Manufactured Home Park Program
SHARE

Overview

This page highlights the Manufactured Home Park Program, sometimes referred to as mobile home parks. The page sections explain how this program works to provide financial and technical resources to encourage and facilitate cooperative ownership of manufactured home parks.

MHCFP assists manufactured home park residents in purchasing the land underlying their homes, making infrastructure improvements, and forming cooperatives. By owning and managing their parks, residents are able to take greater control over their housing costs and living conditions.

Eligible applicants are manufactured home residents' associations, manufactured home park cooperatives, municipalities, housing development fund companies, and not-for-profit corporations or charitable organizations whose purpose includes the improvement of housing.

Program Highlights

This program offers two ways for park owners and residents to maintain affordable, modern and attractive park communities. With a Manufactured Home Park Preservation Loan, affordable financing is available for the acquisition and rehabilitation of manufactured home communities.

With a SONYMA mortgage, residents on leased land in a park community may finance the purchase of new manufactured homes and installation of foundations or refinance their existing home.
 

Manufactured Home Advantage Program Brochure

SONYMA Mortgages for Manufactured Homes Brochure

Manufactured Home Park Preservation Program Term Sheet

Funding

Helping Residents to Own the Land Under Their Homes

The Manufactured Home Cooperative Fund is a revolving loan program which provides the financial and technical resources to encourage and facilitate cooperative ownership of manufactured home parks, sometimes referred to as mobile home parks.

MHCFP assists manufactured home park residents in purchasing the land underlying their homes, making infrastructure improvements, and forming cooperatives. By owning and managing their parks, residents are able to take greater control over their housing costs and living conditions.

Eligible applicants are manufactured home residents' associations, manufactured home park cooperatives, municipalities, housing development fund companies, and not-for-profit corporations or charitable organizations whose purpose includes the improvement of housing.

Income restrictions apply and preference will be given to applicants whose average incomes do not exceed the median income for the county in which the park is located.

View the chart showing the median income for each county.

For further information contact Mark Flescher, Vice President, Special Projects at (212) 688-4000 x493.

Your Rights

What is the Manufactured Homes Complaint Program?
Section 233 of the New York State Real Property Law governs tenants’ rights in manufactured home parks.  DHCR has the authority to enforce RPL 233. The Manufactured Homes Complaint Program was created to allow tenants to inquire about their rights under RPL 233 or initiate complaints if they feel their rights are being violated.  DHCR trained staff work with park owners and tenants to resolve disputes in compliance with the requirements of the statute.

 

Filing a Complaint
Tenants who live in manufactured home parks may initiate a complaint by contacting the DHCR Manufactured Homes Complaint Program. Call the toll free hotline or, contact the DHCR Hampton Plaza office in Albany:

Albany
Manufactured Homes Program/38-40StateStreet/HamptonPlaza/Albany, NY 12207

Toll Free Hotline 1 (800) 432-4210

Manufactured Home Park Registration

A manufactured home tenant is a person who rents space in a manufactured home park from a manufactured home park owner or operator or the purpose of parking his or her manufactured home, or a person who rents a manufactured home in a park from a manufactured home park owner or operator.

 

What is a Manufactured Home Park?

A manufactured home park is defined as a contiguous parcel of privately owned land, which is used for the accommodation of three or more manufactured homes occupied for year-round living.

 

Who is a Manufactured Home Tenant?

A manufactured home tenant is a person who rents space in a manufactured home park from a manufactured home park owner or operator or the purpose of parking his or her manufactured home, or a person who rents a manufactured home in a park from a manufactured home park owner or operator.

 

What is a Manufactured Home Park?

A manufactured home park is defined as a contiguous parcel of privately owned land, which is used for the accommodation of three or more manufactured homes occupied for year-round living.

 

Who is a Manufactured Home Park Owner?

A manufactured home park owner is a person(s) who owns land that accommodates three or more manufactured homes occupied for year-round living.

 

Manufactured Home Park Registration

Owners of manufactured home parks containing three or more manufactured homes must register with DHCR by January 1st each year. The annual registration must include all persons owning interest in the park, names of all tenants, all services provided by the park owner to the tenants, and a copy of all current park rules and regulations.

 

What is the Warranty of Habitability?

