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Press ReleaseMarch 1, 2001 |
Janee Briesemeister or Rafael Ayuso |
Consumers
beware: manufactured housing
can be risky purchase
Study describes
how Texans in mobile home parks
live at the mercy of their landlords
AUSTIN, TX -- The American dream of homeownership can quickly turn into a nightmare for the more than 750,000 Texans who live in their own manufactured homes but lease the lot in which their homes sit, according to a report released today by Consumers Union.
Texas has more than 1,300 manufactured housing communities. Occupants tend to be younger (median age of 29) and have a higher household income (about $30,000) than owners of manufactured homes nationally. Sixty eight percent of manufactured homes are found in urban areas, particularly Houston (11.5 percent) and Dallas (9.9 percent).
Although Texans purchase more manufactured homes than residents of any other state, they have none of the legal protections that other renters have when renting the land in which their homes sit - including the right to a one-year written, renewable lease. Approximately 1.2 million people live in manufactured homes in Texas, including 750,000 people whose homes are located on rented lots. The percentage of owners living on rented lots may be far higher for new homes. National statistics on manufactured home loans indicate that fewer than 10 percent of loans include both home and land as collateral.
"The purchase of a manufactured home with a rented lot can be risky for consumers in Texas, contrary to at least 37 other states which recognize the potential problems faced by these lease-less tenants," said Janee Briesemeister, senior policy analyst with the Southwest Regional Office of Consumers Union. For example, Illinois requires landlords to offer a 1-year lease with automatic renewal; Florida requires one year notice before the closure of a park; and Oregon prohibits landlords from forcing a home from the park based on age, architectural style or original materials.
In Texas it is common for mobile home park residents to live on a month-to-month lease, and they can be given a 30-day notice to leave at any time, no reason required.
"For many, lack of a long term lease places their future on perilous ground," the report states. "Without a long-term lease, non renewal may happen at any time - after years in the park or merely months later."
Many mobile home parks were built decades ago on low cost land at the edge of city limits. Today, that land is often prime real estate, often sold for large-scale commercial or retail development. The report cites a real estate web site that recently listed 59 mobile home parks for sale at one time, representing about 4,900 lots in Texas. Homeowners in these lots can be evicted from their rental space and have to move their homes with little notice and no recourse. Further, even in locations that are not changing use, tenants can be evicted without cause.
The cost of moving a manufactured home ranges from $1,500 to $3,500, according to industry estimates. Moving a home can also cause structural damage. Moreover, many parks are full or won't accept used homes. According to Sun Communities, a park development company active in Texas, only 3% of its occupied lots open up each year.
"You're basically caught between a rock and a hard place," Briesemeister said. "The landlord holds all the cards and the homeowner has no rights. If your landlord's actions make your life miserable, the only option left may be to move your home. But this is both expensive and often ill-advised because of danger to the structural integrity of your house. And often there's nowhere to move."
The study recommends the following:
· 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;
· give tenants 12 months warning before closing a park; and
· void unreasonable and arbitrary park rules and require community rules
to relate to the health, safety and welfare of park tenants.
Consumers Union supports HB 557 (Dukes) which provides these and other protections to owners of manufactured homes. The bill has been referred to the House Business and Industry Committee.
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Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.
