§ 6242. Mobile home owners’ right to notification prior to park sale
(a) Content of notice. A park owner shall give to each mobile home owner and to the Commissioner of Housing
and Community Development notice by certified mail, return receipt requested, of his
or her intention to sell the mobile home park. If the notice is refused by a mobile
home owner or is otherwise undeliverable, the park owner shall send the notice by
first-class mail to the mobile home owner’s last known mailing address. The requirements
of this section shall not be construed to restrict the price at which the park owner
offers the park for sale. The notice shall state all the following:
(1) that the park owner intends to sell the park;
(2) the price, terms, and conditions under which the park owner offers the park for sale;
(3) a list of the affected mobile home owners and the number of leaseholds held by each;
(4) the status of compliance with applicable statutes, rules, and permits, to the park
owner’s best knowledge, and the reasons for any noncompliance; and
(5) that for 45 days following the notice, the park owner shall not make a final unconditional
acceptance of an offer to purchase the park and that if within the 45 days the park
owner receives notice pursuant to subsection (c) of this section that a majority of
the mobile home owners intend to consider purchase of the park, the park owner shall
not make a final unconditional acceptance of an offer to purchase the park for an
additional 120 days, starting from the 46th day following notice, except one from
a group representing a majority of the mobile home owners or from a nonprofit corporation
approved by a majority of the mobile home owners.
(b) Resident intent to negotiate; timetable. The mobile home owners shall have 45 days following notice under subsection (a) of
this section in which to determine whether they intend to consider purchase of the
park through a group representing a majority of the mobile home owners or a nonprofit
corporation approved by a majority of the mobile home owners. A majority of the mobile
home owners shall be determined by one vote per leasehold and no mobile home owner
shall have more than three votes or 30 percent of the aggregate park vote, whichever
is less. During this 45-day period, the park owner shall not accept a final unconditional
offer to purchase the park.
(c) Response to notice; required action. If the park owner receives no notice from the mobile home owners during the 45-day
period or if the mobile home owners notify the park owner that they do not intend
to consider purchase of the park, the park owner has no further restrictions regarding
sale of the park pursuant to this section. If, during the 45-day period, the park
owner receives notice in writing that a majority of the mobile home owners intend
to consider purchase of the park, then the park owner shall do all the following:
(1) not accept a final unconditional offer to purchase from a party other than leaseholders
for 120 days following the 45-day period, a total of 165 days following the notice
from the leaseholders;
(2) negotiate in good faith with the group representing a majority of the mobile home
owners or a nonprofit corporation approved by a majority of the mobile home owners
concerning purchase of the park; and
(3) consider any offer to purchase from a group representing a majority of the mobile
home owners or from a nonprofit corporation approved by a majority of the mobile home
owners.
(d) Penalty. A park owner who sells a mobile home park without complying with this section shall
be liable to the mobile home owners in the aggregate amount of $10,000.00 or 50 percent
of the gain realized by the park owner from the sale, whichever is greater. A sale,
an offer to sell, or an attempt to sell a mobile home park without complying with
this section shall also be subject to the remedies of section 6205 of this title, including actual and punitive damages.
(e) Exceptions. The provisions of this section do not apply when the sale, transfer, or conveyance
of the mobile home park is any one or more of the following:
(1) through a foreclosure sale;
(2) to a member of the park owner’s family or to a trust for the sole benefit of members
of the park owner’s family;
(3) among the partners who own the mobile home park;
(4) incidental to financing the park;
(5) between joint tenants or tenants in common;
(6) pursuant to eminent domain;
(7) pursuant to a municipal tax sale.
(f) Requirement for new notice of intent to sell.
(1) Subject to subdivision (2) of this subsection, a notice of intent to sell issued pursuant
to subsection (a) of this section shall be valid:
(A) for a period of one year from the expiration of the 45-day period following the date
of the notice; or
(B) if the park owner has entered into a binding purchase and sale agreement with a group
representing a majority of the mobile home owners or a nonprofit corporation approved
by a majority of the mobile home owners within one year from the expiration of the
45-day period following the date of the notice until the completion of the sale of
the park under the agreement or the expiration of the agreement, whichever is sooner.
(2) During the period in which a notice of intent to sell is valid, a park owner shall
provide a new notice of intent to sell, consistent with the requirements of subsection
(a) of this section, prior to making an offer to sell the park or accepting an offer
to purchase the park that is either more than five percent below the price for which
the park was initially offered for sale or less than five percent above the final
written offer from a group representing a majority of the mobile home owners or a
nonprofit corporation approved by a majority of the mobile home owners.
(g) “Good faith.” A leaseholders group representing a majority of the mobile home owners or a nonprofit
corporation approved by a majority of the mobile home owners shall negotiate in good
faith with the park owner for purchase of the park. (Added 1987, No. 252 (Adj. Sess.), § 6, eff. Aug. 1, 1988; amended 1989, No. 229 (Adj. Sess.), § 10; 1993, No. 141 (Adj. Sess.), §§ 6-8, eff. May 6, 1994; 2007, No. 176 (Adj. Sess.), § 64; 2011, No. 137 (Adj. Sess.), § 2, eff. May 14, 2012; 2019, No. 131 (Adj. Sess.), § 16.)