PRIOR PRINTER'S NO. 72 PRINTER'S NO. 2053
No. 81 Session of 2005
INTRODUCED BY GREENLEAF, WONDERLING, RAFFERTY, KITCHEN, PIPPY
AND BOSCOLA, JANUARY 31, 2005
SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL
LICENSURE, AS AMENDED, SEPTEMBER 20, 2006
AN ACT
1 Amending the act of November 24, 1976 (P.L.1176, No.261),
2 entitled "An act providing for the rights and duties of
3 mobile home owners or operators and mobile home residents,"
4 further providing for disclosure of fees; and making
5 editorial changes.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. The title and section 1 SECTIONS 1, 2, 3, 4, 5, <--
9 6, 7, 9, 10, 11, 12, 13 AND 16 of the act of November 24, 1976
10 (P.L.1176, No.261), known as the Mobile Home Park Rights Act,
11 are amended to read:
12 AN ACT
13 Providing for the rights and duties of [mobile] manufactured
14 home owners or operators and [mobile] manufactured home
15 residents.
16 Section 1. Short Title.--This act shall be known and may be
17 cited as the ["Mobile Home Park Rights Act."] "Manufactured Home
18 Community Rights Act."
19 Section 2. The act is amended by adding a section to read: <--
1 Section 1.1. Legislative Declaration.--The General Assembly
2 finds and declares that:
3 (1) Many seniors are on fixed incomes comprised principally
4 of small pensions and Social Security income.
5 (2) Seniors that live and own manufactured homes and reside
6 in a manufactured home community are often faced with rent
7 payments that increase faster than their Social Security cost-
8 of-living adjustments.
9 (3) Seniors who have lived in manufactured homes for many
10 years are less able than younger residents to adapt to a new
11 location and afford the increasing costs of moving a
12 manufactured home.
13 (4) Therefore, to protect the health and well-being of
14 seniors who own manufactured homes within a manufactured home
15 community, it is in the public interest to ensure those seniors
16 can afford the rent to avoid displacement due to rents that
17 increase faster than their income.
18 Section 3. Sections 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13 and
19 16 of the act are amended to read:
20 Section 2. Definitions.--As used in this act:
21 ["Mobile home" means a] "Manufactured home." A
22 transportable, single-family dwelling unit intended for
23 permanent occupancy and constructed as a single unit, or as two
24 or more units designed to be joined into one integral unit
25 capable of again being separated for repeated towing, which
26 arrives at a site complete and ready for occupancy except for
27 minor and incidental unpacking and assembly operations, and
28 constructed so that it may be used without a permanent
29 foundation.
30 ["Mobile home park" means any] "Manufactured home community."
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1 A site, lot, field or tract of land, privately or publicly owned
2 or operated, upon which three or more [mobile] manufactured
3 homes, occupied for dwelling or sleeping purposes, are or are
4 intended to be located, regardless of whether or not a charge is
5 made for such accommodation.
6 ["Mobile home resident" means an] "Manufactured home
7 resident." An owner of a [mobile] manufactured home who leases
8 or rents space in a [mobile home park] manufactured home
9 community. The term does not include a person who rents or
10 leases a [mobile] manufactured home.
11 ["Mobile home space" means a] "Manufactured home space." A
12 plot of ground within a [mobile home park] manufactured home
13 community designed for the accommodation of one [mobile]
14 manufactured home.
15 ["Rent" means ground] "Rent." Ground rent for a [mobile]
16 manufactured home site.
17 "Senior." A resident of this Commonwealth who is at least 55 <--
18 years of age.
19 "Service [charges" means charges] charges." Charges for
20 electricity, gas service which is underground and piped directly
21 to individual units within the [park] community, trash removal,
22 sewage and water.
23 Section 3. Evictions.--(a) A [mobile] manufactured home
24 resident shall only be evicted for any of the following reasons:
25 (1) Nonpayment of rent.
26 (2) A second or subsequent violation of the rules of the
27 [mobile home park] manufactured home community occurring within
28 a six-month period.
29 (3) If there is a change in use of the [park] community land
30 or parts thereof.
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1 (4) Termination of [mobile home park] manufactured home
2 community.
