When Different Lot Rents Are Lawful: Applying the MHCRA’s “Same or Similar Category” Rule
The Pennsylvania Manufactured Home Community Rights Act (“MHCRA”) does not require every homesite in a manufactured home community to carry identical rent, fees, or charges. It does, however, require that rental charges and rules be uniformly applied to residents and prospective residents in the “same or similar category.” 68 P.S. § 398.4(b). But, what does the “same or similar category” mean? The MHCRA Standard For community owners and operators, the practical question is not simply whether Lot 12 costs more than Lot 13. The question is whether the community can identify, apply, and document a legitimate category-based reason for the difference. Section 398.4 of the MHCRA permits a community owner to establish fair and reasonable rules related to the health, safety, and upkeep of the community, provided they are not arbitrary or capricious. It also requires uniform application of “all rules or rental charges” to lessees or prospective occupants of the same or similar category. “Rental charges” should be treated broadly for compliance purposes. Accordingly, a community should not analyze lot rent in isolation. The category analysis should encompass the entire recurring economic package charged by the owner or operator: lot rent; amenity-related charges; water, sewer, trash, cable, internet, fuel,
