THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY R. TAYLOR, HARPER, BRENNAN, CLYMER, D. COSTA, CREIGHTON, FREEMAN, GRUCELA, HORNAMAN, JOSEPHS, KAUFFMAN, KORTZ, KOTIK, MURT, PASHINSKI, SCAVELLO, SIPTROTH, J. TAYLOR, TRUE AND GEIST, APRIL 3, 2009

REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 3, 2009  

AN ACT

Amending the act of November 24, 1976 (P.L.1176, No.261),

entitled "An act providing for the rights and duties of

mobile home owners or operators and mobile home residents,"

adding definitions; and providing for written disclosures

prior to sale or rental of mobile home lots.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The title of the act of November 24, 1976

(P.L.1176, No.261), known as the Mobile Home Park Rights Act, is

amended to read:

AN ACT

Providing for the rights and duties of mobile home owners or

operators and mobile home residents; requiring certain mobile

home park owners and operators to provide written disclosures

prior to the rental or sale of any mobile home park lot.

Section 2.  Section 1 of the act is amended to read:

Section 1.  Short Title.--This act shall be known and may be

cited as the "Mobile Home Park Disclosure and Rights Act."

Section 3.  Section 2 of the act is amended by adding

definitions to read:

Section 2.  Definitions.--As used in this act:

"Agency" means the Office of the Attorney General.

* * *

"Mobile home park owner" or "park owner" means an owner or

operator of a mobile home park.

* * *

"Mobile home space rental agreement" or "rental agreement"

means any mutual understanding or lease, whether oral or

written, between a mobile home resident and a mobile home park

owner in which the mobile home resident is entitled to place

that resident's mobile home on a mobile home space for either

direct or indirect remuneration of the mobile home park owner.

The term includes any ground rent charged to the mobile home

resident.

"Mobile home subdivision" means a subdivision of mobile homes

where individual lots are owned by mobile home residents and

where a portion of the subdivision or the amenities exclusively

serving the subdivision are retained by the subdivision

developer.

"Operator of a mobile home park" or "operator" means either a

person who establishes a mobile home park on land which is

leased from another person or a person who has been delegated

the authority to act as the park owner in matters relating to

the administration and management of the mobile home park,

including, but not limited to, authority to make decisions

relating to the mobile home park.

* * *

Section 4.  The act is amended by adding sections to read:

Section 2.1.  Disclosure Prior to Rental of a Mobile Home

Lot; Prospectus, Filing, Approval.--(a)  In a mobile home park

containing 20 or more lots, the park owner shall file a

prospectus with the agency. Prior to entering into an

enforceable rental agreement for a mobile home lot, the park

owner shall deliver to the homeowner a prospectus approved by

the agency.

(b)  The agency shall determine whether the proposed

prospectus or offering circular is adequate to meet the

requirements of this section and shall notify the park owner by

mail, within 45 days after receipt of the document, that the

agency has found that the prospectus or offering circular is

adequate or has found specified deficiencies. If the agency does

not make either finding within 45 days, the prospectus shall be

deemed to have been found adequate.

(c)  (1)  Filings for mobile home parks in which lots have

not been offered for lease prior to June 30, 2009, shall be

accompanied by a filing fee of $10 per lot offered for lease by

the park owner; however, the fee shall not be less than $100.

(2)  Filings for mobile home parks in which lots have been

offered for lease prior to the effective date of this section

shall be accompanied by a filing fee as follows:

(i)  For a park in which there are 20-50 lots: $100.

(ii)  For a park in which there are 51-100 lots: $150.

(iii)  For a park in which there are 101-150 lots: $200.

(iv)  For a park in which there are 151-200 lots: $250.

(v)  For a park in which there are 201 or more lots: $300.

(d)  The agency shall maintain copies of each prospectus and

all amendments to each prospectus which are considered adequate

by the agency. The agency shall provide copies of the documents

requested in writing under this subsection within ten days after

the written request is received.

(e)  The park owner shall furnish a copy of the prospectus or

offering circular together with all of the exhibits thereto to

each prospective lessee. Delivery shall be made prior to

execution of the lot rental agreement or at the time of

occupancy, whichever occurs first. Upon delivery of a prospectus

to a prospective lessee, the lot rental agreement is voidable by

the lessee for a period of 15 days. However, the park owner is

not required to furnish a copy of the prospectus or offering

circular if the tenancy is a renewal of a tenancy and the mobile

home resident has previously received the prospectus or offering

circular.

