Manufactured Housing Community Preservation Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3332 To provide assistance for the acquisition and preservation of manufactured housing communities, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 19, 2021 Mrs. AXNE (for herself, Mr. KHANNA, and Ms. BONAMICI) introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide assistance for the acquisition and preservation of manufactured housing communities, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Manufactured Housing 4 Community Preservation Act of 2021’’. 5 SEC. 2. GRANT PROGRAM FOR MANUFACTURED HOUSING 6 PRESERVATION. 7 (a) AUTHORITY.—The Secretary of Housing and 8 Urban Development shall establish a grant program under 9 this section and, to the extent amounts are made available 10 VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3332 IH pursuant to subsection (j), make grants under such pro- 1 gram to eligible entities under subsection (b) for acquiring 2 and preserving manufactured housing communities. 3 (b) ELIGIBLE ENTITIES.—A grant under this section 4 may be made only to entities that meet such requirements 5 as the Secretary shall establish to ensure that any entity 6 receiving a grant has the capacity to acquire and preserve 7 housing affordability in such communities, including— 8 (1) a nonprofit organization, including land 9 trusts; 10 (2) a public housing agency or other State or 11 local government agency; 12 (3) an Indian tribe (as such term is defined in 13 section 4 of the Native American Housing Assist- 14 ance and Self-Determination Act of 1996 (25 U.S.C. 15 4103)) or an agency of an Indian tribe; 16 (4) a resident organization in which home- 17 owners are members and have open and equal access 18 to membership; or 19 (5) such other entities as the Secretary deter- 20 mines will maintain housing affordability in manu- 21 factured housing communities. 22 (c) USE OF GRANT AMOUNTS.—Amounts from a 23 grant under this section may be used only for— 24 VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3332 IH (1) the acquisition and preservation of manu- 1 factured housing communities; 2 (2) such acquisition and preservation, together 3 with costs for making improvements to common 4 areas and community property for acquired manu- 5 factured housing communities; or 6 (3) the demolition, removal, and replacement of 7 dilapidated homes from a manufactured housing 8 community. 9 (d) PRESERVATION; AFFORDABILITY; OWNERSHIP.— 10 A grant under this section may be made only if the Sec- 11 retary determines that the grantee will enter into such 12 binding agreements as the Secretary considers sufficient 13 to ensure that— 14 (1) the manufactured housing community ac- 15 quired using such grant amounts— 16 (A) will be maintained as a manufactured 17 housing community for a period that begins 18 upon the making of such grant and has a dura- 19 tion not shorter than 20 years; 20 (B) will be managed in a manner that ben- 21 efits the residents and maintains their quality 22 of life for a period not shorter than 20 years; 23 (C) will, for a period not shorter than 20 24 years, be subject to limitations on annual in- 25 VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3332 IH creases in rents and other required costs for 1 lots for manufactured homes in such commu- 2 nity either through resident control over in- 3 creases or, if owned by a party other than the 4 residents, as the Secretary considers appro- 5 priate to ensure continued affordability and 6 maintenance of the property, but not in any 7 case annually to exceed the percentage that is 8 equal to the percentage increase for the imme- 9 diately preceding year in the Consumer Price 10 Index for All Urban Consumers (CPI–U) plus 11 7 percent, and such rents will comply with any 12 applicable State laws; 13 (D) will be owned by an entity described in 14 subsection (b) for a period not shorter than 20 15 years; and 16 (E) has not been the primary beneficiary 17 of a grant under this section during the pre- 18 ceding 5 years; and 19 (2) if in the determination of the Secretary the 20 provisions of the agreement have not been met, the 21 grant shall be repaid. 22 (e) AMOUNT.—The amount of any grant under this 23 section may not exceed the lesser of— 24 (1) $2,000,000; or 25 VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3332 IH (2) the amount that is equal to $20,000 multi- 1 plied by the number of manufactured home lots in 2 the manufactured housing community for which the 3 grant is made. 4 (f) MATCHING FUNDS.—The Secretary shall require 5 a grantee of grant under this section to provide non-Fed- 6 eral matching funds for use only for the same purposes 7 for which the grant is used in an amount equal or exceed- 8 ing the amount of the grant provided to the grantee. Such 9 non-Federal matching funds may be provided by State, 10 tribal, local, or private resources and may be a grant or 11 loan, in cash or in-kind. 12 (g) APPLICATIONS; SELECTION.— 13 (1) APPLICATIONS.