Senate Bill sb1124c1

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    Florida Senate - 2005                           CS for SB 1124

    By the Committee on Regulated Industries; and Senators
    Haridopolos and Fasano




    580-1759-05

  1                      A bill to be entitled

  2         An act relating to mobile homes; amending s.

  3         723.037, F.S.; providing intent, requirements,

  4         and restrictions regarding information

  5         exchanged in meetings between park owners and

  6         homeowners' committees and at mediation;

  7         providing exceptions; amending s. 723.0611,

  8         F.S.; designating the Florida Mobile Home

  9         Relocation Corporation as an agency of the

10         state and certain other persons as officers,

11         employees, or agents of the state for

12         application of sovereign immunity provisions;

13         providing rulemaking authority to administer

14         provisions involving the corporation; amending

15         s. 723.0612, F.S.; providing that mobile home

16         owners are not eligible for compensation in

17         certain circumstances involving change in use

18         of the land comprising the mobile home park;

19         providing entitlement to attorney's fees and

20         costs in certain enforcement actions; providing

21         an effective date.

22  

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

24  

25         Section 1.  Subsections (4) and (5) of section 723.037,

26  Florida Statutes, are amended to read:

27         723.037  Lot rental increases; reduction in services or

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

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

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

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

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    Florida Senate - 2005                           CS for SB 1124
    580-1759-05




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

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

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

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

 5  utilities, or change in rules and regulations.

 6         (b)1.  At the meeting, the park owner or subdivision

 7  developer shall in good faith disclose and explain all

 8  material factors resulting in the decision to increase the lot

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

10  and regulations, including how those factors justify the

11  specific change proposed. The park owner or subdivision

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

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

14  increases in operational costs, changes in economic

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

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

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

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

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

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

21  based upon the lot rental amount charged by comparable mobile

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

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

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

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

26  and amenities, concerning the comparable mobile home parks.

27  The information concerning comparable mobile home parks to be

28  exchanged by the parties is to encourage a dialogue concerning

29  the reasons used by the park owner for the increase in lot

30  rental amount and to encourage the homeowners to evaluate and

31  discuss the reasons for those changes with the park owner. The

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    Florida Senate - 2005                           CS for SB 1124
    580-1759-05




 1  park owner shall prepare a written summary of the material

 2  factors and retain a copy for 3 years. The park owner shall

 3  provide the committee a copy of the summary at or before the

 4  meeting.

 5         2.  The park owner shall not limit the comparable

 6  mobile home park disclosure to those mobile home parks that

 7  are owned or operated by the same owner or operator as the

 8  subject park, except in certain circumstances, which include,

 9  but are not limited to:

10         a.  That the market area for comparable mobile home

11  parks includes mobile home parks owned or operated by the same

12  entity that have similar facilities, services, and amenities;

13         b.  That the subject mobile home park has unique

14  attributes that are shared with similar mobile home parks;

15         c.  That the mobile home park is located in a

16  geographic or market area that contains few comparable mobile

17  home parks; or

18         d.  That there are similar considerations or factors

19  that would be considered in such a market analysis by a

20  competent professional and would be considered in determining

21  the valuation of the market rent.

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

23  rental amount increase based upon comparable mobile home

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

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

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

27  services, and amenities, concerning the comparable mobile home

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

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

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

31  The park owner shall meet with the committee at a mutually

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    Florida Senate - 2005                           CS for SB 1124
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 1  convenient time and place within 30 days after receipt by the

 2  park owner of the request from the committee to discuss the

 3  disclosure provided by the committee. At the second meeting,

 4  the park owner may take into account the information on

 5  comparable parks provided by the committee, may supplement the

 6  information provided to the committee at the first meeting,

 7  and may modify his or her position, but the park owner may not

 8  change the information provided to the committee at the first

 9  meeting.

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

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

12  by this section.

13         (e)  Either party may prepare and use additional

14  information to support its position during or subsequent to

15  the meetings required by this section.

16  

17  This subsection is not intended to be enforced by civil or

18  administrative action. Rather, the meetings and discussions

19  are intended to be in the nature of settlement discussions

20  prior to the parties proceeding to mediation of any dispute.

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

22  scheduled meeting described in subsection (4), the homeowners

23  may petition the division to initiate mediation of the dispute

24  pursuant to s. 723.038 if a majority of the affected

25  homeowners have designated, in writing, that:

26         1.  The rental increase is unreasonable;

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

28  unreasonable;

29         3.  The decrease in services or utilities is not

30  accompanied by a corresponding decrease in rent or is

31  otherwise unreasonable; or

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    Florida Senate - 2005                           CS for SB 1124
    580-1759-05




 1         4.  The change in the rules and regulations is

 2  unreasonable.

