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PAG LIN 1 1 Section 1. NEW SECTION. 562D.1 SHORT TITLE &endash; PURPOSE. 1 2 1. This chapter may be cited as the "Manufactured Home 1 3 Owner's Bill of Rights Act". 1 4 2. The general assembly finds that unregulated market 1 5 forces result in unfair and unconscionable practices in manu- 1 6 factured housing park tenancies and that, once a home is 1 7 situated on a park site, the difficulty and cost of moving the 1 8 home gives the park operator disproportionate power in setting 1 9 the rent, fees, rules, and other aspects of the tenancy. The 1 10 shortage of park spaces, existing law as to eviction rights, 1 11 park operator restrictions of the resident's sale of the home, 1 12 and park owner changes in the land use of the park exacerbate 1 13 the problems of residents. The purpose of this chapter is to 1 14 protect residents from a park operator's unconscionable 1 15 actions and to provide residents with a minimum of security in 1 16 their homes. 1 17 Sec. 2. NEW SECTION. 562D.2 DEFINITIONS. 1 18 As used in this chapter, unless the context otherwise 1 19 requires: 1 20 1. "Manufactured home" means a residential structure, 1 21 transportable in one or more sections, which is eight feet or 1 22 more in width, and thirty-two body feet or more in length, 1 23 built on an integral chassis, and designed to be used as a 1 24 dwelling when connected to the required utilities. "Manu- 1 25 factured home" includes the plumbing, heating, air 1 26 conditioning, and electrical systems contained in the 1 27 structure. A manufactured home includes a mobile home and a 1 28 modular home as defined in section 435.1. A manufactured home 1 29 does not include travel trailers, camping trailers, truck 1 30 campers, or motor homes which are primarily designed as 1 31 temporary living quarters for recreational camping or travel 1 32 use and which either have their own motor power or are mounted 1 33 on or drawn by another vehicle. 1 34 2. "Manufactured housing park" or "park" means a use of 1 35 land in which four or more lots or spaces are offered for rent 2 1 or lease for the placement of manufactured housing and in 2 2 which the primary use of the park or the manufactured home 2 3 section of the park is residential. 2 4 3. "Park operator" means an owner or manager of a 2 5 manufactured housing park, including park employees and any 2 6 subsequent purchaser of a park. 2 7 4. "Rental agreement" means any agreement between a park 2 8 operator and a resident establishing the terms and conditions 2 9 whereby a manufactured home is placed upon a rented or leased 2 10 lot in a manufactured housing park. A lease is a rental 2 11 agreement. 2 12 5. "Resident" is a person who has a tenancy in a 2 13 manufactured housing park under a rental agreement. 2 14 6. "Resident association" means any organization of 2 15 residents representing a majority of the residents of the 2 16 park, which is organized for the purpose of resolving matters 2 17 relating to living conditions in the manufactured housing 2 18 park. 2 19 7. "Use-based charges" means charges for services or 2 20 facilities that are based on the amount of the resident's use 2 21 of a particular service or facility. A charge is not use- 2 22 based if a resident is charged when the resident does not use 2 23 the service or facility, or if different residents are 2 24 assessed the same charge for using different levels of service 2 25 or facilities. 2 26 Sec. 3. NEW SECTION. 562D.3 UNFAIR AND DECEPTIVE 2 27 PRACTICES. 2 28 A park operator shall not commit any of the following acts: 2 29 1. Engage in unfair or deceptive acts or practices or 2 30 unfair methods of competition. 2 31 2. Require, as a condition to the rental of any site, the 2 32 purchase of a manufactured home from the park operator, or any 2 33 dealer, manufacturer, or agent named by the operator. 2 34 3. Represent to any person that the purchase of a 2 35 manufactured home from the park operator or any dealer, 3 1 manufacturer, or agent named by the operator will give the 3 2 purchaser an advantage over others in the rental or continued 3 3 occupancy of a site. 3 4 4. Discriminate or threaten to discriminate regarding the 3 5 amount of rental charges or in any other respect against a 3 6 resident for failure of the resident to purchase a 3 7 manufactured home from the operator or any dealer, 3 8 manufacturer, or agent named by the operator. 3 9 5. Solicit or receive any payment or other thing of value 3 10 from any person upon the representation or understanding that 3 11 the consideration will give that person an advantage over 3 12 others in the rental or continued occupancy of a site. 3 13 6. Use a manufactured housing park site to display an 3 14 unoccupied manufactured home offered for sale, or rent a site 3 15 to a manufactured housing dealer for purposes other than 3 16 accommodation of a manufactured home occupied as a residence, 3 17 if the use or rental of the site leaves no site in the manu- 3 18 factured housing park available to a prospective resident who 3 19 does not purchase a manufactured home from the operator or 3 20 manufactured housing dealer. 3 21 Sec. 4. NEW SECTION. 562D.4 RENTAL TERMS AND AGREEMENTS. 3 22 1. All rental agreements shall be for a term of five 3 23 years, unless a longer period is mutually agreed upon by both 3 24 the resident and park operator. 3 25 2. A resident who executes a rental agreement may cancel 3 26 the agreement by notifying the park operator in writing within 3 27 seven days of the resident's execution of the rental 3 28 agreement. 3 29 3. The maximum amount that a park operator may establish 3 30 and seek as damages for a resident's early termination of a 3 31 rental agreement is two months' rent, except that if the 3 32 manufactured housing space is reoccupied within twenty days of 3 33 vacating, the damages shall be a maximum of one month's rent. 3 34 4. During the first rental term, a park operator may 3 35 propose whatever rental amount the operator chooses, including 4 1 rental increases, if the amounts or methods of determining the 4 2 increases are fully and clearly determinable and disclosed in 4 3 the rental agreement, are not unreasonable, and are binding on 4 4 the park operator for the term of the rental agreement. 