Assembly Bill No. 541-Assemblymen Manendo, Buckley, Ohrenschall, Close, Koivisto, Price, Nolan, Segerblom, Collins, Herrera, Krenzer, Chowning, Bache, Williams, Perkins, Mortenson and Giunchigliani

May 27, 1997
____________

Referred to Committee on Commerce

SUMMARY--Makes various changes concerning mobile homes and mobile home parks. (BDR 10-707)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to mobile homes; authorizing the imposition of an administrative fine against landlords, managers and assistant managers of mobile home parks who harass tenants; prohibiting a landlord of a mobile home park from purchasing a mobile home within the park; requiring a landlord of a mobile home park to maintain all trees within the park; requiring a manager or assistant manager in certain mobile home parks to reside in the park; revising provisions governing the adoption and amendment of rules and regulations for a mobile home park; prohibiting the accrual of fees for the late payment of rent to a mobile home park under certain circumstances; requiring the manufactured housing division of the department of business and industry to adopt regulations concerning initial and continuing education requirements for sellers, dealers and installers of mobile homes; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1 Chapter 118B of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2 1. A landlord, manager or assistant manager of a mobile home park shall not willfully harass a tenant.
2. The administrator shall:
(a) Promptly investigate all written complaints he receives concerning a violation of subsection 1.
(b) Within 14 days after receiving such a complaint, provide written notification of receipt of the complaint to the person who made the complaint.
(c) Within 30 days after receiving the complaint, hold a hearing regarding the alleged violation. All interested parties must be allowed to present witnesses, documents and other evidence regarding the complaint at the hearing.
3. If, after notice and hearing, the administrator determines that the landlord, manager or assistant manager of a mobile home park has harassed a tenant in violation of subsection 1, the administrator shall impose against:
(a) The manager or assistant manager who committed the violation, an administrative fine:
(1) Of $500 for the first violation.
(2) Of $750 for a second violation.
(3) Of $1,000 for a third or subsequent violation.
(b) The landlord, an administrative fine:
(1) Of $500 for the first violation committed by the landlord, his manager or assistant manager.
(2) Of $750 for a second violation committed by the landlord, his manager or assistant manager.
(3) Of $1,000 for a third or subsequent violation committed by the landlord, his manager or assistant manager.
4. All administrative fines collected by the administrator pursuant to this section must be deposited in the state general fund.
5. The decision of the administrator to impose an administrative fine pursuant to this section is a final decision for the purposes of judicial review.
6. As used in this section, "harass" means to threaten or intimidate, through words or conduct, with the intent to affect the terms or conditions of a tenancy or the tenant's exercise of his rights pursuant to this chapter.
Sec. 3 A landlord of a mobile home park shall not purchase a mobile home within the park.
Sec. 4 Each mobile home park that has 50 or more mobile homes must be managed by a manager or assistant manager who resides in the park and is available within the park during normal business hours to assist tenants and prospective tenants.
Sec. 5 NRS 118B.026 is hereby amended to read as follows:
118B.026 1. [The] Except as otherwise provided in section 2 of this act, the administrator may, upon receiving a complaint alleging a violation of this chapter or any regulation adopted pursuant thereto, investigate the alleged violation. The administrator or his representative shall, upon request, furnish identification during an investigation. Any information obtained by the administrator or his representative in the investigation of a complaint, including the name of the complainant, is confidential and must not be disclosed unless so ordered by the administrator or a court of competent jurisdiction.
2. If the administrator finds a violation of the provisions of this chapter or of any regulation adopted pursuant thereto, he may issue a notice of violation to the person who he alleges has violated the provision. The notice of violation must set forth the violation which the administrator alleges with particularity and specify the corrective action which is to be taken and the time within which the action must be taken.
3. If the person to whom a notice of violation is directed fails to take the corrective action required, the administrator may:
(a) Extend the time for corrective action;
(b) Request the district attorney of the county in which the violation is alleged to have occurred to prepare a complaint and procure the issuance of a summons to the person for the violation; or
(c) Apply to the district court for the judicial district in which the violation is alleged to have occurred for an injunction and any other relief which the court may grant to compel compliance. In an action brought pursuant to this section, the court may award costs and reasonable attorney's fees to the prevailing party.
