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2024 SESSION

24107465D
HOUSE BILL NO. 1397
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on General Laws
on February 8, 2024)
(Patron Prior to Substitute--Delegate Krizek)
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.

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, accepts an offer to purchase the manufactured home park from a third party shall accept such offer contingent upon providing the notice and opportunity to purchase required by this section. The manufactured home park owner shall provide notice of the sales contract containing such contingency at least 90 days prior to accepting an offer finalizing the contract for sale. 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 describe the terms of the sales contract, including the price and all material terms and conditions of the contract. 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. 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, such penalty provision shall be void and unenforceable.

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 nonprofit organization to which such an entity has assigned its rights under this section, may make an offer to purchase the park.

D. If the locality in which the manufactured home park is located delivers to the manufactured home park owner a proposed purchase agreement containing the same price and substantially similar terms and conditions as the purchase agreement of which the owner provided notice pursuant to subsection B, the locality shall have the right to purchase the manufactured home park at the price, terms, and conditions stated in its proposed purchase agreement, provided that the purchase agreement contains a commitment from the locality to preserve the property as a manufactured home park for at least 30 years following the sale.

E. If a potential buyer 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 declined to accept such offer, the manufactured home park owner shall do so in writing and shall state the good faith reasons for such rejection.

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 60 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 60-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 and Spanish 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. 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.

N. If a locality that purchased a manufactured home park pursuant to the right to purchase provided in subsection D, gives notice of its intent to change the use of all or part of the manufactured home park, pursuant to subsection B of § 55.1-1308, in violation of the commitment made in the purchase agreement provided to the manufactured home park owner under subsection D, 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. The prevailing party shall also be entitled to an award of attorney fees.

2. That the provisions of this act shall not become effective unless reenacted by the 2025 Session of the General Assembly.