—The Secretary shall pro- 14 vide for eligible entities under subsection (b) to 15 apply for grants under this section, and shall require 16 such applications to contain such assurances as the 17 Secretary may require regarding the availability of 18 matching funds sufficient to comply with subsection 19 (f) and any organizational documents regarding the 20 manufactured housing community for which the 21 grant is made, as may be required by the State in 22 which such community is located. The Secretary 23 shall accept applications on a rolling basis and ap- 24 prove or deny each application within 20 business 25 VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3332 IH days of receipt in order to facilitate market-based 1 transactions by an applicant. 2 (2) SELECTION.—The Secretary shall establish 3 criteria for selection of applicants to receive grants 4 under this section, which criteria shall— 5 (A) give priority to grantees who would use 6 such grant amounts to carry out activities 7 under subsection (c) within areas having a high 8 concentration of low-, very low-, or extremely 9 low-income families (as such terms are defined 10 in section 3(b) of the United States Housing 11 Act of 1937 (42 U.S.C. 1437a(b))); 12 (B) give priority to grants for the benefit 13 of communities that have not received a grant 14 under this section during the preceding 10 15 years; and 16 (C) ensure that not more than 40 percent 17 of grant funds for any fiscal year are awarded 18 to entities identified in subsection (b)(5). 19 (h) REPORTS.— 20 (1) IN GENERAL.—The Secretary shall submit 21 a report annually regarding the grant program 22 under this section to Committee on Financial Serv- 23 ices of the House of Representatives and the Com- 24 mittee on Banking, Housing, and Urban Affairs of 25 VerDate Sep 11 2014 03:02 Jun 26, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3332 IH the Senate, and shall make each such report publicly 1 available on the website of the Department of Hous- 2 ing and Urban Development. The first such report 3 shall be made for the first fiscal year in which any 4 grants are made under this section and a report 5 shall be made for each fiscal year in which a grantee 6 is subject to the requirements under subparagraph 7 (d)(1)(A). 8 (2) CONTENTS.—Each such report shall in- 9 clude, for the fiscal year covered by the report— 10 (A) a description of the grants made under 11 the program, including identification of what 12 type of eligible entity under subsection (b) each 13 grantee is; 14 (B) for each manufactured home commu- 15 nity for which a grant under this section is 16 made, identification of— 17 (i) the number of manufactured home 18 units in the community at the time of the 19 grant; 20 (ii) the lot rents in the community at 21 such time; and 22 (iii) if a manufactured home commu- 23 nity was purchased using grant amounts, 24 the purchase price of the community; 25 VerDate Sep 11 2014 03:02 Jun 26, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 3332 IH (C) summary information identifying the 1 total applications received for grants under this 2 section and total grant funding sought, 3 disaggregated by the types of eligible entities 4 under subsection (b) of the applicants; and 5 (D) an analysis of the effectiveness of the 6 program, including identification of changes to 7 the number of units and lot rents in commu- 8 nities for which a grant was made, any signifi- 9 cant upgrades made to the communities, demo- 10 graphic changes in communities, and, if any 11 community is sold during the period covered 12 under subsection (d), the sale price of the com- 13 munity. 14 (i) DEFINITIONS.—For purposes of this section, the 15 following definitions shall apply: 16 (1) MANUFACTURED HOME.—The term ‘‘manu- 17 factured home’’ means a structure, transportable in 18 one or more sections, that— 19 (A) in the traveling mode, is 8 body feet 20 or more in width and 40 body feet or more in 21 length, or when erected on site is 320 square 22 feet or more; 23 (B) is built on a permanent chassis and 24 designed to be used as a dwelling (with or with- 25 VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 3332 IH out a permanent foundation when connected to 1 required utilities) and includes plumbing, heat- 2 ing, air conditioning, and electrical systems; 3 and 4 (C) in the case of a structure manufac- 5 tured after June 15, 1976, is certified as meet- 6 ing the Manufactured Home Construction and 7 Safety Standards issued under the National 8 Manufactured Housing Construction and Safety 9 Standards Act of 1974 (42 U.S.C. 5401 et 10 seq.) by the Department of Housing and Urban 11 Development and displays a label of such cer- 12 tification on the exterior of each transportable 13 section. 14 Such term shall not include any self-propelled rec- 15 reational vehicle. 16 (2) MANUFACTURED HOUSING COMMUNITY.— 17 The term ‘‘manufactured housing community’’ 18 means a community comprised primarily of manu- 19 factured homes used primarily for residential pur- 20 poses. 21 (3) SECRETARY.—The term ‘‘Secretary’’ means 22 the Secretary of Housing and Urban Development. 23 (j) AUTHORIZATION OF APPROPRIATIONS.—There is 24 authorized to be appropriated for grants under this section 25 VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 3332 IH $100,000,000 for each of fiscal years 2022 through 2026, 1 of which not more than 5 percent may be used for admin- 2 istration and oversight. 3 (k) REGULATIONS.—The Secretary shall issue any 4 regulations necessary to carry out this section. 5 Æ VerDate Sep 11 2014 00:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\H3332.IH H3332 kjohnson on DSK79L0C42PROD with BILLS