Senate Bill sb0442c1

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    Florida Senate - 2001                            CS for SB 442

    By the Committee on Regulated Industries and Senators Latvala,
    Brown-Waite, Pruitt, Cowin, Posey, Carlton, Saunders,
    Campbell, Lee, Wasserman Schultz, Sullivan, Dyer, Burt,
    Geller, Sebesta, Miller, Mitchell, Constantine, Bronson,
    Crist, Dawson, King and Sanderson

    315-1484-01

  1                      A bill to be entitled

  2         An act relating to the Florida Mobile Home Act;

  3         amending s. 723.003, F.S.; defining the term

  4         "proportionate share"; amending s. 723.007,

  5         F.S.; providing for imposition of a surcharge

  6         on annual fees; amending s. 723.011, F.S.;

  7         requiring the division to maintain specified

  8         records; requiring that copies be provided

  9         within a specified time after written request;

10         amending s. 723.012, F.S.; revising provisions

11         relating to statements in a prospectus;

12         amending s. 723.037, F.S.; revising procedures

13         for committee meetings that determine the

14         status of changes in lot rentals; amending s.

15         723.061, F.S.; revising timeframes for giving

16         notice of changes in lot rental amounts and use

17         of mobile home parks; creating s. 723.0610,

18         F.S.; providing for the payment of relocation

19         expenses; providing a penalty; providing an

20         effective date.

21

22  Be It Enacted by the Legislature of the State of Florida:

23

24         Section 1.  Present subsections (11), (12), (13), and

25  (14) of section 723.003, Florida Statutes, are redesignated as

26  subsections (12), (13), (14), and (15), respectively, and a

27  new subsection (11) is added to that section to read:

28         723.003  Definitions.--As used in this chapter, the

29  following words and terms have the following meanings unless

30  clearly indicated otherwise:

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  1         (11)  The term "proportionate share" as used in

  2  subsection (10) means an amount calculated by dividing equally

  3  among the affected developed lots in the park the total costs

  4  for the necessary and actual direct costs and impact or hookup

  5  fees incurred for governmentally mandated capital improvements

  6  serving the recreational and common areas and all affected

  7  developed lots in the park.

  8         Section 2.  Section 723.007, Florida Statutes, is

  9  amended to read:

10         723.007  Annual fees; surcharge.--

11         (1)  Each mobile home park owner shall pay to the

12  division, on or before October 1 of each year, an annual fee

13  of $4 for each mobile home lot within a mobile home park which

14  he or she owns.  The division may, after December 31, 1993, by

15  rule, increase the amount of the annual fee to an amount not

16  to exceed $5 for each mobile home lot to fund operation of the

17  division.  If the fee is not paid by December 31, the mobile

18  home park owner shall be assessed a penalty of 10 percent of

19  the amount due, and he or she shall not have standing to

20  maintain or defend any action in the courts of this state

21  until the amount due, plus any penalty, is paid.

22         (2)  There is levied on each annual fee imposed under

23  subsection (1) a surcharge in the amount of $1 upon each

24  mobile home lot that is offered for lease within a mobile home

25  park owned by a mobile home park owner. The surcharge shall be

26  collected in the same manner as the annual fee and shall be

27  deposited into the Mobile Home Relocation Trust Fund if

28  created by law. The surcharge shall begin to be collected

29  during the first year after this subsection takes effect. This

30  surcharge may not be imposed during the next year if the

31  balance in the Mobile Home Relocation Trust Fund exceeds $10

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  1  million. The surcharge shall be reinstated in the next year

  2  after the balance in the Mobile Home Relocation Trust Fund

  3  falls below $6 million. The surcharge imposed by this

  4  subsection may not be imposed as a separate charge regardless

  5  of any disclosure in the prospectus.

