Mobile home community sale

AN ACT Relating to the notice of sale or lease of manufactured/1
mobile home communities; amending RCW 59.20.325 and 59.20.335; and 2
repealing RCW 59.20.300. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. RCW 59.20.300 (Manufactured/mobile home 5
communities— Notice of sale) and 2023 c 40 s 6, 2011 c 158 s 5, & 2008 6
c 116 s 4 are each repealed.7
Sec. 2. RCW 59.20.325 and 2024 c 325 s 2 are each amended to 8
read as follows: 9
(1) An owner shall give written notice of an opportunity to 10
compete to purchase indicating the owner's interest in selling the 11
manufactured/mobile home community before the owner markets the 12
manufactured/mobile home community for sale or includes the sale of 13
the manufactured/mobile home community in a multiple listing, and 14
when the owner receives an offer to purchase that the owner intends 15
to consider ((unless that offer is received during the process under 16
RCW 59.20.330)). 17
(2) The owner shall give the notice in subsection (1) of this 18
section by certified mail or personal delivery to:19
H-0573.1
HOUSE BILL 1358
State of Washington 69th Legislature 2025 Regular Session
By Representatives Gregerson, Hill, Parshley, Obras, Simmons,
Tharinger, Morgan, Nance, Davis, Peterson, Pollet, Stearns, Ramel,
Macri, and Ormsby
Read first time 01/17/25. Referred to Committee on Housing.
p. 1 HB 1358
(a) ((All)) Each tenant((s)) of the manufactured/mobile home 1
community; 2
(b) ((A qualified tenant organization, if there is an existing 3
qualified tenant organization within the manufactured/mobile home 4
community)) The officers of any known qualified tenant organization;5
(c) The department of commerce; ((and))6
(d) The local government within whose jurisdiction all or part of 7
the manufactured/mobile home community exists;8
(e) Any housing authority within whose jurisdiction all or part 9
of the manufactured/mobile home community exists; and10
(f) The Washington state housing finance commission.11
(3) The notice required in subsection (1) of this section must 12
include: 13
(a) The date that the notice was ((mailed by certified mail or 14
personally)) delivered to all recipients set forth in subsection (2) 15
of this section; 16
(b) A statement that the owner is considering selling the 17
manufactured/mobile home community or the property on which it sits;18
(c) A statement that the tenants, through a qualified tenant 19
organization representing a majority of the tenants in the community, 20
based on home sites, or an eligible organization, have an opportunity 21
to compete to purchase the manufactured/mobile home community;22
(d) A statement that in order to compete to purchase the 23
manufactured/mobile home community, within 70 days after the 24
certified mailing or personal delivery date stated in accordance with 25
(a) of this subsection of the notice of the owner's interest in 26
selling the manufactured/mobile home community, the tenants must form 27
or identify a single qualified tenant organization for the purpose of 28
purchasing the manufactured/mobile home community and notify the 29
owner in writing of: 30
(i) The tenants' interest in competing to purchase the 31
manufactured/mobile home community; and 32
(ii) The name and contact information of the representative or 33
representatives of the qualified tenant organization with whom the 34
owner may communicate about the purchase; and 35
(e) A statement that information about purchasing a manufactured/36
mobile home community is available from the department of commerce.37
(4) The representative or representatives of the tenants 38
committee will be able to request park operating expenses ((described 39
in RCW 59.20.330)) from the owner within a 20-day information period 40
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following delivery of the qualified tenant organization's notice to 1
the owner indicating interest in competing to purchase the 2
manufactured/mobile home community. 3
(5) An eligible organization may also compete to purchase and is 4
subject to the same time constraints and applicable conditions as a 5
qualified tenant organization. 6
(6) Electronic delivery of the notice of sale is acceptable to:7
(a) The department of commerce;8
(b) The local government within whose jurisdiction all or part of 9
the manufactured/mobile home community exists;10
(c) Any housing authority within whose jurisdiction all or part 11
of the manufactured/mobile home community exists; and12
(d) The Washington state housing finance commission.13
(7) Delivery of the notice of opportunity to compete to purchase 14
to the department of commerce must include:15
(a) A complete list of all current tenants and contact 16
information listed on the leases within the manufactured/mobile home 17
community on a form as provided by the department of commerce; and18
