(The Center Square) – Residents of manufactured home communities often face the same problem: constantly rising lot rental fees that some critics say “predatory” investors use to hold residents “hostage.”
That’s why Sen. Judy Schwank, D-Reading, offered a simple solution that’s gained the approval of advocates long battling the issue: rent caps.
Senate Bill 861 would amend Act 261, creating a cap on yearly land rent increases on manufactured homes. Manufactured home communities provide a source of affordable housing for seniors, veterans, and individuals with disabilities on fixed incomes. Its companion, House Bill 805, was introduced by Rep. Liz Hanbidge, D-Blue Bell.
Manufactured homes are built in factories, then transported, and assembled on site. They are unique in that residents own the home, but not the land upon which it sits.
“We applaud the bill,” Kevin Quisenberry, Community Justice Project litigation director told The Center Square. “Every year across the commonwealth, homeowners in manufactured home communities face steep and often predatory spikes in lot rents, particularly as corporate investors acquire these communities.”
He called it a critical issue, as many of the residents they work with can’t afford to relocate their homes to another park and are effectively a “captive audience” for park owners.
“The policy solution proposed here is the right approach,” he said.
The Community Justice Project, a statewide legal aid program that protects the rights of low-income clients, has extensive experience representing residents in manufactured home communities.
Dan Vitek, a senior staff attorney for the organization, said he has represented hundreds of homeowners in these communities throughout the state, and they view this as one of the biggest inequities they face.
“In our experience, these abrupt lot rent hikes often exceed 40%,” said Vitek, and they rarely see a significant investment back into the park when rents are raised. “Residents of mobile home parks are a resourceful group, but they are not protected from massive rent hikes, leaving them with little bargaining power.”
The idea for SB861 was brought to Schwank by residents of Douglass Village in Berks County.
They formed a Rent Issues Committee after the original developer sold the property to Kingsley Management in Provo, Utah. As Schwank was crafting the bill, they organized a letter writing campaign to all state legislators urging them to support it.
Bob Besecker, the committee co-chairman, told The Center Square his fears of an “abnormally high” increase were realized in January 2022 when his rent increased 13% – $75 per month. In 2023 it increased by another $75.
Act 261 restricts raising rent more than once within a 12-month period, but it does not limit the amount.
Besecker said people “live in these communities for the convenience of one-floor living, little outside maintenance, and fellowship.” In general, “this will be their last shot at truly independent living.”
He said residents understand management companies and property owners expect a return on their investment, but reasonable increases based on the consumer price index, as the bill suggests, would make sense. He also stressed the bills’ passage would not incur any increased cost to Pennsylvania taxpayers.
Their next step is a “significant email campaign” to members of the committees the bills are currently in, and they plan on watching and/or attending any hearings relating to them.
Douglass Village formed a coalition with five other communities, primarily in the southeastern part of the state, and Besecker welcomes others. He is willing to share information with representatives of other communities.
“Pennsylvania’s renters deserve to have someone looking out for them,” Schwank said.
Due to affordable housing issues, renters especially have watched rising prices eat into more and more of their earnings.
“For many, securing a safe, affordable place to call home becomes more difficult with each passing day,” he said. “These bills will not fix all the issues renters face. However, they will provide a layer of badly needed protection.”
