Skip to content
       

Blog

Closing a Manufactured Housing Community: What the Decision Actually Starts

Closing a Manufactured Housing Community: What the Decision Actually Starts

Deciding to close a manufactured housing community or convert it to another use is not a decision followed by an execution. In several states it is the beginning of a regulated multi-year process with statutory notice periods, recording requirements, relocation obligations and, in some jurisdictions, a resident right to buy the property that the closure notice itself triggers.

This article summarises statutory provisions in specific named states and describes general practice. It is not legal advice. Closure and change-of-use requirements vary enormously by state, and local ordinances frequently impose additional obligations. Take any closure or conversion to counsel before you give notice.

"Change of Use" Is Broader Than Closure

Worth establishing first, because operators sometimes assume the rules apply only to a shutdown.

Washington's statutory closure notice, prescribed at RCW 59.21.030, covers conversion of a community to a use other than for mobile homes, manufactured homes or park models, and also conversion to a mobile home park cooperative or a mobile home park subdivision.

So in that state the notice requirement is triggered not only by redevelopment, but by converting to resident ownership or subdividing the lots. An operator selling to a resident cooperative may be within the same statutory framework as one building apartments.

Check what your state defines as a change of use before assuming a transaction sits outside the regime.

The Notice Periods Are Long

Long enough that they change the transaction rather than delaying it.

Washington's prescribed notice form states that the change of use becomes effective on a date two years after the date the closure notice is given. That is the statutory form's own language, not a maximum.

California operates on a different structure. Guidance published on the Mobilehome Residency Law describes the position as depending on whether local permits are required. Where they are, the community must give residents 60 days' notice of any local hearings, followed by a 60-day written notice once permits are approved. Where no local permits are required, the requirement described is at least 12 months' advance written notice.

Other states are shorter. Published guidance describes Michigan as requiring one year's written notice for communities with 100 or more lots, and Ohio as requiring 180 days. Those come from secondary sources, so confirm the current position in any state you operate in.

The commercial point. A two-year notice period is not an administrative delay. It is a two-year period during which you are still operating a community you have announced you are closing, with residents who know.

Where the Notice Goes, and What It Does to Your Title

Washington's provisions are worth reading in detail, because they show how far a closure notice can reach beyond the residents.

Under RCW 59.21.030, the closure notice must be given in writing to the director or the director's designee and to all tenants, and must be conspicuously posted at all park entrances.

Then four further requirements:

  1. A copy must be provided with every rental agreement signed after the original closure notice date. So the notice follows the property forward into new tenancies.

  2. The notice must be recorded in the office of the county auditor for the county where the community is located. That is a recorded instrument against the property, which has implications for title, financing and any subsequent transaction.

  3. The state gets your resident list. Under § 59.21.030(3)(b), notice to the director must include a good faith estimate of the timetable for removal of the homes, the reason for closure, and a list of the names and mailing addresses of the current registered park tenants, sent within 10 business days of the notice to tenants.

  4. And the state agency acts on it. The department must mail every tenant an application and information on relocation assistance within 10 business days of receiving the notice.

That last point is worth sitting with. In Washington, giving the notice sets a state relocation assistance process in motion automatically. You are not the only party who acts on your announcement.

What Triggers a Resident Purchase Right Varies Sharply

Two states work differently, and the triggering event is not the same in each.

  1. Washington's prescribed closure notice addresses tenant purchase and then limits it. The form states that the owner may be willing to entertain an offer from an organisation or group of tenants, or a not-for-profit agency designated by them, and that tenants should contact the owner with such an offer. It then states that any offer must be made and accepted prior to closure, that the timeline for closure remains unaffected by an offer, and that acceptance is at the discretion of the owner and is not a first right of refusal.

  2. Maryland works the other way, and operates on a sale rather than a closure. Under Md. Code, Real Property § 8A-1803, when the community owner conditionally accepts an offer that does not qualify for the statutory preservation treatment, the owner must notify homeowners of the offer's terms and give them 60 days from the mailing date of the notice to submit a substantially similar offer through a homeowners organization. The organization must document that at least 75% of its resident members, with one vote per home, voted to purchase, and the owner must make available the same information provided or that would have been provided to other prospective purchasers within 10 days.

Establish which model your state uses, and what event triggers it, before you take the property to market. In one, a closure notice invites an offer without creating a first right of refusal. In the other, conditionally accepting a third-party offer starts a clock during which an organised homeowners group can compete for the asset.

You May Have to Keep Operating

An easy thing to underestimate.

Legal commentary describing California's requirements notes that essential services must continue until residents move out, including utilities, maintenance and common area upkeep, and that cutting services early can lead to penalties and legal claims.

Which means the notice period is an operating period. Roads still need maintaining. Water still needs supplying. Enforcement still needs handling. And you are doing all of it in a community where every resident knows the community is closing and has less reason to invest in it than they did.

