NEW YORK — A New York Attorney General's Office industry-wide investigation into the manufactured home park's rent-to-own practices has led to a settlement and reform including from some of the largest manufactured home park owners in the United States.
According to New York State Attorney General Barbara Underwood, eight major corporate owners of manufactured home parks have agreed to reforms and practices, some of which together own more than 100 manufactured home parks across New York.
“New Yorkers across the state are already struggling to afford a home – and these companies took advantage of that struggle, promising home ownership and instead leaving families with default, eviction, and financial devastation,” Underwood said in a statement. “This settlement holds these manufactured home park owners to account and provides rent-to-own tenants with much needed protections and relief.
"We’ll continue to work to further reform the industry and ensure all New Yorkers have the protections they deserve, no matter where they live."
Among the attorney general's allegations against the manufactured home parks is that with a "rent to own," "lease option" or "option to purchase" the title to the manufactured home does not pass when the contract is signed and does not guarantee ownership of the home at the end of the rental period.
The settlement includes major reforms and reimbursing tenants for down payments and other costs as well as allowing tenants to rescind their option to purchase agreement, Underwood's office said.