4 5 5. A park operator may require, at the inception of a 4 6 resident's first rental agreement, a security deposit not 4 7 exceeding one month's rent. The security deposit, as well as 4 8 interest at a rate of five percent per annum, shall be 4 9 returned to the resident when the lease is terminated if the 4 10 resident has paid in full all rent and other charges due, has 4 11 caused only minimal damage to the leased premises, and has 4 12 left the lot reasonably clean and free of debris. Within 4 13 fifteen days of the termination of the rental agreement, the 4 14 park operator shall provide the resident with an itemized list 4 15 of charges due and damages to the premises and the estimated 4 16 cost of repair for each, and make payment for the difference 4 17 between the security deposit and the charges due and estimated 4 18 cost of repair of damages to the premises. Failure to comply 4 19 with this requirement within fifteen days constitutes 4 20 admission by the park operator that no damages are due, and 4 21 the park operator shall immediately remit to the resident the 4 22 full amount of the security deposit. 4 23 6. At the expiration of a rental agreement, the agreement 4 24 will be automatically renewed for a term of five years with 4 25 the same terms as the previous rental agreement, unless the 4 26 resident notifies the park operator at least thirty days prior 4 27 to the agreement's termination of an intent to move or the 4 28 park operator seeks to change the terms of the agreement 4 29 pursuant to subsections 7 and 8. 4 30 7. Six months prior to the end of a rental term a park 4 31 operator shall offer the resident a renewal rental agreement 4 32 with a term of at least five years, a proposed rental amount, 4 33 and any fee or other changes proposed for that term. 4 34 8. If a resident does not accept the terms proposed by a 4 35 park operator pursuant to subsection 7, the park operator may 5 1 initiate a binding appraisal process, pursuant to section 5 2 562D.15, whereby an appraiser agreed to by the resident and 5 3 the park operator shall determine the fair market value of the 5 4 lot rent and other charges over the next five years, based on 5 5 the existing rental agreements of other residents in the same 5 6 park. The amount determined by the appraiser, including any 5 7 built-in rent increases, shall be binding for the next five- 5 8 year period. 5 9 9. A resident with a rental agreement which does not 5 10 comply with this chapter shall, as soon as practical, be 5 11 offered a five-year rental agreement complying with this 5 12 chapter, effective on the termination of the existing rental 5 13 agreement. If the resident does not accept the terms, the 5 14 resident may initiate a binding appraisal process, pursuant to 5 15 section 562D.15, whereby an appraiser agreed to by the 5 16 resident and park operator shall determine the fair market 5 17 value of the lot rent and other charges over the next five 5 18 years, based on new rental agreements of other residents in 5 19 the same park, and, if necessary, new rental agreements in 5 20 other comparable parks. The amount determined by the 5 21 appraiser, including any rental increases, shall be binding 5 22 for the five-year period. 5 23 10. If a park operator decreases any services which are 5 24 required by a rental agreement, the park operator shall reduce 5 25 the rental amount accordingly. If the park operator fails to 5 26 reduce the rental amount, an individual resident or a resident 5 27 association may initiate a binding arbitration proceeding, 5 28 pursuant to section 562D.15, to determine the appropriate 5 29 reduction in rent, and to determine the amount of the refund 5 30 the park operator owes residents for excessive rent payments 5 31 already made. 5 32 Sec. 5. NEW SECTION. 562D.5 OTHER FEES AND CHARGES. 5 33 1. A park operator shall not charge residents any fees or 5 34 charges other than a monthly rent charge or a security 5 35 deposit, except for use-based charges that are specified in a 6 1 rental agreement. 6 2 2. Charges for existing use-based services or facilities 6 3 shall be specified in the rental agreement, and shall only be 6 4 increased as established in the rental agreement. Any 6 5 increase shall be reasonably related to the increases in the 6 6 park operator's costs. 6 7 3. The following fees are specifically prohibited and any 6 8 rental agreement provision establishing the fees is void: 6 9 a. Entrance and exit fees. 6 10 b. Fees for a resident's resale of a manufactured home, 6 11 assignment of the lease, or sublet of a manufactured home. 6 12 c. Fees for additional family members. 6 13 d. Short-term guest fees. 6 14 e. Pet fees, unless special facilities are provided for 6 15 pets. 6 16 4. A park operator may charge a penalty for late payment 6 17 of rent or other fees after the payments are fifteen days 6 18 delinquent. The late charge shall not exceed five percent of 6 19 the amount owed and may be imposed only once for a particular 6 20 late payment. 6 21 5. A park operator's utility service charge shall not ex- 6 22 ceed prevailing residential utility rates in the vicinity, 6 23 shall be use-based as provided in subsection 2, and shall be 6 24 periodically invoiced in writing, specifying the charge, the 6 25 rate, and the amount of the utility service used. The park 6 26 operator shall post in a conspicuous place the prevailing 6 27 residential utilities rate schedule as published by the 6 28 serving utility. 6 29 6. A park operator shall not restrict the choice of 6 30 vendors from whom a resident may purchase goods or services, 6 31 or in any other way engage in conduct that discourages a resi- 6 32 dent from selecting the vendor of the resident's choice. This 6 33 subsection shall not apply to the following: 6 34 a. Snow removal, lawn care, or similar site maintenance 6 35 services performed by the operator, upon the failure of a 7 1 resident to fulfill the resident's site obligations under the 7 2 rental agreement. A charge shall not be imposed for site 7 3 maintenance services performed by the operator under this 7 4 paragraph unless the resident, if available, is given prior 7 5 notice and a reasonable opportunity to perform the resident's 7 6 obligation under the rental agreement. Charges for site 7 7 maintenance services shall be set forth in the rental 7 8 agreement, and shall be reasonable and limited to the park 7 9 operator's actual costs. 7 10 b. A nondiscriminatory prohibition against sales solicita- 7 11 tions within the manufactured housing park. 7 12 7. If the park operator sells cable or other television 7 13 service at a charge above that prevailing in the community, 7 14 there shall be a presumption that park rules restricting 7 15 antennas or otherwise restricting a resident's access or 7 16 choice of television service are unreasonable and void. 7 17 Sec. 6. NEW SECTION. 562D.6 PARK RULES. 