N.Y. Real Property Law § 233-b: Manufactured home parks; rent increases

* § 233-b. Manufactured home parks; rent increases. 1. The provisions

of this section shall apply to all manufactured homes located in a

manufactured home park as defined in section two hundred thirty-three of

this article, however manufactured homes located in manufactured home

parks that are subject to a regulatory agreement with a governmental

entity to preserve affordable housing or that otherwise limits rent

increases are exempt from the provisions of this section.

2. Increases in rent shall not exceed a three percent increase above

the rent since the current rent became effective. In this section, rent

shall mean all costs, including all rent, fees, charges, assessments,

and utilities. Notwithstanding the above, a manufactured home park owner

is permitted to increase the rent in excess of three percent above the

rent since the current rent became effective, due to:

(a) Increases in the manufactured home park owner's operating

expenses.

(b) Increases in the manufactured home park owner's property taxes on

such park.

(c) Increases in costs which are directly related to capital

improvements in the park.

3. An increase above three percent may be challenged by an aggrieved

manufactured homeowner as unjustified. Multiple aggrieved manufactured

homeowners may join in the same action where there is a common question

of law and fact.

4. Within ninety days of the proposed increase, an aggrieved

manufactured homeowner may challenge such increase by filing an action

in the court of appropriate subject matter jurisdiction where the real

property is located seeking a declaratory judgment that the rent

increase is unjustifiable.

5. In any proceeding 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

manufactured home owner resides.

6. (a) In determining whether a rent increase is permissible, the

court shall consider the provisions of paragraphs (a), (b) and (c) of

subdivision two of this section. Notwithstanding the above, rent

increases shall not exceed six percent above the rent since the current

rent became effective, except upon the approval of a temporary hardship

application by the court. In addition to the provisions of this

paragraph and paragraphs (b) and (c) of this subdivision the court shall

take into account the following factors when determining whether to

grant a temporary hardship application:

(i) The amount of increase being sought by the park owners;

(ii) The ability of the manufactured home owner to pay such increase

including whether the increase would have an unreasonable adverse impact

on the manufactured home owner;

(iii) The amount of time and notice the manufactured home owner may

need in order to pay a temporary rent increase;

(iv) The duration the park owners intend for the temporary rent

increase to last;

(v) The cause of the hardship the rent increase is being requested to

alleviate, including whether the hardship was due to owner negligence

and malfeasance;

(vi) The ability of the park owners to utilize other means besides a

rent increase to alleviate said hardship;

(vii) The likelihood that the property the manufactured home park is

located on will go into foreclosure if a temporary rent increase above

six percent is not granted;

(viii) Any other factor that will jeopardize the ability of the park

to legally operate.

(b) A court order approving a temporary hardship application shall

state for each manufactured home owner:

(i) The amount of the rent increase;

(ii) The date the rent increase is to take effect;

(iii) The date the increase is to end;

(iv) The amount the rent will return to; and

(v) The court's findings as to the factors necessitating a temporary

increase.

(c) Upon a finding by the court that the manufactured home park should

be granted a hardship exemption, the amount of any rent increase shall

be the minimum amount to alleviate the hardship. An order granting a

temporary rent increase shall not exceed six months. The order must be

served on the manufactured home owners and all known legal tenants

pursuant to the rules of civil procedure within thirty days of the court

order, the cost of which shall be on the manufactured home park owner.

7. The court may condition its approval of any rent increase upon the

redress of conditions in the manufactured home park which threaten the

health and safety of the manufactured home tenant.

8. 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 courts, provided, however, that no manufactured home

park tenant shall be evicted for non-payment of the rent increase prior

to the final disposition of the matter by the court in the county where

the manufactured home park is located. Failure by the manufactured 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 commence a nonpayment proceeding in the court of appropriate

jurisdiction against a tenant who has not paid the increase of rent. If

the court enters a final judgment declaring the rent increases or any

part thereof unjustifiable and impermissible, the manufactured home park

owner shall refund the amount of the impermissible increase to each

tenant household.

* NB There are 2 § 233-b's