The administrator may, in addition to or in lieu of any action authorized by paragraph (a), (b) or (c), impose a fine pursuant to NRS 118B.251.
4. Any person who violates a provision of this chapter, or a regulation adopted pursuant thereto, shall pay for the cost incurred by the division in enforcing the provision.
Sec. 6 NRS 118B.090 is hereby amended to read as follows:
118B.090 The landlord shall:
1. Maintain all common areas of the park in a clean and safe condition . [;]
2. Maintain in good working order all electrical, plumbing and sanitary facilities, appliances and recreational facilities which he furnishes . [; and]
3. Maintain in a safe and secure location individual mail boxes for the tenants if the mail is delivered to the landlord for distribution to the tenants.
4. Maintain all trees within the park, including, without limitation, the trees in the common areas and along driveways and sidewalks, in a clean and safe condition.
Sec. 7 NRS 118B.100 is hereby amended to read as follows:
118B.1001. The landlord may adopt rules or regulations concerning the tenant's use and occupancy of the mobile home lot and the grounds, areas and facilities of the mobile home park held out for the use of tenants generally.
2. All such rules or regulations must be:
(a) Reasonably related to the purpose for which they are adopted;
(b) Sufficiently explicit in their prohibition, direction or limitation to inform the tenant of what he must do or not do for compliance;
(c) Adopted in good faith and not for the purpose of evading any obligation of the landlord arising under the law;
(d) Consistent with the provisions of this chapter and a general plan of operation, construction or improvement, and must not arbitrarily restrict conduct or require any capital improvement by the tenant which is not specified in the rental agreement or unreasonably require a change in any capital improvement made by the tenant and previously approved by the landlord unless the landlord can show that it is in the best interest of the other tenants; and
(e) Uniformly enforced against all tenants in the park, including the managers. Any rule or regulation which is not so uniformly enforced may not be enforced against any tenant.
3. No rule or regulation may be used to impose any additional charge for occupancy of a mobile home lot or modify the terms of a rental agreement.
4. Except as otherwise provided in subsection 5, a rule or regulation is enforceable against the tenant only if he has notice of it at the time he enters into the rental agreement. A rule or regulation adopted or amended after the tenant enters into the rental agreement is not enforceable unless [the tenant consents to it in writing or is given 60 days' notice of it in writing. The landlord may not adopt or amend a rule or regulation of the park unless] a meeting of the tenants is held to discuss the proposal and the majority of the tenants of the park consent in writing to the proposed adoption or amendment of the rule or regulation after the meeting. The landlord [provides] shall provide each tenant with notice of the proposal and the date, time and place of the meeting not less than 60 days before the meeting. The notice must include a copy of the proposed adoption or amendment of the rule or regulation. A notice in a periodic publication of the park does not constitute notice for the purposes of this subsection.
5. A rule or regulation pertaining to recreational facilities in the mobile home park must be in writing to be enforceable.
6. As used in this section, "capital improvement" means an addition or betterment made to a mobile home located on a lot in a mobile home park which is leased by the landlord that:
(a) Consists of more than the repair or replacement of an existing facility;
(b) Is required by federal law to be amortized over its useful life for the purposes of income tax; and
(c) Has a useful life of 5 years or more.
Sec. 8 NRS 118B.110 is hereby amended to read as follows:
118B.1101. The landlord shall meet with a representative group of tenants occupying the park, chosen by the tenants, to hear any complaints or suggestions which concern a matter relevant to the park within 45 days after he receives a written request to do so which has been signed by persons occupying at least 25 percent of the lots in the park. The 25 percent must be calculated on the basis of one signature per occupied lot. The meeting must be held at a time and place which is convenient to the landlord and the tenants. If the tenants request that the meeting be held during the weekend or in the evening, the landlord shall hold the meeting during the requested period. The representative group of tenants must consist of no more than five persons.
