Senate Bill S228A

                                 
BILL NUMBER: S228

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the real property law, in relation to increases of rent
in manufactured home parks

 
PURPOSE:

Clarify existing requirements of manufactured home park owners to justi-
fy rent increases in excess of 3% of the current rent.

 
SUMMARY OF PROVISIONS:

Section 1: Amends § 233-b of the Real Property Law to add a new subdivi-
sion 9 and subdivision 10.

The new subdivision nine would require when a manufactured home park
owner notifies the manufactured homeowners in the park of rent or fee
increases. Suppose the increase is in excess of 3W above the current
rent. In that case, the manufactured home park owner shall provide a
              

written justification for the increase and make documentation supporting
the justification available to any resident, by request, that shows the
costs and commencement of work that justifies the rent or fee increase.

The new subdivision ten details that for an increase in costs to justify
a rent increase above 3W, the community owner must demonstrate that the
costs incurred for ordinary maintenance, including preventive mainte-
nance or repair of the roads, infrastructure, or other community proper-
ty of services were necessary to meet the community owner's warranty of
habitability obligations and demonstrate that the rent increase imposed
was no more than was necessary to cover the actual and reasonable cost
of the work performed.

Section 2: Renumbers the other Section 233-b of the Real Property Law
entitled "Campgrounds" to § 233-c.

Section 3: Sets effective date.

 
JUSTIFICATION:

New York State is home to approximately 84,956 manufactured home house-
holds situated across nearly 1,818 manufactured home parks.  These
communities serve as a vital source of affordable housing, offering
tight-knit neighborhoods for seniors on fixed incomes, veterans, low-in-
come families, immigrants, individuals with disabilities, and those
displaced from higher-cost areas. Recognizing their importance, the
legislature in 2019 identified threats to these communities stemming
from the increasing involvement of large, corporate, multistate inves-
tors. These entities have been acquiring manufactured home parks,
significantly raising lot rents-the fees residents pay for the land
beneath their homes-and imposing excessive fees for profit.

To address these concerns, the legislature enacted rent justification
provisions under the Housing Stability and Tenant Protection Act of
2019. Codified in § 233-b of the Real Property Law, the rent justifica-
tion law limits annual rent increases in manufactured home communities
(excluding those under regulatory agreements with government entities)
to 3% above the current rent. Any rent increase exceeding 3% must be
substantiated by increases in the park owner's operating expenses, prop-
erty taxes, or costs directly related to capital improvements. Aggrieved
residents may challenge rent increases exceeding 3% as unjustified with-
in 90 days by filing an action in court. Rent increases are capped at
6%, except where the court determines that a temporary hardship exists
for the park owner.

Since the law's enactment, residents of manufactured home parks have
identified loopholes that undermine its effectiveness, necessitating
legislative amendments. Residents have reported instances of park owners
raising rents beyond 3% without providing notice or justification.
Instead, residents, often with assistance from advocacy organizations,
must calculate rent increases independently to determine compliance with
the law. They are then required to seek legal counsel and initiate court
actions to compel justification from park owners.

This bill addresses these issues by mandating that park owners provide
residents with written justifications for any annual rent increase
exceeding 3% and make supporting documentation readily available.

Additionally, the current law lacks clarity regarding what constitutes
valid justification for increases exceeding 3%. This bill provides clear
standards, requiring community owners to demonstrate that cost increases
justifying rent hikes above 3% were incurred for necessary maintenance
or repairs to roads, infrastructure, or other community properties.
These costs must align with the owner's warranty of habitability obli-
gations, and the rent increase must not exceed what is necessary to
cover the actual and reasonable costs of the work performed.

 
LEGISLATIVE HISTORY:

Senate

2021: S6199C, Passed Senate

2022: S6199C, Advanced to Third Reading

2023: S5198, Advanced to Third Reading

2024: S5198, Advanced to Third Reading

Assembly

2021: A6755C, Referred to Housing

2022: A6755C, Passed Assembly

2023: A5704, Referred to Housing

2024: A5704, Ordered to Third Reading

 
FISCAL IMPLICATIONS:

Anticipated savings for local governments by consolidating various
elections at different times of the year on election day in even-num-
bered years.

 
EFFECTIVE DATE:
This act shall take effect immediately.