 3         (b)  A park owner, within the same time period, may

 4  also petition the division to initiate mediation of the

 5  dispute.

 6         (c)  When a dispute involves a rental increase for

 7  different home owners and there are different rates or

 8  different rental terms for those home owners, all such rent

 9  increases in a calendar year for one mobile home park may be

10  considered in one mediation proceeding.

11         (d)  At mediation, the park owner and the homeowners'

12  committee may supplement the information provided to each

13  other at the meetings described in subsection (4) and may

14  modify their position, but they may not change the information

15  provided to each other at the first and second meetings.

16  

17  The purpose of this subsection is to encourage discussion and

18  evaluation by the parties of the comparable mobile home parks

19  in the competitive market area. The requirements of this

20  subsection are not intended to be enforced by civil or

21  administrative action. Rather, the meetings and discussions

22  are intended to be in the nature of settlement discussions

23  prior to the parties proceeding to litigation of any dispute.

24         Section 2.  Paragraph (c) of subsection (2) and

25  paragraph (a) of subsection (3) of section 723.0611, Florida

26  Statutes, are amended to read:

27         723.0611  Florida Mobile Home Relocation Corporation.--

28         (2)

29         (c)  The corporation shall, for purposes of s. 768.28,

30  be considered an agency of the state. Agents or employees of

31  the corporation, members of the board of directors of the

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    Florida Senate - 2005                           CS for SB 1124
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 1  corporation, or representatives of the Division of Florida

 2  Land Sales, Condominiums, and Mobile Homes shall be considered

 3  officers, employees, or agents of the state, and actions

 4  against them and the corporation shall be governed by s.

 5  768.28. There shall be no liability on the part of, and no

 6  cause of action of any nature shall arise against, agents or

 7  employees of the corporation, members of the board of

 8  directors of the corporation, or representatives of the

 9  Division of Florida Land Sales, Condominiums, and Mobile Homes

10  for any act or omission of the board of directors in the

11  performance of their powers and duties under this section,

12  unless such act or omission by such person is in intentional

13  disregard of the rights of the claimant.

14         (3)  The board of directors shall:

15         (a)  Adopt a plan of operation and articles, bylaws,

16  and operating rules pursuant to the provisions of ss. 120.536

17  and 120.54 to administer the provisions of this section and

18  ss. 723.06115, 723.06116, and 723.0612.

19         Section 3.  Subsection (7) of section 723.0612, Florida

20  Statutes, is amended, and section (11) is added to that

21  section, to read:

22         723.0612  Change in use; relocation expenses; payments

23  by park owner.--

24         (7)  In lieu of collecting payment from the Florida

25  Mobile Home Relocation Corporation as set forth in subsection

26  (1), a mobile home owner may abandon the mobile home in the

27  mobile home park and collect $1,375 for a single section and

28  $2,750 for a multisection from the corporation as long as the

29  mobile home owner delivers to the park owner the current title

30  to the mobile home duly endorsed by the owner of record and

31  valid releases of all liens shown on the title. If a mobile

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    Florida Senate - 2005                           CS for SB 1124
    580-1759-05




 1  home owner chooses this option, the park owner shall make

 2  payment to the corporation in an amount equal to the amount

 3  the mobile home owner is entitled to under this subsection.

 4  The mobile home owner's application for funds under this

 5  subsection shall require the submission of a document signed

 6  by the park owner stating that the home has been abandoned

 7  under this subsection and that the park owner agrees to make

 8  payment to the corporation in the amount provided to the home

 9  owner under this subsection. However, in the event that the

10  required documents are not submitted with the application, the

11  corporation may consider the facts and circumstances

12  surrounding the abandonment of the home to determine whether

13  the mobile home owner is entitled to payment pursuant to this

14  subsection. The mobile home owner is not entitled to any

15  compensation under this subsection if there is a pending

16  eviction action for nonpayment of lot rental amount pursuant

17  to s. 723.061(1)(a) which was filed against him or her prior

18  to the mailing date of the notice of change in the use of the

19  mobile home park given pursuant to s. 723.061(1)(d).

20         (11)  In an action to enforce the provisions of this

21  section and ss. 723.0611, 723.06115, and 723.06116, the

22  prevailing party is entitled to reasonable attorney's fees and

23  costs.

24         Section 4.  This act shall take effect upon becoming a

25  law.

26  

27          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
28                         Senate Bill 1124

29                                 

30  The committee substitute conforms the bill to appropriate
    rulemaking language and changes the effective date from July
31  1, 2005 or upon becoming a law.

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