March 27, 2025
Mrs. Shaheen (for herself, Mr. Blumenthal, and Mr. Fetterman) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
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 homes;
(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).