[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4557 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4557

    To ensure that federally backed financing for the construction, 
    rehabilitation, or purchase of manufactured home communities is 
  available only for communities whose owner has implemented minimum 
  consumer protections in the lease agreements with residents of all 
   manufactured home communities owned by such owner, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2023

Ms. Pettersen (for herself, Ms. Bonamici, and Ms. Omar) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
    To ensure that federally backed financing for the construction, 
    rehabilitation, or purchase of manufactured home communities is 
  available only for communities whose owner has implemented minimum 
  consumer protections in the lease agreements with residents of all 
   manufactured home communities owned by such owner, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Manufactured Housing Tenant's Bill 
of Rights Act of 2023''.

SEC. 2. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Affiliate.--Except as provided by the Secretary or the 
        Director, as applicable, the term ``affiliate'' means, with 
        respect to a borrower referred to in section 2(a), any entity 
        that controls, is controlled by, or is under common control 
        with, the borrower.
            (2) Covered loan program.--The term ``covered loan 
        program'' means any of the following programs:
                    (A) The program under section 207 of the National 
                Housing Act (12 U.S.C. 1713) for insurance of loans for 
                financing for the construction or substantial 
                rehabilitation of manufactured home parks.
                    (B) The program of the Federal National Mortgage 
                Association for multifamily loans for manufactured 
                housing communities.
                    (C) The program of the Federal Home Loan Mortgage 
                Corporation for loans for manufactured housing 
                communities.
            (3) Covered pricing incentive.--The term ``covered pricing 
        incentive'' means any pricing discount available to borrowers 
        under any of the covered loan programs that rewards the 
        borrower's implementation of one or more specific resident 
        protections and is designed to ensure that the benefits of a 
        covered loan program are provided at a lower cost for 
        manufactured home communities based on the extent to which 
        residents of a manufactured home community are better protected 
        from predatory rent increases and management practices.
            (4) Director.--The term ``Director'' means the Director of 
        the Federal Housing Finance Agency.
            (5) Enterprise.--The term ``enterprise'' has the meaning 
        given the term in section 1303 of the Federal Housing 
        Enterprises Financial Safety and Soundness Act of 1992 (12 
        U.S.C. 4502).
            (6) Manufactured home.--The term ``manufactured home''--
                    (A) has the meaning given the term in section 603 
                of the National Manufactured Housing Construction 
                Safety and Standards Act of 1976 (42 U.S.C. 5402); and
                    (B) includes any structure described in such 
                section 603 without regard to--
                            (i) whether the structure complies with any 
                        standards under such Act; and
                            (ii) the date of the manufacture of the 
                        structure.
            (7) Manufactured home community.--The term ``manufactured 
        home community'' means any community, court, or park equipped 
        to accommodate manufactured homes for which pad sites or pad 
        sites and the manufactured homes, or both, are leased to 
        residents to be used primarily for residential purposes, 
        including any manufactured housing community, as the term is 
        used for purposes of a program described in subparagraph (B) or 
        (C) of paragraph (2).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 3. REQUIREMENTS FOR COVERED LOAN PROGRAMS.

