Florida Senate - 2014                                    SB 1064
       
       
        
       By Senator Latvala
       
       
       
       
       
       20-00425-14                                           20141064__
    1                        A bill to be entitled                      
    2         An act relating to mobile home park lot tenancies;
    3         amending s. 723.003, F.S.; defining the term
    4         “amenity”; amending s. 723.012, F.S.; revising the
    5         requirements of a prospectus or offering circular to
    6         include an additional statement on the front cover or
    7         the first page after a specified date; amending s.
    8         723.037, F.S.; requiring a park owner to give written
    9         notice before reducing amenities; providing that a
   10         homeowners’ association does not have standing to
   11         challenge a reduction in amenities unless agreed to by
   12         a majority of the homeowners; expanding the notice to
   13         include certain information if amenities are reduced;
   14         adding the requirement for a meeting within 30 days
   15         after receipt of the notice that an amenity is
   16         reduced; clarifying that the committee required to be
   17         designated under certain circumstances may not exceed
   18         five mobile home owners; requiring the disclosure of
   19         material factors that resulted in the reduction of
   20         amenities; amending s. 723.061, F.S.; providing
   21         circumstances under which a mobile home park owner may
   22         evict a mobile home owner, a mobile home tenant, a
   23         mobile home occupant, or a mobile home due to a change
   24         of use or rezoning; amending s. 723.071, F.S.;
   25         increasing the number of days available for mobile
   26         home owners to purchase the park; repealing s.
   27         723.075(3), F.S., relating to a homeowner of a
   28         concrete block home in a mobile home park being a part
   29         of the homeowners’ association; amending ss. 73.072
   30         and 723.031, F.S.; conforming cross-references to
   31         changes made by the act; providing an effective date.
   32          
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Section 723.003, Florida Statutes, is reordered
   36  and amended to read:
   37         723.003 Definitions.—As used in this chapter, the term the
   38  following words and terms have the following meanings unless
   39  clearly indicated otherwise:
   40         (1) “Amenity” means a tangible or intangible benefit
   41  offered by a park owner to a home owner, including onsite
   42  recreational facilities and planned programs, services,
   43  activities, and maintenance.
   44         (3)(1)The term “Division” means the Division of Florida
   45  Condominiums, Timeshares, and Mobile Homes of the Department of
   46  Business and Professional Regulation.
   47         (4)(2)The term “Lot rental amount” means all financial
   48  obligations, except user fees, which are required as a condition
   49  of the tenancy.
   50         (5)(3)The term “Mobile home” means a residential
   51  structure, transportable in one or more sections, which is 8
   52  body feet or more in width, over 35 body feet in length with the
   53  hitch, built on an integral chassis, designed to be used as a
   54  dwelling when connected to the required utilities, and not
   55  originally sold as a recreational vehicle, and includes the
   56  plumbing, heating, air-conditioning, and electrical systems
   57  contained therein.
   58         (6)(4)The term “Mobile home lot rental agreement” or
   59  “rental agreement” means a any mutual understanding or lease,
   60  whether oral or written, between a mobile home owner and a
   61  mobile home park owner in which the mobile home owner is
   62  entitled to place his or her mobile home on a mobile home lot
   63  for either direct or indirect remuneration of the mobile home
   64  park owner.
   65         (7)(5)The term “Mobile home owner” or “home owner” means a
   66  person who owns a mobile home and rents or leases a lot within a
   67  mobile home park for residential use.
   68         (8)(6)The term “Mobile home park” or “park” means a use of
   69  land in which lots or spaces are offered for rent or lease for
   70  the placement of mobile homes and in which the primary use of
   71  the park is residential.
   72         (9)(7)The term “Mobile home park owner” or “park owner”
   73  means an owner or operator of a mobile home park.
   74         (10)(8)The term “Mobile home subdivision” means a
   75  subdivision of mobile homes where individual lots are owned by
   76  owners and where a portion of the subdivision or the amenities
   77  exclusively serving the subdivision are retained by the
   78  subdivision developer.
   79         (11)(9)The term “Operator of a mobile home park” means
   80  either a person who establishes a mobile home park on land which
   81  is leased from another person or a person who has been delegated
   82  the authority to act as the park owner in matters relating to
   83  the administration and management of the mobile home park,
   84  including, but not limited to, authority to make decisions
   85  relating to the mobile home park.