  6         Section 3.  Subsection (1) of section 723.011, Florida

  7  Statutes, is amended to read:

  8         723.011  Disclosure prior to rental of a mobile home

  9  lot; prospectus, filing, approval.--

10         (1)(a)  In a mobile home park containing 26 or more

11  lots, the park owner shall file a prospectus with the

12  division.  Prior to entering into an enforceable rental

13  agreement for a mobile home lot, the park owner shall deliver

14  to the homeowner a prospectus approved by the division.  This

15  subsection does shall not be construed to invalidate those lot

16  rental agreements for which an approved prospectus was

17  required to be delivered and which was delivered on or before

18  July 1, 1986, if the mobile home park owner had:

19         1.  Filed a prospectus with the division prior to

20  entering into the lot rental agreement;

21         2.  Made a good faith effort to correct deficiencies

22  cited by the division by responding within the time limit set

23  by the division, if one was set; and

24         3.  Delivered the approved prospectus to the mobile

25  home owner within 45 days of approval by the division.

26

27  This paragraph does shall not preclude the finding that a lot

28  rental agreement is invalid on other grounds and does shall

29  not be construed to limit any rights of a mobile home owner or

30  to preclude a mobile home owner from seeking any remedies

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  1  allowed by this chapter, including a determination that the

  2  lot rental agreement or any part thereof is unreasonable.

  3         (b)  The division shall determine whether the proposed

  4  prospectus or offering circular is adequate to meet the

  5  requirements of this chapter and shall notify the park owner

  6  by mail, within 45 days after of receipt of the document, that

  7  the division has found that either approved the prospectus or

  8  offering circular is adequate or has found specified

  9  deficiencies.  If In the event the division does not make

10  either finding approve the prospectus or advise the park owner

11  of deficiencies within 45 days, the prospectus shall be deemed

12  to have been found adequate be approved.

13         (c)1.  Filings for mobile home parks in which lots have

14  not been offered for lease prior to June 4, 1984, shall be

15  accompanied by a filing fee of $10 per lot offered for lease

16  by the park owner; however, the fee shall not be less than

17  $100.

18         2.  Filings for mobile home parks in which lots have

19  been offered for lease prior to the effective date of this

20  chapter shall be accompanied by a filing fee as follows:

21         a.  For a park in which there are 26-50 lots: $100.

22         b.  For a park in which there are 51-100 lots: $150.

23         c.  For a park in which there are 101-150 lots: $200.

24         d.  For a park in which there are 151-200 lots: $250.

25         e.  For a park in which there are 201 or more lots:

26  $300.

27         (d)  The division shall maintain copies of each

28  prospectus and all amendments to each prospectus which are

29  considered adequate by the division. The division shall

30  provide copies of documents requested in writing under this

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  1  subsection within 10 days after the written request is

  2  received.

  3         Section 4.  Subsection (1) of section 723.012, Florida

  4  Statutes, is amended to read:

  5         723.012  Prospectus or offering circular.--The

  6  prospectus or offering circular, which is required to be

  7  provided by s. 723.011, must contain the following

  8  information:

  9         (1)  The front cover or the first page must contain

10  only:

11         (a)  The name of the mobile home park.

12         (b)  The following statements in conspicuous type:

13         1.  THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION

14  REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN

15  LEASING A MOBILE HOME LOT. MAKE SURE THAT YOU READ THE ENTIRE

16  DOCUMENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS

17  REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT (OFFERING

18  CIRCULAR) CONTAINS IMPORTANT MATTERS TO BE CONSIDERED IN

19  LEASING A MOBILE HOME LOT.

20         2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

21  NATURE.  A PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES,

22  ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES

23  MATERIALS.

24         3.  ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS

25  CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR

26  OPERATOR.  REFER TO THIS PROSPECTUS (OFFERING CIRCULAR) AND

27  ITS EXHIBITS FOR CORRECT REPRESENTATIONS.

28         4.  UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE

29  LESSEE, THE RENTAL AGREEMENT IS VOIDABLE BY THE LESSEE FOR A

30  PERIOD OF 15 DAYS.

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  1         Section 5.  Subsection (4) and paragraph (a) of

  2  subsection (5) of section 723.037, Florida Statutes, are

  3  amended to read:

  4         723.037  Lot rental increases; reduction in services or

  5  utilities; change in rules and regulations; mediation.--

  6         (4)(a)  A committee, not to exceed five in number,

  7  designated by a majority of the affected mobile home owners or

  8  by the board of directors of the homeowners' association, if

  9  applicable, and the park owner shall meet, at a mutually

10  convenient time and place within 30 days after receipt by the

11  homeowners of the notice of change, to discuss the reasons for

12  the increase in lot rental amount, reduction in services or

13  utilities, or change in rules and regulations.

