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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY WONDERLING, GREENLEAF, WASHINGTON, FONTANA, WARD, KITCHEN, YAW AND EARLL, JUNE 4, 2009 |
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| REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, JUNE 4, 2009 |
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| AN ACT |
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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 | adding definitions; and providing for written disclosures |
5 | prior to rental or sale of mobile home lots. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. The title of the act of November 24, 1976 |
9 | (P.L.1176, No.261), known as the Mobile Home Park Rights Act, is |
10 | amended to read: |
11 | AN ACT |
12 | Providing for the rights and duties of mobile home owners or |
13 | operators and mobile home residents; requiring certain mobile |
14 | home park owners and operators to provide written disclosures |
15 | prior to the rental or sale of any mobile home park lot. |
16 | Section 2. Section 1 of the act is amended to read: |
17 | Section 1. Short Title.--This act shall be known and may be |
18 | cited as the "Mobile Home Park Disclosure and Rights Act." |
19 | Section 3. Section 2 of the act is amended by adding |
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1 | definitions to read: |
2 | Section 2. Definitions.--As used in this act: |
3 | "Agency" means the Office of the Attorney General. |
4 | * * * |
5 | "Mobile home park owner" or "park owner" means an owner or |
6 | operator of a mobile home park. |
7 | * * * |
8 | "Mobile home space rental agreement" or "rental agreement" |
9 | means any mutual understanding or lease, whether oral or |
10 | written, between a mobile home resident and a mobile home park |
11 | owner in which the mobile home resident is entitled to place |
12 | that resident's mobile home on a mobile home space for either |
13 | direct or indirect remuneration of the mobile home park owner. |
14 | The term includes any ground rent charged to the mobile home |
15 | resident. |
16 | "Mobile home subdivision" means a subdivision of mobile homes |
17 | where individual lots are owned by mobile home residents and |
18 | where a portion of the subdivision or the amenities exclusively |
19 | serving the subdivision are retained by the subdivision |
20 | developer. |
21 | "Operator of a mobile home park" or "operator" means either a |
22 | person who establishes a mobile home park on land which is |
23 | leased from another person or a person who has been delegated |
24 | the authority to act as the park owner in matters relating to |
25 | the administration and management of the mobile home park, |
26 | including, but not limited to, authority to make decisions |
27 | relating to the mobile home park. |
28 | * * * |
29 | Section 4. The act is amended by adding sections to read: |
30 | Section 2.1. Disclosure Prior to Rental of a Mobile Home |
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1 | Lot; Prospectus, Filing, Approval.--(a) In a mobile home park |
2 | containing 20 or more lots, the park owner shall file a |
3 | prospectus with the agency. Prior to entering into an |
4 | enforceable rental agreement for a mobile home lot, the park |
5 | owner shall deliver to the homeowner a prospectus approved by |
6 | the agency. |
7 | (b) The agency shall determine whether the proposed |
8 | prospectus or offering circular is adequate to meet the |
9 | requirements of this section and shall notify the park owner by |
10 | mail, within 45 days after receipt of the document, that the |
11 | agency has found that the prospectus or offering circular is |
12 | adequate or has found specified deficiencies. If the agency does |
13 | not make either finding within 45 days, the prospectus shall be |
14 | deemed to have been found adequate. |
15 | (c) (1) Filings for mobile home parks in which lots have |
16 | not been offered for lease prior to June 30, 2009, shall be |
17 | accompanied by a filing fee of $10 per lot offered for lease by |
18 | the park owner; however, the fee shall not be less than $100. |
19 | (2) Filings for mobile home parks in which lots have been |
20 | offered for lease prior to the effective date of this section |
21 | shall be accompanied by a filing fee as follows: |
22 | (i) For a park in which there are 20-50 lots: $100. |
23 | (ii) For a park in which there are 51-100 lots: $150. |
24 | (iii) For a park in which there are 101-150 lots: $200. |
25 | (iv) For a park in which there are 151-200 lots: $250. |
26 | (v) For a park in which there are 201 or more lots: $300. |
