II 

118TH CONGRESS 

2D SESSION S. 4584 

To amend the Internal Revenue Code of 1986 to allow a business credit 

for gain from the sale of real property for use as a manufactured 

home community, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 18, 2024 

Mrs. SHAHEEN (for herself, Mr. TESTER, and Mr. BLUMENTHAL) introduced 

the following bill; which was read twice and referred to the Committee 

on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to allow a 

business credit for gain from the sale of real property 

for use as a manufactured home community, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Manufactured Housing 

5 Community Sustainability Act of 2024’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


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1 (1) more than 22,000,000 people live in HUD2 code manufactured homes; 

3 (2) there are approximately 6,700,000 occupied 

4 manufactured homes in the United States, rep5 resenting about 6 percent of the Nation’s housing 

6 stock, 9 percent of the single-family housing stock, 

7 and more than 12 percent of all new single-family 

8 homes sold in 2021; 

9 (3) owners of manufactured homes are dis10 proportionately low-income households, and in 2020, 

11 the median annual household income for living in 

12 manufactured housing was $35,000; 

13 (4) over one-quarter of manufactured home14 owners earn less than $20,000 annually, and two15 thirds earn less than $50,000 annually; 

16 (5) more than half of all manufactured homes 

17 are located in rural areas around the country, and 

18 manufactured homes make up 13 percent of all oc19 cupied homes in rural and small-town communities; 

20 (6) the average sales price of a new manufac21 tured home (excluding land) in 2019 was $81,700, 

22 and as of December 2023, that average sales price 

23 had increased to $121,300, an increase of 48.5 per24 cent over the preceding 5 years; 


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1 (7) despite this sharp increase, the average 

2 manufactured home costs roughly half the price per 

3 square foot of the average site-built home; 

4 (8) manufactured home communities provide 

5 critical affordable housing, but receive very little 

6 Federal, State, or local funds to subsidize the cost 

7 of manufactured homes; 

8 (9) an estimated 43,000 manufactured home 

9 communities, also referred to as ‘‘mobile home 

10 parks’’, exist throughout the United States; 

11 (10) owners of manufactured homes in such 

12 communities may own the home, but they do not 

13 own the land under the home, which leaves the 

14 homeowners vulnerable to rent increases, dis-invest15 ment, changes in land use, and community closure; 

16 (11) an eviction or closure of a manufactured 

17 home community is very disruptive and can be finan18 cially devastating to a homeowner who may be un19 able to pay the thousands of dollars it takes to move 

20 the manufactured home or find a new location for 

21 the manufactured home; 

22 (12) manufactured housing where the consumer 

23 does not own the land generally does not promote 

24 wealth building via homeownership; 


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1 (13) for more than a decade, in an effort to 

2 preserve a crucial source of affordable housing and 

3 aid low-income homeowners, a national network of 

4 housing providers has helped residents purchase and 

5 own the land under the manufactured home commu6 nity, and manage the manufactured home commu7 nity as limited equity cooperatives; 

8 (14) nationwide, there are more than 1,000 co9 operative manufactured home communities, of which 

10 more than 300, located in more than 20 States, are 

11 permanently preserved as affordable communities 

12 through limited equity cooperative or nonprofit own13 ership; 

14 (15) members of manufactured home commu15 nity cooperatives continue to own such homes indi16 vidually, own an equal share of the land beneath the 

17 entire manufactured home community, participate in 

18 the governing of the community, and elect a board 

19 of directors who make major decisions within the 

20 manufactured home community by a democratic 

21 vote; 

22 (16) site fee increases in limited equity resi23 dent-owned communities average just 0.9 percent 

24 per year, compared to 5.9 percent per year in com25 mercially owned communities; 


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1 (17) in New Hampshire, more than 40 percent 

2 of manufactured home communities are owned by 

3 residents; 

4 (18) resident-owned cooperatives and nonprofit 

5 owned communities have also flourished in Colorado, 

6 Vermont, Massachusetts, Montana, Rhode Island, 

7 Washington, Oregon, and Minnesota; 

8 (19) nationwide, only 2.4 percent of all manu9 factured home communities are resident or nonprofit 

10 owned; 

11 (20) 19 States have adopted some protection 

12 when a community is sold, and 8 States have strong 

13 notification and resident purchase opportunities, 

14 which provide homeowners in those States an oppor15 tunity to purchase the manufactured home commu16 nity when it is put up for sale; and 

17 (21) in order to preserve manufactured home 

18 communities and help low-income homeowners live 

19 securely, safely, and build wealth through homeown20 ership in the future, a Federal tax benefit should be 

21 established to induce manufactured home community 

22 owners to sell such properties to the residents when 

23 those residents or a nonprofit commits to preserving 

24 the community long term. 


