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                                                       PRINTER'S NO. 171

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 126 Session of 2007


        INTRODUCED BY GREENLEAF, WONDERLING, BOSCOLA, RAFFERTY, KITCHEN,
           FONTANA, PIPPY, WASHINGTON, RHOADES, BROWNE AND LOGAN,
           MARCH 5, 2007

        REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
           MARCH 5, 2007

                                     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 sections 1, 2, 3, 4, 5, 6, 7, 9,
     9  10, 11, 12, 13 and 16 of the act of November 24, 1976 (P.L.1176,
    10  No.261), known as the Mobile Home Park Rights Act, are amended
    11  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."


     1     Section 2.  Definitions.--As used in this act:
     2     ["Mobile home" means a] "Manufactured home."  A
     3  transportable, single-family dwelling unit intended for
     4  permanent occupancy and constructed as a single unit, or as two
     5  or more units designed to be joined into one integral unit
     6  capable of again being separated for repeated towing, which
     7  arrives at a site complete and ready for occupancy except for
     8  minor and incidental unpacking and assembly operations, and
     9  constructed so that it may be used without a permanent
    10  foundation.
    11     ["Mobile home park" means any] "Manufactured home community."
    12  A site, lot, field or tract of land, privately or publicly owned
    13  or operated, upon which three or more [mobile] manufactured
    14  homes, occupied for dwelling or sleeping purposes, are or are
    15  intended to be located, regardless of whether or not a charge is
    16  made for such accommodation.
    17     ["Mobile home resident" means an] "Manufactured home
    18  resident."  An owner of a [mobile] manufactured home who leases
    19  or rents space in a [mobile home park] manufactured home
    20  community. The term does not include a person who rents or
    21  leases a [mobile] manufactured home.
    22     ["Mobile home space" means a] "Manufactured home space."  A
    23  plot of ground within a [mobile home park] manufactured home
    24  community designed for the accommodation of one [mobile]
    25  manufactured home.
    26     ["Rent" means ground] "Rent."  Ground rent for a [mobile]
    27  manufactured home site.
    28     "Service [charges" means charges] charges."  Charges for
    29  electricity, gas service which is underground and piped directly
    30  to individual units within the [park] community, trash removal,
    20070S0126B0171                  - 2 -     

     1  sewage and water.
     2     Section 3.  Evictions.--(a)  A [mobile] manufactured home
     3  resident shall only be evicted for any of the following reasons:
     4     (1)  Nonpayment of rent.
     5     (2)  A second or subsequent violation of the rules of the
     6  [mobile home park] manufactured home community occurring within
     7  a six-month period.
     8     (3)  If there is a change in use of the [park] community land
     9  or parts thereof.
    10     (4)  Termination of [mobile home park] manufactured home
    11  community.
    12     (b)  A [mobile] manufactured home resident shall only be
    13  evicted in accordance with the following procedure:
    14     (1)  A resident shall not be evicted [by] for any self-help
    15  measure.
    16     (2)  Prior to the commencement of any eviction proceeding,
    17  the [mobile home park] manufactured home community owner shall
    18  notify the [mobile home park] manufactured home community
    19  resident in writing of the particular breach or violation of the
    20  lease or [park] community rules by certified or registered mail.
    21     (i)  In the case of nonpayment of rent, the notice shall
    22  state that an eviction proceeding may be commenced if the
    23  [mobile] manufactured home resident does not pay the overdue
    24  rent within 20 days from the date of service if the notice is
    25  given on or after April 1 and before September 1, and 30 days if
    26  given on or after September 1 and before April 1 or an
    27  additional nonpayment of rent occurring within six months of the
    28  giving of the notice may result in immediate eviction
    29  proceedings.
    30     (ii)  In the case of a breach of the lease or violation of
    20070S0126B0171                  - 3 -     

