Manufactured Housing Tenant's Bill of Rights Act of 2025
This bill requires manufactured home communities and home parks to meet minimum consumer protections to be eligible for certain federally-backed loans for the construction, substantial rehabilitation, or purchase of these communities.
Specifically, the Department of Housing and Urban Development is prohibited from insuring such a loan, and Fannie Mae and Freddie Mac are prohibited from purchasing such a loan, unless a borrower provides specified tenant protections, including
The bill sets forth penalties for violations of these protections.
The bill also establishes the Manufactured Home Community Lending Standards Commission to propose additional consumer protection standards.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2461 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2461
To ensure that federally backed financing for the construction,
rehabilitation, or purchase of manufactured home communities is
available only for communities whose owner has implemented minimum
consumer protections in the lease agreements with residents of all
manufactured home communities owned by such owner, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2025
Ms. Pettersen (for herself, Ms. Bonamici, Mr. Larson of Connecticut,
and Ms. Tlaib) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To ensure that federally backed financing for the construction,
rehabilitation, or purchase of manufactured home communities is
available only for communities whose owner has implemented minimum
consumer protections in the lease agreements with residents of all
manufactured home communities owned by such owner, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Manufactured Housing Tenant's Bill
of Rights Act of 2025''.
SEC. 2. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Affiliate.--Except as provided by the Secretary or the
Director, as applicable, the term ``affiliate'' means, with
respect to a borrower referred to in section 3(a), any entity
that controls, is controlled by, or is under common control
with, the borrower.
(2) Covered loan program.--The term ``covered loan
program'' means any of the following programs:
(A) The program under section 207 of the National
Housing Act (12 U.S.C. 1713) for insurance of loans for
financing for the construction or substantial
rehabilitation of manufactured home parks.
(B) The program of the Federal National Mortgage
Association for multifamily loans for manufactured home
communities.
(C) The program of the Federal Home Loan Mortgage
Corporation for loans for manufactured home
communities.
(3) Covered pricing incentive.--The term ``covered pricing
incentive'' means any pricing discount available to borrowers
under any of the covered loan programs that rewards the
borrower's implementation of 1 or more specific resident
protections and is designed to ensure that the benefits of a
covered loan program are provided at a lower cost for
manufactured home communities based on the extent to which
residents of a manufactured home community are better protected
from predatory rent increases and management practices.
(4) Director.--The term ``Director'' means the Director of
the Federal Housing Finance Agency.
(5) Enterprise.--The term ``enterprise'' has the meaning
given the term in section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4502).
(6) Manufactured home.--The term ``manufactured home''--
(A) has the meaning given the term in section 603
of the National Manufactured Housing Construction
Safety and Standards Act of 1976 (42 U.S.C. 5402); and
(B) includes any structure described in such
section 603 without regard to--
(i) whether the structure complies with any
standards under such Act; and
(ii) the date of the manufacture of the
structure.
(7) Manufactured home community.--The term ``manufactured
home community'' means any community, court, or park equipped
to accommodate manufactured homes for which pad sites or pad
sites and the manufactured homes, or both, are leased to
residents to be used primarily for residential purposes,
including any manufactured home community, as the term is used
for purposes of a program described in subparagraph (B) or (C)
of paragraph (2).
(8) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 3. REQUIREMENTS FOR COVERED LOAN PROGRAMS.
(a) Requirements.--On and after the date that is 180 days after the
date of enactment of this Act, no loan shall be eligible for insurance
by the Secretary or purchase by an enterprise, as applicable, under a
covered loan program unless--
(1) the borrower under the loan certifies to the Secretary
or the applicable enterprise that the borrower will include, in
any lease agreement for a pad site, or a pad site and
manufactured home, located in any manufactured home community
that the borrower or an affiliate of the borrower owns, the
minimum consumer protections described in subsection (b); and
(2) the borrower complies with regulations issued by the
Secretary or the Director, as applicable, that require the
borrower to submit documentation to the Secretary, or to the
applicable enterprise and the Director, that is sufficient, as
determined by the Secretary or the Director, to ensure that the
borrower is complying with the certification described in
paragraph (1), which shall include a copy of the standard lease
agreement used by the borrower that includes the minimum
protections described in subsection (b).