27 | (d) The agency shall maintain copies of each prospectus and |
28 | all amendments to each prospectus which are considered adequate |
29 | by the agency. The agency shall provide copies of the documents |
30 | requested in writing under this subsection within ten days after |
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1 | the written request is received. |
2 | (e) The park owner shall furnish a copy of the prospectus or |
3 | offering circular together with all of the exhibits thereto to |
4 | each prospective lessee. Delivery shall be made prior to |
5 | execution of the lot rental agreement or at the time of |
6 | occupancy, whichever occurs first. Upon delivery of a prospectus |
7 | to a prospective lessee, the lot rental agreement is voidable by |
8 | the lessee for a period of 15 days. However, the park owner is |
9 | not required to furnish a copy of the prospectus or offering |
10 | circular if the tenancy is a renewal of a tenancy and the mobile |
11 | home resident has previously received the prospectus or offering |
12 | circular. |
13 | (f) The prospectus or offering circular together with its |
14 | exhibits is a disclosure document intended to afford protection |
15 | to homeowners and prospective homeowners in the mobile home |
16 | park. The purpose of the document is to disclose the history of |
17 | expenses associated with tenancy in and representations of the |
18 | mobile home park owner concerning the operations of the mobile |
19 | home park and to inform prospective owners of the features of |
20 | the mobile home community. |
21 | (g) With regard to a tenancy in existence on the effective |
22 | date of this section, the prospectus or offering circular |
23 | offered by the mobile home park owner shall contain the same |
24 | terms and conditions as rental agreements offered to all other |
25 | mobile home owners residing in the park on the effective date of |
26 | this section, excepting only the rent variations based upon lot |
27 | location and size. |
28 | (h) The mobile home park owner may request that the |
29 | homeowner sign a receipt indicating that the homeowner has |
30 | received a copy of the prospectus, the rules and regulations and |
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1 | other pertinent documents so long as any such documents are |
2 | clearly identified in the receipt itself. Such a receipt shall |
3 | indicate nothing more than that the documents identified herein |
4 | have been received by the mobile home owner as of a date |
5 | certain. |
6 | Section 2.2. Prospectus or Offering Circular.--The |
7 | prospectus or offering circular, which is required to be |
8 | provided by section 2.1, must contain the following information: |
9 | (1) The front cover or the first page must contain only: |
10 | (i) The name of the mobile home park. |
11 | (ii) The following statements in conspicuous type: |
12 | 1. THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION |
13 | REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL |
14 | OBLIGATIONS IN LEASING A MOBILE HOME LOT. MAKE SURE THAT |
15 | YOU READ THE ENTIRE DOCUMENT AND SEEK LEGAL ADVICE IF YOU |
16 | HAVE ANY QUESTIONS REGARDING THE INFORMATION SET FORTH IN |
17 | THIS DOCUMENT. |
18 | 2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN |
19 | NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL |
20 | REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS |
21 | AND SALES MATERIALS. |
22 | 3. ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS |
23 | CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER |
24 | OR OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR) |
25 | AND ITS EXHIBITS FOR CORRECT REPRESENTATIONS. |
26 | 4. YOU HAVE 15 DAYS FROM THE DATE YOU RECEIVED THIS |
27 | PROSPECTUS TO CANCEL YOUR AGREEMENT IN WRITING. |
28 | (2) The next page must contain all statements required to be |
29 | in conspicuous type in the prospectus or offering circular in a |
30 | summary form. |
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1 | (3) A separate index of the contents and exhibits of the |
2 | prospectus. |
3 | (4) Beginning on the first page of the text, the following |
4 | information: |
5 | (i) The name and address or location of the mobile home |
6 | park. |
7 | (ii) The name and address of the person authorized to |
8 | receive notices and demands on the park owner's behalf. |
9 | (iii) A description of the mobile home park property, |
10 | including, but not limited to: |
11 | (A) The number of lots in each section, the approximate size |
12 | of each lot, the setback requirements and the minimum separation |
