Finkenauer Introduces Legislation to Protect Mobile and Manufactured Home Residents

Press Release

Responding to ongoing abuses by mobile- and manufactured-home community landlords in Iowa and across the country, Congresswoman Abby Finkenauer (IA-01) on Friday introduced the Helping Owners Meet Essential Standards (HOMES) Act of 2020.

The HOMES Act requires mobile and manufactured home park owners to provide basic tenant protections in order to receive federally-backed financing, effectively ensuring loans supported by the Department of Housing and Urban Development, Fannie Mae, and Freddie Mac are contingent on fair leasing, rent and eviction practices.

"We've seen over and over how these out-of-state companies buy up mobile home parks, jack up the rent, impose surprise fees and intimidate Iowans -- many of whom live on a fixed income" Congresswoman Abby Finkenauer said. "The HOMES Act says if your business model threatens and preys on vulnerable Iowans, you won't be eligible for federally backed loans."

"This is personal," Finkenauer said. "We've got to protect our friends and neighbors from predatory investors who treat their residents' hard-earned homes like pieces on a Monopoly board."

Predatory corporations and private equity firms have increasingly purchased manufactured and mobile home communities in recent years, implementing a business model that relies on hiking rents and fees and forcing tenants into contracts that leave them vulnerable to eviction. Right now, many of these corporations can take advantage of government-backed lending, allowing them to expand their predatory operations to even more communities.

The HOMES Act would restrict the federally backed lending available to these corporations unless they write basic protections into tenant leases. Those protections include:

One-year renewable lease terms

Advance written notice and justification of rent increases

Advance written notice of the planned sale or closure of a community

Protection against arbitrary evictions

Rights for residents selling the manufactured or mobile homes they own without incurring the significant expense of moving those homes out of their communities

The HOMES Act would also form a commission charged with developing ways to reward borrowers that adopt additional resident protections through pricing discounts on federally backed loans.

Finkenauer is joined in introducing the HOMES Act by Congresswoman Cindy Axne (IA-03) and Congressman Dave Loebsack (IA-02).

"The story here in Iowa has become too well known: an outside investor buys up a mobile home park, and soon after Iowans in these communities get runaway rent increases coupled with poor or completely absent communication. It's unacceptable -- especially in uncertain economic times -- and predatory practices like these should not be financed with federal support," said Axne. "I'm proud to join my friends in the Iowa delegation today to introduce this bill to better protect Iowans by providing commonsense, basic tenants' rights for those living in federally backed communities. With the HOMES Act, anyone using taxpayer backing to buy a rental property needs to meet basic standards for the residents."

"Mobile homes provide a pathway to affordable home ownership for millions of Americans due to their lower prices, making them attractive purchases for rural families and folks living on a fixed income. Recently, it has become all too common for mobile home communities to be purchased by a large company who comes in and sharply raises the rent, often leaving the tenant having to choose between putting food on the table and making the rent payment. The seniors, teachers, veterans, and other residents who call these communities home have long-fought for basic rights afforded to every other renter and homeowner," said Loebsack. "I am pleased to work with Reps. Finkenauer and Axne on the HOMES Act, as this important legislation will give mobile home residents the protections they deserve."

The legislation is endorsed by: MHAction, National Consumer Law Center (on behalf of its low-income clients), National Housing Law Project, and Prosperity Now.

Support for the HOMES Act:

"Putting food on the table, putting gas in the car, and keeping the lights on have been challenges for many working families during COVID-19. This is especially true for those living in manufactured housing communities, whose community owners have very few regulations. Yet, Congresswoman Finkenauer never fails to place the consumer protection of Iowans at the forefront. Again, Finkenauer produces fair and thoughtful legislation that ensures the protection of mobile home residents," said Iowa State Representative Lindsay James.

"This legislation is an important first step to protect Iowans living in manufactured home communities who are being preyed upon by out-of-state companies. I'm glad to see Rep. Finkenauer leading this Iowa effort alongside Reps. Loebsack and Axne to strengthen protections for these Iowa homeowners," said Iowa State Senator Zach Wahls.

"This bill is a step in the right direction to make sure manufactured home community owners that access Fannie and Freddie-backed loans meet basic standards," said Candance Evans, a manufactured homeowner from Golfview Mobile Home Estates in North Liberty, Iowa and a community leader with MHAction. "As a resident who lives in a community that was purchased via a Fannie-Mae backed loan, we will keep fighting for the full protections we need to make sure that we can afford our homes and our communities are not destroyed."

"Manufactured home communities are the nation's largest source of unsubsidized affordable housing, yet residents--who own their homes but rent the land on which their homes sit--are vulnerable to confiscatory rent increases, eviction without cause, and even closure of the community," said Carolyn Carter of the National Consumer Law Center. "On behalf of our low-income clients, we commend Rep. Finkenauer for introducing this important bill."

"Manufactured housing is the largest source of unsubsidized affordable housing in the U.S., and approximately one third of these 18 million manufactured homes are in communities commonly known as mobile home parks. With the introduction of the HOMES Act, Representative Finkenauer is laying a framework to protect residents in these communities from the instabilities of owning the manufactured home but renting the land beneath it, renting in these parks, and other issues. This bill is an important step to protect owners and renters in manufactured communities and stabilize this necessary source of affordable housing," said Shamus Roller, Executive Director of National Housing Law Project.

"Prosperity Now supports the Helping Owners Meet Essential Standards Act of 2020, and thanks Rep. Finkenauer for her work on this. Manufactured housing communities are a key tool for this nation to address housing affordability but are only effective if homeowner rights are ensured," said Doug Ryan of Prosperity Now. "Sadly, there have been too many recent accounts of community managers and owners abusing their leverage of homeowners who rent their land, including through excessive rent increases and unfair rule enforcement. This bill will ensure that federally backed loans for manufactured housing communities require basic protections, which is a clear step in the right direction."

Finkenauer's Ongoing Advocacy on Behalf of Mobile and Manufactured Home Tenants:

The HOMES Act continues Finkenauer's advocacy on behalf of mobile and manufactured home residents who have been taken advantage of by out-of-state owners.

In May, Finkenauer introduced the Tenant Protection Notification Act of 2020 to protect renters, including mobile and manufactured home park residents, from illegal evictions during the COVID-19 pandemic.

In January, Finkenauer met with residents at Table Mound Mobile Home Park in Dubuque to hear how they are being treated by the park owner.

Earlier this year, Finkenauer called on the Federal Trade Commission to investigate mobile and manufactured home park owners for unfair business practices, and Finkenauer renewed the call as the COVID-19 pandemic hit.

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