
June 19, 2009 |
2009-R-0230 | |
COTTAGE COMMUNITIES AND MOBILE MANUFACTURED HOME PARKS | ||
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By: Daniel Duffy, Principal Analyst | ||
You asked for a comparison of the statutory rights of a cottage association resident who owns the cottage and leases its lot with those of a mobile manufactured home park resident who owns the mobile manufactured home and leases its lot.
SUMMARY
For cottage association residents, the law gives a residents' association the right to buy the land if an owner intends to sell and the sale will change the land's use. The law gives an association of mobile manufactured home residents the same right and many others, including relocation assistance; park licensure, which guarantees the park meets certain physical standards; minimum standards for disclosure statements and rental agreements; and protection from retaliation. The report does not discuss rights of mobile manufactured home tenants who rent both the home and the lot.
The law requires mobile manufactured home parks to be licensed by the Department of Consumer Protection (DCP) and requires its owner to keep it clean, orderly, and sanitary. The owner must (1) use lot leases that meet minimum state standards and (2) provide residents with the name, address, and telephone number of a contact person who is always available.
A resident who believes a park owner is not abiding by state law has the right to file a complaint with DCP, which can hold a hearing and discipline the park owner if such action is warranted. A park owner found to be violating the law may be fined and have his license to operate the park suspended, revoked, or not renewed. An owner is prohibited from collecting rent for any period of time that (1) he does not have a license in good standing or (2) fails to comply with his statutory responsibilities in a way that materially affects the residents' health and safety the park's habitability.
A park owner may not retaliate against a resident who, in good faith, files a complaint against him or asks for repairs to be made.
LEASED COTTAGE COMMUNITY
An owner of the land on which a leased cottage community stands must give written notice to each cottage owner if he or she intends to sell it and the sale will change the land's use. The law defines “leased cottage community” as a plot of land upon which two or more cottages are occupied for residential purposes. This law does not apply to a common interest community, a condominium, or a community land trust.
The notice must inform the resident that a cottage association has the right of first refusal. Specifically, the law gives a cottage association the right to match all material terms of any bona fide offer to purchase the entire leased cottage community, or a part of it if the part includes all of the occupied cottages. The association must consist of at least 51% of the cottages in the community to qualify to have the right. It has 45 days after receiving the notice to exercise its right. The matching offer must be in writing and signed by a person on the association's behalf. The land owner must deposit any matching amount tendered by a cottage association in an escrow account in a financial institution authorized to do business in Connecticut until the time of closing. A real estate closing must take place within 60 days after the cottage association gives notice that it will purchase all or part of the community (CGS §§ 21-90 and 21-91).
MOBILE MANUFACTURED HOMES
Selling a Mobile Manufactured Home Park and Changing the Use of its Land
A park owner who intends to change the land use or to sell a park for a proposed land use change, must give at least 120 days written notice to each tenant. The notice must inform the recipient of the intended change. If a residents' association has requested, the park owner must also send it a copy of the notice.
The law requires park owners who intend to close a park to give written notice to the commissioners of consumer protection and economic and community development, the chief local elected official, and to a residents' association that has requested one. The notice must be given at least 90 days before refusing to renew leases due to the impending closing (CGS §§ 21-70 and 21-70a).
Residents' Association's Right to Buy
An association representing at least 25% of a park's units may notify the park owner of its interest in purchasing the park; the association has 120 days after receiving the notice from the park owner to respond. It may file a copy of the notice on town land records. If the notice is given, the association has 365 days after the park owner's notice was given to purchase the park. The parties may determine the price through negotiation or, if they cannot agree, the association can purchase the park (1) by matching the essential provisions of an existing bona fide offer made by a potential purchaser that the park owner is prepared to accept or (2) at a price determined by an appraiser chosen by the park owner and association. If they cannot agree on an appraiser, the law requires both parties to choose an appraiser. The two appraisers choose a third, and the three determine the park's value. If the park owner refuses to choose an appraiser, the law requires the consumer protection commissioner to choose one for him. The association and park owner must share equally the costs of the appraisers.
The association's right to buy the park is void if after 365 days (1) a purchase agreement has not been signed or (2) the association has not filed a certified statement to purchase the park at the appraised value on the land records (CGS § 21-70).
Relocation Assistance
The law gives a park resident who owns his mobile manufactured home the right to relocation assistance from the park owner if the use of the park's land changes. The relocation assistance is equal to the cost of relocating the home to a park satisfactory to the resident within 100 miles up to a maximum of $ 10,000 or, if a satisfactory site is unavailable, equal to $ 10,000 (CGS § 21-70a).
