PRINTER'S NO. 1775
No. 1513 Session of 1991
INTRODUCED BY BARLEY, BATTISTO, HARPER, ALLEN, ANGSTADT, ARGALL,
ARMSTRONG, ARNOLD, BELARDI, BILLOW, BLACK, BUNT, BUSH,
CALTAGIRONE, CAPPABIANCA, CARONE, CORNELL, CIVERA, CLARK,
CLYMER, CORRIGAN, DEMPSEY, DERMODY, FLEAGLE, FLICK, FOX,
FREIND, GAMBLE, GERLACH, GLADECK, GODSHALL, GRUPPO, HAGARTY,
HALUSKA, HARLEY, HERMAN, JOHNSON, KASUNIC, KING, LaGROTTA,
LAUGHLIN, LAWLESS, LEE, LEH, LINTON, LLOYD, MUNDY, NAHILL,
NAILOR, NYCE, OLASZ, OLIVER, PERZEL, PETRONE, PHILLIPS,
PICCOLA, REBER, RICHARDSON, ROBINSON, RUDY, SAURMAN, SCHULER,
SERAFINI, D. W. SNYDER, STRITTMATTER, STURLA, SURRA,
E. Z. TAYLOR, J. TAYLOR, THOMAS, TRELLO, TULLI, ULIANA,
VAN HORNE, VEON, VROON, WOGAN AND M. N. WRIGHT, JUNE 3, 1991
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 3, 1991
AN ACT
1 Providing for the establishment of a Manufactured Housing
2 Ombudsman and fixing the powers and duties of the ombudsman;
3 establishing the Manufactured Housing Hearing Board and
4 providing for its membership, powers and duties; establishing
5 a restricted account; and making an appropriation.
6 TABLE OF CONTENTS
7 Section 1. Short title.
8 Section 2. Legislative purpose.
9 Section 3. Definitions.
10 Section 4. Manufactured Housing Hearing Board.
11 Section 5. Manufactured Housing Ombudsman.
12 Section 6. Informal disposition before ombudsman.
13 Section 7. Petition for hearing.
14 Section 8. Hearing procedure before board.
1 Section 9. Appeal.
2 Section 10. Public access.
3 Section 11. Resident notification.
4 Section 12. Restricted account.
5 Section 13. Construction of act.
6 Section 14. Appropriation.
7 Section 15. Effective date.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the Manufactured
12 Housing Ombudsman and Hearing Board Act.
13 Section 2. Legislative purpose.
14 An increasing number of citizens of this Commonwealth live in
15 manufactured homes, and many of these citizens reside in
16 manufactured housing communities. Because of the growing number
17 of problems and complaints dealing with various aspects of
18 living in manufactured housing communities and because of the
19 unique nature of manufactured housing and the difficulty in
20 relocating manufactured housing, it is necessary to designate a
21 Manufactured Housing Ombudsman and Manufactured Housing Hearing
22 Board to resolve the problems and complaints involving residents
23 and owners of manufactured housing communities. In addition, the
24 creation of the Manufactured Housing Ombudsman will assist in a
25 more equitable and expeditious implementation of the act of
26 November 24, 1976 (P.L.1176, No.261), known as the Mobile Home
27 Park Rights Act.
28 Section 3. Definitions.
29 The following words and phrases when used in this act shall
30 have the meanings given to them in this section unless the
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1 context clearly indicates otherwise:
2 "Board." The Manufactured Housing Hearing Board established
3 under section 4.
4 "Comparable manufactured housing community." A manufactured
5 housing community with similar facilities, services, amenities
6 and management.
7 "Manufactured housing." A transportable, single-family
8 dwelling unit which contains plumbing, heating and/or cooling
9 and electrical systems intended for permanent occupancy, is
10 constructed as a single unit or as two or more units designed to
11 be joined into one integral unit, is built on a permanent
12 chassis and is designed to be used as a dwelling with or without
13 a permanent foundation when connected to the required utilities.
14 "Manufactured housing community." A site, lot, field or
15 tract of land, privately or publicly owned or operated, upon
16 which three or more manufactured homes, occupied for dwelling or
17 sleeping purposes, are or are intended to be located, regardless
18 of whether or not a charge is made for such accommodation.
