This bill creates a new federal tax credit to encourage owners of manufactured home communities to sell their properties to resident cooperatives or nonprofit organizations. Sellers who meet the requirements would receive a tax credit equal to 75 percent of their gain from the sale, provided the property is used as a manufactured home community for at least 50 years. The bill targets a significant housing challenge: more than 22 million Americans live in manufactured homes, many in low-income households with median annual incomes around $35,000, and most live in communities where they own their home but not the land underneath it. This arrangement leaves residents vulnerable to rent increases, evictions, and community closures. The legislation aims to increase the currently low rate of resident or nonprofit ownership (only 2.4 percent nationally) by making it financially attractive for current owners to sell to qualified resident cooperatives or nonprofit entities. The tax credit takes effect for sales occurring in taxable years beginning after December 31, 2026.
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