PRIOR PRINTER'S NO. 914                       PRINTER'S NO. 2174

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 851 Session of 1993


        INTRODUCED BY D. R. WRIGHT, DeWEESE, VEON, ROONEY, DeLUCA,
           BELFANTI, TRELLO, ARGALL, PISTELLA, VAN HORNE AND STABACK,
           MARCH 22, 1993

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 16, 1993

                                     AN ACT

     1  Providing for dispute reconciliation in manufactured housing
     2     communities; establishing the Manufactured Housing Community
     3     Commission and providing for its powers and duties;
     4     conferring powers and duties on the Department of Community
     5     Affairs; imposing fees on manufacturing housing communities;
     6     and making an appropriation. ESTABLISHING THE MANUFACTURED     <--
     7     HOUSING FUND; AND IMPOSING DUTIES ON THE LEGISLATIVE
     8     REFERENCE BUREAU.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11  Section 1.  Short title.
    12     This act shall be known and may be cited as the Manufactured
    13  Housing Community Commission Act.
    14  Section 2.  Legislative findings and purposes.
    15     The General Assembly finds and declares as follows:
    16         (1)  The relationship between manufactured housing
    17     communities and residents of the communities requires
    18     conciliation and mediation.
    19         (2)  Because of the unique nature of manufactured housing
    20     and because disputes between residents and communities arise,

     1     it is necessary to create a manufactured housing community
     2     commission and designate an executive director to attempt to
     3     resolve such disputes.
     4  Section 3.  Definitions.
     5     The following words and phrases when used in this act shall
     6  have the meanings given to them in this section unless the
     7  context clearly indicates otherwise:
     8     "Bureau."  The Bureau of Consumer Protection in the Office of
     9  Attorney General.
    10     "Commission."  The Manufactured Housing Community Commission
    11  established in section 4.
    12     "Department."  The Department of Community Affairs of the
    13  Commonwealth.
    14     "Executive director."  The executive director of the
    15  Manufactured Housing Community Commission.
    16     "FUND."  THE MANUFACTURED HOUSING FUND ESTABLISHED IN SECTION  <--
    17  11.
    18     "Manufactured home."  A structure, transportable in one or
    19  more sections, which, meets all of the following:
    20         (1)  Is built on a permanent chassis.
    21         (2)  Is designed to be used as a dwelling, with or
    22     without a permanent foundation, when connected to the
    23     required utilities.
    24         (3)  Either:
    25             (i)  is, in the traveling mode, eight body feet or
    26         more in width and 40 body feet or more in length and is,
    27         when erected on site, is 320 or more square feet; or
    28             (ii)  has on file a certification required by the
    29         United States Department of Housing and Urban Development
    30         and complies with the act of November 17, 1982 (P.L.676,
    19930H0851B2174                  - 2 -

     1         No.192), known as the Manufactured Housing Construction
     2         and Safety Standards Authorization Act.
     3  The term includes the plumbing, heating, air conditioning and
     4  electrical systems contained in the structure.
     5     "Manufactured housing community."  A site, lot, field or
     6  tract of land upon which ten or more manufactured homes are or
     7  are intended to be located, regardless of whether or not a
     8  charge is made for the accommodation.
     9     "Manufactured housing resident."  An owner of a manufactured
    10  home who leases or rents a manufactured housing site. The term
    11  does not include a person who rents or leases a manufactured
    12  home.
    13     "Manufactured housing site."  A plot of ground within a
    14  manufactured housing community designed for the accommodation of
    15  one manufactured home.
    16  Section 4.  Commission.
    17     (a)  Establishment.--There is created the Manufactured
    18  Housing Community Commission as a departmental administrative
    19  board in the department. The commission shall consist of ten
    20  members, one of whom shall be the director of the bureau, and
    21  one of whom shall be the Secretary of Community Affairs. The
    22  remaining members must be residents of this Commonwealth for a
    23  five-year period immediately prior to appointment. Four members
    24  must be professional members who are owners, operators or
    25  managers of manufactured housing communities and who have been
    26  actively engaged in that business for a period of at least five
    27  years immediately preceding the appointment. Four members must
    28  be public members who are owners of manufactured homes and who
    29  have been residents of manufactured housing communities for a
    30  period of at least five years immediately preceding the
    19930H0851B2174                  - 3 -

