Legislative Analysis
Phone: (517) 373-8080
MOBILE HOME COMMISSION ACT AMENDMENTS
http://www.house.mi.gov/hfa
House Bill 4298 as introduced Analysis available at
Sponsor: Rep. John D. Cherry http://www.legislature.mi.gov
House Bill 4299 as introduced House Bill 4302 as introduced
Sponsor: Rep. Bronna Kahle Sponsor: Rep. Mike Mueller
House Bill 4300 as introduced House Bill 4303 as introduced
Sponsor: Rep. TC Clements Sponsor: Rep. Angela Witwer
House Bill 4301 as introduced House Bill 4304 as introduced
Sponsor: Rep. Tim Sneller Sponsor: Rep. Kevin Hertel
Committee: Regulatory Reform
Complete to 3-22-21
BRIEF SUMMARY:
Except for HB 4303, the bills would amend the Mobile Home Commission Act, which provides
for the regulation of mobile homes in mobile home parks or seasonal home parks by the
Department of Licensing and Regulatory Affairs (LARA) and the Manufactured Housing
Commission. (HB 4303 would add a new section to the Truth in Renting Act.) Significant
changes proposed by the bills include the following:
• Revising the license fees to own a mobile home park or seasonal mobile home park and
decreasing the term a license is valid from three years to two years. (HB 4298)
• Creating a provisional license for park ownership by a person who has not previously been
licensed and allowing LARA to issue a license to a nonresident or a foreign corporation if
certain conditions are met. (HB 4298)
• Prohibiting an owner of an unlicensed mobile home park from collecting rent or taking
action for possession against residents and allowing a tenant to bring an action against an
owner for a violation. (HB 4298)
• Revising the rules required to be included in the mobile home code. (HB 4300)
• Requiring LARA to provide written notice of a license denial and allowing an applicant to
appeal the denial. (HB 4299)
• Requiring a park owner to provide LARA with certain documentation within 30 days after
selling the park. (HB 4299)
• Requiring LARA to employ an appropriate number of employees as required to implement
the act and departmental rules. (HB 4301)
• Creating new administrative fines for violations of the act and for owning an unlicensed
mobile home park or seasonal mobile home park. (HB 4301)
• Requiring LARA to publish on its website certain information on mobile home and
seasonal mobile home parks. (HB 4301)
• Requiring mobile home lease agreements to comply with the Truth in Renting Act and
tenants and prospective tenants to be offered a lease or a rental agreement of at least one
year. (HBs 4302 and 4303)
House Fiscal Agency Page 1 of 14
DETAILED SUMMARY:
House Bill 4298 would amend requirements for licensure under the Mobile Home Commission
Act. Section 16 now prohibits the operation of a mobile home park or seasonal home park
without a license. The bill would replace the term “operate” with “own.”
Licensure
The bill would provide that if LARA determines that an owner of a mobile home park or
seasonal mobile home park (“park”) is not licensed, an administrative fine of up to $100,000
must be imposed after notice and a hearing provided under the Administrative Procedures Act.
A person who has applied to LARA for a license would not be in violation of operating without
a license unless LARA denies the license application and the person has exhausted an
administrative review by LARA and the commission.
An unlicensed owner of a park would be prohibited from collecting rent or taking any action
for possession against residents. If the tenant pays the utility service fees directly to the utility
service provider, the tenant would have to continue to do so. For any period of time that a park
is unlicensed, the owner could not recover rent or fees. A tenant could bring an action on his
or her own behalf for a violation of these prohibitions. Remedies would include an injunction
by a court of record prohibiting further violations, actual damages incurred by the tenant, and
punitive damages as determined by a jury or the court.
Under the bill, a license issued by LARA on or before December 31, 2021, would expire on
December 31, 2023. Beginning January 1, 2024, the term of a license would be two years
(decreased from the current license term of three years).
Currently, LARA is required to issue a license only if all requirements listed in the act are met.
