An Act amending the act of November 24, 1976 (P.L.1176, No.261), known as the Manufactured Home Community Rights Act, providing for resident associations and group meetings; further providing for disclosure of fees; providing for reasonable increases in rent and fees and for justified rent increase to support extraordinary increases in operating expenses; and further providing for damages.

PRINTER'S NO. 1379
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1250
Session of
2025
INTRODUCED BY HANBIDGE, CERRATO, WEBSTER, MOUL, GILLEN, PIELLI,
HILL-EVANS, OTTEN, HOWARD, GIRAL, SANCHEZ, STEELE, MALAGARI,
D. WILLIAMS, GREEN, CIRESI, SHUSTERMAN, FREEMAN, PROBST,
POWELL, MULLINS, ECKER, K.HARRIS, MERSKI AND ABNEY,
APRIL 16, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
APRIL 16, 2025
AN ACT
Amending the act of November 24, 1976 (P.L.1176, No.261),
entitled "An act providing for the rights and duties of
manufactured home owners or operators and manufactured home
lessees," providing for resident associations and group
meetings; further providing for disclosure of fees; providing
for reasonable increases in rent and fees and for justified
rent increase to support extraordinary increases in operating
expenses; and further providing for damages.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The General Assembly recognizes the following
public policy purposes and declares that the following
objectives of the Commonwealth are to be served by this act:
(1) Pennsylvania faces a significant shortage of
affordable housing units that contributes to higher rates of
homelessness and housing instability, impacting the well-
being of many residents.
(2) The lack of affordable housing also affects this
Commonwealth's economic competitiveness and educational and
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health outcomes.
(3) Manufactured homes are a vital part of the
affordable housing market because buying a manufactured home
remains a relatively affordable alternative to purchasing a
higher-cost traditional home.
(4) Manufactured home communities in this Commonwealth
are home to many low-income to moderate-income individuals
and families.
(5) Homes in manufactured home communities, however, are
subject to lot leases with ever-increasing rents determined
by the landowner who controls the land on which the homes
sit.
(6) It is difficult and expensive to move a manufactured
home once it has been set on a foundation making the
residents of manufactured home communities especially
vulnerable to exploitation.
(7) For manufactured home community owners, the
difficulty residents face in moving their homes means a
consistent source of revenue, including during economic
downturns.
(8) Large corporations and private equity firms have
been buying up manufactured home communities in this
Commonwealth, leading to resident complaints of drastic
increases in lot rents, a lack of onsite management and a
lack of repairs.
(9) Unlike traditional homes which appreciate over time,
the value of manufactured homes decreases over time and this
decrease can be accelerated by predatory lot rent increases
disguised as necessary improvements.
(10) Homeowners who are unable to pay unaffordable rent
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increases face eviction and the loss of their home due to the
high cost and extreme difficulty of moving it.
(11) Homeowners who are able to remain struggle to pay
the increased rent and are often faced with deteriorating
living conditions and a loss of value in their homes.
(12) The public good and the general welfare of the
residents of this Commonwealth require the exercise of the
police powers of the Commonwealth to regulate lot rents in
manufactured home communities.
(13) Regulating lot rents in manufactured home
communities is a valid means of exercising the police powers
of the Commonwealth to protect the public health, safety and
welfare of the residents of this Commonwealth and safeguard
vulnerable residents of manufactured home communities from
exploitation.
(14) Regulating lot rents in manufactured home
communities by providing for reasonable annual lot rent
increases up to the average Consumer Price Index for All
Urban Consumers (CPI-U) for the Northeast Region, for the
most recently available 12-month period, but no less than 2%
nor more than 4%, with exceptions for extraordinary increases
in operating expenses, ensures that landowners can get a fair
return on their investment.
(15) Regulating lot rents in manufactured home
communities by providing for reasonable annual lot rent
increases up to the average Consumer Price Index for All
Urban Consumers (CPI-U) for the Northeast Region, for the
most recently available 12-month period, but no less than 2%
nor more than 4%, with exceptions for extraordinary increases
in operating expenses, is not unreasonable, unduly burdensome
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or patently beyond what is necessary to protect the public
health, safety and welfare of the residents of this
Commonwealth and safeguard vulnerable residents of
manufactured home communities from exploitation.
