(9) more than 50,000 manufactured home com-
munities, or ‘‘mobile home parks’’, exist throughout 
the United States; 
(10) more than 2.9 million manufactured homes 
are placed in manufactured home communities; 
(11) manufactured home communities provide 
critical affordable housing but receive very little 
local, State, or Federal funds subsidizing the cost of 
these homes; 
(12) manufactured home owners in commu-
nities may own the home, but they do not own the 
land under their homes, leaving them vulnerable to 
rent increases, arbitrary rule enforcement, and even 
closure of the community if the community owner 
decides to convert the land to some other use; 
(13) eviction or closure of manufactured home 
communities is very disruptive to residents who may 
be unable to pay the thousands of dollars it takes to 
move their home or even find a new location for 
their home; 
(14) in the past two decades, a national net-
work of housing providers has helped residents pur-
chase and own the land and manage the community 
in order to preserve a crucial source of affordable 
housing; 
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(15) nationwide, there are more than 1,000 of 
these stable, permanent ownership cooperatives or 
nonprofit-owned developments in more than a dozen 
States; 
(16) members continue to own their own homes 
individually and an equal share of the land beneath 
the entire neighborhood where everyone has a say in 
the way the resident-owned community is run, and 
major decisions are made by democratic vote by a 
member-elected board of directors; 
(17) in New Hampshire, more than 20 percent 
of manufactured home communities are owned by 
residents; 
(18) in Vermont, Massachusetts, Rhode Island, 
Washington, Oregon, and Minnesota, resident-owned 
cooperatives and nonprofit ownership have flour-
ished; 
(19) nationwide, only 2 percent of all manufac-
tured home communities are resident- or nonprofit- 
owned; 
(20) owners are frequently reluctant to sell the 
community because they would prefer to pass the 
property on to their heirs tax free and avoid capital 
gains taxes; 
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(21) when the owner dies, the heirs frequently 
sell the community to the highest bidder resulting in 
displacement for dozens and sometimes hundreds of 
families; and 
(22) a Federal tax benefit needs to be estab-
lished to induce owners to sell to residents they have 
known for decades or to nonprofit organizations in 
order to preserve the community for years to come. 
SEC. 3. TAX CREDIT FOR MANUFACTURED HOME COMMU-
NITY SALE TO RESIDENTS OR NONPROFIT 
ENTITY. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45U. MANUFACTURED HOME COMMUNITY SALE TO 
RESIDENTS OR NONPROFIT ENTITY. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the manufactured home community sale credit de-
termined under this section for any taxable year is an 
amount equal to 75 percent of the qualified gain received 
by the taxpayer during the taxable year. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
GAIN.—The term ‘qualified 
gain’ means gain from the sale or exchange of real 
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property to a qualified manufactured home commu-
nity cooperative or corporation if— 
‘‘(A) the real property is acquired for use 
as a manufactured home community, and 
‘‘(B) the requirements of paragraph (2) 
are met. 
‘‘(2) REQUIREMENTS.—The requirements of 
this paragraph are met if— 
‘‘(A) the seller (or any related person) 
owned the property for not less than the 2-year 
period ending before the sale or exchange, and 
‘‘(B) the property is transferred subject to 
a binding covenant that the property will be 
used as a manufactured home community for a 
term of not less than 50 years (or, in the case 
of a manufactured home community located in 
a State the laws of which restrict such covenant 
to a lesser term, the maximum permissible term 
allowed under such State laws). 
‘‘(3) MANUFACTURED HOME COMMUNITY.—The 
term ‘manufactured home community’ means a com-
munity composed primarily of manufactured homes 
used solely for residential purposes and owned by a 
manufactured home community cooperative or cor-
poration. 
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‘‘(4) MANUFACTURED HOME COMMUNITY COOP-
ERATIVE OR CORPORATION.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
manufactured home community cooperative or 
corporation’ means a cooperative or a nonprofit 
corporation established pursuant to the laws of 
the State in which the property used as a man-
ufactured home community is located and 
which— 
‘‘(i) in the case of a community owned 
by a nonprofit corporation whose member-
ship interests are sold on a nonappre-
ciating basis, has only one class of mem-
bership consisting of residents, and 
‘‘(ii) in the case of a community 
owned by a cooperative, has no more than 
two classes of membership, which includes 
both members and a tax-exempt organiza-
tion actively engaged in supporting afford-
able housing and resident-owned manufac-
tured home communities. 
