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.