     1  appointment. No two professional or public members may be from
     2  the same community or from communities under common control. The
     3  commission shall be appointed by the Governor subject to the
     4  consent of a majority of the members elected to the Senate. One
     5  public and one professional member shall be recommended by the
     6  President pro tempore of the Senate, one professional and one
     7  public member shall be recommended by the Minority Leader of the
     8  Senate, one professional and one public member shall be
     9  recommended by the Speaker of the House of Representatives and
    10  one professional and one public member shall be recommended by
    11  the Minority Leader of the House of Representatives.
    12     (b)  Term of office.--The professional and public members
    13  shall serve four-year terms except as provided in subsection
    14  (c).
    15     (c)  Initial appointments.--Within 90 days of the effective
    16  date of this act, from the recommendations submitted under
    17  subsection (a), the Governor shall nominate one professional and
    18  one public member to serve four-year terms, one professional and
    19  one public member to serve three-year terms, one professional
    20  and one public member to serve two-year terms and one
    21  professional and one public member to serve one-year terms.
    22     (d)  Continuation in office.--Each professional and public
    23  member shall continue in office until a successor is appointed
    24  and qualified but not longer than six months after the
    25  expiration of the term. If a member dies, resigns or becomes
    26  disqualified during the term of office, a successor shall be
    27  appointed in the same way and with the same qualifications as
    28  set forth in this section and shall hold office for the
    29  unexpired portion of the term.
    30     (e)  Limit on terms.--No professional or public member shall
    19930H0851B2174                  - 4 -

     1  be eligible for appointment to serve more than two consecutive
     2  four-year terms.
     3     (f)  Forfeiture of membership.--A professional or public
     4  member who fails to attend three consecutive meetings shall
     5  forfeit membership unless the chairperson, upon written request
     6  from the member, finds that the member should be excused from a
     7  meeting because of illness or the death of a family member.
     8     (g)  Compensation.--Each professional and public member shall
     9  receive per diem compensation at the rate of $60 when actually
    10  attending to the work of the commission. Members shall also
    11  receive reasonable travel, hotel and other necessary expenses
    12  incurred in the performance of their duties in accordance with
    13  management directives on travel and subsistence.
    14     (h)  Quorum.--A majority of the members of the commission
    15  constitutes a quorum. A member may not be counted as part of a
    16  quorum or vote on any issue unless the member is physically in
    17  attendance at the meeting.
    18     (i)  Meeting.--The commission shall meet at least four times
    19  a year in Harrisburg. It may meet more often either in
    20  Harrisburg or at other locations in this Commonwealth.
    21     (j)  Operating procedures.--The commission shall meet within
    22  30 days after the appointment of its initial members and set up
    23  operating procedures and forms for carrying out the purposes of
    24  the act. It shall be the responsibility of the commission to
    25  circulate these forms and educate the public on the requirements
    26  of this act.
    27     (k)  Election of officers.--The commission shall elect
    28  annually from its membership a chairperson, a vice chairperson
    29  and a secretary.
    30  Section 5.  Powers and duties of commission.
    19930H0851B2174                  - 5 -

     1     The commission has the following powers and duties:
     2         (1)  Appoint the executive director and supervise the
     3     executive director's responsibilities.
     4         (2)  Ensure that manufactured housing communities defray
     5     the expenses of the commission and biennially renew payment
     6     of fees under section 10.
     7         (3)  Ensure that the executive director investigates,
     8     complaints by the bureau, the department or any other person.
     9         (4)  Administer and enforce and regulations promulgated
    10     under this act.
    11         (5)  Keep records of all proceedings in connection with
    12     the resolution of disputes under this act.
    13         (6)  Promulgate regulations to implement this act.
    14         (7)  Adopt forms.
    15  Section 6.  Executive director.
    16     (a)  Establishment.--The executive director must be an
    17  attorney admitted to the bar of the Supreme Court of
    18  Pennsylvania. The executive director may not engage in any
    19  business, vocation or other employment involving manufactured
    20  housing; be a manufactured housing resident; have other
    21  interests involving manufactured housing; be a representative of
    22  a manufactured housing community or manufactured housing
    23  resident; or have any other interest inconsistent with official
    24  responsibilities.
    25     (b)  Appointment.--The position of executive director shall
    26  be a full-time position. The executive director shall be
    27  appointed by the commission under section 5(1).
    28     (c)  Compensation.--The compensation of the executive
    29  director shall be fixed by the commission.
    30     (d)  Powers and duties.--The executive director has the power
    19930H0851B2174                  - 6 -

