Arizona Mobile Home Parks Reminded Of Utility Submetering and Billing Obligations

The Arizona Attorney General’s Office has received an increasing number of complaints from consumers at mobile home parks and manufactured home communities about high utility bills for utility services. As a result, the Office is reminding all mobile home parks in Arizona about their obligations regarding submetering and billing under Arizona law.

According to the Arizona Attorney General’s Office (AGO), certain parks and communities in Arizona may not be complying with the laws applicable to them, including permissible billing practices under the Arizona Mobile Home Parks Residential Landlord and Tenant Act, A.R.S. §§ 33-1401 through 33-1501 (the “Mobile Home Act”). Instances of overbilling and unfair eviction tactics may also separately violate Arizona’s consumer fraud laws.

The AGO offers the following tips to consumers who own their mobile/manufactured home and rent lot space from a landlord. Different laws apply to tenants who rent the interior space or who rent lot space for a recreational vehicle (RV) that they own.

The Submeter

Many mobile home parks and manufactured home communities in Arizona are “master-meter” parks, meaning that local utility providers distribute services to the park owner through a single, large meter, and then the park owner distributes services to tenants through submeters at each individual lot. Tenants are not direct customers of the utility company. Park owners are responsible for the submeter, the meter readings, and the billing.

• Know Your Submeter: It is important for tenants and park owners to understand the submeter’s unit of measurement (e.g., gallons, cubic feet, kilowatt hours) and to identify whether digits on the submeter reflect decimals, whole numbers, or multiples of whole numbers (e.g., 100s or 1000s of gallons). Submeters can vary by make and model and are often not uniform across a single park. User manuals for the submeter that are available online and other guides, such as YouTube videos, can often help you understand your submeter.
• Document Your Submeter’s Readings: Taking photos of your submeter around the same time that your park reads the meter can provide valuable evidence if you need to dispute your bill. Most parks read meters on a monthly basis; therefore, taking photos monthly is ideal.

The Bill
By law, the park’s billing statement must include (1) the opening and closing meter readings and the dates of the meter readings for each billing period; and (2) the cost of the utility charges, with a “computation” for each charge that is “generally in accordance with the serving utility company billing format for individual service.” Furthermore, the landlord “shall not charge more than the prevailing basic service single family residential rate charged by the serving utility or provider” for gas, water, and electricity charges. A.R.S. § 33-1413.01(A)-(B). A similar restriction applies to trash removal and sewer services. A.R.S. § 33-1413.01(D).

• Review Your Bill: Make sure that you are receiving an itemized bill that includes the opening and closing meter readings, dates for the readings, and a computation for each utility charge. If you have taken photos as noted above, you can compare the photos with the bill to make sure the readings are accurate (or approximately match). The bill should also refer to the correct unit of measurement. Be aware that the park may need to convert the submeter’s unit of measurement to the standard unit of measurement used by the utility provider (e.g., gallons to cubic feet).
• Look for Improper or Excessive Charges:  The park’s computation should simulate the billing format that the local utility provider uses for single-family residences. First, identify the local utility provider and its billing format. Many utility providers have “How to Read Your Bill” materials and rate sheets (sometimes called “tariffs”) on their websites that explain what those utility providers charge. Then, compare your bill and its rates with the utility provider’s billing format and rates for single-family residences. For instance, if a local natural gas provider charges $10.50 for a “basic service charge” (before usage charges and other charges), then any line item on your bill for a “basic service charge” should not exceed $10.50.

How Consumers Can Respond to Billing Issues
Consumers are often hesitant to complain or seek help because of fears about retaliation from their landlords. By law, landlords are prohibited from retaliating against tenants who complain to the landlord or who file complaints with a government agency. A.R.S. § 33-1491. Below are some options for consumers who have complaints about their submeter or their bill.

• Put Your Complaint in Writing to Your Landlord: If you choose to contact your landlord directly, it is important to do so in writing and to follow your park’s rules about where notices should be sent. Written evidence of your complaint can help show you put the landlord on notice of your issue and, in a worst-case scenario, may assist in any potential eviction action. Where possible, submitting a complaint to the landlord via email (in addition to any other required method) is preferred because you will have a time-stamp of when you submitted the complaint. Keep clean records of your complaints.
• File a Petition to Request a Hearing with the Arizona Department of Housing, or Seek Other Legal Avenues: The Arizona Department of Housing (ADOH) is authorized by statute to hear and decide complaints concerning whether a park has complied with the Mobile Home Act. See A.R.S. §§ 41-4061 through 41-4065. Contact ADOH at (602) 771-1000 for more information, or visit their website to download a petition form. This avenue of relief is in addition to other avenues that may be available through the court system. A.R.S. § 41-4064(B).
• Contact Our Office:  If you believe you are a victim of consumer fraud, you can file a consumer complaint by visiting the Attorney General’s website. Our Office represents the State of Arizona, but it does not represent individual consumers. Our Office does, however, bring cases against businesses that violate Arizona consumer protection statutes. That is why the information you provide to our office is so important. If you need a complaint form sent to you, you can contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.
• If Facing Eviction, Bring Your Evidence to Court and Seek Local Resources ASAP:
  • If you are facing eviction for failing to pay a utility bill that you believe is unlawfully high, you may want to consult with a private attorney or a certified legal advocate. Eviction proceedings can move fast, so have your evidence ready (e.g. photos of your meter, copies of bills with errors, your written complaints, etc.).
  • Your city or county may provide dedicated eviction-related resources (e.g., City of Phoenix’s Eviction Legal Services Program at (602) 262-7210 or Pima County’s Emergency Eviction Legal Services at (520) 724-3357). The following list includes other community resources that may also be available to you:
    • AZ Bar Foundation at www.azlawhelp.org or 1-866-637-5341, to obtain a referral or find free or reduced legal aid for those who qualify.
    • Community Legal Services, Inc. (Maricopa, La Paz, Mohave, Yavapai, and Yuma Counties) at www.clsaz.org or (602) 258-3434.
    • Southern Arizona Legal Aid (Gila, Cochise, Graham, Greenlee, Pima, Santa Cruz, Pinal Counties and the Southern half of Apache and Navajo Counties) at www.sazlegalaid.org  or (520) 623-9465.
    • DNA People’s Legal Services (Coconino County, and the Navajo Nation in the Northern Half of Navajo & Apache Counties) at www.DNALegalServices.org or (928) 774-0653.
    • Maricopa County Bar Lawyer Referral Service at www.maricopabar.org (select “Lawyer Referral – Home”) or call (602) 257-4434.
    • Pima County Bar Lawyer Referral Service at www.pimacountybar.org or call (520) 623-4625.
    • Additional resources are available at www.211arizona.org. Select “legal assistance” and then “legal aid” on the menu and search by the county where you reside. Or, you can call by dialing “211” or 1-877-211-8661.