13 | distance between mobile homes as required by law. |
14 | (B) The maximum number of lots that will use shared |
15 | facilities of the park; and, if the maximum number of lots will |
16 | vary, a description of the basis for variation. |
17 | (5) A description of the recreational and other common |
18 | facilities, if any, that will be used by the mobile home |
19 | residents, including, but not limited to: |
20 | (i) The number of buildings and each room thereof and its |
21 | intended purposes, location, approximate floor area and capacity |
22 | in numbers of people. |
23 | (ii) Each swimming pool, if any, as to its general location, |
24 | approximate size and depths and approximate deck size and |
25 | capacity and whether heated. |
26 | (iii) All other facilities and permanent improvements which |
27 | will serve the mobile home residents. |
28 | (iv) A general description of the items of personal property |
29 | available for use by the mobile home residents. |
30 | (v) A general description of the days and hours that |
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1 | facilities will be available for use. |
2 | (vi) A statement as to whether all improvements are complete |
3 | and, if not, their estimated completion dates. |
4 | (6) The arrangements for management of the park and |
5 | maintenance and operation of the park property and of other |
6 | property that will serve the mobile home residents and the |
7 | nature of the services included. |
8 | (7) A description of all improvements, whether temporary or |
9 | permanent, which are required to be installed by the mobile home |
10 | resident as a condition of his or her occupancy in the park. |
11 | (8) The manner in which utility and other services, |
12 | including, but not limited to, sewage and waste disposal, cable |
13 | television, water supply and storm drainage, will be provided, |
14 | and the person or entity furnishing them. The services and the |
15 | lot rental amount or user fees charged by the park owner for the |
16 | services provided by the park owner shall also be disclosed. |
17 | (9) An explanation of the manner in which the lot rental |
18 | amount will be raised, including, but not limited to: |
19 | (i) Notification of the mobile home resident at least 90 |
20 | days in advance of the increase. |
21 | (ii) Disclosure of any factors which may affect the lot |
22 | rental amount, including, but not limited to: |
23 | (A) Water rates. |
24 | (B) Sewer rates. |
25 | (C) Waste disposal rates. |
26 | (D) Maintenance costs, including costs of deferred |
27 | maintenance. |
28 | (E) Management costs. |
29 | (F) Property taxes. |
30 | (G) Major repairs or improvements. |
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1 | (H) Any other fees, costs, entrance fees or charges to which |
2 | the mobile home resident may be subjected. |
3 | (10) Disclosure of the manner in which the pass-through |
4 | charges will be assessed. |
5 | (11) A report of the utility fees charged for the lot during |
6 | the previous year. |
7 | (12) Disclosure of all user fees currently charged for |
8 | services offered which the homeowner may elect to incur and the |
9 | manner in which the fees will be increased. |
10 | (13) The park rules and regulations and an explanation of |
11 | the manner in which park rules or regulations will be set, |
12 | changed or promulgated. |
13 | (14) A statement describing the existing zoning |
14 | classification of the park property and permitted uses under |
15 | such classification. |
16 | (15) A statement of the nature and type of zoning under |
17 | which the mobile home park operates, the name of the zoning |
18 | authority which has jurisdiction over the land comprising the |
19 | mobile home park and, if applicable, a detailed description of |
20 | any definite future plans which the park owner has for changes |
21 | in the use of the land comprising the mobile home park. |
22 | (16) Copies of the following, to the extent they are |
23 | applicable, as exhibits: |
24 | (i) The ground lease or other underlying leases of the |
25 | mobile home park or a summary of the contents of the lease or |
26 | leases when copies of the same have been filed with the agency. |
27 | (ii) A copy of the mobile home park lot layout showing the |
28 | location of the recreational areas and other common areas. |
29 | (iii) All covenants and restrictions and zoning which will |
30 | affect the use of the property and which are not contained in |
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1 | the foregoing. |
2 | (iv) A copy of the rental agreement or agreements to be |
3 | offered for rental of mobile home lots. |
