(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. 45S. 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 
not less than 50 years. 
‘‘(3) MANUFACTURED HOME COMMUNITY.—The 
term ‘manufactured home community’ means a com-
munity comprised primarily of manufactured homes 
used solely for residential purposes and owned by a 
manufactured home community cooperative or cor-
poration. 
‘‘(4) MANUFACTURED HOME COMMUNITY COOP-
ERATIVE OR CORPORATION.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
manufactured home community cooperative or 
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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 
the entity is carried out by members elected to 
a board of directors with voting structured eq-
uitably among all members. 
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