(b) Minimum Consumer Protections.--
(1) In general.--The minimum consumer protections described
in this subsection are as follows:
(A) 1-year lease terms that are renewable for
additional 1-year terms unless there is good cause for
non-renewal.
(B)(i) A right to receive written notice of any
newly required charges (including water and other
utilities) or increase in the rents for pad sites, or
pad sites and manufactured homes, located in the
community, including a written justification of the
increase with information on increases in the costs of
operating, maintaining, or improving the community.
(ii) A written notice described in clause (i)
shall--
(I) be provided to the tenant not less than
60 days before the effective date of any newly
required charge or increase in the rents,
except that, in the case of any increase
exceeding 5 percent of the previous monthly
rent, an additional 30-days notice shall be
provided for each additional 2.5-percent
increase in the rent; and
(II) include identification of the amount
of, and a description of, any newly required
charges (including water and other utilities)
that the tenant is not currently responsible
for but will be responsible for upon the rent
increase and, if available, an estimate of the
monthly amount of those charges.
(iii) For purposes of the calculation in clause
(i)(I)--
(I) the amount of any increase in the
monthly rent for a dwelling unit shall be
considered to include any newly required
charges described in clause (i)(II); and
(II) any newly required charges without an
estimate of the monthly amount shall be
estimated at 5 percent of the previous monthly
rent.
(C) A 5-day grace period for rent payments.
(D) A right to cure defaults on rent payments
within 15 days of the due date.
(E) A right for a tenant who owns a manufactured
home to sell a manufactured home owned by the tenant
without having to first relocate the manufactured home
out of the community.
(F) A right for a tenant who owns a manufactured
home to sell a manufactured home owned by the tenant in
place within a reasonable time period, but not earlier
than 45 days, after eviction by the owner of the
manufactured home community.
(G) A right for a tenant who owns a manufactured
home--
(i) to sublease or assign the pad site
lease for the unexpired term to a new buyer of
the manufactured home unless the prospective
tenant fails to meet the reasonable and
uniformly applied application criteria of the
manufactured home community; and
(ii) in such a case of denial, a right to
written notice provided by the owner of the
manufactured home community informing the
tenant of the denial and the prospective tenant
of the denial and the specific reason or
reasons for denial.
(H) A right for a tenant who owns a manufactured
home to post ``For Sale'' signs.
(I) A right to receive 60-day advance written
notice of the planned sale or closure of the
manufactured home community, which shall--
(i) include the price, terms and conditions
for the sale of the manufactured home
community; and
(ii) provide that--
(I) no final acceptance of an offer
to sell the manufactured home community
may be made for 60 days; and
(II) the owner shall negotiate in
good faith with the tenants if they
wish to purchase the manufactured home
community during that 60-day period;
(J)(i) A right against termination of tenancy
except in cases in which a tenant engages in a material
noncompliance with the rental agreement, a tenant
commits a material violation of the manufactured home
community reasonable rules or regulations, or the
community has a material, legitimate, and uniformly
applied business reason for termination that was
included in the lease agreement as grounds for
termination.
(ii) In the case of a termination described in
clause (i), a right to written notice provided by the
owner of the community informing the tenant of the
termination and the specific reason or reasons for
termination.
(2) Rule of construction.--Nothing in this subsection may
be construed to annul, alter, or affect any State or local law
providing greater protections to tenants of manufactured home
communities than the protections afforded under this
subsection.
(c) Pricing Incentives.--
(1) In general.--Any covered pricing incentive offered for
loans purchased under a covered loan program on or after the
date that is 180 days after the date of enactment of this Act
shall reward implementation of resident protections that are
more protective than those specified in subsection (b).