   86         (12)(10)The term “Pass-through charge” means the mobile
   87  home owner’s proportionate share of the necessary and actual
   88  direct costs and impact or hookup fees for a governmentally
   89  mandated capital improvement, which may include the necessary
   90  and actual direct costs and impact or hookup fees incurred for
   91  capital improvements required for public or private regulated
   92  utilities.
   93         (13)(11)The term “Proportionate share” as used in
   94  subsection (10) means an amount calculated by dividing equally
   95  among the affected developed lots in the park the total costs
   96  for the necessary and actual direct costs and impact or hookup
   97  fees incurred for governmentally mandated capital improvements
   98  serving the recreational and common areas and all affected
   99  developed lots in the park.
  100         (15)(12)The term “Unreasonable” means arbitrary,
  101  capricious, or inconsistent with this chapter.
  102         (16)(13)The term “User fees” means those amounts charged
  103  in addition to the lot rental amount for nonessential optional
  104  services provided by or through the park owner to the mobile
  105  home owner under a separate written agreement between the mobile
  106  home owner and the person furnishing the optional service or
  107  services.
  108         (2)(14)The term “Discrimination” or “discriminatory” means
  109  that a homeowner is being treated differently as to the rent
  110  charged, the services rendered, or an action for possession or
  111  other civil action being taken by the park owner, without a
  112  reasonable basis for the different treatment.
  113         (14)(15)The term “Resale agreement” means a contract in
  114  which a mobile home owner authorizes the mobile home park owner,
  115  or the park owner’s designee, to act as exclusive agent for the
  116  sale of the homeowner’s mobile home for a commission or fee.
  117         Section 2. Paragraph (b) of subsection (1) of section
  118  723.012, Florida Statutes, is amended to read:
  119         723.012 Prospectus or offering circular.—The prospectus or
  120  offering circular, which is required to be provided by s.
  121  723.011, must contain the following information:
  122         (1) The front cover or the first page must contain only:
  123         (b) The following statements in conspicuous type:
  124         1. THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION
  125  REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN
  126  LEASING A MOBILE HOME LOT. MAKE SURE THAT YOU READ THE ENTIRE
  127  DOCUMENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS
  128  REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT.
  129         2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
  130  NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES, ALL
  131  EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS.
  132         3. ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS
  133  CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR
  134  OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR) AND ITS
  135  EXHIBITS FOR CORRECT REPRESENTATIONS.
  136         4. UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE LESSEE,
  137  THE RENTAL AGREEMENT IS VOIDABLE BY THE LESSEE FOR A PERIOD OF
  138  15 DAYS.
  139         5. UPON A CHANGE IN USE OF THE LAND, YOU MAY BE EVICTED AND
  140  ORDERED TO MOVE YOUR MOBILE HOME WITHIN 6 MONTHS, OR ABANDON
  141  YOUR MOBILE HOME IF THE HOME CANNOT BE RELOCATED. YOU MAY BE
  142  ELIGIBLE FOR ASSISTANCE TO RELOCATE PURSUANT TO SECTIONS 723.061
  143  AND 723.0612, FLORIDA STATUTES.
  144  
  145  Beginning July 1, 2014, the language required in subparagraph 5.
  146  must be included in each new prospectus delivered by the park
  147  owner to a prospective lessee.
  148         Section 3. Section 723.037, Florida Statutes, is amended to
  149  read:
  150         723.037 Lot rental increases; reduction in services, or
  151  utilities, or amenities; change in rules and regulations;
  152  mediation.—
  153         (1) A park owner shall give written notice to each affected
  154  mobile home owner and the board of directors of the homeowners’
  155  association, if one has been formed, at least 90 days before an
  156  prior to any increase in lot rental amount; a or reduction in
  157  services, or utilities, or amenities provided by the park owner;
  158  or a change in rules and regulations. The notice must shall
  159  identify all other affected homeowners, which may be by lot
  160  number, name, group, or phase. If the affected homeowners are
  161  not identified by name, the park owner shall make the names and
  162  addresses available upon request. Rules adopted as a result of
  163  restrictions imposed by governmental entities and required to
  164  protect the public health, safety, and welfare may be enforced
  165  before prior to the expiration of the 90-day period but are not
  166  otherwise exempt from the requirements of this chapter. Pass
  167  through charges must be separately listed as to the amount of
  168  the charge, the name of the governmental entity mandating the
  169  capital improvement, and the nature or type of the pass-through
  170  charge being levied. A notice Notices of increase in the lot
  171  rental amount due to a pass-through charge must shall state the
  172  additional payment and starting and ending dates of each pass
  173  through charge. The homeowners’ association does not shall have
  174  no standing to challenge the increase in lot rental amount;,
  175  reduction in services, or utilities, or amenities; or change of
  176  rules and regulations unless a majority of the affected
  177  homeowners agree, in writing, to such representation.