‘‘(B) GOVERNANCE.—An entity shall not 
be treated as a qualified manufactured home 
community cooperative or corporation for pur-
poses of subparagraph (A) unless governance of 
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the entity is carried out by members elected to 
a board of directors with voting structured eq-
uitably among all members. 
‘‘(C) 
MEMBER.—The 
term 
‘member’ 
means— 
‘‘(i) an individual who— 
‘‘(I) has attained the age of 18, 
‘‘(II) is entitled by reason of the 
individual’s membership interest to 
execute an occupancy agreement with 
the manufactured home community 
cooperative nonprofit with respect to 
one site in the manufactured home 
community for the purposes of situ-
ating a manufactured home owned by 
the member or, as permitted by the 
manufactured community cooperative 
or corporation, the member’s trust or 
other entity, and 
‘‘(III) is a resident of the manu-
factured home community, and 
‘‘(ii) a tax exempt organization. 
‘‘(5) 
MEMBERSHIP
INTEREST.—The 
term 
‘membership interest’ means an ownership interest 
in a manufactured home community cooperative or 
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corporation or a membership interest in a manufac-
tured home community nonprofit corporation. 
‘‘(6) MANUFACTURED HOME.—The term ‘man-
ufactured home’ means a structure, transportable in 
one or more sections, which— 
‘‘(A) in the traveling mode, is 8 body feet 
or more in width and 40 body feet or more in 
length, or when erected on site, is 320 square 
feet or more, 
‘‘(B) is built on a permanent chassis and 
designed to be used as a dwelling (with or with-
out a permanent foundation when connected to 
required utilities) and includes plumbing, heat-
ing, and electrical heating systems, and 
‘‘(C) in the case of a structure manufac-
tured after June 15, 1976, is certified as meet-
ing the Manufactured Home Construction and 
Safety Standards issued under the National 
Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5401–5426) 
by the Department of Housing and Urban De-
velopment and displays a label of such certifi-
cation on the exterior of each transportable sec-
tion. 
‘‘(c) SPECIAL RULES.— 
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‘‘(1) RELATED PERSON.—For purposes of sub-
section (b)(2)(A), a person (hereafter in this sub-
paragraph referred to as the ‘related person’) is re-
lated to the seller if— 
‘‘(A) the related person bears a relation-
ship to the seller specified in section 267(b) or 
707(b)(1), or 
‘‘(B) the related person and the seller are 
engaged in trades or businesses under common 
control (within the meaning of subsections (a) 
and (b) of section 52). 
‘‘(2) 
ELECTION
BY
BOTH
SELLER
AND 
BUYER.—The credit is allowable under this section 
only if— 
‘‘(A) elected by both the seller and the 
buyer of the real property and evidenced by an 
affidavit executed by both parties, and 
‘‘(B) the buyer of the real property records 
the affidavit and the affidavit is referenced in 
its deed to the real property. 
The seller shall elect the credit under this section on 
its return of tax. 
‘‘(d) TAX UPON VIOLATION OF COVENANT.—There 
is imposed a tax on the buyer for a violation of the cov-
enant specified in subsection (b)(2)(B). The amount of 
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such tax shall be 20 percent of the net proceeds after set-
tlement for the sale or exchange of the real property re-
ferred to in subsection (b)(2). For purposes of section 
501(a), the tax imposed by this subsection shall not be 
treated as a tax imposed by this subtitle. 
‘‘(e) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary to carry 
out this section, including the recapture of the tax benefit 
under this section in any case in which the real property 
described in subsection (b) is not used as a manufactured 
home community for at least 50 years.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (32), by strik-
ing the period at the end of paragraph (33) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(34) the manufactured home community sale 
credit determined under section 45T(a).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Subsection (c) of section 196 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (13), by striking the period at the end of 
paragraph (14) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph: 
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‘‘(15) the manufactured home community sale 
credit determined under section 45U(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45U. Manufactured home community sale to residents or nonprofit enti-
ty.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
Æ 
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