Glenside, PA – September 5, 2008 – (RealEstateRama) — A half a million Pennsylvanians live in manufactured housing, formerly known as mobile homes. In some counties, manufactured housing constitutes 22% of all housing.
Most of these homes are in manufactured housing communities, sometimes called land lease communities or mobile home parks. In manufactured housing communities, residents own their homes, but rent the land on which they sit. There are more than 1,650 manufactured housing communities in the Commonwealth.
Manufactured housing community residents are vulnerable to eviction if a community owner decides to terminate the community. This threat has grown recently as rising property values encourage community owners to close the community and sell the land for a so-called higher use.
Because relocation is so difficult for most residents of manufactured housing communities, the protections contained in HB 1673 are essential. The bill would be beneficial first by providing residents and prospective residents of manufactured housing communities with adequate notice of the sale of the community and time to prepare to move.
HB 1673 also grants residents, collectively, a right of first refusal to purchase the community when it is offered for sale.
Many homeowners are unable to move their homes due to the age and condition of the home. For these homeowners, payment for the value of the home left behind will help them move forward. In addition, relocation benefits for those who can move their homes are important and are provided for in HB 1673.
While the Housing Alliance supports HB 1673, we also propose several changes to strengthen it.
- 1. In addition to a right of first refusal when the community is being sold, we suggest an option to purchase when the community is being closed without a sale. The residents may be able to keep the community open and avoid relocation and the disruption of their lives that it would cause.
- 2. When the owner notifies the residents of his intention to sell or close the community, copies of the notice should go to the state and local governments as well.
- 3. Regarding relocation benefits, most states use a specific figure, such as $4,000 for a single section and $8,000 for a multi-section home. This sets a uniform standard across the state which is related to the cost of the move, rather than having the amount of the benefit vary from community to community based on the amount of the lot rent.
- 4. While the bill does state that residents have at least 180 days to move after being notified of a sale, it is important to specify that if a resident organization is exercising its right to purchase the community, no resident shall be forced to leave or be evicted, except for nonpayment of rent or other breaches of the lease.
- 5. In order to ensure that the law is adhered to, we urge the inclusion of a penalty provision making violation of the law a violation of the Unfair Trade Practices and Consumer Protection Law.
Finally, we note that in order to fully implement the provisions of HB 1673, a state loan fund for resident acquisition of manufactured housing communities is essential. Both New York and New Hampshire have such funds which have been successfully used for the creation of resident cooperative manufactured housing communities.