7 18 1. The park operator may establish rules governing the 7 19 rental occupancy of a manufactured home lot and the use of 7 20 common areas and facilities, but a rule shall not be unrea- 7 21 sonable, unfair, or unconscionable. 7 22 2. Any rule which does not apply uniformly to all manufac- 7 23 tured home residents in similar situations shall create a 7 24 rebuttable presumption that the rule is unfair. 7 25 3. Each common area facility shall be open or available to 7 26 residents at reasonable hours and the hours of the common 7 27 recreational facility shall be posted at the facility. 7 28 4. If the residents of a park have formed a resident 7 29 association, then a change in a rule shall not be implemented 7 30 without the approval of the association. If the approval is 7 31 withheld, the park operator may initiate an arbitration 7 32 procedure with the resident association pursuant to section 7 33 562D.15. If the arbitrator finds that the rule change is 7 34 unreasonable, unfair, or unconscionable, the rule shall not be 7 35 implemented. If a resident association has not been 8 1 established, the rule changes shall be submitted directly to 8 2 the department of justice for review and prior approval. A 8 3 park operator or resident may appeal the approval or failure 8 4 to approve a rule to the district court of the county in which 8 5 the park is located. 8 6 5. Except in a bona fide emergency, a change in a rule 8 7 shall not be effective until at least sixty days after the 8 8 residents receive notice of the change. 8 9 6. When a rule is enforced against a resident, the 8 10 resident may seek judicial review of the rule. 8 11 Sec. 7. NEW SECTION. 562D.7 TERMS OF RENTAL AGREEMENT. 8 12 1. All rental agreements and renewal agreements shall be 8 13 in writing and signed by the park operator or manager and the 8 14 resident. The park operator shall give the resident a copy of 8 15 the park's standard rental agreement, with all park rules and 8 16 attachments, and the pamphlet required by subsection 5, at the 8 17 time the prospective resident initially contacts the park 8 18 concerning a prospective vacancy, and a completed agreement 8 19 after the rental agreement has been signed. 8 20 2. A rental agreement or renewal agreement shall contain, 8 21 but is not limited to, the following provisions: 8 22 a. The rental term, which shall be at least five years, 8 23 and a statement of the resident's right to a five-year renewal 8 24 agreement at a fair market rental value. 8 25 b. The monthly rental amount and the method for 8 26 specifically determining the amount of any changes in rent 8 27 over the lease term. If the rent amount changes over the term 8 28 of the lease, and the lease does not specify the dollar amount 8 29 of the subsequent rent levels, the rental agreement shall 8 30 clearly specify the formula or method for determining those 8 31 changes, and shall also provide examples of how the formula or 8 32 method would work in each year of the lease term. 8 33 c. The rules of the park. 8 34 d. A warranty of habitability, as specified in section 8 35 562D.8. 9 1 e. A description of the park operator's maintenance 9 2 responsibilities. 9 3 f. A list of facilities and services which the park 9 4 operator will provide. 9 5 g. Any late charges, fees, or charges for services, 9 6 including any increases during the term of the lease. If the 9 7 amount of fees or charges change over the term of the lease, 9 8 and the lease does not specify the dollar amount of the 9 9 subsequent levels of fees or charges, the rental agreement 9 10 shall specify formula or method for determining those changes, 9 11 and shall also give clear and realistic examples of how the 9 12 formula or method would work in each year of the lease term. 9 13 h. Disclosure of the park operator's reservation of the 9 14 right to evict a resident for a change in the use of the 9 15 property during the lease term. 9 16 i. If there is a temporary zoning permit for the use of 9 17 the land, the date when the zoning permit expires. 9 18 j. A description of the resident's manufactured home site 9 19 and the address or site number, and the number and location of 9 20 any accompanying automobile parking spaces. 9 21 k. The park operator's name and address for the delivery 9 22 of all official notices and also the name and telephone number 9 23 of the individual who may be contacted for emergency 9 24 maintenance, pursuant to section 562D.8, subsection 3. 9 25 l. The amount of any security deposit imposed by the park 9 26 operator. 9 27 m. Any penalties the park operator may impose for the 9 28 resident's early termination. 9 29 n. The grounds for eviction. 9 30 o. Other terms or conditions of occupancy. 9 31 p. A prominent disclosure that the resident's rights and 9 32 park operator's obligations are specified in a pamphlet 9 33 attached to the rental agreement. 9 34 q. A prominent disclosure that the resident may cancel the 9 35 rental agreement with no obligation for the next seven days 10 1 after signing the agreement. 10 2 3. A provision for rent increases or increases in fees 10 3 over the term of the rental agreement shall be initialed by 10 4 the resident. 10 5 4. The rental agreement shall be clearly written in under- 10 6 standable language, in at least ten point type, in a form and 10 7 presentation approved by the department of justice. 10 8 5. The attorney general shall prepare and distribute 10 9 within ninety days of the effective date of this Act a 10 10 pamphlet specifying a resident's rights and a park operator's 10 11 obligations as established in this chapter. 10 12 6. The park operator shall attach one copy of the pamphlet 10 13 specified in subsection 5 to each rental agreement. 10 14 7. A rental agreement shall not contain any terms which 10 15 are illegal, unfair, unconscionable, or unenforceable. 10 16 Sec. 8. NEW SECTION. 562D.8 WARRANTY OF HABITABILITY &endash; 10 17 OBLIGATIONS OF PARK OPERATOR. 10 18 1. In any rental agreement a park operator is deemed to 10 19 covenant and warrant that the space and its associated 10 20 facilities are fit for human habitation. 10 21 2. The park operator shall do all of the following: 10 22 a. Comply with codes, statutes, ordinances, and adminis- 10 23 trative rules applicable to the manufactured housing park. 10 24 b. Maintain all common areas of the park in a clean and 10 25 safe condition. 10 26 c. Maintain in good working condition all electrical 10 27 appliances, plumbing facilities, sanitary facilities, and 10 28 recreational facilities which the park operator furnishes. 