Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1010 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1010
5	5	January 25, 2024 - Introduced by Representatives DOYLE, EMERSON, CONLEY,
6	6	CONSIDINE, BILLINGS, OHNSTAD, PALMERI, SINICKI, JACOBSON, HONG and
7	7	MADISON, cosponsored by Senators PFAFF, SPREITZER, ROYS, LARSON and AGARD.
8	8	Referred to Committee on Housing and Real Estate.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to create 710.15 (6) of the statutes; relating to: residents' right to
11	11	purchase a mobile or manufactured home community.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill requires the owner of a mobile or manufactured home community
14	14	(community) to provide notice to tenants in the community before selling it or
15	15	changing its use and gives tenants the right to purchase the community under those
16	16	circumstances.
17	17	Under the bill, a community owner must give written notice at least 12 months
18	18	before closing the community or changing the use of the community. A community
19	19	owner must also give written notice if the owner lists the community for sale, receives
20	20	an offer to purchase the community, or is served with a foreclosure complaint for the
21	21	community. Notice must be provided to all adults who occupy a mobile or
22	22	manufactured home within the community (resident). The notice must also be
23	23	posted in a conspicuous public place within the community and must include a
24	24	description of residents' rights, as described in the bill, and pertinent sale
25	25	information, such as the price and terms of any offer received by the community
26	26	owner.
27	27	Under the bill, after providing the required notice, the community owner must
28	28	provide residents 90 days to make an offer to purchase the community and secure
29	29	financing. If residents make an offer to purchase and secure financing, the
30	30	community owner must provide residents an additional 90 days to close on the
31	31	purchase of the community.
32	32	The bill requires a community owner to negotiate with residents in good faith
33	33	for a purchase agreement and to allow residents a commercially reasonable due
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37	37	ASSEMBLY BILL 1010
38	38	diligence period and access to information necessary to make an informed decision
39	39	regarding the purchase. The bill also allows residents to assign their right to
40	40	purchase the community to a local or state government, tribal government, state
41	41	agency, housing authority, or nonprofit organization with housing expertise for the
42	42	purpose of continuing the use of the community.
43	43	Under the bill, a community owner is not required to provide notice, and no
44	44	right to purchase arises, if the owner sells, transfers, or conveys the community in
45	45	good faith to certain persons, including a spouse, certain family members, a joint
46	46	tenant, or a business controlled by the owner.
47	47	For further information see the state fiscal estimate, which will be printed as
48	48	an appendix to this bill.
49	49	The people of the state of Wisconsin, represented in senate and assembly, do
50	50	enact as follows:
51	51	SECTION 1. 710.15 (6) of the statutes is created to read:
52	52	710.15 (6) RESIDENT RIGHT TO PURCHASE. (a) Notice of change of use. A
53	53	community owner shall provide written notice of any intent to close the community
54	54	or convert it to another use at least 12 months before the closure or change in use will
55	55	occur.
56	56	(b) Notice of intent to sell. The community owner shall provide written notice
57	57	of any of the following events within 14 days after the event occurs:
58	58	1. The community owner lists the community for sale.
59	59	2. The community owner receives an offer to purchase the community.
60	60	3. The community owner is served with a summons and complaint commencing
61	61	a foreclosure action under ch. 846 affecting the community.
62	62	(c) Contents and recipients of notice; method of delivery. For notices required
63	63	under pars. (a) and (b), the community owner shall send a written notice by 1st class
64	64	mail to all adult residents and occupants of the community and shall post a copy of
65	65	the notice in a conspicuous, public place within the community. The notice shall
66	66	include a description of the right of residents and occupants under this subsection.
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85	85	SECTION 1
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87	87	For notices required under par. (b) 1. and 2., the notice shall include a description of
88	88	the property to be purchased and the price, terms, and conditions for sale that are
89	89	included in any offers to purchase that have been received by the owner or, if no offer
90	90	has been received, the price, terms, and conditions for sale for which the owner
91	91	intends to sell the community.
