Screenshot Photo Minot Rep. Scott Louser speaks shortly before the final vote in the House on Senate Bill 2243, which was signed into law by Gov. Doug Burgum earlier this week.

In response to the outcry and complaints from residents of mobile home communities across the state, Gov. Doug Burgum has signed Senate Bill 2243 into law which lawmakers hope will provide more accountability from park owners. The act amends sections of the North Dakota Century Code to clarify court jurisdiction, adds additional disclosure requirements from license holders and penalties for violations.

Bismarck Sen. Dick Dever was the lead sponsor of the bill, and hoped these new provisions will fill in gaps in legislation from the 2021 session that did little to punish violations of the law by park operators. The North Dakota Department of Health issues the licenses for mobile home parks in the state and now has been given a role in ensuring compliance from operators who flout state law.

Shortly before the final vote in the House, Minot Rep. Scott Louser, a co-sponsor of the bill, called attention to the amount of time the Legislature, and the Industry, Business, and Labor subcommittees have spent on this issue over the last two sessions.

“Last session this issue was the one in IBL that had the most subcommittee hearings, and we thought we had it fixed,” Louser said, “Here we are again. I think the subcommittee met six times over five hours. We put a lot of work into this. I think we finally have a resolution.”

The House would go onto vote unanimously to send the amendments back to the Senate, who nearly passed it unanimously before sending it to the governor’s desk. The sole vote against coming from Sen. Jeff Magrum from Hazelton.

Giving the law teeth

The question of jurisdiction confused many tenants of mobile home parks who didn’t know who to turn to when issues with some park operators began cropping up. This question also confounded state departments and agencies who played hot potato with the problem when complaints came flooding in last year. The reality was that prior law provided no regulatory process, and forced tenants to pursue action through civil court, with any damages capped at $1,000.

Under the new amendments, tenants will now be allowed to pursue legal action through small claims courts in addition to civil proceedings in district court. While the legal action runs its course, tenants would be expected to still pay their rent and comply with park rules and regulations, but park owners will also be restricted from making further modifications to agreements in place. The amendment adjusts the $1,000 cap on damages to $2,500 while the max can’t exceed $10,000.

Tenants who pursue a civil action will now give the district court the power to assess appropriate penalties against park operators who have violated the law. Small claims court actions will not open operators up to potential sanctions by the Department of Health.

If a district court determines a violation has occurred, they can assess civil penalties capped at $5,000 thirty days after issuing a notice of non-compliance. The penalty is assessed without a hearing, with the license holder given a 10-day window to contest. The funds collected from penalty violations will be deposited into the Department of Health’s general operating fund.

Operators who have fallen out of compliance now will open themselves up to additional disciplinary action from the DOH and district courts, including suspension of their license. While suspended operators will be given a reasonable amount of time to correct the issues, any delay in remedying the situation brings with it compounding penalties.

Suspended license holders will be assessed a civil penalty for each day it is suspended, equal to half of the total rent listed on the rent roll for the park divided by the number of days in that month. Licenses will be reinstated once the holder has provided proof that each violation and civil penalty has been remedied and paid for. Failure to comply with a district court order could allow the license to be revoked completely.

For the duration of a license suspension, all park tenants will be allowed to continue to reside in the park, unless the department takes further disciplinary action that causes the community to be closed. Park agents will also be blocked from making modifications to park rules or regulations, tenant rental agreements, hike rental rates, or terminate a lease without cause for the duration of the suspension.

One aspect the new law doesn’t address directly is the lot rent hikes experienced by communities in Minot owned by Homes of America LLC that some tenants believe are excessive. That said, any month-to-month tenancy agreement will now require a 90-day notice before any rent increases come into effect. Tenants of Homes of America are still waiting for updated leases, forcing nearly all of them into the month-to-month agreements by default.

SB 2243’s final language includes increased transparency from those applying for and holding a license. Applicants for a license must give the department the name, address, and telephone number for the mobile home park managers and any individual who owns more than 20% ownership interest in the park or the entity that is pursuing the license. Tenants who submit a written request must be furnished a copy of the existing lease along with any modifications or amendments, and the contact information for the legal entity that owns the park within ten days of the request.

Kent French, the government liaison for the North Dakota Manufactured Home Assocation, was a vocal booster of the legislation, and says he plans to hold a townhall meeting in Minot in the coming weeks, to educate the tenants of Minot mobile home communities on the new law. French says the date and time for the townhall will be announced soon.