19 "Manufactured housing resident." An owner of a manufactured
20 home who leases or rents space in a manufactured housing
21 community. The term does not include a person who rents or
22 leases a manufactured home.
23 "Ombudsman." The Manufactured Housing Ombudsman established
24 under section 5.
25 "Respondent." The person against whom the original complaint
26 is directed.
27 "Secretary." The Secretary of Community Affairs of the
28 Commonwealth.
29 "Unreasonable." Not fair, proper, just, moderate or suitable
30 under the circumstances or fit or appropriate to the end in
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1 view.
2 Section 4. Manufactured Housing Hearing Board.
3 (a) Establishment.--The Manufactured Housing Hearing Board
4 is established as an independent quasi-judicial agency.
5 (b) Members.--The board shall consist of five members. One
6 member shall be appointed by the President pro tempore of the
7 Senate, one member shall be appointed by the Minority Leader of
8 the Senate, one member shall be appointed by the Speaker of the
9 House of Representatives and one member shall be appointed by
10 the Minority Leader of the House of Representatives. The fifth
11 member shall be the secretary, or his designee.
12 (c) Chairman.--The board shall designate one member of the
13 board to serve as chairman.
14 (d) Terms.--A member of the board shall serve for a term of
15 five years or until a successor is appointed and qualified
16 within six months of the expiration of the original term. Board
17 members may be reappointed to successive terms. No board member,
18 however, shall be a manufactured home manufacturer or dealer,
19 own or manage a manufactured housing community, be an agent for
20 same or have a financial interest in or in any way be associated
21 with a manufacturer of manufactured housing or an owner of a
22 manufactured housing community.
23 (e) Compensation.--Board members shall receive an annual
24 salary of $14,000. The chairman of the board shall receive an
25 annual salary of $15,000. In addition, all members shall be
26 reimbursed for actual and reasonable expenses for travel,
27 lodging and meals incurred in the performance of their official
28 duties.
29 (f) Meetings.--The board shall meet at least four times a
30 year or as often as is necessary to implement the provisions of
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1 this act, and the meetings shall be rotated between Pittsburgh,
2 Philadelphia, Scranton and Harrisburg as feasible to facilitate
3 the attendance of those having appeals pending before the board.
4 Section 5. Manufactured Housing Ombudsman.
5 (a) Establishment.--There is hereby established, under the
6 Governor's Office, the Manufactured Housing Ombudsman to
7 investigate and resolve complaints and disputes involving
8 manufactured housing.
9 (b) Appointment.--The position of ombudsman shall be a full-
10 time position. The ombudsman shall be appointed by the board.
11 (c) Compensation.--The compensation of the ombudsman shall
12 be fixed by the board.
13 (d) Powers and duties.--The ombudsman shall have the
14 following powers and duties:
15 (1) (i) To investigate and resolve complaints related
16 to manufactured housing concerning the following:
17 (A) Resident disputes with owners and managers
18 of manufactured housing communities in general.
19 (B) Resident disputes with owners and managers
20 of manufactured housing communities over the
21 interpretation of provisions contained in the act of
22 November 24, 1976 (P.L.1176, No.261), known as the
23 Mobile Home Park Rights Act.
24 (C) Resident disputes with owners and managers
25 of manufactured housing communities over the approval
26 of a prospective purchaser of an existing
27 manufactured home owned by a resident.
28 (D) The reasonableness of rules and regulations
29 promulgated by manufactured housing community owners
30 pursuant to the Mobile Home Park Rights Act.
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1 (E) Environmental concerns, including, but not
2 limited to, the provision of safe drinking water and
3 proper sewage disposal.
4 (F) Interpretation of provisions of lease
5 agreements.
6 (G) The reasonableness of proposed rent
7 increases.
8 (H) The reasonableness of pending eviction
9 procedures.
