FINAL BILL REPORT
E2SHB 1621
C 116 L 08
Synopsis as Enacted
Brief Description: Preserving manufactured/mobile home communities.
Sponsors: By House Committee on Finance (originally sponsored by Representatives B. Sullivan, Sells, Morrell, Lovick, Ormsby, Miloscia, Springer, McCoy, Sullivan, Hasegawa, O'Brien, Roberts, Conway, Wood, Haigh, Rolfes and Simpson).
House Committee on Housing
House Committee on Finance
Senate Committee on Consumer Protection & Housing
Background:
Manufactured/Mobile Home Community Closures.
The state has noted a recent increase in the rate of manufactured/mobile home community
closures, primarily attributable to increasing market demands for land in Washington,
particularly in high growth areas. According to data provided by the Department of
Community, Trade and Economic Development (DCTED), 18 manufactured/mobile
communities closed during calendar year 2007, the closure of which affected 534 households.
Approximately 1,000 existing communities are located in urban growth areas and are
considered likely threatened due to rising land values within those areas. The DCTED
reports knowledge of 846 spaces that will close within the next year and estimates that 254 of
these households will request state relocation reimbursement assistance.
Manufactured/Mobile Home Community Right of First Refusal Law.
A Washington law enacted in 1993 provided for a right of first refusal for a qualified tenant
organization. Under that statute, a park owner was required to notify a qualified tenant
organization of a pending sale of the park. The qualified tenant organization would have 30
days after that notice was received to tender a fully executed purchase and sale agreement at
least as favorable to the park owner as the original agreement.
This statute was declared invalid, however, in Manufactured Housing Communities of
Washington v. State, 142 Wash.2d 347 (2000). The Washington Supreme Court held that the
right of first refusal is a fundamental attribute of ownership and a valuable property right of
mobile home park owners, and that the statutory forced transfer of this right constitutes a
taking under the Washington Constitution.
Summary:
Office of Mobile Home Affairs.
The Office of Mobile Home Affairs, within the DCTED, provides assistance to
manufactured/mobile home tenants, landlords and resident organizations, and administers the
mobile home relocation assistance program.
"Notice of Sale" Requirement.
A landlord selling a manufactured/mobile home community must file a notice of sale within
14 days of advertisement of the sale to community tenants, tenant organizations, the Office of
Manufactured Housing, the appropriate local government and Housing Authority, and the
Washington State Housing Finance Commission. The notice must include contact
information for the landlord.
Voluntary Qualified Sale of a Manufactured/Mobile Home Community.
Sales of a manufactured/mobile home community to a qualified tenant organization or an
eligible organization are "qualified sales" and are exempt from the state and local real estate
excise tax (REET). The REET exemption expires December 31, 2018.
Good Faith Negotiations.
Landlords are encouraged to negotiate in good faith with qualified tenant organizations and
eligible organizations.
Eligible Organizations.
Eligible organizations include local governments, housing authorities, nonprofit
organizations, Indian tribes, and statewide nonprofit housing assistance organizations.
Office of Manufactured Housing.
The name of the "Office of Mobile Home Affairs" is changed to the "Office of Manufactured
Housing." This office must provide technical assistance to tenant organizations, among
others.
Other Provisions.
If any provision of this act is held invalid, the remainder of the act is not affected.
The Right of First Refusal Law is repealed.
Votes on Final Passage:
House 94 0
Senate 46 0 (Senate amended)
House 93 0 (House concurred)
Effective: June 12, 2008