This bill creates a new federal tax credit to encourage owners of manufactured home communities to sell their properties to resident-owned cooperatives or nonprofit organizations. Under the legislation, sellers who transfer a manufactured home community would receive a tax credit equal to seventy-five percent of their gain from the sale, provided the property is placed under a binding covenant to remain affordable housing for at least fifty years. The bill targets a critical housing need, as over twenty-two million Americans live in manufactured homes, with most being low-income households earning under fifty thousand dollars annually, yet only about two percent of the nation's roughly forty-three thousand manufactured home communities are currently resident or nonprofit owned. The tax credit applies to sales completed in taxable years beginning after December 31, 2023, and includes protections requiring both buyer and seller to sign affidavits confirming compliance and establishing recapture provisions if the property is later converted to non-community use. The legislation aims to help low-income homeowners build wealth through ownership while stabilizing affordable housing in rural and urban communities.
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