States Move to Protect Mobile Home Park Residents

“Because they don’t own the land beneath their homes, mobile home residents are at the mercy of the park’s owners, who could raise their rents or even shut down the park altogether as the land is redeveloped,” writes Kevin Hardy in Stateline. As more investors buy up mobile home parks, the resident ownership model is a key tool in the fight to keep this housing type affordable. 

Coming together to buy one of these parks can be a daunting task for residents — but that could be changing. “Earlier this year, the federal government made available $225 million in grants for improvements at mobile home communities, including those owned by residents, and announced plans to allow resident-owned parks to access federally insured financing to keep rents low or make improvements.” These steps could pave the way for more cooperatively owned parks and protect residents from steep land rent hikes.

According to Hardy, “Currently, 22 states have laws requiring or encouraging owners of manufactured home parks to give homeowners the opportunity to purchase their land collectively. Those laws can vary wildly, with some requiring that the residents be given the right of first refusal, while others simply require park owners to provide notice of their intent to sell.” Some industry groups are pushing back, arguing that resident ownership is not always in the best interest of the residents.

Manufactured housing can cost as much as 45 percent less to build per square foot than site-built homes, making them an affordable option for lower-income households, but are often regulated out of neighborhoods largely due to unwarranted stigma. Now more states, including Maine and New Jersey, are enacting or strengthening laws aimed at encouraging collective ownership of mobile home parks and allowing manufactured housing in all residential neighborhoods.