Massachusetts Manufactured Housing Association 

PO Box 73 

Halifax, MA 02338-0073 

508-460-9523 

Comm. of MA Joint   Committee on Housing 

Opposition to the Proposed Amendments to Chapter 140 of the General Laws SECTION 1 and SECTION 2 or H.1327

H.1327, as described in SECTION 1 and SECTION 2, introduces significant changes to the regulation of manufactured housing communities, particularly with regard to the authority of local boards and the setting of use and occupancy payments. While the intent behind these changes may be to protect tenants, there are several concerns and issues that need to be addressed. Here is an opposition to these sections:

1. Potential for Overregulation: The creation of separate boards at the city or town level, as proposed in SECTION 2(a), introduces the risk of overregulation. Each municipality may have different interpretations of what constitutes a fair net operating income and appropriate use and occupancy payments. This could create a patchwork of regulations that are confusing for both community owners and residents. SECTION 1 provides a description of authority; local Boards of Health are and have been the governing bodies of manufactured housing communities in MA. The boards of health, which are overburdened in many cities and towns, would then have to coordinate with new boards with no experience in manufactured housing.

2. Financial Burden on Community Owners: The limitations placed on the ability of manufactured housing community owners or operators to increase use and occupancy fees (SECTION 2(e)) may unfairly burden them financially. It's important to acknowledge that community owners have their own operational costs, including property taxes and maintenance expenses. Imposing strict limitations on fee increases without considering these factors could discourage investment in these communities and lead to neglect of essential maintenance.

3. Lack of Due Process: Section 2(g) suggests that Chapter 30A will apply to the board as if it were an agency of the Commonwealth. This could raise concerns about the due process rights of manufactured housing community owners and operators, as it might not provide them with adequate legal recourse in case of disputes or adverse decisions.

4. Lack of Flexibility/Restrictive Rent Control: Section 2(e) imposes strict limits on rent increases for manufactured home residents, linking them to the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). While controlling rent hikes is commendable, this formulaic approach may not consider factors specific to individual communities, such as property values or maintenance costs. MA already provides for rent control in communities that choose to adopt it. It could lead to underinvestment in housing communities, potentially diminishing their quality over time.: The proposed legislation appears to tie the hands of community owners by restricting their ability to make necessary adjustments to fees and rents. The reliance on the Chained Consumer Price Index (C-CPI-U) may not accurately reflect the real cost increases associated with operating a manufactured housing community. This lack of flexibility could result in financial difficulties for community owners and, ultimately, negatively impact the quality of living conditions for residents.

5. Inadequate Consideration of Fair Net Operating Income: Section 2(f) outlines factors that the board should consider in determining whether manufactured housing accommodations yield a fair net operating income. However, the proposed language lacks clarity on how these factors should be weighted and applied. This ambiguity may lead to inconsistent interpretations and unfair outcomes.

6. Enforcement Challenges: The creation of additional boards with enforcement powers (SECTION 2(c)) could lead to bureaucratic inefficiencies and legal disputes. The introduction of fines for violations (SECTION 2(d)) without clear guidelines for what constitutes a violation may result in arbitrary enforcement and unjust penalties.

7. Lack of Clarity and Consistency: The legislation lacks clear and consistent definitions and criteria for determining fair net operating income (SECTION 2(f)). This ambiguity could lead to disputes and legal challenges, further burdening both community owners and residents.

8. Limitation on Personnel: Exempting the personnel of the board from Chapter 31 of the General Laws (SECTION 2(j)) raises concerns about accountability and transparency in the operation of these boards. It's essential to ensure that any individuals involved in the regulation of manufactured housing communities are subject to appropriate personnel regulations.

In conclusion, while the intentions behind H.1327 may be to protect the interests of manufactured housing community residents, the proposed changes in SECTION 1 and SECTION 2 raise several concerns related to overregulation, financial burden on community owners, lack of flexibility, enforcement challenges, lack of clarity, and personnel accountability. It is crucial to strike a balance between protecting the rights of tenants and ensuring the continued viability and sustainability of manufactured housing communities. Amendments and further consideration are needed to address these concerns adequately.

Melissa Caron, Executive Director 

www.MassMHA.org  | MassMHA@gmail.com