SSB 5780 -
By Senator Eide
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1 (1) The legislature finds that:
(a) Manufactured/mobile home communities provide a significant
source of homeownership opportunities for Washington residents.
However, the increasing closure and conversion of manufactured/mobile
home communities to other uses, combined with increasing mobile home
lot rents, low vacancy rates in existing manufactured/mobile home
communities, and the extremely high cost of moving homes when
manufactured/mobile home communities close, increasingly make
manufactured/mobile home community living insecure for
manufactured/mobile home tenants.
(b) Many tenants who reside in manufactured/mobile home
communities are low-income households and senior citizens and are,
therefore, those residents most in need of reasonable security in the
siting of their manufactured/mobile homes because of the adverse
impacts on the health, safety, and welfare of tenants forced to move
due to closure, change of use, or discontinuance of manufactured/mobile
home communities.
(c) The preservation of manufactured/mobile home communities:
(i) Is a more economical alternative than providing new replacement
housing units for tenants who are displaced from closing
manufactured/mobile home communities;
(ii) Is a strategy by which all local governments can meet the
affordable housing needs of their residents;
(iii) Is a strategy by which local governments planning under RCW
36.70A.040 may meet the housing element of their comprehensive plans as
it relates to the provision of housing affordable to all economic
sectors; and
(iv) Should be a goal of all housing authorities and local
governments.
(d) The loss of manufactured/mobile home communities should not
result in a net loss of affordable housing, thus compromising the
ability of local governments to meet the affordable housing needs of
its residents and the ability of these local governments planning under
RCW 36.70A.040 to meet affordable housing goals under chapter 36.70A
RCW.
(e) The closure of manufactured/mobile home communities has serious
environmental, safety, and financial impacts, including:
(i) Homes that cannot be moved to other locations add to
Washington's landfills;
(ii) Homes that are abandoned might attract crime; and
(iii) Vacant homes that will not be reoccupied need to be tested
for asbestos and lead, and these toxic materials need to be removed
prior to demolition.
(f) The self-governance aspect of tenants owning
manufactured/mobile home communities results in a lesser usage of
police resources as tenants experience fewer societal conflicts when
they own the real estate as well as their homes.
(g) Housing authorities, by their creation and purpose, are the
public body corporate and politic of the city or county responsible for
addressing the availability of safe and sanitary dwelling
accommodations available to persons of low income, senior citizens, and
others.
(2) It is the intent of the legislature to encourage and facilitate
the preservation of existing manufactured/mobile home communities in
the event of voluntary sales of manufactured/mobile home communities
and, to the extent necessary and possible, to involve
manufactured/mobile home community tenants or an eligible organization
representing the interests of tenants, such as a nonprofit
organization, housing authority, or local government, in the
preservation of manufactured/mobile home communities.
Sec. 2 RCW 59.20.030 and 2003 c 127 s 1 are each amended to read
as follows:
For purposes of this chapter:
(1) "Abandoned" as it relates to a mobile home, manufactured home,
or park model owned by a tenant in a mobile home park, mobile home park
cooperative, or mobile home park subdivision or tenancy in a mobile
home lot means the tenant has defaulted in rent and by absence and by
words or actions reasonably indicates the intention not to continue
tenancy;
(2) "Eligible organization" includes local governments, local
housing authorities, nonprofit community or neighborhood-based
organizations, federally recognized Indian tribes in the state of
Washington, and regional or statewide nonprofit housing assistance
organizations;
(3) "Housing authority" or "authority" means any of the public body
corporate and politic created in RCW 35.82.030;
(4) "Landlord" means the owner of a mobile home park and includes
the agents of a landlord;
(((3))) (5) "Local government" means a town government, city
government, code city government, or county government in the state of
Washington;
(6) "Manufactured home" means a single-family dwelling built
according to the United States department of housing and urban
development manufactured home construction and safety standards act,
which is a national preemptive building code. A manufactured home
also: (a) Includes plumbing, heating, air conditioning, and electrical
systems; (b) is built on a permanent chassis; and (c) can be
transported in one or more sections with each section at least eight
feet wide and forty feet long when transported, or when installed on
