Rent increase; justified additional rent increase for allowed expenses

# (a)

A community owner may increase rent under this section, in addition to a rent increase under § 7052A of this title, if the community owner is in compliance with all of the following:

# (1)

Sections 7051A and 7052A(b)(2) of this title.

# (2)

In the notice of the rent increase, the community owner explains that the community owner is providing written documentation of the actual cost of each of the allowed expenses by doing all of the following:

a. Providing a website where the documentation may be accessed and downloaded.

b. Making paper copies available for review in the manufactured home community’s management office.

c. Upon request of a homeowner, providing paper copies of the documentation at no cost.

# (b)

For purposes of this section:

# (1)

“Additional rent increase” means a rent increase under this section, that is in addition to the base rent increase.

# (2)

“Aggregate total of allowed expenses” means the total dollar amount of all of the allowed expenses for the manufactured home community for a 12-month period.

# (3)

“Allowed expenses” mean all of the following for the manufactured home community:

a. Taxes.

b. Insurance.

c. Utility charges or service.

d. Onsite employee costs, such as benefits and employment taxes, but not salaries or wages.

# (4)

“Anniversary date” means the date of the most recent base rent increase.

# (5)

“Base rent increase” means a rent increase under § 7052A of this title.

# (6)

“Increase of the aggregate total of allowed expenses” means the difference between the aggregate total of allowed expenses for the previous 12-month period and the aggregate total of allowed expenses for the prior 12-month period.

# (7)

“Onsite employee” means an employee whose primary job responsibilities are directly related to the operation and management of the manufactured home community.

# (8)

“Previous 12-month period” means the most recent 12 months before the notice of the rent increase under this section.

# (9)

“Prior 12-month period” means the most recent 12 months before the beginning of the previous 12-month period.

# (10)

“24-month CPI-U” means the 24-month CPI-U as calculated under § 7052A(c)(1) of this title.

# (c)

If a community owner is increasing rent under § 7052A(c)(2) of this title, the community owner may include an additional rent increase if the increase of the aggregate total of allowed expenses increased by a percentage that is larger than the 24-month CPI-U.

# (d)

On or after the second anniversary date of the base rent increase under § 7052A(b)(1)c. or (d), the community owner may add an additional rent increase if the increase of the aggregate total of allowed expenses increased by a percentage that is larger than the 24-month CPI-U.

# (e)

An additional rent increase is calculated by dividing the increase of the aggregate total of the allowed expenses by the number of recorded lots in the manufactured housing community and adding that sum to the base rent increase under § 7052Aof this title.