3 (b) A [mobile] manufactured home resident shall only be
4 evicted in accordance with the following procedure:
5 (1) A resident shall not be evicted [by] for any self-help
6 measure.
7 (2) Prior to the commencement of any eviction proceeding,
8 the [mobile home park] manufactured home community owner shall
9 notify the [mobile home park] manufactured home community
10 resident in writing of the particular breach or violation of the
11 lease or [park] community rules by certified or registered mail.
12 (i) In the case of nonpayment of rent, the notice shall
13 state that an eviction proceeding may be commenced if the
14 [mobile] manufactured home resident does not pay the overdue
15 rent within 20 days from the date of service if the notice is
16 given on or after April 1 and before September 1, and 30 days if
17 given on or after September 1 and before April 1 or an
18 additional nonpayment of rent occurring within six months of the
19 giving of the notice may result in immediate eviction
20 proceedings.
21 (ii) In the case of a breach of the lease or violation of
22 the [park] community rules, other than nonpayment of rent, the
23 notice shall describe the particular breach or violation. No
24 eviction action shall be commenced unless the [mobile home park]
25 manufactured home community resident has been notified as
26 required by this section, and upon a second or subsequent
27 violation or breach occurring within six months, the [mobile
28 home park] manufactured home community owner may commence
29 eviction proceedings at any time within 60 days of the last
30 violation or breach.
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1 (c) A [mobile] manufactured home resident shall not be
2 evicted when there is proof that the rules he is accused of
3 violating are not enforced with respect to the other [mobile]
4 manufactured home residents or nonresidents on the [park]
5 community premises.
6 Section 4. [Park] Community Rules and Regulations.--(a) The
7 owner or operator of a [mobile home park] manufactured home
8 community may at any time establish fair and reasonable rules
9 and regulations reasonably related to the health, or safety of
10 residents in the [park] community or to the upkeep of the [park,
11 provided such rules and regulations] community, provided the
12 rules and regulations are not arbitrary or capricious and are
13 included in any written lease and delivered to existing
14 residents and are posted in a conspicuous and readily accessible
15 place in the [mobile home park.] manufactured home community.
16 (b) All rules or rental charges shall be uniformly applied
17 to all [mobile] manufactured home residents or prospective
18 [mobile] manufactured home residents of the same or similar
19 category. When the lease or rental agreement is oral, the
20 resident shall be provided with a written copy of such rules and
21 regulations prior to the owner's or operator's acceptance of any
22 initial deposit, fee or rent. In addition a copy of this act
23 shall be posted in a conspicuous and readily accessible place in
24 the mobile home park and a copy of the following notice shall be
25 reproduced in capital typewritten letters or in ten-point
26 boldface print and be given to each resident upon entering into
27 the lease.
28 "IMPORTANT NOTICE REQUIRED BY LAW
29 The rules set forth below govern the terms of your lease
30 or occupancy agreement with this [mobile home park]
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1 manufactured home community. The law requires all of these
2 rules to be fair and reasonable.
3 You may continue to stay in this [park] community as long
4 as you pay your rent and other reasonable fees, service
5 charges and assessments hereinafter set forth and abide by
6 the rules of the [park] community. Entrance and exit fees may
7 not be charged. Installation and removal fees may not be
8 charged in excess of the actual cost to the [mobile home
9 park] manufactured home community owner or operator for
10 providing such service for the installation or removal of a
11 [mobile home in a mobile] manufactured home in a manufactured
12 home space.
13 You may be evicted for any of the following reasons:
14 (1) Nonpayment of rent.
15 (2) A second or subsequent violation of the rules of the
16 [mobile home park] manufactured home community occurring
17 within a six-month period.
18 (3) If there is a change in use of the [park] community
19 land or parts thereof.
20 (4) Termination of [mobile home park.] manufactured home
21 community.
22 You shall only be evicted in accordance with the
23 following procedure:
24 (1) A resident shall not be evicted [by] for any self-
25 help measure.
26 (2) Prior to the commencement of any eviction
27 proceeding, the [mobile home park] manufactured home
28 community owner shall notify you in writing of the particular
29 breach or violation of the lease or [park] community rules by
30 certified or registered mail.
