Bill Overview
Title: Manufactured Housing Community Sustainability Act of 2022
Description: This bill allows a new 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 the entire two-year period 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 permissible term under state laws that restrict such covenants to a lesser term. The bill defines manufactured home community as a community comprised primarily of manufactured homes used solely for residential purposes and owned by a manufactured home community cooperative or corporation.
Sponsors: Sen. Shaheen, Jeanne [D-NH]
Target Audience
Population: Individuals living in manufactured home communities
Estimated Size: 22000000
- The legislation is aimed at maintaining and promoting the sustainability of manufactured home communities.
- A manufactured home community is relatively lower in cost compared to traditional housing, making it crucial for affordable housing initiatives.
- Manufactured homes house individuals and families across income spectrums, but are critical for low to middle-income families who typically cannot afford single-family homes.
- In the U.S., millions of people live in manufactured homes, which shows the significance of this sector.
Reasoning
- The population affected by this policy will predominantly be those living in manufactured home communities, which is a significant number of people given the U.S. Census estimates about 22 million such residents.
- The policy aims to incentivize the stability and growth of manufactured home communities by providing tax relief to property sellers, which could maintain or increase housing availability.
- People not living in manufactured homes or involved in the sale of such properties are unlikely to be affected directly by this policy.
- However, stabilizing these communities could potentially benefit local economies and indirect stakeholders by preserving affordable housing and preventing displacement.
- The budget constraints mean only a limited number of property sales can avail of the tax credit initially, but potentially more over the long term.
Simulated Interviews
Nurse (Springfield, Missouri)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 50.0 years
Commonness: 10/20
Statement of Opinion:
- This will help keep our community stable, and I worry less about being priced out.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Property Manager (Tampa, Florida)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This provides a great incentive to sell properties to resident cooperatives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Freelancer (Austin, Texas)
Age: 28 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- This could encourage more sustainable communities. I'm excited to stay long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Retired (Flagstaff, Arizona)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- It's a bittersweet situation, selling could mean better tax benefits but I'm attached to some properties.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 4 |
Homemaker (Greenville, South Carolina)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- It reassures me that I might not need to relocate in the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Community Organizer (Burlington, Vermont)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 30.0 years
Commonness: 5/20
Statement of Opinion:
- This policy feels like a win for housing equity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
School Teacher (Helena, Montana)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- If the policy truly keeps rents stable, it helps me immensely.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 2 |
Software Developer (Denver, Colorado)
Age: 37 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Might be a good time to sell and invest further afield.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Truck Driver (Des Moines, Iowa)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- Hoping it translates to more stability, which is crucial for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Yoga Instructor (Portland, Oregon)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I'm cautiously optimistic; community relationships are important.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Cost Estimates
Year 1: $350000000 (Low: $300000000, High: $400000000)
Year 2: $360000000 (Low: $310000000, High: $410000000)
Year 3: $370000000 (Low: $320000000, High: $420000000)
Year 5: $390000000 (Low: $340000000, High: $440000000)
Year 10: $420000000 (Low: $370000000, High: $470000000)
Year 100: $500000000 (Low: $450000000, High: $550000000)
Key Considerations
- Monitoring of covenant compliance is crucial to ensure the properties remain manufactured home communities for the stipulated duration.
- The fixed duration of the tax credit might limit understanding of long-term impacts on community sustainability.
- Economic benefits depend on the effectiveness of sustaining these housing developments in growing and redeveloping areas.