Archive

Posts Tagged ‘consumer price index’

Rent Control Expanded to Include Fair Rate of Return and Non-Standard Increases

June 22nd, 2015 Comments off

santa_clarita_mh__khts_radio__creidt_3-2015The Santa Clarita (California) City Council is ready to consider revisions to the ordinance that governs rents for residents of area manufactured home communities (MHCs), according to signalscv. The revised proposal would base the rate on the consumer price index, setting the floor for annual increases at 2.6 percent and the ceiling at five percent.

However, since the onset of a possible lawsuit from MHC owners, the ordinance was further revised to include a “non-standard” rent increase to allow for a fair and reasonable rate of return on investment for the community owners. Erin Lay, housing program administrator for the city of Sana Clarita, said, “They are all businesses, and therefore it’s reasonable to expect a rate of return on those businesses.

Community owners would have to document the need for such an increase, which could also be appealed to the city’s Manufactured Home Rental Adjustment Panel. She noted, “It really is very broad and allows the park owners extensive flexibility to propose an increase. But it also requires significant documentation and support, and we felt that was a fair middle ground.

The new ordinance also allows for adjustments for capital improvements and replacement costs, as MHProNews understands. If the council agrees to the new rules Tue., June 23, a second reading will be set for July 14, 2015. ##

(Photo credit: KHTS radio–Santa Clarita manufactured home community)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

 

Legislation Would Allow MHC Residents to Challenge Rent Increases

May 23rd, 2014 Comments off

New York State Senator Ken LaValle (R-Port Jefferson) is drafting new legislation so owners of manufactured homes in communities would have some protection from “unjustifiable rent increases,” according to timesreview.com. Legislation aimed at protecting owners of manufactured homes has passed seven of the last eight years in the Democrat-controlled assembly, but has never made it past the Republican-controlled senate. “We’re looking for a solution where people would have the strength of law on their side, where they don’t have to do anything to challenge the rent increase,” he said.

Riverhead Town on Long Island has approximately 1,900 manufactured homes in 24 communities, as MHProNews.com has learned.. The current measure would allow owners of manufactured homes to challenge rent increases if they exceed the Consumer Price Index (CPI). Brian Stark, owner of Glenwood Village MHC, says it is un-American “because it tells private business owners how much they can or can’t make.” ##

(Photo credit: Wikipedia.com/Tri-Star manufactured home community)

Community Residents Happy for Rent Increase

November 7th, 2013 Comments off

Residents of the Hillcrest Mobile Home Park in Middleboro, Massachusetts are perfectly willing to see their site rents bumped from $192 a month to $281: It means long-neglected capital improvements will be undertaken for these residents who are purchasing the community from Morgan MHP Mass, LLC. Morgan had asked for an increase to $371 in 2012 with future increases proposed based on the Consumer Price Index. The hike will help pay for sewer and road improvements, according to southcoasttoday.com. Seventy of the 93 residents (or families) have become members of the tenants association that will now govern the community. A professional financial planner will be collecting the rents and paying the bills, with guidance in purchasing the community from New England Resident Owned Communities (NEROC). As MHProNews has learned, the proposed rent increases are based in part on the costs of capital improvements.

(Photo credit: town of Middleboro, Mass.)

Center for Housing Studies says Housing Recovery is Real

July 29th, 2013 Comments off

While the Census Bureau says home ownership is at its lowest point in 15 years, Harvard University’s Joint Center for Housing Studies reports “After across-the-board declines in 2011, all major house price indexes registered significant increases in 2012.” As documentation, the Center says the March 2013 median house price was up 11.6 percent over March 2012, and as of April 2013, home prices have risen in all except two states and in 94 of 100 major metropolitan markets. Between Q4 2011 and Q4 2012, the number of underwater borrowers dropped 1.7 million to 10.4 million, which represents 23 percent of all mortgage holders. Further, as philly.com informs MHProNews, the rise in prices resulted from increased sales and fewer listings. April 2013 marked the 34th consecutive month of rent increases as ranked by the Consumer Price Index, and last year rental households grew by 1.1 million. Eric S. Belsky, the joint center’s managing director, says, “Even as historically low interest rates have helped make the monthly cost of owning a home more favorable than any time in the past 40 years, the national homeownership rate fell for the eighth straight year in 2012.” He adds, noting the challenges still ahead, “Long-term vacancies are at elevated levels in a number of places, millions of owners are still struggling to make their mortgage payments, and credit conditions for home buyers remain extremely tight.”