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1 (i) In the case of nonpayment of rent, the notice shall
2 state that an eviction proceeding may be commenced if the
3 [mobile] manufactured home resident does not pay the overdue
4 rent within 20 days from the date of service if the notice is
5 given on or after April 1 and before September 1, and 30 days
6 if given on or after September 1 and before April 1 or an
7 additional nonpayment of rent occurring within six months of
8 the giving of the notice may result in immediate eviction
9 proceedings.
10 (ii) In the case of a breach of the lease or violation
11 of the [park] community rules, other than nonpayment of rent,
12 the notice shall describe the particular breach or violation.
13 No eviction action shall be commenced unless you have been
14 notified as required by this section, and upon a second or
15 subsequent violation or breach occurring within six months,
16 the [mobile home park] manufactured home community owner may
17 commence eviction proceedings at any time within 60 days of
18 the last violation or breach.
19 You shall not be evicted when there is proof that the
20 rules you are accused of violating are not enforced with
21 respect to the other [mobile] manufactured home residents or
22 nonresidents on the [park] community premises.
23 In addition, no eviction proceeding for nonpayment of
24 rent may be commenced against you until you have received
25 notice by certified or registered mail of the nonpayment and
26 have been given to pay the overdue rent 20 days from the date
27 of service if the notice is given on or after April 1 and
28 before September 1, and 30 days if given on or after
29 September 1 and before April 1. However, only one notice of
30 overdue rent is required to be sent to you during any six-
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1 month period. If a second or additional violation occurs
2 within six months from the date of the first notice then
3 eviction proceedings may be immediately started against you.
4 You are entitled to purchase goods or services from a
5 seller of your choice and the [park] community owner shall
6 not restrict your right to do so.
7 If you desire to sell your [mobile] manufactured home,
8 the [mobile home park] manufactured home community owner may
9 not prevent the sale and may not claim any fee in connection
10 therewith, unless there exists a separate written fee
11 agreement. However, the [mobile home park] manufactured home
12 community owner may reserve the right to approve the
13 purchaser as a resident in the [mobile home park.]
14 manufactured home community.
15 Enforcement of the [Mobile Home Park] Manufactured Home
16 Community Rights Act is by the Attorney General of the
17 Commonwealth of Pennsylvania or the District Attorney of the
18 county in which the [mobile home park] manufactured home
19 community is located. You may also bring a private cause of
20 action. If your rights are violated you may contact the State
21 Bureau of Consumer Protection or your local District
22 Attorney."
23 Section 5. Underskirting and Tie-down Equipment.--A [mobile
24 home park] manufactured home community owner or operator may
25 designate the type of material or manner of installation for
26 underskirting, awnings, porches, fences or other additions and
27 alterations to the exterior of the [mobile] manufactured home
28 and tie-down equipment used in a [mobile] manufactured home
29 space in order to insure the safety and good appearance of the
30 [mobile home park] manufactured home community, but under no
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1 circumstances may a resident be required to purchase such
2 equipment from a supplier designated by the [park] community
3 owner or operator.
4 Section 6. Disclosure of Fees.--(a) All rent, fees, service
5 charges and assessments shall be fully disclosed in writing to a
6 resident prior to the owner or operator's acceptance of any
7 initial deposit, fee or rent. Failure to disclose such rent,
8 fees, service charges and assessments shall render them void and
9 unenforceable in the courts of the Commonwealth. Increases in
10 such rent, fees, service charges and assessments shall be
11 unenforceable until 30 days after notice thereof has been posted
12 in the [mobile home park] manufactured home community and mailed
13 to the resident. However, rent shall not be increased during the
14 term of the lease.
15 (b) Any rent increase to a senior resident may not exceed <--
16 the annual Social Security cost-of-living adjustment approved by
17 the Social Security Administration for that calendar year.