the site is three hundred twenty square feet or greater;
(((4))) (7) "Manufactured/mobile home" means either a manufactured
home or a mobile home;
(8) "Mobile home" means a factory-built dwelling built prior to
June 15, 1976, to standards other than the United States department of
housing and urban development code, and acceptable under applicable
state codes in effect at the time of construction or introduction of
the home into the state. Mobile homes have not been built since the
introduction of the United States department of housing and urban
development manufactured home construction and safety act;
(((5))) (9) "Mobile home lot" means a portion of a mobile home park
or manufactured housing community designated as the location of one
mobile home, manufactured home, or park model and its accessory
buildings, and intended for the exclusive use as a primary residence by
the occupants of that mobile home, manufactured home, or park model;
(((6))) (10) "Mobile home park," ((or)) "manufactured housing
community," or "manufactured/mobile home community" means any real
property which is rented or held out for rent to others for the
placement of two or more mobile homes, manufactured homes, or park
models for the primary purpose of production of income, except where
such real property is rented or held out for rent for seasonal
recreational purpose only and is not intended for year-round occupancy;
(((7))) (11) "Mobile home park cooperative" or "manufactured
housing cooperative" means real property consisting of common areas and
two or more lots held out for placement of mobile homes, manufactured
homes, or park models in which both the individual lots and the common
areas are owned by an association of shareholders which leases or
otherwise extends the right to occupy individual lots to its own
members;
(((8))) (12) "Mobile home park subdivision" or "manufactured
housing subdivision" means real property, whether it is called a
subdivision, condominium, or planned unit development, consisting of
common areas and two or more lots held for placement of mobile homes,
manufactured homes, or park models in which there is private ownership
of the individual lots and common, undivided ownership of the common
areas by owners of the individual lots;
(((9))) (13) "Notice of sale" means a notice required under section
4 of this act to be delivered to all tenants of a manufactured/mobile
home community and other specified parties within fourteen days after
the date on which any advertisement, multiple listing, or public notice
advertises that a manufactured/mobile home community is for sale;
(14) "Park model" means a recreational vehicle intended for
permanent or semi-permanent installation and is used as a primary
residence;
(((10))) (15) "Qualified sale of manufactured/mobile home
community" means the sale, as defined in RCW 82.45.010, of land and
improvements comprising a manufactured/mobile home community that is
transferred in a single purchase to a qualified tenant organization or
to an eligible organization for the purpose of preserving the property
as a manufactured/mobile home community;
(16) "Qualified tenant organization" means a formal organization of
tenants within a manufactured/mobile home community, with the only
requirement for membership consisting of being a tenant;
(17) "Recreational vehicle" means a travel trailer, motor home,
truck camper, or camping trailer that is primarily designed and used as
temporary living quarters, is either self-propelled or mounted on or
drawn by another vehicle, is transient, is not occupied as a primary
residence, and is not immobilized or permanently affixed to a mobile
home lot;
(((11))) (18) "Tenant" means any person, except a transient, who
rents a mobile home lot;
(((12))) (19) "Transient" means a person who rents a mobile home
lot for a period of less than one month for purposes other than as a
primary residence;
(((13))) (20) "Occupant" means any person, including a live-in care
provider, other than a tenant, who occupies a mobile home, manufactured
home, or park model and mobile home lot.
Sec. 3 RCW 82.45.010 and 2000 2nd sp.s. c 4 s 26 are each amended
to read as follows:
(1) As used in this chapter, the term "sale" shall have its
ordinary meaning and shall include any conveyance, grant, assignment,
quitclaim, or transfer of the ownership of or title to real property,
including standing timber, or any estate or interest therein for a
valuable consideration, and any contract for such conveyance, grant,
assignment, quitclaim, or transfer, and any lease with an option to
purchase real property, including standing timber, or any estate or
interest therein or other contract under which possession of the
property is given to the purchaser, or any other person at the
purchaser's direction, and title to the property is retained by the
vendor as security for the payment of the purchase price. The term
also includes the grant, assignment, quitclaim, sale, or transfer of
improvements constructed upon leased land.