(16) Prohibiting landowners from increasing the lot rent
during the pendency of an unresolved health or safety
violation, except under conditions designed to ensure the
correction of all health or safety violations, is a valid
means of exercising the police powers of the Commonwealth to
protect the public health, safety and welfare of the
residents of this Commonwealth and safeguard vulnerable
residents of manufactured home communities from exploitation.
(17) With stable land tenure and prohibition against
predatory rent practices, a manufactured home becomes a
wealth-building asset for a family, and residents are more
likely to become active stakeholders in the improvement and
upkeep of their community.
Section 2. The act of November 24, 1976 (P.L.1176, No.261),
known as the Manufactured Home Community Rights Act, is amended
by adding a section to read:
Section 4.2. Resident Associations and Group Meetings.--(a)
A manufactured home community owner may not prohibit or
interfere with the operation of a resident association.
(b) A manufactured home community owner shall allow group
meetings on site between residents without any limitations
related to the number of residents, location of the meetings and
the timing of meetings.
Section 3. Section 6(c) and (e) introductory paragraph and
(2) of the act are amended to read:
Section 6. Disclosure of Fees.--* * *
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(c) Failure to disclose such rent, fees, service charges and
assessments shall render them void and unenforceable in the
courts of the Commonwealth. Increases in such rent, fees,
service charges and assessments payable to the owner shall be
unenforceable until [30] 90 days after notice thereof has been
posted in the public portion of the community office or other
conspicuous and readily accessible place in the manufactured
home community and mailed to the manufactured home lessee.
However, rent shall not be increased during the term of the
lease.
* * *
(e) All new leases, lease extensions and lease renewals[,
which are for more than a 60-day period,] shall contain the
following full disclosures:
* * *
(2) An explanation of the manner in which the manufactured
home space rental amount will be increased, including, but not
limited to, notification to the manufactured home lessee at
least [60] 90 days in advance of the increase.
* * *
Section 4. The act is amended by adding sections to read:
Section 6.1. Reasonable Increases in Rent and Fees.--(a) A
manufactured home community owner or operator may increase rent,
fees, service charges or assessments for any 12-month period,
effective upon the renewal or extension of a lease for a
manufactured home lot on or after the effective date of this
subsection, if all of the following conditions are satisfied:
(1) The community owner or operator must notify all
manufactured home lessees and manufactured home tenants of the
proposed rent increase by hand delivery or mail addressed to
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their residences at least 90 days prior to the effective date of
the increase.
(2) Except as provided in section 6.2, and except for
charges imposed by a limited equity cooperative association
subject to 68 Pa.C.S. Pt. II Subpt. C (relating to
cooperatives), the aggregate increase in rent, fees, service
charges and assessments does not exceed the average Consumer
Price Index for All Urban Consumers (CPI-U) for the Northeast
Region, for the most recently available 12-month period. If the
average 12-month CPI-U is:
(i) lower than 2%, the community owner or operator may
increase rent, fees, service charges and assessments by up to
2%; and
(ii) greater than 4%, the community owner or operator may
increase rent, fees, service charges and assessments by no more
than 4%.
(3) The community owner or operator has not been found by a
local code official, the Department of Environmental Protection,
other enforcement entity or court to be in violation of any
applicable health or safety law or regulation, unless the
violation has been fully resolved at least 90 days prior to the
effective date of the increase.
(b) Failure to comply with the procedures in this section
shall render any attempted increase in rent, fees, service
charges or assessments void and unenforceable in the courts of
the Commonwealth.
Section 6.2. Justified Rent Increase to Support
Extraordinary Increases in Operating Expenses.--(a) A
manufactured home community owner or operator may increase rent,
fees, service charges or assessments under section 6.1(a) that
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exceed the limits in section 6.1(a)(2), as necessary to support
extraordinary increases in operating expenses, if:
(1) The community owner or operator must notify all
manufactured home lessees and manufactured home tenants of the
proposed extraordinary rent increase by hand delivery or mail
addressed to their residences at least 90 days prior to the
effective date of the increase. The notice must include copies
of a financial summary certified as accurate by the owner or its
accounting firm, to include:
(i) a description of the operating cost item or items which
have increased, the amount of the increase and the impact of
such increase on the owner's or operator's revenues, expenses
and profit.