     1  the [park] community rules, other than nonpayment of rent, the
     2  notice shall describe the particular breach or violation. No
     3  eviction action shall be commenced unless the [mobile home park]
     4  manufactured home community resident has been notified as
     5  required by this section, and upon a second or subsequent
     6  violation or breach occurring within six months, the [mobile
     7  home park] manufactured home community owner may commence
     8  eviction proceedings at any time within 60 days of the last
     9  violation or breach.
    10     (c)  A [mobile] manufactured home resident shall not be
    11  evicted when there is proof that the rules he is accused of
    12  violating are not enforced with respect to the other [mobile]
    13  manufactured home residents or nonresidents on the [park]
    14  community premises.
    15     Section 4.  [Park] Community Rules and Regulations.--(a)  The
    16  owner or operator of a [mobile home park] manufactured home
    17  community may at any time establish fair and reasonable rules
    18  and regulations reasonably related to the health, or safety of
    19  residents in the [park] community or to the upkeep of the [park,
    20  provided such rules and regulations] community, provided the
    21  rules and regulations are not arbitrary or capricious and are
    22  included in any written lease and delivered to existing
    23  residents and are posted in a conspicuous and readily accessible
    24  place in the [mobile home park.] manufactured home community.
    25     (b)  All rules or rental charges shall be uniformly applied
    26  to all [mobile] manufactured home residents or prospective
    27  [mobile] manufactured home residents of the same or similar
    28  category. When the lease or rental agreement is oral, the
    29  resident shall be provided with a written copy of such rules and
    30  regulations prior to the owner's or operator's acceptance of any
    20070S0126B0171                  - 4 -     

     1  initial deposit, fee or rent. In addition a copy of this act
     2  shall be posted in a conspicuous and readily accessible place in
     3  the mobile home park and a copy of the following notice shall be
     4  reproduced in capital typewritten letters or in ten-point
     5  boldface print and be given to each resident upon entering into
     6  the lease.
     7                 "IMPORTANT NOTICE REQUIRED BY LAW
     8         The rules set forth below govern the terms of your lease
     9     or occupancy agreement with this [mobile home park]
    10     manufactured home community. The law requires all of these
    11     rules to be fair and reasonable.
    12         You may continue to stay in this [park] community as long
    13     as you pay your rent and other reasonable fees, service
    14     charges and assessments hereinafter set forth and abide by
    15     the rules of the [park] community. Entrance and exit fees may
    16     not be charged. Installation and removal fees may not be
    17     charged in excess of the actual cost to the [mobile home
    18     park] manufactured home community owner or operator for
    19     providing such service for the installation or removal of a
    20     [mobile home in a mobile] manufactured home in a manufactured
    21     home space.
    22         You may be evicted for any of the following reasons:
    23         (1)  Nonpayment of rent.
    24         (2)  A second or subsequent violation of the rules of the
    25     [mobile home park] manufactured home community occurring
    26     within a six-month period.
    27         (3)  If there is a change in use of the [park] community
    28     land or parts thereof.
    29         (4)  Termination of [mobile home park.] manufactured home
    30     community.
    20070S0126B0171                  - 5 -     

     1         You shall only be evicted in accordance with the
     2     following procedure:
     3         (1)  A resident shall not be evicted [by] for any self-
     4     help measure.
     5         (2)  Prior to the commencement of any eviction
     6     proceeding, the [mobile home park] manufactured home
     7     community owner shall notify you in writing of the particular
     8     breach or violation of the lease or [park] community rules by
     9     certified or registered mail.
    10         (i)  In the case of nonpayment of rent, the notice shall
    11     state that an eviction proceeding may be commenced if the
    12     [mobile] manufactured home resident does not pay the overdue
    13     rent within 20 days from the date of service if the notice is
    14     given on or after April 1 and before September 1, and 30 days
    15     if given on or after September 1 and before April 1 or an
    16     additional nonpayment of rent occurring within six months of
    17     the giving of the notice may result in immediate eviction
    18     proceedings.
    19         (ii)  In the case of a breach of the lease or violation
    20     of the [park] community rules, other than nonpayment of rent,
    21     the notice shall describe the particular breach or violation.
    22     No eviction action shall be commenced unless you have been
    23     notified as required by this section, and upon a second or
    24     subsequent violation or breach occurring within six months,
    25     the [mobile home park] manufactured home community owner may
    26     commence eviction proceedings at any time within 60 days of
    27     the last violation or breach.
    28         You shall not be evicted when there is proof that the
    29     rules you are accused of violating are not enforced with
    30     respect to the other [mobile] manufactured home residents or
    20070S0126B0171                  - 6 -     