10 29 d. Maintain and protect all utilities provided to the 10 30 manufactured home and keep water and sewer lines in good 10 31 working condition. Maintenance responsibilities shall extend 10 32 to the point where the normal manufactured home utility hook- 10 33 ups connect to those provided by the park operator or utility 10 34 company. 10 35 e. Maintain in a safe and secure location individual 11 1 mailboxes for the residents. 11 2 f. Maintain roads within the manufactured housing park in 11 3 good and safe condition including snow removal and adequate 11 4 drainage, and be responsible for damage to a vehicle which is 11 5 the direct result of any unrepaired poorly maintained access 11 6 road within the park. 11 7 g. Take reasonable steps to exterminate rodents, vermin, 11 8 or other pests dangerous to the health and safety of the 11 9 resident when infestation exists on the common premises or in 11 10 the interior of a manufactured home as a result of infestation 11 11 existing on the common premises. 11 12 h. Maintain the premises and regrade them when necessary 11 13 to prevent the accumulation of stagnant water and the detri- 11 14 mental effects of moving water. 11 15 i. Take all necessary steps to maintain the integrity of 11 16 the foundation of the resident's manufactured home. 11 17 j. Keep the common areas of the park free from any species 11 18 of weed or plant growth which is noxious or detrimental to the 11 19 health of the residents. 11 20 k. Provide for the removal of garbage, rubbish, and other 11 21 waste incidental to the occupancy of the manufactured housing 11 22 space. 11 23 l. Cooperate with and assist residents in applying for 11 24 property tax abatements, as applicable. 11 25 3. The park operator shall authorize a manager, assistant 11 26 manager, or other employee to make repairs that are the 11 27 responsibility of the park operator or enter into a contract 11 28 with a third party for the repairs. The park operator shall 11 29 contract with a third party to provide emergency repairs that 11 30 are the responsibility of the park operator on occasions when 11 31 the manager, assistant manager, or other designated employee 11 32 is not physically present in the park, and shall notify each 11 33 resident of the telephone number where the third party may be 11 34 reached directly. 11 35 4. If the park operator fails to comply with the 12 1 requirements of this section, the resident may recover damages 12 2 for the breach under section 562D.15 and also may notify the 12 3 park operator of the resident's intention to correct the 12 4 condition at the park operator's expense. After being 12 5 notified by the resident in writing, if the park operator 12 6 fails to comply within fifteen days or more promptly, as 12 7 conditions reasonably require in case of emergency, the 12 8 resident may cause the work to be done by a contractor and, 12 9 after submitting to the park operator an itemized statement, 12 10 deduct from the resident's rent the actual and reasonable cost 12 11 of the work. 12 12 Sec. 9. NEW SECTION. 562D.9 RESIDENT ASSOCIATIONS. 12 13 1. The membership of a resident association may elect 12 14 officers of the association at a meeting at which a majority 12 15 of the members are present. Except in emergency situations, 12 16 the resident association shall provide notice to all residents 12 17 of any association meeting at least seven days prior to the 12 18 meeting. All residents may attend meetings, but the park 12 19 operator and the operator's employees shall not be members and 12 20 shall not attend meetings unless specifically invited to a 12 21 particular portion of a meeting. A resident association may 12 22 not impose fees, dues, or assessments upon members or the 12 23 residents unless two-thirds of the members or residents agree 12 24 to the specific fees, dues, or assessments. An officer or 12 25 member of a resident association shall not be personally 12 26 financially responsible for the acts or omissions of the 12 27 association or another officer or member of the association. 12 28 2. A park operator shall not increase a resident's rent or 12 29 decrease services, change park rules, bring or threaten to 12 30 bring an action for eviction or other civil action, or take 12 31 any other action in retaliation after any of the following 12 32 occur: 12 33 a. The resident has expressed an intention to complain or 12 34 has complained to a governmental agency about conditions in 12 35 the park. 13 1 b. The resident has made any complaint in good faith to 13 2 the park operator. 13 3 c. The resident has filed or expressed an intention to 13 4 file a lawsuit or administrative action against the park 13 5 operator. 13 6 d. The resident has organized or is a member of a resident 13 7 association. 13 8 e. The resident has performed or expressed intent to 13 9 perform any other act for the purpose of asserting, protect- 13 10 ing, or invoking the protection of any right secured to 13 11 residents under federal, state, or local law. 13 12 3. An attempt to evict a resident, except for nonpayment 13 13 of rent, within six months after the resident has taken an 13 14 action specified in subsection 2, shall create a rebuttable 13 15 presumption that the eviction action is in retaliation against 13 16 the resident. 13 17 4. A park operator shall not harass or threaten a resident 13 18 association, or engage in unfair or deceptive conduct to 13 19 inhibit or interfere with the creation or operation of an 13 20 association by the residents. 13 21 5. A park operator shall permit meetings by a resident 13 22 association or residents relating to manufactured home living 13 23 or social or educational purposes, including forums for or 13 24 speeches by public officials or candidates for public office. 13 25 6. A park operator shall meet and consult with residents 13 26 upon written request, within thirty days of the request, 13 27 either individually, collectively, or with representatives of 13 28 a group of residents on the following matters: 13 29 a. Amendments to park rules and regulations. 13 30 b. Standards for maintenance of physical improvements in 13 31 the park. 13 32 c. Addition, alteration, or deletion of services, equip- 13 33 ment, or physical improvements. 13 34 7. Except in the case of an emergency or when the resident 13 35 has abandoned the manufactured home, a park operator shall not 14 1 enter a manufactured home without the prior written consent of 14 2 the resident. The consent may be revoked in writing by the 14 3 resident at any time. The park operator shall have a right of 14 4 entry upon the land where a manufactured home is situated for 14 5 maintenance of utilities, for maintenance of the premises, and 14 6 protection of the manufactured housing park, at any reasonable 14 7 time, but not in a manner or at a time which would interfere 14 8 with the resident's quiet enjoyment. 