Bill Summary – FastDemocracy

****
68th Legislature 2023                                                                                          HB 889.1
                                               HOUSE BILL NO. 889
                                   INTRODUCED BY J. KARLEN, P. FLOWERS
  3
  A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING THE MONTANA RESIDENTIAL MOBILE
  HOME LOT RENTAL ACT; PROVIDING ADDITIONAL POLICY STATEMENTS; PROVIDING ADDITIONAL
  RENTAL AGREEMENT TERMS; LIMITING A LANDLORD'S ABILITY TO INTERFERE WITH THE SALE OF A
  MOBILE HOME; PROVIDING ALLOWABLE REASONS TO DISAPPROVE A PROSPECTIVE BUYER FROM
  OBTAINING A RENTAL AGREEMENT; PROVIDING ADDITIONAL PROTECTIONS TO A RESIDENT
  ASSOCIATION; PROVIDING ADDITIONAL ACTIONS DEEMED RETALIATORY BY A LANDLORD;
  REVISING REASONS FOR AND THE PROCESS OF A LAWFUL EVICTION OR TERMINATION OF A
  RENTAL AGREEMENT; PROVIDING ADDITIONAL REMEDIES; PROVIDING AN APPROPRIATION;
  AMENDING SECTIONS 70-33-102, 70-33-103, 70-33-201, 70-33-305, 70-33-314, 70-33-431, AND 70-33-433,
  MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.”
 14
          WHEREAS, the right of an individual to own and use property is held in high regard in Montana, and
  mobile home parks present a unique circumstance in which the right of a mobile home owner to obtain,
  possess, and use the mobile home owner's property without restriction must be considered as important and
  worthy of protection as the right of a mobile home park owner to use the land on which the property resides;
  and
          WHEREAS, many states, including Montana, have experienced mobile home park management
  companies or investors who purchase a mobile home park without the knowledge of the values and geographic
  necessities of a community and who then proceed to cut maintenance services or charge exorbitant fees and
  rent to increase profits; and
          WHEREAS, mobile home parks offer affordable housing solutions to many Montanans who often
  depend on a fixed income, and volatile rent and fee increases make mobile home park lot rental difficult to
  afford, which can lead to housing displacement for many senior citizens and low-income tenants; and
          WHEREAS, to provide for and maintain necessary affordable housing, the state of Montana needs to
  ensure that mobile home park tenants are sufficiently notified of rental increases and fee increases.
                                                             -1-                     Authorized Print Version – HB 889
****
68th Legislature 2023                                                                                          HB 889.1
  1
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
  3
          Section 1. Section 70-33-102, MCA, is amended to read:
          "70-33-102.    Purpose -- liberal construction. (1) This chapter must be liberally construed and
  applied to promote the underlying purposes and policies of this chapter.
          (2)      The underlying purposes and policies of this chapter are to:
          (a)      simplify and clarify the law governing the rental of land to owners of mobile homes and
  manufactured homes and the rights and obligations of landlords and tenants concerning lot rentals; and
          (b)      encourage landlords and tenants to maintain and improve the quality of housing and require
  landlords to maintain common land and infrastructure to ensure the health and safety of residents while
  maintaining reasonable rental costs and fees;
          (c)      maintain affordable housing solutions by discouraging excessive rent and fee increases that
  risk displacing senior citizens, low-income residents, and low-wage workers;
          (d)      discourage evictions without just cause and provide tenants an adequate timeline when a
  justified eviction occurs; and
          (e)      protect tenants from retaliation and unreasonable lease provisions."
 18
          Section 2. Section 70-33-103, MCA, is amended to read:
          "70-33-103. Definitions. Unless the context clearly requires otherwise, in this chapter, the following
  definitions apply:
          (1)      "Abandon" means to give up possession of the premises unless the landlord does not accept
  abandonment or surrender as provided in 70-33-426 or unless the rental agreement has been terminated as
  provided by law.
          (2)      "Action" includes recoupment, counterclaim, setoff suit in equity, and any other proceeding in
  which rights are determined, including an action for possession.
          (3)      "Actual and reasonable cost" means the actual amount of expenses and labor incurred or
  expended and the reasonable amount of expenses and labor estimated to be incurred or expended.
                                                              -2-                      Authorized Print Version – HB 889
****
68th Legislature 2023                                                                                              HB 889.1
          (4)      "Board" means the board of housing created in 2-15-1814.
          (4)(5)   "Case of emergency" means an extraordinary occurrence beyond the tenant's control requiring
  immediate action to protect the premises or the tenant. A case of emergency may include the interruption of
  essential services, including electricity, gas, running water, and sewer and septic system service, or life-
  threatening events in which the tenant or landlord has reasonable apprehension of immediate danger to the
  tenant or others.