2. At least 10 days before any meeting is held pursuant to this section , the landlord or his agent shall post a notice of the meeting in a conspicuous place in a common area of the park.
3. If the landlord is not a natural person, the landlord shall appoint a natural person, not the manager or assistant manager, who possesses a financial interest in the mobile home park to meet with the tenants.
4. If an attorney for the landlord attends a meeting held pursuant to this section, the landlord shall not prohibit the group of tenants from being represented by an attorney at that meeting.
Sec. 9 NRS 118B.130 is hereby amended to read as follows:
118B.130 1. A landlord may not change:
(a) An existing park to a park for older persons pursuant to federal law unless the tenants who do not meet those restrictions and may lawfully be evicted are moved to other parks at the expense of the landlord; or
(b) The restriction of a park for older persons pursuant to federal law unless [the] :
(1) A majority of the tenants consent in writing to the change; and
(2) The tenants are given the option of remaining in their spaces or moving to other parks at the expense of the landlord.
2. A tenant who elects to move pursuant to a provision of subsection 1 must give the landlord notice in writing of his election to move within 75 days after receiving notice of the change in restrictions in the park. If a landlord is required to move a tenant to another park pursuant to subsection 1, he shall pay:
(a) The cost of moving the tenant's mobile home and its appurtenances to a new location within 50 miles from the mobile home park; or
(b) If the new location is more than 50 miles from the mobile home park, the cost of moving the mobile home for the first 50 miles,
including fees for inspection, any deposits for connecting utilities and the cost of taking down, moving, setting up and leveling his mobile home and its appurtenances in the new lot or park.
3. A landlord of a park in which restrictions have been or are being changed shall give written notice of the change to each:
(a) Tenant of the park who does not meet the new restrictions.
(b) Prospective tenant before the commencement of the tenancy.
Sec. 10 NRS 118B.140 is hereby amended to read as follows:
118B.140 The landlord or his agent or employee shall not:
1. Require a person to purchase a mobile home from him or any other person as a condition to renting a mobile home lot to the purchaser or give an adjustment of rent or fees, or provide any other incentive to induce the purchase of a mobile home from him or any other person.
2. Charge or receive:
(a) Any entrance or exit fee for assuming or leaving occupancy of a mobile home lot.
(b) Any transfer or selling fee or commission as a condition to permitting a tenant to sell his mobile home or recreational vehicle within the mobile home park even if the mobile home or recreational vehicle is to remain within the park . [, unless the landlord is licensed as a dealer of mobile homes pursuant to NRS 489.311 and has acted as the tenant's agent in the sale pursuant to a written contract.]
(c) Any fee for the tenant's spouse or children.
(d) Any fee for pets kept by a tenant in the park. If special facilities or services are provided, the landlord may also charge a fee reasonably related to the cost of maintenance of the facility or service and the number of pets kept in the facility.
(e) Any additional service fee unless the landlord provides an additional service which is needed to protect the health and welfare of the tenants, and written notice advising each tenant of the additional fee is sent to the tenant 90 days in advance of the first payment to be made, and written notice of the additional fee is given to prospective tenants on or before commencement of their tenancy. A tenant may only be required to pay the additional service fee for the duration of the additional service.
(f) Any fee for a late monthly rental payment within 4 days [of] after the date the rental payment is due or which exceeds $1 for each day which the payment is overdue, beginning on the day after the payment was due. Such a fee may not accrue on a day when the business office of the park is not open if no other means are provided for the tenant to make his monthly rental payment. Any fee for late payment of charges for utilities must be in accordance with the requirements prescribed by the public service commission of Nevada.
(g) Any fee, surcharge or rent increase to recover from his tenants the costs resulting from converting from a master-metered water system to individual water meters for each mobile home lot.
Sec. 11 NRS 118B.150 is hereby amended to read as follows:
118B.150 The landlord or his agent or employee shall not:
1. Increase rent or additional charges unless:
(a) The rental increase is the same for [mobile homes of the same size or] lots of the same size [or of a similar location or classification] within the park, except that a discount may be selectively given to persons who are handicapped or who are 62 years of age or older, and any increase in additional charges for special services is the same amount for each tenant using the special service; and
(b) Written notice advising a tenant of the increase is received by the tenant 90 days in advance of the first payment to be increased and written notice of the increase is given to prospective tenants before commencement of their tenancy.
