BP BHEAD INT S [atlas:bill]

AN ACT Relating to mobile home parks; amending RCW 59.23.015, 59.23.020, and 59.23.025; and adding a new section to chapter 59.23 RCW.

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

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.

"Notice" for the purposes of this section means a writing signed by ((~~sixty percent of the tenants~~)) authorized officers of a qualified tenant organization, or a majority of homeowners of currently occupied mobile homes in the park indicating that they desire to ((participate in the purchase of the park, and that they are contractually bound 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)) exercise their rights under this chapter. Notice under this section will not affect any sale to a third party if it is served on the owner after the execution of purchase and sale documents that bind both the owner and the third party. Notice is valid with regard to subsequent transactions, and remains valid until revoked.

Sec. 2. RCW 59.23.020 and 1993 c 66 s 4 are each amended to read as follows:

(1) "Mobile home park" means the same as defined in RCW 59.20.030.

(2)(a) The terms "sold" or "sale" for the purposes of this chapter have their ordinary meaning and include: (i) A conveyance, grant, assignment, quitclaim, or transfer of ownership or title to real property and improvements that comprise the mobile home park, or mobile homes, for a valuable consideration; (ii) a contract for the conveyance, grant, assignment, quitclaim, or transfer; (iii) a lease with an option to purchase the real property and improvements, or mobile home, or any estate or interest therein; or (iv) other contract under which possession of the property is given to the purchaser, or any other person by his or her direction, where title is retained by the vendor as security for the payment of the purchase price. These terms also include any other transfer of the beneficial or equitable interest in the mobile home park such as a transfer of equity stock or other security evidencing ownership that results in a change in majority interest ownership.

(b) The terms "sale" or "sold" do not include: (i) A transfer by gift, devise, or inheritance; (ii) a transfer of a leasehold interest other than of the type described in this subsection; (iii) a cancellation or forfeiture of a vendee's interest in a contract for the sale of the mobile home park; (iv) a deed in lieu of foreclosure of a mortgage; (v) the assumption by a grantee of the balance owing on an obligation that is secured by a mortgage or deed in lieu of forfeiture of the vendee's interest in a contract of sale where no consideration passes otherwise; (vi) the partition of property by tenants in common by agreement or as the result of a court decree; (vii) a transfer, conveyance, or assignment of property or interest in property from one spouse to the other in accordance with the terms of a decree of divorce or dissolution or in fulfillment of a property settlement agreement incident thereto; (viii) the assignment or other transfer of a vendor's interest in a contract for the sale of real property, even though accompanied by a conveyance of the vendor's interest in the real property involved; (ix) transfers by appropriation or decree in condemnation proceedings brought by the United States, the state or any political subdivision thereof, or a municipal corporation; (x) a mortgage or other transfer of an interest in real property or mobile home merely to secure a debt, or the assignment thereof; (xi) a transfer or conveyance made under an order of sale by the court in a mortgage or lien foreclosure proceeding or upon execution of a judgment; (xii) a deed in lieu of foreclosure to satisfy a mortgage; (xiii) a conveyance to the federal housing administration or veterans' administration by an authorized mortgagee made under a contract of insurance or guarantee with the federal housing administration or veterans' administration; (xiv) a transfer in compliance with the terms of any lease or contract upon which notice has already been given under this chapter, or where the lease or contract was entered into before July 25, 1993; or (xv) a transfer to a corporation or partnership the majority interest of which is wholly owned by the transferor.

(3) A "qualified tenant organization" means ((~~a formal~~)) an organization of tenants in the park in question, ((~~organized for the purpose of purchasing the park,~~)) with membership made available to all tenants with the only requirements for membership being: (a) Payment of reasonable dues; and (b) being a tenant in 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~~)) provide a copy of the agreement and related documents within ten days of the time the agreement is binding on the parties. 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, 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. After the execution of a purchase and sale agreement between the qualified tenant organization and the park owner, the qualified tenant organization must tender to the park owner an amount equal to two percent of the agreed-upon purchase price as an earnest money deposit, refundable according to the terms of the purchase and sale agreement. The tenant organization must then close the sale on ((~~the same~~)) terms ((~~as outlined in~~)) that are at least as favorable to the park owner as 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.

NEW SECTION. Sec. 4. A new section is added to chapter 59.23 RCW to read as follows:

If a mobile home park owner takes any action indicating a desire to sell the park including, but not limited to, engaging 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, then 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. Failure to provide this notice voids any subsequent sale of the park.