(b) One copy of the notice as sent to each tenant of the 19
manufactured/mobile home community.20
(8) Notices sent under subsection (2)(c) through (f) of this 21
section must be sent within 10 days of notices sent under subsection 22
(2)(a) and (b) of this section.23
Sec. 3. RCW 59.20.335 and 2024 c 325 s 4 are each amended to 24
read as follows: 25
(1) During the process described in RCW 59.20.325 ((and 26
59.20.330)), the parties shall act in good faith and in a 27
commercially reasonable manner, which includes a duty for the tenants 28
to notify the owner promptly if there is no intent to purchase the 29
manufactured/mobile home community or the property on which it sits. 30
The parties have an overall duty to act in good faith. With respect 31
to negotiation, this overall duty of good faith requirement means 32
that the owner must allow the tenants to develop an offer, must give 33
their offer reasonable consideration, and to further competition, 34
must inform any qualified tenant organization, eligible 35
organizations, and competing potential buyers participating in 36
negotiations upon receipt if a preferred offer is submitted. 37
Furthermore, the owner may not deny residents the same access to the 38
community and to information, such as operating expenses and rent 39
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rolls, that the landowner would give to a commercial buyer. With 1
respect to financial information, all parties shall agree to keep 2
this information confidential. 3
(2) Except as provided in RCW 59.20.340(1), before selling a 4
manufactured/mobile home community to an entity that is not formed by 5
or associated with the tenants, or to an eligible organization, the 6
owner of the manufactured/mobile home community must give the notice 7
required by RCW 59.20.325 ((and comply with the requirements of RCW 8
59.20.330)). 9
(3) A minor error in providing the notice required by RCW 10
59.20.325 ((or in providing operating expenses information required 11
by RCW 59.20.330)) does not prevent the owner from selling the 12
manufactured/mobile home community to an entity that is not formed by 13
or associated with the tenants and does not cause the owner to be 14
liable to the tenants for damages or a penalty. 15
(4) During the process described in RCW 59.20.325 ((and 16
59.20.330)), the owner may seek, negotiate with, or enter into a 17
contract subject to the rights of the tenants in chapter 40, Laws of 18
2023 with potential purchasers other than the tenants or an entity 19
formed by or associated with the tenants or another eligible 20
organization. 21
(5) If the owner does not comply with the requirements of chapter 22
40, Laws of 2023 in a substantial way that prevents the tenants or an 23
eligible organization from competing to purchase the manufactured/24
mobile home community, the tenants or eligible organization may:25
(a) Obtain injunctive relief to prevent a sale or transfer to an 26
entity that is not formed by or associated with the tenants; and27
(b) Recover actual damages not to exceed twice the monthly rent 28
from the owner for each tenant. 29
(6) If a party misuses or discloses, in a substantial way, 30
confidential information ((in violation of RCW 59.20.330)), that 31
party may recover actual damages from the other party.32
(7) The department of commerce shall prepare and make available 33
information for tenants about purchasing a manufactured dwelling or 34
manufactured/mobile home community. 35
(8) Within six months from the date of delivery of a notice of 36
opportunity to compete to purchase as provided in RCW 59.20.325, the 37
owner must provide the department of commerce by mail, electronic 38
delivery, or personal delivery an update on the status of the 39
notification and an update on the status of sale. The update will be 40
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made publicly available by the department of commerce within 10 1
business days of receipt. The notice must include: 2
(a) The date that the notice was sent by mail, electronically 3
delivered, or personally delivered to all recipients as set forth in 4
RCW 59.20.325;5
(b) The status of the sale or the opportunity to compete to 6
purchase of the property as active, under contract, closed, or 7
removed from the market;8
(c) If the property has sold, the date of closing;9
(d) If the property is under contract, the anticipated closing 10
date;11
(e) If the property is active, any change in listing price and 12
other information noted in subsection (1) of this section.13
(9) If the property does not sell within nine months from the 14
date of delivery of the notice of sale and the owner still intends to 15
sell the property, the owner shall serve a new notice of sale.16
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