(2) The term "sale" also includes the transfer or acquisition
within any twelve-month period of a controlling interest in any entity
with an interest in real property located in this state for a valuable
consideration. For purposes of this subsection, all acquisitions of
persons acting in concert shall be aggregated for purposes of
determining whether a transfer or acquisition of a controlling interest
has taken place. The department of revenue shall adopt standards by
rule to determine when persons are acting in concert. In adopting a
rule for this purpose, the department shall consider the following:
(a) Persons shall be treated as acting in concert when they have a
relationship with each other such that one person influences or
controls the actions of another through common ownership; and
(b) When persons are not commonly owned or controlled, they shall
be treated as acting in concert only when the unity with which the
purchasers have negotiated and will consummate the transfer of
ownership interests supports a finding that they are acting as a single
entity. If the acquisitions are completely independent, with each
purchaser buying without regard to the identity of the other
purchasers, then the acquisitions shall be considered separate
acquisitions.
(3) The term "sale" shall not include:
(a) A transfer by gift, devise, or inheritance.
(b) A transfer of any leasehold interest other than of the type
mentioned above.
(c) A cancellation or forfeiture of a vendee's interest in a
contract for the sale of real property, whether or not such contract
contains a forfeiture clause, or deed in lieu of foreclosure of a
mortgage.
(d) The partition of property by tenants in common by agreement or
as the result of a court decree.
(e) The assignment of property or interest in property from one
spouse to the other in accordance with the terms of a decree of divorce
or in fulfillment of a property settlement agreement.
(f) 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.
(g) Transfers by appropriation or decree in condemnation
proceedings brought by the United States, the state or any political
subdivision thereof, or a municipal corporation.
(h) A mortgage or other transfer of an interest in real property
merely to secure a debt, or the assignment thereof.
(i) Any transfer or conveyance made pursuant to a deed of trust or
an order of sale by the court in any mortgage, deed of trust, or lien
foreclosure proceeding or upon execution of a judgment, or deed in lieu
of foreclosure to satisfy a mortgage or deed of trust.
(j) A conveyance to the federal housing administration or veterans
administration by an authorized mortgagee made pursuant to a contract
of insurance or guaranty with the federal housing administration or
veterans administration.
(k) A transfer in compliance with the terms of any lease or
contract upon which the tax as imposed by this chapter has been paid or
where the lease or contract was entered into prior to the date this tax
was first imposed.
(l) The sale of any grave or lot in an established cemetery.
(m) A sale by the United States, this state or any political
subdivision thereof, or a municipal corporation of this state.
(n) A sale to a regional transit authority or public corporation
under RCW 81.112.320 under a sale/leaseback agreement under RCW
81.112.300.
(o) A transfer of real property, however effected, if it consists
of a mere change in identity or form of ownership of an entity where
there is no change in the beneficial ownership. These include
transfers to a corporation or partnership which is wholly owned by the
transferor and/or the transferor's spouse or children: PROVIDED, That
if thereafter such transferee corporation or partnership voluntarily
transfers such real property, or such transferor, spouse, or children
voluntarily transfer stock in the transferee corporation or interest in
the transferee partnership capital, as the case may be, to other than
(1) the transferor and/or the transferor's spouse or children, (2) a
trust having the transferor and/or the transferor's spouse or children
as the only beneficiaries at the time of the transfer to the trust, or
(3) a corporation or partnership wholly owned by the original
transferor and/or the transferor's spouse or children, within three
years of the original transfer to which this exemption applies, and the
tax on the subsequent transfer has not been paid within sixty days of
becoming due, excise taxes shall become due and payable on the original
transfer as otherwise provided by law.
(p)(i) A transfer that for federal income tax purposes does not
involve the recognition of gain or loss for entity formation,
liquidation or dissolution, and reorganization, including but not
limited to nonrecognition of gain or loss because of application of
section 332, 337, 351, 368(a)(1), 721, or 731 of the Internal Revenue
Code of 1986, as amended.
