Assembly Bill No. 184–Assemblymen Ohrenschall, Buckley, Manendo, Chowning, Giunchigliani, Anderson, Leslie and Pierce

 

February 24, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Creates state board to review certain increases in rent relating to manufactured home parks. (BDR 10‑386)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to manufactured home parks; creating the Manufactured Home Park Rent Review Board within the Manufactured Housing Division of the Department of Business and Industry; prescribing the powers and duties of the Board; prohibiting certain persons from imposing an increase in rent unless the increase has been approved by the Board; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1.  Chapter 118B of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 to 8, inclusive, of this

1-3  act.

1-4  Sec. 2.  As used in sections 2 to 8, inclusive, of this act, unless

1-5  the context otherwise requires, the words and terms defined in

1-6  sections 3 and 4 of this act have the meanings ascribed to them in

1-7  those sections.

1-8  Sec. 3.  “Board” means the Manufactured Home Park Rent

1-9  Review Board created by section 5 of this act.

1-10      Sec. 4.  “Rent” means the consideration, including, without

1-11  limitation, money and deposits, demanded or paid for the use of a

2-1  manufactured home lot. The term does not include an amount of

2-2  money paid for:

2-3  1.  The use of the manufactured home; or

2-4  2.  Water, gas, electricity or any other utility service that is

2-5  metered and billed separately to the tenant.

2-6  Sec. 5.  1.  The Manufactured Home Park Rent Review

2-7  Board is hereby created within the Division.

2-8  2.  The Board consists of five members who are appointed by

2-9  the Administrator as follows:

2-10      (a) Two members representing landlords;

2-11      (b) Two members representing tenants; and

2-12      (c) One member who is an economic expert on rent at

2-13  manufactured home parks, as determined by the Administrator.

2-14      3.  After the initial appointments, the term of each member

2-15  appointed to the Board is 3 years. The Administrator may remove

2-16  a member of the Board for good cause. A vacancy on the Board

2-17  must be filled for the remainder of the unexpired term in the same

2-18  manner as the original appointment. A member may be

2-19  reappointed to the Board.

2-20      4.  The members of the Board are not entitled to be paid a

2-21  salary, except that the members are entitled to receive the per diem

2-22  allowance and travel expenses provided for state officers and

2-23  employees generally while engaged in the official business of the

2-24  Board.

2-25      5.  The Administrator shall serve ex officio as a nonvoting

2-26  member of the Board.

2-27      6.  The Administrator shall provide the Board with

2-28  administrative and clerical support and with such other assistance,

2-29  including, without limitation, making arrangements for facilities,

2-30  equipment and other services in preparation for meetings, as may

2-31  be necessary for the Board to carry out its duties pursuant to

2-32  sections 2 to 8, inclusive, of this act.

2-33      Sec. 6.  1.  The voting members of the Board shall:

2-34      (a) Elect a Chairman from among their membership. The term

2-35  of the Chairman is 1 year. If a vacancy occurs in the

2-36  Chairmanship, the vacancy must be filled for the remainder of the

2-37  unexpired term in the same manner as the original selection.

2-38      (b) Except as otherwise provided in sections 2 to 8, inclusive,

2-39  of this act, conduct its business in accordance with Mason’s

2-40  Manual of Legislative Procedure.

2-41      (c) Review and approve or disapprove applications for

2-42  approval of rent increases pursuant to section 7 of this act.

2-43      2.  The Board may borrow a copy of Mason’s Manual of

2-44  Legislative Procedure from the Division of State Library and

3-1  Archives of the Department of Cultural Affairs for use by the

3-2  Board.

3-3  3.  A majority of the voting members of the Board constitutes

3-4  a quorum. A quorum may exercise all the power and authority

3-5  conferred on the Board.

3-6  Sec. 7.  1.  A landlord may not increase rent unless:

3-7  (a) The amount of the rent after the increase will be $350 per

3-8  month or less; or

3-9  (b) Pursuant to this section:

3-10          (1) The landlord submits an application for approval of the

3-11  increase in rent; and

3-12          (2) The Board approves the increase in rent.

