,,ii #aaith ,,congress #b;d ,session ,s4 #dfac ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bj1 #bjbf ,mrs4 ,shaheen 7for herself1 ,mr4 ,king1 and ,mr4 ,blumenthal7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,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 ,manufactured ,housing ,community ,sustainability ,act of #bjbf4 #b4 ,findings ,congress finds that-- 7#a7 more than #bb1jjj1jjj people live in ,,hud-code manufactured homes2 7#b7 there are approximately #f1gjj1jjj occupied manufactured homes in the ,united ,states1 representing about #f percent of the ,nation's housing stock1 #i percent of the single-family housing stock1 and more than #ab percent of all new single-family homes sold in #bjba2 7#c7 owners of manufactured homes are disproportionately low-income households1 and in #bjbj1 the median annual household income for living in manufactured housing was #ce1jjj2 7#d7 over one-quarter of manufactured homeowners earn less than #bj1jjj annually1 and two-thirds earn less than #ej1jjj annually2 7#e7 more than half of all manufactured homes are located in rural areas around the country1 and manufactured homes make up #ac percent of all occupied homes in rural and small-town communities2 7#f7 the average sales price of a new manufactured home 7excluding land7 in #bjai was #ha1gjj1 and as of ,december #bjbc1 that average sales price had increased to #aba1cjj1 an increase of #dh4e percent over the preceding #e years2 7#g7 despite this sharp increase1 the average manufactured home costs roughly half the price per square foot of the average site-built home2 7#h7 manufactured home communities provide critical affordable housing1 but receive very little ,federal1 ,state1 or local funds to subsidize the cost of manufactured homes2 7#i7 an estimated #dc1jjj manufactured home communities1 also referred to as mobile home parks1 exist throughout the ,united ,states2 7#aj7 owners of manufactured homes in such communities may own the home1 but they do not own the land under the home1 which leaves the homeowners vulnerable to rent increases1 disinvestment1 changes in land use1 and community closure2 7#aa7 an eviction or closure of a manufactured home community is very disruptive and can be financially devastating to a homeowner who may be unable to pay the thousands of dollars it takes to move the manufactured home or find a new location for the manufactured home2 7#ab7 manufactured housing where the consumer does not own the land generally does not promote wealth-building via homeownership2 7#ac7 for more than a decade1 in an effort to preserve a crucial source of affordable housing and aid low-income homeowners1 a national network of housing providers has helped residents purchase and own the land under the manufactured home community1 and manage the manufactured home community as limited equity cooperatives2 7#ad7 nationwide1 there are more than #a1jjj cooperative manufactured home communities1 of which more than #cfj1 located in more than #bj ,states1 are permanently preserved as affordable communities through limited equity cooperative or nonprofit ownership2 7#ae7 members of manufactured home community cooperatives continue to own such homes individually1 own an equal share of the land beneath the entire manufactured home community1 participate in the governing of the community1 and elect a board of directors who make major decisions within the manufactured home community by a democratic vote2 7#af7 site fee increases in limited equity resident-owned communities average just #j4i percent per year1 compared to #e4i percent per year in commercially owned communities2 7#ag7 in ,new ,hampshire1 more than #dj percent of manufactured home communities are owned by residents2 7#ah7 resident-owned cooperatives and nonprofit owned communities have also flourished in ,colorado1 ,vermont1 ,massachusetts1 ,montana1 ,rhode ,island1 ,washington1 ,oregon1 and ,minnesota2 7#ai7 nationwide1 only #b4d percent of all manufactured home communities are resident or nonprofit-owned2 7#bj7 #ai ,states have adopted some protection when a community is sold1 and #h ,states have strong notification and resident purchase opportunities1 which provide homeowners in those ,states an opportunity to purchase the manufactured home community when it is put up for sale2 and 7#ba7 in order to preserve manufactured home communities and help low-income homeowners live securely1 safely1 and build wealth through homeownership in the future1 a ,federal tax benefit should be established to induce manufactured home community owners to sell such properties to the residents when those residents or a nonprofit commits to preserving the community long-term4 #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;,,bb4 ,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 7,b7 the seller 7or any related person7 owned the property for the entire #b-year period ending on the day before the sale or exchange1 and 7,c7 the property is transferred subject to a binding covenant that the property will be used as a manufactured home community for 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#b7 ,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#c7 ,qualified 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 located1 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 #a class of membership and such class consists solely of residents1 and 7ii7 in the case of a community owned by a cooperative1 has not more than #b classes of membership1 and such classes consist solely of residents and a tax-exempt organization4 7,b7 ,governance ,an entity shall not be treated as a qualified manufactured home community cooperative or corporation 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 who-- 7,i7 has attained the age of #ah1 7,,ii7 is entitled to be a member by reason of-- 7aa7 the membership interest of the individual to execute an occupancy agreement with the manufactured home community cooperative nonprofit with respect to a site in the manufactured home community in order to establish a manufactured home which is owned by the individual1 or 7bb7 permission from the manufactured community cooperative or corporation1 the member's trust1 or other entity1 and 7,,iii7 is a resident of the manufactured home community1 and 7ii7 a tax-exempt organization4 7#d7 ,membership interest ,the term membership interest means-- 7,a7 an ownership interest in a manufactured home community cooperative or corporation1 or 7,b7 a membership interest in a manufactured home community nonprofit corporation4 7#e7 ,manufactured home ,the term manufactured home means a structure which is transportable in one or more sections1 which-- 7,a7 in traveling mode1 is #h body feet or more in width and #dj body feet or more in length1 or1 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 et seq47 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#a77;,b71 a person is related to the seller if-- 7,a7 such person bears a relationship to the seller as specified in section #bfg7;b7 or #gjg7;b77#a71 or 7,b7 such person and the seller are engaged in trades or businesses under common control within the meanings of subsections 7a7 and 7b7 of section #eb4 7#b7 ,election by both seller and buyer ,the credit is allowable under this section only if-- 7,a7 both the seller and the purchaser of the real property execute an affidavit representing that the sale meets the requirements of subsection 7b77#a71 and the purchaser acknowledges liability for the recapture of the credit under subsection 7d7 in case of any violation described in such subsection1 7,b7 the purchaser of the real property records the affidavit1 and 7,c7 the affidavit is referenced in the deed to the real property4 7#c7 ,requirement ,the seller shall include a copy of the affidavit representing the sale with the 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#a77;,c74 ,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#a74 ,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 under subsection 7d74 4 7b7 ,credit allowed as part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking plus at the end of paragraph 7#dj72 7#b7 by striking the period at the end of paragraph 7#da7 and inserting 1 plus2 and 7#c7 by adding at the end the following new paragraph3 7#db7 the manufactured home community sale credit determined under section #de;,,bb7a74 4 7c7 ,conforming amendments 7#a7 ,subsection 7c7 of section #aif of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking and at the end of paragraph 7#ac72 7,b7 by striking the period at the end of paragraph 7#ad7 and inserting 1 and2 and 7,c7 by adding at the end the following new paragraph3 7#ae7 the manufactured home community sale credit determined under section #de;,,bb7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de;,,bb4 ,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 #bjbf4