Whereas, The deferred operation of this act would tend to defeat its purpose which is to immediately clarify the laws relative to manufactured housing communities, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
as follows:
SECTION 1. Chapter 6 of the General Laws is hereby amended by striking out section 108, as appearing in the 1992 Official Edition, and inserting in place thereof the following section:-
Section 108. There shall be a manufactured home commission, hereinafter called the commission, consisting of five members, not more than three of whom shall be of the same political party, to be appointed by the governor, with the advice and consent of the council. At least one of the appointees shall reside in a manufactured housing community and at least one shall be an owner of a manufactured housing community. There shall also be two ex-officio members consisting of the secretary of the executive office of communities and development or a designee and the attorney general or a designee. The commission shall identify issues pertaining to manufactured housing communities, the owners of such communities, and the owners of manufactured homes and shall develop recommendations for means of dealing with these issues. In conjunction with the executive office of communities and development, the commission may develop proposals for specific zoning standards to be applicable to new manufactured housing communities in order to ensure that all such new communities are well designed, attractive, and suited to meeting the needs of manufactured home owners. In conjunction with the executive office of communities and development, the commission may also formulate proposals for local taxation of manufactured homes and manufactured home sites so that municipal tax revenues meet the cost of a municipality's hosting a manufactured housing community. The commission may also receive complaints from manufactured home owners and owners of manufactured housing communities and if appropriate, may make recommendations for their resolution. The commission shall file a report annually with the governor, the general court, the secretary of the executive office of communities and development and the attorney general about its activities and recommendations if any, together with drafts of legislation necessary to carry such recommendations into effect. The members of the commission shall be appointed initially for terms of one, two, three, four, and five years respectively, as the governor may designate. Upon the expiration of the terms of a member, his or her successor shall be appointed by the governor, with the advice and consent of the council, for a term of five years. Members of the commission shall receive no compensation for their services, but shall be reimbursed for necessary travelling expenses incurred in the performance of their duties.
SECTION 2. Section 32B of chapter 140 of the General Laws, as so appearing, is hereby amended by inserting after the first sentence the following sentence:- Such application shall include a true and complete copy of the rules and regulations then in effect for an existing manufactured housing community or, if the application is for an original license, the rules and regulations for the proposed manufactured housing community, together with a certificate from the owner or operator of the community certifying, under the penalties of perjury, that the owner or operator has complied with paragraph (5) of section thirty-two L, that the attorney general and the secretary of communities and development have been in receipt of such rules and regulations and any amendments or additions thereto for at least sixty days, and that neither the attorney general nor the secretary of communities and development has disapproved any portion of such rules and regulations.
SECTION 3. Section 32D of said chapter 140, as so appearing, is hereby amended by inserting after the word "cabin", in line 5, the following words:- or in a conspicuous place at the office of the manager on the site.
SECTION 4. Section 32E of said chapter 140, as so appearing, is hereby amended by striking out, in line 2, the words ", manufactured housing community".
SECTION 4A. Said section 32E of said chapter 140, as so appearing, is hereby further amended by adding the following paragraph:-
Whoever conducts, controls, manages or operates any manufactured housing community subject to sections thirty-two A to thirty-two C, inclusive, which is not licensed under section thirty-two A to thirty-two B or which is not managed or operated in compliance with sections thirty-two A to thirty-two S, inclusive, shall be punished by a fine of one hundred dollars for each day in which such violation occurs or continues.
SECTION 5. Section 32G of said chapter 140, as so appearing, is hereby amended by striking out the third sentence and inserting in place thereof the following sentence:- The manufactured housing community operator shall, not later than the fifth day of each month, file with the licensing authority a list containing the amounts collected together with the name and address of each owner of a manufactured home occupying space during the preceding month or the tenant or subtenant of such space and designating the manufactured homes and the home owners or tenants of the space or such subtenants thereof on account of which no additional license fee is to be collected or deposited under the provisions of the last paragraph of this section.
SECTION 6. Section 32I of said chapter 140, as so appearing, is hereby amended by striking out, in lines 4 and 5, the words "and occupant of a manufactured home or motor vehicle renting space at such park" and inserting in place thereof the following words:- of a manufactured home or motor vehicle renting space in such community and each tenant of such space or subtenant of which the tenant may have notified the operator.
SECTION 7. The second paragraph of section 32J of said chapter 140, as so appearing, is hereby amended by striking out, in line 25, the word "sale." and inserting in place thereof the following:- sale;
(5) in the case of an existing tenancy at will, to create a new tenancy at will at an increased rent in accordance with the provisions of section twelve of chapter one hundred and eighty-six.