2. Require a tenant to pay for an improvement to the common area of a mobile home park unless the landlord is required to make the improvement pursuant to an ordinance of a local government.
3. Require a tenant to pay for a capital improvement to the mobile home park unless the tenant has notice of the requirement at the time he enters into the rental agreement. A tenant may not be required to pay for a capital improvement after the tenant enters into the rental agreement unless the tenant consents to it in writing . [or is given 60 days' notice of the requirement in writing. The landlord may not establish] A landlord who proposes such a requirement [unless] shall schedule a meeting [of] with the tenants [is held] to discuss the proposal and [the landlord provides] provide each tenant with notice of the proposal and the date, time and place of the meeting not less than 60 days before the meeting. The notice must include a copy of the proposal. A notice in a periodic publication of the park does not constitute notice for the purposes of this subsection.
4. Require a tenant to pay his rent by check or money order.
5. Require a tenant who pays his rent in cash to apply any change to which he is entitled to the next periodic payment that is due. The landlord or his agent or employee shall have an adequate amount of money available to provide change to such a tenant.
6. Prohibit or require fees or deposits for any meetings held in the park's community or recreational facility by the tenants or occupants of any mobile home or recreational vehicle in the park to discuss the park's affairs, or any political or social meeting sponsored by a tenant, if the meetings are held at reasonable hours and when the facility is not otherwise in use, or prohibit the distribution of notices of those meetings.
7. Interrupt, with the intent to terminate occupancy, any utility service furnished the tenant except for nonpayment of utility charges when due. Any landlord who violates this subsection is liable to the tenant for actual damages.
8. Prohibit a tenant from having guests, but he may require the tenant to register the guest within 48 hours after his arrival, Sundays and holidays excluded, and if the park is a secured park, a guest may be required to register upon entering and leaving.
9. Charge a fee for a guest who does not stay with the tenant for more than a total of 60 days in a calendar year. The tenant of a mobile home lot who is living alone may allow one other person to live in his home without paying any additional charge or fee. No agreement between a tenant and his guest alters or varies the terms of the rental contract between the tenant and the landlord , and the guest is subject to the rules and regulations of the landlord.
10. Prohibit a tenant from erecting a fence along the perimeter of the tenant's lot if the fence complies with any standards for fences established by the landlord, including limitations established for the height of fences, the materials used for fences and the manner in which fences are to be constructed. The landlord may not limit the height of fences to less than 4 feet.
11. Prohibit any tenant from soliciting membership in any association which is formed by the tenants who live in the park. As used in this subsection, "solicit" means to make an oral or written request for membership or the payment of dues or to distribute, circulate or post a notice for payment of those dues.
12. Prohibit a public officer or candidate for public office from walking through the park to talk with the tenants.
13. Request from a tenant or prospective tenant information concerning his bank account or insurance policies.
Sec. 12 NRS 118B.160 is hereby amended to read as follows:
118B.160 The landlord or his agent or employee shall not:
1. Deny any tenant the right to sell his mobile home or recreational vehicle within the park or require the tenant to remove the mobile home or recreational vehicle from the park solely on the basis of the sale, except as otherwise provided in NRS 118B.170.
2. Prohibit any tenant desiring to sell his mobile home or recreational vehicle within the park from advertising the location of the home or vehicle and the name of the mobile home park or prohibit the tenant from displaying at least one sign of reasonable size advertising the sale of the home or vehicle.
3. Require that he be an agent of an owner of a mobile home or recreational vehicle who desires to sell the home or vehicle.
4. Unless subleasing of lots is prohibited by a rental agreement or lease, prohibit a tenant from subleasing his mobile home lot if the prospective subtenant meets the general requirements for tenancy in the park [.] as set forth by the landlord pursuant to subsection 2 of NRS 118B.170.
5. Require a tenant to make any additions to his mobile home unless those additions are required by an ordinance of a local government.