  178         (2) Notice as required by this section shall, In addition
  179  to the information required in subsection (1), the notice
  180  required under this section is only be required to include the
  181  dollar amount of the relevant portions of the present lot rental
  182  amount that are being increased and the dollar amount of the
  183  proposed increases in lot rental amount if there is an increase
  184  in the lot rental amount; a, the reduction in services, or
  185  utilities, or amenities; or a the change in rules and
  186  regulations and its the effective date thereof.
  187         (3) The park owner shall file annually with the division a
  188  copy of any notice of a lot rental amount increase. The notice
  189  shall be filed by on or before January 1 of each year for any
  190  notice given during the preceding year. If the actual increase
  191  is an amount less than the proposed amount stated in the notice,
  192  the park owner shall notify the division of the actual amount of
  193  the increase within 30 days after of the effective date of the
  194  increase or at the time of filing, whichever is later.
  195         (4)(a) A committee, not to exceed five mobile home owners
  196  in number, designated by a majority of the affected mobile home
  197  owners or by the board of directors of the homeowners’
  198  association, if applicable, and the park owner shall meet, at a
  199  mutually convenient time and place within 30 days after receipt
  200  by the homeowners of the notice of change, to discuss the
  201  reasons for the increase in lot rental amount;, reduction in
  202  services, or utilities, or amenities; or change in rules and
  203  regulations.
  204         (b)1. At the meeting, the park owner or subdivision
  205  developer shall in good faith disclose and explain all material
  206  factors resulting in the decision to increase the lot rental
  207  amount;, reduce services, or utilities, or amenities; or change
  208  rules and regulations, including how those factors justify the
  209  specific change proposed. The park owner or subdivision
  210  developer may not limit the discussion of the reasons for the
  211  change to generalities only, such as, but not limited to,
  212  increases in operational costs, changes in economic conditions,
  213  or rents charged by comparable mobile home parks. For example,
  214  if the reason for an increase in lot rental amount is an
  215  increase in operational costs, the park owner must disclose the
  216  item or items which have increased, the amount of the increase,
  217  any similar item or items which have decreased, and the amount
  218  of the decrease. If an increase is based upon the lot rental
  219  amount charged by comparable mobile home parks, the park owner
  220  shall disclose, and provide in writing to the committee at or
  221  before the meeting, the name, address, lot rental amount, and
  222  any other relevant factors relied upon by the park owner, such
  223  as facilities, services, and amenities, concerning the
  224  comparable mobile home parks. The information concerning
  225  comparable mobile home parks to be exchanged by the parties is
  226  to encourage a dialogue concerning the reasons used by the park
  227  owner for the increase in lot rental amount and to encourage the
  228  home owners to evaluate and discuss the reasons for those
  229  changes with the park owner. The park owner shall prepare a
  230  written summary of the material factors and retain a copy for 3
  231  years. The park owner shall provide the committee a copy of the
  232  summary at or before the meeting.
  233         2. The park owner may shall not limit the comparable mobile
  234  home park disclosure to those mobile home parks that are owned
  235  or operated by the same owner or operator as the subject park,
  236  except in certain circumstances, which include, but are not
  237  limited to:
  238         a. That the market area for comparable mobile home parks
  239  includes mobile home parks owned or operated by the same entity
  240  that have similar facilities, services, and amenities;
  241         b. That the subject mobile home park has unique attributes
  242  that are shared with similar mobile home parks;
  243         c. That the mobile home park is located in a geographic or
  244  market area that contains few comparable mobile home parks; or
  245         d. That there are similar considerations or factors that
  246  would be considered in such a market analysis by a competent
  247  professional and would be considered in determining the
  248  valuation of the market rent.
  249         (c) If the committee disagrees with a park owner’s lot
  250  rental amount increase based upon comparable mobile home parks,
  251  the committee shall disclose to the park owner the name,
  252  address, lot rental amount, and any other relevant factors
  253  relied upon by the committee, such as facilities, services, and
  254  amenities, concerning the comparable mobile home parks. The
  255  committee shall provide to the park owner the disclosure, in
  256  writing, within 15 days after the meeting with the park owner,
  257  together with a request for a second meeting. The park owner
  258  shall meet with the committee at a mutually convenient time and
  259  place within 30 days after receipt by the park owner of the
  260  request from the committee to discuss the disclosure provided by
  261  the committee. At the second meeting, the park owner may take
  262  into account the information on comparable parks provided by the
  263  committee, may supplement the information provided to the
  264  committee at the first meeting, and may modify his or her
  265  position, but the park owner may not change the information
  266  provided to the committee at the first meeting.
