Tax credit aims to shift manufactured home parks from commercial to resident ownership

What it does

This bill creates a federal tax credit worth 75% of the gain when a manufactured home community owner sells the property to a resident-owned cooperative or nonprofit organization. The credit applies only if the buyer commits to keeping the property as affordable housing for at least 50 years, and is designed to incentivize owners to sell to residents rather than commercial buyers, helping low-income homeowners (median income $35,000) build wealth and avoid displacement from rent increases or community closures.

Why we flagged it

The bill's operative mechanism is a tax credit designed to redirect manufactured home community ownership from commercial operators to resident cooperatives and nonprofits. The public-policy goal—preserving affordable housing and enabling wealth-building for low-income residents—is the primary driver, not a wrapper around a private giveaway.

What the text implies

• The 75% gain credit may be substantial for large communities; a $10M gain yields $7.5M credit, creating significant federal revenue cost not quantified in the bill.
• The 50-year affordability covenant is binding on the buyer but recapture (20% of net proceeds) applies only if the buyer violates it—the seller faces no clawback if the buyer later breaches, creating a one-way incentive structure.
• The bill does not cap the credit per transaction or per taxpayer, potentially allowing multiple large sales by the same entity to claim repeated credits.
• Resident cooperatives and nonprofits may lack capital to purchase large communities; the credit incentivizes sales but does not fund the acquisition, potentially limiting practical uptake.
• The affidavit and deed-recording requirement creates a paper trail but relies on buyer compliance; enforcement of the 50-year covenant depends on IRS monitoring and state law.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Low-income manufactured homeowners (median $35k annually) gain protection from displacement, rent increases, and community closure by enabling resident ownership. The 50-year covenant locks in affordability. The tax credit to sellers is a reasonable incentive to redirect sales toward resident/nonprofit buyers rather than commercial operators, whose communities show 5.9% annual site-fee increases versus 0.9% in resident-owned communities.

Who stands to gain

• Manufactured home community owners (sellers receiving 75% gain credit)
• Resident-owned cooperatives (buyers gaining tax-advantaged acquisition pathway)
• Nonprofit organizations (buyers gaining tax-advantaged acquisition pathway)

Named in the bill

Internal Revenue Code of 1986, Department of Housing and Urban Development (HUD), National Manufactured Housing Construction and Safety Standards Act of 1974, Manufactured home community cooperatives, Nonprofit corporations, State governments (covenant enforcement)

Where it stands

5 cosponsors: 5 Democrats.

• May 21, 2026 — Introduced · Congress.gov: “Introduced in House”
• May 21, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $0 in lobbying spend. A filing names 45 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Ilhan Omar, the sponsor, reported $102,828 in PAC receipts in the 2026 cycle.

• Network — $0 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.