H.R. 8047: Promoting Resident Ownership of Manufactured Home Communities Act

This bill, known as the Promoting Resident Ownership of Manufactured Home Communities Act, aims to encourage the purchase of manufactured housing communities by residents. It proposes to create a grant program under the Community Development Block Grant program managed by the Secretary of Housing and Urban Development (HUD). Here is an overview of its main components:

Establishment of a Grant Program

The bill requires HUD, within one year of its passage, to set up a competitive grant program. This program will award grants to eligible entities to promote state laws enabling residents to purchase the manufactured housing communities in which they live.

Eligibility for Grants

To qualify for a grant, an entity must:

• Receive assistance under the Community Development Block Grant program.
• Be located within a state or be a state, Indian tribe, or insular area that has adopted specific model laws or has provided data demonstrating effective purchase opportunities for residents.

Once an entity is found eligible, it will maintain its eligibility for three years.

Use of Grant Funds

Funding received must be allocated as follows:

• At least 25% must be used for land and infrastructure acquisition for a manufactured housing community owned by an eligible owner.
• The rest may be used for other eligible activities under the existing Community Development Block Grant guidelines.

Model Law Criteria

States, insular areas, and Indian tribes must establish model laws that include the following provisions:

• Owners of manufactured housing communities must notify residents and the relevant state housing finance agency prior to the sale, lease, or transfer of the community.
• Notices must include purchase prices, terms, and the residents’ opportunity to buy the community.
• If a resident group proposes a purchase within 60 days, especially if it mirrors the owner's accepted offer, the owner is required to sell to the residents.
• Owners must also consider proposals even if they differ from the original terms and negotiate in good faith.
• Residents can form associations and must have the right to meet and communicate without retaliation from owners.

Exemptions

Some sales or transfers could be exempt from these requirements, including those involving:

• Family members of the community owner.
• Gifts or transfers by operation of law.
• Limited liability companies transferring to partners or affiliates.
• Transfers involving financing.
• Sales pursuant to eminent domain.

Implementation and Reporting

Grants must not negatively impact other forms of assistance received by jurisdictions under the Community Development Block Grant program. Also, HUD may adjust definitions related to effective purchase opportunities to reflect real market conditions.

Definitions

Key terms defined in the bill include:

• Data demonstrating an effective purchase opportunity: Requirements for notifying residents about sales and opportunities to purchase.
• Eligible owner: Includes local governments, housing authorities, resident-owned communities, cooperatives, and nonprofits.
• Manufactured housing community: A community designed for the placement of manufactured homes under unified ownership.

Funding Authorization

The bill allows for the appropriation of necessary funds to implement these provisions, in addition to other funds already allocated under the Community Development Block Grant program.

Relevant Companies

• KB Home (KBH) - Might be impacted by changes in the manufactured housing market and community ownership.
• D.R. Horton (DHI) - As a major homebuilder, the company could see shifts in demand based on the legislation promoting resident ownership.