Tenants are entitled to a livable, sanitary and safe park, including all common areas, roads, and lots. Lease provisions inconsistent with this right are illegal and unenforceable. Failure to provide water, other essential services, or to repair sewer problems are examples of a violation of this warranty. Park owners may not willfully or intentionally fail to provide any services or facility once they have agreed to do so.

 

Summary of Manufactured Home Park Tenants' Rights Under Section 233 of the Real Property Law

Section 233 of the Real Property Law

The right to be free from retaliation if you make a complaint or join a tenant association;

The right to a rent discount if you participate in the STAR (or any other) real property tax exemption program;

The right not to be evicted except upon court proceedings;

The right to a copy of park rules and regulations and a written statement of all fees at the commencement of occupancy;

The right to have rules and regulations applied uniformly to all tenants;

The right to be free from unreasonable arbitrary or capricious rules and regulations;

The right to a thirty-day written notice prior to any change of rules or regulations;

The right to a ten-day period in order to correct a violation of park rules or regulations;

The right to a ninety-day written notice prior to increases of fees, charges or assessments; not to have rent increased more than once in any year*effective January 2, 2009;

The right not to have rent increased more than once a year, effective January, 2009;

The right to have your security deposit held in trust, in an interest-bearing account and to know the name and address of the bank, for parks consisting of six or more sites;

The right prior to occupancy to sign a lease for at least a one year term;

The right to annual lease renewal(s) to all tenants in good standing;

The right to post a For Sale sign on any manufactured home;

The right to reasonable notice of any planned disruption of services;

The right to purchase a manufactured home from whomever you wish, as either a current or prospective tenant;

The right to have essential services furnished at all times, including water, electricity and heat;

The right to choose whomever you want as a service-person;

The right to refuse to purchase equipment from the park owner;

The right to be free from occupancy restrictions in park rules or leases;

The right to sell your manufactured home without the requirement that it be removed from the park;

The right not to pay a sales commission or fee to the park owner unless the park owner acted pursuant to a written agreement; and

The right to a livable, sanitary and safe park under Warranty of Habitability.

PDF Version 

If you feel your rights have been violated call the Manufactured Home Hotline today!

Toll Free Hotline 1(800) 432-4210

Real Property Law

Section 233 of the Real Property Law

 

FAQ's on Real Property Tax Law Section 581-a

The State Legislature in 2005 (chapter 714) added section 581-a to the Real Property Tax Law (RPTL) to give the owners of residential rental properties, subject to regulatory agreements restricting occupancy in accordance with an income test, the right to have their properties valued, for real property taxation purposes, by the "capitalization of income" method. The following questions and answers are intended to address common issues concerning section 581-a.

Q. When did section 581-a become effective?
A. Chapter 714, which added section 581-a, became effective on October 11, 2005, and applies to assessment rolls based on taxable status dates occurring on or after January 1, 2006.

Q. Which State agency is responsible for adopting regulations regarding section 581-a?
A. The State Division of Housing and Community Renewal (DHCR) (www.nysdhcr.gov) is the only State agency with such authority.

Q. Has DHCR promulgated regulations regarding section 581-a?
A. Yes. DHCR adopted and promulgated a new Part 2656 to Title 9, NYCRR, which applies to section 581-a. Part 2656 became permanently effective on November 1, 2006.

Q. Does section 581-a apply only to residential rental properties that are subject to New York State regulatory agreements?
A. No. DHCR rules provide that section 581-a applies to residential rental properties subject to "any agreement, including but not limited to a contract or covenant, between the property owner(s) and the municipal, state or federal government, or an instrumentality thereof, which requires the property owner(s) to rent at least twenty percent of the residential units to tenants who qualify in accordance with an income test" (9 NYCRR §2656.2(b)).

Q. May section 581-a apply to a single family home?
A. Yes, if the single family home is a rental property subject to a regulatory agreement that complies with 9 NYCRR §2656.2(b).

Q. May the owner of a residential rental property that is subject to a PILOT (payment-in-lieu of taxes) agreement that went into effect before section 581-a became effective request that the property be valued pursuant to section 581-a?
A. RPTL, section 581-a, does not address existing PILOT agreements. The specific terms of a PILOT agreement must be negotiated by the parties to the agreement.

