What does TAX CREDIT FOR MANUFACTURED HOME COMMUNITY SALE TO RESIDENTS OR of Frank Adelmann Manufactured Housing Community Sustainability Act of 2026 do?

This section amends the Internal Revenue Code to establish a tax credit for the sale of manufactured home communities to qualified cooperatives or nonprofit entities. The credit is equal to 75% of the qualified gain received by the taxpayer. To qualify, the sale must be to a qualified manufactured home community cooperative or corporation, the real property must have been owned for two years prior to the sale, and a binding covenant must ensure the property's use as a manufactured home community for at least 50 years (or the maximum permissible term under state law). A qualified cooperative or corporation must be established under state law and have governance structured equitably among members. Members are defined as individuals who are residents of the community and have an occupancy agreement, or a tax-exempt organization. A tax is imposed on the buyer if the covenant is violated, equal to 20% of the net proceeds from the sale. The amendments apply to taxable years beginning after December 31, 2026.

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Frank Adelmann Manufactured Housing Community Sustainability Act of 2026

Q: What does Preamble of Frank Adelmann Manufactured Housing Community Sustainability Act of 2026 do?

This bill proposes to amend the Internal Revenue Code of 1986. It aims to allow a business credit for gains resulting from the sale of real property. The real property must be used as a manufactured home community.

Q: What does SHORT TITLE. of Frank Adelmann Manufactured Housing Community Sustainability Act of 2026 do?

This bill is formally titled the Frank Adelmann Manufactured Housing Community Sustainability Act of 2026.

Q: What does FINDINGS. of Frank Adelmann Manufactured Housing Community Sustainability Act of 2026 do?

This section outlines findings related to manufactured housing and manufactured home communities. Approximately 6.7 million occupied manufactured homes exist in the United States, representing a significant portion of the nation's housing stock. Owners of manufactured homes are disproportionately low-income, with a median annual household income of $35,000. Manufactured home communities provide critical affordable housing but receive limited federal funding. Homeowners in these communities often do not own the land, leaving them vulnerable to rent increases and community closure. Resident-owned cooperatives and nonprofit-owned communities offer a model for preserving affordability, with lower average annual site fee increases. Currently, only a small percentage (2.4%) of manufactured home communities are resident or nonprofit-owned. The section suggests a federal tax benefit to encourage owners to sell properties to residents or nonprofits committed to long-term preservation.

Last updated: 5/21/2026 · Introduced: 5/21/2026

Author: Ilhan Omar (D-MN)

TL;DR (AI)

This bill creates a federal tax credit equal to 75% of the qualified gain for owners who sell manufactured home communities to qualified resident cooperatives or nonprofit entities.
To qualify for the tax credit, the property must have been owned for at least two years, and a legally binding agreement must ensure its continued use as a manufactured home community for a minimum of 50 years.
The bill imposes a 20% tax on the buyer if the agreement ensuring community preservation is violated.

119th Congressin committeeS. 4613(In Committee)Official page

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Includes provisions on preamble, short title., and 2 more.

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