In this subtitle the following words have the meanings indicated. “Community owner” means the owner of a manufactured housing community. “Homeowner” means an owner of a manufactured home who leases or rents a lot in a manufactured housing community for residential use. “Homeowners organization” means an incorporated or unincorporated organization, including a cooperative housing corporation, that: Represents the interests of the homeowners in a manufactured housing community; Is open to all homeowners residing in the manufactured housing community; Is controlled by the members of the organization; and Comprises homeowners who lease or rent at least 75% of the lots in the manufactured housing community. “Manufactured home” has the meaning stated in § 8B–101 of this article. “Manufactured housing community” means any property leased or held out for lease to two or more owners of manufactured homes for residential use. “Manufactured housing community” includes a park.

The requirements of this subtitle apply separately to each substantially different offer to sell or to purchase a manufactured housing community. This subtitle does not apply to the potential sale of a manufactured housing community if: A mortgagee, grantee, or other secured party has foreclosed on the manufactured housing community and the mortgagee, grantee, or secured party is selling the manufactured housing community: At a foreclosure sale; or After purchasing the manufactured housing community at a foreclosure sale; The community owner is selling the manufactured housing community to: A family member of the community owner; or A trust whose beneficiaries are family members of the community owner; The community owner is a partnership, limited liability company, or similar business entity and the sale is to one or more of the partners or members of the business entity; The conveyance of an interest in the manufactured housing community is incidental to the financing of the manufactured housing community; The sale of the manufactured housing community is between joint tenants or tenants in common; The sale of the manufactured housing community is a result of the exercise of the power of eminent domain; The sale of the manufactured housing community involves a merger, recapitalization, or similar transaction where: At least one community owner prior to the transaction remains a community owner after the transaction; and The community owner files an affidavit, recorded in the land records in the county in which the property is located, affirming that the community owner will allow continued use of the land as a manufactured housing community for at least 6 months after the date the transaction is finalized; or The sale of the manufactured housing community involves: A like–kind exchange; or A sale of more than one home in the community to a single purchaser.

If a community owner receives an offer to purchase the community, acceptance of that offer shall be conditioned on the purchaser filing an affidavit, recorded in the land records in the county in which the property is located, affirming that: The purchaser will allow continued use of the land as a manufactured housing community for 5 years after the date the purchase is finalized; and Rent for a lot on the property will not increase by more than 10% per year for the first 3 years after the date the purchase is finalized. If the purchaser fails to file an affidavit in accordance with subsection (a) of this section, acceptance by the community owner of the offer to purchase the community shall be conditioned on the community owner: Providing notice of the terms of the offer or the contract that the community owner has conditionally accepted to: Each homeowner in the manufactured housing community; The Department of Housing and Community Development; and The appropriate housing agency; and Providing the homeowners with the opportunity to purchase the manufactured housing community in accordance with § 8A–1804 of this subtitle. The notice required under subsection (b) of this section shall: Be posted in a public area of the manufactured housing community; Be sent by registered or certified mail to the homeowners organization; and Include the following information: The price and material terms and conditions of the offer that the community owner has conditionally accepted for the sale of the manufactured housing community with copies of any documents evidencing the price and terms and conditions; A statement indicating that the homeowners, through a homeowners organization, may purchase the manufactured housing community by submitting an offer within 60 days of the mailing date of the notice, containing substantially similar material terms to the offer that the community owner has conditionally accepted; and The list of organizations and county housing agencies required under § 8A–1804(g) of this subtitle. The price and terms and conditions stated in the notice to the homeowners must be universal and applicable to all potential buyers and may not be specific to the homeowners or their assignee. Within 10 days after the date on which the community owner provides notice required under this section, the community owner shall make available to the homeowners organization the same information that the community owner provided or would have provided to other prospective purchasers. The community owner is not liable to any party to a real estate transaction for a violation of this section.

On notice of the intent to sell a manufactured housing community in accordance with § 8A–1803 of this subtitle, a homeowners organization may offer to purchase the manufactured housing community by: Providing documentation to the community owner indicating that at least 75% of the members of the homeowners organization who reside in the manufactured housing community, with one vote per home, have voted to purchase the community; Notifying the community owner of the intent to purchase the manufactured housing community; and Submitting to the community owner a proposed agreement to purchase the manufactured housing community that includes terms substantially similar to the terms included in the sales notice provided under § 8A–1803 of this subtitle. The homeowners organization shall send the notice of intent to purchase the manufactured housing community and the proposed agreement required under subsection (a) of this section to the community owner by registered or certified mail. If the homeowners organization submits a proposed agreement to purchase the manufactured housing community in accordance with subsection (a) of this section within the 60–day period identified in § 8A–1803 of this subtitle, the community owner shall consider the offer in good faith, which shall include a duty not to act to scuttle the proposed agreement, not to arbitrarily or capriciously refuse to proceed with negotiations, and not to engage in misconduct or dishonesty in the negotiations. After the expiration of the 60 days identified in § 8A–1803 of this subtitle, a community owner may not be required to consider additional offers from the homeowners organization. If the manufactured housing community owner and the homeowners organization enter into an agreement for the sale of the manufactured housing community, unless the parties agree to an alternative period of time, the homeowners organization shall have not more than 105 days after the date of the agreement to obtain financing and close on the purchase. If the homeowners organization does not obtain financing for the purchase or the parties fail to close on the purchase within the time period prescribed in subsection (d) of this section, the community owner has complied with the community owner’s obligations under this section. A homeowners organization may assign its rights under this subtitle to a local government, housing authority, nonprofit with expertise relating to housing, or the State or an agency of the State, for the purpose of continuing the use of the property as a manufactured housing community that will provide affordable housing. The Department of Housing and Community Development shall maintain on its website a list of organizations and county housing agencies available to assist homeowners with financing for the purchase of a manufactured housing community.

A community owner who files an affidavit as required under § 8A–1802(b)(7) of this subtitle or a purchaser who files an affidavit as required under § 8A–1803(a) of this subtitle shall, not more than 30 days after the date of the sale: Provide notice of the affidavit to each homeowner in the manufactured housing community by first–class mail; and Post a copy of the affidavit in a public area of the manufactured housing community.

If a community owner willfully fails to comply with the requirements of this subtitle, the community owner shall be liable to the homeowners organization in the amount of $10,000. A purchaser who files an affidavit as required under § 8A–1803(a) of this subtitle is liable to the homeowners organization in the amount of $10,000 if the purchaser: Closes the manufactured housing community within 5 years after the date the purchase is finalized; or Increases the rent for a lot on the property by more than 10% per year in the first 3 years after the date the purchase is finalized.