14 9 Sec. 10. NEW SECTION. 562D.10 EVICTION &endash; FORECLOSURE. 14 10 1. The park operator may terminate the rental agreement by 14 11 following the procedures as provided in subsection 4 and for 14 12 only one or more of the following reasons: 14 13 a. Nonpayment of rent, as specified in subsection 2. 14 14 b. Violation of a park rule, as specified in subsection 3. 14 15 c. Disorderly conduct that results in disruption of the 14 16 rights of others to the peaceful enjoyment and use of the 14 17 premises, endangers other residents or park personnel, or 14 18 causes substantial damage to the park premises. 14 19 d. The resident's conviction of a crime, the commission of 14 20 which threatens the health, safety, or welfare of the other 14 21 residents or the park operator, as specified in subsection 3. 14 22 e. Changes in the use of the land if the requirements of 14 23 section 562D.12 are met. 14 24 2. A park operator shall not institute eviction procedures 14 25 pursuant to subsection 4 for nonpayment of rent until forty- 14 26 five days have elapsed from the date the resident receives 14 27 notice that rent is delinquent, and only if the resident has 14 28 not tendered that delinquent payment during the forty-five-day 14 29 period. Failure to pay a fee or late charge is not grounds 14 30 for eviction. A payment made by a resident to a park operator 14 31 shall be attributed first to delinquent rent payments, then to 14 32 current rent payments, and last to fees, charges, or late 14 33 fees. 14 34 3. Violation of a park rule or regulation shall only be 14 35 grounds for eviction if the rule has been properly established 15 1 pursuant to section 562D.6, and the rule is not unfair, 15 2 unreasonable, or unconscionable; the resident has had at least 15 3 sixty days' notice of the rule before the violation took 15 4 place; the rule violation is likely to continue or recur; and 15 5 the continuing violation or recurrence would have a signifi- 15 6 cant adverse impact on the park or its residents. The conduct 15 7 specified in subsection 1, paragraph "c", shall only be 15 8 grounds for eviction if there is a likelihood of future 15 9 conduct that would also be grounds for eviction pursuant to 15 10 that paragraph. 15 11 4. The park operator may terminate the rental agreement or 15 12 evict the resident only through court order. The court shall 15 13 determine if the grounds for eviction as provided in this 15 14 section have been met. An eviction shall not be ordered if 15 15 the court determines that the eviction proceeding is in 15 16 retaliation for the resident's conduct, as provided in section 15 17 562D.9, subsection 2 or 3. 15 18 5. In any eviction action for nonpayment of rent, the 15 19 resident shall be entitled to raise, by defense or counter- 15 20 claim, any claim against the park operator relating to or 15 21 arising out of the tenancy for breach of warranty, for breach 15 22 of the rental agreement, or violation of any law. The amounts 15 23 which the resident may claim shall include, but shall not be 15 24 limited to, the difference between the agreed-upon rent and 15 25 the fair value of the use and occupation of the manufactured 15 26 home lot, any amounts reasonably spent by the resident to 15 27 repair defects in the manufactured housing park, and any 15 28 damages as provided in section 562D.16. The court, upon 15 29 hearing, may require the resident to deposit with the clerk of 15 30 the district court the fair value of the use and occupation of 15 31 the premises less the amount awarded the resident for any 15 32 claim under this section, or installments periodically as the 15 33 court may direct, for the occupation of the premises. The 15 34 funds may be expended for the repair of the premises by 15 35 certain persons as the court after hearing may direct, 16 1 including, if appropriate, a receiver. When all of the 16 2 conditions found by the court have been corrected, the court 16 3 shall direct that the balance of funds, if any, remaining with 16 4 the clerk shall be paid to the park operator. 16 5 6. Any court order for eviction based on the resident's 16 6 nonpayment of rent shall specify that the sheriff shall not 16 7 serve an eviction notice for at least thirty days after the 16 8 court order and that the resident may cure the eviction order 16 9 by paying the full amount due up until the time the resident 16 10 is actually evicted by the sheriff. A court order for 16 11 eviction for reasons other than nonpayment of rent may specify 16 12 conditions whereby the resident may cure the violation and 16 13 remain in the tenancy. 16 14 7. Notwithstanding section 554.9503, a secured party, in 16 15 taking possession of a manufactured home, shall proceed 16 16 through judicial process. 16 17 8. A resident who has been evicted from the park shall 16 18 have one hundred twenty days in which to sell the resident's 16 19 manufactured home in the park. The resident shall be 16 20 responsible for paying the rental amount during that period 16 21 and for regular maintenance of the manufactured home lot 16 22 during the one-hundred-twenty-day period. The park shall have 16 23 a lien on the manufactured home to the extent the payments are 16 24 not made or the maintenance is not performed, and during that 16 25 period, no one may reside in the manufactured home. 16 26 Sec. 11. NEW SECTION. 562D.11 SALE OF HOME &endash; LEASE. 16 27 1. A park operator shall not deny any resident the right 16 28 to sell or interfere with the sale of a manufactured home on a 16 29 rented space or require the resident to remove the home from 16 30 the space solely on the basis of a sale of the home. A park 16 31 operator shall not limit the sale of homes on the basis of the 16 32 home's age or physical condition or in any way misrepresent 16 33 that the homes may not be sold. 16 34 2. A park operator or employee of the park shall not act 16 35 as an agent or broker in the sale of a resident's manufactured 17 1 home, nor shall the park operator or an employee receive a 17 2 commission or fee from the sale of any home owned by a 17 3 resident. 