          (5)(6)   "Court" means the appropriate district court, small claims court, justice's court, or city court.
          (6)(7)   "Good faith" means honesty in fact in the conduct of the transaction concerned.
          (7)(8)   "Landlord" means:
          (a)      the owner of:
          (i)      space or land, including a lot, that is rented to a tenant for a mobile home; or
          (ii)     a mobile home park;
          (b)      a person who has written authorization from the owner to act as the owner's agent or assignee
  for purposes related to the premises or the rental agreement;
          (c)      a manager of the premises who fails to disclose the managerial position; or
          (d)      a lessor who has written authorization from the owner of the premises to sublease the
  premises.
          (8)(9)   "Lot" means the space or land rented and not a mobile home itself.
          (9)(10) "Mobile home" has the same meaning as provided in 15-1-101 and includes manufactured
  homes as defined in 15-1-101.
          (10)(11) "Mobile home owner" means the owner of a mobile home entitled under a rental agreement to
  occupy a lot.
          (11)(12) "Mobile home park" means a trailer court as defined in 50-52-101.
          (12)(13) "Organization" includes a corporation, government, governmental subdivision or agency,
  business trust, estate, trust, partnership, association, two or more persons having a joint or common interest,
  and any other legal or commercial entity.
          (13)(14) "Person" includes an individual or organization.
          (14)(15) "Premises" means a lot and the grounds, areas, and facilities held out for the use of tenants
                                                                -3-                      Authorized Print Version – HB 889
****
68th Legislature 2023                                                                                             HB 889.1
  generally or promised for the use of a tenant.
          (15)(16) "Rent" means all payments to be made to a landlord, including rent, unit rent, utility and
  administrative fees, late fees, or other charges as agreed on in the rental agreement, except money paid as a
  security deposit.
          (16)(17) "Rental agreement" means all agreements, written or oral, and valid rules adopted under 70-
  33-311 embodying the terms and conditions concerning the use and occupancy of the premises.
          (18)       "Resident association" means an organization of residents who own and occupy mobile homes
  in a mobile home park that is organized to address the common interests of the residents.
          (17)(19) "Tenant" means:
          (a)        a person entitled under a rental agreement to occupy a lot to the exclusion of others; or
          (b)        a person who, with the written approval of the landlord and pursuant to the rental agreement,
  has a sublease agreement with the person who is entitled to occupy the dwelling unit under the rental
  agreement.
          (18)(20) "Unauthorized person or trespasser" means a person who:
          (a)        enters or remains after being asked to leave by the landlord and does not receive written
  permission by the landlord to remain on the premises;
          (b)        is in violation of 45-6-201;
          (c)        is in violation of 45-6-203; or
          (d)        is in violation of 70-27-102."
 20
          Section 3. Section 70-33-201, MCA, is amended to read:
          "70-33-201. Rental agreements. (1) A landlord and a tenant may include in a rental agreement terms
  and conditions not prohibited by this chapter or other rule or law.
          (2)        Unless the rental agreement provides otherwise:
          (a)        the tenant shall pay as rent the rental value for the use and occupancy of the lot as determined
  by the landlord;
          (b)        rent is payable at the landlord's address or using electronic funds transfer to an account
  designated for the payment of rent by the landlord;
                                                                -4-                     Authorized Print Version – HB 889
****
68th Legislature 2023                                                                                              HB 889.1
             (c)    periodic rent is payable at the beginning of a term that is a month or less and otherwise in
  equal monthly installments at the beginning of each month;
             (d)    rent is uniformly apportionable from day to day;
             (e)    the tenancy is from month to month the agreement is for a term of 1 year unless a longer
  period is mutually agreed on by both the tenant and the landlord; and
             (f)    if either party terminates the rental agreement without cause prior to the expiration date of the
  lease term, the aggrieved party is entitled to monetary damages up to 1 month's rent or an amount that is
  agreed on in the rental agreement, which may not exceed 1 month's rent. Landlords shall follow 70-33-426(2)
  and are entitled to rent from defaulting tenants up to the date a new tenancy starts or the date the rental
  agreement term expires.
             (3)    Rent is payable without demand or notice at the time and place agreed upon on by the parties
  or as provided by subsection (2).
             (4)    Sixty days prior to the expiration of the term of a rental agreement, the landlord shall offer the
  tenant a renewal lease for the same term and with the same provisions as the original agreement, unless the
  landlord notifies the resident in writing a minimum of 60 days prior to the expiration of the rental agreement
  that the agreement will not be renewed for reasons pursuant to 70-33-433."
 17
             Section 4. Section 70-33-305, MCA, is amended to read:
             "70-33-305. Transfer of premises by tenant -- rights and duties of landlord and tenant. (1) A
  tenant who vacates a lot during the term of a tenancy may not allow the possession of the property to be
  transferred to a third person or sublet the property unless the landlord or the landlord's agent has consented in
  writing.
