,i #aafth ,,congress #ast ,session ,h4 ,r4 #bhcb ,,in ,,the ,,house ,,of ,,representatives ,may #ag1 #bjai,ms4 ,omar 7for herself1 ,ms4 ,lee of ,california1 ,mr4 ,neguse1 ,mr4 ,pocan1 ,mr4 ,pappas1 ,ms4 ,kuster of ,new ,hampshire1 ,mr4 ,de,fazio1 and ,mr4 ,khanna7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow a business credit for gain from the sale of real property for use as a manufactured home community1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,frank ,adelmann ,manufactured ,housing ,community ,sustainability ,act4 #b4 ,findings ,the ,congress finds that-- 7#a7 more than #ag million people live in manufactured homes1 benefitting from high-quality affordable homes that can provide them stability2 7#b7 owners of manufactured homes are disproportionately low-income households3 in #bjac1 the median annual household income for those living in manufactured housing was #bh1djj2 7#c7 about #ge percent of manufactured home households earn less than #ej1jjj2 7#d7 over #aj percent of ,united ,states veterans live in manufactured homes2 7#e7 in the late #aiijs1 manufactured housing represented two-thirds of the new affordable housing produced in the ,united ,states1 and it remains the largest source of unsubsidized affordable housing in the country2 7#f7 as of #bjae1 the average cost per square foot for a new manufactured home was #dh1 less than half the #aja per square foot of the structure-only cost of a new site-built home2 7#g7 in #bjji1 #dc percent of all new homes that sold for less than #aej1jjj were manufactured homes2 7#h7 manufactured homes accounts for #bc percent of new home sales under #bjj1jjj2 7#i7 more than #ej1jjj manufactured home communities1 or mobile home parks1 exist throughout the ,united ,states2 7#aj7 more than #b4i million manufactured homes are placed in manufactured home communities2 7#aa7 manufactured home communities provide critical affordable housing but receive very little local1 ,state1 or ,federal funds subsidizing the cost of these homes2 7#ab7 manufactured home owners in communities may own the home1 but they do not own the land under their homes1 leaving them vulnerable to rent increases1 arbitrary rule enforcement1 and even closure of the community if the community owner decides to convert the land to some other use2 7#ac7 eviction or closure of manufactured home communities is very disruptive to residents who may be unable to pay the thousands of dollars it takes to move their home or even find a new location for their home2 7#ad7 in the past two decades1 a national network of housing providers has helped residents purchase and own the land and manage the community in order to preserve a crucial source of affordable housing2 7#ae7 nationwide1 there are more than #a1jjj of these stable1 permanent ownership cooperatives or nonprofit-owned developments in more than a dozen ,states2 7#af7 members continue to own their own homes individually and an equal share of the land beneath the entire neighborhood where everyone has a say in the way the resident-owned community is run1 and major decisions are made by democratic vote by a member-elected board of directors2 7#ag7 in ,new ,hampshire1 more than #bj percent of manufactured home communities are owned by residents2 7#ah7 in ,vermont1 ,massachusetts1 ,rhode ,island1 ,washington1 ,oregon1 and ,minnesota1 resident-owned cooperatives and nonprofit ownership have flourished2 7#ai7 nationwide1 only #b percent of all manufactured home communities are resident- or nonprofit-owned2 7#bj7 owners are frequently reluctant to sell the community because they would prefer to pass the property on to their heirs tax free and avoid capital gains taxes2 7#ba7 when the owner dies1 the heirs frequently sell the community to the highest bidder resulting in displacement for dozens and sometimes hundreds of families2 and 7#bb7 a ,federal tax benefit needs to be established to induce owners to sell to residents they have known for decades or to nonprofit organizations in order to preserve the community for years to come4 #c4 ,tax credit for manufactured home community sale to residents or nonprofit entity 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to business related credits7 is amended by adding at the end the following new section3 #de,t4 ,manufactured home community sale to residents or nonprofit entity 7a7 ,allowance of credit ,for purposes of section #ch1 the manufactured home community sale credit determined under this section for any taxable year is an amount equal to #ge percent of the qualified gain received by the taxpayer during the taxable year4 7b7 ,definitions ,for purposes of this section-- 7#a7 ,qualified gain ,the term qualified gain means gain from the sale or exchange of real property to a qualified manufactured home community cooperative or corporation if-- 7,a7 the real property is acquired for use as a manufactured home community1 and 7,b7 the requirements of paragraph 7#b7 are met4 7#b7 ,requirements ,the requirements of this paragraph are met if-- 7,a7 the seller 7or any related person7 owned the property for not less than the #b-year period ending before the sale or exchange1 and 7,b7 the property is transferred subject to a binding covenant that the property will be used as a manufactured home community for a term of not less than #ej years 7or1 in the case of a manufactured home community located in a ,state the laws of which