Source: https://www.nysenate.gov/legislation/bills/2019/s5436
Timestamp: 2019-08-17 10:47:42
Document Index: 454278225

Matched Legal Cases: ['§233', '§233', '§  2', '§ 3', '§ 4', '§ 233']

NY State Senate Bill S5436
senate Bill S5436
Get Status Alerts for S5436
May 07, 2019 1st report cal.647
May 01, 2019 referred to housing, construction and community development
S5436 (ACTIVE) - Details
Amd §233, add §233-b, RP L
2009-2010: S6920, A4851
2011-2012: S3177, A5029
2013-2014: S2905, A3351
2015-2016: S4436, A6269
2017-2018: S3231, A2682
S5436 (ACTIVE) - Summary
Relates to providing recourse for manufactured homeowners in manufactured home parks confronted with unjustifiable rent increases; creates a local option in counties in New York state to provide such protection.
S5436 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5436
providing recourse for manufactured homeowners in manufactured home
parks, who are confronted with unjustifiable rent increases
The purpose of this bill is to provide recourse for homeowners in manu-
factured home parks who are confronted with unjustifiable rent
Section 2. Subdivision e of Section 233 of the Real Property Law is
amended by adding a new paragraph 4 to subjecting all rent increases,
including all fees, rents, charges, assessments and utilities, to judi-
cial challenge pursuant to Section 233-b of the Real Property Law for
manufactured homeowners.
Section 3. Amends paragraph 2 of subdivision g of Section 233 of the
Real Property Law to require manufactured home park owners and operators
to fully disclose in writing all fees, charges, assessments, including
rental fees, rules and regulations prior to entering into a rental
agreement with a prospective tenant in the manufactured home park.
Section 4. Real Property Law is amended by adding a new Section 233-b to
permit counties by local law to adopt this section to provide recourse
for homeowners in manufactured home parks who are confronted with unjus-
tifiable rent increases.
Manufactured homes are a critical source of affordable housing for resi-
dents in New York State, particularly for senior citizens seeking to
remain in their communities.
Factors unique to home ownership in manufactured home parks require that
the owners of such manufactured homes be protected from involuntary
forfeiture of their homes due to unreasonable increases in lot rent.
Homeownership in manufactured home parks differs from other forms of
homeowners' hip as well as from the traditional landlord-tenant
relationship. Unlike other homeowners, because the manufactured homeown-
ers do not control the land on which their home exists. They have no
control over this substantial portion of their housing costs.
Vacancies in existing manufactured home parks are extremely rare in New
York State, and the cost of relocating a manufactured home, even if such
a vacancy exists, is prohibitively high and threatens the structural
integrity of many manufactured homes.
The manufactured homeowners' total lack of bargaining power disrupts the
normal operation of market forces and renders such manufactured homeown-
ers captive to whatever terms a manufactured home park owner may choose
to impose. Although many manufactured home park owners choose not to
take advantage of their superior bargaining power, many do. This often
results in manufactured homeowners being evicted because of rents they
can no longer afford, and as a result, losing their manufactured home
altogether because there is no alternative site on which to place such
Under current law, manufactured homeowners who rent lots in manufactured
home parks have no legal remedy for an unjustifiable rent increase. It
is the goal of this legislation to provide that mechanism to the manu-
factured homeowner.
It is the purpose of this legislation to provide manufactured homeowners
with a judicial remedy when they are confronted with an unjustifiable
2017-18: A.2682/S.3231
2015-16: A.6269/S.4436
2013-14: A.3351/S.2905
2011-12: A.5029-A/S.3177-A
2009-10: A.4851-A/S.6920-A
2007-08: A.7985-A
S5436 (ACTIVE) - Bill Text download pdf
Introduced  by Sens. MAY, LAVALLE -- read twice and ordered printed, and
AN ACT to amend the real property law, in relation to providing recourse
for manufactured  homeowners  in  manufactured  home  parks,  who  are
confronted with unjustifiable rent increases
(a) Manufactured homes are a critical source of affordable housing for
residents in New York state, particularly for senior citizens seeking to
(b) Factors unique to home ownership in manufactured home parks in New
York  state  require  that  the  owners  of  such  manufactured homes be
protected from involuntary forfeiture of their homes due to unreasonable
increases in lot rent.
(c) Homeownership in such manufactured home parks differs  from  other
forms  of  homeownership as well as from the traditional landlord-tenant
ers do not control the land on which  their  manufactured  homes  exist,
they  have  no  control  over  this substantial portion of their housing
(d) Vacancies in existing manufactured home parks are  extremely  rare
in  New York state, and the cost of relocating a manufactured home, even
if such a vacancy exists, is prohibitively high and threatens the struc-
tural integrity of many manufactured homes.