  267         (d) The committee and the park owner may mutually agree, in
  268  writing, to extend or continue any meetings required by this
  269  section.
  270         (e) Either party may prepare and use additional information
  271  to support its position during or subsequent to the meetings
  272  required by this section.
  273  
  274  This subsection is not intended to be enforced by civil or
  275  administrative action. Rather, the meetings and discussions are
  276  intended to be in the nature of settlement discussions before
  277  prior to the parties proceed proceeding to mediation of any
  278  dispute.
  279         (5)(a) Within 30 days after the date of the last scheduled
  280  meeting described in subsection (4), the homeowners may petition
  281  the division to initiate mediation of the dispute pursuant to s.
  282  723.038 if a majority of the affected homeowners have
  283  designated, in writing, that:
  284         1. The rental increase is unreasonable;
  285         2. The rental increase has made the lot rental amount
  286  unreasonable;
  287         3. The decrease in services or utilities is not accompanied
  288  by a corresponding decrease in rent or is otherwise
  289  unreasonable; or
  290         4. The change in the rules and regulations is unreasonable.
  291         (b) A park owner, within the same time period, may also
  292  petition the division to initiate mediation of the dispute.
  293         (c) When a dispute involves a rental increase for different
  294  home owners and there are different rates or different rental
  295  terms for those home owners, all such rent increases in a
  296  calendar year for one mobile home park may be considered in one
  297  mediation proceeding.
  298         (d) At mediation, the park owner and the homeowners
  299  committee may supplement the information provided to each other
  300  at the meetings described in subsection (4) and may modify their
  301  position, but they may not change the information provided to
  302  each other at the first and second meetings.
  303  
  304  The purpose of this subsection is to encourage discussion and
  305  evaluation by the parties of the comparable mobile home parks in
  306  the competitive market area. The requirements of this subsection
  307  are not intended to be enforced by civil or administrative
  308  action. Rather, the meetings and discussions are intended to be
  309  in the nature of settlement discussions before prior to the
  310  parties proceed proceeding to litigation of any dispute.
  311         (6) If a party requests mediation and the opposing party
  312  refuses to agree to mediate upon proper request, the party
  313  refusing to mediate is shall not be entitled to attorney
  314  attorney’s fees in any action relating to a dispute described in
  315  this section.
  316         Section 4. Paragraph (d) of subsection (1) of section
  317  723.061, Florida Statutes, is amended to read:
  318         723.061 Eviction; grounds, proceedings.—
  319         (1) A mobile home park owner may evict a mobile home owner,
  320  a mobile home tenant, a mobile home occupant, or a mobile home
  321  only on one or more of the following grounds:
  322         (d) Change in use of the land comprising the mobile home
  323  park, or the portion thereof from which mobile homes are to be
  324  evicted, from mobile home lot rentals to some other use, if:
  325         1. The park owner gives written notice to the homeowners’
  326  association formed and operating under ss. 723.075-723.079 of
  327  its right to purchase the mobile home park, if the land
  328  comprising the mobile home park is changing use from mobile home
  329  lot rentals to a different use, at the price and under the terms
  330  and conditions set forth in the written notice.
  331         a. The notice shall be delivered to the officers of the
  332  homeowners’ association by United States mail. Within 90 45 days
  333  after the date of mailing of the notice, the homeowners’
  334  association may execute and deliver a contract to the park owner
  335  to purchase the mobile home park at the price and under the
  336  terms and conditions set forth in the notice. If the contract
  337  between the park owner and the homeowners’ association is not
  338  executed and delivered to the park owner within the 90-day 45
  339  day period, the park owner is under no further obligation to the
  340  homeowners’ association except as provided in sub-subparagraph
  341  b.
  342         b. If the park owner elects to offer or sell the mobile
  343  home park at a price lower than the price specified in her or
  344  his initial notice to the officers of the homeowners’
  345  association, the homeowners’ association has an additional 10
  346  days to meet the revised price, terms, and conditions of the
  347  park owner by executing and delivering a revised contract to the
  348  park owner.