restrict such covenant to a lesser term1 the maximum permissible term allowed under such ,state laws74 7#c7 ,manufactured home community ,the term manufactured home community means a community comprised primarily of manufactured homes used solely for residential purposes and owned by a manufactured home community cooperative or corporation4 7#d7 ,manufactured home community cooperative or corporation 7,a7 ,in general ,the term qualified manufactured home community cooperative or corporation means a cooperative or a nonprofit corporation established pursuant to the laws of the ,state in which the property used as a manufactured home community is located and which-- 7i7 in the case of a community owned by a nonprofit corporation whose membership interests are sold on a nonappreciating basis1 has only one class of membership consisting of residents1 and 7ii7 in the case of a community owned by a cooperative1 has no more than two classes of membership1 which includes both members and a tax-exempt organization actively engaged in supporting affordable housing and resident-owned manufactured home communities4 7,b7 ,governance ,an entity shall not be treated as a qualified manufactured home community cooperative or corporation for purposes of subparagraph 7,a7 unless governance of the entity is carried out by members elected to a board of directors with voting structured equitably among all members4 7,c7 ,member ,the term member means-- 7i7 an individual-- 7,i7 has attained the age of #ah1 7,,ii7 is entitled by reason of the individual's membership interest to execute an occupancy agreement with the manufactured home community cooperative nonprofit with respect to one site in the manufactured home community for the purposes of situating a manufactured home owned by the member or1 as permitted by the manufactured community cooperative or corporation1 the member's trust or other entity1 and 7,,iii7 is a resident of the manufactured home community1 and 7ii7 a tax exempt organization4 7#e7 ,membership interest ,the term membership interest means an ownership interest in a manufactured home community cooperative or corporation or a membership interest in a manufactured home community nonprofit corporation4 7#f7 ,manufactured home ,the term manufactured home means a structure1 transportable in one or more sections1 which-- 7,a7 in the traveling mode1 is #h body feet or more in width and #dj body feet or more in length1 or when erected on site1 is #cbj square feet or more1 7,b7 is built on a permanent chassis and designed to be used as a dwelling 7with or without a permanent foundation when connected to required utilities7 and includes plumbing1 heating1 and electrical heating systems1 and 7,c7 in the case of a structure manufactured after ,june #ae1 #aigf1 is certified as meeting the ,manufactured ,home ,construction and ,safety ,standards issued under the ,national ,manufactured ,housing ,construction and ,safety ,standards ,act of #aigd 7#db ,u4,s4,c4 #edja-edbf7 by the ,department of ,housing and ,urban ,development and displays a label of such certification on the exterior of each transportable section4 7c7 ,special rules 7#a7 ,related person ,for purposes of subsection 7b77#b77;,a71 a person 7hereafter in this subparagraph referred to as the related person7 is related to the seller if-- 7,a7 the related person bears a relationship to the seller specified in section #bfg7;b7 or #gjg7;b77#a71 or 7,b7 the related person and the seller are engaged in trades or businesses under common control 7within the meaning of subsections 7a7 and 7b7 of section #eb74 7#b7 ,election by both seller and buyer ,the credit is allowable under this section only if-- 7,a7 elected by both the seller and the buyer of the real property and evidenced by an affidavit executed by both parties1 and 7,b7 the buyer of the real property records the affidavit and the affidavit is referenced in its deed to the real property4 ,the seller shall elect the credit under this section on its return of tax4 7d7 ,tax upon violation of covenant ,there is imposed a tax on the buyer for a violation of the covenant specified in subsection 7b77#b77;,b74 ,the amount of such tax shall be #bj percent of the net proceeds after settlement for the sale or exchange of the real property referred to in subsection 7b77#b74 ,for purposes of section #eja7;a71 the tax imposed by this subsection shall not be treated as a tax imposed by this subtitle4 7e7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary to carry out this section1 including the recapture of the tax benefit under this section in any case in which the real property described in subsection 7b7 is not used as a manufactured home community for at least #ej years4 4 7b7 ,credit allowed as part of general business credit ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the manufactured home community sale credit determined under section #de,t7a74 4 7c7 ,conforming amendments 7#a7 ,subsection 7c7 of section #aif of such ,code is amended by striking and at the end of paragraph 7#ac71 by striking the period at the end of paragraph 7#ad7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ae7 the manufactured home community sale credit determined under section #de,t7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,t4 ,manufactured home community sale to residents or nonprofit entity4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4