Bulletin: ID2023002

Dear Associates:

Tenants living within Manufactured Home Communities (MHC), usually own or finance the purchase of their home and rent the site upon which the home is located (though in some cases tenants may also rent the homes). This arrangement is generally more affordable on an ongoing basis than renting an apartment or owning a home and land together. Accordingly, MHCs are often viewed as an effective way to provide affordable housing without the need for subsidies. This hybrid rental/ownership structure can create a potential risk for tenants if they need to move or fall behind on their rent. Once a homeowner has put their home on a site in an MHC, it can be difficult and expensive to move. In response to these unique circumstances, many states have adopted laws and regulations to specifically protect MHC tenants.

Idaho’s Manufactured Home Residency Act is one such act and can be found in Idaho Code Sections 55-2001 through 55-2019.

Per 55-2013A the residents in an MHC have the right to organize a resident or homeowner’s association. A community resident association formed for the purpose of purchasing a community may give written notification to the landlord of the association's interest in purchasing the community. The owner must then give the residents notice should the owner decide to list the property for sale. The statute sets out the specific information to be included in the request and the notice. For title insurance purposes we need to confirm that the statutory process was followed.

An exception for the community resident association's right to purchase the community should appear in a title report or commitment that concerns the sale of a manufactured home park. Please see the sample exception below. The exception may be cleared by obtaining an affidavit from the owner confirming compliance with the statute.

Exception:

Rights of a community resident association (if any) of the manufactured dwelling park known as __(name of community)____, under the Idaho Manufactured Home Residency Act (Title 55 Chapter 20).

Requirement:

The Company will require the execution of an affidavit confirming compliance with the Idaho Manufactured Home Residency Act (Title 55 Chapter 20). An appropriate form of affidavit is available upon request.

If the owner is not able to certify that they followed the statute, meaning that notice was requested but not given, please contact a Stewart Title Guaranty Company underwriter.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.