Bon Ayre Land, LLC, Appellee Below-Appellant v. Bon Ayre Community Association, Appellant Below-Appellee

Summary

The Supreme Court affirmed the Superior Court’s ruling that a manufactured-home community owner seeking a rent increase above CPI-U must prove both that the increase is directly related to operating, maintaining, or improving the community and that it is justified by a statutory factor, including market rent. The Court held that the statute’s use of “and” is clear and does not produce an absurd result, and that the owner failed to satisfy the required relationship-to-community-operations condition. The Court also held that the statute does not limit proof of market rent to actual lease terms or rents charged to new residents; relevant and reliable evidence, including advertised rents and expert analysis, may be used. Justice Vaughn, dissenting, would have allowed market rent and the owner’s desired return to establish the required relationship to operating the community, subject to an arbitrator’s discretion to prevent unreasonable or burdensome increases.