H-4445.1  _______________________________________________

 

                          HOUSE BILL 3034

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By Representatives Kastama, Conway, Anderson, Cole and Costa

 

Read first time 01/27/98.  Referred to Committee on Trade & Economic Development.

Purchasing a mobile home park.


    AN ACT Relating to the right of first refusal for mobile home park purchases; and amending RCW 59.23.025 and 59.23.030.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 59.23.025 and 1993 c 66 s 5 are each amended to read as follows:

    (1) 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)) sixty 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)) which is refundable if the purchase is not made by the qualified tenant organization, 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.

    (2) 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.

    (3) 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. 2.  RCW 59.23.030 and 1993 c 66 s 6 are each amended to read as follows:

    Failure on the part of a mobile home park owner to give notice as required by this chapter renders a sale of the mobile home park that occurs within ((thirty)) sixty days of the time the qualified tenant organization knows or has reason to know that a violation of the notice provisions of RCW 59.23.015 has occurred, voidable upon application to superior court after notice and hearing.  If the court determines that the notice provisions of this chapter have been violated, the court shall issue an order setting aside the improper sale.  In an action brought under this section, the court shall award the prevailing party attorneys' fees and costs.  For the purposes of this section, a "prevailing party" includes any third party purchaser who appears and successfully defends his or her interest.

 


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