If Your Community Is Being Sold or Closed
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Finding out your community may be sold, converted, or closed is one of the most stressful things a manufactured home owner can face. You could be forced to move your home with little warning. But you do have protections. Make sure to learn about them and act quickly.
What happens when my community is being sold?
If the owner wants to sell your community, residents have the first chance to buy it. The owner cannot sell the community to someone else until residents and the local government have had the chance to make an offer. This is called the right of first refusal.
Here is how it works:
The owner accepts an offer from a buyer.
Within five business days, the owner must notify all tenants and the city or county where the community is located. This notice must include the sale price and other information about the contract.
Tenants can decide whether they want to buy the community.
Tenants have 15 days after receiving the notice to tell the owner in writing that they want to buy the community instead. More than 50 percent of tenants with valid leases must agree to participate before tenants can make an offer.
If tenants do not make an offer, the local government gets the next opportunity.
The city or county has 15 days to tell the landlord in writing that it wants to buy the community.
If neither the residents nor the local government make an offer, the sale can move forward.
Once 30 days have passed since the owner gave notice, the owner can complete the original sale.
If the sale price changes by more than five percent later, the owner must start the process over and give a new notice.
What if residents want to buy the community?
If you and your neighbors tell the owner you want to buy the community, you have:
- 60 days to make an offer, then
- 60 more days to figure out how you will pay and complete the purchase.
120 days can pass quickly. Do not wait to start organizing and exploring your options. Some nonprofit organizations help residents purchase manufactured home communities. Contact Virginia Poverty Law Center for information about your rights and available resources.
What if my community is being converted or closed?
If your community is closing, the law requires your landlord to give you advance notice. How much notice depends on the situation.
If the current owner is closing the community to use the land for a new purpose, they must give all tenants at least 180 days notice before the community closes. This gives you time to make arrangements for your home.
If the community is being sold to a developer who plans to close and redevelop the land, the same 180 days notice applies. The owner must also pay each tenant $5,000 in relocation assistance to help cover the cost of moving.
In either case, 180 days can go faster than you think. As soon as you receive notice, start making a plan. Contact your local legal aid office right away to make sure your rights are protected.
What is a resident-owned community?
A resident-owned community (ROC) is a manufactured home community owned by the residents themselves, usually through a cooperative or nonprofit. When residents own the land, they have much more security. No outside owner can decide to sell or develop the land without the residents' agreement.
You and your neighbors have the right to buy your community anytime, not just when your landlord is trying to sell it. Your landlord is required by law to consider your offer seriously. If they turn you down, they must explain their reasons in writing.
How can I check if my landlord is a licensed dealer?
If your landlord sold more than three homes in your community within a 12-month period, Virginia law requires them to have a dealer's license.
To find out whether your landlord is licensed, contact the Virginia Manufactured Housing Board.
If your landlord sold more than three homes in a 12-month period without a license, you can file a complaint with the State Corporation Commission (SCC) at 800-552-7845.
You can also contact the SCC if your landlord sold your community to an owner located outside Virginia that does not have employees in Virginia.
Where can I get free or low-cost help?
- If you want to form a ROC, get in touch with legal aid. Find your local legal aid office: virginialawhelp.org/get-legal-help
- Ask a lawyer a question online for free: virginia.freelegalanswers.org
- Get a low-cost attorney consultation for $35: vsb.org/Site/legal-help/vlrs.aspx
Things to remember
- Your landlord must give you written notice before selling, converting, or closing the community. How much notice depends on the situation.
- You and your neighbors have the right to put in an offer to buy your community, but you may need to act quickly.
- If your community is being sold to a developer or closed for redevelopment, you are entitled to at least 180 days' notice and $5,000 in relocation assistance.
- 180 days can go faster than you think. Start making a plan as soon as you receive any notice.
- Contact your local legal aid office right away if you receive any notice about a sale, conversion, or closure.