Manufactured homeowners still protesting rent gouging

(The Center Square) – Manufactured home communities offer affordable housing options for people on fixed incomes, but in Pennsylvania, homeowners say “predatory” lot rent increases threaten their way of life.

Two bills that could resolve the issue have lawmakers at odds and expressing skepticism about their prospects.

Manufactured homes are constructed in factories and assembled on-site. Residents typically own the home, but not always the land on which it sits. The federal government’s $225 million grant program to promote manufactured home affordability isn’t helping, either.

Of the estimated 5,900 households in 2,300 manufactured home communities, or MHCs, across the commonwealth, approximately 30% are likely to be renters, according to a report by the Federal Reserve Bank of Philadelphia .

Senate Bill 86, sponsored by Sen. Judy Schwank, D-Reading, would amend Act 261 by creating a cap on yearly land increases tied to the Consumer Price Index.

House Bill 805, introduced by Rep. Liz Hanbidge, D-Blue Bell, would require six months’ notice of a proposed rent increase and give tenants an avenue to dispute increases that exceed the inflation rate.

Rep. Mark Gillen, R-Reading, continues to advocate for advancing the bills, but other legislators oppose rent caps as a solution.

As reported in the Reading Eagle , Sen. Tracy Pennycuick, R-Red Hill, said rent control proposals defy the state constitution.

The Pennsylvania Manufactured Housing Association does not support the bills, either, arguing that rent increases are driven by supply and demand and are necessary to maintain and operate the communities.

Residents say differently; their rents are increasing at disproportionate rates, while maintenance is falling behind.

A recent conference hosted by the Federal Reserve Bank of Philadelphia along with the Pew Charitable Trusts Housing Policy Initiative explored these challenges, strategies and innovations in the manufactured housing sector.

One panel gave MHC members the opportunity to provide their perspectives.

Bob Besecker is cochair of the Rent Issues Committee of Douglass Village. In 2022, his community was sold to an out-of-state private equity firm and his rent increased by $75 a month for two years in a row. He has since organized the Coalition of Manufactured Home Communities of Pennsylvania which has grown to over 40 members.

The typical 55-plus manufactured home community, he said, is made up of 44% single residents of which nearly 36% are women – most of whom are widows. Vietnam era veterans or their widows make up 37% of the households, and male veterans account for 42%.

After a decade of moderate rent increases, Besecker explained, his community in Douglassville and others saw successive increases of 13% and 15%, and one Allentown community recently had an increase of 51%.

He’s spoken to residents who, due to ongoing rent hikes, have cut back on their medication or food, or may lose their homes altogether.

Besecker told The Center Square that corporate landowners have lobbied lawmakers against the proposals. Many residents not only fear the uncertainty of their annual rent increases, but some also worry about retribution if they become involved in the coalition.

He knows when the current legislative session ends in a few months, without further action, the pending bills will be dead. However, he says they will continue to beat the drum.

“We are not going anywhere,” he said.

Schwank, via email statement, said it is really a simple issue.

“You can stand with seniors, veterans, people with disabilities, and hardworking folks who simply want a safe, affordable low-maintenance place to live, or you can stand with the out-of-state companies seeking big profits off the backs of Pennsylvanians,” she said.

Schwank said she’s been very clear that what’s happening in Douglass Village and elsewhere is price gouging.

“The people I’ve talked to say they're paying more and receiving fewer services and less upkeep,” she said.

“Senate Republicans say they aren't willing to consider SB 861 but claim to be sympathetic to the issues raised by manufactured homeowners,” she added. “I’m eager to hear their proposal and happy to work with any lawmaker willing to make a good-faith effort to help manufactured homeowners."

Delaware recently passed House Bill 212(S) , capping the amount a landowner can increase lot rent from year to year under certain conditions.