CVR 11-020-001 § 6

6.1 Notice. A park owner may not increase lot rent without first providing at least 60
days’ written notice to each affected leaseholder and the Commissioner. The notice shall
be provided on a form provided by the Department, and shall include:

(a) the amount, including any capital improvements surcharge;

(b) the effective date;

(c) a copy of leaseholders’ rights as provided at 10 V.S.A. §§ 6251 – 6253; and

(d) the percentage of increase from the current base lot rent.

6.1.1 No rent increase shall be given within six months before a park closure
notice is issued or at any time while the closure notice is in effect, and any
increased rent paid by a leaseholder during the six months prior to a park closure
notice shall be refunded within seven days of the closure notice, unless the
Commissioner has determined that the rent increase is needed to help remedy an
emergency situation affecting the health, safety or welfare of the residents.

6.2 Capital Improvements Surcharge.

6.2.1 Any portion of a lot rent increase attributable to recovery of the park
owner’s estimated Cost of Capital Improvements as defined in Section 2 hereof,
shall be considered a capital improvements surcharge, shall be limited as set forth
at 10 V.S.A. § 6251, and shall terminate at the time the actual costs have been
recovered.

6.2.2 If a lot rent increase is in any part due to a capital improvements
surcharge, the notice shall identify that portion of the proposed increase attributed
to the surcharge; the estimated cost of the improvements; and the proposed
duration of the surcharge to recover the estimated cost, stated in 12-month
increments.

6.2.3 The park owner, with the notice of lot rent increase, shall provide the
Commissioner with an affidavit stating the estimated cost of the capital
improvement, the expected date of completion of the improvements and the time
frame required for the surcharge to provide for recovery of the cost of the
improvements.

6.3 Lot Rent Dispute; Mediation.

6.3.1 The Department shall maintain a list of qualified professional mediators
compiled in cooperation with park owners and leaseholders in Vermont.

6.3.2 A majority of the affected leaseholders in a mobile home park may request
mediation of a proposed lot rent increase that is more than one percentage point
above the Consumer Price Index. Such request shall be made by delivering to the
Commissioner and the park owner, within 15 business days of the park owner’s
notice to the Commissioner of lot rent increase, a petition stating that the increase
is disputed and bearing the signatures of the affected leaseholders who so request,
and the name of the person who will represent the petitioners. However, if it is
demonstrated that the park owner failed to send the notice to the most current
address provided to the park owner by any leaseholder, and that notice to the
leaseholder was delayed for that reason, the petition shall be filed within 15
business days of the date on which it is demonstrated that every affected
leaseholder had received notice. Any refusal of a certified mailing of the
completed Lot Rent Increase Notice shall be deemed to be receipt. The park
owner shall bear the burden of demonstrating that the proposed increase is
reasonable.

6.3.2.1 A majority shall be determined by one vote per leasehold, though
no leaseholder shall have more than one vote.

6.3.3 The Department shall provide the list of qualified professional mediators
to the park owner and the petitioners’ representative. The petitioners’
representative and the park owner shall select a mediator from the list who is
mutually agreeable, and provide the mediator’s agreement to conduct the
mediation to the Commissioner. In the event that within 5 business days of
receipt of the list, the parties have not selected a mediator, the Commissioner shall
appoint a mediator from the list.

6.3.4 The park owner shall provide to the mediator and the petitioners’
representative all information supporting the proposed increase at least 5 days
before the initial mediation session. The park owner shall also provide any
documents or information requested by the mediator for the purposes of the
mediation. All mediation sessions shall be completed at least 10 days prior to the
effective date of the proposed lot rent increase.

6.3.5 Any resolution of the dispute shall be reduced to a written agreement
among the parties, setting forth the amount of any increase and its effective date,
together with all other matters agreed upon. The mediator shall detail the
outcome of the mediation in a report signed by all parties, and provide the same to
the parties and the Commissioner.

6.3.6 The selected or appointed mediator shall not have any direct or indirect
interest in the mobile home park and shall disclose any experience as a park
owner, or resident, along with any other circumstances that may create an actual
or perceived conflict of interest. The mediator shall not be competent to testify in
any subsequent action regarding the proposed lot rent increase, and the mediator’s
report shall not be admissible as evidence. The Department shall pay the fees for

mediation based on a schedule established pursuant to the Rules for Mediation
and Legal Services Payments and Consumer Price Index for Lot Rent Disputes,
Housing Division Rules, Part II.

6.4 Abatement; Civil Action. In the event mediation is unsuccessful, a majority of
the mobile home park’s leaseholders may file suit for abatement of an increase which is
unreasonable based upon the park owner’s total reasonable or documented expenses,
including the cost of debt service and allowance for a reasonable return on the
investment, as compared to similar investments. Any abatement action must be filed
within 30 days after the effective date of the lot rent increase. No abatement action may
be filed if the rent increase is effective following a completed sale of the mobile home
park which was contingent upon the increase, provided at least 6 months’ notice has been
given.