(e) The  manufactured  homeowners'  total  lack  of  bargaining  power
disrupts the normal operation of market forces and renders such manufac-
tured  homeowners  captive  to  whatever  terms a manufactured home park
owner may choose to impose. Although many manufactured home park  owners
LBD03203-02-9
S. 5436                             2
choose  not  to  take advantage of their superior bargaining power, many
do. This often results in manufactured homeowners being evicted  because
of  manufactured  home  park  rents  they can no longer afford, and as a
result,  losing  their  manufactured home altogether because there is no
alternative site on which to place such home.
(f) Under current law, manufactured homeowners who rent lots in  manu-
factured home parks have no legal remedy for an unjustifiable and unrea-
sonable rent increase.
(g)  It  is  the  purpose  of this legislation to provide manufactured
homeowners with a judicial remedy  when  they  are  confronted  with  an
unjustifiable rent increase.
§  2. Subdivision e of section 233 of the real property law is amended
by adding a new paragraph 4 to read as follows:
4. ALL RENT INCREASES, INCLUDING ALL FEES, RENTS, CHARGES, ASSESSMENTS
AND UTILITIES, SHALL  BE  SUBJECT  TO  JUDICIAL  CHALLENGE  PURSUANT  TO
SECTION  TWO  HUNDRED  THIRTY-THREE-B  OF  THIS ARTICLE FOR MANUFACTURED
§ 3. Paragraph 2 of subdivision g of section 233 of the real  property
rental fees, rules and regulations prior to [a manufactured home  tenant
assuming  occupancy] ENTERING INTO A RENTAL AGREEMENT WITH A PROSPECTIVE
TENANT in the manufactured home park.
§ 4. The real property law is amended by adding a new section 233-b to
§ 233-B. UNJUSTIFIED RENT INCREASES IN MANUFACTURED HOME  PARKS.    1.
LOCAL  OPTION.  THE PROVISIONS OF THIS SECTION SHALL APPLY IN ANY COUNTY
IN WHICH THE GOVERNING BOARD OF SUCH  COUNTY  HAS  PASSED  A  LOCAL  LAW
ADOPTING THE PROVISIONS OF THIS SECTION.
2.  SCOPE. TO BE ELIGIBLE FOR THIS REMEDY, THE OWNERS OF AT LEAST FIVE
PERCENT (5%) OF THE MANUFACTURED HOMES AFFECTED BY THE INCREASE IN  RENT
WITHIN THE MANUFACTURED HOME PARK SHALL BE PETITIONERS. THE MANUFACTURED
HOME SHALL BE THE PRIMARY RESIDENCE OF EACH PETITIONER.
3.  PRIMA FACIE CASE. AN INCREASE IN RENT WHICH EXCEEDS THE PERCENTAGE
INCREASE IN THE CONSUMER PRICE INDEX SINCE THE CURRENT LOT  RENT  BECAME
EFFECTIVE  MAY  BE  CHALLENGED BY AN AGGRIEVED MANUFACTURED HOMEOWNER AS
UNJUSTIFIED. THE TERM "CONSUMER PRICE INDEX" MEANS THE  INDEX  PUBLISHED
MONTHLY  BY  THE  UNITED  STATES  DEPARTMENT  OF  LABOR, BUREAU OF LABOR
STATISTICS, FOR  THE  APPLICABLE  NEW  YORK  REGION.  IN  THIS  SECTION,
"INCREASE  IN  LOT  RENT"  INCLUDES  ALL  COST  INCREASES, INCLUDING ALL
INCREASED RENT, FEES, CHARGES, ASSESSMENTS AND UTILITIES.
4. JOINDER. MULTIPLE AGGRIEVED MANUFACTURED HOMEOWNERS MAY JOIN IN THE
SAME ACTION WHERE THERE IS A COMMON QUESTION OF LAW OR FACT.
5. VENUE AND STATUTE OF LIMITATION. WITHIN NINETY DAYS OF  THE  NOTICE
OF  THE PROPOSED INCREASE, AN AGGRIEVED MANUFACTURED HOMEOWNER MAY CHAL-
LENGE SUCH INCREASE BY FILING AN ACTION IN THE  COUNTY  WHERE  THE  REAL
PROPERTY  IS  LOCATED  SEEKING  A  DECLARATORY  JUDGMENT  THAT  THE RENT
INCREASE IS UNJUSTIFIABLE.
