Bill Overview
Title: Frank Adelmann Manufactured Housing Community Sustainability Act
Description: This bill allows a business-related tax credit equal to 75% of the gain from the sale or exchange of real property to a qualified manufactured home community cooperative or corporation if (1) the property is acquired for use as a manufactured home community, (2) the seller (or any related person) owned the property for at least two years before the sale or exchange, and (3) the property is transferred subject to a binding covenant that the property will be used as a manufactured home community for at least 50 years or the maximum term permitted under state law. A qualified manufactured home community cooperative or corporation is a cooperative or a nonprofit corporation established pursuant to the laws of the state in which the property is located. The bill specifies membership and governance requirements for the communities owned by the cooperative or nonprofit corporation. The bill also imposes a tax on buyers who violate the covenant to use the property for manufactured housing for at least 50 years or the maximum term permitted under state law.
Sponsors: Rep. Omar, Ilhan [D-MN-5]
Target Audience
Population: People living in manufactured housing communities
Estimated Size: 22000000
- Manufactured home communities are a significant provider of affordable housing in the U.S.
- Approximately 20 million people live in manufactured homes, often in communities like those targeted by the bill.
- The bill encourages more affordable housing options by providing a tax incentive for the sale of property to cooperatives or nonprofit corporations focused on manufactured home communities.
- The bill's incentives and penalties will influence businesses and property owners considering the sale of land for such use.
- Housing stability is promoted through long-term covenants ensuring the land remains a manufactured home community.
Reasoning
- Considering the breadth of the policy, the primary impact will be on individuals residing in or owning properties within manufactured home communities. These individuals are typically part of lower-income brackets, as manufactured homes provide a more affordable housing solution.
- The policy offers an attractive incentive to property owners to sell to cooperatives or nonprofits aiming to sustain manufactured home communities, thus likely preventing the sale of these lands for other purposes.
- Many residents in these communities face housing insecurity, and this policy could significantly impact their wellbeing by providing longer-term stability.
- However, given the budget constraints, there is a finite limit to the number of communities that can benefit immediately, thus not all residents will see an immediate impact.
- Some property owners might choose to hold onto their properties and not take advantage of the tax incentive, lowering the overall number of effected persons in early years.
Simulated Interviews
Home health aide (Kentucky)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I worry a lot about the stability of our community. I've seen too many people being priced out of their homes or losing them when the land changes hands.
- This bill seems promising if it means we would have more control over what happens to the land our houses sit on.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 2 |
| Year 20 | 8 | 1 |
Retired (Florida)
Age: 70 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I'm on a fixed income, and it's always been a concern if the land were sold and redeveloped I'd have nowhere to go.
- A cooperative could be beneficial as I would feel more secure in my home situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 6 | 2 |
| Year 20 | 5 | 1 |
Construction worker (Texas)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- It'd be good if some of these incentives mean we are safe from land developers.
- I've been worried that we'll need to find a new place to live, but this policy could mean I don't have to worry about that for a long time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 9 | 2 |
| Year 20 | 9 | 1 |
Student (California)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- This could make a huge difference in the cost of living for students like me who need affordable housing.
- If the land gets sold off for something else, my costs would likely go up, making it impossible to continue studying.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 5 |
| Year 5 | 9 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 2 |
Part-time retail worker (Ohio)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I've always felt at risk of losing my home because I don't own the land.
- If this policy means I could eventually be part of a cooperative or nonprofit, I'd feel a lot safer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 7 | 2 |
| Year 20 | 6 | 1 |
Property manager (West Virginia)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This policy is likely going to change how I do business. I'm interested in the incentive, but I need to see if it's really worth the long-term commitment.
- It could bring stability both for my tenants and for my own management plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Retired (Arizona)
Age: 65 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- I'm not sure this policy will affect me much as I don't live here year-round, but anything that keeps costs stable is appealing.
- I have concerns with any added taxes if selling the property becomes necessary.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 3 |
Waitress (Missouri)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- This bill might mean I don't have to worry as much about sudden rent hikes or land being sold for other uses.
- Affordable housing that's reliable is crucial for people in my situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 9 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 2 |
Self-employed handyman (North Carolina)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I've been considering selling some of my land, and the idea of a tax incentive is appealing.
- Need to weigh the long-term covenant versus immediate financial benefit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Factory worker (Michigan)
Age: 40 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Having some assurance the land will stay for our use is a relief.
- I hope the policy encourages more affordable housing management in the area.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 2 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $25000000 (Low: $20000000, High: $30000000)
Year 3: $30000000 (Low: $25000000, High: $40000000)
Year 5: $40000000 (Low: $35000000, High: $50000000)
Year 10: $60000000 (Low: $50000000, High: $75000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Uncertainty in uptake means variability in cost impact years to reach full implementation.
- Enforcement of covenants and compliance tracking will be administrative considerations.
- Coordination between federal tax credits and state policy impacts needs careful monitoring during implementation.