10 (ii) The decision of the ombudsman shall be final
11 and binding on all parties unless appealed to the board
12 as provided for in section 7. Once an investigation has
13 been initiated by the ombudsman concerning a complaint
14 filed, any pending proposed rent increase, rule or
15 regulation or eviction proceeding shall be stayed pending
16 a final decision by the ombudsman. The only exception to
17 this automatic stay shall be a proposed annual rent
18 increase that does not exceed the annual increase in the
19 cost of living, as determined by the United States
20 Department of Labor for the preceding calendar year. A
21 resident in such case, however, shall not be precluded
22 from filing a complaint with the ombudsman on the
23 reasonableness of the proposed increase. If, after an
24 investigation, the increase is determined to be
25 unreasonable, the owner of the manufactured housing
26 community shall, pending a final decision of the
27 ombudsman, refund to each resident affected the increased
28 amount paid which was determined to be unreasonable, or
29 credit the resident with an equal amount of the rent due,
30 in the month following the decision of the ombudsman or,
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1 if appealed, in the month following a decision by the
2 board. If the ombudsman determines that an existing or
3 proposed rule or regulation promulgated by the owner or
4 manager of a manufactured housing community is
5 unreasonable, the rule or regulation shall be rescinded.
6 If the ombudsman has determined that a proposed rent
7 increase is unreasonable, the rent increase shall not go
8 into effect. Copies of all decisions of the ombudsman
9 shall be forwarded to the Office of Attorney General.
10 (iii) When making a determination as to the
11 reasonableness of a proposed rent increase, the ombudsman
12 may consider the following:
13 (A) Rents charged by comparable manufactured
14 housing communities within the same competitive
15 geographic area.
16 (B) Recent changes in the Consumer Price Index.
17 (C) Rate of inflation since the last rent
18 increase.
19 (D) Historic trend of prior rent increases for
20 that manufactured housing community.
21 (E) Historic trend of prior rent increases for
22 comparable manufactured housing communities within
23 the same competitive geographic area.
24 (F) Financial data relative to any change in
25 ownership of the manufactured housing community.
26 (G) Current and prior financial statements of
27 the owners of the manufactured housing community,
28 including, but not limited to, annual operating
29 costs, including taxes paid.
30 (H) Actual cost data relative to improvements
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1 made or to be made to the manufactured housing
2 community when it is used as a justification for the
3 proposed rent increase.
4 (I) Historical evidence of improvements made to
5 that manufactured housing community previously when
6 rents were increased.
7 (iv) In addition to other factors, the ombudsman may
8 determine a proposed rent increase to be unreasonable if
9 the proposed increase results in the rent exceeding
10 market rent or the rent that would result from market
11 forces when both parties have equal bargaining position.
12 (2) To initiate any legal proceeding before any Federal,
13 State or county court necessary to protect the rights of
14 manufactured housing residents and to represent the residents
15 before the court in any such proceeding.
16 (3) To initiate any proceeding before any Federal, State
17 or local agency necessary to protect the rights of
18 manufactured housing residents and to represent the residents
19 in any such proceedings.
20 (4) (i) To educate the public as to what they should be
21 aware of before purchasing manufactured housing or
22 leasing space in a manufactured housing community. This
23 shall include, but shall not be limited to, the
24 preparation of a brief statement titled "ALERT TO
25 PROSPECTIVE PURCHASER OF MANUFACTURED HOUSING OR LESSEE
26 IN MANUFACTURED HOUSING COMMUNITY." Following the title
27 shall appear a brief summary of the key facts of which
28 anyone contemplating purchasing a manufactured home or
29 leasing space in a manufactured housing community should
30 be aware. The notice, including the title, shall be in
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1 ten-point boldface print. A copy of the statement shall
2 be provided by:
3 (A) Manufactured housing dealers or others
4 licensed in this Commonwealth under the act of
5 December 22, 1983 (P.L.306, No.84), known as the
6 Board of Vehicles Act, to a prospective purchaser of
7 a new manufactured home at least 48 hours before the
8 purchaser signs an agreement of sale.
9 (B) Anyone licensed under the Board of Vehicles
10 Act, to a prospective purchaser of a used
11 manufactured home at least 48 hours before the
12 purchaser signs an agreement of sale.