17 4 3. A park operator shall not place unreasonable, unfair, 17 5 or discriminatory restrictions on for-sale signs or on access 17 6 to the park by prospective purchasers or realtors, or 17 7 interfere with a resident's efforts to sell a manufactured 17 8 home. 17 9 4. Except as specified in subsections 5 and 6, a resident 17 10 shall have the right to assign the rental agreement to the 17 11 purchaser of the resident's manufactured home, or to sublease 17 12 the manufactured home site. 17 13 5. The resident shall provide the park operator with 17 14 notice of any assignment or sublease, and the park operator 17 15 may only disapprove of the assignment or sublease if, within 17 16 seven calendar days, the park operator provides the resident 17 17 with written notice of the disapproval with the reasons for 17 18 the disapproval stated in the notice. However, disapproval 17 19 shall only be for reasons provided in subsection 6. 17 20 6. The park operator may disapprove the assignment of a 17 21 rental agreement or a sublease only if the assignee or 17 22 sublessee does not have the financial ability to pay the 17 23 rental amount or would pose an unreasonable hazard to the 17 24 safety or peaceful enjoyment of the residents of the 17 25 manufactured housing park. The age or condition of the 17 26 manufactured home is not grounds for disapproving an assign- 17 27 ment or sublease. The park operator shall not impose an 17 28 application or other fee on the prospective assignee or 17 29 sublessee. The park operator shall not disapprove an 17 30 assignment from the resident to a creditor of the resident. 17 31 7. The resident or prospective sublessee or assignee may 17 32 seek judicial review of the park operator's disapproval, and 17 33 the burden shall be on the park operator to prove that the 17 34 disapproval was for reasons permitted by subsection 6 and that 17 35 the disapproval was objectively reasonable and in good faith. 18 1 If the court finds that the disapproval was not justified, the 18 2 court shall order the assignment or sublease of the rental 18 3 agreement and award any actual damages, costs, and reasonable 18 4 attorney's fees to the resident or prospective sublessee or 18 5 assignee. If the court finds that the disapproval by the park 18 6 operator was not in good faith, the court shall instead award 18 7 treble damages, but not less than two months' rent, costs, and 18 8 attorney fees. 18 9 Sec. 12. NEW SECTION. 562D.12 LAND USE CHANGE. 18 10 1. The park operator may terminate a rental agreement in 18 11 order to change the park's land use only if all of the 18 12 following conditions are met: 18 13 a. The rental agreement or renewal agreement clearly and 18 14 conspicuously discloses a change in land use as a ground for 18 15 terminating the rental agreement. 18 16 b. Notice is sent to the resident as specified by subsec- 18 17 tion 2. 18 18 c. Payment has been made to the resident pursuant to 18 19 subsection 4 or the resident's home has been relocated, pur- 18 20 suant to subsection 5. 18 21 d. The park operator has a present intent to change the 18 22 land use to a use other than a manufactured housing park. 18 23 2. To terminate a rental agreement for a change in land 18 24 use, the park operator shall send notice to the resident at 18 25 least eighteen months before the change in land use, 18 26 specifying the date of the changed land use, and that the 18 27 resident, at any time during the next twelve months, may elect 18 28 to sell the home to the park for fair market value as 18 29 determined by an independent appraiser, or to have the park 18 30 operator, at the operator's expense, relocate the home to 18 31 another park within a one-hundred-mile radius. The notice 18 32 shall also inform the resident that the resident may elect the 18 33 date of the home sale or relocation at any time from receipt 18 34 of the notice until the date of the changed land use. 18 35 3. The resident may elect within twelve months of receipt 19 1 of notice of the changed land use either to sell the home to 19 2 the park operator, as provided in subsection 4, or to relocate 19 3 the home, as provided in subsection 5, and may specify the 19 4 date of the sale or relocation. If the resident has not made 19 5 the election within twelve months, the park operator may make 19 6 the election, but may not exercise the election without six 19 7 months' notice to the resident. 19 8 4. If purchase of the manufactured home by the park 19 9 operator is elected, the purchase price, unless the parties 19 10 agree otherwise, shall be determined by an appraiser agreed to 19 11 by the resident and the park operator. The purchase price 19 12 shall be based on the home's fair market retail value, as 19 13 presently sited, with all appurtenances to the home. The fair 19 14 market values shall not be determined solely by the home's 19 15 national automobile dealers association book value or other 19 16 estimate of value that does not take into account the siting 19 17 of the manufactured home. 19 18 5. If relocation of the manufactured home is elected, the 19 19 park operator shall bear the full cost and responsibility to 19 20 disconnect and move the home, transport it to the new site 19 21 selected by the resident, and resite the home with all hook- 19 22 ups so that it is substantially in the same condition as 19 23 before the move, with any required and comparable 19 24 appurtenances. The park operator shall be responsible for all 19 25 repairs to bring the home to its former condition, as well as 19 26 suitable substitute lodging for the resident until the move 19 27 and repairs are completed. 19 28 Sec. 13. NEW SECTION. 562D.13 SALE OR LEASE OF PARK. 19 29 1. A park operator shall notify the residents, within 19 30 seven days, of any bona fide offer to buy or lease the park 19 31 that the owner intends to accept, any listing of the park with 19 32 a realtor, or any advertisement or other public notice that 19 33 the park is for sale or the land upon which the park is 19 34 located is for lease. 19 35 2. A group of residents or a resident association shall 20 1 have the right to purchase or lease the park, as the case may 20 2 be, if the group or association submits within sixty days of 20 3 the notice provided pursuant to subsection 1, a proposed 20 4 purchase and sale or lease agreement with substantially 20 5 equivalent terms and conditions as any offer the park owner 20 6 intends to accept, and within another sixty days obtains any 20 7 necessary financing or guarantees. An owner shall not unrea- 20 8 sonably refuse to enter into or unreasonably delay the 20 9 execution of a purchase and sale or lease agreement with a 20 10 group of residents or a resident association that has made a 20 11 legitimate offer to meet the price and substantially 20 12 equivalent terms and conditions of an offer to purchase or 20 13 lease the park. This subsection shall not prohibit an owner 20 14 from requiring a group of residents or a resident association 20 15 which is offering to lease a park to place in escrow an amount 20 16 necessary to pay the rent on the park for a period of no 20 17 greater than one year for the purpose during the term of the 20 18 lease. 