     1     nonresidents on the [park] community premises.
     2         In addition, no eviction proceeding for nonpayment of
     3     rent may be commenced against you until you have received
     4     notice by certified or registered mail of the nonpayment and
     5     have been given to pay the overdue rent 20 days from the date
     6     of service if the notice is given on or after April 1 and
     7     before September 1, and 30 days if given on or after
     8     September 1 and before April 1. However, only one notice of
     9     overdue rent is required to be sent to you during any six-
    10     month period. If a second or additional violation occurs
    11     within six months from the date of the first notice then
    12     eviction proceedings may be immediately started against you.
    13         You are entitled to purchase goods or services from a
    14     seller of your choice and the [park] community owner shall
    15     not restrict your right to do so.
    16         If you desire to sell your [mobile] manufactured home,
    17     the [mobile home park] manufactured home community owner may
    18     not prevent the sale and may not claim any fee in connection
    19     therewith, unless there exists a separate written fee
    20     agreement. However, the [mobile home park] manufactured home
    21     community owner may reserve the right to approve the
    22     purchaser as a resident in the [mobile home park.]
    23     manufactured home community.
    24         Enforcement of the [Mobile Home Park] Manufactured Home
    25     Community Rights Act is by the Attorney General of the
    26     Commonwealth of Pennsylvania or the District Attorney of the
    27     county in which the [mobile home park] manufactured home
    28     community is located. You may also bring a private cause of
    29     action. If your rights are violated you may contact the State
    30     Bureau of Consumer Protection or your local District
    20070S0126B0171                  - 7 -     

     1     Attorney."
     2     Section 5.  Underskirting and Tie-down Equipment.--A [mobile
     3  home park] manufactured home community owner or operator may
     4  designate the type of material or manner of installation for
     5  underskirting, awnings, porches, fences or other additions and
     6  alterations to the exterior of the [mobile] manufactured home
     7  and tie-down equipment used in a [mobile] manufactured home
     8  space in order to insure the safety and good appearance of the
     9  [mobile home park] manufactured home community, but under no
    10  circumstances may a resident be required to purchase such
    11  equipment from a supplier designated by the [park] community
    12  owner or operator.
    13     Section 6.  Disclosure of Fees.--(a)  All rent, fees, service
    14  charges and assessments shall be fully disclosed in writing to a
    15  resident prior to the owner or operator's acceptance of any
    16  initial deposit, fee or rent. Failure to disclose such rent,
    17  fees, service charges and assessments shall render them void and
    18  unenforceable in the courts of the Commonwealth. Increases in
    19  such rent, fees, service charges and assessments shall be
    20  unenforceable until 30 days after notice thereof has been posted
    21  in the [mobile home park] manufactured home community and mailed
    22  to the resident. However, rent shall not be increased during the
    23  term of the lease.
    24     (b)  (1)  If a majority of the manufactured home residents of
    25  the community believe the rent increase is excessive they may,
    26  prior to the implementation of the rent increase, request the
    27  resident association's governing board to submit a written
    28  request to the American Arbitration Association for the
    29  appointment of an arbitrator. The resident association shall
    30  certify on a confidential basis the request and signatures of a
    20070S0126B0171                  - 8 -     