3-13      2.  An application for approval of an increase in rent must

3-14  include, without limitation:

3-15      (a) The amount of the current rent;

3-16      (b) The amount by which the landlord proposes to increase the

3-17  rent;

3-18      (c) The reason for the proposed increase;

3-19      (d) The name and mailing address of each tenant whose rent

3-20  the landlord proposes to increase; and

3-21      (e) Any other information that the Board determines to be

3-22  necessary.

3-23      3.  The Board shall, not later than 10 days after receiving the

3-24  application:

3-25      (a) Set a date for a public hearing. The date of the public

3-26  hearing must not be more than 40 days after the date on which the

3-27  Board receives the application.

3-28      (b) Determine a meeting site. The meeting site must be the

3-29  community or recreational facility of the park affected by the

3-30  proposed increase in rent. If the affected park does not have a

3-31  community or recreational facility suitable to serve as a meeting

3-32  site, then the Board shall determine an alternative meeting site.

3-33      (c) Provide written notice of the public hearing to the landlord

3-34  and to each tenant whose rent the landlord proposes to increase.

3-35  The notice must include, without limitation:

3-36          (1) The date of the public hearing;

3-37          (2) The time of the public hearing;

3-38          (3) The place of the public hearing;

3-39          (4) The purpose of the public hearing; and

3-40          (5) Any other information that the Board determines to be

3-41  necessary.

3-42      4.  In reviewing the application, the Board shall consider,

3-43  without limitation:

3-44      (a) The operating expenses of the manufactured home park;

3-45      (b) The current rent;

4-1  (c) The debt service, including, without limitation, the debt

4-2  service for capital improvements to the manufactured home park;

4-3  and

4-4  (d) A reasonable rate of return on investment by the owner of

4-5  the manufactured home park.

4-6  5.  The Administrator shall, in consultation with the Board,

4-7  adopt regulations that establish the procedure the Board shall

4-8  follow in reviewing such an application for an increase in rent.

4-9  6.  Not later than 20 days after the public hearing, the Board

4-10  shall:

4-11      (a) Approve or disapprove the application in whole or in part;

4-12  and

4-13      (b) Provide written notice of its decision to the landlord and to

4-14  each tenant whose rent the landlord proposed to increase, which

4-15  must include, without limitation:

4-16          (1) The reason for the decision; and

4-17          (2) If the Board approves the application, the amount of the

4-18  increase in rent that the Board approved.

4-19      7.  The decision of the Board to approve or disapprove an

4-20  application for an increase in rent is a final decision for the

4-21  purposes of judicial review.

4-22      8.  The provisions of this section do not apply to a corporate

4-23  cooperative park.

4-24      Sec. 8.  The Administrator shall adopt such regulations as are

4-25  necessary to carry out the provisions of sections 2 to 8, inclusive,

4-26  of this act.

4-27      Sec. 9.  NRS 118B.140 is hereby amended to read as follows:

4-28      118B.140  1.  Except as otherwise provided in [subsection 2,]

4-29  subsections 2 and 3, the landlord or his agent or employee shall not:

4-30      (a) Require a person to purchase a manufactured home from him

4-31  or any other person as a condition to renting a manufactured home

4-32  lot to the purchaser or give an adjustment of rent or fees, or provide

4-33  any other incentive to induce the purchase of a manufactured home

4-34  from him or any other person.

4-35      (b) Charge or receive:

4-36          (1) Any entrance or exit fee for assuming or leaving

4-37  occupancy of a manufactured home lot.

4-38          (2) Any transfer or selling fee or commission as a condition

4-39  to permitting a tenant to sell his manufactured home or recreational

4-40  vehicle within the manufactured home park, even if the

4-41  manufactured home or recreational vehicle is to remain within the

4-42  park, unless the landlord is licensed as a dealer of manufactured

4-43  homes pursuant to NRS 489.311 and has acted as the tenant’s agent

4-44  in the sale pursuant to a written contract.

4-45          (3) Any fee for the tenant’s spouse or children.

5-1       (4) Any fee for pets kept by a tenant in the park. If special

5-2  facilities or services are provided, the landlord may also charge a fee

5-3  reasonably related to the cost of maintenance of the facility or

5-4  service and the number of pets kept in the facility.

5-5       (5) Any additional service fee unless the landlord provides an

5-6  additional service which is needed to protect the health and welfare

5-7  of the tenants, and written notice advising each tenant of the

5-8  additional fee is sent to the tenant 90 days in advance of the first

5-9  payment to be made, and written notice of the additional fee is given

5-10  to prospective tenants on or before commencement of their tenancy.

