Senate Bill 2342

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    Florida Senate - 2000                                  SB 2342

    By Senator Latvala





    19-889A-00

  1                      A bill to be entitled

  2         An act relating to mobile home parks; amending

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

  4         "pass-through charge"; limiting pass-through

  5         charges; amending s. 723.005, F.S.; authorizing

  6         the Division of Florida Land Sales,

  7         Condominiums, and Mobile Homes of the

  8         Department of Business and Professional

  9         Regulation to enforce provisions relating to

10         unreasonable lot rentals; amending s. 723.004,

11         F.S.; empowering local governments to establish

12         alternative dispute resolution forums; amending

13         s. 723.011, F.S.; revising provisions relating

14         to the division's role in approving

15         prospectuses; requiring copies of prospectuses

16         to be maintained and provided to mobile home

17         owners, upon request; amending s. 723.012,

18         F.S.; requiring prospectuses to disclose when

19         they were deemed adequate by the division and

20         requiring that they include a notice that the

21         rent should be expected to increase; amending

22         s. 723.021, F.S.; authorizing the division to

23         take certain action against parties not acting

24         in good faith; amending s. 723.022, F.S.;

25         requiring park owners to maintain certain plant

26         materials; amending s. 723.033, F.S.; providing

27         judicial guidelines for determining

28         unreasonable rent increases; amending s.

29         727.037, F.S.; requiring the division to

30         maintain certain records; providing that a park

31         owner is bound by a required summary of rental

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  1         increase factors; authorizing parties to

  2         petition the division for a good-faith

  3         determination; amending s. 723.059, F.S.;

  4         deleting a requirement that a park owner

  5         approve prospective purchases of homes;

  6         providing seller's duties; requiring notice of

  7         proposed rental increases to purchasers;

  8         amending s. 320.77, F.S.; redefining the term

  9         "mobile home broker"; providing an effective

10         date.

11

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

13

14         Section 1.  Subsection (10) of section 723.003, Florida

15  Statutes, is amended to read:

16         723.003  Definitions.--As used in this chapter, the

17  following words and terms have the following meanings unless

18  clearly indicated otherwise:

19         (10)  The term "pass-through charge" means the mobile

20  home owner's proportionate share of the necessary and actual

21  direct costs and impact or hookup fees for a governmentally

22  mandated capital improvement, which may include the necessary

23  and actual direct costs and impact or hookup fees incurred for

24  capital improvements required for public or private regulated

25  utilities. However, the pass-through charge only includes that

26  portion of the total capitalized expense that cannot be

27  depreciated or amortized under regulations of the Internal

28  Revenue Service.

29         Section 2.  Section 723.005, Florida Statutes, is

30  amended to read:

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  1         723.005  Regulation by division.--The division has the

  2  power and duty to enforce and ensure compliance with the

  3  provisions of this chapter and rules adopted thereunder

  4  promulgated pursuant hereto relating to the rental,

  5  development, and sale of mobile home parks.  However, the

  6  division does not have the power or duty to enforce mobile

  7  home park rules and regulations or to enforce the provisions

  8  of ss. 723.022, 723.023, and 723.033.

  9         Section 3.  Subsection (6) is added to section 723.004,

10  Florida Statutes, to read:

11         723.004  Legislative intent; preemption of subject

12  matter.--

13         (6)  Notwithstanding the provisions of subsection (3),

14  a municipality or county may establish an alternative dispute

15  resolution forum having jurisdiction over disputes arising

16  between mobile home park owners and either mobile home owners

17  or a mobile homeowners association which arise under the

18  prospectus, park rules, or this chapter.

19         Section 4.  Subsection (1) of section 723.011, Florida

20  Statutes, is amended to read:

21         723.011  Disclosure prior to rental of a mobile home

22  lot; prospectus, filing, approval.--

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

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

25  division.  Prior to entering into an enforceable rental

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

27  to the homeowner a prospectus considered adequate approved by

28  the division.  This subsection may shall not be construed to

29  invalidate those lot rental agreements for which a an approved

30  prospectus considered adequate by the division was required to

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  1  be delivered and which was delivered on or before July 1,

  2  1986, if the mobile home park owner had:

  3         1.  Filed a prospectus with the division prior to

  4  entering into the lot rental agreement;

  5         2.  Made a good-faith good faith effort to correct

  6  deficiencies cited by the division by responding within the

  7  time limit set by the division, if one was set; and

  8         3.  Delivered the approved prospectus to the mobile

  9  home owner within 45 days after it was considered adequate of

10  approval by the division.

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

13  rental agreement is invalid on other grounds and may shall not

14  be construed to limit any rights of a mobile home owner or to

15  preclude a mobile home owner from seeking any remedies allowed

16  by this chapter, including a determination that the lot rental

17  agreement or any part thereof is unreasonable.

