SB275A - Revises provisions relating to manufactured home parks. (BDR 10-958)

EXEMPT (Reprinted with amendments adopted on April 19, 2023) FIRST REPRINT S.B. 275 - *SB275_R1* SENATE BILL NO. 275–SENATORS DALY; AND OHRENSCHALL MARCH 14, 2023 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to manufactured home parks. (BDR 10-958) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to manufactured home parks; requiring the Housing Division of the Department of Business and Industry to calculate annually and publish a maximum annual rent increase percentage in manufactured home parks; authorizing certain persons to apply for an exemption to certain requirements relating to increases in rent; revising certain requirements related to increases in rent for certain tenancies in manufactured home parks; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law establishes certain requirements relating to manufactured home 1 parks. (Chapter 118B of NRS) Existing law prohibits a landlord or his or her agent 2 or employee from increasing rent or additional charges unless the increased rent is 3 the same rent charged for manufactured homes of the same size or lots of the same 4 size or of a similar location within the park, except that a discount may be given to 5 certain persons. (NRS 118B.150) Section 6 of this bill prohibits a landlord or his or 6 her agent or employee from increasing rent for a tenancy that is from month to 7 month and not a long-term lease unless the amount of the increase does not exceed 8 the maximum annual rent increase percentage calculated by the Housing Division 9 of the Department of Business and Industry, plus the amount of pass-through 10 expenses actually incurred by the landlord of the manufactured home park. 11 Section 4 of this bill: (1) authorizes a landlord or his or her agent or employee 12 to apply to the Division for an exemption from this limit on the maximum annual 13 rent increase if the operating costs of the manufactured home park exceed the 14 amount the park would earn with the increase in rent; (2) requires an application for 15 an exemption to include any proof necessary to justify an exemption and a report 16 that demonstrates the need for an exemption prepared by a certified public 17 accountant; and (3) requires the Division to adopt regulations to establish the 18 application process. 19 – 2 – - *SB275_R1* Section 3 of this bill requires the Division to calculate annually and publish on 20 an Internet website maintained by the Division the maximum annual rent increase 21 percentage. Section 3 also requires the Division to: (1) issue a press release 22 containing the maximum annual rent increase percentage for that fiscal year; and 23 (2) maintain on the Internet website for at least 2 years information relating to each 24 maximum annual rent increase percentage. 25 Section 2 of this bill defines “maximum annual rent increase percentage” to 26 mean the maximum annual rent increase percentage calculated by the Division 27 pursuant to section 3. Section 5 of this bill makes a conforming change to indicate 28 the proper placement of section 2 in the Nevada Revised Statutes. 29 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 118B of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2, 3 and 4 of this act. 2 Sec. 2. “Maximum annual rent increase percentage” means 3 the maximum annual rent increase percentage calculated by the 4 Division pursuant to section 3 of this act. 5 Sec. 3. 1. On or before July 1 of each year, the Division 6 shall: 7 (a) Calculate the maximum annual rent increase percentage 8 required pursuant to NRS 118B.150 for the following fiscal year, 9 which must be equal to 60 percent of the May annual 12-month 10 average change in the Consumer Price Index for All Urban 11 Consumers, West Region (All Items), as most recently published 12 by the United States Department of Labor; 13 (b) Publish on an Internet website maintained by the Division 14 the maximum annual rent increase percentage for that fiscal year; 15 and 16 (c) Issue a press release containing the maximum annual rent 17 increase percentage for that fiscal year. 18 2. The Division shall maintain the information for each 19 maximum annual rent increase percentage calculated pursuant to 20 subsection 1 on an Internet website maintained by the Division for 21 at least 2 years. 22 3. As used in this section, “fiscal year” has the meaning 23 ascribed to it in NRS 354.526. 24 Sec. 4. 1. A landlord or his or her agent or employee may 25 apply to the Division for an exemption from the requirements of 26 paragraph (b) of subsection 1 of NRS 118B.150 if the cost of 27 operating the manufactured home park exceeds the amount the 28 park would earn with the limit on the maximum annual rent 29 increase established pursuant to paragraph (b) of subsection 1 of 30 NRS 118B.150. 