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H.B. 63





Chief Sponsor: Janice M. Fisher

Senate Sponsor: ____________

             7      LONG TITLE
             8      General Description:
             9          This bill modifies and enacts provisions of the Mobile Home Park Residency Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies a provision relating to a mobile home park owner's change of a due date
             13      for rent, fees, and service charges;
             14          .    increases the allowable size of a "for sale" sign;
             15          .    provides that a reduction or restriction of amenities is not valid unless the mobile
             16      home park owner complies with statutory notice and meeting requirements;
             17          .    limits a mobile home park owner's rent increase or decrease to once a year;
             18          .    modifies the procedure for increasing rent on mobile home park residents;
             19          .    prohibits a mobile home park owner and resident from using force, coercion, or
             20      deception to procure the other's signature on a lease agreement;
             21          .    establishes a process for a resident group to challenge a proposed rent or service
             22      charge increase, a proposed rule change, or a proposed assessment for capital
             23      improvements and a mediation process to resolve a dispute between a resident
             24      group and a mobile home park owner; and
             25          .    authorizes a mobile home park owner to impose an assessment for capital
             26      improvements.
             27      Money Appropriated in this Bill:

             28          None
             29      Other Special Clauses:
             30          None
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          57-16-3, as last amended by Laws of Utah 2002, Chapter 255
             34          57-16-4, as last amended by Laws of Utah 2009, Chapter 94
             35      ENACTS:
             36          57-16-16.1, Utah Code Annotated 1953
             37          57-16-16.2, Utah Code Annotated 1953
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 57-16-3 is amended to read:
             41           57-16-3. Definitions.
             42          As used in this chapter:
             43          (1) "Amenities" means the following physical, recreational or social facilities located at
             44      a mobile home park:
             45          (a) a club house;
             46          (b) a park;
             47          (c) a playground;
             48          (d) a swimming pool;
             49          (e) a hot tub;
             50          (f) a tennis court; or
             51          (g) a basketball court.
             52          (2) "Change of use" means a change of the use of a mobile home park, or any part of it,
             53      for a purpose other than the rental of mobile home spaces.
             54          (3) "Fees" means other charges incidental to a resident's tenancy including, but not
             55      limited to, late fees, charges for pets, charges for storage of recreational vehicles, charges for
             56      the use of park facilities, and security deposits.
             57          (4) "Mobile home" means a transportable structure in one or more sections with the
             58      plumbing, heating, and electrical systems contained within the unit, which when erected on a

             59      site, may be used with or without a permanent foundation as a family dwelling.
             60          (5) "Mobile home park" means any tract of land on which two or more mobile home
             61      spaces are leased, or offered for lease or rent, to accommodate mobile homes for residential
             62      purposes.
             63          (6) "Mobile home park owner":
             64          (a) means the owner of a mobile home park or the owner's agent; and
             65          (b) for purposes of notification and other communication required under this chapter,
             66      includes a managing agent, leasing agent, or resident manager, unless the written lease
             67      agreement provides otherwise.
             68          [(6)] (7) "Mobile home space" means a specific area of land within a mobile home park
             69      designed to accommodate one mobile home.
             70          [(7)] (8) "Rent" means charges paid for the privilege of occupying a mobile home
             71      space, and may include service charges and fees.
             72          [(8)] (9) "Resident" means an individual who leases or rents space in a mobile home
             73      park.
             74          [(9)] (10) "Service charges" means separate charges paid for the use of electrical and
             75      gas service improvements which exist at a mobile home space, or for trash removal, sewage
             76      and water, or any combination of the above.
             77          [(10)] (11) "Settlement discussion expiration" means:
             78          (a) the resident has failed to give a written notice of dispute within the period specified
             79      in Subsection 57-16-4.1 (2); or
             80          (b) the resident and management of the mobile home park have met together under
             81      Subsection 57-16-4.1 (3) but were unsuccessful in resolving the dispute in their meeting.
             82          Section 2. Section 57-16-4 is amended to read:
             83           57-16-4. Termination of lease or rental agreement -- Required contents of lease --
             84      Increases in rents or fees -- Sale of homes -- Notice regarding planned reduction or
             85      restriction of amenities.
             86          (1) A mobile home park [or its agents] owner may not terminate a lease or rental
             87      agreement upon any ground other than as specified in this chapter.
             88          (2) (a) Each agreement for the lease of mobile home space shall be written and signed
             89      by the [parties] mobile home park owner and resident.