14         (b)  At the meeting, the park owner or subdivision

15  developer shall in good faith disclose and explain all

16  material factors resulting in the decision to increase the lot

17  rental amount, reduce services or utilities, or change rules

18  and regulations, including how those factors justify the

19  specific change proposed. The park owner or subdivision

20  developer may not limit the discussion of the reasons for the

21  change to generalities only, such as, but not limited to,

22  increases in operational costs, changes in economic

23  conditions, or rents charged by comparable mobile home parks.

24  For example, if the reason for an increase in lot rental

25  amount is an increase in operational costs, the park owner

26  must disclose the item or items which have increased, the

27  amount of the increase, any similar item or items which have

28  decreased, and the amount of the decrease. If an increase is

29  based upon the lot rental amount charged by comparable mobile

30  home parks, the park owner shall disclose, and provide in

31  writing to the committee at or before the meeting, the name,

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  1  address, lot rental amount, and any other relevant factors

  2  relied upon by the park owner such as, facilities, services,

  3  and amenities concerning the comparable mobile home parks

  4  relied upon by the park owner. The park owner shall prepare a

  5  written summary of the material factors and retain a copy for

  6  3 years. The park owner shall provide the committee a copy of

  7  the summary at or before the meeting.

  8         (c)  If the committee disagrees with a park owner's lot

  9  rental amount increase based upon comparable mobile home

10  parks, the committee shall disclose to the park owner the

11  name, address, lot rental amount, and any other relevant

12  factors relied upon by the committee such as, facilities,

13  services, and amenities concerning the comparable mobile home

14  parks. The committee shall provide to the park owner the

15  disclosure, in writing, within 15 days after the meeting with

16  the park owner, together with a request for a second meeting.

17         (d)  The committee and the park owner may mutually

18  agree, in writing, to extend or continue any meetings required

19  by this section.

20         (e)  Either party may prepare and use additional

21  information to support its position during or subsequent to

22  the meetings required by this section.

23         (5)(a)  Within 30 days after the date of the last

24  scheduled meeting date described in subsection (4), the

25  homeowners may petition the division to initiate mediation of

26  the dispute pursuant to s. 723.038 if a majority of the

27  affected homeowners have designated, in writing, that:

28         1.  The rental increase is unreasonable;

29         2.  The rental increase has made the lot rental amount

30  unreasonable;

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  1         3.  The decrease in services or utilities is not

  2  accompanied by a corresponding decrease in rent or is

  3  otherwise unreasonable; or

  4         4.  The change in the rules and regulations is

  5  unreasonable.

  6         Section 6.  Section 723.061, Florida Statutes, is

  7  amended to read:

  8         723.061  Eviction; grounds, proceedings.--

  9         (1)  A mobile home park owner may evict a mobile home

10  owner or a mobile home only on one or more of the grounds

11  provided in this section.

12         (a)  Nonpayment of lot rental amount.  If a mobile home

13  owner fails to pay the lot rental amount when due and if the

14  default continues for 5 days after delivery of a written

15  demand by the mobile home park owner for payment of the lot

16  rental amount, the park owner may terminate the tenancy.

17  However, if the mobile home owner pays the lot rental amount

18  due, including any late charges, court costs, and attorney's

19  fees, the court may, for good cause, deny the order of

20  eviction, provided such nonpayment has not occurred more than

21  twice.

22         (b)  Conviction of a violation of a federal or state

23  law or local ordinance, which violation may be deemed

24  detrimental to the health, safety, or welfare of other

25  residents of the mobile home park.

26         (c)  Violation of a park rule or regulation, the rental

27  agreement, or this chapter.