13 (C) Manufactured housing community owners or
14 managers, to a prospective lessee at least 48 hours
15 before the lessee signs a lease for space in a
16 manufactured housing community operated in this
17 Commonwealth.
18 (ii) The ombudsman shall, within 90 days of the
19 effective date of this act, forward a copy of the
20 statement under subparagraph (i) to anyone licensed to
21 sell manufactured housing in this Commonwealth, as well
22 as to all owners or managers of manufactured housing
23 communities, along with a copy of this act and a notice
24 of their responsibilities pursuant to this section.
25 Failure to receive a copy of this act and notification
26 from the ombudsman, as required by this section, shall
27 not relieve anyone of his responsibilities under this
28 section.
29 (5) To educate the public concerning the powers and
30 duties of the ombudsman and the services available.
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1 (e) Staff.--The ombudsman shall work closely and
2 cooperatively with the Office of Attorney General, and, in
3 addition to staff support from the Office of General Counsel,
4 the Human Relations Commission and other appropriate State
5 agencies, including the Office of Attorney General, the board
6 may appoint attorneys as assistants and such additional
7 clerical, technical and professional staff as may be appropriate
8 and may contract for such additional services as are necessary
9 to implement the provisions of this act. The compensation of
10 assistants and clerical, technical and professional staff shall
11 be set by the board. An assistant or other staff employee shall
12 not, while serving in such position, engage in any business,
13 vocation or other employment involving manufactured housing or
14 have other interests involving manufactured housing inconsistent
15 with his official responsibilities.
16 Section 6. Informal disposition before ombudsman.
17 (a) General rule.--A person who rents or owns manufactured
18 housing which is located on land in a manufactured housing
19 community for which a ground rental fee is paid, or any owner or
20 manager of a manufactured housing community, may contact the
21 ombudsman to investigate his complaint.
22 (b) Complaint form.--The ombudsman shall prepare a
23 standardized complaint form to be used by an individual or group
24 of individuals filing a complaint. There shall be no charge to
25 file a complaint with the ombudsman. The form shall include, but
26 shall not be limited to:
27 (1) A list of the complaints.
28 (2) The notarized signature of the individual or
29 individuals filing the complaint.
30 (3) The address and telephone number of the individual
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1 or individuals filing the complaint.
2 (4) The name, address and telephone number of all
3 parties involved in the complaint.
4 (c) Response.--On receipt of the complaint form, the
5 ombudsman shall send to the named respondent, by certified mail,
6 a copy of the complaint, along with a notice that a response is
7 required showing cause, if any, why the complaint should be
8 dismissed.
9 (d) Review.--After reviewing the complaint and response, the
10 ombudsman or his staff shall promptly investigate the complaint,
11 including complaints involving proposed rent increases, and try
12 to mediate the dispute. The ombudsman shall render a decision on
13 all complaints filed within 30 days of receipt of the complaint.
14 (e) Decision of ombudsman.--
15 (1) The ombudsman, after the investigation of a
16 complaint, may determine that there is no factual basis to
17 support the complaint and shall so notify all parties.
18 (2) If a complaint is substantiated, the ombudsman may
19 make a recommendation, with respect to resolving the dispute,
20 to which all parties may voluntarily agree. If the complaint
21 involves a determination of the reasonableness of a proposed
22 rent increase and the ombudsman determines the proposed
23 increase to be unreasonable pursuant to section 5(d), the
24 ombudsman's recommendation may include a suggested rental
25 increase that the ombudsman determines would be reasonable.
26 (3) In the absence of the voluntary acceptance of the
27 recommendations of the ombudsman by all parties to resolve a
28 dispute when a complaint is substantiated, the ombudsman
29 shall issue an order setting forth the appropriate actions to
30 be taken by all parties to the dispute. This order shall have
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1 the effect of law, and the ombudsman may go to court to
2 enforce the order, provided the order is not overturned by
3 the board on appeal.
4 (f) Appeal to board.--If aggrieved by the decision of the
5 ombudsman, the individual or individuals filing the complaint,
6 or the respondent, may appeal the order of the ombudsman to the
7 board. In the case of a complaint involving a proposed rent
8 increase, the board shall hear the case within 30 days of
9 receipt of the petition for a hearing.