(f)  The prospectus or offering circular together with its

exhibits is a disclosure document intended to afford protection

to homeowners and prospective homeowners in the mobile home

park. The purpose of the document is to disclose the history of

expenses associated with tenancy in and representations of the

mobile home park owner concerning the operations of the mobile

home park and to inform prospective owners of the features of

the mobile home community.

(g)  With regard to a tenancy in existence on the effective

date of this section, the prospectus or offering circular

offered by the mobile home park owner shall contain the same

terms and conditions as rental agreements offered to all other

mobile home owners residing in the park on the effective date of

this section, excepting only the rent variations based upon lot

location and size.

(h)  The mobile home park owner may request that the

homeowner sign a receipt indicating that the homeowner has

received a copy of the prospectus, the rules and regulations and

other pertinent documents so long as any such documents are

clearly identified in the receipt itself. Such a receipt shall

indicate nothing more than that the documents identified in the

receipt have been received by the mobile home owner as of a date

certain.

Section 2.2.  Prospectus or Offering Circular.--The

prospectus or offering circular, which is required to be

provided by section 2.1, must contain the following information:

(1)  The front cover or the first page must contain only:

(i)  The name of the mobile home park.

(ii)  The following statements in conspicuous type:

1.  THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION

REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL

OBLIGATIONS IN LEASING A MOBILE HOME LOT. MAKE SURE THAT

YOU READ THE ENTIRE DOCUMENT AND SEEK LEGAL ADVICE IF YOU

HAVE ANY QUESTIONS REGARDING THE INFORMATION SET FORTH IN

THIS DOCUMENT.

2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL

REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS

AND SALES MATERIALS.

3.  ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS

CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER

OR OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR)

AND ITS EXHIBITS FOR CORRECT REPRESENTATIONS.

4.  YOU HAVE 15 DAYS FROM THE DATE YOU RECEIVED THIS

PROSPECTUS TO CANCEL YOUR AGREEMENT IN WRITING.

(2)  The next page must contain all statements required to be

in conspicuous type in the prospectus or offering circular in a

summary form.

(3)  A separate index of the contents and exhibits of the

prospectus.

(4)  Beginning on the first page of the text, the following

information:

(i)  The name and address or location of the mobile home

park.

(ii)  The name and address of the person authorized to

receive notices and demands on the park owner's behalf.

(iii)  A description of the mobile home park property,

including, but not limited to:

(A)  The number of lots in each section, the approximate size

of each lot, the setback requirements and the minimum separation

distance between mobile homes as required by law.

(B)  The maximum number of lots that will use shared

facilities of the park; and, if the maximum number of lots will

vary, a description of the basis for variation.

(5)  A description of the recreational and other common

facilities, if any, that will be used by the mobile home

residents, including, but not limited to:

(i)  The number of buildings and each room thereof and its

intended purposes, location, approximate floor area and capacity

in numbers of people.

(ii)  Each swimming pool, if any, as to its general location,

approximate size and depths and approximate deck size and

capacity and whether heated.

(iii)  All other facilities and permanent improvements which

will serve the mobile home residents.

(iv)  A general description of the items of personal property

available for use by the mobile home residents.

(v)  A general description of the days and hours that

facilities will be available for use.

(vi)  A statement as to whether all improvements are complete

and, if not, their estimated completion dates.

(6)  The arrangements for management of the park and

maintenance and operation of the park property and of other

property that will serve the mobile home residents and the

nature of the services included.

(7)  A description of all improvements, whether temporary or

permanent, which are required to be installed by the mobile home

resident as a condition of his or her occupancy in the park.

(8)  The manner in which utility and other services,

including, but not limited to, sewage and waste disposal, cable

television, water supply and storm drainage, will be provided,

and the person or entity furnishing them. The services and the

lot rental amount or user fees charged by the park owner for the

services provided by the park owner shall also be disclosed.

(9)  An explanation of the manner in which the lot rental

amount will be raised, including, but not limited to:

(i)  Notification of the mobile home resident at least 90

days in advance of the increase.

(ii)  Disclosure of any factors which may affect the lot

rental amount, including, but not limited to:

(A)  Water rates.

(B)  Sewer rates.

(C)  Waste disposal rates.

(D)  Maintenance costs, including costs of deferred

maintenance.

(E)  Management costs.

(F)  Property taxes.

(G)  Major repairs or improvements.

(H)  Any other fees, costs, entrance fees or charges to which

the mobile home resident may be subjected.

(10)  Disclosure of the manner in which the pass-through

charges will be assessed.