SECTION 8. Said section 32J of said chapter 140, as so appearing, is hereby further amended by adding the following paragraph:-
A resident who has been evicted from a manufactured housing community shall have one hundred and twenty days after such eviction in which to sell the resident's manufactured home, subject to the terms of this paragraph. Such resident shall be responsible for the rental amount accruing during the period prior to such sale and shall maintain the manufactured home and lot during such period, on the terms and conditions of the lease or other rental agreement in effect prior to the occurrences of the default or termination of the term of occupancy which resulted in the eviction. If such manufactured home remains on the lot during such period, the owner of the manufactured housing community shall have a lien on the home to the extent such rental amount is not paid or such maintenance is not performed and to the extent of any additional past sums owed to the owner as set forth on any final eviction order issued by a court of competent jurisdiction. Such lien may be perfected by filing in the offices of the town clerk and secretary of state a uniform commercial code statement, prepared by the owner and signed by the former resident at the request of the owner following the issuance of such eviction order. If the former resident fails to sign such statement within ten days after receipt of such statement from the owner, such resident shall not be entitled to the benefits of this paragraph for so long as such failure continues, provided that nothing in the foregoing is intended to prevent the former resident from preparing and filing such a statement. During such one hundred and twenty day period, no person shall reside in such home and the former resident shall use good faith efforts to sell the home.
SECTION 9. Section 32L of said chapter 140, as so appearing, is hereby amended by striking out paragraph (3) and inserting in place thereof the following paragraph:-
(3) A manufactured housing community owner, directly or indirectly engaged in the business of selling manufactured homes, shall not impose any conditions of rental or occupancy which restrict a resident or prospective resident in his choice of a manufactured home dealer unless the lot on which the home is to be placed is being leased or rented for the first time. A manufactured housing community owner shall not impose any conditions of rental or occupancy which restrict the resident in his choice of a seller of fuel, furnishings, goods, services or accessories connected with the rental or occupancy of a manufactured home lot, provided, however, that such seller is in compliance with applicable law and rules and regulations of the community approved by the attorney general and the secretary of communities and development or otherwise then in effect pursuant to paragraph (5) of section thirty-two L of chapter one hundred and forty, including rules imposing reasonable insurance requirements. A manufactured housing community licensee may impose reasonable conditions relating to central fuel and gas meter systems in the community, provided, however, that the charges for such fuel shall not exceed the average prevailing price in the locality.
SECTION 10. Paragraph (5) of said section 32L of said chapter 140, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- If any manufactured housing community owner promulgates, adds, deletes or amends any rule governing the rental or occupancy of a manufactured home site in a manufactured housing community, a new copy of all such rules shall be sent by certified mail, return receipt requested, for approval to the attorney general and the secretary of communities and development at least sixty days prior to the effective date of such promulgation, addition, deletion or amendment.
SECTION 11. Said paragraph (5) of said section 32L of said chapter 140, as so appearing, is hereby further amended by adding the following sentence:- If neither the attorney general nor said secretary takes any action prior to the proposed effective date of such rules or amendment or addition thereto, such rules may be enforced by the manufactured housing community licensee until such time as the attorney general or said secretary subsequently disapproves such rules or portions thereof which disapproval shall apply only prospectively, provided that nothing in this sentence shall preclude a private party from challenging such rules or portions thereof in a court of competent jurisdiction prior to or after such disapproval.
SECTION 12. Paragraph (7) of said section 32L of said chapter 140, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Failure to comply with the provisions of sections thirty-two A to thirty-two S, inclusive, shall constitute an unfair or deceptive practice under the provisions of paragraph (a) of section two of chapter ninety-three A.
SECTION 13. Paragraph (7A) of said section 32L of said chapter 140, as so appearing, is hereby amended by inserting after the word "pending", in line 62, the following words:- change of use or.
