Requires manufactured home park owners to provide a written justification for rent increases in excess of three percent of the current rent

• Democratic18
• Republican5

◆ The sponsor's argument

Why James Skoufis says this is needed

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

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.