    (a) Requirements.--On and after the date that is 180 days after the 
date of enactment of this Act, no loan shall be eligible for insurance 
by the Secretary or purchase by an enterprise, as applicable, under a 
covered loan program unless--
            (1) the borrower under the loan certifies to the Secretary 
        or the applicable enterprise that the borrower will include, in 
        any lease agreement for a pad site, or a pad site and 
        manufactured home, located in any manufactured home community 
        that the borrower or an affiliate of the borrower owns, the 
        minimum consumer protections described in subsection (b); and
            (2) the borrower complies with regulations issued by the 
        Secretary or the Director, as applicable, that require the 
        borrower to submit documentation to the Secretary, or to the 
        applicable enterprise and the Director, that is sufficient, as 
        determined by the Secretary or the Director, to ensure that the 
        borrower is complying with the certification described in 
        paragraph (1), which shall include a copy of the standard lease 
        agreement used by the borrower that includes the minimum 
        protections described in subsection (b).
    (b) Minimum Consumer Protections.--
            (1) In general.--The minimum consumer protections described 
        in this subsection are as follows:
                    (A) 1-year lease terms that are renewable for 
                additional 1-year terms unless there is good cause for 
                non-renewal.
                    (B)(i) A right to receive written notice of any 
                newly required charges (including water and other 
                utilities) or increase in the rents for pad sites, or 
                pad sites and manufactured homes, located in the 
                community, including a written justification of the 
                increase with information on increases in the costs of 
                operating, maintaining, or improving the community.
                    (ii) A written notice described in clause (i) 
                shall--
                            (I) be provided to the tenant not less than 
                        60 days before the effective date of any newly 
                        required charge or increase in the rents, 
                        except that, in the case of any increase 
                        exceeding 5 percent of the previous monthly 
                        rent, an additional 30-days notice shall be 
                        provided for each additional 2.5-percent 
                        increase in the rent; and
                            (II) include identification of the amount 
                        of, and a description of, any newly required 
                        charges (including water and other utilities) 
                        that the tenant is not currently responsible 
                        for but will be responsible for upon the rent 
                        increase and, if available, an estimate of the 
                        monthly amount of those charges.
                    (iii) For purposes of the calculation in clause 
                (i)(I)--
                            (I) the amount of any increase in the 
                        monthly rent for a dwelling unit shall be 
                        considered to include any newly required 
                        charges described in clause (i)(II); and
                            (II) any newly required charges without an 
                        estimate of the monthly amount shall be 
                        estimated at 5 percent of the previous monthly 
                        rent.
                    (C) A 5-day grace period for rent payments.
                    (D) A right to cure defaults on rent payments 
                within 15 days of the due date.
                    (E) A right for a tenant who owns a manufactured 
                home to sell a manufactured home owned by the tenant 
                without having to first relocate the manufactured home 
                out of the community.
                    (F) A right for a tenant who owns a manufactured 
                home to sell a manufactured home owned by the tenant in 
                place within a reasonable time period, but not earlier 
                than 45 days, after eviction by the owner of the 
                manufactured housing community.
                    (G) A right for a tenant who owns a manufactured 
                home--
                            (i) to sublease or assign the pad site 
                        lease for the unexpired term to a new buyer of 
                        the manufactured home unless the prospective 
                        tenant fails to meet the reasonable and 
                        uniformly applied application criteria of the 
                        manufactured housing community; and
                            (ii) in such a case of denial, a right to 
                        written notice provided by the owner of the 
                        manufactured housing community informing the 
                        tenant of the denial and the prospective tenant 
                        of the denial and the specific reason or 
                        reasons for denial.
                    (H) A right for a tenant who owns a manufactured 
                home to post ``For Sale'' signs.
                    (I) A right to receive 60-day advance written 
                notice of the planned sale or closure of the 
                manufactured housing community, which shall--
                            (i) include the price, terms and conditions 
                        for the sale of the manufactured housing 
                        community; and
                            (ii) provide that--
                                    (I) no final acceptance of an offer 
