PRINTER'S NO. 171
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. L8L68DMS/20070S0126B0171 - 14 -