18 (B) (1) IF A MAJORITY OF THE MANUFACTURED HOME RESIDENTS OF <--
19 THE COMMUNITY BELIEVE THE RENT INCREASE IS EXCESSIVE THEY MAY,
20 PRIOR TO THE IMPLEMENTATION OF THE RENT INCREASE, REQUEST THE
21 RESIDENT ASSOCIATION'S GOVERNING BOARD TO SUBMIT A WRITTEN
22 REQUEST TO THE AMERICAN ARBITRATION ASSOCIATION FOR THE
23 APPOINTMENT OF AN ARBITRATOR. THE RESIDENT ASSOCIATION SHALL
24 CERTIFY ON A CONFIDENTIAL BASIS THE REQUEST AND SIGNATURES OF A
25 MAJORITY OF THE RESIDENTS WHO SHALL BE NOTIFIED OF THE COST
26 INVOLVED IN SEEKING BINDING ARBITRATION UNDER THIS SUBSECTION.
27 AFTER THE CERTIFICATION THE GOVERNING BODY OF THE RESIDENT
28 ASSOCIATION SHALL PASS A RESOLUTION SPECIFICALLY REQUESTING
29 ARBITRATION AND AGREEING TO BEAR THE APPROPRIATE COSTS. THE
30 ARBITRATOR SHALL CONDUCT BINDING ARBITRATION BETWEEN THE
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1 COMMUNITY OWNER OR OPERATOR AND THE MANUFACTURED HOME RESIDENTS.
