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, for justified rent increase to support extraordinary increases in operating expenses and for temporary surcharge for capital improvements; and further providing for damages.

PRINTER'S NO. 872
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 745
Session of
2025
INTRODUCED BY SCHWANK, COSTA, SAVAL, BAKER, PENNYCUICK, KEARNEY,
KANE, MUTH, CAPPELLETTI, VOGEL, L. WILLIAMS, HAYWOOD AND
MASTRIANO, JUNE 3, 2025
REFERRED TO URBAN AFFAIRS AND HOUSING, JUNE 3, 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, for justified rent
increase to support extraordinary increases in operating
expenses and for temporary surcharge for capital
improvements; and further providing for damages.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. 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.
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Section 2. Section 6(c) and (e) introductory paragraph and
(2) of the act are amended to read:
Section 6. Disclosure of Fees.--* * *
(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] 180 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] 180 days in advance of the increase.
* * *
Section 3. 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 manufactured home community
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 the following conditions are
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satisfied:
(1) The community owner or community operator posts notice
of the proposed increase in a public area within the
manufactured home community at least 180 days prior to the
effective date of the increase and notifies all manufactured
home lessees and manufactured home tenants of the proposed rent
increase by certified mail addressed to their residences at
least 180 days prior to the effective date of the increase.
(2) Except as provided in sections 6.2 and 6.3, 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 60-month period except:
(i) i f the average 60-month CPI-U is lower than 2%, the
aggregate increase in rent, fees, service charges and
assessments does not exceed 2%; and
(ii) i f the average 60-month CPI-U is greater than 4%, the
increase in rent, fees, service charges and assessments does not
exceed 4%.
(b) The Department of Community and Economic Development
shall publish the average 60-month CPI-U monthly on a publicly
accessible Internet website and shall transmit the information
as a notice to the Legislative Reference Bureau for publication
in the next available issue of the Pennsylvania Bulletin.
(c) Except as provided in section 6.3, no community owner or
community operator that has 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
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safety law or regulation may increase rent, fees, service
charges or assessments unless the violation has been fully
resolved at least 180 days prior to the effective date of the
increase.
(d) Failure to comply with the procedure specified 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 manufactured home community
operator increasing rent, fees, service charges or assessments
under section 6.1(a) may exceed the limits specified in section
6.1(a)(2) up to an additional 2%, as necessary to support
extraordinary increases in operating expenses, if the following
conditions are satisfied:
(1) The community owner or community operator posts notice
of the proposed extraordinary increase in a public area within
the manufactured home community at least 180 days prior to the
effective date of the increase and notifies all manufactured
home lessees and manufactured home tenants of the proposed
extraordinary rent increase by certified mail addressed to their
residences at least 180 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,
including:
(i) the community owner's or community operator's operating
budget;
(ii) a description of the operating cost item or items that
have increased, the amount of the increase and the impact of the
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increase on the owner's or operator's revenues, expenses and
profit;
(iii) 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
(iv) an explanation of the lessees' rights to request a
meeting with the owner pursuant to 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) The community owner or community operator provides an
opportunity for the 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, to request a meeting with the owner in
writing at any time within 30 days of the posting and delivery
of the notice if requested. The owner 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 owner must 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 posting and delivery
of the notice, a 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
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pleas. In either case it shall be the community owner's or
community operator's 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.
(c) 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.
(d) 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." The cost of routine maintenance and repair of all
roads, sidewalks, parking pads, storm water drainage systems and
common areas; the routine maintenance, care, removal and
replacement of all trees within the community; and the routine
maintenance and repair of all sewer lines, water lines, utility
service lines and related connections owned and provided by the
community owner or community operator to the utility pedestal or
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 that are 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 6.3. Temporary Surcharge for Capital Improvements.--
(a) A manufactured home community owner or manufactured home
community operator may require lessees to pay a temporary
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surcharge to cover all or part of the cost of the nonroutine
repair, replacement or construction of major infrastructure
systems or amenities if all of the following conditions are
satisfied:
(1) The community owner or community operator posts notice
of the proposed surcharge in a public area within the
manufactured home community at least 180 days prior to the
effective date of the surcharge and notifies all manufactured
home lessees and manufactured home tenants of the proposed
surcharge by certified mail addressed to their residences at
least 180 days prior to the effective date of the surcharge. In
the event of urgent repair needs, the 180-day notice period may
be shortened by order of court. The notice must include the
nature of the proposed improvements; the estimated date of
completion of the improvements; the total amount of the
surcharge; the estimated cost to finance and complete the
improvements, both total and itemized; the share of that cost to
be covered by the owner's funds, by the surcharge, and by
insurance proceeds or other sources if applicable; the per-lot
monthly amount of the surcharge; and the proposed duration of
the surcharge.
