Cook Bill’s Right Of First Refusal Lets Landlords Refuse Anyway

The text as introduced · 848 words

89R15013 SCR-D

By: Cook
S.B. No. 2762

A BILL TO BE ENTITLED

AN ACT

relating to the sale of a manufactured home community.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 94, Property Code, is amended by adding

Subchapter E-1 to read as follows:

SUBCHAPTER E-1. SALE OF MANUFACTURED HOME COMMUNITY

Sec. 94.221. DEFINITIONS. In this subchapter:

(1) "Refusal period" means the period of time

described by Section 94.224(2).

(2) "Tenants' association" means an association formed

under Section 94.225.

Sec. 94.222. RIGHT OF FIRST REFUSAL REQUIRED. (a) A

landlord may not enter into a contract for the sale of a

manufactured home community without providing the tenants of the

community a right of first refusal under this subchapter.

(b) This subchapter does not apply to:

(1) a gift or sale of a manufactured home community to

a family member of the landlord;

(2) a transfer of a manufactured home community to a

trust established for the benefit of members of the landlord's

family; or

(3) a sale resulting from a condemnation proceeding.

Sec. 94.223. NOTICE TO RESIDENTS; FORM. (a) Not later than

the 14th day after a landlord receives an offer for the purchase of

a manufactured home community that the landlord conditionally

accepts or plans to accept, the landlord shall provide notice by

certified mail to each tenant, or to the owner of the manufactured

home if the owner is not the tenant, that the landlord has received

an offer for the purchase of the manufactured home community.

(b) Not later than the 90th day after giving notice under

Subsection (a), the landlord shall post in a common area in the

manufactured home community a form that includes:

(1) information relating to the tenants' right of

first refusal under this subchapter;

(2) the purchase price of the manufactured home

community in the offer described by Subsection (a);

(3) information regarding financing options for

purchasing the manufactured home community;

(4) information regarding the ability of a tenants'

association to assign the tenants' right to purchase a manufactured

home community under Section 94.225(b); and

(5) a space for a tenant to indicate whether the tenant

intends to exercise the right of first refusal or declines to

exercise the right.

Sec. 94.224. EXPIRATION OF RIGHT OF FIRST REFUSAL. A right

of first refusal provided under this subchapter expires:

(1) on the 90th day after the date notice is given

under Section 94.223 if 50 percent or more of the tenants of the

manufactured home community have indicated on the form described by

Section 94.223(b) that they decline to exercise the right; or

(2) on the 121st day after notice is given under

Section 94.223 if a purchase offer is not made to the landlord under

Section 94.226 before that day.

Sec. 94.225. TENANTS' ASSOCIATION; ASSIGNMENT. (a) A

group of tenants may form an association to exercise a right of

first refusal under this subchapter if more than 50 percent of the

tenants of the manufactured home community indicate on the form

described by Section 94.223(b) that they wish to exercise a right of

first refusal under this subchapter.

(b) An association formed under Subsection (a) may assign

its right to purchase a manufactured home community to:

(1) a municipality;

(2) a county;

(3) a state governmental entity;

(4) a housing authority;

(5) a nonprofit organization; or

(6) a tribal governmental entity.

Sec. 94.226. OFFER FROM TENANTS' ASSOCIATION. (a) Not

later than the 120th day after a landlord gives notice under Section

94.223, a tenants' association or a tenants' association's assignee

may deliver to the landlord a written offer to purchase the

manufactured home community on the same terms as the offer

described by Section 94.223(a).

(b) Not later than the seventh day after receiving the offer

described by Subsection (a), a landlord shall provide a written

response:

(1) accepting the offer; or

(2) rejecting the offer and providing reasons for the

rejection.

(c) A landlord shall negotiate in good faith with a tenants'

association or a tenants' association's assignee for the purchase

of the manufactured home community.

Sec. 94.227. FINANCING. Except as provided by Section

94.228, a tenants' association or a tenants' association's assignee

must obtain any financing necessary for the purchase of the

manufactured home community not later than the 90th day after

making an offer under Section 94.226.

Sec. 94.228. EXTENSION OF REFUSAL PERIOD. The refusal

period may be extended:

(1) on written agreement between a tenants'

association or a tenants' association's assignee and the landlord;

(2) for a reasonable delay in obtaining financing

under Section 94.227;

(3) during a period when a potential assignee

considers an assignment from the tenants' association; or

(4) if a tenants' association files a complaint with

the Texas Department of Housing and Community Affairs that the

landlord has acted in bad faith.

SECTION 2. The changes in law made by this Act apply only to

a sale of a manufactured home community under an executory contract

entered into on or after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.