31 – 3 – - *SB275_R1* 2. An application for an exemption submitted pursuant to 1 subsection 1 must include: 2 (a) Any proof necessary to justify an exemption; and 3 (b) A report that demonstrates the need for an exemption 4 which must be prepared by a certified public accountant certified 5 to practice in this State pursuant to the provisions of chapter 628 6 of NRS. 7 3. The Division shall adopt regulations to carry out the 8 provisions of this section. 9 Sec. 5. NRS 118B.010 is hereby amended to read as follows: 10 118B.010 As used in this chapter, unless the context otherwise 11 requires, the words and terms defined in NRS 118B.0105 to 12 118B.0195, inclusive, and section 2 of this act have the meanings 13 ascribed to them in those sections. 14 Sec. 6. NRS 118B.150 is hereby amended to read as follows: 15 118B.150 1. Except as otherwise provided in subsections 2 16 and 3, the landlord or his or her agent or employee shall not: 17 (a) Increase rent or additional charges unless: 18 (1) The rent charged after the increase is the same rent 19 charged for manufactured homes of the same size or lots of the same 20 size or of a similar location within the park, including, without 21 limitation, manufactured homes and lots which are held pursuant to 22 a long-term lease, except that a discount may be selectively given to 23 persons who: 24 (I) Are handicapped; 25 (II) Are 55 years of age or older; 26 (III) Are long-term tenants of the park if the landlord has 27 specified in the rental agreement or lease the period of tenancy 28 required to qualify for such a discount; 29 (IV) Pay their rent in a timely manner; or 30 (V) Pay their rent by check, money order or electronic 31 means; 32 (2) Any increase in additional charges for special services is 33 the same amount for each tenant using the special service; and 34 (3) Written notice advising a tenant of the increase is 35 received by the tenant 90 days before the first payment to be 36 increased and written notice of the increase is given to prospective 37 tenants before commencement of their tenancy. In addition to the 38 notice provided to a tenant pursuant to this subparagraph, if the 39 landlord or his or her agent or employee knows or reasonably should 40 know that the tenant receives assistance from the Account, the 41 landlord or his or her agent or employee shall provide to the 42 Administrator written notice of the increase 90 days before the first 43 payment to be increased. 44 – 4 – - *SB275_R1* (b) Except as otherwise provided in section 4 of this act and in 1 addition to the requirements of paragraph (a), increase rent for a 2 tenancy that is from month to month and not a long-term lease 3 unless the amount of the increase does not exceed the maximum 4 annual rent increase percentage calculated by the Division 5 pursuant to section 3 of this act that is in effect at the time the 6 landlord or his or her agent or employee is required to provide 7 notice of an increase pursuant to subparagraph (3) of paragraph 8 (a), plus the amount of pass-through expenses actually incurred 9 by the landlord of the manufactured home park. 10 (c) Require a tenant to pay for an improvement to the common 11 area of a manufactured home park unless the landlord is required to 12 make the improvement pursuant to an ordinance of a local 13 government. 14 [(c)] (d) Require a tenant to pay for a capital improvement to 15 the manufactured home park unless the tenant has notice of the 16 requirement at the time the tenant enters into the rental agreement. 17 A tenant may not be required to pay for a capital improvement after 18 the tenant enters into the rental agreement unless the tenant consents 19 to it in writing or is given 60 days’ notice of the requirement in 20 writing. The landlord may not establish such a requirement unless a 21 meeting of the tenants is held to discuss the proposal and the 22 landlord provides each tenant with notice of the proposal and 23 the date, time and place of the meeting not less than 60 days before 24 the meeting. The notice must include a copy of the proposal. A 25 notice in a periodic publication of the park does not constitute notice 26 for the purposes of this paragraph. 27 [(d)] (e) Require a tenant to pay the rent by check or money 28 order. 29 [(e)] (f) Require a tenant who pays the rent in cash to apply any 30 change to which the tenant is entitled to the next periodic payment 31 that is due. The landlord or his or her agent or employee shall have 32 an adequate amount of money available to provide change to such a 33 tenant. 