(2) Prohibition.--Any covered pricing incentive described
in paragraph (1) that does not comply with the requirement
described in that paragraph may not be offered for any loan
purchased under a covered loan program on or after the date
that is 180 days after the date of enactment of this Act.
(d) Publication.--
(1) In general.--The Secretary and the Director shall make
the list of properties covered by the protections described in
subsection (b) publicly available on a single website.
(2) Other covered properties.--Properties that are covered
as of the date of enactment of this Act by the Federal National
Mortgage Association's Tenant Site Lease Protections or the
Federal Home Loan Mortgage Corporation's MHC Tenant Protections
shall--
(A) be made publicly available; and
(B) include an explanation of the differences
between those protections and the minimum consumer
protections described in subsection (b).
(e) Penalties.--
(1) In general.--The Secretary and the Director shall--
(A) prohibit a borrower or an affiliate of the
borrower from securing future federally backed
financing or other housing-related Federal assistance
for a period of not less than 2 years beginning on the
date of the violation or failure if the borrower or
affiliate, as applicable, willfully and materially--
(i) violates a consumer protection
described in subsection (b); or
(ii) fails to include the consumer
protections described in subsection (b) in any
lease agreement; and
(B) determine appropriate penalties for any
borrower who fails to--
(i) include the consumer protections
described in subsection (b) in any lease
agreement; or
(ii) comply with a lease agreement
including the protections described in
subsection (b).
(2) Nature of penalties.--The penalties determined under
paragraph (1)(B) shall be in addition to minimum payments to
the injured tenant as follows:
(A) For a material violation of subparagraph (A) or
(J) of subsection (b)(1), 6 months of the current
monthly rent.
(B) For a material violation of subsection
(b)(1)(B), any increased rent must be paid back to the
tenant with interest, plus 25 percent.
(C) For a material violation of subsection
(b)(1)(C), any penalties or late fees must be paid back
to the tenant with interest, plus 25 percent.
(D) For a material violation of subparagraph (D),
(E), or (F) of subsection (b)(1), the greater of--
(i) the sale price of the manufactured
home, if the borrower or an affiliate sells it
within 12 months of the violation; or
(ii) 12 months of the prior monthly rent.
(E) For a material violation of subparagraph (G) or
(H) of subsection (b)(1), the total remaining monthly
rent owed on the tenant's lease.
(F) For a material violation of subsection
(b)(1)(I), the greater of 2 months rent or 10 percent
of the sale price of the community divided by the
number of tenants in the manufactured home community.
SEC. 4. MANUFACTURED HOME COMMUNITY LENDING STANDARDS COMMISSION.
(a) Establishment.--There is established a commission to be known
as the Manufactured Home Community Lending Standards Commission.
(b) Duties.--
(1) Proposed standards.--Not later than 1 year after the
date of enactment of this Act, the Commission shall submit to
Congress, the Secretary, and the Director a report that sets
forth proposed consumer protection standards for covered loan
programs that--
(A) are in addition to and provide greater
protection than the requirements described in section
3(b); and
(B) could be used as a basis for establishing
covered pricing incentives under the covered loan
programs that comply with section 3(c).
(2) Standard for determinations.--Any determination by the
Commission to approve a consumer protection in the proposed
standards required under paragraph (1) shall be made by a vote
of a simple majority of the members of the Commission.
(c) Membership.--
(1) Number and appointment.--The Commission shall be
composed of 16 members, as follows:
(A) The Secretary (or the Secretary's designee).
(B) The Director (or the Director's designee).
(C) 1 representative from each enterprise.
(D) 3 each shall be appointed by the Speaker of the
House of Representatives, the minority leader of the
House of Representatives, the majority leader of the
Senate, and the minority leader of the Senate. Of the 3
members appointed by each such officer--
(i) 1 shall be employed at the time of
appointment as a professor or academic
researcher with demonstrated background in
housing and consumer protection issues,
especially as they relate to manufactured home;
(ii) 1 shall be a current or former member
of Congress; and
(iii) 1 shall be a current resident and
homeowner at a manufactured home community.
