S. 1194: Manufactured Housing Tenant’s Bill of Rights Act of 2025

This bill, known as the Manufactured Housing Tenant’s Bill of Rights Act of 2025, aims to improve protections for tenants in manufactured home communities. It stipulates that federally backed loans for the construction, rehabilitation, or purchase of these communities can only be granted if certain consumer protections are included in the lease agreements between homeowners and tenants. Here are the key features:

Loan Eligibility Requirements

Federal loan programs can only be utilized if the borrower certifies that they will include specific consumer protections in their lease agreements for any manufactured home community they own. The borrower must also provide documentation to prove compliance with these requirements.

Minimum Consumer Protections

The bill sets out minimum protections that must be included in lease agreements, which include:

• 1-Year Lease Terms: Leases must be at least one year long and renewable unless there is a good reason not to renew.
• Notice of Charges: Tenants must receive written notice of any new charges or rent increases at least 60 days in advance, with additional notice required for larger increases.
• Grace Period: A 5-day grace period for rent payments is required.
• Right to Cure: Tenants can fix missed rent payments within 15 days of the due date.
• Tenants Selling Homes: Tenants who own their homes have the right to sell them without moving them from the lot.
• Posting Sale Signs: Tenants can put "For Sale" signs in their yards.
• Closure Notice: Tenants must receive 60-day notice if the community is being sold or closed.
• Right Against Termination: A tenant cannot be evicted without a valid reason, and they must be notified in writing of any eviction and the reasons for it.

Incentives for Enhanced Protections

The bill encourages enhanced lease protections by allowing for better pricing incentives for loans. If operators implement protections that go beyond the minimum standards, they may receive better terms on their loans.

Transparency and Public Access

The Secretary of Housing and Urban Development and the Director of the Federal Housing Finance Agency must provide a publicly available list of properties that comply with these consumer protections.

Establishment of a Commission

A commission will be created to propose further consumer protection standards for manufactured housing loans. This commission will consist of various stakeholders, including representatives from housing agencies and tenants themselves, and will issue a report with recommendations within a year of enactment.

Funding

The implementation of this bill will not involve additional funding; existing resources from the relevant housing agencies will be used to cover any costs associated with its execution.

Penalties for Violations

If a borrower violates the consumer protections set forth, they risk being prohibited from obtaining federally backed financing for at least two years. Moreover, penalties will be enforced for noncompliance, including requiring compensatory payments to affected tenants.

Standard Lease Development

The Director will be tasked with developing a standard lease agreement to help ensure that homes in manufactured home communities can secure loans backed by housing agencies.

Relevant Companies

• BAC - As a major lender, Bank of America may see operational impacts with regard to compliance costs tied to new lending requirements for manufactured housing.
• WFC - Similar to Bank of America, Wells Fargo could face changes in its mortgage lending practices and potential legal ramifications due to the new requirement for tenant protections.