Rep. Ilhan Omar Introduces Bill to Tackle Mobile Home Evictions

May 20, 2019
Press Release

WASHINGTON - Rep. Ilhan Omar (D-MN) introduced the Frank Adelmann Manufactured Housing Community Sustainability Act.  The bill would create a tax credit that incentivizes mobile home park owners to sell their property to the residents for the purposes of creating a cooperative.

“This aspect of our affordable housing crisis is too often ignored,” Rep. Omar said. “Mobile homeowners and renters are unfairly vulnerable to egregious rent hikes, abuses, and eviction. I am proud to introduce this bill to honor the memory of Minnesotan Frank Adelmann, who tragically committed suicide days before the closure of the mobile home park he called home, an event which would have left him homeless.”

Manufactured homes, also known as mobile homes, are a critical piece of our country’s affordable housing stock for working families across the country. More than 17 million Americans live in mobile home parks nationwide.  While many of these residents own their homes, they often do not own the land underneath them. This division of ownership frequently leads to eviction and displacement for residents in the event of park closures or sales. In the past two decades, this resident-owned cooperative model has thrived in several states, helping to protect thousands of Americans from displacement, while also building a sense of community among neighbors and improving overall economic security.

Specifically, the Manufactured Housing Community Sustainability Act:

  • Provides a tax incentive for owners of manufactured home communities to sell to their residents.
  • Creates a 75 percent federal tax credit on the sale of the property. So for example, if the owner sells the land to a resident cooperative, instead of paying $150,000 on a $1 million gain, the owner will only pay $37,500.
  • Includes a provision to ensure the long-term viability of the cooperative communities in order to prevent the tax incentive from being used for unfair gain by either the buyer or seller.

The bill is cosponsored by Reps. Barbara Lee (D-CA-13), Joe Neguse (D-CO-02), Mark Pocan (D-WI-02), Chris Pappas (D-NH-01), Annie Kuster (D-NH-02), Ro Khanna (D-CA-17), and Peter DeFazio (D-OR-04).

This bill is endorsed by several housing housing advocacy groups and resident associations including, the National Manufactured Homeowners Association, All Parks Alliance for Change, the Minnesota Housing Partnership, Prosperity Now, the Local Initiatives Support Corporation, and the Northcountry Cooperative Foundation.

“Many working families, seniors and others who live in manufactured home parks, like Lowry Grove in St. Anthony, buy their homes, pay their lot rent, follow the rules, and are still forced out of their homes and communities. The legislation Rep. Omar is introducing provides a powerful tool to help residents buy their communities, protect their families, and take control of their lives,” said Dave Anderson, Executive Director of the National Manufactured Home Owners Association.

You can view the full legislation here.