Bill Text: VA HB1397 | 2024 | Regular Session | Enrolled
Bill Title: Manufactured Home Lot Rental Act; manufactured home park, notice of sale and relocation expenses.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2024-04-17 - Governor: Acts of Assembly Chapter text (CHAP0833) [HB1397 Detail]
Download: Virginia-2024-HB1397-Enrolled.html
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 and the Code of Virginia is amended by adding sections numbered 55.1-1308.3, 55.1-1308.4, and 55.1-1308.5 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. Right of first refusal for localities in Planning District 8.
A. A This section does not apply to the sale of a
manufactured home park in Planning District 8 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. For manufactured home parks in Planning District 8, 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 accepting an offer. 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
notice by the manufactured home park owner after the written notice provided in
this section accepts an offer made in writing to purchase the
manufactured home park from a third party other than an entity described in §§
55.1-1308.3 and 55.1-1308.4 shall accept such offer contingent upon providing
the notice and opportunity to purchase required by this section. Within five
business days of entering into a sales contract to sell such manufactured home
park, the manufactured home park owner shall provide notice to the locality in
which such manufactured home park is located of such sales contract and of the
locality's right to purchase the manufactured home park. Such notice shall
describe the terms of the sales contract, including the price and all material
terms and conditions of the contract and shall be delivered to the city, town,
or county attorney, if such position exists, otherwise to the mayor, manager,
or trustee of, if the locality is a county, or to its attorney for the Commonwealth.
The manufactured home park owner shall also deliver the notice required by this
section to the Department of Housing and Community Development, which shall
place the information on its website within five business days of receipt.
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. During the 60-day notice period, the park owner shall
consider additional offers to purchase the park made by an entity 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.
C. If, no later than the ninetieth day following receipt of the notice required by this section, 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 manufactured home park 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 (i) if the locality uses state funds for such purpose, such locality may only use nongeneral funds, as such funds are appropriated, for the purchase of the manufactured home park and (ii) the purchase agreement contains a commitment from the locality to preserve the property as a manufactured home park for at least 15 years following the sale unless a majority of the tenants with a valid lease in the manufactured home park assert in writing that they consent to the conversion of the manufactured home park to an alternative form of affordable housing. Such commitment shall also be required of any assignee to which a locality assigns its rights under subsection F.
D. 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 to enforce the manufactured home park owner's obligations under this section. Such enforcement action may include seeking an injunction, damages, or both.
E. If a locality that purchased a manufactured home park pursuant to subsection C 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 C, 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.
F. A locality may assign its rights and responsibilities under this section to a corporation designated as a §501(c)(3) organization by the Internal Revenue Service that provides housing or related services to low-income residents of Virginia.
G. If a locality does not exercise or assign the rights provided to it through this section, the locality shall record with the circuit court of the locality in which the manufactured home park is located an affidavit submitted to the locality by the seller in which the seller has certified that he has complied with the requirements of this section. The recordation of such affidavit shall be presumptive evidence of compliance for purposes of good title in the hands of a bona fide purchaser and failure to record such affidavit shall be presumptive evidence of noncompliance with this section.
H. For purposes of this section, "locality" means the same as that term is defined in §15.2-102.
§55.1-1308.3. Notice of sale to residents.
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 accepts an offer to purchase the manufactured home park from a third party shall accept such offer contingent upon providing the notice required by this section. Such notice shall describe the terms of the sales contract, including the price and all material terms and conditions of the contract and state that the locality has a right of first refusal if the manufactured home park is located in Planning District 8, and the manufactured home park owner shall give such notice to each manufactured home park tenant by certified mail and to each manufactured home in the manufactured home park by personal delivery.
C. If the sales contract contains any provision penalizing the manufactured home park owner for accepting an alternative offer from any entity, formal or informal, including one formed after the issuance of the notice required by subsection B, that provides documentation that its members include at least 25 percent of the tenants with a valid lease in the manufactured home park, such penalty provision shall be void and unenforceable.
D. 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.
§55.1-1308.4. Opportunity to purchase for residents.
A. Notwithstanding any other provision of law, if at any time an entity, formal or informal, including one formed after the issuance of notices of sale pursuant to §§55.1-1308.2 and 55.1-1308.3, that provides documentation that its members include at least 25 percent of the tenants with a valid lease in a manufactured home park makes an offer to purchase such manufactured home park, the manufactured home park owner shall consider such offer and negotiate with such entity 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. The written denial shall be provided to one or more officers of the entity.
B. 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.
C. All manufactured home park owners shall provide written notice of the rights provided by this section by mail to each manufactured home park tenant and by personal delivery to each manufactured home in the manufactured home park at least once each year and shall post written notice of the rights provided by this section in prominent places around the manufactured home park.
§55.1-1308.5. Affidavit of compliance with notice requirements in Planning District 8.
A. A seller of a manufactured home park located in Planning District 8 shall record with the circuit court 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 §§ 55.1-1308.3 and 55.1-1308.4. Such affidavit shall include a copy of the notice sent pursuant to such sections.
B. Such affidavit shall be presumptive evidence of compliance for purposes of good title in the hands of a bona fide purchaser. Failure of a seller of a manufactured home park to record such affidavit shall be presumptive evidence of noncompliance with this section.
