Assemblyman Fred W. Thiele, Jr. (I, D, WF, REF - Sag Harbor) today announced the enactment of the “Housing Stability and Tenant Protection Act of 2019,” an omnibus affordable housing and rent regulations bill that he co-sponsored. Assemblyman Thiele has been the prime sponsor of legislation to protect homeowners in manufactured home parks confronted with unjustifiable rent increases for over a decade, and provisions of that legislation have been incorporated into this omnibus bill in Part O. This bill was passed by both the State Assembly and Senate and signed into law by the Governor on Friday, June 14.

Manufactured homes are a critical source of affordable housing for residents 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 homeownership as well as from the traditional landlord-tenant relationship. Unlike other homeowners, because the manufactured homeowners do not control the land on which their home exists. They have no control over this substantial portion of their housing costs. Often, this money is not reinvested into the park, and residents are forced to live in unsuitable conditions from lack of proper maintenance and poor management. 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, under previous law, disrupted the normal operation of market forces and renders such manufactured homeowners captive to whatever terms a manufactured home park owner may choose to impose. Although many manufactured home park owners chose not to take advantage of their superior bargaining power, many did. This often resulted in manufactured homeowners being evicted because of rents they could no longer afford, and as a result, losing their manufactured home altogether because there was no alternative site on which to place such home. Also under previous law, manufactured homeowners who rented lots in manufactured home parks had no legal remedy for an unjustifiable rent increase.

Highlights of this new law include provisions to address the following:

• Unjustifiable Rent Increases: This law will limit rent increases for manufactured home parks to 3% since the lot rent first became effective, unless due to increased operating expenses, property taxes, or costs associated with capital improvements. Any increase above 3% can be challenged by park tenants in court as unjustifiable. If the proposed rent increase were above 6%, the park owner would have to apply to the court for a temporary hardship exemption. Any increases above 6% allowed under this exemption would need to cease after 6 months at most.
• Rent-To-Own Protections: For the first time, this law will regulate rent-to-own contracts for manufactured homes, and provide legal protections tenants attempting to purchase a home from a manufactured home park owner or operator.
• Right of First Refusal: If a prospective purchaser intends to change the use of the land, this legislation will extend the amount of time tenants have to make an offer to purchase the park themselves from 120 to 140 days.
• Eviction Rights and Stipend for Moving Expenses: This law creates new protections for manufactured home owners if a park owner or operator decides to change the use of the land, by prohibiting the park owner from starting an eviction case against all manufactured park home owners for two years after the notice date, an increase from six months under the old law. Additionally, eviction for the purpose of changing the use of the land is prohibited, unless the park owner provides the homeowner a stipend of up to $15,000 when they are evicted.
• Homeowner’s Bill of Rights: This law requires additional reports from the park owner to the Department of Housing & Community Renewal (DHCR), and requires additional notices to be given to tenants regarding their rights and responsibilities, and the rules and regulations of the park.

“From Riverhead to Akron, this new law will finally provide manufactured homeowners with legal protections against unconscionable rent increases. Tens of thousands of New Yorkers live in mobile and manufactured home parks, including senior citizens, those on fixed incomes, and young families in their first homes,” Assemblyman Thiele stated. “These residents pay taxes and are integral parts of our communities. I am so pleased that after years of fighting for these protections, manufactured homeowners across the state will finally be able to feel secure in their homes.”