                                to sell the manufactured housing 
                                community may be made for 60 days; and
                                    (II) the owner shall negotiate in 
                                good faith with the tenants if they 
                                wish to purchase the manufactured 
                                housing community during that 60-day 
                                period;
                    (J)(i) A right against termination of tenancy 
                except in cases in which a tenant engages in a material 
                noncompliance with the rental agreement, a tenant 
                commits a material violation of the manufactured home 
                community reasonable rules or regulations, or the 
                community has a material, legitimate, and uniformly 
                applied business reason for termination that was 
                included in the lease agreement as grounds for 
                termination.
                    (ii) In the case of a termination described in 
                clause (i), a right to written notice provided by the 
                owner of the community informing the tenant of the 
                termination and the specific reason or reasons for 
                termination.
            (2) Rule of construction.--Nothing in this subsection may 
        be construed to annul, alter, or affect any State or local law 
        providing greater protections to tenants of manufactured home 
        communities than the protections afforded under this 
        subsection.
    (c) Pricing Incentives.--
            (1) In general.--Any covered pricing incentive offered for 
        loans purchased under a covered loan program on or after the 
        date that is 180 days after the date of enactment of this Act 
        shall reward implementation of resident protections that are 
        more protective than those specified in subsection (b).
            (2) Prohibition.--Any covered pricing incentive described 
        in paragraph (1) that does not comply with the requirement 
        described in that paragraph may not be offered for any loan 
        purchased under a covered loan program on or after the date 
        that is 180 days after the date of enactment of this Act.
    (d) Publication.--
            (1) In general.--The Secretary and Director shall make the 
        list of properties covered by the protections described in 
        subsection (b) publicly available on a single website.
            (2) Other covered properties.--Properties that are covered 
        as of the date of enactment of this Act by the Federal National 
        Mortgage Association's Tenant Site Lease Protections or the 
        Federal Home Loan Mortgage Corporation's MHC Tenant Protections 
        shall--
                    (A) be made publicly available; and
                    (B) include an explanation of the differences 
                between those protections and the minimum consumer 
                protections described in subsection (b).
    (e) Penalties.--
            (1) In general.--The Secretary and Director shall--
                    (A) prohibit a borrower or an affiliate of the 
                borrower from securing future federally backed 
                financing or other housing-related Federal assistance 
                for a period of not less than 2 years beginning on the 
                date of the violation or failure if the borrower or 
                affiliate, as applicable, willfully and materially--
                            (i) violates a consumer protection 
                        described in subsection (b); or
                            (ii) fails to include the consumer 
                        protections described in subsection (b) in any 
                        lease agreement; and
                    (B) determine appropriate penalties for any 
                borrower who fails to--
                            (i) include the consumer protections 
                        described in subsection (b) in any lease 
                        agreement; or
                            (ii) comply with a lease agreement 
                        including the protections described in 
                        subsection (b).
            (2) Nature of penalties.--The penalties determined under 
        paragraph (1)(B) shall be in addition to minimum payments to 
        the injured tenant as follows:
                    (A) For a material violation of subparagraph (A) or 
                (J) of subsection (b)(1), 6 months of the current 
                monthly rent.
                    (B) For a material violation of subsection 
                (b)(1)(B), any increased rent must be paid back to the 
                tenant with interest, plus 25 percent.
                    (C) For a material violation of subsection 
                (b)(1)(C), any penalties or late fees must be paid back 
                to the tenant with interest, plus 25 percent.
                    (D) For a material violation of subparagraph (D), 
                (E), or (F) of subsection (b)(1), the greater of--
                            (i) the sale price of the manufactured 
                        home, if the borrower or an affiliate sells it 
                        within 12 months of the violation; or
                            (ii) 12 months of the prior monthly rent.
                    (E) For a material violation of subparagraph (G) or 
                (H) of subsection (b)(1), the total remaining monthly 
                rent owed on the tenant's lease.
                    (F) For a material violation of subsection 
                (b)(1)(I), the greater of 2 months rent or 10 percent 
                of the sale price of the community divided by the 
                number of tenants in the manufactured housing 
                community.