5-11  A tenant may only be required to pay the additional service fee for

5-12  the duration of the additional service.

5-13          (6) Any fee for a late monthly rental payment within 4 days

5-14  after the date the rental payment is due or which exceeds $5 for each

5-15  day, excluding Saturdays, Sundays and legal holidays, which the

5-16  payment is overdue, beginning on the day after the payment was

5-17  due. Any fee for late payment of charges for utilities must be in

5-18  accordance with the requirements prescribed by the Public Utilities

5-19  Commission of Nevada.

5-20          (7) Any fee, surcharge or rent increase to recover from his

5-21  tenants the costs resulting from converting from a master-metered

5-22  water system to individual water meters for each manufactured

5-23  home lot.

5-24          (8) Any fee, surcharge or rent increase to recover from his

5-25  tenants any amount that exceeds the amount of the cost for a

5-26  governmentally mandated service or tax that was paid by the

5-27  landlord.

5-28      2.  Except for the provisions of subparagraphs (3), (4), (6) and

5-29  (8) of paragraph (b) of subsection 1, the provisions of this section do

5-30  not apply to a corporate cooperative park.

5-31      3.  A fee or other charge allowed pursuant to this section must

5-32  not be used to circumvent the provisions of section 7 of this act.

5-33      Sec. 10.  NRS 118B.150 is hereby amended to read as follows:

5-34      118B.150  1.  Except as otherwise provided in subsection 2,

5-35  the landlord or his agent or employee shall not:

5-36      (a) Increase rent or additional charges unless:

5-37          (1) The rent charged after the increase [is] :

5-38              (I) Is the same rent charged for manufactured homes of

5-39  the same size or lots of the same size or of a similar location within

5-40  the park, including, without limitation, manufactured homes and lots

5-41  which are held pursuant to a long-term lease, except that a discount

5-42  may be selectively given to persons who:

5-43                  [(I)] (i) Are handicapped;

5-44                  [(II)] (ii) Are 55 years of age or older;

6-1               [(III)] (iii) Are long-term tenants of the park if the

6-2  landlord has specified in the rental agreement or lease the period of

6-3  tenancy required to qualify for such a discount;

6-4               [(IV)] (iv) Pay their rent in a timely manner; or

6-5              [(V)] (v) Pay their rent by check, money order or

6-6  electronic means; and

6-7           (II) Has been approved pursuant to section 7 of this act

6-8  by the Manufactured Home Park Rent Review Board, if required;

6-9       (2) Any increase in additional charges for special services is

6-10  the same amount for each tenant using the special service; and

6-11          (3) Written notice advising a tenant of the increase is

6-12  received by the tenant 90 days before the first payment to be

6-13  increased and written notice of the increase is given to prospective

6-14  tenants before commencement of their tenancy. In addition to the

6-15  notice provided to a tenant pursuant to this subparagraph, if the

6-16  landlord or his agent or employee knows or reasonably should know

6-17  that the tenant receives assistance from the fund created pursuant to

6-18  NRS 118B.215, the landlord or his agent or employee shall provide

6-19  to the Administrator written notice of the increase 90 days before

6-20  the first payment to be increased.

6-21      (b) Require a tenant to pay for an improvement to the common

6-22  area of a manufactured home park unless the landlord is required to

6-23  make the improvement pursuant to an ordinance of a local

6-24  government.

6-25      (c) Require a tenant to pay for a capital improvement to the

6-26  manufactured home park unless the tenant has notice of the

6-27  requirement at the time he enters into the rental agreement. A tenant

6-28  may not be required to pay for a capital improvement after the

6-29  tenant enters into the rental agreement unless the tenant consents to

6-30  it in writing or is given 60 days’ notice of the requirement in

6-31  writing. The landlord may not establish such a requirement unless a

6-32  meeting of the tenants is held to discuss the proposal and the

6-33  landlord provides each tenant with notice of the proposal and

6-34  the date, time and place of the meeting not less than 60 days before

6-35  the meeting. The notice must include a copy of the proposal. A

6-36  notice in a periodic publication of the park does not constitute notice

6-37  for the purposes of this paragraph.

