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Manufactured Homeowners Who Rent Lots
Lack Security of Basic Tenants Rights
A report prepared by Consumers Union Southwest Regional Office
February 2001

available in pdf format


No Protection from Eviction, Even After 16 Years

Ms. Lopez came to Legal Aid of Central Texas in the fall of 1998 with a problem: her landlord had given her a 30 day notice to vacate her lot of 16 years. The park manager claimed that Ms. Lopez had failed to repair a water leak, her lot was not well kept, and an air-conditioning unit had been on her porch for over a month.
70 year old Ms. Lopez had attempted to get the water leak fixed previous to her eviction notice. The repairman, however, refused to work on her water because of standing sewage in the area around her home, caused by problems with the park sewage system. The worker felt it was dangerous to work under such conditions. Several boxes and some furniture were outside her unit from her daughter's recent move, awaiting rental of a storage unit. The air-conditioning unit, which was functional, was on her porch while she waited for help to move it into storage.
Ms. Lopez had no recourse under current statutes in Texas. Her 16 year residency could be terminated with little notice or provocation. In this case, because the absentee landlord drove by her property and didn't like what he saw from his car window on that day.

Source: Interview with Legal Aid of Central Texas personnel.
Name of tenant changed to protect her privacy

 

 

Recommendations

Give Manufactured Homeowner Tenants warning before closing parks. Twelve months warning should give all the residents enough time to locate spaces that would accept their homes. It would also give the tenants time to make an offer to buy out the current owner of the park and continue operating it themselves.

Clarify the relationship between homeowner and the park owner. Give tenants the right to a one year, written, renewable lease that clearly discloses rent levels and the rate of rent increases.

Require landlords to show good cause for evictions. Evictions can cost homeowners thousands of dollars in moving costs and damage to unit.

Respect the individual rights of the tenants and require community rules to relate to the health, safety, and welfare of park tenants. Void unreasonable and arbitrary park rules and return the rights of privacy and freedom of speech and petition to homeowners. These homeowners are not renting the home: it is their property. Landlords should not have a right of entry except in emergencies.

Current Legislation

H.B. 557 would provide some of the protections needed in Texas. This bill:

  • Requires renters to have the option of a one-year written lease. This is the law in at least 13 states, including Illinois, Iowa, Washington and Florida. Written leases are required or must be offered in 24 states.

  • Requires renewal of leases.

  • Requires 12 months notice prior to park closures. At least 20 states require notice of change of use, including New Mexico, Ohio, and Nevada.

  • Provides legal protections equivalent to those of tenants under the Property Code on matters such as security deposits and repair/repair-payment procedures. At least 28 states, including Arizona, Minnesota, Oregon and Florida require landlords to show good cause for evictions.

  • Prohibits evictions without cause.

  • Prohibits interference by landlords in the sale of a home, landlords from requiring that tenants use them as a sales agent, and prohibits landlords from requiring that tenants move the home out when they sell it.

This bill does not:

  • Require multi-year leases. Long term leases provide the long-term stability and predictable rent increases which would be needed to make manufactured housing a housing option for those living on a fixed income. The National Communities Council, a park-owner industry group, recently found that leases 5 years longer than financing terms (i.e. 35 years for a 30 year loan) would be needed to obtain conventional financing on manufactured housing.(32)

  • Address "tying" of manufactured homes or required services. Consumers should have access to the whole market when buying homes or add-ons. The Urban Land Institute found that "in all but three states, the developer must admit any home that meets the communities design guidelines."(33) Our lack of a specific statute leads us to believe Texas is one of those three states.

  • Provide right of first refusal. Residents should have the opportunity to buy the park out at the same price as other purchasers to prevent change of use. At least six states provide for this.

  • Prohibit forced removal of homes from parks because of age. Once accepted into a park, a home should not be forced out of a park solely because of its age or model. At least seven states provide for this.(34)

Texas has a long way to go to protect this unique class of homeowners. They need access to stable, safe, and fair environments for placement of their homes. It is time we act to give them the rights they need. HB 557 is a long overdue first step.

Notes:
_______

32 "Conventional Mortgage Financing On Homes in Communities a Reality,"
Communities Council, Summer 2000.

33 Manufactured Housing: An Affordable Alternative Diane Suchman, Urban Land Institute March 1995.

34 Manufactured Housing Park Tenants: Shifting the Balance of Power. AARP 1991 And Oregon Revised Statutes 90.632

 

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