20 19 3. The effective period of the right of first refusal 20 20 provided by subsection 2 shall obtain separately for each 20 21 substantially different legitimate offer to purchase or lease 20 22 the park, and for each offer substantially equivalent to an 20 23 offer made more than three months prior to the later offer. 20 24 4. A right of first refusal shall not apply to a 20 25 government taking by eminent domain or negotiated purchase, a 20 26 forced sale pursuant to a foreclosure, except that the park 20 27 owner must notify the residents of any impending or actual 20 28 foreclosure action, transfer by gift, device, or operation of 20 29 law, or a sale to a person who would be included within the 20 30 table of descent and distribution if there were to be a death 20 31 intestate of a park owner. 20 32 5. If the resident association of a manufactured housing 20 33 park is not the successful purchaser or lessee of the manu- 20 34 factured housing park, the seller or lessor of the park shall 20 35 prove compliance with this section by filing an affidavit of 21 1 compliance in the official records of the county where the 21 2 property is located within seven days of the sale or lease of 21 3 the park. 21 4 Sec. 14. NEW SECTION. 562D.14 LEGAL STUDY. 21 5 1. The attorney general shall submit a report to the 21 6 general assembly within six months of the effective date of 21 7 this Act delineating any legal impediments presently existing 21 8 in state law to cooperative or similar purchase of 21 9 manufactured housing parks by resident associations or other 21 10 groups of residents, and proposing the legal changes necessary 21 11 to remove those impediments. 21 12 2. The attorney general shall prepare a report for 21 13 dissemination at a minimal charge to the public compiling 21 14 information from other states on successful approaches and 21 15 methods for resident associations and other groups of 21 16 residents to purchase manufactured housing parks. 21 17 Sec. 15. NEW SECTION. 562D.15 ARBITRATION &endash; APPRAISALS. 21 18 1. If the resident or resident association and the park 21 19 operator fail to select an appraiser or arbitrator pursuant to 21 20 section 562D.4, subsection 8, 9, or 10, section 562D.6, 21 21 subsection 4, or section 562D.12, subsection 4, the court upon 21 22 application of a party shall appoint the arbitrator or 21 23 appraiser. 21 24 2. The arbitrator or appraiser decision shall be a signed 21 25 written document with copies provided to each party. The 21 26 decision shall apportion expenses and other fees incurred 21 27 between the parties as is equitable except that the fees for 21 28 the arbitrator or appraiser will be divided equally by the two 21 29 parties. 21 30 3. Parties have the right in the arbitration or appraisal 21 31 procedure to be represented by attorneys or, in the case of 21 32 the resident, by the resident association. 21 33 4. Upon application of a party, a court may vacate, 21 34 modify, or correct a decision if the decision was procured by 21 35 undue means; if the appraiser or arbitrator demonstrated bias 22 1 or misconduct prejudicial to the rights of a party; if the 22 2 arbitrator or appraiser exceeded the arbitrator's or 22 3 appraiser's powers; or if the decision was demonstrably 22 4 irrational. If the court vacates a decision, the court shall 22 5 appoint a new arbitrator or appraiser. 22 6 Sec. 16. NEW SECTION. 562D.16 PRIVATE REMEDIES. 22 7 1. A park operator who fails to comply with any 22 8 requirement of this chapter shall be liable to a resident, an 22 9 applicant for residency, or a resident association for the sum 22 10 of all of the following: 22 11 a. Any actual damage, including any emotional distress, 22 12 sustained by the resident, applicant for residency, or 22 13 resident association. 22 14 b. For an individual action, twice the monthly rental 22 15 amount. For a class action, one month's rent for each class 22 16 member or for an action by a resident association, the sum of 22 17 one thousand dollars. 22 18 c. The resident or resident association's reasonable 22 19 attorney's fees and costs, including an upward multiplier of 22 20 the fees to account for the contingent nature or other risk of 22 21 the litigation. 22 22 2. The court may order temporary and permanent injunctive 22 23 relief and other equitable relief as may be appropriate, 22 24 including appointment of a receiver to operate the park, if 22 25 necessary. 22 26 3. If the court determines that a park operator's 22 27 violation is willful or reckless, or if the court finds that 22 28 the park operator has not attempted to resolve the dispute in 22 29 good faith, the court shall award at least treble damages in 22 30 addition to the relief specified in subsection 1, paragraphs 22 31 "b" and "c", and may award punitive damages greater than 22 32 treble damages. There shall be a presumption that any attempt 22 33 to unlawfully evict a resident or terminate utility service, 22 34 or prevent the resident from entering the resident's home, is 22 35 a willful or reckless violation of section 562D.10. 23 1 4. If the court finds that the action brought by the 23 2 resident or resident association was brought in bad faith, 23 3 knowing that the action was groundless, and was brought for 23 4 the purpose of harassment, the court shall award the park 23 5 operator reasonable attorney fees, but only as necessary to 23 6 defend the action relating to this chapter. 23 7 5. The provisions of this chapter shall not bar any claim 23 8 against any person. 23 9 6. For purposes of a resident enforcing rights under the 23 10 rental agreement, all terms required by this chapter to be 23 11 included in the rental agreement shall be deemed as a matter 23 12 of law to be part of the rental agreement, whether 23 13 incorporated in the actual agreement or not. 23 14 7. The resident has a lien against the realty on which the 23 15 manufactured housing park is situated for amounts owed the 23 16 resident pursuant to section 562D.12 or 562D.15, for the cost 23 17 of any relocation that the park operator is obligated to 23 18 perform under section 562D.12, but fails to perform or 23 19 complete, and for all costs and fees associated with enforcing 23 20 this obligation. 