Budget for that rather than assuming operations wind down with the announcement. It is one of several ways manufactured housing communities behave differently from other residential property.

Relocation Assistance and Impact Reports

Two further layers, both state-specific.

  1. Relocation assistance. Several states require it, and the structure varies. Washington's prescribed notice directs residents to the Office of Mobile/Manufactured Home Relocation Assistance within the Department of Commerce. Arizona is described in secondary sources as maintaining a mobile home relocation fund administered by its Department of Housing under A.R.S. § 33-1479, with residents applying after receiving a closure or change-of-use notice.

  2. Impact reports. California's Government Code § 65863.7 is described as requiring the community owner to prepare and file a report on the impact of the closure or cessation of use with the local city or county authority, commonly called a Closure Impact Report. That guidance describes approval of the closure or conversion as conditioned upon approval of the report.

The pattern worth noting. In some states, closure is not something you notify. It is something you apply for.

Local Ordinances Frequently Go Further

The state framework may be the floor rather than the ceiling.

Guidance on California's position describes many local governments as having enacted closure or conversion ordinances that parallel state law and fill in the details of required mitigation assistance, whether actual relocation of the home or a fair market value buy-out. It describes Government Code § 65863.7 as establishing a minimum standard that does not prevent local governments from enacting more stringent measures, and notes that where a park is to be subdivided and a map is required, even more stringent relocation requirements may be imposed.

So the local ordinance may be the operative document, and it is not the one you find by reading the state statute.

Check the county and the municipality before you plan around a state notice period.

What This Means for a Redevelopment Plan

Five things follow.

  1. Establish the full timeline before you commit capital. A two-year statutory notice period, plus permitting, plus any impact report approval, plus relocation, is a materially different hold than a twelve-month redevelopment.

  2. Find out what the notice triggers. Resident purchase provisions, agency notification, automatic relocation processes and recording requirements all start when you give notice, and some of them are not reversible.

  3. Budget for operating through it. Essential services continue, and the community is harder to run once residents know.

  4. Check the local ordinance, not just the statute. In several states the municipal requirement is the stricter one.

  5. And take it to counsel before you announce anything. Closure is the one decision in this sector where the announcement is itself a legal act with consequences.

Conclusion

Closing or converting a manufactured housing community can trigger a complex set of statutory and local requirements, for a reason that runs through this whole asset class: the residents own homes they may not be able to move.

Three things worth carrying away.

  1. The notice period is a process, not a countdown. Washington's prescribed form states an effective date two years after the notice is given, and requires the notice to go to a state director, to all tenants, to every subsequent rental agreement, and to the county auditor's records.

  2. What triggers a resident purchase right varies sharply. Washington's closure notice tells tenants they may make an offer and expressly states it is not a first right of refusal and does not affect the timeline. Maryland's sale process gives a homeowners organization 60 days from the mailing of the required notice to submit a substantially similar offer, subject to the statutory voting and process requirements.

  3. And the local ordinance may matter more than the state statute. Guidance on California's framework describes the state provision as a minimum that local governments are free to exceed, and many have.

Frequently Asked Questions

1. How much notice is required to close a mobile home park?
It varies enormously. Washington's statutory closure notice form states an effective date two years after the notice is given. California guidance describes at least 12 months' advance written notice where no local permits are required, and a 60-day plus 60-day structure where permits are needed. Published guidance describes Michigan as requiring one year for communities with 100 or more lots and Ohio as requiring 180 days. Confirm the current position in your state.

2. Does a park closure notice have to be recorded?
In Washington, yes. RCW 59.21.030 requires the closure notice to be recorded in the office of the county auditor for the county where the community is located, in addition to being given to the state director or designee and all tenants, and conspicuously posted at all park entrances. Notice delivery requirements vary by state across other contexts too, as covered in our guide to resident communication in manufactured housing

3. Can residents buy the community when it is closing?
It depends on the state, and the triggering events differ. Washington's prescribed closure notice tells tenants they may make an offer but states expressly that it is not a first right of refusal and does not affect the closure timeline. Maryland's provision operates on a sale rather than a closure: under § 8A-1803, where an owner conditionally accepts a qualifying offer, homeowners have 60 days from the mailing of the notice to submit a substantially similar offer through a homeowners organization, with a 75% member vote and a 10-day information-sharing obligation on the owner.

4. What information does a park owner have to give the state?
In Washington, notice to the director must include a good faith estimate of the timetable for removal of the mobile homes, the reason for closure, and a list of the names and mailing addresses of the current registered park tenants, sent within 10 business days of the notice to tenants. The department must then mail every tenant an application and information on relocation assistance within 10 business days of receipt.

5. Does converting a park to resident ownership count as a change of use?
In Washington it can. RCW 59.21.030's prescribed notice covers conversion to a use other than for mobile or manufactured homes and also conversion to a mobile home park cooperative or a mobile home park subdivision. So a sale to a resident cooperative may fall within the same notice framework as a redevelopment.