SECTION 14. Said paragraph (7A) of said section 32L of said chapter 140, as so appearing, is hereby further amended by striking out the fifth, sixth, seventh and eighth sentences and inserting in place thereof the following eleven sentences:- The manufactured housing community owner shall pay to any tenant who is entitled to receive notice pursuant to paragraph (8) at the tenant's election, either (a) his actual relocation costs or (b) the appraised value of the tenant's manufactured home. Relocation costs shall include the costs of disconnecting and moving the home to the new community selected by the resident within the one hundred mile radius, reconnecting the home with all hook-ups so that it is substantially in the same condition as before the move, with any required and comparable appurtenances, and the reasonable costs of suitable lodging until the move and installation are completed. The appraised value of the manufactured home shall be the fair market value of the home and any existing appurtenances but excluding the value of the underlying land, determined by an independent appraiser agreed to by the community owner and the tenant. If the parties are unable to agree on an independent appraiser within thirty days, either may have recourse to the secretary of communities and development or the secretary's designee, who shall appoint such appraiser within thirty days. The parties shall share the cost of the appraisal equally. In making such determination, the appraiser shall assess fair market value based on the price which a willing and able buyer intending to reside in the home would pay for the home and any existing appurtenances, but excluding the value of the underlying land and shall assume that the home is and will continue to be located on a lot which is leased in a duly licensed manufactured housing community, with all hook-ups and existing appurtenances in place for use and occupancy by the resident. In addition, if the home is then actually located on a lot rented to the home owner by the same person or a predecessor or affiliate of such person or predecessor who sold the home in question within the past ten years to the home owner or a predecessor of such owner, then the appraisal also shall take into account the value to the tenant, if any, which is attributable to a below-market contract rental for the balance of the ten years from the date of sale at the rate at which the lot is leased before delivery of the relocation notice, as increased in accordance with the lease and after its expiration by an annual factor not to exceed the increase in the consumer price index set forth in this paragraph for the twelve-month period immediately preceding delivery of the relocation notice. Otherwise no value shall be attributed to actual existing below-market or above-market rental rates. This paragraph shall not be construed to authorize an early termination of an otherwise enforceable lease with a fixed term or to restrict a tenant's rights at law or in equity with respect thereto. Payment of the appraised value or of the estimated relocation costs, as the case may be, shall be made to the tenant no later than the tenant's departure from the manufactured housing community with adjustments made for the total actual relocation costs upon completion of relocation. Any manufactured housing community owner shall provide a rental agreement to each tenant who is entitled to receive notice pursuant to this section.
SECTION 15. Said paragraph (7A) of said section 32L of said chapter 140, as so appearing, is hereby further amended by inserting after the word "year", in line 98, the following words:- ; provided, however, that if there is a rent control ordinance in existence such increase shall be subject to the provisions of said ordinance and in no event shall any owner whose notice of discontinuance or change of use is not given in good faith be entitled to any increase in rent otherwise permitted hereunder.
SECTION 16. Said section 32L of said chapter 140, as so appearing, is hereby further amended by striking out paragraphs (8) and (9) and inserting in place thereof the following two paragraphs:-
(8) A manufactured housing community owner shall give at least fifteen days written notice, delivered by certified or registered mail, to each manufactured housing community tenant, that the owner will be appearing before a governmental board, commission or body to request a permit for a good faith change of use or discontinuance of the manufactured housing community. No change of use or discontinuance shall be approved or otherwise be effective unless the owner has demonstrated that such change of use or discontinuance is in good faith and the burden of proving such good faith shall be on the owner. Upon a change of use or discontinuance approved by a governmental board, commission, or body, or with respect to a change or discontinuance that requires no local governmental permit or permits, the manufactured housing community owner shall give to each manufactured housing community tenant at least two years written notice, delivered by certified or registered mail, prior to the manufactured housing community owner's determination that a change of use or discontinuance will occur. The owner shall disclose and describe in the notice the nature of the change of use or discontinuance and the reasons therefor.
(9) The manufactured housing community owner shall give each prospective tenant written notice prior to the inception of tenancy that the owner is requesting a change of use or discontinuance before local governmental bodies, or that a change of use or discontinuance has been granted, or that a change of use or discontinuance which requires no governmental approval will occur, noting the effective date of change of use or discontinuance.
SECTION 17. Section 32N of said chapter 140, as so appearing, is hereby amended by inserting after the word "resident", in lines 3, 11, 14, 18 and 20, in each instance, the following words:- or group of residents.