SEC. 4. MANUFACTURED HOME COMPANY LENDING STANDARDS COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Manufactured Home Company Lending Standards Commission.
    (b) Duties.--
            (1) Proposed standards.--Not later than 1 year after the 
        date of enactment of this Act, the Commission shall submit to 
        Congress, the Secretary, and the Director a report that sets 
        forth proposed consumer protection standards for covered loan 
        programs that--
                    (A) are in addition to and provide greater 
                protection than the requirements described in section 
                3(b); and
                    (B) could be used as a basis for establishing 
                covered pricing incentives under the covered loan 
                programs that comply with section 3(c).
            (2) Standard for determinations.--Any determination by the 
        Commission to approve a consumer protection in the proposed 
        standards required under paragraph (1) shall be made by a vote 
        of a simple majority of the members of the Commission.
    (c) Membership.--
            (1) Number and appointment.--The Commission shall be 
        composed of 16 members, as follows:
                    (A) The Secretary (or the Secretary's designee).
                    (B) The Director (or the Director's designee).
                    (C) 1 representative from each enterprise.
                    (D) 3 each shall be appointed by the Speaker of the 
                House of Representatives, the minority leader of the 
                House of Representatives, the majority leader of the 
                Senate, and the minority leader of the Senate. Of the 3 
                members appointed by each such officer--
                            (i) 1 shall be employed at the time of 
                        appointment as a professor or academic 
                        researcher with demonstrated background in 
                        housing and consumer protection issues, 
                        especially as they relate to manufactured 
                        housing;
                            (ii) 1 shall be a current or former member 
                        of Congress; and
                            (iii) 1 shall be a current resident and 
                        homeowner at a manufactured housing community.
            (2) Chairperson and co-chairperson.--
                    (A) Chairperson.--The chairperson of the Commission 
                shall be designated by the President from among the 
                members of the Commission.
                    (B) Co-chairperson.--The co-chairperson of the 
                Commission shall be selected as follows:
                            (i) Designation by speaker of the house.--
                        If, on the date of appointment, the Speaker of 
                        the House of Representatives is of a different 
                        political party than the President, the Speaker 
                        of the House of Representatives shall designate 
                        the co-chairperson from among the members of 
                        the Commission.
                            (ii) Designation by minority leader of the 
                        house.--If, on the date of appointment, the 
                        Speaker of the House of Representatives is of 
                        the same political party as the President, the 
                        minority leader of the House of Representatives 
                        shall designate the co-chairperson from among 
                        the members of the Commission.
            (3) Timing of appointments.--Appointments to the Commission 
        shall be made not later than 45 days after the date of 
        enactment of this Act.
            (4) Terms; vacancies.--
                    (A) Terms.--Each member shall be appointed for the 
                life of the Commission.
                    (B) Vacancies.--Any vacancy in the Commission 
                shall--
                            (i) not affect the powers of the 
                        Commission; and
                            (ii) be filled within 45 days of the 
                        vacancy in the manner in which the original 
                        appointment was made.
            (5) Hearings.--
                    (A) In general.--In carrying out the duties of the 
                Commission under this section, the Commission is 
                authorized to hold such hearings and take testimony 
                with respect to matters to which it has a 
                responsibility under this section.
                    (B) Oaths.--The chairperson of the Commission, or 
                any member of the Commission authorized by the 
                chairperson, may administer oaths or affirmations to 
                witnesses appearing before the Commission.
            (6) Prohibition of compensation.--Members of the Commission 
        shall serve without pay.
    (d) Operation and Powers.--
            (1) Meetings.--The Commission shall meet not later than 30 
        days after the date upon which a majority of the members of the 
        Commission have been appointed and at such times thereafter as 
        the chairperson or co-chairperson shall determine. Detailed 
        minutes of each meeting of the Commission, except for any 
        closed session, shall be kept and shall include a record of the 
        persons present and a complete and accurate description of 
        matters discussed.
            (2) Rules of procedure.--The chairperson and co-chairperson 
        of the Commission shall, with the approval of a majority of the 
        members of the Commission, establish written rules of procedure 
        for the Commission, which shall include a quorum requirement to 
        conduct the business of the Commission.
            (3) Hearings.--
                    (A) Frequency.--The Commission shall hold no fewer 
                than 2 hearings on matters to carry out the duties of 
                the Commission under subsection (b).
                    (B) Testimony.--The Commission may take testimony 
                and receive evidence as the Commission considers 
                appropriate.
                    (C) Notice.--
                            (i) Hearings.--Timely public notice of each 
                        hearing of the Commission, including the time, 
                        place, and agenda of the meeting, shall be 
                        provided by any means determined by the 
                        Commission to provide for wide publicity.
                            (ii) Meetings.--Timely notice of each 
                        regular meeting of the Commission shall be 
                        published in the Federal Register.
                            (iii) Comments.--Interested persons shall 
                        be permitted to submit written statements 
                        regarding the matters on the agenda of the 
                        hearings of the Commission.

SEC. 5. FUNDING.

    (a) Prohibition.--No additional funds are authorized to be 
appropriated to carry out this Act.
    (b) Use of Existing Funds.--Any expenses required to carry out this 
Act shall be funded using amounts otherwise available to the Department 
of Housing and Urban Development or to the Federal Housing Finance 
Agency.

SEC. 6. TERMINATION.

    The Commission shall terminate upon the submission of the report 
required under section 4(b).

SEC. 7. STANDARD LEASE.

    (a) In General.--The Director shall, in consultation with the 
enterprises, develop a standard site-lease agreement that the 
enterprises will certify provides sufficient certainty to ensure that 
homes in manufactured housing communities utilizing the standard lease 
will be eligible for purchase under the single-family mortgage programs 
of the enterprises.
    (b) Submission to Congress.--Not later than 1 year after the date 
of enactment of this Act, the Director shall submit to the Committee on 
Banking, Housing, and Urban Affairs and the Committee on Financial 
Services of the House of Representatives a copy of the standard site-
lease agreement developed under subsection (a).
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