6. PRESUMPTION.  IN ANY PROCEEDINGS UNDER THIS SECTION THERE SHALL  BE
AN IRREBUTTABLE PRESUMPTION THAT A RENT INCREASE IS JUSTIFIABLE WHEN THE
AMOUNT  OF  SUCH INCREASE DOES NOT EXCEED THE TENANT'S PRO-RATA SHARE IN
OPERATING COSTS AND PROPERTY TAXES FOR THE  MANUFACTURED  HOME  PARK  IN
WHICH THE TENANT RESIDES.
S. 5436                             3
7.  STANDARD FOR JUDICIAL REVIEW.  IN DETERMINING WHETHER THE PROPOSED
RENT INCREASE IS UNJUSTIFIABLE, THE COURT SHALL CONSIDER:
(A)   INCREASES  IN  THE  MANUFACTURED  HOME  PARK  OWNER'S  OPERATING
(B) INCREASES IN THE MANUFACTURED HOME PARK OWNER'S PROPERTY TAXES  ON
SUCH PARK.
(C) INCREASES IN THE COST OF DEBT SERVICE WHICH IS DIRECTLY RELATED TO
ACQUISITION OR CAPITAL IMPROVEMENTS IN THE MANUFACTURED HOME PARK.
(D) THE RETURN ON THE MANUFACTURED HOME PARK OWNER'S EQUITY INVESTMENT
OVER  THE  PAST  THREE  YEARS,  AND THE REASONS OFFERED BY THE OWNER FOR
SEEKING AN INCREASE IN THE RETURN ON HIS OR HER INVESTMENT.
(E) A SAMPLING OF CURRENT LOT RENTS IN THE REGION IN WHICH THE PARK IS
(F) ANY OTHER COSTS ASSERTED BY THE MANUFACTURED HOME PARK OWNER WHICH
ARE RELEVANT AND PROBATIVE OF THE NEED FOR AN INCREASE.
8. CONDITIONAL APPROVAL. THE COURT MAY CONDITION ITS APPROVAL  OF  ANY
JUSTIFIED  INCREASE  UPON  THE REDRESS OF CONDITIONS IN THE MANUFACTURED
HOME PARK WHICH THREATEN THE HEALTH AND SAFETY OF THE MANUFACTURED  HOME
PARK TENANTS.
9.  ESCROW.    WHILE  A  CHALLENGE TO A RENT INCREASE PURSUANT TO THIS
SECTION IS PENDING, MANUFACTURED HOME PARK TENANTS SHALL PAY THE  AMOUNT
OF THE RENT INCREASE TO THE MANUFACTURED HOME PARK OWNER, WHO SHALL HOLD
SUCH  AMOUNTS IN ESCROW PENDING A MEDIATED AGREEMENT BETWEEN THE PARTIES
OR A FINAL DECISION FROM THE COURT, PROVIDED, HOWEVER, THAT NO  MANUFAC-
TURED  HOME  PARK  TENANT  SHALL  BE EVICTED FOR NON-PAYMENT OF THE RENT
INCREASE PRIOR TO A FINAL DISPOSITION OF THE MATTER BY THE COURT IN  THE
COUNTY WHERE THE MANUFACTURED HOME PARK IS LOCATED. FAILURE BY THE MANU-
FACTURED  HOME  PARK  OWNER  TO  PLACE  SUCH CHALLENGED RENT INCREASE IN
ESCROW SHALL BE PUNISHABLE BY A CIVIL PENALTY  OF  NOT  MORE  THAN  FIVE
HUNDRED  DOLLARS.  IF THE PETITIONERS APPEAL, THE MANUFACTURED HOME PARK
OWNER MAY REMOVE THE RENT INCREASE FUNDS FROM ESCROW, MINGLE SUCH  FUNDS
WITH  ANY  OTHER FUNDS, AND EVICT A TENANT WHO HAS NOT PAID THE INCREASE
FOR NON-PAYMENT OF RENT. IF THE COURT ENTERS A FINAL JUDGMENT  DECLARING
THE  RENT  INCREASES OR ANY PART THEREOF UNJUSTIFIABLE, THE MANUFACTURED
HOME PARK OWNER SHALL REFUND THE AMOUNT  OF  UNJUSTIFIABLE  INCREASE  TO
EACH TENANT HOUSEHOLD.
Joint Statement From Senate Majority Leader Andrea Stewart-Cousins And Assembly Speaker Carl Heastie On Tenant Protections