             (2)    The sale or rental of a mobile home located upon a lot does not entitle the purchaser or renter
  to retain rental of the lot unless the purchaser or renter enters into a rental agreement with the owner of the lot.
             (3)    (a) A mobile home owner who owns the mobile home but rents the lot has the exclusive right to
  sell the mobile home without interference or conditions by the landlord. The new purchaser shall make suitable
  arrangements with the landlord in order to become a tenant on the mobile home lot. The purchase of the mobile
  home does not automatically entitle the purchaser potential buyer to rent the mobile home lot, and a landlord
                                                                -5-                      Authorized Print Version – HB 889
****
68th Legislature 2023                                                                                            HB 889.1
  may refuse to lease to a prospective buyer:
              (i)     if the prospective buyer has an adverse credit report;
              (ii)    if a background check indicates that the prospective buyer will pose an unreasonable hazard to
  the safety or peaceful enjoyment of the residents of the mobile home park; or
              (iii)   for any reasonable and prudent objection determined by the landlord.
              (b)     The age or condition of a mobile home is not grounds for disapproving a prospective buyer for
  a lease. The landlord may not disapprove an assignment of the lease from the tenant to the tenant's bona fide
  creditor.
              (c)     The landlord may require the prospective buyer to submit an application for lease or sublease
  or receive an assignment of the lease for the rental site and may make reasonable review of the new buyer as
  provided in subsections (3)(a)(i) through (3)(a)(iii). The landlord has 14 calendar days after receiving an
  application from the prospective buyer to give written notice to the buyer stating the reasons for the disapproval.
  If the prospective buyer is not provided with a written notice of disapproval within 14 calendar days, the
  prospective tenant is deemed approved. A notice of denial must also be sent to the selling mobile home owner
  without details unless the prospective buyer has given written consent to release details to the home owner.
              (d)     The mobile home owner or prospective buyer may seek judicial review of the landlord's refusal
  to lease to the prospective buyer. To continue with the denial of the lease, the landlord shall prove to the court
  that the disapproval was objectively reasonable and in good faith. If the court finds that the disapproval was not
  justified, the court shall order the grant of a site lease and award any actual damages, costs, and reasonable
  attorney fees to the mobile home owner or prospective buyer.
              (4)     A mobile home owner who wishes to sell a mobile home as allowed in subsection (3) shall
  notify the landlord of a proposed sale of the home.
              (5)     A landlord may not deny a mobile home owner the right to sell a mobile home on a rented
  space and may not require a home to be removed from the space solely on the basis of the sale of the home. A
  landlord may not limit the sale of a home on the basis of the home's age or physical condition or in any way
  misrepresent that the home may not be sold. A landlord may not require that a mobile home owner make any
  addition or improvement to the home as a condition of sale unless those additions or improvements
  are required by law.
                                                                 -6-                   Authorized Print Version – HB 889
****
68th Legislature 2023                                                                                             HB 889.1
          (6)      A landlord or an employee of a mobile home park may not act as agent or broker in the sale of
  a tenant's mobile home and may not exact a commission or fee from the sale of a home owned by a tenant.
  A landlord or employee of a mobile home park may not require that a tenant use the services of a particular
  dealer or broker when selling a home.
          (7)      A landlord may not place unreasonable, unfair, or discriminatory restriction on sale
  advertisement signs or on access to the mobile home park by prospective buyers, realtors, or
  other representatives of the mobile home owner and may not interfere with the mobile home owner's efforts to
  sell a mobile home.
          (8)      A landlord may not request, negotiate, or demand an option to purchase a mobile home on
  resale or termination unless the purchase price is determined by a qualified, neutral third party at the expense
  of the landlord or based on the first offer of a bona fide purchaser for value."
 12
          Section 5. Section 70-33-314, MCA, is amended to read:
          "70-33-314. Resident associations -- meetings. (1) The membership of a resident association may
  elect officers of the association at a meeting at which a majority of the members are present. All residents may
  attend meetings, but. Membership in a resident association is limited to mobile home owners who occupy their
  mobile homes and residents who have rent-to-own agreements for the mobile home in which they reside.
          (2)      the The landlord and the landlord's employees may not be members of and may not attend
  meetings unless specifically invited by the tenants' resident association. The landlord may not interfere with or
  prevent the attendance of an invitee at a resident association's meeting.
          (2)(3)   The landlord may not prohibit, or adopt any rule that prohibits, meetings by a resident
  association or tenants relating to:
          (a)      mobile home living; or
          (b)      the future plans for the mobile home park, including sale or change of use; or
          (c)      any other purpose related to mobile home park living, including but not limited to social or
  educational purpos