Manufactured Housing Community Sustainability Act of 2026

Encouraging Community Ownership: The bill provides a tax credit equal to 75 percent of the qualified gain to induce owners to sell properties to residents or nonprofits (Section 3(a)). This is intended to help low-income homeowners secure their housing and build wealth through homeownership (Section 2(21)).

Housing Stability: By requiring a binding covenant that the property be used as a manufactured home community for at least 50 years, the bill aims to preserve affordable housing and protect residents from the disruption of community closures (Section 3(b)(1)(C)).

Lower Site Fees: The bill notes that resident-owned limited equity communities have much lower average annual site fee increases (0.9 percent) compared to commercially owned communities (5.9 percent) (Section 2(16)).

Democratic Governance: The provision requires that the new owners (cooperatives or nonprofits) be governed by a board of directors elected by the members, ensuring residents have a voice in major decisions (Section 3(b)(3)(A)(ii)).

Financial Penalty for Violating Land Use: If the buyer violates the requirement to use the property as a manufactured home community for the required term, they are subject to a tax of 20 percent of the net proceeds (Section 3(d)).

Strict Ownership Requirements for Credit: To receive the credit, the seller must have owned the property for the entire 2-year period ending on the day before the sale (Section 3(b)(1)(B)).