Florida Senate - 2012                                     SB 822
       
       
       
       By Senator Fasano
       
       
       
       
       11-00796-12                                            2012822__
    1                        A bill to be entitled                      
    2         An act relating to mobile home parks; amending s.
    3         723.003, F.S.; defining the term “amenity”; amending
    4         s. 723.006, F.S.; providing preconditions for the
    5         amendment of a prospectus or offering circular;
    6         amending s. 723.011, F.S.; providing additional
    7         disclosure requirements before the rental of a mobile
    8         home lot; requiring the Division of Florida
    9         Condominiums, Timeshares, and Mobile Homes to create a
   10         mobile home disclosure document for certain purposes;
   11         providing intent and purpose of disclosure; amending
   12         s. 723.012, F.S.; providing additional required
   13         prospectus or offering circular information relating
   14         to change of land use; amending s. 723.037, F.S.;
   15         providing notice requirements for a reduction in
   16         services, utilities, or amenities by a park owner;
   17         providing what constitutes the market area or the
   18         competitive area for comparable mobile home parks;
   19         amending s. 723.06116, F.S.; increasing fees for
   20         mobile home park owner applications for payment of
   21         moving expenses; amending s. 723.0612, F.S.; revising
   22         the payment amounts mobile home owners are entitled
   23         from the Florida Mobile Home Relocation Corporation
   24         under certain conditions involving a change in land
   25         use; amending s. 723.075, F.S.; deleting a provision
   26         authorizing homeowners of certain concrete block homes
   27         to be part of the homeowners’ association and to serve
   28         on the board of directors of the association under
   29         certain circumstances; amending s. 553.382, F.S.;
   30         correcting a reference; providing an effective date.
   31  
   32  Be It Enacted by the Legislature of the State of Florida:
   33  
   34         Section 1. Subsection (16) is added to section 723.003,
   35  Florida Statutes, to read:
   36         723.003 Definitions.—As used in this chapter, the following
   37  words and terms have the following meanings unless clearly
   38  indicated otherwise:
   39         (16) The term “amenity” means any tangible or intangible
   40  benefit offered to a tenant at no fee, typically onsite
   41  recreational facilities or planned programs, services, and
   42  activities, as established by the National Council of Affordable
   43  Housing Market Analysts.
   44         Section 2. Subsection (8) of section 723.006, Florida
   45  Statutes, is amended to read:
   46         723.006 Powers and duties of division.—In performing its
   47  duties, the division has the following powers and duties:
   48         (8) The division has the authority by rule to authorize
   49  amendments permitted by this chapter to an approved prospectus
   50  or offering circular. At least 60 days before submitting any
   51  amendment to the division, the mobile home park owner must meet
   52  with the homeowners’ association or, if a homeowners’
   53  association has not been established, a committee, not to exceed
   54  five members, designated by a majority of the affected
   55  homeowners, to provide the association or committee with the
   56  amendments to the prospectus or offering circular. Before
   57  approving any amendments to a prospectus or offering circular,
   58  the division shall provide notice of the amendments to the
   59  homeowners’ association or, if a homeowners’ association has not
   60  been established, to a committee, not to exceed five members,
   61  designated by a majority of the affected homeowners. The
   62  division may not approve an amendment unless the requirements of
   63  this subsection are met.
   64         Section 3. Subsections (2) and (3) of section 723.011,
   65  Florida Statutes, are amended to read:
   66         723.011 Disclosure prior to rental of a mobile home lot;
   67  prospectus, filing, approval.—
   68         (2) The park owner shall furnish to each prospective lessee
   69  a copy of the prospectus or offering circular together with all
   70  of the exhibits thereto and a mobile home expense disclosure
   71  document containing all the information required by s.
   72  723.012(7), (8), (9), and (10) to each prospective lessee. The
   73  mobile home expense disclosure document shall include past,
   74  present, and estimated future lease-year amounts and any other
   75  factors that may affect rent variations, such as lot location or
   76  size. The division shall create the mobile home disclosure
   77  document through its rulemaking authority. Delivery shall be
   78  made prior to execution of the lot rental agreement or at the
   79  time of occupancy, whichever occurs first. Upon delivery of a
   80  prospectus to a prospective lessee, the lot rental agreement is
   81  voidable by the lessee for a period of 15 days. However, the
   82  park owner is not required to furnish a copy of the prospectus
   83  or offering circular if the tenancy is a renewal of a tenancy
   84  and the mobile home owner has previously received the prospectus
   85  or offering circular.
   86         (3) The prospectus or offering circular together with its
   87  exhibits and the mobile home expense disclosure document are is
   88  a disclosure documents document intended to afford protection to
   89  homeowners and prospective homeowners in the mobile home park.
   90  The purpose of the documents document is to disclose the
   91  representations of the mobile home park owner concerning the
   92  operations of the mobile home park.
   93         Section 4. Paragraph (b) of subsection (1) of section
   94  723.012, Florida Statutes, is amended to read:
   95         723.012 Prospectus or offering circular.—The prospectus or
   96  offering circular, which is required to be provided by s.
   97  723.011, must contain the following information:
   98         (1) The front cover or the first page must contain only:
   99         (b) The following statements in conspicuous type:
  100         1. THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION
  101  REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN
  102  LEASING A MOBILE HOME LOT. MAKE SURE THAT YOU READ THE ENTIRE
  103  DOCUMENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS
  104  REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT.
  105         2. THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
  106  NATURE. A PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES, ALL
  107  EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES MATERIALS.
  108         3. ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS
  109  CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR
  110  OPERATOR. REFER TO THIS PROSPECTUS (OFFERING CIRCULAR) AND ITS
  111  EXHIBITS FOR CORRECT REPRESENTATIONS.
  112         4. UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE LESSEE,
  113  THE RENTAL AGREEMENT IS VOIDABLE BY THE LESSEE FOR A PERIOD OF
  114  15 DAYS.
  115         5. UPON A CHANGE OF LAND USE, YOU MAY BE EVICTED AND
  116  ORDERED TO MOVE YOUR MOBILE HOME WITHIN SIX MONTHS, OR FORFEIT
  117  YOUR MOBILE HOME IF THE HOME CANNOT BE RELOCATED, PURSUANT TO
  118  SECTION 723.061, FLORIDA STATUTES.
  119         Section 5. Subsections (1) and (2) and paragraphs (a) and
  120  (b) of subsection (4) of section 723.037, Florida Statutes, are
  121  amended, paragraph (e) of subsection (4) is redesignated as
  122  paragraph (f), and a new paragraph (e) is added to subsection
  123  (4) of that section, to read:
  124         723.037 Lot rental increases; reduction in services, or
  125  utilities, or amenities; change in rules and regulations;
  126  mediation.—
  127         (1) A park owner shall give written notice to each affected
  128  mobile home owner and the board of directors of the homeowners’
  129  association, if one has been formed, at least 90 days prior to
  130  any increase in lot rental amount or reduction in services, or
  131  utilities, or amenities provided by the park owner or change in
  132  rules and regulations. The notice shall identify all other
  133  affected homeowners, which may be by lot number, name, group, or
  134  phase. If the affected homeowners are not identified by name,
  135  the park owner shall make the names and addresses available upon
  136  request. Rules adopted as a result of restrictions imposed by
  137  governmental entities and required to protect the public health,
  138  safety, and welfare may be enforced prior to the expiration of
  139  the 90-day period but are not otherwise exempt from the
  140  requirements of this chapter. Pass-through charges must be
  141  separately listed as to the amount of the charge, the name of
  142  the governmental entity mandating the capital improvement, and
  143  the nature or type of the pass-through charge being levied.
  144  Notices of increase in the lot rental amount due to a pass
  145  through charge shall state the additional payment and starting
  146  and ending dates of each pass-through charge. The homeowners’
  147  association shall have no standing to challenge the increase in
  148  lot rental amount, reduction in services, or utilities, or
  149  amenities, or change of rules and regulations unless a majority
  150  of the affected homeowners agree, in writing, to such
  151  representation.
  152         (2) Notice as required by this section shall, in addition
  153  to the information required in subsection (1), only be required
  154  to include the dollar amount of the relevant portions of the
  155  present lot rental amount that are being increased and the
  156  dollar amount of the proposed increases in lot rental amount if
  157  there is an increase in the lot rental amount, the reduction in
  158  services, or utilities, or amenities, or the change in rules and
  159  regulations and the effective date thereof.