     1  majority of the residents who shall be notified of the cost
     2  involved in seeking binding arbitration under this subsection.
     3  After the certification the governing body of the resident
     4  association shall pass a resolution specifically requesting
     5  arbitration and agreeing to bear the appropriate costs. The
     6  arbitrator shall conduct binding arbitration between the
     7  community owner or operator and the manufactured home residents.
     8     (2)  If a community has no resident association, the
     9  manufactured home residents shall gather, on a confidential
    10  basis, the signatures of a majority of the residents within the
    11  community who shall be notified of the cost involved in seeking
    12  binding arbitration under this section and agree to bear the
    13  appropriate costs. After gathering the signatures of a majority
    14  of the manufactured home residents, a written petition shall be
    15  submitted to the Bureau of Consumer Protection in the Office of
    16  Attorney General that includes the name of the person who will
    17  act as the representative of the residents and a statement that
    18  they dispute the proposed lot rent increase. The Bureau of
    19  Consumer Protection shall, upon receipt of the written petition,
    20  contact the manufactured home community owner informing him of
    21  the petition and requesting that the community owner supply a
    22  complete list of all residents within the manufactured home
    23  community to verify that the petition represents a majority of
    24  the residents. If the community owner fails to comply with the
    25  request within 14 days of the receipt of the notice, the
    26  petition shall be deemed valid and the community owner and
    27  representative of the residents shall be notified. The Bureau of
    28  Consumer Protection shall, after review, notify both the
    29  manufactured home community owner and the representative of the
    30  residents whether a majority of residents has been certified.
    20070S0126B0171                  - 9 -     

     1  Upon receiving written notice from the Bureau of Consumer
     2  Protection that the petition contains the names of a majority of
     3  residents, the residents may submit a written request for
     4  binding arbitration to the American Arbitration Association. The
     5  arbitrator shall conduct binding arbitration between the
     6  community owner or operator and the manufactured home residents.
     7     (3)  For purposes of determining the majority under this
     8  subsection, there shall be one vote per manufactured home.
     9     (c)  The manufactured home owner or the manufactured home
    10  owner's designee shall submit to the binding arbitration and
    11  shall cooperate with the arbitrator in providing information for
    12  the sole purpose of deciding the issue of whether the increase
    13  in rent is excessive. Information regarding the right to binding
    14  arbitration shall be provided to the manufactured home community
    15  resident upon signing a ground lease.
    16     (d)  The arbitrator shall promptly hear the dispute and
    17  render a decision based on the excessive rent increase standard.
    18  For purposes of determining a reasonable return on the
    19  manufactured home community owner's investment or equity, the
    20  arbitrator shall perform a risk analysis and consider
    21  alternative and comparative investments.
    22     (e)  The costs and expenses of the arbitrator shall be borne
    23  equally by the manufactured home community owner and the
    24  manufactured home residents.
    25     (f)  The rental increase shall not take effect until the
    26  conclusion of the arbitration, pending its outcome.
    27     (g)  A rent increase may not go into effect until the earlier
    28  of one of the following:
    29     (1)  Completion of the binding arbitration process.
    30     (2)  One hundred twenty days after provision of the written
    20070S0126B0171                 - 10 -     

     1  notice required under this section.
     2     (h)  For the purposes of this section, the term "excessive
     3  rent increase" shall mean an increase which is unreasonable and
     4  based on the manufactured community home owner's or operator's
     5  total expenses, including debt service, taxes and a reasonable
     6  return on the owner's investment or equity in the park, if the
     7  debt service is directly related to acquisition of the
     8  manufactured community. Debt service used to or otherwise
     9  employed for purposes other than that which is directly related
    10  to the acquisition or capital management of the manufactured
    11  home community shall be excluded. The arbitrator may perform an
    12  analysis as to the manufactured community owner's need for a
    13  rent increase and services provided to the park. The analysis
    14  shall be performed for a period of not less than three years
    15  prior to the application for rental increase. Any debt service
    16  incurred using the manufactured community as collateral or other
    17  security for investment, enterprises, businesses or similar
    18  ventures separate and apart from the manufactured home community
    19  shall not be included in the analysis.
    20     Section 7.  Appliance Installation Fees.--No [mobile home
    21  park] manufactured home community owner or operator may restrict
    22  the making of any interior improvements in a [mobile]
    23  manufactured home so long as such improvements are in compliance
    24  with applicable building codes and other provisions of law; nor
    25  may he restrict the installation, service or maintenance of an
    26  electric or gas appliance in a [mobile] manufactured home or
    27  charge any fee for such installation unless the fee reflects the
    28  actual cost to the [mobile home park] manufactured home
    29  community owner or operator of such installation or its use.
    30     Section 9.  Installation and Removal Fees.--Any fee charged
    20070S0126B0171                 - 11 -     

