State Senator Ghazala Hashmi has introduced Senate Bill 922, which provides a tax incentive for mobile home park owners to sell to nonprofits or entities owned by tenants, in an effort to counteract the trend of large corporations buying mobile home parks and raising the rates on tenants. To qualify, the buyer must be owned by at least 25% of the residents or a tax-exempt organization under 501©(3) and must maintain the property as a mobile home park for at least 30 years after purchase, as per a report by Cardinal News on January 24, 2023.
The bill aims to provide an incentive for mobile park owners to sell their property to nonprofit housing providers in order to keep existing tenants stable and provide affordable housing for communities living in the parks. The incentive for owners is a tax deduction for any gains made from the sale, making it a beneficial situation for all parties involved.
This bill is part of a larger national conversation on affordable housing and is supported by the Virginia Poverty Law Center, according to Hashimi. In 2020, the nonprofit organization Project HOMES purchased the Bermuda Estates manufactured housing community in Chesterfield County, an example of a successful purchase that Hashmi hopes to replicate through her bill.
Senator Hashmi hopes to pass SB 922 to prevent situations like the Massie trailer park in Montgomery County, where a hedge fund company bought the park and evicted tenants. The bill will be discussed in the Senate Committee on Finance and Appropriations today, and Hashmi is open to feedback and changes to ensure its success.