(2) Chairperson and co-chairperson.--
(A) Chairperson.--The chairperson of the Commission
shall be designated by the President from among the
members of the Commission.
(B) Co-chairperson.--The co-chairperson of the
Commission shall be selected as follows:
(i) Designation by speaker of the house.--
If, on the date of appointment, the Speaker of
the House of Representatives is of a different
political party than the President, the Speaker
of the House of Representatives shall designate
the co-chairperson from among the members of
the Commission.
(ii) Designation by minority leader of the
house.--If, on the date of appointment, the
Speaker of the House of Representatives is of
the same political party as the President, the
minority leader of the House of Representatives
shall designate the co-chairperson from among
the members of the Commission.
(3) Timing of appointments.--Appointments to the Commission
shall be made not later than 45 days after the date of
enactment of this Act.
(4) Terms; vacancies.--
(A) Terms.--Each member shall be appointed for the
life of the Commission.
(B) Vacancies.--Any vacancy in the Commission
shall--
(i) not affect the powers of the
Commission; and
(ii) be filled within 45 days of the
vacancy in the manner in which the original
appointment was made.
(5) Hearings.--
(A) In general.--In carrying out the duties of the
Commission under this section, the Commission is
authorized to hold such hearings and take testimony
with respect to matters to which it has a
responsibility under this section.
(B) Oaths.--The chairperson of the Commission, or
any member of the Commission authorized by the
chairperson, may administer oaths or affirmations to
witnesses appearing before the Commission.
(6) Prohibition of compensation.--Members of the Commission
shall serve without pay.
(d) Operation and Powers.--
(1) Meetings.--The Commission shall meet not later than 30
days after the date upon which a majority of the members of the
Commission have been appointed and at such times thereafter as
the chairperson or co-chairperson shall determine. Detailed
minutes of each meeting of the Commission, except for any
closed session, shall be kept and shall include a record of the
persons present and a complete and accurate description of
matters discussed.
(2) Rules of procedure.--The chairperson and co-chairperson
of the Commission shall, with the approval of a majority of the
members of the Commission, establish written rules of procedure
for the Commission, which shall include a quorum requirement to
conduct the business of the Commission.
(3) Hearings.--
(A) Frequency.--The Commission shall hold no fewer
than 2 hearings on matters to carry out the duties of
the Commission under subsection (b).
(B) Testimony.--The Commission may take testimony
and receive evidence as the Commission considers
appropriate.
(C) Notice.--
(i) Hearings.--Timely public notice of each
hearing of the Commission, including the time,
place, and agenda of the meeting, shall be
provided by any means determined by the
Commission to provide for wide publicity.
(ii) Meetings.--Timely notice of each
regular meeting of the Commission shall be
published in the Federal Register.
(iii) Comments.--Interested persons shall
be permitted to submit written statements
regarding the matters on the agenda of the
hearings of the Commission.
(e) Termination.--The Commission shall terminate upon the
submission of the report required under subsection (b)(1).
SEC. 5. FUNDING.
(a) Prohibition.--No additional funds are authorized to be
appropriated to carry out this Act.
(b) Use of Existing Funds.--Any expenses required to carry out this
Act shall be funded using amounts otherwise available to the Department
of Housing and Urban Development or to the Federal Housing Finance
Agency.
SEC. 6. STANDARD LEASE.
(a) In General.--The Director shall, in consultation with the
enterprises, develop a standard site-lease agreement that the
enterprises will certify provides sufficient certainty to ensure that
the mortgage loans secured by homes in manufactured home communities
utilizing the standard lease will be eligible for purchase under the
single-family mortgage programs of the enterprises.
(b) Submission to Congress.--Not later than 1 year after the date
of enactment of this Act, the Director shall submit to the Committee on
Banking, Housing, and Urban Affairs and the Committee on Financial
Services of the House of Representatives a copy of the standard site-
lease agreement developed under subsection (a).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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