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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of a manufactured home community. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 94, Property Code, is amended by adding |
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Subchapter E-1 to read as follows: |
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SUBCHAPTER E-1. SALE OF MANUFACTURED HOME COMMUNITY |
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Sec. 94.221. DEFINITIONS. In this subchapter: |
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(1) "Refusal period" means the period of time |
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described by Section 94.224(2). |
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(2) "Tenants' association" means an association formed |
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under Section 94.225. |
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Sec. 94.222. RIGHT OF FIRST REFUSAL REQUIRED. (a) A |
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landlord may not enter into a contract for the sale of a |
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manufactured home community without providing the tenants of the |
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community a right of first refusal under this subchapter. |
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(b) This subchapter does not apply to: |
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(1) a gift or sale of a manufactured home community to |
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a family member of the landlord; |
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(2) a transfer of a manufactured home community to a |
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trust established for the benefit of members of the landlord's |
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family; or |
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(3) a sale resulting from a condemnation proceeding. |
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Sec. 94.223. NOTICE TO RESIDENTS; FORM. (a) Not later than |
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the 14th day after a landlord receives an offer for the purchase of |
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a manufactured home community that the landlord conditionally |
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accepts or plans to accept, the landlord shall provide notice by |
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certified mail to each tenant, or to the owner of the manufactured |
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home if the owner is not the tenant, that the landlord has received |
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an offer for the purchase of the manufactured home community. |
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(b) Not later than the 90th day after giving notice under |
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Subsection (a), the landlord shall post in a common area in the |
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manufactured home community a form that includes: |
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(1) information relating to the tenants' right of |
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first refusal under this subchapter; |
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(2) the purchase price of the manufactured home |
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community in the offer described by Subsection (a); |
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(3) information regarding financing options for |
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purchasing the manufactured home community; |
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(4) information regarding the ability of a tenants' |
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association to assign the tenants' right to purchase a manufactured |
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home community under Section 94.225(b); and |
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(5) a space for a tenant to indicate whether the tenant |
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intends to exercise the right of first refusal or declines to |
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exercise the right. |
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Sec. 94.224. EXPIRATION OF RIGHT OF FIRST REFUSAL. A right |
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of first refusal provided under this subchapter expires: |
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(1) on the 90th day after the date notice is given |
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under Section 94.223 if 50 percent or more of the tenants of the |
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manufactured home community have indicated on the form described by |
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Section 94.223(b) that they decline to exercise the right; or |
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(2) on the 121st day after notice is given under |
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Section 94.223 if a purchase offer is not made to the landlord under |
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Section 94.226 before that day. |
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Sec. 94.225. TENANTS' ASSOCIATION; ASSIGNMENT. (a) A |
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group of tenants may form an association to exercise a right of |
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first refusal under this subchapter if more than 50 percent of the |
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tenants of the manufactured home community indicate on the form |
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described by Section 94.223(b) that they wish to exercise a right of |
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first refusal under this subchapter. |
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(b) An association formed under Subsection (a) may assign |
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its right to purchase a manufactured home community to: |
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(1) a municipality; |
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(2) a county; |
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(3) a state governmental entity; |
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(4) a housing authority; |
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(5) a nonprofit organization; or |
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(6) a tribal governmental entity. |
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Sec. 94.226. OFFER FROM TENANTS' ASSOCIATION. (a) Not |
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later than the 120th day after a landlord gives notice under Section |
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94.223, a tenants' association or a tenants' association's assignee |
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may deliver to the landlord a written offer to purchase the |
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manufactured home community on the same terms as the offer |
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described by Section 94.223(a). |
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(b) Not later than the seventh day after receiving the offer |
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described by Subsection (a), a landlord shall provide a written |
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response: |
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(1) accepting the offer; or |
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(2) rejecting the offer and providing reasons for the |
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rejection. |
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(c) A landlord shall negotiate in good faith with a tenants' |
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association or a tenants' association's assignee for the purchase |
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of the manufactured home community. |
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Sec. 94.227. FINANCING. Except as provided by Section |
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94.228, a tenants' association or a tenants' association's assignee |
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must obtain any financing necessary for the purchase of the |
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manufactured home community not later than the 90th day after |
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making an offer under Section 94.226. |
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Sec. 94.228. EXTENSION OF REFUSAL PERIOD. The refusal |
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period may be extended: |
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(1) on written agreement between a tenants' |
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association or a tenants' association's assignee and the landlord; |
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(2) for a reasonable delay in obtaining financing |
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under Section 94.227; |
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(3) during a period when a potential assignee |
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considers an assignment from the tenants' association; or |
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(4) if a tenants' association files a complaint with |
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the Texas Department of Housing and Community Affairs that the |
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landlord has acted in bad faith. |
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SECTION 2. The changes in law made by this Act apply only to |
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a sale of a manufactured home community under an executory contract |
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entered into on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |