Tax credit would reward mobile home park sales to residents or nonprofits

What does this do?

HR 8988 creates a federal tax credit equal to 75 percent of a seller's profit when a mobile home park is sold to a resident-run cooperative or nonprofit organization. To qualify, the seller must have owned the property for at least two years, and the buyer must commit by legally binding covenant to keep the land as a manufactured home community for at least 50 years. The buyer must also operate with democratic voting and a resident-elected board of directors.

Who does it affect?

The bill directly affects the roughly 22 million Americans who live in manufactured homes, particularly lower-income households who rent the land beneath their homes. It also affects current park owners and nonprofit housing organizations that help communities transition to cooperative ownership.

Why does it matter?

Park owners who would otherwise sell to commercial developers now have a financial incentive to sell to residents instead, which could reduce instances of sharp rent increases or community closures. Resident-owned cooperatives would control their own lot fees, which may affect housing stability for lower-income manufactured home residents.

What does it cost, and who pays?

• Seller credit: 75% of sale profit
• Covenant breach penalty: 20% of future sale
• Minimum ownership to qualify: 2 years

Where does it stand?