     1  and duty to investigate and resolve complaints and disputes
     2  among manufactured housing residents and owners or operators of
     3  manufactured housing communities concerning the following:
     4         (1)  Disputes over interpretation of the substantive
     5     statutory provisions contained in the act of November 24,
     6     1976 (P.L.1176, No.261), known as the Mobile Home Park Rights
     7     Act.
     8         (2)  Disputes over the approval of a prospective
     9     purchaser of an existing manufactured home owned by a
    10     manufactured housing resident if the purchaser desires to
    11     have the home remain in the community.
    12         (3)  The reasonableness of rules and regulations adopted
    13     by the manufactured housing community under the Mobile Home
    14     Park Rights Act.
    15         (4)  Disputes over whether or not manufactured housing
    16     residents or manufactured housing communities are complying
    17     with this act or the Mobile Home Park Rights Act.
    18     (e)  Staff.--The executive director shall work closely and
    19  cooperatively with the bureau and the department. In addition to
    20  staff support from one or both of these agencies, the commission
    21  may appoint attorneys as assistants and additional clerical,
    22  technical and professional staff as appropriate and may contract
    23  for additional services necessary to implement this act. The
    24  compensation of assistants and clerical, technical and
    25  professional staff shall be set by the commission. An assistant
    26  or other staff employee may not engage in any business, vocation
    27  or other employment involving manufactured housing; be a
    28  manufactured housing resident in a manufactured housing
    29  community; or have other interests involving manufactured
    30  housing inconsistent with official responsibilities.
    19930H0851B2174                  - 7 -

     1  Section 7.  Disputes.
     2     (a)  Standing.--
     3         (1)  A manufactured housing community  which is aggrieved
     4     by an action of a manufactured housing resident alleged to be
     5     in violation of this act or the act of November 24, 1976
     6     (P.L.1176, No.261), known as the Mobile Home Park Rights Act,
     7     or regulations promulgated under either act may file an
     8     administrative complaint in accordance with this section.
     9         (2)  A manufactured housing resident who is aggrieved by
    10     an action of a manufactured housing community or a
    11     manufactured housing resident alleged to be in violation of
    12     this act or the Mobile Home Park Rights Act, or regulations
    13     promulgated under either act may file an administrative
    14     complaint in accordance with this section.
    15     (b)  Informal resolution.--Prior to filing a complaint under
    16  subsection (c), a prospective complainant must notify the
    17  prospective respondent of the problem in writing. Proof of
    18  receipt is required. If the problem is not resolved within 30
    19  days of receipt of the notice, an action may proceed under
    20  subsection (c).
    21     (c)  Complaint.--A complainant may file a complaint on a form
    22  prescribed by the commission. The complaint must be accompanied
    23  by a $25 filing fee. The complaint shall contain all of the
    24  following information:
    25         (1)  The action of the respondent which is the subject of
    26     the complaint.
    27         (2)  The notarized signature of the complainant.
    28         (3)  The address and telephone number of the complainant.
    29         (4)  The name, address and telephone number of the
    30     respondent.
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     1         (5)  A copy of the notice under subsection (b), with
     2     proof of receipt.
     3     (d)  Response.--On receipt of the complaint, the executive
     4  director shall review it for completeness and to determine
     5  whether or not the dispute is subject to this act. If it is
     6  determined that the dispute is subject to this act, the
     7  executive director shall send to the respondent, by certified
     8  mail, return receipt requested, a copy of the complaint and a
     9  notice that a response is required within 30 days showing cause,
    10  if any, why the complaint should be dismissed. If the executive
    11  director determines that the dispute is not subject to this act,
    12  the executive director shall dismiss the complaint.
    13     (e)  Resolution.--After reviewing the complaint and the
    14  response, the executive director shall within 30 days of receipt
    15  of the response, mediate the dispute to the satisfaction of the
    16  complainant and the respondent. If the dispute is not resolved,
    17  the executive director shall make a recommendation to the
    18  commission.
    19     (f)  Recommendation of executive director.--
    20         (1)  The executive director may determine that there is
    21     no factual basis to support the complaint.
    22         (2)  If a complaint is substantiated, the executive
    23     director may recommend to the commission as to how to resolve
    24     the dispute. The executive director shall issue an order
    25     setting forth the appropriate action to be taken.
    26     (g)  Decision by commission.--A decision by the executive
    27  director under subsection (f) shall be reviewed by the
    28  commission. The commission may, and upon motion of either party,
    29  shall, order a hearing. This subsection is subject to 2 Pa.C.S.
    30  Ch. 5 Subch. A (relating to practice and procedure of
    19930H0851B2174                  - 9 -