The bill would require LARA to issue the license within 60 days of receiving the license
application if all of the listed requirements were met. The listed requirements would be as
follows:
• A current requirement is that the applicant submit a complete application. The bill would
add that the completed application must meet all of the following:
o Show the financial ability of the applicant to operate and maintain the park in
accordance with financial standards promulgated by rule by submitting required
documentation demonstrating the applicant’s financial viability.
o Affirm the applicant’s ability to comply with the applicable laws, rules, and state
regulations.
o Affirm that the applicant, any general partner, managing member, subsidiary, affiliate,
or other person controlled by or under common control with the applicant does not have
a record of unjustifiable rent increases within the past seven years and either has not
been denied licensure for a park or had a license to own a park suspended, canceled, or
revoked by a state agency within the past seven years or demonstrates that a suspended,
canceled, or revoked license has since been reinstated or reissued.
o Affirm that the applicant and any person with decision- or policy-making authority for
the applicant, or who is responsible for the applicant’s day-to-day operation of the park,
has not been convicted of a crime involving fraud, deceit, or nonfeasance within the past
seven years.
House Fiscal Agency HBs 4298 to 4304 as introduced Page 2 of 14
• Certifications and recommendations of appropriate agencies and local governments be
submitted to and approved by LARA. (This is a current requirement.)
• Pay the applicable fee. (This is a current requirement.)
• The park was approved as being in substantial compliance after its most recent inspection.
(This is a current requirement.)
• Beginning January 1, 2023, the applicant has been previously issued a provisional license
or a license to own the park.
Under the bill, LARA could require a signed affidavit from the applicant attesting to the
veracity of the information required to be included in it and would be required to deny the
application if those requirements were not met.
LARA could also conduct, to determine whether an applicant is eligible for a license, a criminal
background check using the Law Enforcement Information Network (LEIN) or the Internet
Criminal History Access Tool (ICHAT).1
Provisional license
A provisional license would entitle the holder to all of the rights, privileges, requirements, and
penalties applicable to the holder of a mobile home park or seasonal mobile home park license
issued under the act. Beginning January 1, 2023, a provisional license would be required before
taking ownership of a park by any person that has not been previously licensed under section
16; the applicant would have to be issued a provisional license before taking ownership of a
park. A provisional license would be valid for two years and could not be extended or renewed.
LARA would be required to issue a provisional license if the applicant submits a complete
license application, obtains all other required government certifications and approvals, and
pays the required fee.
Within one year of issuing a provisional license, LARA would have to inspect and identify any
violation of the act regarding the ownership or operation of a park by the owner of that park.
LARA would have to notify the park owner of any violation found during the inspection and
provide a notice as required under the act.
License fees
The bill would revise the license fees for owning a mobile home park or seasonal mobile home
park as follows:
Until September 30, 2021:
• $225 for a mobile home park, plus an additional $3.00 for each home site in excess of
25 home sites.
• $120 for a seasonal mobile home park, plus an additional $1.50 for each home site in
excess of 25 home sites in the park.
1
Note: LEIN and ICHAT provide criminal history information based on a person’s name and contain Michigan data.
LEIN access is restricted, and it is not directly accessible by LARA. For a criminal background check to search
national databases, a statute must specifically require fingerprints to be provided to the Michigan State Police for
forwarding to the FBI and authorize the FBI to conduct such a search. Information provided by a national criminal
history check may be distributed only as provided under state and federal law.
House Fiscal Agency HBs 4298 to 4304 as introduced Page 3 of 14
The bill would delete a current provision allowing for a lesser amount established under
section 9(5).
Beginning October 1, 2021:
• $350 to own a mobile home park, plus an additional $4.75 for each home site in excess
of 25 home sites in the park.
• $200 to own a seasonal mobile home park, plus an additional $2.25 for each home site
in excess of 25 home sites in the seasonal mobile home park.
Beginning December 31, 2023:
• $450 to own a mobile home park, plus $5.25 per each home site in excess of 25.
• $250 to own a seasonal mobile home park, plus $2.75 per home site in excess of 25.
Beginning January 1, 2023:
• $450 for a provisional license to own a mobile home park, plus $5.25 per home site in
excess of 25 or any lesser amount established under section 9(5).
• $250 for a provisional license to own a seasonal mobile home park, plus $2.75 per
home site in excess of 25 or any lesser amount established under section 9(5).
Nonresident license
LARA could issue a license to own a park to a nonresident if the nonresident complies with
the act’s requirements. However, a license to own a park could not be issued to a foreign
corporation unless it is authorized to do business in Michigan by LARA, files with the
commission a consent to service of process in a commission-prescribed form, and complies
with all other requirements of the act.
Rule promulgation
No later than January 1, 2023, and after consultation with the commission, legal aid groups,
consumer advocates, representatives of the manufactured housing industry, residential groups,
local governments, and other interested parties, LARA would have to revise and promulgate
rules governing the licensure of owners of mobile home parks and seasonal mobile home parks.
