SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2024 SESSION

24105316D
HOUSE BILL NO. 1397
Offered January 17, 2024
A BILL to amend and reenact §§ 55.1-1308.1 and 55.1-1308.2 of the Code of Virginia, relating to Manufactured Home Lot Rental Act; manufactured home park; notice of sale and relocation expenses.
----------
Patrons-- Krizek and Delaney
----------
Referred to Committee on General Laws
----------

Be it enacted by the General Assembly of Virginia:

1. That §§ 55.1-1308.1 and 55.1-1308.2 of the Code of Virginia are amended and reenacted as follows:

§ 55.1-1308.1. Sale of manufactured home park to developer; relocation expenses.

If the termination of a rental agreement is due to the sale of the manufactured home park to a buyer that is going to redevelop the park and change its use, the landlord shall provide to each manufactured home owner in the park $2,500 $5,000 in relocation expenses within the 180-day notice period provided for in subsection B of § 55.1-1308 for the purpose of removing the manufactured home from the park. For manufactured home parks located in Planning District 8, the landlord shall provide to each manufactured home owner in the park $3,500 in relocation expenses within the 180-day notice period provided for in subsection B of § 55.1-1308 for the purpose of removing the manufactured home from the park. Such relocation expenses shall be subject to a written agreement between the landlord and the manufactured home owner to remove the manufactured home from the park. Notwithstanding any other provision of law, a landlord shall not be subject to any other requirement under a zoning ordinance or conditional use or other permit under Title 15.2 to pay additional funds or provide additional financial assistance to a manufactured home owner if a rental agreement is terminated due to the sale of the manufactured home park to a buyer that is going to redevelop the park and change its use.

§ 55.1-1308.2. Notice of sale.

A. This section does not apply to the sale of a manufactured home park to the manufactured home park owner's family by blood or marriage or to a person or entity that owns a portion of the manufactured home park at the time of the offer or listing of such manufactured home park for sale.

B. A manufactured home park owner who offers or lists the park for sale to a third party shall provide written notice containing the date on which the notice is sent and the price for which the park is to be offered or listed for sale. Such notice shall be sent to the Department of Housing and Community Development, which shall make the information available on its website within five business days of receipt. Such written notice shall also be given to each tenant of the manufactured home park, in accordance with § 55.1-1202, at least 90 days prior to finally and unconditionally accepting an offer to sell the manufactured home park, and accepting any such offer shall be contingent upon the manufactured home park owner sending such notice and granting the purchase opportunity required by this section. A manufactured home park owner shall consider any offers to purchase received during such 90-day notice period. For purposes of this section, "third party" does not include a member of the manufactured park owner's family by blood or marriage or a person or entity that owns a portion of the park at the time of the offer or listing of such manufactured home park. Nothing shall be construed to require any subsequent Such notice by the manufactured home park owner after the written notice provided in this section shall state the price, terms, and conditions of the offer the manufactured home park owner has conditionally accepted or intends to accept. Such notice shall be given by certified mail at least 90 days before the closing date on such purchase contract to the Department of Housing and Community Development, which shall place the information on its website within five business days of receipt. Such written notice shall also be given by certified mail to the locality in which the manufactured home park is located and to each manufactured home park tenant and by personal delivery to each manufactured home in the manufactured home park. No offer shall be accepted or conditionally accepted by the manufactured home park owner (i) unless the price, terms, and conditions are universal and applicable to all potential buyers or (ii) if the contract contains any provision penalizing the manufactured home park owner for accepting an alternative offer from any potential buyers described in subsection C.

