State policies enabling resident opportunity to purchase manufactured housing communities

Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is amended by adding at the end the following:

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State policies enabling resident opportunity to purchase manufactured housing communities

(a)

Establishment

Not later than 1 year after the date of the enactment of this section, the Secretary shall carry out a competitive grant program to award amounts to eligible entities as described in this section. (b)

Eligibility

(1)

In general

To be eligible for a grant under this section, an entity shall— (A)be a recipient of assistance under this title; (B)be located within a State or be a State, Indian tribe, or insular area that has— (i)adopted the model laws described in subsection (e), submitted to the Secretary by the entity for review; or (ii)submitted to the Secretary data demonstrating an effective purchase opportunity. (2)

Determination

In determining eligibility, the Secretary shall make a determination whether the submissions described in subparagraph (B) meet the requirements of this section. (3)

Period of eligibility

Following a determination that an entity is eligible for a grant under this section, that entity shall retain its eligibility for a 3-year period after such determination. (c)

Eligible activities

An eligible entity that is awarded a grant under this section shall use— (1)not less than 25 percent of such grant amounts for land and site acquisition and infrastructure for a manufactured housing community owned by an eligible owner; and (2)the remaining grant amounts to carry out any of the eligible activities described in section 105. (d)

Waivers

The Secretary may waive or specify alternative requirements for any provision of law or regulation that the Secretary administers in connection with use of amounts made available under this section other than requirements related to fair housing, nondiscrimination, labor standards, the environment, and requirements that activities benefit persons of low- and moderate-income, upon a finding that the waiver or alternative requirement is not inconsistent with the overall purposes of this section and that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section. (e)

Model law criteria

The model law criteria for a State, insular area, and Indian tribe are as follows: (1)Not later than 60 days before making a final, unconditional acceptance of an offer to sell, lease, or transfer a manufactured housing community, the owner of such community shall provide a written notice to— (A)the residents of the manufactured housing community; and (B)the housing finance agency of the relevant State, insular area, or Indian tribe. (2)The notice described in paragraph (1) shall— (A)include the price, terms, and conditions of the offer the manufactured housing community owner has conditionally accepted or plans to accept; (B)in the case of a sale of more than 1 manufactured housing community, or a manufactured housing community and 1 or more other non-related properties in a single transaction, state both the aggregate price and the price of the manufactured housing community in which the residents receiving the notice reside; and (C)describe the residents’ opportunity to purchase the community and the relevant deadlines described in this subsection. (3)If within 60 days of the date of the notice described in paragraph (1), a formal or informal group of resident homeowners that is governed by and open to all resident homeowners in the community, or its designee, presents a proposed agreement to the manufactured housing community owner to purchase the community, along with a statement that the owners of more than 50 percent of the owner-occupied homes in the community have indicated their support for submission of the offer by signing a petition or other document that so states, then— (A) if the proposed agreement matches the price and substantially the same terms and conditions as the offer the manufactured housing community owner has conditionally accepted or plans to accept, the community owner must sell the community to the homeowners on those prices, terms, and conditions; or (B)if the proposed agreement differs from the price or substantially differs from the terms and conditions of the offer the community owner has conditionally accepted or plans to accept, the community owner shall consider the group’s proposed agreement and negotiate with the group in good faith to determine whether a mutual agreement can be reached to enable the group to purchase the community. (4)The community owner may not reject a proposed purchase agreement solely on the basis of its inclusion of a financing contingency. (5)If a resident homeowner group and the community owner enter into a purchase agreement for the community, the resident homeowner group shall have 120 days from the date of the agreement to form an appropriate homeowner-governed corporation or co-operative to take title to the community and arrange all necessary financing, and a commercially reasonable time to close on the sale. (6)The community owner shall afford the purchase opportunity required by this section separately to each substantially different offer to sell or purchase a manufactured housing community. (7)The manufactured housing community owner may not accept or conditionally accept an offer for the sale, lease, or transfer of the community unless its price, terms, and conditions are universal and applicable to all potential buyers, nor shall such owner accept or conditionally accept an offer that contains any provision penalizing the owner for entering into a purchase agreement with a resident homeowner group. (8)The residents of a manufactured housing community shall have the right to meet, form a residents association, use common areas for meetings on the same terms as allowed for other uses, and circulate flyers, petitions, or other documents, and may not be retaliated against for asserting such rights. (9)The requirements listed in this subsection apply to all sales, leases, or other transfers of manufactured housing communities, except a State, insular area, and Indian tribe may exempt any of the following: (A)A sale, lease or transfer to a family member of the community owner or to a trust, the beneficiaries of which are family members of the community owner. (B)A transfer by gift, devise or operation of law. (C)A sale, lease or transfer by a partnership or a limited liability company to 1 or more of its partners or members, between joint tenants or tenants in common, or by a business entity to a subsidiary or affiliate of such entity. (D)A lease of a lot within the manufactured housing community to a person who will live in a manufactured home on such lot. (E)A conveyance of an interest in the community that is incidental to the financing of such community. (F)A sale or transfer pursuant to eminent domain. (f)

Implementation

(1)

Allocation of CDBG amounts

Grants awarded under this section shall not adversely affect the amount of any formula assistance received by a jurisdiction under section 106. (2)

Definition of data demonstrating an effective purchase opportunity

The Secretary may adjust the definition of data demonstrating an effective purchase opportunity as necessary to respond to market conditions related to resident purchase and operation of manufactured housing communities. (g)

Definitions

In this section: (1)

Data demonstrating an effective purchase opportunity

The term data demonstrating an effective purchase opportunity means data showing that, over a 1- to 5-year period, including the most recent year for which data is available, that— (A) residents were given a notice of sale and opportunity to purchase in at least 80 percent of manufactured housing community sales that were completed; and (B) residents, or a nonprofit organization designated by the residents, successfully purchased the community in at least 1 out of 20 manufactured housing community sales. (2)

Eligible owner

The term eligible owner means— (A)a unit of general local government; (B)a housing authority; (C)a resident-owned community; (D)a resident-owned cooperative; (E)a nonprofit entity with housing expertise or a consortia of such entities; (F)a community development financial institution; (G) an Indian tribe; (H)a tribally designated housing entity; or (I)a State. (3)

Manufactured housing community

The term manufactured housing community means— (A)any community, court, park, or other land under unified ownership developed and accommodating, or equipped to accommodate, the placement of manufactured homes, where— (i)spaces within such community are or will be primarily used for residential occupancy; or (ii)a majority of such occupied spaces within the community are occupied by manufactured homes, which may include homes constructed prior to the Manufactured Home Construction and Safety Standards established by the Secretary; or (B)any community that meets the definition of manufactured housing community used for programs carried out by the Secretary. (h)

Authorization of appropriations

There is authorized to be appropriated to the Secretary such sums as may be necessary to carry out this section, which shall be in addition to any other funds appropriated pursuant to this title.