Question: I’m trying to clarify if an existing and lawful utility charge (e.g., sewer or trash), is increased by the provider, do we have to give advance notice of the increase to the residents before we can pass it through?

For example, if the garbage provider increases its rates from $32/mo to $34/mo for the same service, is management required to notify the residents in advance? And if no advance notice is required, but we get the increase from the provider after already passing through the lower charge, may we recoup the shortfall by sending out a “catch-up” notice to the residents?

By:  Rebekah Near, CEO, Orca Information, Inc.

Last article I wrote was titled, A COMMON MISTAKE WHEN DENYING APPLICANT COULD COST YOU THOUSANDS.  The focus of the topic was on giving your applicant who does not qualify for the unit the ADVERSE ACTION LETTER which is sometimes referred to as a CONSUMER RIGHTS LETTER AKA FCRA Summary of Rights.  One knowledgeable, sharp and concerned Manufactured Park Manager sent me some good questions. Evidently there is some confusion as to what information is required in an Adverse Action letter.  Here is one of the questions I received and my reply.  

Question: I’ve been giving the FCRA Summary of Rights as part of the Adverse Action letter to applicants for years until my supervisor told me not to.  I recently forwarded your advice directly to my employer and supervisor, who says, “There is no current requirement to give an applicant the FCRA Summary of Rights along with the reasons for adverse action”. 

Answer:  First, I am not an attorney.  It is wise to consult an attorney on these matters.  That is just what I did.  Not only did I read advice from an attorney but I also researched deeply the FCRA wording for clarity.  Let’s read what this attorney from the FTC Division of Privacy and Identity Protection advises.  She is addressing landlords.  She writes the following:

What if the information in a consumer report (tenant screening report) leads you to deny housing to an applicant?  Under the  Fair Credit Reporting Act (FCRA), you must inform applicants in what’s called an adverse action notice. That’s true even if the report was only a minor factor in your decision. An adverse action notice tells people about their rights to see information being reported about them and to dispute inaccurate information. It’s a best practice to provide that adverse action notice in writing because it benefits both you and the applicant. Written notices give you proof of compliance with the law. They also better enable applicants to assert their rights to request a copy of the report from the consumer reporting agency (tenant screening company) and to dispute any mistakes.

The attorney now quotes the FCRA:

Fair Credit Reporting Act 15 U.S.C § 1681

A summary of rights is required to be included with agency (tenant screening company) disclosures (adverse action notices).

A consumer reporting agency (tenant screening company) shall provide to a consumer (landlords applicant), with each written disclosure by the agency (tenant screening company) to the consumer (landlords applicant) under this section –

(A) the summary of rights prepared by the Bureau (credit bureau) under paragraph (1);

(B) in the case of a consumer reporting agency (tenant screening company) described in section 603(p), a toll-free telephone number established by the agency (tenant screening company) at which personnel are accessible to consumers during normal business hours;

(C) a list of all Federal agencies responsible for enforcing any provision of this title, and the address and any appropriate phone number of each such agency, in a form that will assist the consumer in selecting the appropriate agency;

(D) a statement that the consumer may have additional rights under State law, and that the consumer may wish to contact a State or local consumer protection agency or a State attorney general (or the equivalent thereof) to learn of those rights; and

(E) a statement that a consumer reporting agency (tenant screening company) is not required to remove accurate derogatory information from the file of a consumer, unless the information is outdated under section 605 or cannot be verified.

End of the FTC attorneys advice.

______

It appears the Park Manager who submitted this question is correct when she sent denied applicants the Adverse Action letter and included The Summary of Their Rights.  If this Park Manager were my employee, I would be proud I had the foresight to hire someone who deeply cares about the company for which they work, stays educated and remains aware of the ever-changing, laws.  What do you my readers think?  I would love to hear from you.

To read more about the FCRA law pertaining to Adverse Action letters including Summary of Rights, go to:  Consumer Financial Protection Bureau, Rules & Policy.  Also, the FTC, Summary of Your Rights. 

Rebekah Near is the owner operator of Orca Information, Inc an Employment and Tenant screening company serving the Pacific Northwest and the Nation.  The web address is www.orcainfo-com.com  She is not an attorney and does not give legal advice.  You may send your questions to her at rebekahn@orcainfo-com.com.    

Landlords may be liable for discrimination if they harass or allow their leasing staff, managers, and other agents to harass tenants on the basis of race, etc. Recent cases pose the controversial question of whether landlords can also be liable for the harassment committed by their tenants. The two federal courts that had specifically addressed this issue until now have reached conflicting results. In 2023, another federal court weighed in on the question of tenant-on-tenant liability.

HUD recently charged a Montana landlord and property manager for retaliating against a tenant for exercising her fair housing rights. The retaliatory behavior included coercion, intimidation, threats, or interference in violation of Section 818 of the Fair Housing Act. The Fair Housing Act prohibits retaliating against anyone for exercising their fair housing rights, as well as coercing, intimidating, threatening, or interfering with someone’s exercise of those rights.

Question  A:  We have a Tenant who has refused to fix the water leaks within their mobile home. The park owner pays for the water and there have been significant cost increases due to the leaks. 

The Lease is the MHCO Lease from 2003 and states under Tenant Agreements F. Maintain the Home in accordance with conditions set forth in Paragraph 12.A(8)(a) through (e) which states in (d) all electrical, water, storm water drainage and sewage disposal systems in, on, or about the Home, are in operable and safe condition, and that the connections to those systems have been maintained.

What recourse do we have in this situation?

Question B:  We have a tenant whose sewage line is routinely blocked.  We have had a plumber our numerous times and unclogged resident’s sewage line.  We have repeatedly told this resident that they cannot put certain items in the toilet - and yet they continue to do so and block the sewage line.  Does this constitute grounds for eviction?  At what point is the resident responsible for the sewage line and the items they are putting in the toilet?