2 (2) IF A COMMUNITY HAS NO RESIDENT ASSOCIATION, THE
3 MANUFACTURED HOME RESIDENTS SHALL GATHER, ON A CONFIDENTIAL
4 BASIS, THE SIGNATURES OF A MAJORITY OF THE RESIDENTS WITHIN THE
5 COMMUNITY WHO SHALL BE NOTIFIED OF THE COST INVOLVED IN SEEKING
6 BINDING ARBITRATION UNDER THIS SECTION AND AGREE TO BEAR THE
7 APPROPRIATE COSTS. AFTER GATHERING THE SIGNATURES OF A MAJORITY
8 OF THE MANUFACTURED HOME RESIDENTS, A WRITTEN PETITION SHALL BE
9 SUBMITTED TO THE BUREAU OF CONSUMER PROTECTION IN THE OFFICE OF
10 ATTORNEY GENERAL THAT INCLUDES THE NAME OF THE PERSON WHO WILL
11 ACT AS THE REPRESENTATIVE OF THE RESIDENTS AND A STATEMENT THAT
12 THEY DISPUTE THE PROPOSED LOT RENT INCREASE. THE BUREAU OF
13 CONSUMER PROTECTION SHALL, UPON RECEIPT OF THE WRITTEN PETITION,
14 CONTACT THE MANUFACTURED HOME COMMUNITY OWNER INFORMING HIM OF
15 THE PETITION AND REQUESTING THAT THE COMMUNITY OWNER SUPPLY A
16 COMPLETE LIST OF ALL RESIDENTS WITHIN THE MANUFACTURED HOME
17 COMMUNITY TO VERIFY THAT THE PETITION REPRESENTS A MAJORITY OF
18 THE RESIDENTS. IF THE COMMUNITY OWNER FAILS TO COMPLY WITH THE
19 REQUEST WITHIN 14 DAYS OF THE RECEIPT OF THE NOTICE, THE
20 PETITION SHALL BE DEEMED VALID AND THE COMMUNITY OWNER AND
21 REPRESENTATIVE OF THE RESIDENTS SHALL BE NOTIFIED. THE BUREAU OF
22 CONSUMER PROTECTION SHALL, AFTER REVIEW, NOTIFY BOTH THE
23 MANUFACTURED HOME COMMUNITY OWNER AND THE REPRESENTATIVE OF THE
24 RESIDENTS WHETHER A MAJORITY OF RESIDENTS HAS BEEN CERTIFIED.
25 UPON RECEIVING WRITTEN NOTICE FROM THE BUREAU OF CONSUMER
26 PROTECTION THAT THE PETITION CONTAINS THE NAMES OF A MAJORITY OF
27 RESIDENTS, THE RESIDENTS MAY SUBMIT A WRITTEN REQUEST FOR
28 BINDING ARBITRATION TO THE AMERICAN ARBITRATION ASSOCIATION. THE
29 ARBITRATOR SHALL CONDUCT BINDING ARBITRATION BETWEEN THE
30 COMMUNITY OWNER OR OPERATOR AND THE MANUFACTURED HOME RESIDENTS.
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1 (3) FOR PURPOSES OF DETERMINING THE MAJORITY UNDER THIS
2 SUBSECTION, THERE SHALL BE ONE VOTE PER MANUFACTURED HOME.
3 (C) THE MANUFACTURED HOME OWNER OR THE MANUFACTURED HOME
4 OWNER'S DESIGNEE SHALL SUBMIT TO THE BINDING ARBITRATION AND
5 SHALL COOPERATE WITH THE ARBITRATOR IN PROVIDING INFORMATION FOR
6 THE SOLE PURPOSE OF DECIDING THE ISSUE OF WHETHER THE INCREASE
7 IN RENT IS EXCESSIVE. INFORMATION REGARDING THE RIGHT TO BINDING
8 ARBITRATION SHALL BE PROVIDED TO THE MANUFACTURED HOME COMMUNITY
9 RESIDENT UPON SIGNING A GROUND LEASE.
10 (D) THE ARBITRATOR SHALL PROMPTLY HEAR THE DISPUTE AND
11 RENDER A DECISION BASED ON THE EXCESSIVE RENT INCREASE STANDARD.
12 FOR PURPOSES OF DETERMINING A REASONABLE RETURN ON THE
13 MANUFACTURED HOME COMMUNITY OWNER'S INVESTMENT OR EQUITY, THE
14 ARBITRATOR SHALL PERFORM A RISK ANALYSIS AND CONSIDER
15 ALTERNATIVE AND COMPARATIVE INVESTMENTS.
16 (E) THE COSTS AND EXPENSES OF THE ARBITRATOR SHALL BE BORNE
17 EQUALLY BY THE MANUFACTURED HOME COMMUNITY OWNER AND THE
18 MANUFACTURED HOME RESIDENTS.
19 (F) THE RENTAL INCREASE SHALL NOT TAKE EFFECT UNTIL THE
20 CONCLUSION OF THE ARBITRATION, PENDING ITS OUTCOME.
21 (G) A RENT INCREASE MAY NOT GO INTO EFFECT UNTIL THE EARLIER
22 OF ONE OF THE FOLLOWING:
23 (1) COMPLETION OF THE BINDING ARBITRATION PROCESS.
