Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Manufactured Home LEC topic
No spam. Unsubscribe anytime.
Committee debates sublease limits, AMI caps and tax valuation in manufactured-home limited‑equity cooperative bill
Summary
During markup of a manufactured-home and limited-equity cooperative bill, members debated allowing hardship subleasing, whether to cap sublease rent by HUD fair market rent, AMI, or owner costs, and asked staff to request a Tax Department report on how such properties are assessed and to redraft the bill.
The House General & Housing committee resumed markup on a bill addressing manufactured-home communities and limited-equity cooperatives (LECs) on Feb. 11, focusing on how to treat subleasing and property-tax assessments.
Committee members revisited a provision that currently grandfathered existing LECs on subleasing but otherwise prohibited new LECs from subleasing. Member Gail proposed allowing subletting under a documented hardship, with a cap tied to affordability standards rather than full market rates. "You could only charge ... 50% AMI," one member summarized as a starting point for discussion, while others suggested HUD fair market rent (FMR) or tying allowed rent to the owner’s actual costs (lot rent plus mortgage and taxes).
Cameron Wood of the Office of Legislative Council explained statutory background from the Cooperative Housing Ownership Act and noted that limited-equity cooperatives are intended for low- and moderate-income households (defined in the bill as 80% and 100% of area median income, respectively). Wood also reminded members that current law caps sublease payments at 110% of the proprietary lease payment in LECs — a limit that can leave owners who both pay lot rent and mortgage payments unable to fully cover costs when subleasing.
Members debated trade-offs: some prioritized preventing profiteering and protecting renters (keeping sublease recipients low- or moderate-income), while others stressed that hardship subletting should allow an owner to avoid eviction by covering lot rent and mortgage costs. Several members said the committee lacked precise data on how LECs are assessed and suggested a Tax Department inventory and report to inform consistent statewide treatment.
The committee directed Legislative Council to redraft the bill to reconcile competing goals (protecting affordability, preventing profiteering and enabling hardship relief) and discussed asking the Tax Department for a report, with members proposing a target deadline of Nov. 15 to avoid producing a report during the legislative session. Staff indicated a draft 3.1 of the amendment would be posted for committee review.
No final vote was taken; the committee gave staff direction and agreed to continue consideration at a later date.
