89R15013 SCR-D
By: Cook S.B. No. 2762
A BILL TO BE ENTITLED
AN ACT
relating to the sale of a manufactured home community.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 94, Property Code, is amended by adding
Subchapter E-1 to read as follows:
SUBCHAPTER E-1. SALE OF MANUFACTURED HOME COMMUNITY
Sec. 94.221. DEFINITIONS. In this subchapter:
(1) "Refusal period" means the period of time
described by Section 94.224(2).
(2) "Tenants' association" means an association formed
under Section 94.225.
Sec. 94.222. RIGHT OF FIRST REFUSAL REQUIRED. (a) A
landlord may not enter into a contract for the sale of a
manufactured home community without providing the tenants of the
community a right of first refusal under this subchapter.
(b) This subchapter does not apply to:
(1) a gift or sale of a manufactured home community to
a family member of the landlord;
(2) a transfer of a manufactured home community to a
trust established for the benefit of members of the landlord's
family; or
(3) a sale resulting from a condemnation proceeding.
Sec. 94.223. NOTICE TO RESIDENTS; FORM. (a) Not later than
the 14th day after a landlord receives an offer for the purchase of
a manufactured home community that the landlord conditionally
accepts or plans to accept, the landlord shall provide notice by
certified mail to each tenant, or to the owner of the manufactured
home if the owner is not the tenant, that the landlord has received
an offer for the purchase of the manufactured home community.
(b) Not later than the 90th day after giving notice under
Subsection (a), the landlord shall post in a common area in the
manufactured home community a form that includes:
(1) information relating to the tenants' right of
first refusal under this subchapter;
(2) the purchase price of the manufactured home
community in the offer described by Subsection (a);
(3) information regarding financing options for
purchasing the manufactured home community;
(4) information regarding the ability of a tenants'
association to assign the tenants' right to purchase a manufactured
home community under Section 94.225(b); and
(5) a space for a tenant to indicate whether the tenant
intends to exercise the right of first refusal or declines to
exercise the right.
Sec. 94.224. EXPIRATION OF RIGHT OF FIRST REFUSAL. A right
of first refusal provided under this subchapter expires:
(1) on the 90th day after the date notice is given
under Section 94.223 if 50 percent or more of the tenants of the
manufactured home community have indicated on the form described by
Section 94.223(b) that they decline to exercise the right; or
(2) on the 121st day after notice is given under
Section 94.223 if a purchase offer is not made to the landlord under
Section 94.226 before that day.
Sec. 94.225. TENANTS' ASSOCIATION; ASSIGNMENT. (a) A
group of tenants may form an association to exercise a right of
first refusal under this subchapter if more than 50 percent of the
tenants of the manufactured home community indicate on the form
described by Section 94.223(b) that they wish to exercise a right of
first refusal under this subchapter.
(b) An association formed under Subsection (a) may assign
its right to purchase a manufactured home community to:
(1) a municipality;
(2) a county;
(3) a state governmental entity;
(4) a housing authority;
(5) a nonprofit organization; or
(6) a tribal governmental entity.
Sec. 94.226. OFFER FROM TENANTS' ASSOCIATION. (a) Not
later than the 120th day after a landlord gives notice under Section
94.223, a tenants' association or a tenants' association's assignee
may deliver to the landlord a written offer to purchase the
manufactured home community on the same terms as the offer
described by Section 94.223(a).
(b) Not later than the seventh day after receiving the offer
described by Subsection (a), a landlord shall provide a written
response:
(1) accepting the offer; or
(2) rejecting the offer and providing reasons for the
rejection.
(c) A landlord shall negotiate in good faith with a tenants'
association or a tenants' association's assignee for the purchase
of the manufactured home community.
Sec. 94.227. FINANCING. Except as provided by Section
94.228, a tenants' association or a tenants' association's assignee
must obtain any financing necessary for the purchase of the
manufactured home community not later than the 90th day after
making an offer under Section 94.226.
Sec. 94.228. EXTENSION OF REFUSAL PERIOD. The refusal
period may be extended:
(1) on written agreement between a tenants'
association or a tenants' association's assignee and the landlord;
(2) for a reasonable delay in obtaining financing
under Section 94.227;
(3) during a period when a potential assignee
considers an assignment from the tenants' association; or
(4) if a tenants' association files a complaint with
the Texas Department of Housing and Community Affairs that the
landlord has acted in bad faith.
SECTION 2. The changes in law made by this Act apply only to
a sale of a manufactured home community under an executory contract
entered into on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.