18         (b)  The division shall determine whether the proposed

19  prospectus or offering circular is adequate to meet the

20  requirements of this chapter and shall notify the park owner

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

22  the division has deemed either approved the prospectus or

23  offering circular adequate or found specified deficiencies.

24  If In the event the division does not deem approve the

25  prospectus adequate or advise the park owner of deficiencies

26  within 45 days, the prospectus shall automatically be deemed

27  adequate to be approved.

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

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

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

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

  2  $100.

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

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

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

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

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

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

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

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

11  $300.

12         (d)  After being deemed adequate, the prospectus and

13  any amendments thereto for each lot in the mobile home park

14  shall be maintained in the mobile home park by the park owner.

15  The park owner shall make available to a mobile home owner

16  additional copies of the prospectus and any amendments thereto

17  which relate to the lot occupied by the mobile home owner,

18  upon request. After the initial prospectus is provided to the

19  mobile home owner, the park owner may charge the mobile home

20  owner the actual costs for such copies.

21         (e)  The division shall maintain copies of each

22  prospectus and any amendments thereto which it has deemed

23  adequate.

24         Section 5.  Subsection (1) of section 723.012, Florida

25  Statutes, is amended to read:

26         723.012  Prospectus or offering circular.--The

27  prospectus or offering circular, which is required to be

28  provided by s. 723.011, must contain the following

29  information:

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

31  only:

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  1         (a)  The name of the mobile home park, the date the

  2  prospectus was deemed adequate by the division, and the number

  3  of any other prospectuses deemed adequate.

  4         (b)  The following statements in conspicuous type:

  5         1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS

  6  IMPORTANT MATTERS TO BE CONSIDERED IN LEASING A MOBILE HOME

  7  LOT.

  8         2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

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

10  ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES

11  MATERIALS.

12         3.  ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS

13  CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR

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

15  ITS EXHIBITS FOR CORRECT REPRESENTATIONS.

16         4.  UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE

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

18  PERIOD OF 15 DAYS.

19         5.  YOU SHOULD EXPECT YOUR LOT RENT TO INCREASE. THE

20  METHOD BY WHICH YOUR LOT RENT WILL INCREASE IS SET FORTH ON

21  PAGE      OF THIS DOCUMENT. THE PARK OWNER, IN ACCORDANCE WITH

22  SECTION 723.037, FLORIDA STATUTES, MUST GIVE NOTICE OF AN

23  INCREASE IN RENT.

24         Section 6.  Section 723.021, Florida Statutes, is

25  amended to read:

26         723.021  Obligation of good faith and fair

27  dealings.--Every rental agreement or duty within this chapter

28  imposes an obligation of good faith and fair dealings in its

29  performance or enforcement. If the division determines that a

30  party has not acted in good faith and with fair dealings, it

31  may take any action authorized by s. 723.006. Either party to

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  1  a dispute under this chapter may seek  a judicial an order

  2  finding that the other party has not complied with the

  3  obligations of good faith and fair dealings. Upon such a

  4  finding, the court shall award reasonable costs and attorney's

  5  fees to the prevailing party for proving the noncompliance.

  6         Section 7.  Subsection (2) of section 723.022, Florida

  7  Statutes, is amended to read:

  8         723.022  Mobile home park owner's general

  9  obligations.--A mobile home park owner shall at all times:

10         (2)  Maintain buildings and improvements in common

11  areas in a good state of repair and maintenance; and maintain

12  the common areas in a good state of appearance, safety, and

13  cleanliness; and maintain trees, shrubs, and other vegetation

14  not planted by mobile home owners, removing any such

15  vegetation that threatens the safety of a mobile home.

16         Section 8.  Subsection (5) of section 723.033, Florida

17  Statutes, is amended to read:

18         723.033  Unreasonable lot rental agreements; increases,

19  changes.--

20         (5)  In determining market rent, the court may consider

21  rents charged by comparable mobile home parks in its

22  competitive area.  To be comparable, a mobile home park must

23  offer similar facilities, services, amenities, and management

24  and be in the same geographical region not less than 25 miles

25  from the park. A rental increase that is not authorized by

26  this section is deemed to be unreasonable.

27         Section 9.  Subsections (3) and (4) of section 727.037,

28  Florida Statutes, are amended and subsection (7) is added to

29  that section to read:

30         723.037  Lot rental increases; reduction in services or

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

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  1         (3)  The park owner shall file annually with the

  2  division a copy of any notice of a lot rental amount increase.

  3  The notice shall be filed on or before January 1 of each year

  4  for any notice given during the preceding year.  If the actual

  5  increase is an amount less than the proposed amount stated in

  6  the notice, the park owner shall notify the division of the

  7  actual amount of the increase within 30 days after of the

  8  effective date of the increase or at the time of filing,

  9  whichever is later. The division shall keep the notices in its

10  active files for at least 5 years.

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

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

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

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

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

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

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

18  utilities, or change in rules and regulations.