34 [(f)] (g) Prohibit or require fees or deposits for any meetings 35 held in the park’s community or recreational facility by the tenants 36 or occupants of any manufactured home or recreational vehicle in 37 the park to discuss the park’s affairs, or any political meeting 38 sponsored by a tenant, if the meetings are held at reasonable hours 39 and when the facility is not otherwise in use, or prohibit the 40 distribution of notices of those meetings. 41 [(g)] (h) Interrupt, with the intent to terminate occupancy, any 42 utility service furnished the tenant except for nonpayment of utility 43 charges when due. Any landlord who violates this paragraph is 44 liable to the tenant for actual damages. 45 – 5 – - *SB275_R1* [(h)] (i) Prohibit a tenant from having guests, but the landlord 1 may require the tenant to register the guest within 48 hours after his 2 or her arrival, Sundays and legal holidays excluded, and if the park 3 is a secured park, a guest may be required to register upon entering 4 and leaving. 5 [(i)] (j) Charge a fee for a guest who does not stay with the 6 tenant for more than a total of 60 days in a calendar year. The tenant 7 of a manufactured home lot who is living alone may allow one other 8 person to live in his or her home without paying an additional 9 charge or fee, unless such a living arrangement constitutes a 10 violation of chapter 315 of NRS. No agreement between a tenant 11 and his or her guest alters or varies the terms of the rental contract 12 between the tenant and the landlord, and the guest is subject to the 13 rules and regulations of the landlord. 14 [(j)] (k) Prohibit a tenant from erecting a fence on the tenant’s 15 lot if the fence complies with any standards for fences established 16 by the landlord, including limitations established for the location 17 and height of fences, the materials used for fences and the manner in 18 which fences are to be constructed. 19 [(k)] (l) Prohibit any tenant from soliciting membership in any 20 association which is formed by the tenants who live in the park. As 21 used in this paragraph, “solicit” means to make an oral or written 22 request for membership or the payment of dues or to distribute, 23 circulate or post a notice for payment of those dues. 24 [(l)] (m) Prohibit a public officer, candidate for public office or 25 the representative of a public officer or candidate for public office 26 from walking through the park to talk with the tenants or distribute 27 political material. 28 [(m)] (n) If a tenant has voluntarily assumed responsibility to 29 trim the trees on his or her lot, require the tenant to trim any 30 particular tree located on the lot or dispose of the trimmings unless a 31 danger or hazard exists. 32 [(n)] (o) Charge a fee for a late monthly rental payment by a 33 federal worker, tribal worker, state worker or household member of 34 such a worker during a shutdown. 35 2. The landlord is entitled to require a security deposit from a 36 tenant who wants to use the manufactured home park’s clubhouse, 37 swimming pool or other park facilities for the tenant’s exclusive use. 38 The landlord may require the deposit at least 1 week before the use. 39 The landlord shall apply the deposit to costs which occur due to 40 damage or cleanup from the tenant’s use within 1 week after the use, 41 if any, and shall, on or before the eighth day after the use, refund 42 any unused portion of the deposit to the tenant making the deposit. 43 The landlord is not required to place such a deposit into a financial 44 institution or to pay interest on the deposit. 45 – 6 – - *SB275_R1* 3. The provisions of paragraphs (a), [(b),] (c), [(j)] (d), (k) and 1 [(m)] (n) of subsection 1 do not apply to a corporate cooperative 2 park. 3 4. As used in this section [, “long-term] : 4 (a) “Long-term lease” means a rental agreement or lease the 5 duration of which exceeds 12 months. 6 (b) “Pass-through expense” means the actual costs and 7 expenses incurred by a landlord that are passed on to a tenant 8 without markup. The term does not include overhead, 9 administrative expenses or profits. 10 Sec. 6.5. On or before July 1, 2023, the Housing Division of 11 the Department of Business and Industry shall, in accordance with 12 section 3 of this act, determine the maximum annual rent increase 13 percentage for Fiscal Year 2023-2024. 14 Sec. 7. 1. This section and section 6.5 of this act become 15 effective upon passage and approval. 16 2. Sections 1 to 6, inclusive, of this act become effective: 17 (a) Upon passage and approval for the purposes of adopting any 18 [Text truncated for display. Full text available on LegiScan.]