  160         (4)(a) A committee, not to exceed five members in number,
  161  designated by a majority of the affected mobile home owners or
  162  by the board of directors of the homeowners’ association, if
  163  applicable, and the park owner shall meet, at a mutually
  164  convenient time and place within 30 days after receipt by the
  165  homeowners of the notice of change, to discuss the reasons for
  166  the increase in lot rental amount, reduction in services, or
  167  utilities, or amenities, or change in rules and regulations.
  168         (b)1. At the meeting, the park owner or subdivision
  169  developer shall in good faith disclose and explain all material
  170  factors resulting in the decision to increase the lot rental
  171  amount, reduce services, or utilities, or amenities, or change
  172  rules and regulations, including how those factors justify the
  173  specific change proposed. The park owner or subdivision
  174  developer may not limit the discussion of the reasons for the
  175  change to generalities only, such as, but not limited to,
  176  increases in operational costs, changes in economic conditions,
  177  or rents charged by comparable mobile home parks. For example,
  178  if the reason for an increase in lot rental amount is an
  179  increase in operational costs, the park owner must disclose the
  180  item or items which have increased, the amount of the increase,
  181  any similar item or items which have decreased, and the amount
  182  of the decrease. If an increase is based upon the lot rental
  183  amount charged by comparable mobile home parks, the park owner
  184  shall disclose, and provide in writing to the committee at or
  185  before the meeting, the name, address, lot rental amount, and
  186  any other relevant factors relied upon by the park owner, such
  187  as facilities, services, and amenities, concerning the
  188  comparable mobile home parks. The information concerning
  189  comparable mobile home parks to be exchanged by the parties is
  190  to encourage a dialogue concerning the reasons used by the park
  191  owner for the increase in lot rental amount and to encourage the
  192  home owners to evaluate and discuss the reasons for those
  193  changes with the park owner. The park owner shall prepare a
  194  written summary of the material factors and retain a copy for 3
  195  years. The park owner shall provide the committee a copy of the
  196  summary at or before the meeting.
  197         2. The park owner may shall not limit the comparable mobile
  198  home park disclosure to those mobile home parks that are owned
  199  or operated by the same owner or operator as the subject park,
  200  except in certain circumstances, which include, but are not
  201  limited to:
  202         a. That the market area for comparable mobile home parks
  203  includes mobile home parks owned or operated by the same entity
  204  that have similar facilities, services, and amenities;
  205         b. That the subject mobile home park has unique attributes
  206  that are shared with similar mobile home parks;
  207         c. That the mobile home park is located in a geographic or
  208  market area that contains few comparable mobile home parks; or
  209         d. That there are similar considerations or factors that
  210  would be considered in such a market analysis by a competent
  211  professional and would be considered in determining the
  212  valuation of the market rent.
  213         (e) For purpose of this subsection, the market area or the
  214  competitive area for comparable mobile home parks is the county
  215  in which the subject park is located along with any contiguous
  216  counties.
  217  
  218  This subsection is not intended to be enforced by civil or
  219  administrative action. Rather, the meetings and discussions are
  220  intended to be in the nature of settlement discussions prior to
  221  the parties proceeding to mediation of any dispute.
  222         Section 6. Subsection (1) of section 723.06116, Florida
  223  Statutes, is amended to read:
  224         723.06116 Payments to the Florida Mobile Home Relocation
  225  Corporation.—
  226         (1) If a mobile home owner is required to move due to a
  227  change in use of the land comprising a mobile home park as set
  228  forth in s. 723.061(1)(d), the mobile home park owner shall,
  229  upon such change in use, pay to the Florida Mobile Home
  230  Relocation Corporation for deposit in the Florida Mobile Home
  231  Relocation Trust Fund $4,000 $2,750 for each single-section
  232  mobile home and $5,500 $3,750 for each multisection mobile home
  233  for which a mobile home owner has made application for payment
  234  of moving expenses. The mobile home park owner shall make the
  235  payments required by this section and by s. 723.0612(7) to the
  236  corporation within 30 days after receipt from the corporation of
  237  the invoice for payment. Failure to make such payment within the
  238  required time period shall result in a late fee being imposed.
  239         (a) If payment is not submitted within 30 days after
  240  receipt of the invoice, a 10-percent late fee shall be assessed.
