HB 375: Manufactured Home Lot Rental Act; right of first refusal, resident entities and localities. - Virginia

Housing/Consumer Protection Subcommittee Substitute → Chaptered · 6 edits

MODERATE

This bill updates the Manufactured Home Lot Rental Act to strengthen tenant protections by raising the threshold for a 'resident entity' from 25% to over 50% of households. It also streamlines the right of first refusal process, requiring owners to notify tenants annually of their rights and establishing a strict 60-day window for residents to match a sale offer, while adding new rules to prevent owners from penalizing residents for exercising these rights.

Scope change

The bill expands the scope of tenant protections by clarifying when owners must notify tenants of sale rights and by adding specific exemptions for sales to family members or partial owners.

ELIGIBILITY

The definition of a 'resident entity' was changed from representing at least 25% of tenants to representing more than 50% of tenant households, making it harder for smaller tenant groups to trigger the right of first refusal.

REQUIREMENT

Owners must now deliver an annual notice to all tenants informing them of their rights under the right of first refusal and opportunity to purchase sections.

New provisions prohibit sales contracts from including penalties against owners who accept alternative offers from residents or localities, and require owners to notify residents of any price changes if a sale is already in progress.

The commitment to preserve the park as affordable housing for 15 years now applies to both resident entities and localities exercising the right of first refusal.

TIMELINE

The timeline for exercising the right of first refusal was shortened; residents must notify the owner of intent to buy within 15 days, and the owner must receive a purchase offer within 60 days of that notice.

EXEMPTIONS

The right of first refusal does not apply to sales of the park to the owner's family or to entities that already own a portion of the park.

General Laws Substitute → Housing/Consumer Protection Subcommittee Substitute · 3 edits

MINOR

The bill text was reformatted from a standard legislative layout to a 'House Substitute' version with added page numbers and session headers. The substantive legal content, including definitions, rights of first refusal, and enforcement penalties, remains unchanged.

TECHNICAL

The document structure was altered to include page numbers (e.g., 1, 2, 3) and session identifiers (2026 SESSION), replacing the original header style.

Line breaks and spacing were adjusted throughout the text, causing some words to be split across lines differently than in the original version.

The original date stamp 'OFFERED FOR CONSIDERATION 2/05/2026' was removed and replaced with generic placeholder lines and a 'HOUSE SUBSTITUTE' label.

Enrolled → General Laws Substitute · 5 edits

MODERATE

This bill amends the Manufactured Home Lot Rental Act to strengthen protections for tenants by creating a formal 'right of first refusal' for resident entities and localities when a park is sold. It replaces the previous requirement for a 'resident entity' with a lower threshold, now requiring representation of at least 25% of tenants instead of 50%. The bill also adds new sections to formalize the purchase process, establish a requirement for sellers to record an affidavit of compliance, and clarify enforcement rights for tenants if the owner fails to follow the law.

Scope change

The bill expands the scope of entities eligible to exercise the right of first refusal by lowering the tenant representation threshold from 50% to 25%, making it easier for a group of tenants to organize and purchase their community.

ELIGIBILITY

The definition of a 'resident entity' was changed from representing more than 50% of tenant households to representing at least 25% of tenants, lowering the barrier for tenant groups to qualify for purchase rights.

REQUIREMENT

New sections were added to establish a formal process where owners must notify the qualified tenant group and locality before selling to a third party, and the tenant group has 15 days to match the offer.

A new requirement mandates that sellers record an affidavit with the circuit court certifying compliance with the notice and purchase procedures to ensure good title transfer.

ENFORCEMENT

New provisions allow tenants to sue for injunctive relief and statutory damages (12 times monthly rent) if the park owner fails to comply with the new notice and purchase requirements.

DEFINITION

The text was updated to remove the repealed section 55.1-1308.2 and incorporate the new sections 55.1-1308.3, 55.1-1308.4, and 55.1-1308.5 into the Code of Virginia.

Introduced → Enrolled · 7 edits · Apr 13, 2026

MODERATE

This bill updates the Manufactured Home Lot Rental Act to strengthen protections for tenants by raising the threshold for 'resident entities' from 25% to over 50% of households. It also adds new rights for these entities and localities to purchase parks before third-party buyers, requires annual notices of these rights to tenants, and clarifies rules for terminating tenancies due to park conversions.

Scope change

The bill expands the scope of who can exercise a right of first refusal by increasing the eligibility threshold for 'resident entities' and adds new procedural requirements for landlords and localities.

ELIGIBILITY

The definition of a 'resident entity' was changed from representing at least 25% of tenants to representing more than 50% of tenant households with valid rental agreements.

REQUIREMENT

Landlords must now deliver annual written notices to tenants informing them of their rights to purchase the park and the duties of resident entities.

New sections establish a formal right of first refusal for resident entities and localities, allowing them to match a third-party sales offer if they submit a proposal within 180 days.

The notice required when a landlord plans to terminate a tenancy due to park conversion now explicitly informs tenants of the resident entity's opportunity to purchase the park.

Landlords are required to negotiate in good faith with resident entities if an offer to purchase is made, even if the offer is not accepted.

ENFORCEMENT

New provisions allow tenants to sue for injunctive relief and damages (including statutory damages of 12 times monthly rent) if a resident entity or locality that purchased a park violates its commitment to keep it as a manufactured home park.

New provisions require sellers to record an affidavit certifying compliance with the new notice and right of first refusal requirements to ensure clear title.

Manufactured Home Lot Rental Act; right of first refusal, resident entities and localities.

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