  349         c. The park owner is not obligated under this subparagraph
  350  or s. 723.071 to give any other notice to, or to further
  351  negotiate with, the homeowners’ association for the sale of the
  352  mobile home park to the homeowners’ association after 6 months
  353  after the date of the mailing of the initial notice under sub
  354  subparagraph a.
  355         2. The park owner has applied to the local government for
  356  change of use or rezoning and gives the affected mobile home
  357  owners and tenants at least 6 months’ notice of the eviction due
  358  to the projected change in use and of their need to secure other
  359  accommodations.
  360         a. The notice of eviction due to a change in use of the
  361  land must include in a font no smaller than the body of the
  362  notice the following statement:
  363  
  364         YOU MAY BE ENTITLED TO COMPENSATION FROM THE FLORIDA
  365         MOBILE HOME RELOCATION TRUST FUND, ADMINISTERED BY THE
  366         FLORIDA MOBILE HOME RELOCATION CORPORATION (FMHRC).
  367         FMHRC CONTACT INFORMATION IS AVAILABLE FROM THE
  368         FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL
  369         REGULATION.
  370  
  371         b. The park owner may not give a notice of increase in lot
  372  rental amount within 90 days before giving notice of a change in
  373  use or within 6 months after the eviction notice.
  374         c. The park owner shall attach a relocation plan to the
  375  application to the local government for change of use or
  376  rezoning. Such plan must indicate monetarily comparable,
  377  suitable, and available facilities for displaced residents. The
  378  application and the attached plan must be provided to the park’s
  379  homeowners’ association with the eviction notice.
  380         Section 5. Paragraph (b) of subsection (1) of section
  381  723.071, Florida Statutes, is amended to read:
  382         723.071 Sale of mobile home parks.—
  383         (1)
  384         (b) The mobile home owners, by and through the association
  385  defined in s. 723.075, shall have the right to purchase the park
  386  if, provided the home owners meet the price and terms and
  387  conditions of the mobile home park owner by executing a contract
  388  with the park owner within 90 45 days after, unless agreed to
  389  otherwise, from the date of mailing of the notice, unless
  390  another timeframe is agreed upon, and if provided they have
  391  complied with ss. 723.075-723.079. If a contract between the
  392  park owner and the association is not executed within such 90
  393  day 45-day period, then, unless the park owner thereafter elects
  394  to offer the park at a price lower than the price specified in
  395  her or his notice to the officers of the homeowners’
  396  association, the park owner has no further obligations under
  397  this subsection, and her or his only obligation is shall be as
  398  described set forth in subsection (2).
  399         Section 6. Subsection (3) of section 723.075, Florida
  400  Statutes, is repealed.
  401         Section 7. Subsection (1) of section 73.072, Florida
  402  Statutes, is amended to read:
  403         73.072 Mobile home parks; compensation for permanent
  404  improvements by mobile home owners.—
  405         (1) If When all or a portion of a mobile home park as
  406  defined in s. 723.003(6) is appropriated under this chapter, the
  407  condemning authority shall separately determine the compensation
  408  for any permanent improvements made to each site. This
  409  compensation shall be awarded to the mobile home owner leasing
  410  the site if:
  411         (a) The effect of the taking includes a requirement that
  412  the mobile home owner remove or relocate his or her mobile home
  413  from the site;
  414         (b) The mobile home owner currently leasing the site has
  415  paid for the permanent improvements to the site; and
  416         (c) The value of the permanent improvements on the site
  417  exceeds $1,000 as of the date of taking.
  418         Section 8. Paragraph (b) of subsection (5) of section
  419  723.031, Florida Statutes, is amended to read:
  420         723.031 Mobile home lot rental agreements.—
  421         (5) The rental agreement shall contain the lot rental
  422  amount and services included. An increase in lot rental amount
  423  upon expiration of the term of the lot rental agreement shall be
  424  in accordance with ss. 723.033 and 723.037 or s. 723.059(4),
  425  whichever is applicable, provided that, pursuant to s.
  426  723.059(4), the amount of the lot rental increase is disclosed
  427  and agreed to by the purchaser, in writing. An increase in lot
  428  rental amount shall not be arbitrary or discriminatory between
  429  similarly situated tenants in the park. No lot rental amount may
  430  be increased during the term of the lot rental agreement,
  431  except:
  432         (b) For pass-through charges as defined in s. 723.003(10).
  433         Section 9. This act shall take effect July 1, 2014.