Manufactured home lot rent control clears major legislative hurdle

(The Center Square) – The fate of bills aimed at protecting some of Pennsylvania’s most vulnerable residents now rest in the hands of the Senate after clearing the House earlier this month.

House Bill 1250, sponsored by Rep. Liz Hanbidge, D-Blue Bell, passed the House on a 144-59 vote, with 42 Republicans voting in favor. Sen. Judy Schwank, D-Reading, has also introduced a package of companion bills – Senate Bill 745 and 746. All measures have been referred to the Senate Urban Affairs and Housing Committee.

The bills’ sponsors and advocates are encouraged by the bipartisan support received so far.

At a press conference in Harrisburg last week, Schwank stood alongside residents of manufactured home communities from across the commonwealth. She explained that private equity firms are increasingly purchasing these communities, then dramatically raising lot rents, while allowing services and upkeep to decline.

Manufactured homeowners typically own their homes but not the land they sit on. Relocating them is extremely costly and often impractical, leaving many residents effectively trapped – and private equity firms are exploiting this vulnerability, Schwank said.

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“This practice is eroding one of the last remaining sources of truly affordable housing, she said. “We talk a lot in this building about the affordable housing crisis…we have homes – we just want to keep them.”

Like HB 1250, Swank’s bills would tie lot rent increases to the consumer price index, or CPI, while allowing additional increases to cover extraordinary operating expenses or repairs through a disclosure process.

Joining Schwank at the press conference were Rep. Hanbidge, Bob Besekcer of the Coalition of Manufactured Home Communities of Pennsylvania, Dan Vitek from the Community Justice Project, Sen. Tracy Pennycuick, R-Red Hill, and Rep. Dan Moul, R-Gettysburg.

Recognizing the residents’ advocacy, Hanbidge emphasized that this is not a “niche issue,” but a critical piece of Pennsylvania’s affordable housing landscape.

She highlighted the need to protect more than 55,000 households – comprised of working families, retirees, veterans, and people on fixed incomes – who live in these communities.

“This is not just a housing issue. It’s a matter of fairness, dignity and protecting Pennsylvanians from exploitation,” said Hanbidge.

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At the end of the day, it’s simply about protecting Pennsylvanians from predatory practices, she added. “Every Pennsylvanian deserves a fair chance to stay in the home they’ve worked so hard to own. Let’s do the right thing, Senate. Pass House Bill 1250 and protect the people we were elected to serve.”

The Coalition of Manufactured Home Communities of Pennsylvania partnered with Schwank and Hanbidge to advance the legislation. Bob Besecker, the organization’s founder, said the homeowners “require help that can only come out of this building.”

He noted that out-of-state corporations and private equity firms are pressuring legislators not to interfere with their right to do business, saying they need protection.

“We are largely 60-, 70-, 80-year-olds sporting gray hair with a lot of canes and wheelchairs among us,” Besecker said. “No – it is we who must have protection from them – the property owners.”

He emphasized the legislation does not ask for “a single dime from the taxpayers.”

“All we want is peace, protection, and tranquility in what will truly be our last shot at independent living,” Besecker said.

In his remarks, he framed the debate as a choice: Support and protect out-of-state corporations and private equity firms, or the hundreds of thousands of elderly widows, disabled persons, and veterans, residing in the 2,288 manufactured home communities across the state.

Dan Vitek, an attorney with the nonprofit Community Justice Project, said he was already familiar with the situation before being contacted by the coalition, having been “inundated with calls from residents” whose rents skyrocketed after their communities were purchased by private equity firms or outside investors.

Asked whether a legislative solution could meet both state and federal constitutional standards, Vitek said that after researching the issue, he can confidently say a law allowing for reasonable rent increases – covering increases in operating costs and affording profitability for the owners – while protecting the homeowners from price gouging on lot rent, “is constitutional and fully within the power of this legislature to act.”

After the press conference, Beseker told The Center Square he was overwhelmed by the turnout and enthusiasm.

“Folks who never envisioned themselves being part of such an event suddenly realized their opinions matter,” he said. “They made their voices heard.”

He said it was gratifying to see bipartisan support from state legislators and that efforts are now underway to gain the support from the Senate Urban Affairs and Housing Committee – and getting a hearing date on their calendar.

“When they do, we’ll be there,” he said.

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