28         1.  For the first violation of any properly promulgated

29  rule or regulation, rental agreement provision, or this

30  chapter which is found by any court having jurisdiction

31  thereof to have been an act which endangered the life, health,

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  1  safety, or property of the park residents or the peaceful

  2  enjoyment of the mobile home park by its residents, the mobile

  3  home park owner may terminate the rental agreement, and the

  4  mobile home owner will have 7 days from the date that the

  5  notice is delivered to vacate the premises.

  6         2.  For a second violation of the same properly

  7  promulgated rule or regulation, rental agreement provision, or

  8  this chapter within 12 months, the mobile home park owner may

  9  terminate the tenancy if she or he has given the mobile home

10  owner written notice within 30 days of the first violation,

11  which notice specified the actions of the mobile home owner

12  which caused the violation and gave the mobile home owner 7

13  days to correct the noncompliance. The mobile home owner must

14  have received written notice of the ground upon which she or

15  he is to be evicted at least 30 days prior to the date on

16  which she or he is required to vacate.  A second violation of

17  a properly promulgated rule or regulation, rental agreement

18  provision, or this chapter within 12 months of the first

19  violation is unequivocally a ground for eviction, and it is

20  not a defense to any eviction proceeding that a violation has

21  been cured after the second violation.  Violation of a rule or

22  regulation, rental agreement provision, or this chapter after

23  the passage of 1 year from the first violation of the same

24  rule or regulation, rental agreement provision, or this

25  chapter does not constitute a ground for eviction under this

26  section.

27

28  No properly promulgated rule or regulation may be arbitrarily

29  applied and used as a ground for eviction.

30         (d)  Change in use of the land comprising the mobile

31  home park, or the portion thereof from which mobile homes are

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  1  to be evicted, from mobile home lot rentals to some other use,

  2  provided all tenants affected are given at least 6 month's 1

  3  year's notice of the projected change of use and of their need

  4  to secure other accommodations. The park owner may not give a

  5  notice of increase in lot rental amount 90 days before giving

  6  notice of a change in land use.

  7         (e)  Failure of the purchaser of a mobile home situated

  8  in the mobile home park to be qualified as, and to obtain

  9  approval to become, a tenant, if such approval is required by

10  a properly promulgated rule.

11         (2)  In the event of eviction for change of land use,

12  homeowners must object to the change in land use by

13  petitioning for administrative or judicial remedies within 90

14  days of the date of the notice or they will be barred from

15  taking any subsequent action to contest the change in land

16  use. This provision shall not be construed to prevent any

17  homeowner from objecting to a zoning change at any time.

18         (a)  Within 90 days from the time the park owner gives

19  the 1-year notice, she or he shall notify the homeowner of her

20  or his election to either buy the mobile home, relocate the

21  mobile home to another park owned by the park owner, or pay to

22  relocate the mobile home to another mobile home park, as

23  follows:

24         1.  Pay as damages the actual cost, including setup

25  fees, to move an evicted mobile home, with comparable and any

26  required appurtenances, to a comparable mobile home park

27  within a 50-mile radius of the mobile home park or other

28  distance agreed upon by the park owner and mobile home owner.

29  Since the amount of damages that a homeowner will suffer due

30  to the change in land use by the park owner cannot be easily

31  estimated and would be difficult and expensive to determine,

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  1  it is the intent of the Legislature that the payment contained

  2  herein be considered in the nature of liquidated damages and

  3  not a penalty.  It is the intent of the Legislature that the

  4  liquidated damages to which the mobile home owner is entitled

  5  be limited to the damages defined in this subparagraph only

  6  for so long as this subsection remains in effect. The

  7  liquidated damages apply only to the harm incurred by the

  8  homeowner for having to relocate, and this provision shall not

  9  preclude incidental damages that might occur in relocating the

10  mobile home;

11         2.  Purchase the mobile home and all appurtenances

12  thereto at a value to be determined as follows:

13         a.  A mutually agreed upon appraiser will assess the

14  book value of the mobile home and cash value of all

15  appurtenances thereto and the market value of the mobile home

16  as situated immediately prior to the notice of change in land

17  use.  Any nationally recognized publication for valuation of

18  mobile and manufactured homes shall be used as a guide for

19  determining such value.