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1 SEC. 3. TAX CREDIT FOR MANUFACTURED HOME COMMU2 NITY SALE TO RESIDENTS OR NONPROFIT 

3 ENTITY. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business related credits) is amended by 

7 adding at the end the following new section: 

8 ‘‘SEC. 45BB. MANUFACTURED HOME COMMUNITY SALE TO 

9 RESIDENTS OR NONPROFIT ENTITY. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec11 tion 38, the manufactured home community sale credit de12 termined under this section for any taxable year is an 

13 amount equal to 75 percent of the qualified gain received 

14 by the taxpayer during the taxable year. 

15 ‘‘(b) DEFINITIONS.—For purposes of this section— 

16 ‘‘(1) QUALIFIED GAIN.—The term ‘qualified 

17 gain’ means gain from the sale or exchange of real 

18 property to a qualified manufactured home commu19 nity cooperative or corporation if— 

20 ‘‘(A) the real property is acquired for use 

21 as a manufactured home community, 

22 ‘‘(B) the seller (or any related person) 

23 owned the property for the entire 2-year period 

24 ending on the day before the sale or exchange, 

25 and 


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1 ‘‘(C) the property is transferred subject to 

2 a binding covenant that the property will be 

3 used as a manufactured home community for 

4 not less than 50 years (or, in the case of a 

5 manufactured home community located in a 

6 State the laws of which restrict such covenant 

7 to a lesser term, the maximum permissible term 

8 allowed under such State laws). 

9 ‘‘(2) MANUFACTURED HOME COMMUNITY.—The 

10 term ‘manufactured home community’ means a com11 munity comprised primarily of manufactured homes 

12 used solely for residential purposes and owned by a 

13 manufactured home community cooperative or cor14 poration. 

15 ‘‘(3) QUALIFIED MANUFACTURED HOME COM16 MUNITY COOPERATIVE OR CORPORATION.— 

17 ‘‘(A) IN GENERAL.—The term ‘qualified 

18 manufactured home community cooperative or 

19 corporation’ means a cooperative or a nonprofit 

20 corporation established pursuant to the laws of 

21 the State in which the property used as a man22 ufactured home community is located, and 

23 which— 

24 ‘‘(i) in the case of a community owned 

25 by a nonprofit corporation whose memberVerDate Sep 11 2014 02:23 Aug 07, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4584.IS S4584

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1 ship interests are sold on a nonappre2 ciating basis, has only 1 class of member3 ship and such class consists solely of resi4 dents, and 

5 ‘‘(ii) in the case of a community 

6 owned by a cooperative, has not more than 

7 2 classes of membership, and such classes 

8 consist solely of residents and a tax-exempt 

9 organization. 

10 ‘‘(B) GOVERNANCE.—An entity shall not 

11 be treated as a qualified manufactured home 

12 community cooperative or corporation unless 

13 governance of the entity is carried out by mem14 bers elected to a board of directors with voting 

15 structured equitably among all members. 

16 ‘‘(C) MEMBER.—The term ‘member’ 

17 means— 

18 ‘‘(i) an individual who— 

19 ‘‘(I) has attained the age of 18, 

20 ‘‘(II) is entitled to be a member 

21 by reason of— 

22 ‘‘(aa) the membership inter23 est of the individual to execute 

24 an occupancy agreement with the 

25 manufactured home community 


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1 cooperative nonprofit with re2 spect to a site in the manufac3 tured home community in order 

4 to establish a manufactured 

5 home which is owned by the indi6 vidual, or 

7 ‘‘(bb) permission from the 

8 manufactured community cooper9 ative or corporation, the mem10 ber’s trust, or other entity, and 

11 ‘‘(III) is a resident of the manu12 factured home community, and 

13 ‘‘(ii) a tax-exempt organization. 

14 ‘‘(4) MEMBERSHIP INTEREST.—The term 

15 ‘membership interest’ means— 

16 ‘‘(A) an ownership interest in a manufac17 tured home community cooperative or corpora18 tion, or 

19 ‘‘(B) a membership interest in a manufac20 tured home community nonprofit corporation. 