92	92	(d) Right to purchase. 1. During the 90-day period after the community owner
93	93	provides a notice under par. (a) or (b), or the 90-day period after residents and
94	94	occupants make an acceptable offer to purchase and secure financing under subd. 2.,
95	95	the owner may not enter into a purchase agreement for the sale of the community
96	96	other than with a representative acting on behalf of at least 51 percent of adult
97	97	residents and occupants. Such a representative shall provide to the community
98	98	owner reasonable evidence that at least 51 percent of adult residents and occupants
99	99	approve of purchasing the community and authorize the representative to act on
100	100	their behalf. During that 90-day period, such a representative has the right to make
101	101	an offer to purchase the community and to secure financing.
102	102	2. If, during the 90-day period under subd. 1., the representative makes an
103	103	acceptable offer to purchase and secures financing, the community owner shall
104	104	provide an additional 90 days for the representative to close on the purchase of the
105	105	community.
106	106	3. Notwithstanding the time periods provided in subds. 1. and 2., if a
107	107	foreclosure sale of the community is scheduled for less than 180 days after the
108	108	community owner provides a notice under par. (b) 3., the periods for a representative
109	109	to make an offer, secure financing, and close on the purchase of the community
110	110	terminate on the date of the foreclosure sale. Notwithstanding the time periods
111	111	provided in subds. 1. and 2., if at least 51 percent of adult residents and occupants
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138	138	SECTION 1 ASSEMBLY BILL 1010
139	139	notify the community owner that they do not wish or intend to purchase the
140	140	community, the periods for a representative to make an offer, secure financing, and
141	141	close on the purchase of the community terminate on the date upon which the owner
142	142	receives such notice from 51 percent of adult residents and occupants.
143	143	4. The community owner shall negotiate with a representative of residents and
144	144	occupants in good faith for a purchase agreement, except that the owner is not
145	145	obligated to provide owner financing. Any purchase agreement entered into with the
146	146	representative shall allow the representative a commercially reasonable due
147	147	diligence period and access by the representative to all information reasonably
148	148	necessary to make an informed decision regarding the purchase. The community
149	149	owner may require the representative to enter into a confidentiality agreement
150	150	regarding the information.
151	151	(e) Assignment of right to purchase. Residents and occupants may assign their
152	152	right to purchase under par. (d) to a local or state government, tribal government,
153	153	state agency, housing authority, or nonprofit organization with housing expertise for
154	154	the purpose of continuing the use of the community.
155	155	(f) Independence of time limits and notice provisions. Each occurrence of a
156	156	triggering event under pars. (a) and (b) creates an independent right to purchase.
157	157	If a 90-day period for making an offer or closing on a purchase is in effect when a new
158	158	triggering event occurs, that 90-day period terminates and a new 90-day period
159	159	begins.
160	160	(g) Exceptions to notice requirement and right to purchase. Notwithstanding
161	161	pars. (a) and (b), a community owner is not required to provide notice, and no right
162	162	to purchase arises, if the owner sells, transfers, or conveys the community in good
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189	189	SECTION 1
190	190	ASSEMBLY BILL 1010
191	191	faith to any of the following, and if the transaction is not made for the primary
192	192	purpose of avoiding the right-to-purchase provisions of this subsection:
193	193	1. A spouse, parent, sibling, aunt, uncle, first cousin, or child of the owner.
194	194	2. A trust, the primary beneficiaries of which are a spouse, parent, sibling,
195	195	aunt, uncle, first cousin, or child of the owner.
196	196	3. A business entity or trust in which the owner owns at least a majority
197	197	interest.
198	198	4. A family member included in the line of intestate succession.
199	199	5. An existing joint tenant or tenant in common.
200	200	6. A person pursuant to eminent domain.
201	201	(h) Requirement to consider offers without triggering event. A community
202	202	owner shall consider in good faith any offer to purchase made by a representative of
203	203	residents and occupants regardless of whether a triggering event under par. (a) or
204	204	(b) has occurred.
205	205	(END)
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