SECTION 18. Said chapter 140 is hereby further amended by striking out section 32P, as so appearing, and inserting in place thereof the following section:-
Section 32P. All terms and conditions of occupancy must be fully disclosed in writing by the manufactured housing community owner to any prospective manufactured housing community resident at a reasonable time prior to the rental or occupancy of a manufactured home lot. Said disclosure shall include, but shall not be limited to, the amount of rent, an itemized list of any charges or fees, the names and addresses of all the owners of the manufactured housing community, and the rules and regulations governing the use of the manufactured home lot and community. Said writing shall contain a bona fide, good faith offer to each new tenant and to each person renewing or extending any existing arrangement or agreement for occupancy of premises in a manufactured housing community for a rental agreement with a term of five years or, where a valid notice of discontinuance is in effect at the time of such offer the balance of the period remaining before the effective date of the discontinuance, at fair market rental rates subject to any applicable rent control restrictions, as an alternative to any other proposed term lengths. Such writing shall be signed by the manufactured housing community owner and contain the following notice printed verbatim in a clear and conspicuous manner:- `tuc IMPORTANT NOTICE REQUIRED BY LAW
The rules set forth below govern the terms of your lease or occupancy with this manufactured housing community. If these rules are changed in any way, the addition, deletion or amendment must be delivered to you, along with a copy of the certified mail receipts indicating that such change has been submitted to the attorney general and the secretary of communities and development and either a copy of the approvals thereof by the attorney general and said secretary or a certificate signed by the owner stating that neither the attorney general nor said secretary has taken any action with respect thereto within the period set forth in paragraph (5) of section thirty-two L of chapter one hundred and forty. This notification must be furnished to you at least thirty days before the change goes into effect. The law requires all of these rules and regulations to be fair and reasonable or said rules and regulations cannot be enforced.
You may continue to stay in the community as long as you pay rent and abide by the rules and regulations. You may only be evicted for nonpayment of rent, violation of law or for substantial violation of the rules and regulations of the community. In addition, no eviction proceedings may be commenced against you until you have received notice by certified mail of the reason for the eviction proceeding and you have been given fifteen days from the date of the notice in which to pay the overdue rent or to cease and desist from any substantial violation of the rules and regulations of the community; provided, however, that only one notice of substantial violation of the rules and regulations of the community is required to be sent to you during any six month period. If a second or additional violation occurs, except for nonpayment of rent, within six months from the date of the first notice, then eviction proceedings may be commenced against you immediately.
You may not be evicted for reporting any violations of law or health and building codes to boards of health, the attorney general, or any other appropriate government agency. Receipt of notice of termination of tenancy by you, except for nonpayment of rent, within six months after your making such a report shall create a rebuttable presumption that such notice is a reprisal and may be pleaded by you in defense to any eviction proceeding brought within one year.
Any group of more than fifty percent of the tenants residing in the manufactured housing community has certain rights under section thirty-two R of chapter one hundred and forty, to purchase the community in the event the owner intends to accept an offer to sell or lease the community in the future. If you wish to receive further information about the financial terms of such a possible purchase, you may so notify the owner at any time by signing the attached Request for Information and returning it to the owner in person or by certified mail. Such request for information shall not obligate you to participate in any purchase of the community. For a proposed sale or lease by the owner which will result in a change of use or a discontinuance of the community you will receive information at least two years before the change becomes effective. Otherwise, Requests for Information or similar notices from more than fifty percent of the tenants residing in the community must be on file with the owner before the owner is required to give you information concerning the financial terms of a sale or lease.
This law is enforceable by the consumer protection division of the attorney general's office. `tuc REQUEST FOR INFORMATION
The undersigned, a tenant in the manufactured housing community known as ___________________ and located at _______________, Massachusetts desires to receive information concerning any proposed sale or lease of the community as required under Section 32R of Chapter 140 of the General Laws. I understand that this request shall not obligate me to participate in any purchase or lease of the community, but is only a request for information. This notice is being delivered to the owner or owner's manager either in person or by certified mail on __________(date)________.
SECTION 19. Said chapter 140 is hereby further amended by striking out section 32R, as so appearing, and inserting in place thereof the following section:-
Section 32R. (a) A manufactured housing community owner shall give notice to each resident of the manufactured housing community of any intention to sell or lease all or part of the land on which the community is located for any purpose. Such notice shall be mailed by certified mail, with a simultaneous copy to the attorney general, the secretary of communities and development, and the local board of health, within fourteen days after the date on which any advertisement, listing, or public notice is first made that the community is for sale or lease and, in any event, at least forty-five days before the sale or lease occurs; provided, that such notice shall also include notice of tenants rights under this section.
(b) Before a manufactured housing community may be sold or leased for any purpose that would result in a change of use or discontinuance, the owner shall notify each resident of the community, with a simultaneous copy to the attorney general, the secretary of communities and development, and the local board of health, by certified mail of any bona fide offer for such a sale or lease that the owner intends to accept. Before any other sale or lease other than leases of single lots to individual residents, the owner shall give each resident such a notice of the offer only if more than fifty percent of the tenants residing in such community or an incorporated home owners' association or group of tenants representing more than fifty percent of the tenants residing in such community notifies the manufactured housing community owner or operator, in writing, that such persons desire to receive information relating to the proposed sale or lease. Any notice of the offer required to be given under this subsection shall include the price, calculated as a single lump sum amount which reflects the present value of any installment payments offered and of any promissory notes offered in lieu of cash payment or, in the case of an offer to rent, the capitalized value of the annual rent and the terms and conditions of the offer.
