Frank Adelmann Manufactured Housing Community Sustainability Act of 2026

Key Points

• The bill creates a new business tax credit equal to 75% of the profit a mobile home park owner makes when selling their land to residents or a nonprofit. This is designed to strongly encourage park owners to sell to the people already living there rather than to outside developers.
• To qualify for the tax credit, the new owners must sign a binding agreement to keep the property as a manufactured home community for at least 50 years, locking in long-term affordable housing.
• More than 22 million Americans live in manufactured homes, and many own their house but not the land underneath it. This makes them vulnerable to sudden rent increases, park closures, and displacement.
• If the new owners break the 50-year commitment and sell the property for another use, they face a penalty tax of 20% of the net sale proceeds. This recapture provision is meant to discourage anyone from taking the tax credit and then flipping the land.
• The tax credit would take effect for sales made in taxable years beginning after December 31, 2026. It would be part of the general business credit, meaning sellers could use it to offset their tax liability.