I 
116TH CONGRESS 
1ST SESSION H. R. 2832 
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 HOUSE OF REPRESENTATIVES 
MAY 17, 2019 
Ms. OMAR (for herself, Ms. LEE of California, Mr. NEGUSE, Mr. POCAN, Mr. 
PAPPAS, Ms. KUSTER of New Hampshire, Mr. DEFAZIO, and Mr. 
KHANNA) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Frank Adelmann Man-
ufactured Housing Community Sustainability Act’’. 
SEC. 2. FINDINGS. 
The Congress finds that— 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
(1) more than 17 million people live in manu-
factured homes, benefitting from high-quality afford-
able homes that can provide them stability; 
(2) owners of manufactured homes are dis-
proportionately low-income households: in 2013, the 
median annual household income for those living in 
manufactured housing was $28,400; 
(3) about 75 percent of manufactured home 
households earn less than $50,000; 
(4) over 10 percent of United States veterans 
live in manufactured homes; 
(5) in the late 1990s, manufactured housing 
represented two-thirds of the new affordable housing 
produced in the United States, and it remains the 
largest source of unsubsidized affordable housing in 
the country; 
(6) as of 2015, the average cost per square foot 
for a new manufactured home was $48, less than 
half the $101 per square foot of the structure-only 
cost of a new site-built home; 
(7) in 2009, 43 percent of all new homes that 
sold for less than $150,000 were manufactured 
homes; 
(8) manufactured homes accounts for 23 per-
cent of new home sales under $200,000; 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
(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; 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
(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; 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
(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. 45T. 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 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
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 comprised primarily of manufactured homes 
used solely for residential purposes and owned by a 
manufactured home community cooperative or cor-
poration. 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
‘‘(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 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
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— 
‘‘(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 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
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.— 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
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 (31), by strik-
ing the period at the end of paragraph (32) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(33) 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: 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS
‘‘(15) the manufactured home community sale 
credit determined under section 45T(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. 45T. 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, 2019. 
Æ 
VerDate Sep 11 2014 
01:22 May 30, 2019
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6301
E:\BILLS\H2832.IH
H2832
kjohnson on DSK79L0C42 with BILLS