Sec. 13 NRS 118B.170 is hereby amended to read as follows:
118B.170 1. The landlord may require approval of a prospective buyer and tenant before the sale of a tenant's mobile home or recreational vehicle, if the mobile home or vehicle will remain in the park. The landlord shall not unreasonably withhold his consent.
2. The landlord shall set forth in writing his requirements for approval of a prospective buyer or tenant. The requirements must be approved by the division. The requirements must not provide that a prospective buyer or tenant have more than 1 year of timely rental or mortgage payments. A copy of the requirements must be made available by the landlord, upon request, to any person who requests it.
3. If a tenant sells his mobile home or recreational vehicle, the landlord may require that the mobile home or recreational vehicle be removed from the park if it is deemed by the park's written rules or regulations in the possession of the tenants to be in a run-down condition or in disrepair or does not meet the safety standards set forth in NRS 461A.120. If the mobile home must be inspected to determine compliance with the standards, the person requesting the inspection shall pay for it.
[3.] 4. If the landlord requires approval of a prospective buyer and tenant, he shall post and maintain a sign which is clearly readable at the entrance to the park which advises the reader that [before] :
(a) Before a mobile home or space in the park [is sold,] may be sold or rented, the prospective buyer or tenant must be approved by the landlord.
(b) A copy of the requirements for approval of a prospective buyer or tenant is available upon request from the landlord, manager or assistant manager of the park.
Sec. 14 NRS 118B.173 is hereby amended to read as follows:
118B.173 1. Any landlord who [lists] offers a mobile home park or any part of a mobile home park for sale , including, without limitation, a landlord who lists such property with a licensed real estate broker , shall , not less than 10 days nor more than 30 days before offering or listing the park for sale, mail written notice of that offering or listing to any association of tenants of the park that requested the notice. [A landlord is not required to provide notice of a listing for sale that is not initiated by the owner of the park or his authorized agent.]
2. In order to receive the notice required by subsection 1, an association of tenants of a mobile home park [shall:] must:
(a) Submit to the landlord a written request for that notice;
(b) Furnish the landlord with a written list of the names and addresses of three members of the association; and
(c) Give written notice to the landlord that the tenants of the park are interested in buying the park and renew that notice at least once each year after the initial notice.
Sec. 15 NRS 118B.210 is hereby amended to read as follows:
118B.210[1. The] A landlord shall not terminate a tenancy, refuse to renew a tenancy, increase rent or decrease services he normally supplies, or bring or threaten to bring an action for possession of a mobile home lot as retaliation upon [the] a tenant because:
[(a)] 1. He has complained in good faith about a violation of a building, safety or health code or regulation pertaining to a mobile home park to the governmental agency responsible for enforcing the code or regulation.
[(b)] 2. He has complained to the landlord concerning the maintenance, condition or operation of the park or a violation of any provision of NRS 118B.040 to 118B.220, inclusive, and 118B.240.
[(c)] 3. He has organized or become a member of a tenants' [league] association or similar organization.
[(d)] 4. He has requested the reduction in rent required by:
[(1)] (a) The provisions of NRS 118.165 as a result of a reduction in property taxes.
[(2)] (b) The provisions of NRS 118B.153 when a service, utility or amenity is decreased or eliminated by the landlord.
[(e)] 5. A citation has been issued to the landlord as the result of a complaint of the tenant.
[(f)] 6. In a judicial proceeding or arbitration between the landlord and the tenant, an issue has been determined adversely to the landlord.
[2. A landlord, manager or assistant manager of a mobile home park shall not willfully harass a tenant.
3. As used in this section, "harass" means to threaten or intimidate, through words or conduct, with the intent to affect the terms or conditions of a tenancy or the tenant's exercise of his rights pursuant to this chapter.]
Sec.
16 NRS 118B.251 is hereby amended to read as follows:
118B.251 1. [The] Except as otherwise provided in section 2 of this act, the administrator may impose a fine of not more than $1,000 against any person who violates any of the provisions of this chapter.