(2) At least 75% of the households residing on the lots that
would be subject to the surcharge consent to the surcharge in
writing or all of the conditions specified in subsection (b)
have been satisfied.
(3) The annual surcharge does not exceed 4% of the total
amount of all rent, fees, service charges or assessments in
effect for the previous year. In any year in which a surcharge
is in effect, the total of all surcharges and any annual rent
increase may not exceed 7.5% of the total amount of all rent,
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fees, service charges or assessments in effect for the previous
year. The surcharge may not be included in the base rent when
calculating rent increases for subsequent years.
(4) The community owner records a mortgage lien against the
property, in the total amount of the capital improvement
surcharge, in favor of the resident association, if one exists.
The mortgage must be payable out of the proceeds of any sale or
refinancing of the community.
(b) A community owner or community operator that is
prohibited from increasing rent, fees, service charges or
assessments under section 6.1(c) may require lessees to pay a
temporary surcharge to cover all or part of the cost of capital
improvements necessary for the correction of health or safety
violations if, in addition to the conditions specified in
subsection (a)(1), the following conditions are satisfied:
(1) The community owner or community operator provides the
lessees, in the notice required under subsection (a)(1):
(i) a copy of the enforcement agency notice or court order
describing the health or safety violation that the surcharge is
intended to correct;
(ii) a copy of a financial summary certified as accurate by
the owner or its accounting firm, to include the community
owner's or community operator's operating budget, sufficient to
enable the lessees to identify the amount of available cash
reserves and owner distributions; and
(iii) an explanation of the lessees' right to oppose the
surcharge by filing a complaint with the Attorney General or
filing a legal action in the court of common pleas.
(2) The community owner or community operator provides an
opportunity for the resident association, if one exists, or a
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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, to request a meeting with the owner in
writing at any time within 30 days of the posting and delivery
of the notice if requested. The owner 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 owner must in good faith disclose and explain all
material factors resulting in the decision to propose the
surcharge, as well as any other matter concerning the operation
and management of the community that the resident association or
committee wishes to discuss.
(c) At any time after 45 days from the posting and delivery
of the notice, a lessee, group of lessees or resident
association, if one exists, may challenge the reasonableness of
the proposed surcharge by filing a complaint with the Attorney
General, in which event the Attorney General may attempt to
resolve the dispute through mediation or by initiating a civil
action in the court of common pleas. In either case, it shall be
the owner or operator's burden to demonstrate that:
(1) the proposed corrections will resolve all known health
or safety violations;
(2) the projected cost of repairs and improvements is
reasonable;
(3) the community owner will assume a reasonable share of
the cost of repairs and improvements;
(4) the terms of financing, if any, are reasonable;
(5) the community owner has provided a surety bond or letter
of credit that satisfies the requirements of subsection (d); and
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(6) the amount of the proposed surcharge is no more than is
reasonably necessary to complete the repairs.
(d) A surety bond or letter of credit must:
(1) Be payable to the resident association if one exists, or
to the Department of Environmental Protection, a code
enforcement agency, a court, a local redevelopment agency or
other public entity, as applicable, as the holder.
(2) Be i n an amount sufficient to fund 100% of the total
capital improvements surcharge.
(3) Contain the purpose of securing that the community owner
or community operator will correct all known health or safety
violations by a specified date, which cannot be later than one
year after the date of the notice of the proposed surcharge.
(4) Entitle the holder to make a claim on the surety bond or
draw on the letter of credit in order to cause the violations to
be corrected, if the owner fails to do so by the specified date.
(5) Be issued by an admitted carrier that is licensed in
this Commonwealth and that has a rating from AM Best of A or
better or if a letter of credit, the letter of credit is issued
by a federally insured financial institution.
Section 4. 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
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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 latest to occur of
the following, as applicable, 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.] 120 days:
(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
or proposed surcharges for capital improvements 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 or proposed surcharge for capital improvements.
No increased rent or fee lease charges shall be effective
against a lessee prior to the [61st] 180th 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] 150
days from the date of notification of intent to vacate the
manufactured home community to enter into 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, 6.2 and 6.3, as applicable, the manufactured
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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 that was imposed in violation of
section 6, 6.1, 6.2 or 6.3.
Section 5. This act shall take effect immediately.
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