Protections for vulnerable mobile home-owners preserve affordable housing
Home ownership is touted as the American dream. Unfortunately, it can often become the American nightmare when you own the home but not the land under it. This is the situation facing the up to 8 percent of Washingtonians who own homes but rent lots in manufactured housing communities.
There are approximately 1,800 manufactured housing communities in Washington, providing spaces for more than 100,000 households. Many of these households are young families just starting out on the home ownership ladder. Others are seniors who chose to move into manufactured housing communities as a way of retaining their independence in an easy-to-maintain home.
Unfortunately, manufactured housing community living is fraught with insecurity. Homeowners are sometimes victims to abusive practices by community owners who flaunt the existing manufactured/mobile home landlord tenant act, knowing that they will get away with it. Homeowners have little choice but to put up with the landlord’s illegal acts since moving their home out of the community is a virtual impossibility.
Additionally, between April of 2006 and December of 2007, 38 communities throughout the state will close, resulting in the displacement of more than 1,400 households. Approximately 50 percent of these households will be unable to find an alternative site for their homes and will therefore have to pay to have them demolished, even if they still owe a mortgage on the home.
Fortunately, several bills have been introduced this legislative session that could address the crisis facing many manufactured home owners.
HB 1461 sponsored by Rep. Dawn Morrell and its companion bill SB 5477 sponsored by Sen. Jim Kastama, both of the 25th District, would guarantee compliance with the existing manufactured/mobile home landlord tenant act. These bills provide an opportunity for homeowners or community owners to file complaints with the Attorney General’s office which will investigate complaints, attempt mediation between the parties, provide a timeline for compliance, and issue fines for non-compliance. Both the homeowners and the community owners will pay an annual fee that will cover almost 50 percent of the cost of this program.
HB 1621 sponsored by Rep. Brian Sullivan of the 21st District and its companion bill SB 5780, sponsored by Sen. Eide of the 30th District, provide an incentive for manufactured housing community owners who choose to sell their properties to the homeowners residing in their community. A community owner who chooses to sell to the homeowners’ association receives not only the fair market value for the property, but also an added incentive in the form of exemption from paying the state’s portion of the real estate excise tax — an additional 1.28 percent of the purchase price goes to the community owner. The hope is that this will lead sellers to good faith negotiations that allow homeowners to remain in the community of their choice.
If the community owner does not want to take advantage of the real estate excise tax exemption, then they may proceed to advertise the community for sale on the open market, with the caveat that a local housing authority who can match any outside offer has an opportunity to do so before the community can be sold to an outside developer. Manufactured housing communities are the largest source of unsubsidized housing for low-income families and seniors.
Guaranteeing compliance with existing law and providing incentives to encourage the preservation of manufactured housing communities shows that the Legislature cares about the quality of life of manufactured home owners and values this lifestyle choice as a worthwhile option for thousands of Washington’s families.
The Legislature will help home owners’ dreams come true by passing HB 1461/SB 5477 and HB 1621/SB 5780.
By ISHBEL DICKENS, Guest Columnist
Ishbel Dickens is a long-time housing activist and a lawyer with Columbia Legal Services in Seattle.
For copy of actual issue, go to https://www.realchangenews.org/2007/03/07/mar-7-2007-entire-issue