AB 527

This bill gives a residents' association (association) of a mobile or manufactured

home community (community) a 90-day right to make an offer to purchase the

community, and a 60-day right to enter into an agreement for the purchase after

making a timely offer, if the owner of the community receives an offer from a third

party for the purchase or other transfer of ownership of the community that the

owner intends to accept. If the owner receives such an offer, before unconditionally

accepting the offer, the owner must provide, by certified mail, to every resident of the

community and to the Wisconsin Housing and Economic Development Authority

(WHEDA), notice that includes the price and other terms of the offer, as well as a

statement that an association has 90 days from the date of the notice to make an offer

to purchase the community.

The bill requires the owner to consider any timely offer to purchase made by an

association and to negotiate in good faith. If an association and the owner enter into

an agreement for the purchase within 60 days after the association makes an offer,

the owner must allow the association a reasonable time beyond the 60-day period

to obtain financing, if necessary. The bill exempts the sale of a community to an

association from payment of the real estate transfer fee, which is a fee that is paid

by the grantor on a conveyance of real property and that is equal to 30 cents of every

$100 of the property's value.

The bill requires WHEDA, upon request by an association, to assist the

association in obtaining financing and to provide technical assistance. The bill

requires the owner to allow an association, its technical assistance provider, and any

prospective lender to have access to information regarding the community that the

owner has provided or would have provided to a prospective purchaser of the

community, such as the terms of any assumable financing, improvements to be made

to the property by the owner in connection with the sale, the appraised value of the

property, hazardous waste data, and income and operating expense information.

Some of the information must be made available at any time after the owner has

given notice to the residents, but some information need not be provided before the

owner accepts an offer to purchase from the association.

Under the bill, if an association makes a timely offer to purchase but the

association and owner do not reach an agreement on the purchase and, as a result,

the community will be retired from the rental housing market, the owner must

provide 120 days' notice of this to the residents.

The bill makes any owner that sells or otherwise transfers ownership of a

community without complying with the requirements of the bill liable to the

residents, in equal shares, in the amount of $50,000 or 50 percent of the gain realized

by the owner from the sale or other transfer, whichever is greater; any resident may

bring an action to enforce the liability. In addition, any resident may bring an action

for an injunction or actual damages. The bill also makes selling or otherwise