This bill creates a federal tax credit to incentivize owners of manufactured home communities to sell their properties to resident cooperatives or nonprofit organizations. Sellers who transfer their manufactured home communities would receive a tax credit worth 75 percent of their gains from the sale, provided the property is bound by a covenant to remain an affordable manufactured home community for at least 50 years. The legislation targets the roughly 22 million Americans living in manufactured homes, who are disproportionately low-income with median household incomes around $35,000, and aims to preserve these communities as affordable housing while allowing residents to build wealth through ownership rather than being vulnerable to rent increases and community closures. The credit applies to sales completed after December 31, 2026, and requires both the seller and buyer to execute an affidavit confirming the sale meets the bill's requirements, with violators of the preservation covenant facing a 20 percent tax on their net proceeds from the property sale. The bill does not specify total funding but makes this tax credit available to all eligible sellers meeting the criteria.
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