Manufactured Housing Tenant’s Bill of Rights Act of 2025
- Bill Number
- H.R. 2461
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-03-27: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-25T08:08:09Z
AI-Generated Summary
Purpose
The Manufactured Housing Tenant's Bill of Rights Act of 2025 aims to protect residents of manufactured home communities (parks where people lease spaces for their homes) by linking federal housing financing to minimum tenant protections. It ensures that loans insured or purchased through specific federal programs are only available to community owners who include these protections in all their lease agreements, promoting fair treatment and preventing abusive practices like sudden rent hikes or unfair evictions.
Key Provisions
- Definitions: Clarifies terms such as "affiliate" (related business entities), "covered loan program" (federal programs for insuring or buying loans for building, repairing, or buying manufactured home communities, including those run by the Department of Housing and Urban Development (HUD), Fannie Mae, and Freddie Mac), "manufactured home community" (a park or court for leasing spaces to place manufactured homes), and "minimum consumer protections" (basic tenant rights outlined below).
- Loan Eligibility Requirements (effective 180 days after enactment):
- Borrowers must certify that all lease agreements in their owned communities (and those of affiliates) include minimum consumer protections.
- Borrowers must submit proof, like copies of standard leases, to HUD or the Federal Housing Finance Agency (FHFA) for verification.
- Minimum Consumer Protections (must be in all relevant leases):
- 1-year lease terms, renewable unless there's good cause (e.g., serious violation) for non-renewal.
- Written notice of rent increases or new charges (e.g., utilities), with justification based on costs; at least 60 days' notice, plus extra time for larger hikes (over 5%, add 30 days per 2.5% increase); includes details on new charges and estimates.
- 5-day grace period for rent payments.
- 15 days to cure (fix) missed rent payments.
- Right to sell a owned manufactured home without moving it out first.
- Right to sell the home in place for at least 45 days after eviction.
- Right to sublease or assign the lease to a home buyer, unless the buyer fails reasonable, uniform screening; if denied, written reasons must be provided.
- Right to post "For Sale" signs.
- 60 days' advance notice of community sale or closure, including sale details; owner must negotiate in good faith with tenants who want to buy.
- Eviction only for material lease violations, rule breaches, or legitimate business reasons stated in the lease; written notice with specific reasons required.
- Does not override stronger state or local tenant laws.
- Pricing Incentives: Discounts on loans must reward protections stronger than the minimums; non-compliant incentives are banned after 180 days.
- Public Transparency: HUD and FHFA must publish a list of compliant communities on a single website, including comparisons to existing Fannie Mae and Freddie Mac protections.
- Penalties for Violations:
- Willful breaches lead to a 2+ year ban on future federal financing or aid.
- Additional fines, plus mandatory restitution to tenants (e.g., 6 months' rent for wrongful eviction; payback of improper rent hikes with 25% interest; up to full lease value for blocking sales).
- Manufactured Home Community Lending Standards Commission:
- 16-member group (including HUD/FHFA reps, enterprise reps, academics, former lawmakers, and residents) to propose stronger protections within 1 year for potential loan incentives.
- Holds hearings, takes testimony; terminates after report submission.
- No pay for members; uses existing rules for operations.
- Standard Lease Development: FHFA, with Fannie Mae and Freddie Mac, must create a model lease within 1 year to ensure community loans qualify for enterprise purchase; submit to Congress.
- Funding: No new money authorized; uses existing HUD and FHFA budgets.
Significant Changes to Existing Law
- Introduces mandatory tenant protections as a condition for federal loan insurance or purchase under HUD's manufactured home park program and the enterprises' (Fannie Mae and Freddie Mac) multifamily loan programs—previously, these programs did not require such uniform safeguards.
- Builds on but standardizes existing voluntary protections from Fannie Mae and Freddie Mac, making compliance mandatory for federal backing and adding enforcement like penalties and public lists.
- Creates a new commission to recommend enhancements, which could lead to future regulations tying loan benefits to even stronger rules.
Potential Impacts
- On Citizens (Tenants): Provides stronger safeguards against predatory practices, such as abrupt evictions or rent gouging, potentially stabilizing housing for low- and moderate-income families who often live in these affordable communities (about 22 million Americans). Could reduce displacement and improve negotiation power during sales.
- On Government Agencies: HUD and FHFA gain enforcement duties (e.g., reviewing certifications, imposing penalties, maintaining websites), increasing administrative workload without new funding. The commission adds temporary oversight but self-terminates.
- On Community Owners and Borrowers: Limits access to low-cost federal financing unless protections are adopted, possibly raising costs for non-compliant owners but encouraging better management. Penalties could deter violations but may increase legal disputes.
- On International Relations: None apparent; focuses on domestic housing policy.
Main Stakeholders Affected
- Tenants and Homeowners: Primary beneficiaries, gaining enforceable rights in leases.
- Community Owners and Operators: Must update leases and face compliance costs or penalties to access financing.
- Borrowers and Lenders: Impacted by loan eligibility rules and pricing incentives for manufactured home investments.
- Federal Agencies: HUD (loan insurance), FHFA (oversight of enterprises), and the new commission (temporary policy development).
- Enterprises (Fannie Mae and Freddie Mac): Required to adjust loan programs, develop standard leases, and verify protections.
- Residents and Experts on Commission: Directly involved in shaping future standards.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens federal consumer protections in housing without preempting state laws (defers to stronger ones), but could lead to litigation over "material violations" or penalty calculations. Ties private leases to federal funding, potentially expanding HUD/FHFA regulatory reach.
- Constitutional: Aligns with Congress's authority over interstate commerce and federal spending (conditioning loans on protections); no apparent free speech or property rights issues, as it regulates federally backed activities.
- Political: Promotes tenant rights in an affordable housing sector vulnerable to corporate ownership, potentially appealing across parties but facing opposition from real estate interests concerned about added burdens. Bipartisan commission structure aims for balanced input, though introduced by Democratic lawmakers.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Pettersen, Brittany [D-CO-7]
Cosponsors (6)
Rep. Bonamici, Suzanne [D-OR-1], Rep. Larson, John B. [D-CT-1], Rep. Tlaib, Rashida [D-MI-12], Rep. Omar, Ilhan [D-MN-5], Rep. Neguse, Joe [D-CO-2], Rep. Craig, Angie [D-MN-2]
Recent Actions
- 2025-03-27: Referred to the House Committee on Financial Services.
- 2025-03-27: Introduced in House
- 2025-03-27: Introduced in House
Bill Versions
- Manufactured Housing Tenant’s Bill of Rights Act of 2025 — issued 2025-03-27 — PDF (20 pages)