected  manufactured  home owner, the home owners' association, if one
    25  exists, and the division of housing and community renewal upon request.
    26    (b) (i) If the proposed  rent  increase  exceeds  the  consumer  price
    27  index,  the  division  of housing and community renewal shall schedule a
    28  final meeting between the parties  at  a  mutually-convenient  time  and
    29  place  to  be  held within thirty days from the mailing of the notice of
    30  the rent increase, to discuss the reasons for  the  increase.    At  the
    31  manufactured  home  park  owner's  election, the division of housing and
    32  community renewal shall also schedule  one  or  more  optional  informal
    33  meetings  prior  to  the final meeting. The manufactured home park owner
    34  proposing the rent increase shall recommend to the division  of  housing
    35  and community renewal a date, time and place of the final meeting and of
    36  any  preceding informal meetings, and the division of housing and commu-
    37  nity renewal shall affirm such recommendation with the manufactured home
    38  park owner, if the division finds the date, time and place to be reason-
    39  able. At or before the final meeting the manufactured  home  park  owner
    40  shall,  in  good  faith, disclose in writing all of the material factors
    41  resulting in the decision to increase the rent.
    42    (ii) The parties may agree in a writing  signed  by  the  manufactured
    43  home park owner and at least one affected manufactured home owner or the
    44  home  owners' association to extend or continue any meetings required by
    45  this paragraph to a date specified in the writing and  approved  by  the
    46  division  of  housing  and  community renewal as reasonable.  Within two
    47  business days of signing an agreement to continue  or  extend  meetings,
    48  the  manufactured  home  park owner shall notify the division of housing
    49  and community renewal of such agreement by forwarding the signed  agree-
    50  ment to the division.
    51    (c)  After the final meeting, any affected manufactured home owner who
    52  has not already accepted the proposed  increase,  or  the  home  owners'
    53  association  on  behalf of one or more affected manufactured home owners
    54  who have not already accepted the proposed increase may,  within  thirty
    55  days  from the conclusion of the final meeting, petition the division of
    56  housing and community renewal to appoint an arbitrator to conduct  arbi-

        S. 6242                             3
     1  tration  subject  to the provisions of article seventy-five of the civil
     2  practice law and rules.
     3    3.  A  manufactured  home  park  owner  who raises a manufactured home
     4  owner's rent more than the annual average increase of the consumer price
     5  index for the preceding thirty-six month period without having  obtained
     6  approval  of  the  division  of  housing  and community renewal shall be
     7  required to immediately reduce the rent to the amount in  effect  before
     8  the  unauthorized increase and rebate the unauthorized rent collected to
     9  the manufactured home owners with interest.
    10    4. Manufactured home  park  cooperatives  shall  be  exempt  from  the
    11  provisions of this subdivision.
    12    § 2. This act shall take effect immediately.
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