23 21 8. The rights of residents or obligations of park 23 22 operators under this chapter are not waived by any provision 23 23 of the rental agreement, the park rules, or any attachments to 23 24 the agreement or rules. In addition to the remedies specified 23 25 in sections 562D.16 and 562D.17, an agreement attempting to 23 26 limit these rights is void. Any rights of a resident or 23 27 obligation of a park operator may be settled by means of a 23 28 written compromise that is knowingly, intelligently, and 23 29 voluntarily entered into by a resident. A compromise is 23 30 presumed to be knowing, intelligent, and voluntary only if the 23 31 resident was represented by an attorney in executing the 23 32 compromise. 23 33 Sec. 17. NEW SECTION. 562D.17 STATE REMEDIES. 23 34 The attorney general and the county attorney may seek 23 35 temporary and permanent injunctions for any violation of this 24 1 chapter, civil penalties in the amount of ten thousand dollars 24 2 per violation, and restitution on behalf of all residents or 24 3 resident associations injured by a violation. In a successful 24 4 action, the court shall award costs and attorney fees. 24 5 Sec. 18. NEW SECTION. 562D.18 APPLICABILITY. 24 6 This chapter applies to rental agreements executed, 24 7 renewed, or extended on or after the effective date of this 24 8 Act. 24 9 Sec. 19. Section 435.1, subsection 4, unnumbered paragraph 24 10 3, Code Supplement 1995, is amended to read as follows: 24 11 A mobile home park must be classified as to whether it is a 24 12 residential mobile home park or a recreational mobile home 24 13 park or both.The mobile home park residential landlord24 14tenant ActChapter 562D only applies to residential mobile 24 15 home parks. 24 16 Sec. 20. Section 555B.1, subsection 1, Code 1995, is 24 17 amended by striking the subsection and inserting in lieu 24 18 thereof the following: 24 19 1. "Abandoned" means, with regard to a manufactured home, 24 20 when the tenant has been absent from the manufactured home 24 21 without reasonable explanation for thirty days or more during 24 22 which time there is either a default of rent three days after 24 23 the rent is due, or the rental agreement is terminated. A 24 24 tenant's return to the manufactured home does not change its 24 25 status as abandoned unless the tenant pays to the landlord all 24 26 costs incurred for the manufactured home space, including 24 27 costs of removal, storage, notice, attorney's fees, and all 24 28 rent and utilities due and owing. 24 29 Sec. 21. Section 555B.2, subsection 1, Code 1995, is 24 30 amended to read as follows: 24 31 1. A real property owner may remove or cause to be removed 24 32 a mobile home and other personal property which is unlawfully 24 33 parked, placed, or abandoned on that real property, and may 24 34 cause the mobile home and personal property to be placed in 24 35 storage until the owner of the personal property pays a fair 25 1 and reasonable charge for removal, storage, or other expense 25 2 incurred, including reasonable attorneys' fees, or until a 25 3 judgment of abandonment is entered pursuant to section 555B.8 25 4 provided that there is no lien on the mobile home or personal 25 5 property other than a tax lien pursuant to chapter 435. For 25 6 purposes of this chapter, a lien other than a tax lien exists 25 7 only if the real property owner receives notice of a lien on 25 8 the standardized registration form completed by a tenant 25 9pursuant to section 562B.27, subsection 3,or a lien has been 25 10 filed in state or county records on a date before the mobile 25 11 home is considered to be abandoned. The real property owner 25 12 or the real property owner's agent is not liable for damages 25 13 caused to the mobile home and personal property by the removal 25 14 or storage unless the damage is caused willfully or by gross 25 15 negligence. 25 16 Sec. 22. Section 555B.7, Code 1995, is amended to read as 25 17 follows: 25 18 555B.7 REMEDY NOT EXCLUSIVE. 25 19 An action under this chapter may be brought in connection 25 20 with a claim for monetary damages, possession, or recovery as 25 21 provided insection 562B.25 or 562B.30 orchapter 648. 25 22 Sec. 23. Section 648.3, Code 1995, is amended to read as 25 23 follows: 25 24 648.3 NOTICE TO QUIT. 25 25 Before action can be brought in any except the first of the 25 26 above classes, three days' notice to quit must be given to the 25 27 defendant in writing. However, a landlord who has given a 25 28 tenant three days' notice to pay rent and has terminated the 25 29 tenancy as provided in section 562A.27, subsection 2,or25 30section 562B.25, subsection 2,if the tenant is renting the 25 31 mobile home or the land from the landlord may commence the 25 32 action without giving a three-day notice to quit. 25 33 Sec. 24. Section 648.19, Code 1995, is amended to read as 25 34 follows: 25 35 648.19 NO JOINDER OR COUNTERCLAIM &endash; EXCEPTION. 26 1 An action of this kind shall not be brought in connection 26 2 with any other action, with the exception of a claim for rent 26 3 or recovery as provided in section 555B.3, 562A.24, or 26 4 562A.32,562B.22, 562B.25, or 562B.27,nor shall it be made 26 5 the subject of counterclaim. When joined with an action for 26 6 rent or recovery as provided in section 555B.3, 562A.24, or 26 7 562A.32,562B.22, 562B.25, or 562B.27,notice of hearing as 26 8 provided in section 648.5 is sufficient. 26 9 Sec. 25. REPEAL AND APPLICABILITY PROVISION. Chapter 26 10 562B, Code 1995, is repealed. However, a rental agreement 26 11 executed pursuant to chapter 562B remains effective until the 26 12 agreement expires or is subject to renewal. Thereafter, a 26 13 rental agreement shall be negotiated and executed pursuant to 26 14 chapter 562D. 26 15 EXPLANATION 26 16 This bill provides for the regulation of rental and lease 26 17 agreements and general relationship between mobile, 26 18 manufactured, and modular homeowners and mobile home park 26 19 owners. The bill defines and prohibits the use of unfair and 26 20 deceptive practices by the manufactured home park owner, 26 21 specifies rental terms and agreements, and provides for and 26 22 prohibits certain charges and fees. The bill also addresses 26 23 park rules, the terms of a lease or rental agreement, 26 24 maintenance, and habitability requirements, the rights of 26 25 resident associations, evictions and foreclosure procedures, 26 26 the procedures for the lease or sale of a home, land use 26 27 changes and rights of tenants, the sale of the park and 26 28 tenant's rights, arbitration and appraisal procedures relating 26 29 to the sale of homes or parks, and private remedies. 26 30 This bill creates a new chapter 562D and repeals chapter 26 31 562B which currently relates to landlord-tenant relations in 26 32 mobile home parks. 26 33 LSB 3841HH 76 26 34 tj/jw/5.1
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