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

20  developer shall in good faith disclose and explain all

21  material factors resulting in the decision to increase the lot

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

23  and regulations, including how those factors justify the

24  specific change proposed. The park owner or subdivision

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

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

27  increases in operational costs, changes in economic

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

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

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

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

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

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

  3  based upon the lot rental amount charged by comparable mobile

  4  home parks, the park owner shall disclose the name, address,

  5  lot rental amount, and any other relevant factors concerning

  6  the mobile home parks relied upon by the park owner. The park

  7  owner shall prepare a written summary of the material factors

  8  and retain a copy for 3 years. The park owner shall provide

  9  the committee a copy of the summary at the meeting, which

10  summary is binding on the park owner during the pendency of

11  any dispute regarding rental increases, reductions in services

12  or utilities, or changes in park rules. The summary may not be

13  amended after it is provided to the committee.

14         (7)  A homeowner or park owner may petition the

15  division to initiate an investigation to determine whether the

16  other party has failed to meet its obligation of good faith

17  and fair dealings and, upon a determination that such

18  obligation has not been met, take action pursuant to ss.

19  723.021 and 723.006.

20         Section 10.  Subsections (1), (3), and (4) of section

21  723.059, Florida Statutes, are amended to read:

22         723.059  Rights of purchaser.--

23         (1)  The purchaser of a mobile home within a mobile

24  home park may become a tenant of the park if such purchaser

25  would otherwise qualify with the requirements of entry into

26  the park under the park rules and regulations, subject to the

27  approval of the park owner, but such approval may not be

28  unreasonably withheld.

29         (3)  The purchaser of a mobile home who becomes a

30  resident of the mobile home park in accordance with this

31  section has the right to assume the remainder of the term of

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  1  any rental agreement then in effect between the mobile home

  2  park owner and the seller and shall be entitled to rely on the

  3  terms and conditions of the prospectus or offering circular as

  4  delivered to the initial recipient. The seller shall provide

  5  to the purchaser a prospectus governing the rental agreement

  6  in effect on the date of the sale.

  7         (4)  However, nothing in this section herein shall be

  8  construed to prohibit a mobile home park owner from increasing

  9  the rental amount to be paid by the purchaser upon the

10  expiration of the assumed rental agreement if the in an amount

11  deemed appropriate by the mobile home park owner, so long as

12  such increase is disclosed to the purchaser prior to his or

13  her occupancy and is imposed in a manner consistent with the

14  initial offering circular or prospectus and this act. If a lot

15  rental increase is proposed pursuant to a prospectus other

16  than one in effect on the date of the sale, the park owner

17  must give the purchaser copies of both prospectuses. The

18  purchaser must acknowledge the proposed increase in writing

19  before it take effect.

20         Section 11.  Paragraph (b) of subsection (1) of section

21  320.77, Florida Statutes, is amended to read:

22         320.77  License required of mobile home dealers.--

23         (1)  DEFINITIONS.--As used in this section:

24         (b)  "Mobile home broker" means any person who is

25  licensed pursuant to chapter 475 or is engaged in the business

26  of offering to procure or procuring used mobile homes for the

27  general public; who holds himself or herself out through

28  solicitation, advertisement, or otherwise as one who offers to

29  procure or procures used mobile homes for the general public;

30  or who acts as the agent or intermediary on behalf of the

31  owner or seller of a used mobile home which is for sale or who

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  1  assists or represents the seller in finding a buyer for the

  2  mobile home.

  3         Section 12.  This act shall take effect July 1, 2000.

  4

  5            *****************************************

  6                          SENATE SUMMARY

  7    Revises several provisions relating to mobile home parks.
      Provides a limitation on pass-through charges. Authorizes
  8    the division to enforce certain provisions relating to
      unreasonable lot rentals. Requires the division to impose
  9    a civil penalty that was formerly discretionary regarding
      violations. Authorizes the division to require certain
10    disclosures regarding rent calculations. Requires on-site
      inspections of certain records. Revises terminology to
11    require the division to "deem adequate" certain
      prospectuses rather than "approve" them and requires that
12    prospectuses be recorded. Requires prospectuses to
      disclose when they were deemed adequate and to include
13    certain sample calculations regarding rent increases.
      Authorizes the division to take certain action against
14    parties not acting in good faith. Requires park owners to
      maintain certain plants. Provides judicial guidelines for
15    determining unreasonable lot rental increases. Requires
      the division to keep certain filed notices of lot rental
16    increases for 5 years. Provides that a park owner is
      bound by a rental increase summary that is required.
17    Authorizes homeowners and park owners to petition the
      division for a determination of whether the other is
18    acting in good faith. Deletes a requirement that park
      owners approve prospective home purchasers. Provides
19    seller's duties and requires park owners to give
      purchasers notice of proposed rental increases. Empowers
20    local governments to establish alternative dispute
      resolution forums. (See bill for details.)
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