NOTICE OF SALE OF MOBILE HOME PARKS

HB0167

HOUSE BILL 167

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Cristina Parajón
and
Patricia Roybal Caballero

AN ACT

RELATING TO PROPERTY; ENACTING A NEW SECTION OF THE MOBILE HOME
PARK ACT TO REQUIRE NOTICE BEFORE THE SALE OF A MOBILE HOME
PARK; CREATING AN OPPORTUNITY TO PURCHASE; PROVIDING FOR
ENFORCEMENT; INCREASING THE AMOUNT OF THE CAPITAL GAINS INCOME
TAX DEDUCTION FOR THE SALE OF A MOBILE HOME PARK TO RESIDENTS
OF THE MOBILE HOME PARK PURSUANT TO THE MOBILE HOME PARK ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
A new section of the Mobile Home Park Act is
enacted to read:

"[
NEW MATERIAL
] SALE OF A MOBILE HOME PARK--NOTICE
REQUIREMENTS--OPPORTUNITY TO PURCHASE.--

A. Before a mobile home park may be sold, the owner
shall notify each resident of the mobile home park and the
executive director of the New Mexico mortgage finance authority
of any third-party offer to purchase that the owner intends to
accept.

B. All notices pursuant to this section shall:

(1) be in writing;

(2) be sent by first-class certified mail with
tracking and return receipt requested;

(3) be posted on the front door of each
resident household in the mobile home park;

(4) include the material terms, conditions and
amount of the offer;

(5) in the case of a proposed sale of more
than one mobile home park or a mobile home park and one or more
other nonrelated properties in a single transaction, state both
the aggregate price and the price of the mobile home park in
which the residents receiving the notice reside; and

(6) include a notice that enumerates the
residents' rights as provided in this section.

C. The owner shall provide the residents the
opportunity to purchase the mobile home park before the owner
accepts the third-party offer to purchase identified in the
notice to residents if:

(1) within seventy-five days from the date
when notice was posted on residents' homes, the owner is
provided:

(a) documentation that verifies that the
owners of at least fifty-one percent of the mobile homes in the
mobile home park that are occupied by a resident or a family
member of the resident have approved purchase of the mobile
home park by the residents; and

(b) a proposed purchase and sale
agreement offered at the same price and on substantially
equivalent terms and conditions as the offer to purchase
identified by the owner in the notice to the residents;

(2) residents who wish to purchase the mobile
home park execute a purchase and sale agreement and within
ninety days following execution obtain a binding commitment for
any necessary financing or guarantees; and

(3) residents who wish to purchase the mobile
home park close on the purchase within a commercially
reasonable amount of time specified in the purchase and sale
agreement.

D. Residents and an owner may extend any of the
time periods provided in Subsection C of this section by
agreement.

E. An owner shall not refuse to enter into or delay
the execution or closing on a purchase and sale agreement with
residents who submit an offer that contains the same price and
substantially equivalent terms and conditions to the third-party offer. A failure by residents to meet the requirements
of Paragraphs (1) through (3) of Subsection C of this section
shall terminate the residents' opportunity to purchase.

F. In the event that residents submit a proposed
purchase and sale agreement that an owner does not consider to
be the same price or substantially equivalent in terms and
conditions to the third-party offer, the owner shall negotiate
with the residents in good faith to determine if an agreement
can be made that would allow the residents to purchase the
mobile home park. The duty of good faith includes a duty to
make the same information available to residents that the owner
has provided to the third-party offeror or another prospective
purchaser. If the owner rejects the residents' proposed
purchase agreement, the owner must provide the reason in
writing to the residents within three days of the date of
rejection. It shall be presumptive evidence of bad faith if an
owner attempts to, or does, require the residents to waive any
of their rights.

G. An owner may accept a third-party offer to
purchase the owner's mobile home park before providing the
notice and opportunity to purchase pursuant to Subsections A
and B of this section if the purchase and sale agreement
executed stipulates that the residents shall be provided with
notice and the opportunity to purchase the mobile home park in
accordance with Subsections A and B of this section before the
sale may be finalized.

