1604-S.E AMS FIH S3031.1

1604-S.E AMS FIH S3031.1

ESHB 1604 - S COMM AMD

By Committee on Financial Institutions & Housing

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 59.23.015 and 1993 c 66 s 3 are each amended to read as follows:

If a qualified tenant organization gives written notice to the mobile home park owner where the tenants reside that they have a present and continuing desire to purchase the mobile home park, the park may then be sold only according to this chapter. This notice must be given to the mobile home park owner before execution of any sale documents to a third party, including an earnest money agreement or purchase and sale agreement.

"Notice" for the purposes of this section means a writing signed by owners of mobile homes located on at least sixty percent of the ((~~tenants~~)) occupied lots in the park indicating that they desire to participate in the purchase of the park, and that they are ((~~contractually~~)) bound to the qualified tenant organization and to the other signators of the notice to participate by purchasing an ownership interest ((~~that will entitle them to occupy a mobile home space for the remainder of their life or for a term of at least fifteen years~~)) in the park.

NEW SECTION. Sec. 2. A new section is added to chapter 59.23 RCW to read as follows:

If a mobile home park owner engages a real estate agent, attorney, or other person in a contractual arrangement to sell his or her mobile home park; engages in a discussion with one or more of these individuals regarding the potential sale of his or her mobile home park; or places an advertisement for the sale of his or her mobile home park in a newspaper, newsletter, magazine, trade journal, or other media; the mobile home park owner shall immediately provide written notification of the potential sale of the mobile home park to all tenants of the park.

Sec. 3. RCW 59.23.025 and 1993 c 66 s 5 are each amended to read as follows:

If notice of a desire to purchase has been given under RCW 59.23.015, a park owner shall notify the qualified tenant organization that an agreement to purchase and sell has been reached and the terms of the agreement, including the availability and terms of seller financing, before closing a sale with any other person or entity. If, within ((~~thirty~~)) ninety days after the actual notice has been received, the qualified tenant organization tenders to the park owner an amount equal to two percent of the agreed purchase price, refundable only according to this chapter, together with a fully executed purchase and sale agreement at least as favorable to the park owner as the original agreement, the mobile home park owner must sell the mobile home park to the qualified tenant organization. The tenant organization must then close the sale on the same terms as outlined in the original agreement between the park owner and the prospective purchaser. In the case of seller financing, a mobile home park owner may decline to sell the mobile home park to the qualified tenant organization if, based on reasonable and objective evidence, to do so would present a greater financial risk to the seller than would selling on the same terms to the original offeror.

If the qualified tenant organization fails to perform under the terms of the agreement the owner may proceed with the sale to any other party at these terms. If the park owner thereafter elects to accept an offer at a price lower than the price specified in the notice, the homeowners will have an additional ten days to meet the price and terms and conditions of this lower offer by executing a contract. If the qualified tenant organization fails to perform following two such opportunities, the park owner shall be free for a period of twenty-four months to execute a sale of the park to any other party.

A mobile home park owner who enters into a signed agreement to sell or transfer the ownership of the mobile home park to a relative or a legal entity composed of relatives or established for the benefit of relatives of the mobile home park owner, who signs an agreement stating the intention to maintain the property as a mobile home park is exempted from the requirements of this section and RCW 59.23.030.

Sec. 4. RCW 59.22.050 and 1991 c 327 s 3 are each amended to read as follows:

(1) In order to provide general assistance to mobile home resident organizations, park owners, and landlords and tenants, the department shall establish an office of mobile home affairs which will serve as the coordinating office within state government for matters relating to mobile homes or manufactured housing.

This office will provide an ombudsman service to mobile home park owners and mobile home tenants with respect to problems and disputes between park owners and park residents and to provide technical assistance to resident organizations or persons in the process of forming a resident organization pursuant to chapter 59.22 RCW. The office will keep records of its activities in this area.

(2) The office shall perform all the consumer complaint and related functions of the state administrative agency that are required for purposes of complying with the regulations established by the federal department of housing and urban development for manufactured housing, including the preparation and submission of the state administrative plan.

(3) The office shall administer the mobile home relocation assistance program established in chapter 59.21 RCW, including verifying the eligibility of tenants for relocation assistance.

(4) The office may provide information to tenants located in mobile home parks in this state regarding the legal right of tenants to purchase a mobile home park, as provided for in chapter 59.23 RCW."

ESHB 1604 - S COMM AMD

By Committee on Financial Institutions & Housing

On page 1, line 2 of the title, after "organizations;" strike the remainder of the title and insert "amending RCW 59.23.015, 59.23.025, and 59.22.050; and adding a new section to chapter 59.23 RCW."