(ii) an estimate of the amount of revenue that will be
generated as a result of the proposed increase in rent, fees,
service charges or assessments; and
(iii) an explanation of the lessees' rights to request a
meeting with the owner or operator under this section and to
oppose the extraordinary increase by filing a complaint with the
Attorney General or filing a legal action in the court of common
pleas.
(2) A resident association, if one exists, or a committee
designated by a petition signed by at least 25% of the
households residing on the lots that would be subject to the
proposed increase, may request a meeting with the owner or
operator in writing at any time within 30 days of the delivery
of the notice. The owner or operator must meet with the resident
association or committee in person at a mutually convenient
place and time within 15 days of the request. The meeting must
be open to all residents who wish to attend. At the meeting, the
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owner or operator shall in good faith disclose and explain all
material factors resulting in the decision to propose the
increase, as well as any other matter concerning the operation
and management of the community that the resident association or
committee wishes to discuss.
(b) At any time after 45 days from the delivery of the
notice, any lessee, group of lessees or resident association, if
one exists, may challenge the reasonableness of the proposed
increase by filing a complaint with the Attorney General or by
initiating a civil action in the court of common pleas. In
either case, the owner or operator has the burden to demonstrate
that the amount of the requested increase is an accurate
estimate of the amount needed to cover the documented increase
in the owner's eligible operating expenses. If the Attorney
General attempts to resolve the dispute through mediation and
the owner or operator declines to participate, the increase
shall be void and unenforceable.
(c) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Maintenance costs for which the owner is solely
responsible." Include:
(1) the cost of regular maintenance and repair of all roads,
sidewalks, parking pads, storm water drainage systems and common
areas;
(2) the maintenance, care, removal and replacement of all
trees within the community; and
(3) the routine maintenance and repair of all sewer lines,
water lines, utility service lines and related connections owned
and provided by the owner or operator to the utility pedestal or
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manufactured home space.
"Operating expense." Taxes, insurance, utility charges,
onsite employee costs, maintenance costs for which the owner is
solely responsible and third party charges directly necessary
for the operation of the community. The term does not include
any cost related to acquisition, capital improvements, debt
service or any increase in the return on the owner's investment.
Section 5. Section 13(e) and (f) of the act are amended and
the section is amended by adding a subsection to read:
Section 13. Damages.--* * *
(e) When the manufactured home community owner or operator
and a manufactured home lessee execute a new, renewed or
extended lease for a manufactured home space, which increases
rent or payables to the lessor, the manufactured home community
owner or operator may not collect increased rent or fee payable
rent from the manufactured home lessee until the manufactured
home community owner or operator and the manufactured home
lessee have entered into the new, renewed or extended lease.
After receiving 60 days' notice of the community owner's or
operator's intent to offer a new lease, the manufactured home
occupant shall have [30] 60 days to either accept the new,
renewed or extended rental agreement or to notify the
manufactured home community owner or operator of intent to
vacate within [30 days.] 60 days from the latest to occur of the
following:
(1) receipt of the community owner's or operator's intent to
offer a new lease;
(2) receipt of notification by the Attorney General that the
lessee's complaint challenging the reasonableness of the
proposed increase in rent, fees, service charges or assessments
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has been closed; or
(3) the issuance of a final decision on any legal challenge
to the proposed increase in rent, fees, service charges or
assessments.
No increased rent or fee lease charges shall be effective
against a lessee prior to the 61st day after receiving the owner
or operator notice.
(f) A manufactured home lessee who chooses not to enter into
a new, renewed or extended rental agreement shall have [60] 90
days from the date of notification of intent to vacate the
manufactured home community to enter into a contract to sell or
to relocate the manufactured home. No increased rent fee or
lease charge shall apply during this period. So long as the
manufactured home community owner or operator complied with
[disclosure as provided in section 6] the requirements of
sections 6, 6.1 and 6.2, as applicable, the manufactured home
lessee who does not enter into a new, extended or renewed rental
agreement shall not be entitled to relocation costs.
(g) In addition to all other available rights, remedies and
damages, an affected lessee may file an action for abatement,
nullification or restitution of any increase in rent, fees,
service charges or assessments imposed in violation of the
requirements in section 6, 6.1 or 6.2.
Section 6. This act shall take effect immediately.
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