20         b.  The homeowner will be entitled to the book value of

21  the mobile home and cash value of the appurtenances.

22         c.  The homeowner will also be entitled to the

23  following portion of the difference between the book value and

24  cash value of the appurtenances and the market value of the

25  mobile home.  If the homeowner has resided in the mobile home

26  at the time of notice of land use change by the park owner:

27         0 years up to 5 years........................40 percent

28         5 years up to 15 years.......................60 percent

29         15 years up to 20 years.....................80 percent 

30         20 years or more............................100 percent

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  1         d.  The homeowner who has become a resident of the park

  2  within 0-5 years of the notice of change in land use shall be

  3  entitled, in addition to the compensation set forth above, to

  4  60 percent of the difference between the book value and the

  5  market value of the mobile home.

  6         e.  Between the date of the appraisals referred to in

  7  this subsection and the delivery of title and possession of

  8  the mobile home and all appurtenances thereto to the park

  9  owner, the mobile home and the appurtenances shall be

10  maintained by the homeowner in the condition existing on the

11  date of the appraisals, ordinary wear and tear excepted; or

12         3.  Reach a mutually agreed to settlement between the

13  park owner and the homeowner.

14         (b)  Either the mobile home owner or the park owner may

15  apply to the circuit court in the county where the mobile home

16  lot is located for purposes of selecting an appraiser to

17  determine the value of the mobile home and appurtenances or

18  for resolution of any other dispute arising under this

19  subsection.

20         (c)  In any dispute in a circuit court regarding the

21  value of the mobile home as appraised pursuant to this

22  subsection, the court shall determine the amount to be

23  deposited into the registry of the court as will fully secure

24  and fully compensate the homeowner as ultimately determined by

25  the final judgment.  The court shall fix the time within which

26  and the terms upon which the homeowner shall be required to

27  surrender possession and title to the park owner. The order of

28  the court shall not become effective unless the deposit of the

29  required sum is made in the registry of the court.

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  1         (3)(d)  The provisions of s. 723.083 shall not be

  2  applicable to any park where the provisions of this subsection

  3  apply.

  4         (4)(3)  A mobile home park owner applying for the

  5  removal of a mobile home owner or a mobile home, or both,

  6  shall file, in the county court in the county where the mobile

  7  home lot is situated, a complaint describing the lot and

  8  stating the facts that authorize the removal of the mobile

  9  home owner and the mobile home.  The park owner is entitled to

10  the summary procedure provided in s. 51.011, and the court

11  shall advance the cause on the calendar.

12         (5)(4)  Any notice required by this section must be in

13  writing, and must be posted on the premises and sent to the

14  mobile home owner by certified or registered mail, return

15  receipt requested, addressed to the mobile home owner at her

16  or his last known address.  Delivery of the mailed notice

17  shall be deemed given 5 days after the date of postmark.

18         Section 7.  Section 723.0610, Florida Statutes, is

19  created to read:

20         723.0610  Change in land use; relocation expenses;

21  payments by park owner.--

22         (1)  If a mobile home owner is required to move due to

23  a change in use of the park as set forth in 723.061(1)(d) and

24  the mobile home owner complies with the requirements of this

25  section, the mobile home owner is entitled to payment from the

26  Mobile Home Relocation Trust Fund, if created by law, as

27  follows:

28         (a)  The amount of actual moving expenses of relocating

29  the mobile home to a new location within a 50-mile radius of

30  the vacated park, or the amount of $5,000 for a single-section

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  1  mobile home, or $10,000 for a multisection home, whichever is

  2  less.

  3         (b)  Moving expenses include the cost of taking down,

  4  moving, and setting up the mobile home in a new location.

  5         (2)  Except as provided in subsection (3), upon the

  6  occurrence of a change in use, the park owner shall pay to the

  7  Mobile Home Relocation Trust Fund, if created by law, $2,000

  8  for each single-section home and $2,500 for each multisection

  9  home for which a homeowner has made application for payment of

10  moving expenses.