10 Section 7. Petition for hearing.
11 (a) Form.--The ombudsman shall prepare a standardized
12 petition form to be used by an individual or individuals who
13 wish to appeal an order of the ombudsman to the board.
14 (b) Fee.--A filing fee of $200 shall accompany each petition
15 filed with the ombudsman for a hearing before the board. If the
16 board finds in favor of the original party or parties filing the
17 complaint, the respondent shall be responsible for the payment
18 of the required $200 filing fee.
19 Section 8. Hearing procedure before board.
20 (a) General rule.--Upon receiving a petition for a hearing
21 and the accompanying filing fee, the chairman of the board shall
22 set a time and place for a hearing and shall give the parties
23 reasonable notice of the date, time and location of the hearing.
24 A notice of each hearing shall also be provided to the Office of
25 Attorney General.
26 (b) Proceedings.--All hearings shall be conducted under 2
27 Pa.C.S. Ch. 5 (relating to practice and procedure). Either party
28 to a hearing may present witnesses on his behalf, in person or
29 by deposition, on making a request to the board and designating
30 the person or persons, as well as records and papers, requested
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1 to be subpoenaed, and may request that a written transcript of
2 the hearing be taken and made upon payment of the cost of the
3 transcript. Subpoenas may be enforced in Commonwealth Court,
4 which, after a hearing, may judge in contempt or make another
5 appropriate order. For the purpose of the hearing, the board has
6 the powers vested in the officers by section 502 of the act of
7 April 9, 1929 (P.L.177, No.175), known as The Administrative
8 Code of 1929, which secures the power to inspect, examine,
9 secure data or information or procure assistance from any
10 department, board or committee. The board may cause the
11 deposition of witnesses in or outside of this Commonwealth to be
12 taken as prescribed by law for depositions in civil cases.
13 (c) Inspection.--Either party or his authorized agent may
14 inspect any file that pertains to the hearing if such
15 authorization is filed in writing with the ombudsman.
16 (d) Decision.--The board shall render a decision based on
17 evidence given within seven calendar days of the hearing, and
18 the decision of the board shall be final and binding on all
19 parties unless appealed to the Commonwealth Court as provided
20 for by section 9. A copy of each decision shall be forwarded to
21 the Office of Attorney General.
22 Section 9. Appeal.
23 Within 20 days after service of notice of the decision of the
24 board, a person aggrieved by a decision of the board may apply
25 for an appeal in Commonwealth Court.
26 Section 10. Public access.
27 There shall be a toll-free telephone number established by
28 the ombudsman for public use regarding inquiries on the services
29 available from the ombudsman, including, but not limited to, the
30 procedures for filing a complaint and making an appeal to the
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1 board.
2 Section 11. Resident notification.
3 It shall be the responsibility of every owner of a
4 manufactured housing community, within 30 days of the effective
5 date of this act, to provide each resident of the manufactured
6 housing community with a copy of this act and to maintain one
7 copy of this act at a convenient location within the community
8 for review by residents. In addition, all lessees in the
9 community shall be provided with a copy of this act by the
10 owners of the manufactured housing community at least 48 hours
11 before a lessee signs a lease.
12 Section 12. Restricted account.
13 There is hereby established within the State Treasury a
14 restricted account, into which shall be deposited any
15 appropriation and all fees paid to the board. The moneys in this
16 account are appropriated for the operation of the ombudsman and
17 the board in such amounts as the General Assembly may designate.
18 Section 13. Construction of act.
19 Nothing in this act shall be construed to contradict or
20 interfere with the rights of consumers as provided for by the
21 act of December 17, 1968 (P.L.1224, No.387), known as the Unfair
22 Trade Practices and Consumer Protection Law.
23 Section 14. Appropriation.
24 The sum of $250,000, or as much thereof as may be necessary,
25 is hereby appropriated to the Manufactured Housing Hearing Board
26 for the fiscal year July 1, 1991, to June 30, 1992, for the
27 operation of the Manufactured Housing Ombudsman and the
28 Manufactured Housing Hearing Board.
29 Section 15. Effective date.
30 This act shall take effect in 30 days.
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