     1  Commonwealth agencies) and Ch. 7 Subch. A (relating to judicial
     2  review of Commonwealth agency action).
     3     (h)  Costs.--If the complainant prevails, the complainant may
     4  recover the filing fee under subsection (c).
     5  Section 8.  Public access.
     6     There shall be a toll-free telephone number established by
     7  the commission for public use regarding inquiries on the
     8  services available from the commission.
     9  Section 9.  Resident notification.
    10     Any manufactured housing community, within 30 days of the
    11  effective date of this section, shall make available to its
    12  manufactured housing residents a copy of this act and shall
    13  maintain a copy of this act at a convenient location within the
    14  manufactured housing community. A new manufactured housing
    15  resident shall be provided with a copy of this act by the
    16  manufactured housing community at the time the residence begins.
    17  Section 10.  Fees.
    18     (a)  Imposition and increase.--All fees established under
    19  this act shall be fixed by the commission by regulation. The
    20  fees for each manufactured housing community shall be $1 per
    21  site, with a minimum fee of $50 per manufactured housing
    22  community and a maximum of $300 per manufactured housing
    23  community. If the revenues raised by fees imposed under this act
    24  are not sufficient to meet expenditures over a two-year period,
    25  the commission shall increase those fees so that the projected
    26  revenues will meet or exceed projected expenditures.
    27     (b)  Additional increases.--If the department determines that
    28  the fees established by the commission under subsection (a) are
    29  inadequate to meet the minimum enforcement efforts required by
    30  this act, then the department, after consultation with the
    19930H0851B2174                 - 10 -

     1  commission shall increase the fees by regulation in an amount to
     2  insure that adequate revenues are raised to meet the required
     3  enforcement effort.
     4     (c)  Enforcement of fees.--If a manufactured housing
     5  community does not pay a fee under this section, the commission
     6  shall send by certified mail an order to pay the fee within 30
     7  days of the date of the order. Upon failure to respond to the
     8  order, the commission shall order the manufactured housing
     9  residents of that community to pay their rent directly to the
    10  commission. Rents so paid shall be placed in a separate escrow
    11  account. Within 30 days of the date when fees required by this
    12  act are paid, the money in escrow shall be released and paid
    13  over to the manufactured housing community.
    14  Section 11.  Appropriation.                                       <--
    15     The sum of $500,000, or as much thereof as may be necessary,
    16  is hereby appropriated to the Department of Community Affairs
    17  for the payment of costs of the operation of the Manufactured
    18  Housing Community Commission and for other general costs of the
    19  commission relating to this act. This appropriation shall be
    20  repaid by the commission to the General Fund within one year of
    21  the effective date of this section.
    22  SECTION 11.  FUND.                                                <--
    23     (A)  ESTABLISHMENT.--THE MANUFACTURED HOUSING FUND IS
    24  ESTABLISHED AS A SPECIAL FUND IN THE STATE TREASURY.
    25     (B)  SOURCE.--THE SOURCE OF THE FUND SHALL BE FEES UNDER
    26  SECTIONS 7(C) AND 10.
    27     (C)  ADMINISTRATION.--THE COMMISSION SHALL ADMINISTER THE
    28  FUND TO IMPLEMENT THIS ACT. WHEN THE COMMISSION DETERMINES THAT
    29  THE FUND CONTAINS SUFFICIENT MONEY TO BEGIN COMPLETE
    30  IMPLEMENTATION OF THIS ACT, IT SHALL TRANSMIT NOTICE OF THAT
    19930H0851B2174                 - 11 -

     1  FACT TO THE LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION IN THE
     2  PENNSYLVANIA BULLETIN.
     3  Section 12.  Effective date.
     4     This act shall take effect as follows:
     5         (1)  Sections 7 through 10 9 of this act shall take        <--
     6     effect in 240 days. UPON PUBLICATION OF THE NOTICE UNDER       <--
     7     SECTION 11(C).
     8         (2)  The remainder of this act shall take effect in 60
     9     days.














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