11         (3)  A park owner is not required to make the payment

12  prescribed in subsection (2) nor is the homeowner entitled to

13  compensation under subsection (1) when:

14         (a)  The park owner moves a home owner to another space

15  in the mobile home park or to another mobile home park at the

16  park owner's expense;

17         (b)  A homeowner is vacating the premises and has

18  informed the park owner or manager before the change in use

19  notice has been given; or

20         (c)  A homeowner abandons the mobile home as set forth

21  in subsection (8).

22         (4)  Except as provided in subsection (8), in order to

23  obtain payment from the trust fund, the home owner shall

24  submit to the Florida Mobile Home Relocation Corporation, if

25  created by law, with a copy to the mobile home park owner, an

26  application for payment which includes:

27         (a)  A copy of the notice of eviction due to change in

28  land use; and

29         (b)  A contract with a moving or towing contractor for

30  the moving expenses for the mobile home.

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  1         (5)  The corporation must approve payment from the fund

  2  within 15 days after receipt of the information set forth in

  3  subsection (4) or payment is deemed approved. A copy of the

  4  approval must be forwarded to the mobile home park owner with

  5  an invoice for payment under subsection (2). Upon approval,

  6  the corporation shall make payment immediately, but in any

  7  event before the time of relocation.

  8         (6)  Actions by the corporation under this section are

  9  not subject to the provisions of chapter 120, but are

10  reviewable only by writ or certiorari in the circuit court in

11  the county in which the claimant resides in the manner and

12  within the time provided by the Florida Rules of Appellate

13  Procedure.

14         (7)  This section does not apply to any proceeding in

15  eminent domain under chapter 73 or chapter 74.

16         (8)  In lieu of collecting payment from the trust fund

17  as set forth in subsection (1), a mobile home owner may

18  abandon the mobile home in the mobile home park and collect an

19  amount equal to one-fourth of the maximum allowable moving

20  expenses from the trust fund as long as the home owner

21  delivers to the park owner the current title to the mobile

22  home duly endorsed by the owner of record and valid releases

23  of all liens shown on the title. If a homeowner chooses this

24  option, the park owner shall make payment to the relocation

25  trust fund in an amount equal to one-fourth of the maximum

26  allowable moving expenses.

27         (9)  Neither the corporation nor the trust fund is

28  liable to any person for recovery if the trust fund does not

29  have the money necessary to pay the amounts claimed. If the

30  trust fund does not have sufficient assets to pay the

31  claimant, it shall keep a record of the time and date of its

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  1  determination for payment to a claimant. If money becomes

  2  available, the corporation shall pay the claimant whose unpaid

  3  claim is the earliest by time and date of determination.

  4         (10)  It is unlawful for any person or his or her agent

  5  to file any notice, statement, or other document required

  6  under this section which is false or contains any material

  7  misstatement of fact. Any person who violates this subsection

  8  commits a misdemeanor of the second degree, punishable as

  9  provided in s. 775.082 or s. 775.083.

10         Section 8.  This act shall take effect July 1, 2001.

11

12          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
13                              SB 442

14

15  The CS/SB 442:

16  -Removes from existing statutes the requirement to relocate or
    purchase the mobile home of a tenant evicted for a change in
17  land use;

18  -Creates a new system of compensation for mobile home owners
    evicted from a park due to a change in land use, a system that
19  is dependent upon the creation in another bill of the Mobile
    Home Relocation Trust Fund and the Florida Mobile Home
20  Relocation Corporation; and

21  -Deletes from the bill provisions on the mobile home owners'
    bill of rights, division of enforcement of unreasonable rental
22  agreements, division involvement in remedies for violation of
    good faith and fair dealing, injunctive relief for violation
23  of rules and regulations, sale of parks, records retention by
    park owners, and sample calculations of maximum rents in the
24  prospectus.

25

26

27

28

29

30

31

                                  16

CODING: Words stricken are deletions; words underlined are additions.