             90          (b) A mobile home park owner and a resident may not use force, coercion, or deception
             91      to procure the signature of the other on a lease of mobile home space.
             92          (3) Each lease shall contain at least the following information:
             93          (a) the name and address of the mobile home park owner and any [persons] person
             94      authorized to act for the mobile home park owner, upon whom notice and service of process
             95      may be served;
             96          (b) the type of the leasehold, whether it be term or periodic, and, in leases entered into
             97      on or after May 6, 2002, a conspicuous disclosure describing the protection a resident has
             98      under Subsection (1) against unilateral termination of the lease by the mobile home park except
             99      for the causes described in Section 57-16-5 ;
             100          (c) (i) a full disclosure of [all] rent, service charges, and other fees presently being
             101      charged on a periodic basis; and
             102          (ii) a full disclosure of utility infrastructure owned by the mobile home park owner [or
             103      its agent] that is maintained through service charges and fees charged by the mobile home park
             104      owner [or its agent];
             105          (d) the date [or dates] on which the payment of rent, fees, and service charges are due;
             106      and
             107          (e) [all rules that pertain] each rule that pertains to the mobile home park that, if
             108      broken, [may constitute] constitutes grounds for eviction, including, in leases entered into on or
             109      after May 6, 2002, a conspicuous disclosure regarding:
             110          (i) the [causes] cause for which the mobile home park owner may terminate the lease
             111      as described in Section 57-16-5 ; and
             112          (ii) the resident's rights to:
             113          (A) terminate the lease at any time without cause, upon giving the notice specified in
             114      the resident's lease; and
             115          (B) advertise and sell the resident's mobile home.
             116          (4) (a) [Increases in rent or fees for periodic tenancies are unenforceable until 60 days
             117      after notice of the increase is mailed to the resident.] A mobile home park owner may increase
             118      or decrease rent on a lease or rental agreement once a year.
             119          (b) A proposed increase under Subsection (4)(a) may not take effect until 90 days after
             120      the mobile home park owner mails or delivers notice of the proposed increase to each resident.

             121          (c) The notice required under Subsection (4)(b) shall include the:
             122          (i) current rent;
             123          (ii) proposed rent; and
             124          (iii) date the proposed increase is to take effect.
             125          [(b)] (5) (a) If a service [charges are] charge is not included in the rent, the mobile
             126      home park owner may:
             127          (i) increase the service [charges] charge during the leasehold period after giving notice
             128      to the resident; and
             129          (ii) pass through [increases or decreases] an increase or decrease in electricity rates to
             130      the resident.
             131          [(c)] (b) Annual income to the park for a service [charges] charge may not exceed the
             132      actual cost to the mobile home park of providing the [services] service on an annual basis.
             133          [(d)] (c) In determining the [costs of the services] cost of service, the mobile home
             134      park owner may include maintenance costs related to those utilities that are part of [the] a
             135      service [charges] charge.
             136          [(e)] (d) [The mobile home park may not alter] A change of the date on which rent,
             137      fees, and service charges are due [unless] does not take effect until 60 days after the mobile
             138      home park owner provides [a 60-day] written notice to the resident [before] of the change in
             139      the due date [is altered].
             140          [(5)] (6) (a) Except as provided in Subsection (3)(b), a rule or condition of a lease that
             141      purports to prevent or unreasonably limit the sale of a mobile home belonging to a resident is
             142      void and unenforceable.
             143          (b) The mobile home park owner:
             144          (i) may reserve the right to approve the prospective purchaser of a mobile home who
             145      intends to become a resident;
             146          (ii) may not unreasonably withhold that approval;
             147          (iii) may require proof of ownership as a condition of approval; or
             148          (iv) may unconditionally refuse to approve any purchaser of a mobile home who does
             149      not register before purchasing the mobile home.
             150          [(6)] (7) If [all of the conditions] each condition of Section 41-1a-116 [are] is met, a
             151      mobile home park owner may request the names and addresses of the lienholder or owner of

             152      any mobile home located in the mobile home park from the Motor Vehicle Division.
             153          [(7)] (8) (a) A mobile home park owner may not restrict a resident's right to advertise
             154      for sale or to sell a mobile home.
             155          (b) A mobile home park owner may limit the size of a "for sale" sign affixed to the
             156      mobile home to not more than [144] 288 square inches.
             157          [(8)] (9) A mobile home park owner may not compel a resident who wishes to sell a
             158      mobile home to sell it, either directly or indirectly, through an agent designated by the mobile
             159      home park owner.
             160          [(9)] (10) A mobile home park owner may require that a mobile home be removed
             161      from the park upon sale if:
             162          (a) the mobile home park owner wishes to upgrade the quality of the mobile home
             163      park; and
             164          (b) the mobile home either does not meet minimum size specifications or is in a
             165      rundown condition or is in disrepair.
             166          [(10)] (11) (a) Within 30 days after a mobile home park owner proposes reducing or
             167      restricting amenities, the mobile home park owner shall:
             168          [(a)] (i) schedule and hold at least one meeting for the purpose of discussing the
             169      proposed restriction or reduction of amenities with residents; and
             170          [(b)] (ii) provide at least 10 days advance written notice of the date, time, location, and
             171      purposes of the meeting to each resident.
             172          (b) A reduction or restriction of amenities does not take effect until the mobile home
             173      park owner schedules and holds at least one meeting as required in Subsection (11)(a)(i) and
             174      provides notice of the meeting as required in Subsection (11)(a)(ii).
             175          [(11)] (12) If a mobile home park owner uses a single-service meter, the mobile home
             176      park owner shall include a full disclosure on a resident's utility bill of the resident's utility
             177      charges.
             178          [(12)] (13) The mobile home park owner shall have a copy of this chapter posted at all
             179      times in a conspicuous place in the mobile home park.
             180          Section 3. Section 57-16-16.1 is enacted to read:
             181          57-16-16.1. Resident group's challenge of rent increase, fee increase, or rule
             182      change -- Mediation.