  241         (b) If payment is not submitted within 60 days after
  242  receipt of the invoice, a 15-percent late fee shall be assessed.
  243         (c) If payment is not submitted within 90 days after
  244  receipt of the invoice, a 20-percent late fee shall be assessed.
  245         (d) Any payment received 120 days or more after receipt of
  246  the invoice shall include a 25-percent late fee.
  247         Section 7. Paragraph (b) of subsection (1) and subsection
  248  (7) of section 723.0612, Florida Statutes, are amended to read:
  249         723.0612 Change in use; relocation expenses; payments by
  250  park owner.—
  251         (1) If a mobile home owner is required to move due to a
  252  change in use of the land comprising the mobile home park as set
  253  forth in s. 723.061(1)(d) and complies with the requirements of
  254  this section, the mobile home owner is entitled to payment from
  255  the Florida Mobile Home Relocation Corporation of:
  256         (b) The amount of $5,000 $3,000 for a single-section mobile
  257  home or $7,500 $6,000 for a multisection mobile home, whichever
  258  is less. Moving expenses include the cost of taking down,
  259  moving, and setting up the mobile home in a new location.
  260         (7) In lieu of collecting payment from the Florida Mobile
  261  Home Relocation Corporation as set forth in subsection (1), a
  262  mobile home owner may abandon the mobile home in the mobile home
  263  park and collect $1,375 for a single section and $2,750 for a
  264  multisection from the corporation an amount equal to the then
  265  current market value as reported by the NADA Manufactured Home
  266  List, not to exceed $3,000 for a single section mobile home and
  267  $6,000 for a multisection mobile home, as long as the mobile
  268  home owner delivers to the park owner the current title to the
  269  mobile home duly endorsed by the owner of record and valid
  270  releases of all liens shown on the title. If a mobile home owner
  271  chooses this option, the park owner shall make payment to the
  272  corporation in an amount equal to the amount the mobile home
  273  owner is entitled to under this subsection. The mobile home
  274  owner’s application for funds under this subsection shall
  275  require the submission of a document signed by the park owner
  276  stating that the home has been abandoned under this subsection
  277  and that the park owner agrees to make payment to the
  278  corporation in the amount provided to the home owner under this
  279  subsection. However, in the event that the required documents
  280  are not submitted with the application, the corporation may
  281  consider the facts and circumstances surrounding the abandonment
  282  of the home to determine whether the mobile home owner is
  283  entitled to payment pursuant to this subsection. The mobile home
  284  owner is not entitled to any compensation under this subsection
  285  if there is a pending eviction action for nonpayment of lot
  286  rental amount pursuant to s. 723.061(1)(a) which was filed
  287  against him or her prior to the mailing date of the notice of
  288  change in the use of the mobile home park given pursuant to s.
  289  723.061(1)(d).
  290         Section 8. Subsection (3) of section 723.075, Florida
  291  Statutes, is amended to read:
  292         723.075 Homeowners’ associations.—
  293         (3) Notwithstanding subsection (1), if a portion of the
  294  park contains concrete block homes occupying lots under 99-year
  295  leases, those homeowners may be part of the association and may
  296  serve on the board of directors of the association based on the
  297  percentage of lots containing concrete block homes to the total
  298  number of mobile home lots in the park.
  299         Section 9. Section 553.382, Florida Statutes, is amended to
  300  read:
  301         553.382 Placement of certain housing.—Notwithstanding any
  302  other law or ordinance to the contrary, in order to expand the
  303  availability of affordable housing in this state, any
  304  residential manufactured building that is certified under this
  305  chapter by the department may be placed on a mobile home lot in
  306  a mobile home park, recreational vehicle park, or mobile home
  307  condominium, cooperative, or subdivision. Any such housing unit
  308  placed on a mobile home lot is a mobile home for purposes of
  309  chapter 723 and, therefore, all rights, obligations, and duties
  310  under chapter 723 apply, including the specifics of the
  311  prospectus. However, a housing unit subject to this section may
  312  not be placed on a mobile home lot without the prior written
  313  approval of the park owner. Each housing unit subject to this
  314  section shall be taxed as a mobile home under s. 320.08(11) and
  315  is subject to payments to the Florida Mobile Home Relocation
  316  Trust Fund under s. 723.06116.
  317         Section 10. This act shall take effect July 1, 2012.