21 ‘‘(5) MANUFACTURED HOME.—The term ‘man22 ufactured home’ means a structure which is trans23 portable in one or more sections, which— 

24 ‘‘(A) in traveling mode, is 8 body feet or 

25 more in width and 40 body feet or more in 


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1 length, or, when erected on site, is 320 square 

2 feet or more, 

3 ‘‘(B) is built on a permanent chassis and 

4 designed to be used as a dwelling (with or with5 out a permanent foundation when connected to 

6 required utilities) and includes plumbing, heat7 ing, and electrical heating systems, and 

8 ‘‘(C) in the case of a structure manufac9 tured after June 15, 1976, is certified as meet10 ing the Manufactured Home Construction and 

11 Safety Standards issued under the National 

12 Manufactured Housing Construction and Safety 

13 Standards Act of 1974 (42 U.S.C. 5401 et 

14 seq.) by the Department of Housing and Urban 

15 Development and displays a label of such cer16 tification on the exterior of each transportable 

17 section. 

18 ‘‘(c) SPECIAL RULES.— 

19 ‘‘(1) RELATED PERSON.—For purposes of sub20 section (b)(1)(B), a person is related to the seller 

21 if— 

22 ‘‘(A) such person bears a relationship to 

23 the seller as specified in section 267(b) or 

24 707(b)(1), or 


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1 ‘‘(B) such person and the seller are en2 gaged in trades or businesses under common 

3 control within the meanings of subsections (a) 

4 and (b) of section 52. 

5 ‘‘(2) ELECTION BY BOTH SELLER AND

6 BUYER.—The credit is allowable under this section 

7 only if— 

8 ‘‘(A) both the seller and the purchaser of 

9 the real property execute an affidavit rep10 resenting that the sale meets the requirements 

11 of subsection (b)(1), and the purchaser ac12 knowledges liability for the recapture of the 

13 credit under subsection (d) in case of any viola14 tion described in such subsection, 

15 ‘‘(B) the purchaser of the real property 

16 records the affidavit, and 

17 ‘‘(C) the affidavit is referenced in the deed 

18 to the real property. 

19 ‘‘(3) REQUIREMENT.—The seller shall include a 

20 copy of the affidavit representing the sale with the 

21 return of tax. 

22 ‘‘(d) TAX UPON VIOLATION OF COVENANT.—There 

23 is imposed a tax on the buyer for a violation of the cov24 enant specified in subsection (b)(1)(C). The amount of 

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1 tlement for the sale or exchange of the real property re2 ferred to in subsection (b)(1). For purposes of section 

3 501(a), the tax imposed by this subsection shall not be 

4 treated as a tax imposed by this subtitle. 

5 ‘‘(e) REGULATIONS.—The Secretary shall issue such 

6 regulations or other guidance as may be necessary to carry 

7 out this section, including the recapture under subsection 

8 (d).’’. 

9 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI10 NESS CREDIT.— 

11 Section 38(b) of the Internal Revenue Code of 

12 1986 is amended— 

13 (1) by striking ‘‘plus’’ at the end of paragraph 

14 (40); 

15 (2) by striking the period at the end of para16 graph (41) and inserting ‘‘, plus’’; and 

17 (3) by adding at the end the following new 

18 paragraph: 

19 ‘‘(42) the manufactured home community sale 

20 credit determined under section 45BB(a).’’. 

21 (c) CONFORMING AMENDMENTS.— 

22 (1) Subsection (c) of section 196 of the Internal 

23 Revenue Code of 1986 is amended— 

24 (A) by striking ‘‘and’’ at the end of para25 graph (13); 


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1 (B) by striking the period at the end of 

2 paragraph (14) and inserting ‘‘, and’’; and 

3 (C) by adding at the end the following new 

4 paragraph: 

5 ‘‘(15) the manufactured home community sale 

6 credit determined under section 45BB(a).’’. 

7 (2) The table of sections for subpart D of part 

8 IV of subchapter A of chapter 1 of such the Internal 

9 Revenue Code of 1986 is amended by adding at the 

10 end the following new item: 

‘‘Sec. 45BB. Manufactured home community sale to residents or nonprofit entity.’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2023. 

Æ 


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