(Photo credit: knoxnews)

Del. Rent Control Law to be Explained

July 24th, 2013 Comments off

Following the receipt of letters by manufactured housing community residents from landlords allegedly trying to lock them into long-term leases with built-in increases, two Del. lawmakers are holding a meeting on the new rent control measure set to become law Jan. 1. Under the new bill, community owners will be required to justify increasing rents above the Consumer Price Index (CPI) average for the past three years. House Majority Leader Valarie Longhurst (D-Bear) and Sen. Nicole Poore (D-New Castle) will hold the meeting Wed. night, July 24 in Bear, in northern Del. As radio station WDDE informs MHProNews, Longhurst, noting how contentious the issue has become in the last few years, says, “It was a consensus bill. The landowners didn’t get everything they wanted, the homeowners didn’t get everything that they wanted.”

(Photo credit: First State Manufactured Housing Association)

Delaware General Assembly Passes Rent Justification for Land Lease Communities

June 21st, 2013 Comments off

Following a story MHProNews last covered June 11, 2013 regarding the rent justification bill in the Delaware General Assembly, lawmakers passed SB 33 but removed the requirement that increases be greater than the average annual increase in the Consumer Price Index (CPI) for the last three years. The Delaware State Housing Authority will still consider the request for a raise in rents if the landlord states it will be used to improve the community. If the residents and owner cannot agree on an increase, the matter will go to non-binding arbitration. Another amendment to the Senate version, as delawarenewszap says, is the arbitrator must submit a written decision within 15 days of the arbitration.

(Photo credit: capegazette/Ron MacArthur–land lease community near Rehoboth Shores, Long Neck, DE)

Senate Modifies Rent Control Bill

June 11th, 2013 Comments off

According to capegazette.village soup, the Delaware Senate modified the rent justification measure that will limit manufactured housing community owners ability to raise rent, a story MHProNews has been following since March 8, 2013. As originally passed, SB 33 says landlords could increase rents based on a formula tied to the consumer price index (CPI). Anything higher owners would have to justify as contributing to the well being of the community, and be approved by the Delaware Manufactured Home Relocation Authority (DMHRA). The new version states residents and the DMHRA are to be notified of an increase. If the increase exceeds the CPI formula, the authority begins mediation between the owner and the residents. If that fails, the matter goes to non-binding arbitration.

(Photo credit: First State Manufactured Housing Association)

Rent Control Measure Moves to House

June 6th, 2013 Comments off

Updating a post MHProNews last covered May 2, 2013, regarding the rent justification bill in the Delaware General Assembly, delaware.newszap reports the measure passed the Senate 17-2, in stark contrast to last year when it squeaked by 11-9 and then failed in the House. The bill requires MHC owners to seek approval from the Delaware Manufactured Home Relocation Authority if they raise site rents beyond the average annual increase in the Consumer Price Index (CPI). The request will be considered only if the community owner can prove the added rent will be used to improve the community. Sponsors, noting the strong support in the Senate, think it will play better than in the past in the House.

(Photo credit: Ron MacArthur/capegazette–Rehoboth Shores near Long Neck, DE)

Rent Justification Bill in Delaware Legislature again

May 2nd, 2013 Comments off

DelawareNewszap reports state Sen. Bruce Ennis has sponsored a rent justification bill, SB 33, for manufactured home communities that will mandate MHC owners seek approval from the Delaware Manufactured Home Relocation Authority if they try to raise rents beyond the Consumer Price Index (CPI) annual increase. The authority will allow the increase only if the landlord can prove it will benefit the community directly. In last year’s General Assembly a similar bill passed the Senate but not the House. As MHProNews reported April 12, 2013 a state initiative was set to begin April 15 to assist manufactured home owners with site rent and house payments up to $5,000.

(Image credit: Wikipedia–Delaware state flag)

Residents Seek State Protection from Landlord

March 27th, 2013 Comments off

According to lehighvalleylive residents of Greenbriar Valley manufactured housing community (MHC) in east-central Penn. allege owner Equity LifeStyle Properties, Inc. (ELS) is unjustly raising their rents and they are seeking protection, as they approach April 18 when rents for the 319 site community will rise again. One residents says his site rent has increased from $374 to $539 a month in ten years. At a Greenbriar homeowners association meeting State Rep. Robert Freeman says he sponsored legislation last year that gives manufactured home owners more rights if their community is sold, and will work with residents to seek more protection. He favors rents being tied to the consumer price index and intends to meet with the attorney general regarding protection for homeowners under the state’s Consumer Protection Act. As MHProNews knows, ELS is the largest owner of MHCs in North America with some 380 communities comprised of over 141,000 homesites.

(Photo credit: Bill Wechter/nctimes)