119-hr2461

[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>