     1  for the installation or removal of a [mobile home in a mobile
     2  home] manufactured home in a manufactured home space shall not
     3  exceed the actual cost to the [mobile home park] manufactured
     4  home community owner or operator for providing such service.
     5  Such fees shall be refundable to the resident at the time of
     6  removal in the event that the owner or operator acts to recover
     7  possession of said space for reasons other than nonpayment of
     8  rent or breach of a condition of the lease within one year of
     9  the initial installation of such [mobile] manufactured home.
    10  Failure to refund such fees as provided shall entitle the tenant
    11  to recover treble their amount plus court costs and reasonable
    12  attorney fees.
    13     Imposition of this type of entrance fee shall not bar the
    14  [mobile home park] manufactured home community owner or operator
    15  from requiring a reasonable security deposit in accordance with
    16  the act of April 6, 1951 (P.L.69, No.20), known as "The Landlord
    17  and Tenant Act of 1951."
    18     Section 10.  Other Fees.--In accordance with a resident's
    19  right to invite to his dwelling unit such social and business
    20  visitors as he wishes, no fee may be charged for overnight
    21  visitors or guests occupying a resident's [mobile] manufactured
    22  home. However, if such overnight visitors or guests so
    23  frequently remain overnight for residential purposes so as to
    24  increase the number of persons normally living in said unit, the
    25  owner or operator of a [mobile home park] manufactured home
    26  community may revise the rent due to conform to the rent paid by
    27  other residents with a like number of members in their
    28  household.
    29     Section 11.  Sale of [Mobile] Manufactured Homes.--Any rule,
    30  regulation or condition of a lease purporting to prevent the
    20070S0126B0171                 - 12 -     

     1  sale of a [mobile] manufactured home belonging to a resident
     2  shall be void and unenforceable in the courts of the
     3  Commonwealth. The [mobile home park] manufactured home community
     4  owner or operator may reserve the right to approve the purchaser
     5  of said [mobile] manufactured home as a resident, but such
     6  approval may not be unreasonably withheld. Any claim for a fee
     7  or commission in connection with the sale of such [mobile]
     8  manufactured home shall be void and unenforceable unless the
     9  claimant shall in fact have acted as a bona fide licensed
    10  [mobile] manufactured home sales agent for the [mobile]
    11  manufactured home owner pursuant to a separate written fee
    12  agreement.
    13     Section 12.  Waiver of Rights.--The rights and duties of
    14  [mobile home park] manufactured home community owners and
    15  operators and the [mobile] manufactured home residents may not
    16  be waived by any provisions of a written or oral agreement. Any
    17  such agreement attempting to limit these rights shall be void
    18  and unenforceable in the courts of the Commonwealth.
    19     Section 13.  Damages.--Any [mobile home park] manufactured
    20  home community owner, operator or resident aggrieved by a
    21  violation of their rights under this act may institute a private
    22  cause of action to recover damages, or for treble damages where
    23  so provided in this act, or for restitution in any appropriate
    24  court of initial jurisdiction within the Commonwealth.
    25     Section 16.  Retaliatory Evictions.--Any action by a [mobile
    26  home park] manufactured home community owner or operator to
    27  recover possession of real property from a [mobile home park]
    28  manufactured home community resident or to change the lease
    29  within six months of a resident's assertion of his rights under
    30  this act or any other legal right shall raise a presumption that
    20070S0126B0171                 - 13 -     

     1  such action constitutes a retaliatory and unlawful eviction by
     2  the owner or operator and is in violation of this act. Such a
     3  presumption may be rebutted by competent evidence presented in
     4  any appropriate court of initial jurisdiction within the
     5  Commonwealth.
     6     Section 2.  This act shall take effect in 60 days.
















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