Download this document in MS Word format


AutoFill Template

H.777

Introduced by   Representatives Head of S. Burlington, Dostis of Waterbury, Errecart of Shelburne, Keenan of St. Albans City, Klein of East Montpelier, Leriche of Hardwick and Minter of Waterbury

Referred to Committee on

Date:

Subject:  Housing; commerce and trade; mobile home parks; resident ownership; housing cooperatives and condominiums

Statement of purpose:  This bill proposes to make changes in Titles 10, 11, and 27 to facilitate resident ownership of mobile home parks through cooperatives and condominiums.

AN ACT RELATING TO RESIDENT OWNERSHIP OF MOBILE HOME PARKS USING COOPERATIVE AND CONDOMINIUM STRUCTURES

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  10 V.S.A. § 6242(b) and (c) are amended to read:

(b)  The leaseholders shall have 45 days following notice under subsection (a) of this section in which to determine whether they intend to consider purchase of the park through a group representing a majority of the leaseholders or a nonprofit corporation approved by a majority of the leaseholders or request a conversion of the mobile home park to a condominium.  A majority of the leaseholders shall be determined by one vote per leasehold and no leaseholder shall have more than three votes or 30 percent of the aggregate park vote, whichever is less.  During this 45-day period, the owner shall not accept a final unconditional offer to purchase the park.  A park owner shall not restrict representatives of the department from access to the park residents.

(c)  If the park owner receives no notice from the leaseholders during the 45-day period or if the leaseholders notify the park owner that they do not intend to consider purchase of the park or a conversion of the mobile home park to a condominium, the park owner has no further restrictions regarding sale of the park pursuant to this section.  If during the 45-day period, the park owner receives notice in writing that a majority of the leaseholders intend to consider purchase of the park or a conversion of the mobile home park to a condominium, then the park owner shall do the following, as appropriate:

(1)  shall not Not accept a final unconditional offer to purchase from a party other than leaseholders for 90 days following the 45-day period, a total of 135 days following the notice from the leaseholders;.

(2)  shall negotiate Negotiate in good faith with the group representing a majority of the leaseholders or a nonprofit corporation approved by a majority of the leaseholders concerning purchase of the park;.

(3)  shall consider Consider any offer to purchase from a group representing a majority of the leaseholders or from a nonprofit corporation approved by a majority of the leaseholders.

(4)  Proceed pursuant to the provisions of subchapter 3 of chapter 15 of Title 27 to convert the mobile home park to a condominium.

Sec. 2.  11 V.S.A. § 1589(a) is amended to read:

(a)  Within two years after issuance of the certificate of incorporation of a cooperative housing corporation, the cooperative housing corporation shall secure memberships or subscription agreements representing no less than 80 percent of the units in the cooperative housing corporation.  In the case of a conversion, other than a conversion of a mobile home park, subscription agreements representing no less than 50 percent of the units in the proposed cooperative housing corporation shall be secured prior to issuance of the certificate of incorporation, provided that at the expiration of the two-year period after issuance of the certificate of incorporation or at the expiration of the notice periods provided to tenants at 27 V.S.A. § 1333, whichever comes later, no fewer than 80 percent of the units in the cooperative housing corporation shall be occupied by members, occupied by sublessees permitted under subdivision 1599(1) of this title, or subject to subscription agreements.  In the case of a conversion of a mobile home park, subscription agreements representing no fewer than 25 percent of the units in a proposed cooperative housing corporation shall be secured prior to issuance of the certificate of incorporation, provided that at the expiration of the two-year period after issuance of the certificate of incorporation or at the expiration of the notice periods provided to tenants pursuant to 27 V.S.A. § 1333, whichever comes later, no fewer than 80 percent of the units in the cooperative housing corporation shall be occupied by members, occupied by sublessees permitted under subdivision 1599(1) of this title, or subject to subscription agreements.  Extensions of the time limits imposed by this section may be granted by the commissioner of housing and community affairs for cooperative housing corporations containing more than 50 units or for cooperative housing corporations formed in connection with the conversion of a mobile home park.

Sec. 3.  27 V.S.A. § 1353(a) is amended to read:

(a)  A declarant shall give notice of intent to convert a mobile home park at least six months prior to giving formal notice of conversion.  In the case of request to convert the mobile home park to a condominium pursuant to 10 V.S.A. § 6242(b), this notice shall be provided 30 days prior to giving formal notice of conversion.

Sec. 4.  27 V.S.A. § 1354(a), (d), and (e) are amended to read:

(a)  The declarant shall provide leaseholders an election period of at least six months from the date that notice of intent to convert a mobile home park is given, to allow leaseholders to consider their options to either purchase their site or to vote against conversion.  However in the case of a requested conversion of the mobile home park to a condominium pursuant to 10 V.S.A. § 6242(b), the declarant shall provide an election period of two months from the date that the notice of intent to convert is given.

(d)  If leaseholders representing at least 70 percent of the leaseholds elect to pursue a conversion, the declarant may proceed toward conversion by following the requirements under sections 1355-1362 of this subchapter. However in the case of a requested conversion of the mobile home park to a condominium pursuant to 10 V.S.A. § 6242(b), a majority of the leaseholders must elect to pursue this conversion.

(e)  If leaseholders representing less than 70 percent of the leaseholds elect to pursue a conversion, a conversion shall not take place without providing additional notice pursuant to section 1353 of this title.  However, in the case of a requested conversion of the mobile home park to a condominium pursuant to 10 V.S.A. § 6242(b), a majority of the leaseholders must elect to pursue this conversion.

Sec. 5.  27 V.S.A. § 1356(a) is amended to read:

(a)  Each leaseholder shall have a conversion period of six months from the date of notice of conversion to elect to become either a purchasing or a nonpurchasing leaseholder unless the leaseholders have requested a conversion of the mobile home park to a condominium pursuant to 10 V.S.A. § 6242(b) in which case each leaseholder shall have a two-month period from the date of notice of conversion to elect to become either a purchasing or nonpurchasing leaseholder.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us