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119-s-4613119th CongressWALLET

Manufactured Housing Community Sustainability Act of 2026

Sponsored By: Senator Shaheen, Jeanne [D-NH]

Introduced

Summary

This bill would create a federal tax credit to encourage sales of manufactured home communities to resident or nonprofit ownership. It aims to preserve affordable communities and help low-income homeowners gain stability and build wealth.

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  • Families and residents: Low-income homeowners would get stronger protection from rent increases and community closures through required long-term covenants and resident governance. About 6.7 million occupied manufactured homes house many of these households and the median household income was $35,000 in 2020.
  • Resident and nonprofit buyers: The credit is aimed at sales to resident groups and nonprofits and would support ownership models like limited-equity cooperatives. There are roughly 43,000 manufactured home communities and only 2.4 percent are resident or nonprofit-owned today.
  • Community owners and preservation: Sellers who use the credit must meet governance, covenant, and recapture requirements designed to keep communities affordable. The measure targets reduced disinvestment and fewer disruptive closures for residents.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Credit treated as general business credit

This bill would add the new manufactured home community sale credit to the list of general business credits. That change would make it easier to use the credit against business tax bills and to carry it forward or back. The change would apply for taxable years beginning after December 31, 2026.

Tax credit for manufactured community sales

This bill would create a tax credit equal to 75% of the "qualified gain" when you sell real property used as a manufactured home community to a qualified resident-owned cooperative or nonprofit. To qualify, the seller (or a related person) must have owned the property for the full two years before the sale and the transfer must be subject to a recorded covenant keeping the land a manufactured home community for at least 50 years. Both buyer and seller would sign and record an affidavit referenced in the deed, and the seller would attach a copy to the tax return claiming the credit. If the buyer violates the covenant later, the buyer would owe a recapture tax equal to 20% of the net proceeds after settlement. The credit would apply for taxable years beginning after December 31, 2026.

Sponsors & CoSponsors

Sponsor

Shaheen, Jeanne [D-NH]

NH • D

Cosponsors

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 5/20/2026

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 5/20/2026

Roll Call Votes

No roll call votes available for this bill.

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