6-38      (d) Require a tenant to pay his rent by check or money order.

6-39      (e) Require a tenant who pays his rent in cash to apply any

6-40  change to which he is entitled to the next periodic payment that is

6-41  due. The landlord or his agent or employee shall have an adequate

6-42  amount of money available to provide change to such a tenant.

6-43      (f) Prohibit or require fees or deposits for any meetings held in

6-44  the park’s community or recreational facility by the tenants or

6-45  occupants of any manufactured home or recreational vehicle in the

7-1  park to discuss the park’s affairs, or any political or social meeting

7-2  sponsored by a tenant, if the meetings are held at reasonable hours

7-3  and when the facility is not otherwise in use, or prohibit the

7-4  distribution of notices of those meetings.

7-5  (g) Interrupt, with the intent to terminate occupancy, any utility

7-6  service furnished the tenant except for nonpayment of utility charges

7-7  when due. Any landlord who violates this paragraph is liable to the

7-8  tenant for actual damages.

7-9  (h) Prohibit a tenant from having guests, but he may require the

7-10  tenant to register the guest within 48 hours after his arrival, Sundays

7-11  and legal holidays excluded, and if the park is a secured park, a

7-12  guest may be required to register upon entering and leaving.

7-13      (i) Charge a fee for a guest who does not stay with the tenant for

7-14  more than a total of 60 days in a calendar year. The tenant of a

7-15  manufactured home lot who is living alone may allow one other

7-16  person to live in his home without paying an additional charge or

7-17  fee, unless such a living arrangement constitutes a violation of

7-18  chapter 315 of NRS. No agreement between a tenant and his guest

7-19  alters or varies the terms of the rental contract between the tenant

7-20  and the landlord, and the guest is subject to the rules and regulations

7-21  of the landlord.

7-22      (j) Prohibit a tenant from erecting a fence along the perimeter of

7-23  the tenant’s lot if the fence complies with any standards for fences

7-24  established by the landlord, including limitations established for the

7-25  height of fences, the materials used for fences and the manner in

7-26  which fences are to be constructed.

7-27      (k) Prohibit any tenant from soliciting membership in any

7-28  association which is formed by the tenants who live in the park. As

7-29  used in this paragraph, “solicit” means to make an oral or written

7-30  request for membership or the payment of dues or to distribute,

7-31  circulate or post a notice for payment of those dues.

7-32      (l) Prohibit a public officer, candidate for public office or the

7-33  representative of a public officer or candidate for public office from

7-34  walking through the park to talk with the tenants or distribute

7-35  political material.

7-36      (m) If a tenant has voluntarily assumed responsibility to trim the

7-37  trees on his lot, require the tenant to trim any particular tree located

7-38  on the lot or dispose of the trimmings unless a danger or hazard

7-39  exists.

7-40      2.  The provisions of paragraphs (a), (b), (c), (j) and (m) of

7-41  subsection 1 do not apply to a corporate cooperative park.

7-42      3.  As used in this section, “long-term lease” means a rental

7-43  agreement or lease the duration of which exceeds 12 months.

 

 

8-1  Sec. 11.  On or before June 15, 2003, the Administrator of the

8-2  Manufactured Housing Division of the Department of Business and

8-3  Industry shall appoint to the Manufactured Home Park Rent Review

8-4  Board created by section 5 of this act:

8-5  1.  One member representing landlords whose term expires on

8-6  June 30, 2004;

8-7  2.  One member representing landlords whose term

8-8  expires on June 30, 2005;

8-9  3.  One member representing tenants whose term expires

8-10  June 30, 2004;

8-11      4.  One member representing tenants whose term expires

8-12  June 30, 2005; and

8-13      5.  One member who is an economic expert on rent at

8-14  manufactured home parks, as determined by the Administrator of

8-15  the Manufactured Housing Division of the Department of Business

8-16  and Industry, whose term expires on June 30, 2004.

8-17      Sec. 12.  1.  This act becomes effective upon passage and

8-18  approval for the purposes of appointing members to the

8-19  Manufactured Home Park Rent Review Board and adopting

8-20  regulations, and on October 1, 2003, for all other purposes.

8-21      2. This act expires by limitation on September 30, 2007.

 

8-22  H