(ii) However, the transfer described in (p)(i) of this subsection
cannot be preceded or followed within a twelve-month period by another
transfer or series of transfers, that, when combined with the otherwise
exempt transfer or transfers described in (p)(i) of this subsection,
results in the transfer of a controlling interest in the entity for
valuable consideration, and in which one or more persons previously
holding a controlling interest in the entity receive cash or property
in exchange for any interest the person or persons acting in concert
hold in the entity. This subsection (3)(p)(ii) does not apply to that
part of the transfer involving property received that is the real
property interest that the person or persons originally contributed to
the entity or when one or more persons who did not contribute real
property or belong to the entity at a time when real property was
purchased receive cash or personal property in exchange for that person
or persons' interest in the entity. The real estate excise tax under
this subsection (3)(p)(ii) is imposed upon the person or persons who
previously held a controlling interest in the entity.
(q) A qualified sale of a manufactured/mobile home community, as
defined in RCW 59.20.030, that takes place on or after the effective
date of this act but before December 31, 2018.
NEW SECTION. Sec. 4 A new section is added to chapter 59.20 RCW
to read as follows:
(1) A landlord must provide a written notice of sale of a
manufactured/mobile home community by certified mail or personal
delivery to:
(a) Each tenant of the manufactured/mobile home community;
(b) The officers of any known qualified tenant organization;
(c) The office of manufactured housing;
(d) The local government within whose jurisdiction all or part of
the manufactured/mobile home community exists;
(e) The housing authority within whose jurisdiction all or part of
the manufactured/mobile home community exists; and
(f) The Washington state housing finance commission.
(2) A notice of sale must include:
(a) A statement that the landlord intends to sell the
manufactured/mobile home community; and
(b) The contact information of the landlord or landlord's agent who
is responsible for communicating with the qualified tenant organization
or eligible organization regarding the sale of the property.
NEW SECTION. Sec. 5 A new section is added to chapter 59.20 RCW
to read as follows:
A landlord intending to sell a manufactured/mobile home community
is encouraged to negotiate in good faith with qualified tenant
organizations and eligible organizations.
Sec. 6 RCW 59.22.050 and 2007 c 432 s 9 are each amended to read
as follows:
(1) In order to provide general assistance to manufactured/mobile
home resident organizations, qualified tenant organizations,
manufactured/mobile home community or park owners, and landlords and
tenants, the department shall establish an office of ((mobile home
affairs)) 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)), either
directly or through contracted services, technical assistance to
qualified tenant organizations as defined in RCW 59.20.030 and 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 administer the mobile home relocation
assistance program established in chapter 59.21 RCW, including
verifying the eligibility of tenants for relocation assistance.
NEW SECTION. Sec. 7 The following acts or parts of acts are each
repealed:
(1) RCW 59.23.005 (Findings -- Intent) and 1993 c 66 s 1;
(2) RCW 59.23.010 (Obligation of good faith) and 1993 c 66 s 2;
(3) RCW 59.23.015 (Application of chapter -- Definition of "notice")
and 1993 c 66 s 3;
(4) RCW 59.23.020 (Definitions) and 1993 c 66 s 4;
(5) RCW 59.23.025 (Notice to qualified tenant organization of sale
of mobile home park -- Time frame for negotiations -- Terms -- Transfer or
sale to relatives) and 1993 c 66 s 5;
(6) RCW 59.23.030 (Improper notice by mobile home park owner -- Sale
may be set aside -- Attorneys' fees) and 1993 c 66 s 6;
(7) RCW 59.23.035 (Notice to mobile home park owner of sale of
tenant's mobile home -- Time frame for negotiations -- Terms -- Transfer or
sale to relatives) and 1993 c 66 s 7; and
(8) RCW 59.23.040 (Improper notice by mobile home owner -- Sale may
be set aside -- Attorneys' fees) and 1993 c 66 s 8.
NEW SECTION. Sec. 8 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected."
SSB 5780 -
By Senator Eide
On page 1, line 2 of the title, after "exemption;" strike the remainder of the title and insert "amending RCW 59.20.030, 82.45.010, and 59.22.050; adding new sections to chapter 59.20 RCW; creating a new section; and repealing RCW 59.23.005, 59.23.010, 59.23.015, 59.23.020, 59.23.025, 59.23.030, 59.23.035, and 59.23.040."
EFFECT: When a park is publicly listed for sale, the owner must notify tenants and other interested parties within 14 days. Park owners who intend to sell their park are encouraged to negotiate in good faith with tenant organizations and related parties.