2. The administrator shall, before imposing the fine, notify the person by certified mail that he will impose a fine for the violation unless the person requests a hearing within 20 days after the notice is mailed.
3. If a hearing is requested, the administrator shall hold a hearing pursuant to the provisions of NRS 233B.121 to 233B.150, inclusive.
4. If a hearing is not requested within the prescribed period and the matter is not otherwise resolved, the administrator shall impose the fine and notify the person by certified mail.
5. The decision of the administrator to impose a fine pursuant to this section is a final decision for the purposes of judicial review.
Sec. 17 Chapter 489 of NRS is hereby amended by adding thereto the provisions set forth as sections 18 and 19 of this act.
Sec. 18 1. The division shall adopt regulations concerning initial and continuing education requirements for sellers, dealers and installers of mobile homes. The regulations must include the:
(a) Criteria for determining what qualifies as initial and continuing education;
(b) Criteria for approving educational and training programs;
(c) Requirements for submitting evidence of completion; and
(d) Grounds and procedures for granting an extension of time within which to comply with continuing education requirements.
2. In adopting regulations pursuant to subsection 1, the division shall:
(a) Allow for alternative subjects, instructors, schools and sources of programs, with consideration for specialized areas of practice, availability and proximity of resources to the licensees and applicants, and the time and expense required to participate in the programs.
(b) Approve courses offered by generally accredited educational institutions and private vocational schools if those courses otherwise qualify as initial or continuing education.
(c) Approve training and educational programs and seminars offered by:
(1) Individual sponsors;
(2) Manufactured housing firms and businesses such as dealers, installers, rebuilders, servicemen, manufacturers of manufactured homes and suppliers of the various components for constructing homes, including heating and air-conditioning systems, material for roofing and siding, skirting, awnings and other components;
(3) Professional and industry-related organizations; and
(4) Other organized educational programs concerning technical or specialized subjects, including in-house training programs offered by an employer for his employees and participation in meetings and conferences of industry-related organizations.
(d) Solicit advice and assistance from persons and organizations that are knowledgeable in the construction, sale, installation, rebuilding and servicing of manufactured homes and the method of educating licensees and applicants.
3. The division is not responsible for the costs of any initial or continuing education program, but may participate in the funding of those programs subject to legislative appropriations.
4. As used in this section, "industry-related organizations" includes, without limitation, the:
(a) National Manufactured Housing Federation;
(b) Manufactured Housing Institute;
(c) Nevada Mobilehome Park Owners Association;
(d) Nevada Association of Manufactured Homeowners; and
(e) Nevada Association of Realtors.
Sec. 19 If an applicant or licensee is a seller, dealer or installer of mobile homes, the division shall not:
1. Allow the applicant for an original license pursuant to this chapter to submit an application for the license until he submits proof satisfactory to the division that he has completed at least 6 hours of initial education approved by the division pursuant to section 18 of this act.
2. Renew or reactivate any license issued pursuant to this chapter until the licensee has submitted proof satisfactory to the division that he has, during the 2-year period preceding the renewal or reactivation of the license, completed at least 12 hours of continuing education approved by the division pursuant to section 18 of this act.
Sec. 20 NRS 489.311 is hereby amended to read as follows:
489.311 1. Except as otherwise provided by NRS 489.331, no person may engage in the business of a dealer, manufacturer, rebuilder, serviceman or installer in this state, or be entitled to any other license or permit required by this chapter, until he has applied for and has been issued a license by the division.
2. A license issued to a landlord of a mobile home park to engage in the business of a dealer of mobile homes located within the park must be restricted to mobile homes that were purchased by the landlord before October 1, 1997.
3. As used in this section, "landlord" has the meaning ascribed to it in NRS 118B.014.
Sec. 21 The manufactured housing division of the department of business and industry shall adopt the regulations required by section 18 of this act no later than October 1, 1997.
Sec. 22 1. This section and sections 17, 18 and 21 of this act become effective upon passage and approval.
2. Sections 1 to 16, inclusive, and 20 of this act become effective on October 1, 1997.
3. Section 19 of this act becomes effective on October 1, 1999.

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