H. Nothing in this section shall be construed to
require an owner to provide financing to residents, except to
the extent that financing would be provided to a third-party
offeror. The residents who wish to purchase the mobile home
park as provided in this section may assign their rights
provided in this section to a local or state government, state
agency, housing authority, tribal government or nonprofit
organization for the purpose of continuing the use as a mobile
home park.

I. The opportunity to purchase created in this
section shall inure to the residents beginning on the date that
notice was received by each of the residents. An owner shall
comply with all provisions of this section in connection with
any new offer to sell the owner's mobile home park or any new
offer to purchase the owner's mobile home park that the owner
intends to accept. A new offer to purchase or sell the owner's
mobile home park shall initiate a new effective period for the
opportunity to purchase.

J. If residents have submitted a proposed purchase
and sale agreement that meets the price and is substantially
equivalent in terms and conditions to the offer that the owner
intends to accept, the residents may record an affidavit with
the county clerk of any county where the mobile home park is
located certifying that an offer has been made to the owner by
the residents.

K. The provisions of this section shall apply to
all counties and municipalities, including home rule
municipalities.

L. An owner shall not be required to give notice to
residents as required in this section if:

(1) a bank, mortgage company or any other
mortgagee has foreclosed on the mobile home park and the
mortgagee is selling the mobile home park:

(a) at a foreclosure sale; or

(b) after having purchased the mobile
home park at a foreclosure sale;

(2) the sale or transfer is to a family member
of the owner or to a trust, the beneficiaries of which are
family members of the owner;

(3) the sale or transfer is by a partnership
to one or more of its partners;

(4) the conveyance of an interest in the
mobile home park is incidental to the financing of the mobile
home park;

(5) the sale or transfer is between joint
tenants or tenants in common; or

(6) the sale is pursuant to eminent domain.

M. An owner who sells a mobile home park in
violation of the provisions of this section shall be liable to
each resident who together with other residents offered to
purchase the mobile home park. An owner who violates the
provisions of this section shall be liable for the aggregate
amount of one hundred thousand dollars ($100,000) or twenty
percent of the appraised value of the mobile home park,
whichever is greater. The damages owed to a resident by an
owner shall be a lien on the mobile home park property and
shall take priority over a third-party buyer's interest. For
the purposes of this subsection, residents who possessed the
opportunity to purchase shall select a real estate appraiser
licensed pursuant to the Real Estate Appraisers Act, and the
owner shall be liable for the reasonable cost of the appraisal.

N. An action to enforce the provisions of this
section may be brought by:

(1) the attorney general;

(2) a resident or residents who possess the
opportunity to purchase; or

(3) a person who has been assigned the
opportunity to purchase.

O. A resident who prevails in an action brought to
enforce this section shall be entitled to receive reasonable
attorney fees and court costs from the owner.

P. If an organization controlled by residents or a
group of residents becomes the owner of a mobile home park
pursuant to this section, the organization shall be open to
membership to all owners of mobile homes who occupy the home
and live in the community."

SECTION 2.
Section 7-2-34 NMSA 1978 (being Laws 1999,
Chapter 205, Section 1, as amended) is amended to read:

"7-2-34. DEDUCTION--NET CAPITAL GAIN INCOME.--

A. A taxpayer may claim a deduction from net income
in an amount equal to the greater of:

(1) the taxpayer's net capital gain income for
the taxable year for which the deduction is being claimed, but
not to exceed two thousand five hundred dollars ($2,500); [
or
]

(2) forty percent of up to one million dollars
($1,000,000) of the taxpayer's net capital gain income from the
sale of a business that is allocated or apportioned to New
Mexico pursuant to Section 7-2-11 NMSA 1978 for the taxable
year for which the deduction is being claimed;
or

(3) fifty percent of the taxpayer's net
capital gain income from the sale of a mobile home park
pursuant to Section 1 of this 2026 act
.

B. Married individuals who file separate returns
for a taxable year in which they could have filed a joint
return may each claim only one-half of the deduction provided
by this section that would have been allowed on the joint
return.

C. The deduction provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deduction.

[
C.
]
D.
As used in this section, "net capital gain"
means "net capital gain" as defined in Section 1222 (11) of the
Internal Revenue Code."

SECTION 3.
APPLICABILITY.--The provisions of Section 2 of
this act apply to taxable years beginning on or after January
1, 2026.

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