             183          (1) As used in this section:
             184          (a) "Proposed action" means a mobile home park owner's:
             185          (i) proposed rent increase under Section 57-16-4 that is more than one percentage point
             186      above the most recent United States Consumer Price Index for All Urban Consumers, Housing
             187      Component, published by the United States Bureau of Labor Statistics;
             188          (ii) proposed increase in a service charge described in Subsection 57-16-4 (5);
             189          (iii) proposed change in a mobile home park rule under Section 57-16-7 ; or
             190          (iv) proposed assessment under Section 57-16-16.2 for a capital improvement.
             191          (b) "Resident group":
             192          (i) has the same meaning as resident association, as defined in Section 57-16-16 ,
             193      except as provided in Subsection (1)(b)(ii); or
             194          (ii) (A) has the same meaning as primary resident association, as defined in Section
             195      57-16-16 , if the mobile home park has more than one resident association; or
             196          (B) means a committee elected by a majority of park residents, if the mobile home park
             197      has no resident association.
             198          (2) A resident group may challenge a proposed action if:
             199          (a) a majority of the residents of the mobile home park have signed a petition stating
             200      that the proposed action is unreasonable; and
             201          (b) the resident group forwards the petition to the mobile home park owner by
             202      registered or certified mail within 25 days after receiving notice of the proposed action.
             203          (3) (a) Upon the mobile home park owner's receipt of a petition, the resident group and
             204      mobile home park owner shall procure a list of qualified mediators from lists available from a
             205      government source or nonprofit agency.
             206          (b) Within five business days after procuring a list of qualified mediators, the resident
             207      group and mobile home park owner shall appoint a mediator.
             208          (4) A mediator appointed under this section:
             209          (a) may not have any interest in the mobile home park at issue;
             210          (b) shall provide written disclosure to the resident group and mobile home park owner
             211      of any perceived conflict of interest; and
             212          (c) shall conduct one or more mediation sessions, to be completed at least 10 days
             213      before the effective date of the proposed action.

             214          (5) The mobile home park owner:
             215          (a) at least five days before the initial mediation session, shall provide to the mediator
             216      and the resident group information to support the proposed action; and
             217          (b) has the burden of providing information to show that the proposed action is
             218      reasonable.
             219          (6) (a) Upon completion of the mediation, the mediator shall issue a signed report to
             220      the resident group and mobile home park owner.
             221          (b) If an agreement is reached in mediation:
             222          (i) the mediator's report shall include the terms of the agreement, including, if
             223      applicable, the amount of a rent or service charge increase and its effective date; and
             224          (ii) the mobile home park owner is not required to provide any additional notice in
             225      order for the proposed action to take effect pursuant to the mediation agreement.
             226          (7) The resident group and mobile home park owner shall each pay half of the cost of
             227      mediation.
             228          Section 4. Section 57-16-16.2 is enacted to read:
             229          57-16-16.2. Infrastructure assessments for capital improvements -- Resident
             230      association challenge of assessment.
             231          (1) As used in this section, "capital improvement":
             232          (a) means an installation or repair of infrastructure in a mobile home park that:
             233          (i) is necessary for the delivery of water, sewer, electrical, or other basic service to a
             234      resident;
             235          (ii) is owned by the mobile home park owner but available for use by a resident; and
             236          (iii) costs $5,000 or more; and
             237          (b) includes roads and amenities located within the mobile home park.
             238          (2) A mobile home park owner may impose an assessment for a capital improvement
             239      if:
             240          (a) the assessment is imposed in equal amounts to each resident over half of the
             241      estimated useful life of the capital improvement, unless the mobile home park owner and the
             242      resident association agree otherwise; and
             243          (b) the mobile home park owner provides each resident a 90-day notice of assessment,
             244      by registered or certified mail, that includes:

             245          (i) a description of the capital improvement;
             246          (ii) an estimated cost of the capital improvement;
             247          (iii) the amount to be assessed each month; and
             248          (iv) the number of months the assessment will be imposed.

Legislative Review Note
    as of 11-10-11 10:27 AM

Office of Legislative Research and General Counsel

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