(11)  A report of the utility fees charged for the lot during

the previous year.

(12)  Disclosure of all user fees currently charged for

services offered which the homeowner may elect to incur and the

manner in which the fees will be increased.

(13)  The park rules and regulations and an explanation of

the manner in which park rules or regulations will be set,

changed or promulgated.

(14)  A statement describing the existing zoning

classification of the park property and permitted uses under

such classification.

(15)  A statement of the nature and type of zoning under

which the mobile home park operates, the name of the zoning

authority which has jurisdiction over the land comprising the

mobile home park and, if applicable, a detailed description of

any definite future plans which the park owner has for changes

in the use of the land comprising the mobile home park.

(16)  Copies of the following, to the extent they are

applicable, as exhibits:

(i)  The ground lease or other underlying leases of the

mobile home park or a summary of the contents of the lease or

leases when copies of the same have been filed with the agency.

(ii)  A copy of the mobile home park lot layout showing the

location of the recreational areas and other common areas.

(iii)  All covenants and restrictions and zoning which will

affect the use of the property and which are not contained in

the foregoing.

(iv)  A copy of the rental agreement or agreements to be

offered for rental of mobile home lots.

(17)  An addendum to the prospectus unique to each rental

space in the mobile home park containing:

(i)  The rent increases for the three full calendar years

immediately preceding the prospective initial rental agreement

date. This information shall be for basic space rental only and

does not apply to other fees such as late charges, guest fees

and utility charges.

(ii)  The park owner or operator must disclose the rent

history with calculations that fairly describe the rent history

and that are made in any manner that reasonably informs the

prospective tenant of the history of basic space rent in the

mobile home park during that period.

(iii)  The disclosure calculation shall be made as of January

of each year by adding the dollar amounts and percentage amounts

for aggregate rental increases that became effective in the

prior calendar year for every space in the park and dividing

that number by the total number of occupied revenue spaces for

which rent was or could have been increased.

(iv)  This average amount of rental increase and average

percentage of rental increase shall be posted at the rental

office for three years.

(v)  Disclosure calculations made pursuant to paragraph (17)

shall be made to the best of the park owner's or operator's

ability.

Section 2.3.  Written Notification in the Absence of

Prospectus.--A mobile home park owner who enters into a rental

agreement in which a prospectus is not provided shall give

written notification to the mobile home resident of the

following information prior to occupancy:

(1)  The nature and type of zoning under which the mobile

home park operates; the name of the zoning authority which has

jurisdiction over the land comprising the mobile home park; and

a detailed description containing all information available to

the mobile home park owner, including the time, manner and

nature, of any definite future plans which he or she has for

future changes in the use of the land comprising the mobile home

park or a portion thereof.

(2)  The name and address of the mobile home park owner or a

person authorized to receive notices and demands on his or her

behalf.

(3)  All fees and charges, assessments or other financial

obligations not included in the rental agreement and a copy of

the rules and regulations in effect.

(4)  An explanation of the manner in which the lot rental

amount will be raised, including, but not limited to:

(i)  Notification of the mobile home resident at least 90

days in advance of the increase.

(ii)  Disclosure of any factors which may affect the lot

rental amount, including, but not limited to:

(A)  Water rates.

(B)  Sewer rates.

(C)  Waste disposal rates.

(D)  Maintenance costs, including costs of deferred

maintenance.

(E)  Management costs.

(F)  Property taxes.

(G)  Major repairs or improvements.

(H)  Any other fees, costs, entrance fees or charges to which

the mobile home resident may be subjected.

Section 2.4.  Failure to Provide Prospectus or Offering

Circular Prior to Occupancy.--(a)  If a prospectus or offering

circular was not provided to the prospective lessee prior to

execution of the lot rental agreement or prior to initial

occupancy of a new mobile home, the rental agreement is voidable

by the lessee until 15 days after the receipt by the lessee of

the prospectus or offering circular and all exhibits thereto.

(b)  To cancel the rental agreement, the mobile home resident

shall deliver written notice to the park owner within 15 days

after receipt of the prospectus or offering circular and shall

thereupon be entitled to a refund of any deposit together with

relocation costs for the mobile home, or the market value

thereof, including any appurtenances thereto paid for by the

mobile home resident, from the park owner.

Section 5.  This act shall apply to all new sales or leases

of mobile home park lots entered into on or after July 1, 2009.

This act shall also apply to any lease renewals entered into on

or after July 1, 2009.

Section 6.  This act shall take effect July 1, 2009.