As most in the community are probably aware, the annual rent on the land portion of the lease has been increased as of July 1st. You may not be aware of how that increase has been determined.
Each year The Consumer Price Index (CPI) for the area denotes what has happened for the past year. The rate can go up or down. Last year the rate was in excess of 5%. New York State has a cap on the amount you can raise a home in a manufactured home community and that cap is 3%. Last year the rent increased 3%.
The CPI for this year is 2.9%. Hometown raised the rent based on the CPI to 2.915%. I have spoken to management which confirmed the site where NY denotes the CPI but didn’t have an explanation as to how Hometown calculated it at 2.915%. Tara Edmonds, our regional VP is looking into it and was expected to get back to me with the information by Friday. As soon as I hear from her, I will pass along the information. If their information is correct, it is as it is. If there is an error, no matter how small, the residents should be entitled to have the rate corrected. All future rates compound on the previous year.
The following are the sites of interest:
Consumer Price Index (CPI) : Click Here
New York State Regulations for Manufactured Home Parks: Click Here: NY State rules for manufactured Homes
RESPONSE FROM TARA EDMONDS:
If you go into the link that is below and work through the website ( I sent you the steps below in yellow) you will see the chart in my email with CPI for February 2023 & February 2024 CPI, we take the 319.295 and 328.606 and place them in our system for the unrounded calculation of the CPI. Each increase is reviewed by an attorney to verify we are following the correct CPI calculation based off the lease agreement, so the increases that we sent out are correct-
| CPI for All Urban Consumers (CPI-U) | |||||||||||||
| Original Data Value | |||||||||||||
| Series Id: | CUUR0000SA0 | ||||||||||||
| Not Seasonally Adjusted | |||||||||||||
| Series Title: | All items in New York-Newark-Jersey City, NY-NJ-PA, all urban consumers, not seasonally adjusted | ||||||||||||
| Area: | New York-Newark-Jersey City, NY-NJ-PA | ||||||||||||
| Item: | All items | ||||||||||||
| Base Period: | 1982-84=100 | ||||||||||||
| Years: | 2014 to 2024 | ||||||||||||
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
| 2020 | 282.020 | 282.577 | 281.975 | 280.623 | 282.092 | 282.333 | 283.624 | 283.478 | 284.551 | 284.121 | 283.291 | 284.350 | |
| 2021 | 285.525 | 286.474 | 287.481 | 289.493 | 290.991 | 293.872 | 293.553 | 293.927 | 295.488 | 296.472 | 297.490 | 296.865 | |
| 2022 | 300.164 | 301.151 | 305.024 | 307.781 | 309.243 | 313.589 | 312.615 | 313.28 | 313.88 | 314.338 | 314.975 | 315.656 | |
| 2023 | 318.151 | 319.295 | 319.038 | 319.211 | 320.002 | 321.29 | 322.496 | 324.38 | 325.613 | 325.288 | 324.52 | 324.691 | |
| 2024 | 328.006 | 328.606 | |||||||||||
| CPI | 3.0976% | 2.9161% | |||||||||||
To calculate go to:
https://www.bls.gov/regions/northeast/cpi-summary/ro1xg01a.htm
Follow these steps:
Next steps:
Data Tools Drop Down- Choose Top picks, one screen multi-site.
Choose Top CPI Current Series -Click on Multi Screen
Choose Not Seasonally Adjusted – Next Form
Choose Area- S12A- Next Form
Chose Current – Next Form
Choose SOA All Items- Next Form
Choose Monthly – Next Form
Click on Box CUURS12ASA0 and hit retrieve data- it will give you the chart I have above.