24 (2) ONE HUNDRED TWENTY DAYS AFTER PROVISION OF THE WRITTEN
25 NOTICE REQUIRED UNDER THIS SECTION.
26 (H) FOR THE PURPOSES OF THIS SECTION, THE TERM "EXCESSIVE
27 RENT INCREASE" SHALL MEAN AN INCREASE WHICH IS UNREASONABLY
28 BASED ON THE MANUFACTURED COMMUNITY HOME OWNER'S OR OPERATOR'S
29 TOTAL EXPENSES, INCLUDING DEBT SERVICE, TAXES AND A REASONABLE
30 RETURN ON THE OWNER'S INVESTMENT OR EQUITY IN THE PARK, IF THE
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1 DEBT SERVICE IS DIRECTLY RELATED TO ACQUISITION OF THE
2 MANUFACTURED COMMUNITY. DEBT SERVICE USED TO OR OTHERWISE
3 EMPLOYED FOR PURPOSES OTHER THAN THAT WHICH IS DIRECTLY RELATED
4 TO THE ACQUISITION OR CAPITAL MANAGEMENT OF THE MANUFACTURED
5 HOME COMMUNITY SHALL BE EXCLUDED. THE ARBITRATOR MAY PERFORM AN
6 ANALYSIS AS TO THE MANUFACTURED COMMUNITY OWNER'S NEED FOR RENT
7 INCREASE AND SERVICES PROVIDED TO THE PARK. THE ANALYSIS SHALL
8 BE PERFORMED FOR A PERIOD OF NOT LESS THAN THREE YEARS PRIOR TO
9 THE APPLICATION FOR RENTAL INCREASE. ANY DEBT SERVICE INCURRED
10 USING THE MANUFACTURED COMMUNITY AS COLLATERAL OR OTHER SECURITY
11 FOR INVESTMENT, ENTERPRISES, BUSINESSES OR SIMILAR VENTURES
12 SEPARATE AND APART FROM THE MANUFACTURED HOME COMMUNITY SHALL
13 NOT BE INCLUDED IN THE ANALYSIS.
14 Section 7. Appliance Installation Fees.--No [mobile home
15 park] manufactured home community owner or operator may restrict
16 the making of any interior improvements in a [mobile]
17 manufactured home so long as such improvements are in compliance
18 with applicable building codes and other provisions of law; nor
19 may he restrict the installation, service or maintenance of an
20 electric or gas appliance in a [mobile] manufactured home or
21 charge any fee for such installation unless the fee reflects the
22 actual cost to the [mobile home park] manufactured home
23 community owner or operator of such installation or its use.
24 Section 9. Installation and Removal Fees.--Any fee charged
25 for the installation or removal of a [mobile home in a mobile
26 home] manufactured home in a manufactured home space shall not
27 exceed the actual cost to the [mobile home park] manufactured
28 home community owner or operator for providing such service.
29 Such fees shall be refundable to the resident at the time of
30 removal in the event that the owner or operator acts to recover
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1 possession of said space for reasons other than nonpayment of
2 rent or breach of a condition of the lease within one year of
3 the initial installation of such [mobile] manufactured home.
4 Failure to refund such fees as provided shall entitle the tenant
5 to recover treble their amount plus court costs and reasonable
6 attorney fees.
7 Imposition of this type of entrance fee shall not bar the
8 [mobile home park] manufactured home community owner or operator
9 from requiring a reasonable security deposit in accordance with
10 the act of April 6, 1951 (P.L.69, No.20), known as "The Landlord
11 and Tenant Act of 1951."
12 Section 10. Other Fees.--In accordance with a resident's
13 right to invite to his dwelling unit such social and business
14 visitors as he wishes, no fee may be charged for overnight
15 visitors or guests occupying a resident's [mobile] manufactured
16 home. However, if such overnight visitors or guests so
17 frequently remain overnight for residential purposes so as to
18 increase the number of persons normally living in said unit, the
19 owner or operator of a [mobile home park] manufactured home
20 community may revise the rent due to conform to the rent paid by
21 other residents with a like number of members in their
22 household.
23 Section 11. Sale of [Mobile] Manufactured Homes.--Any rule,
24 regulation or condition of a lease purporting to prevent the
25 sale of a [mobile] manufactured home belonging to a resident
26 shall be void and unenforceable in the courts of the
27 Commonwealth. The [mobile home park] manufactured home community
28 owner or operator may reserve the right to approve the purchaser
29 of said [mobile] manufactured home as a resident, but such
30 approval may not be unreasonably withheld. Any claim for a fee
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1 or commission in connection with the sale of such [mobile]
2 manufactured home shall be void and unenforceable unless the
3 claimant shall in fact have acted as a bona fide licensed
4 [mobile] manufactured home sales agent for the [mobile]
5 manufactured home owner pursuant to a separate written fee
6 agreement.
7 Section 12. Waiver of Rights.--The rights and duties of
8 [mobile home park] manufactured home community owners and
9 operators and the [mobile] manufactured home residents may not
10 be waived by any provisions of a written or oral agreement. Any
11 such agreement attempting to limit these rights shall be void
12 and unenforceable in the courts of the Commonwealth.
13 Section 13. Damages.--Any [mobile home park] manufactured
14 home community owner, operator or resident aggrieved by a
15 violation of their rights under this act may institute a private
16 cause of action to recover damages, or for treble damages where
17 so provided in this act, or for restitution in any appropriate
18 court of initial jurisdiction within the Commonwealth.
19 Section 16. Retaliatory Evictions.--Any action by a [mobile
20 home park] manufactured home community owner or operator to
21 recover possession of real property from a [mobile home park]
22 manufactured home community resident or to change the lease
23 within six months of a resident's assertion of his rights under
24 this act or any other legal right shall raise a presumption that
25 such action constitutes a retaliatory and unlawful eviction by
26 the owner or operator and is in violation of this act. Such a
27 presumption may be rebutted by competent evidence presented in
28 any appropriate court of initial jurisdiction within the
29 Commonwealth.
30 Section 4 2. This act shall take effect in 60 days. <--
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