4 | (17) An addendum to the prospectus unique to each rental |
5 | space in the mobile home park containing: |
6 | (i) The rent increases for the three full calendar years |
7 | immediately preceding the prospective initial rental agreement |
8 | date. This information shall be for basic space rental only and |
9 | does not apply to other fees such as late charges, guest fees |
10 | and utility charges. |
11 | (ii) The park owner or operator must disclose the rent |
12 | history with calculations that fairly describe the rent history |
13 | and that are made in any manner that reasonably informs the |
14 | prospective tenant of the history of basic space rent in the |
15 | mobile home park during that period. |
16 | (iii) The disclosure calculation may be made in January of |
17 | each year by adding the dollar amounts or percentage amounts for |
18 | aggregate rental increases that became effective in the prior |
19 | calendar year for every space in the park and dividing that |
20 | number by the total number of occupied revenue spaces for which |
21 | rent was or could have been increased. |
22 | (iv) This average amount of rental increase or average |
23 | percentage of rental increase shall be posted at the rental |
24 | office for three years. |
25 | (v) Disclosure calculations made pursuant to paragraph (17) |
26 | shall be made to the best of the park owner's or operator's |
27 | ability. |
28 | Section 2.3. Written Notification in the Absence of |
29 | Prospectus.--A mobile home park owner who enters into a rental |
30 | agreement in which a prospectus is not provided shall give |
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1 | written notification to the mobile home resident of the |
2 | following information prior to occupancy: |
3 | (1) The nature and type of zoning under which the mobile |
4 | home park operates; the name of the zoning authority which has |
5 | jurisdiction over the land comprising the mobile home park; and |
6 | a detailed description containing all information available to |
7 | the mobile home park owner, including the time, manner and |
8 | nature, of any definite future plans which he or she has for |
9 | future changes in the use of the land comprising the mobile home |
10 | park or a portion thereof. |
11 | (2) The name and address of the mobile home park owner or a |
12 | person authorized to receive notices and demands on his or her |
13 | behalf. |
14 | (3) All fees and charges, assessments or other financial |
15 | obligations not included in the rental agreement and a copy of |
16 | the rules and regulations in effect. |
17 | (4) An explanation of the manner in which the lot rental |
18 | amount will be raised, including, but not limited to: |
19 | (i) Notification of the mobile home resident at least 90 |
20 | days in advance of the increase. |
21 | (ii) Disclosure of any factors which may affect the lot |
22 | rental amount, including, but not limited to: |
23 | (A) Water rates. |
24 | (B) Sewer rates. |
25 | (C) Waste disposal rates. |
26 | (D) Maintenance costs, including costs of deferred |
27 | maintenance. |
28 | (E) Management costs. |
29 | (F) Property taxes. |
30 | (G) Major repairs or improvements. |
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1 | (H) Any other fees, costs, entrance fees or charges to which |
2 | the mobile home resident may be subjected. |
3 | Section 2.4. Failure to Provide Prospectus or Offering |
4 | Circular Prior to Occupancy.--(a) If a prospectus or offering |
5 | circular was not provided to the prospective lessee prior to |
6 | execution of the lot rental agreement or prior to initial |
7 | occupancy of a new mobile home, the rental agreement is voidable |
8 | by the lessee until 15 days after the receipt by the lessee of |
9 | the prospectus or offering circular and all exhibits thereto. |
10 | (b) To cancel the rental agreement, the mobile home resident |
11 | shall deliver written notice to the park owner within 15 days |
12 | after receipt of the prospectus or offering circular and shall |
13 | thereupon be entitled to a refund of any deposit together with |
14 | relocation costs for the mobile home, or the market value |
15 | thereof, including any appurtenances thereto paid for by the |
16 | mobile home resident, from the park owner. |
17 | Section 5. This act shall apply to all new sales or leases |
18 | of mobile home park lots entered into on or after July 1, 2009. |
19 | This act shall also apply to any lease renewals entered into on |
20 | or after July 1, 2009. |
21 | Section 6. This act shall take effect July 1, 2009. |
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