A new state ombudsman could issue binding orders and block rent increases
Pennsylvania wants to give manufactured home residents an ombudsman who can freeze rent hikes - and lenders financing manufactured housing should take notice.
Senate Bill 1446, introduced October 26 by Senators Steve Santarsiero and Jay Costa, would overhaul the state’s manufactured home community protections. The bill consolidates and replaces the Manufactured Home Community Rights Act of 1976 and was referred to the Senate Urban Affairs and Housing Committee the same day.
The bill creates a new Office of Manufactured Home Ombudsman inside the Department of Community and Economic Development. This is not an advisory role. The ombudsman would investigate complaints, then issue decisions within 21 days that are “final and binding on all parties” - enforceable through the courts.
Rent disputes get special treatment. A complaint about a proposed increase triggers an automatic stay. If found unreasonable, the increase does not go into effect, and the community owner must refund or credit any overpayment. The reasonableness test weighs comparable community rents, Consumer Price Index changes, the owner’s financials, and whether the proposed rent exceeds what the market would produce “when both parties have an equal bargaining position.”
Entrance and exit fees are banned. Installation fees are capped at actual cost.
Before accepting any deposit or rent, community owners must disclose all charges, utility obligations, three years of rent history for the space, and any government citations requiring corrective action. Undisclosed charges become “void and unenforceable.” Prospective lessees get five days to cancel.
Community sales trigger a 30-day notification to residents and the Pennsylvania Housing Finance Agency. Closures carry heavier obligations: residents get at least 180 days before vacating, and owners pay relocation costs up to $4,000 for a single-section home and $6,000 for a multi-section home, adjusted for inflation. Residents unable to find a replacement site receive at least $2,500 or the appraised value, whichever is greater.
Resident associations representing at least 25% of spaces can make a purchase offer. The bill requires the owner to “negotiate in good faith.”
Appeals go to a new five-member Manufactured Home Hearing Board, which must rule within seven days.
For lenders and servicers, this bill would reshape the collateral environment for manufactured home loans. Binding rent review, fee bans, and mandatory relocation payments all affect how stable that ground lease is beneath the home you financed.
SB 1446 has been introduced and referred to committee. No hearings have been scheduled. It would take effect 60 days after enactment.