B. If a manufactured home park owner receives an offer to purchase the park, acceptance of that offer shall be contingent upon the park owner sending written notice of the proposed sale and the purchase price in the real estate purchase contract at least 60 days before the closing date on such purchase contract to the Department of Housing and Community Development, which shall place the information on its website within five business days of receipt. Such written notice shall also be given to each tenant of the manufactured home park. C. During the 60-day 90-day notice period provided by subsection B, the park owner shall consider additional offers to purchase the park made by an entity, formal or informal, including one formed after the issuance of the notice required by this subsection, that provides documentation that it represents at least 25 percent of the tenants with a valid lease in the manufactured home park at the time any such offer is made, but shall not be obligated to consider additional offers after the expiration of the 60-day notice period. Nothing shall be construed to require any subsequent notice by the manufactured home park owner after provision of the written notice required by this section, or by a local government or nonprofit organization to which such an entity has assigned its rights under this section, may make an offer to purchase the park.

D. If a potential buyer as described in subsection C makes an offer to purchase the manufactured home park, the manufactured home park owner shall consider such offer and negotiate with such potential buyer in good faith. If the manufactured home park owner declines to accept such offer, the manufactured home park owner shall do so in writing and shall state the good faith reasons for such rejection.

E. If a potential buyer described in subsection C delivers a proposed purchase agreement to the manufactured home park owner and such proposed purchase agreement matches the price and is substantially similar in terms and conditions to the offer the manufactured home park owner conditionally accepted or plans to accept, the potential buyer shall have the right to purchase the manufactured home park at the price, terms, and conditions stated in its offer, and this subsection shall apply rather than subsection D.

F. If a potential buyer described in subsection C enters into a purchase agreement with the manufactured home park owner to buy the manufactured home park, such potential buyer shall have 90 days from the date of the agreement to arrange all necessary financing and a commercially reasonable time to close on the sale. If the potential buyer fails to arrange all necessary financing during such 90-day period, or such longer period as agreed to by the parties, or fails to close on the sale within a commercially reasonable time agreed to by the parties, the manufactured home park owner shall have no further duties under this section with respect to the proposed sale, lease, or transfer of the manufactured home park. No manufactured home park owner shall unreasonably delay the execution or closing on a purchase agreement with a potential buyer described in subsection C.

G. The Department of Housing and Community Development shall publish a plain-language notice in English, Spanish, and any other language the Department deems appropriate that complies with subsection B.

H. The manufactured home park owner shall not be obligated to consider additional offers after the expiration of the 90-day notice period set forth in subsection B.

I. The requirements of this section shall apply separately to each substantially different offer to sell or purchase the manufactured home park.

J. 1. A purchaser of a manufactured home park shall record in the circuit court clerk's office of the locality in which the manufactured home park is located an affidavit submitted by the seller in which the seller has certified that he has complied with the requirements of this section. Such affidavit shall include a copy of the notice sent pursuant to subsection B.

2. Such affidavit shall be presumptive evidence of compliance for purposes of good title in the hands of a bona fide purchaser.

3. Failure of a purchaser of a manufactured home park to record an affidavit shall be presumptive evidence of noncompliance with this section.

K. The provisions of this section shall be liberally construed to achieve the purpose of preserving affordable housing and expanding the opportunities for owners of manufactured homes to purchase the manufactured home park in which their manufactured homes are located. The provisions of this section shall be severable and if any provision or its application to any person or circumstance is held invalid, the validity of the remainder of the section or the application of the provision to other persons or circumstances shall not be affected thereby.

L. If a manufactured home park owner fails to comply with the provisions of this section, any person with a valid lease for a lot in the manufactured home park may file an action in the circuit court for the locality in which the manufactured home park is located seeking injunctive relief, damages, or both. Such damages shall include actual damages and statutory damages equal to 12 times the amount of the monthly lot rent paid by the lease holder or a reasonable amount as determined by the Department of Housing and Community Development. The prevailing party shall also be entitled to an award of attorney fees.

M. If a manufactured home park owner fails to comply with any requirement set forth in this section, a locality may bring an action in the circuit court for the locality in which the manufactured home park is located to enforce the manufactured home park owner's obligations under this section provided that the manufactured home park is located within the jurisdictional boundaries of the locality and the locality has notified the manufactured home park owner of its intent the enforce the manufactured home park owner's obligations under this section. Such enforcement action may include seeking an injunction, damages, or both.