Q. May a residential real property subject to a PILOT agreement receive the benefit of §581-a for the purpose of special district charges?
A. Yes, unless the PILOT agreement provides otherwise.

Q. What documentation must the owner of a residential rental property submit to the assessor before the assessor is required to value the property in accordance with section 581-a?
A. DHCR rules state that the property owner must provide the assessor "with a copy of all applicable regulatory agreements and, on an annual basis, income documentation prior to the taxable status date" (emphasis added) (9 NYCRR §2656.3).

Q. What types of financial records constitute "income documentation"?
A. DHCR rules define "income documentation" as "the most recent financial statement, independent auditor's report and rent roll for the residential real property or, if the most recent financial statement does not reflect twelve (12) months of occupancy, the most recent operating budget approved by the municipal, state, or federal government, or instrumentality thereof, that is party to the regulatory agreement" (9 NYCRR §2656.2(c)).

Q. May an assessor question the accuracy of expenditures and/or revenues stated in a property owner's income documentation?
A. Neither RPTL, section 581-a, nor Part 2656 of DHCR's regulations prevents an assessor, subject to the boundaries of what is considered sound custom and practice, from verifying such items and requesting further substantiation.

Q. What methodology is to be used by an assessor when valuing a residential real property pursuant to section 581-a?
A. The assessed value of the property is to be determined "using the income approach as applied to the actual net operating income, after deducting for reserves required by any federal, state or municipal programs" (RPTL, §581-a). "Net operating income" is defined by section 581-a as "the actual or anticipated net income that remains after all operating expenses are deducted from effective gross income, but before mortgage debt service and book depreciation are deducted." The assessor must disregard any "federal, state or municipal income tax credits, subsidized mortgage financing, or project grants, where such subsidies are used to offset the project development cost in order to provide for lower initial rents as determined by regulations promulgated by the division of housing and community renewal" (Ibid.).

Q. Does the "effective gross income" of a qualified residential rental property, for the purposes of section 581-a, include rent paid by the tenants and governmental rent subsidies paid to the property owner?
A. Yes, "effective gross income" includes both types of income. The latter category of income may consist of Section 8 rent voucher payments paid by a governmental agency to the property owner.

Q. May a Rural Rental Housing Loan Agreement qualify as a "regulatory agreement" for the purposes of 9 NYCRR §2656.2(b)?
A. Yes. If the assessor is uncertain whether a purported agreement is a Rural Rental Housing Loan Agreement or another type of qualified regulatory agreement, he or she should ask the applicant to obtain confirmation from the agency that approved the agreement.

Q. Should an eligible residential rental property's real property tax payments be deducted when calculating the property's "net operating income" for the purposes of section 581-a?
A. Yes.

Q. Has DHCR done any studies concerning applicable capitalization rates for rental properties that are subject to regulatory agreements?
A. No.

Q. What types of reserves are to be deducted when the "net operating income" of an eligible residential rental property is calculated pursuant to section 581-a?
A. Reserves required by any applicable federal, state or municipal regulatory programs are to be deducted. If the assessor is uncertain whether a purported reserve payment is required, he or she may ask the property owner for additional documentation.

Q. If the property owner does not provide the assessor with the regulatory agreement and the required income documentation on or before taxable status date, may an assessor decide not to use the income approach prescribed by section 581-a to value an otherwise qualified residential rental property?
A. The applicable DHCR regulation (9 NYCRR §2656.3) clearly states that "[t]he property owner(s) shall provide the local assessing unit with a copy of all applicable regulatory agreements and, on an annual basis, income documentation prior to the taxable status date." If the assessor does not receive the required regulatory agreement(s) and income documentation on or before the taxable status date, the assessor may assume that the rental residential property does not qualify under §581-a, and value the property using any one of the conventional property appraisal methods (cost, comparative sales or income capitalization) the assessor deems appropriate. However, failure to furnish income documentation by the taxable status date does not preclude the owner from ultimately establishing eligibility under section 581-a by challenging the tentative assessment during the statutory grievance period and providing income documentation at that time. See, Matter of Warrensburg Commons LPT v. Town Assessor of the Town of Warrensburg, 2010 NY Slip Op 00624.