HOUSE BILL 159

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Joni Marie Gutierrez

AN ACT

RELATING TO PROPERTY; PROVIDING MOBILE HOME PARK RESIDENTS WITH PROTECTION AGAINST EXCESSIVE RENT INCREASES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Mobile Home Park Act is enacted to read:

     "[NEW MATERIAL] RENT INCREASE--NOTICE.--

          A. When a landlord proposes to increase rent more than one time in a six-month period, more than two times in a two-year period or more than five percent above the immediately previous rent, the landlord shall provide written notification of a rent increase to the affected residents no later than sixty days before the effective date of the increase. The notice shall include:

                (1) the amount of the rent increase, including any portion of the increase that is attributable to capital improvements of the mobile home park;

                (2) the effective date of the rent increase;

                (3) the specific reasons for the rent increase;

                (4) the names and addresses of all affected residents; and

                (5) a copy of the resident's rights pursuant to this section and Section 2 of this 2011 act.

          B. If the landlord fails to notify the residents of a rent increase as required by this section, the rent increase shall be unenforceable." 

     SECTION 2. A new section of the Mobile Home Park Act is enacted to read:

     "[NEW MATERIAL] RENT INCREASE DISPUTE--MEDIATION--CIVIL ACTION.--

          A. If a majority of the residents affected by a rent increase dispute the increase, the residents may submit the dispute for mediation if, no later than thirty days before the effective date of the rent increase, the residents provide the landlord with the name of the residents' representative and a written statement that they dispute the rent increase and are requesting mediation.

          B. The mediation shall be performed by a professionally certified mediator approved by the landlord and the residents' representative. The cost of the mediation services shall be divided equally between the landlord and the residents. 

          C. No later than two business days before the initial mediation session, the landlord shall provide to the mediator and the residents' representative all documents and information that the landlord considers relevant to support the rent increase. The landlord shall have the burden of providing information to show that the rent increase is reasonable.

          D. Any resolution of the dispute shall include an agreement regarding the amount and effective date of the rent increase. If the dispute is resolved, the landlord shall not be required to provide any additional notice in order for the rent increase to take effect pursuant to the resolution.

          E. If the landlord and residents are unable to resolve a dispute over a rent increase, an action for abatement of some or all of the rent increase based on a claim that the increase is clearly excessive may be initiated by a majority of the affected residents by filing a complaint in district court in the judicial district in which the mobile home park is located no later than two business days before the effective date of the rent increase.

          F. The residents shall pay the rent, including the rent increase, to the landlord on or before the date the rental payment is due. The landlord shall deposit the disputed portion of the rent increase with the clerk of the court pending an order by the court.

          G. For the purposes of this section, a clearly excessive rent increase is an increase that is unreasonable based upon the landlord's total reasonable or documented expenses, including consideration of debt service, and a reasonable return to the landlord on investment with consideration being given to comparable investments.

          H. If the court finds that the rent increase is clearly excessive, the court may order abatement of the proposed rent increase in full or in part."

     SECTION 3. Section 47-10-19 NMSA 1978 (being Laws 1993, Chapter 147, Section 5) is amended to read:

     "47-10-19. RENT [INCREASE] DISCLOSURE REQUIREMENT.--

          [A. A landlord shall fully and accurately disclose in writing to a resident an increase in rent. The disclosure shall be provided to a resident at least sixty days prior to implementation of an increase in rent.

          B.] Upon receiving a written request from a resident or prospective resident, a landlord shall fully and accurately disclose in writing a current schedule of the range of rental rates in the mobile home park. The landlord shall include the date of preparation on the face of the schedule of rental rates."

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