Park Owner's Responsibilities
The law requires park owners to:
1. comply with the state building code, the fire safety code, and all applicable state laws and regulations, local ordinances, and planning and zoning regulations materially affecting health and safety;
2. maintain the premises and regrade them when necessary to prevent the accumulation of stagnant water or the detrimental effects of moving water;
3. maintain the ground at such a level that the mobile manufactured home will not tilt;
4. keep each lot marked so that each resident is certain of his area of responsibility;
5. keep exterior areas that are not the responsibility of a resident free of noxious or detrimental weeds;
6. make all repairs and do whatever it takes to put and keep the portion of the mobile manufactured home park not the responsibility of residents in a fit and habitable condition;
7. keep all common areas clean and safe;
8. be responsible for exterminating insects, rodents, vermin, or other pests dangerous to residents' health whenever an occurs in (1) the areas that are not the responsibility of a resident or (2) the area for which a resident is responsible (including the home) if the infestation is not the resident's fault;
9. keep all electrical, plumbing, gas, or other utilities in good working condition, except during an emergency after which repairs must be done within 72 hours, absent good cause;
10. keep all water and sewage lines and connections in good working order and provide temporary service in an emergency;
11. arrange for the removal of ashes, garbage, rubbish, and other waste from waste containers;
12. keep all park roads in good condition, provide parking space for two cars for each lot, and be responsible for damage to a vehicle which is the direct result of an unrepaired or poorly maintained road;
13. respect the resident's privacy;
14. allow residents to choose their own service providers; and
15. allow a resident to terminate a rental agreement whenever a change in the location of the resident's employment requires a change in the location of his residence if the resident gives 30 days' notice; but a resident who is a member of the U. S. armed forces may terminate the rental agreement with less than 30 days notice if he or she receives reassignment orders that do not allow such prior notification (CGS § 21-82).
Disclosure Statement and Rental Agreement
The law requires a park owner to provide a disclosure statement to prospective residents before they sign rental agreements and to residents at the first renewal (CGS § 21-70(a)). DCP determines the text of the disclosure statement, which is contained in regulation (Conn. Agencies Regs. § 21-70-3).
The law prohibits and makes unenforceable in court provisions in a mobile manufactured home park rental agreement that:
1. waive a resident's rights or remedies under state or local law, unless the law expressly states that such rights may be waived;
2. allow the owner to terminate the rental agreement for failure to pay rent, unless rent is unpaid when due and the resident fails to pay rent within nine days thereafter;
3. allow the owner to collect a penalty for late rental payment, without allowing the resident a minimum of nine days after the due date in which to pay, or that provide for the rental payment to be reduced if it is paid before the grace period expires;
4. allow the owner to charge a late rental payment fee that is more than 5% of the rent;
5. allow the owner to increase the rent or change the payment arrangements during the term of the rental agreement;
6. allow the owner to charge more than one month's rent for a security deposit or to keep the security deposit after the rental agreement's term if the rent is paid in full and the resident has not damaged the property;
7. allow the owner to charge an entrance fee;
8. authorize the owner to confess judgment on a claim arising out of the rental agreement;
9. waive a cause of action against, or indemnification from, an owner by a resident for any injury or harm the resident, his family, or his guests suffer, or damage to the resident's property, or that of his family or his guests resulting from the owner's negligence;
10. allow the owner to evict the resident without resort to court order;
11. allow the owner to seize the resident's property for rent;
12. agree to pay the owner's attorney's fees more than 15% of a judgment against the resident in any action in which monetary damages are awarded; and
13. deny the resident the right to treat as a breach of the agreement, a continuing violation by the owner, substantial in nature, of any provision in the rental agreement or state statute, unless the owner stops violating it within a reasonable time after being notified by the resident (CGS § 21-83).
State Regulation
The law provides some protection for a mobile manufactured home parks to be licensed by DCP and residents may complain to it if they believe the park owner is failing to meet his statutory duties. DCP has the power to revoke, suspend, or refuse to renew a license for violating any provision of the statutes governing mobile manufactured home parks, their implementing regulations, or any other state or local law or regulation (CGS § 21-71). Typically, the department must hold a hearing before imposing any discipline. But if, after investigation, DCP finds that a licensee is not providing adequate sewerage facilities, electrical, plumbing or sanitary services, water supply, or fire protection, it must suspend the license automatically and give the owner an opportunity for a hearing within five days after the suspension. If DCP suspends, revokes, or refuses to renew a license, the park owner may not collect rents or any other consideration until the license is reinstated or reissued. In this case, DCP may apply for receivership to operate the park and assess the cost on the owner. It may also collect rents and fees and use the proceeds to provide services. If the department finds that conditions constitute a threat to the health or safety of residents, it may require the owner to post a bond in an amount it determines to pay for the costs of remedying the situation (CGS § 21-73).
Protection against Retaliation
The law protects a resident who makes a good faith complaint to a state or local official. Specifically, it prohibits the owner from decreasing services to which the resident has been entitled within six months if: (1) the resident has, in good faith, tried to solve a problem by any legal means, including contacting state or local officials, and complaining of any condition constituting a violation of any provision of mobile manufactured home law or of any other state statute or regulation, or of the local housing and health; (2) a local official has filed a notice about such a violation; (3) the resident has in good faith requested the owner to make repairs and initiated an action under landlord-tenant law; or (4) the resident has organized or become a member of a residents' association. It also prohibits a park owner from (1) maintaining an action against a resident to recover possession of a mobile manufactured home lot or (2) demanding an increase in rent from the resident.
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