The New York State Assembly has given final passage to legislation sponsored by Assemblyman Fred Thiele and Assemblyman Anthony Palumbo which will give counties home rule authority to prevent rent gouging in mobile home parks. The legislation passed 94-34.

Under the legislation, where counties pass a local law, homeowners in mobile home parks may bring a civil action in County Court to stop rent gouging. Rent increases could only be challenged if they are above the Consumer Price Index. Homeowners have 90 days to bring the action after notice of a rent increase. Residents may join together and bring a class action. A rent increase is presumed justifiable if the rent does not exceed increases in operating costs and taxes.

A judge would look at several factors to determine if a rent increase is justified, including: operating expenses, taxes, capital improvement costs and debt service, return on investment, rents at other parks, and other costs. A rent increase may be approved conditioned upon health and safety improvements being made to the park.

Pending the court action, all rent increases must be placed in escrow. If the homeowners win, they get a refund. If the park owner wins, the money is retained by the park owner.

Thiele stated, “Mobile home tenants lack bargaining power because of the unique business arrangement in mobile home parks. Residents own their house, but not the land, which they rent from the park owner. Further, there is a lack of available home sites and moving these homes is costly. Finally, a substantial number of residents are senior citizens on fixed incomes, who find mobile homes to be one of the few affordable options, if they want to stay on Long Island. These factors make them susceptible to rent gouging by the unscrupulous. This remedy will deter rent gouging and will provide a remedy when it does occur.”

The bill now goes to the State Senate for consideration.