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For the 40,000 people living in the state’s manufactured home communities, compromise legislation that was unanimously passed in the Senate, Monday, June 30, assures that they will be allowed first offer to buy their parks, should they go up for sale.
The measure also gives the homeowners a second chance to buy their parks sold at auction – if they match winning bids.
Passing the bill, which was introduced as the right-of-first-refusal bill last year, took much wrangling, rewriting and debating among lawmakers, park owners and homeowners.
In its most recent form, House Bill 504, called a truly compromise piece of legislation by Sen. George Bunting, D-Bethany Beach, is also being used as a legislative model nationally, says Ed Speraw, president of the Delaware Manufactured Home Owners Association (DMHOA).
“I think it went very well. Valerie Longhurst, Pete Schwartzkopf and Bob Valihura did a great job. Of course, Sen. Bunting is to be applauded for all he does for manufactured housing,” said Speraw.
“It is a law that will be sent everywhere. I’ve already sent it to Utah, Florida and California. All these folks are interested in it. It is a good law,” said Speraw.
After manufactured homeowners began complaining to legislators about escalating lot rents – including yearly increases as high as 50 percent – on land not owned by them, Sen. George Bunting, D-Bethany Beach, introduced Senate Bill 122, or the right-of-first-refusal bill, last year.
That measure passed the Senate 17-2, but stalled in a House subcommittee until recently.
With 40 representatives voting in favor and one abstaining, H.B. 504 – assigned a new number and title – coasted through the House of Representatives on Tuesday, June 24. The governor has yet to sign the bill, but there is no opposition, said Rep. Pete Schwartzkopf, D-Rehoboth Beach. He said plans are under way to hold a ceremonial signing of the bill.
New name, same protection
H.B. 504 says manufactured home park owners may not sell their parks to another party at the same price offered by, or less than the sum offered by those living within the parks.
Every member of the House was listed as a sponsor of the bill, with the exception of Rep. Gerald Hocker, R-Ocean View, who abstained from discussion and voting, citing a conflict of interest as a park owner. Sens. Bunting and Gary Simpson, R-Milford, are also bill co-sponsors.
Simpson, who cast his vote in favor of the legislation, said he could not be more pleased that both sides were able to come to a compromise.
Fred Neil, DMHOA public affairs officer, said the bill gives those manufactured homeowners, who are ready to buy their communities, a real opportunity to do so and to preserve their homes.
“DMHOA is delighted that homeowners will now have the opportunity to buy their communities and preserve their way of life without the fear their communities will be sold out from under them,” said Neil. He said the measure helps to preserve non-government-subsidized, taxpayer-owned, affordable housing.
Bunting said the bill was well received in the Senate, in part because the Senate had previously passed legislation on manufactured housing.
He complimented Schwartzkopf and Manufactured Housing Subcommittee Chairman Rep. Robert Valihura, R-Talleyville, for helping pound out the compromise.
The homeowners’ plight – and corresponding bills – became a politically charged controversy, dividing the major parties until the recent passing of H.B. 504.
Schwartzkopf said the path to the compromise was at times difficult.
Park owners wanted the right to auction their land, something to which residents were initially opposed, he said. Park owners also wanted to recognize any homeowners’ association, while homeowners wanted the organization representing them to only be recognized, he said.
Schwartzkopf said it took a lot of discussion and compromise to get to this point. He called the compromise a win for each side. “We were all concerned with having some protection in place for the tenants before we get done in June,” Schwartzkopf said.
Speraw said the bill is a national legislative model because it is comprehensive and covers all types of potential park sales.
“We didn’t go for just right-of-first-refusal bill, we went into different types of sales such as those taking place at auction,” said Speraw. “I think it’s worked out very well. Certainly we’re already hearing now from other manufactured home communities about what they can do to get their communities in line too. It’s going to be a jump-start for DMHOA particularly.”
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