The rules would have to include standards to meet the licensing requirements of section 16.
Further, the bill would delete a requirement that the commission promulgate rules addressing
specified topics and procedures. This provision would be added to a new section 16b proposed
by House Bill 4299.
MCL 125.2316
House Bill 4299 would provide that, notwithstanding any provision of law to the contrary, if a
license application is denied under section 16 (HB 4298), LARA would be required to give
written notice by registered mail stating reasons for the denial and the applicant’s right to
appeal the denial to the commission; an appeal could be requested not later than 15 business
days after the U.S. Postal Service confirmed delivery or the attempted delivery of the denial.
The commission would have to hold a hearing and, within 120 days of the appeal, issue a
determination to LARA. If the commission’s determination differed from LARA’s decision,
the commission would have to issue a written opinion stating the reasons for the determination,
House Fiscal Agency HBs 4298 to 4304 as introduced Page 4 of 14
including the applicable statutory provision or departmental rules it relied on in making that
determination.
Upon receipt of the commission’s determination, and based on the commission’s licensure
determination or rejection of the applicant’s appeal, LARA would have to issue or decline to
issue the license. If a determination is not issued within 120 days of the appeal, LARA would
have to consider the commission’s failure to issue a determination as a determination to issue
the license unless the commission meeting was unable to be held due to a lack of a quorum.
A licensed owner must notify LARA within 30 days of a change in ownership or a change in
the licensed owner’s mailing or business email address.
Within 30 days of the sale of a park, the owner would have to provide LARA with a copy of
the sales contract or any recorded deed and notify the department of all of the following:
• The identity of the buyer, including the buyer’s contact information.
• The date of the sale.
• Any change in the seller’s contact information.
Rule promulgation
A provision in section 16 (amended by HB 4298) requiring the commission to promulgate
rules, and the list of what the rules must address, would be moved to the new section 16b, but
would require LARA, in consultation with the commission, to promulgate the rules.
Proposed MCL 125.2316b
House Bill 4300 would amend section 5 of the act, which now requires LARA, after consulting
with representatives of the manufactured housing industry and other interested parties, to
promulgate the mobile home code subject to section 4. The mobile home code is required to
consist of rules to govern various aspects of mobile home parks, for example, licensure and the
business, sales, and service practices of mobile home dealers.
The bill would amend section 5 to require LARA to promulgate the mobile home code by
December 31, 2022, and to revise the rules required to be included in the code as follows:
• Include in the standards for the construction of mobile home parks standards for fire
hydrants, road signs, and community buildings.
• Expand the current rule regarding the business practices of mobile home dealers to include
requiring advertisements to contain contact information and place parameters on dealer
sales financing practices and terms, claims, and conditions to the sale of a mobile home.
• Delete the current rule regarding the licensure and regulations of mobile home installers
and repairers and replace it by expanding a rule regarding the business practices of mobile
home installers and repairers to include training and licensing requirements for individuals
who install and service mobile homes in parks.
The bill would add additional rules to govern the following:
• Inspections, including audit inspections of parks.
• Retailers and retailers’ agents practices and prohibited practices, including violations of
the act and its rules, acting on an unlicensed person’s behalf, allowing a license to be used
House Fiscal Agency HBs 4298 to 4304 as introduced Page 5 of 14
by an unlicensed person, disclosure of retailers’ interest to third parties, and disclosure of
retailers’ interest in transactions.
• The hearing process for persons aggrieved by a local government’s decision in relation to
a park licensed under the act.
In addition, the bill would provide that all administrative rules promulgated under the act by
LARA or the commission and not rescinded on the bill’s effective date are authorized, valid,
and enforceable and would remain in effect until December 31, 2022, or the date on which
LARA promulgates administrative rules under this provision, whichever is earlier.
MCL 125.2305
House Bill 4301 would require LARA to employ an appropriate number of employees with
the appropriate qualifications as required to implement and enforce the act and related
departmental rules. This would include staff to conduct community inspections, review
financial information, manage the licensing process, and investigate potential violations of the
act and rules. In addition, LARA would have to report to the commission on the expenditure
of all fees collected under the act, at every meeting of the commission, instead of quarterly as
currently required.
Currently, after consulting with and considering comments from representatives of the
manufactured housing industry and other interested parti