(c) A group or association of residents representing at least fifty-one percent of the manufactured home owners residing in the community which are entitled to notice under paragraph (b) shall have the right to purchase, in the case of a third party bona fide offer to purchase that the owner intends to accept, or to lease in the case of a third party bona fide offer to lease that the owner intends to accept, the said community for purposes of continuing such use thereof, provided it (1) submits to the owner reasonable evidence that the residents of at least fifty-one percent of the occupied homes in the community have approved the purchase of the community by such group or association, (2) submits to the owner a proposed purchase and sale agreement or lease agreement on substantially equivalent terms and conditions within forty-five days of receipt of notice of the offer made under subsection (b) of this section, (3) obtains a binding commitment for any necessary financing or guarantees within an additional ninety days after execution of the purchase and sale agreement or lease, and (4) closes on such purchase or lease within an additional ninety days after the end of the ninety-day period under clause (3).
No owner shall unreasonably refuse to enter into, or unreasonably delay the execution or closing on a purchase and sale or lease agreement with residents who have made a bona fide offer to meet the price and substantially equivalent terms and conditions of an offer for which notice is required to be given pursuant to paragraph (b). Failure of the residents to submit such a purchase and sale agreement or lease within the first forty-five day period, to obtain a binding commitment for financing within the additional ninety day period or to close on the purchase or lease within the second ninety-day period, shall serve to terminate the rights of such residents to purchase or lease the manufactured housing community. The time periods herein provided may be extended by agreement. Nothing herein shall be construed to require an owner to provide financing to such residents except to the extent such financing would be provided to the third party offeror in the case of a sale or lease for a use which would result in a change of use or discontinuance or to prohibit an owner from requiring such residents who are offering to lease a community to provide a security deposit, not to exceed the lesser of one-year's rent or the amount which would have been required to be provided by the third party offeror, to be kept in escrow for such purposes during the term of the lease. A group or association of residents which has the right to purchase hereunder, at its election, may assign its purchase right hereunder to the city, town, housing authority, or agency of the commonwealth for the purpose of continuing the use of the manufactured housing community.
(d) The right of first refusal created herein shall inure to the residents for the time periods hereinbefore provided, beginning on the date of notice to the residents under paragraph (b). The effective period for such right of first refusal shall obtain separately for each substantially different bona fide offer to purchase or lease the community, and for each offer substantially equivalent to an offer made more than three months prior to the later offer; provided however, that in the case of a substantially equivalent offer made by a prospective buyer who has previously made an offer for which notice to residents was required by said paragraph (b), the right of first refusal shall obtain only if such subsequent offer is made more than six months after the earlier offer. The right of first refusal shall not apply with respect to any offer received by the owner for which a notice is not required pursuant to said paragraph (b). No right of first refusal shall apply to a government taking by eminent domain or negotiated purchase, a forced sale pursuant to a foreclosure by an unrelated third party, transfer by gift, devise or operation of law, or a sale to a person who would be an heir at law if there were to be a death intestate of a manufactured housing community owner.
(e) In any instance where the residents of the manufactured housing community are not the successful purchaser or lessee of such manufactured housing community, the seller or lessor of such community shall provide evidence of compliance with this section by filing an affidavit of compliance with the attorney general, the secretary of communities and development, the local board of health, and the official records of the county where the property is located within seven days of the sale or lease of the community. Any lease of five years or less shall specifically require that such lessee shall not discontinue or change the use of the manufactured housing community during the term of such lease.
(f) In any instance of a sale or lease for which a notice from the owner of the manufactured housing community is not required to be, and is not, given under paragraph (b) and within one year of such sale or lease the new owner or lessee delivers a notice of change of use or discontinuance under paragraph (8) of section thirty-two L, such notice shall provide each tenant in the manufactured housing community with at least four years prior notice of the effective date of the proposed change of use or discontinuance.
SECTION 20. Said chapter 140 is hereby further amended by inserting after section 32R the following section:-
Section 32S. The attorney general from time to time shall promulgate such rules and regulations as he deems necessary for the interpretation, implementation, administration and enforcement of sections thirty-two A to thirty-two S, inclusive. Such authority shall be in addition to, and not in derogation of, the attorney general's authority to promulgate rules and regulations under section two of chapter ninety-three A with respect to manufactured housing communities.
SECTION 21. Sections fourteen, fifteen and sixteen of this act shall apply to pending and future notices of discontinuance.