(The Center Square) – Lawmakers in Harrisburg are renewing efforts to protect affordable homeownership for some of Pennsylvania’s most vulnerable residents, with one bill advancing out of the House and two others beginning their journey in the Senate.
House Bill 1250 recently passed the House with bipartisan support on a vote of 144-59 – with 42 Republicans voting in favor of it. It now advances to the Senate Urban Affairs and Housing Committee for consideration.
Similar efforts failed to pass during prior sessions, but this time around, the bill incorporates changes that its sponsors say balance the rights of both home and property owners.
Rep. Liz Hanbidge, D-Blue Bell, in a press release said that manufactured homes are an affordable and stable living option in an increasingly unaffordable market and her bill “isn’t just about policy, it’s about dignity.”
“In crafting this legislation, I heard from many people who said that price gouging is forcing them to make choices between paying lot rent, or paying for essentials like medications and food.”
While residents own their homes, they don’t own the property on which they sit and, therefore, must pay land rent. Hanbidge said her legislation protects these residents from financial exploitation.
The bill would tie lot rent increases to the consumer price index, or CPI. It also includes a provision allowing for rent increases to cover extraordinary operating expenses or repairs through a disclosure process.
Additional consumer protections outlined in the bill include the requirement of fee disclosures, allowing resident associations and group meetings, and slightly lengthened notification deadlines.
Prior to the final House vote, Rep. Dan Moul, R-Gettysburg, advocated for the legislation – he owns a manufactured home community in Adams County.
“I am supposed to be on the other side of this issue,” said Moul. “I am supposed to be one of those guys who makes as much money as I can on the people I rent to, but that’s not me. I have a park with many senior citizens likely living on Social Security.
“It’s our job as legislators to protect those who need our help the most, not the private equity firms with unlimited amounts of money who are gouging our most vulnerable citizens and driving them out of their homes.”
Bob Besecker, founder of the Coalition of Manufactured Home Communities of Pennsylvania
believes actions by the group played a significant role in getting the bill this far.
Besecker told The Center Square their membership has now grown to 89 communities, and that their PA Manufactured Housing Issues Facebook page has more than 750 members.
Their efforts now shift to the Senate Urban Affairs and Housing Committee, where the bill died last session without receiving a hearing. He is cautiously optimistic that the bipartisan support the bill has garnered so far could improve its chances of moving forward this time.
Besecker said it is important to note that their efforts are largely against private equity firms, not “mom-and-pop” operations like Moul’s community.
He argues that larger firms are deficient in ethical responsibility, one of the four pillars of business. While they may be staying within the law, since Act 261 does not limit land rent increases, “what they are doing to the residents of manufactured home communities in Pennsylvania is certainly far from ethical,” he said.
A package of companion bills recently introduced by Sen. Judith Schwank, D-Reading, was also referred to the Urban Affairs and Housing Committee.
Senate Bill 745 imposes an of-right annual rent increase based upon the CPI with an opportunity to justify higher increases, such as for repairs or operating expenses. Senate Bill 746 provides advance 90-day notice and an opportunity for residents to purchase their community if the owner desires to sell or close it.
Schwank said she recognizes manufactured home community owners have property rights and are entitled to a reasonable rate of return on their investment, but the commonwealth has a role to play in balancing those rights while affirming the rights of the homeowners.
Besecker says, they’re not giving up. The coalition has identified several senators on the committee who represent 20 or more manufactured home communities in their districts – and those lawmakers can expect to hear from constituents.
