Committee advances bill allowing opt‑in real‑property titling for some manufactured homes to expand mortgage access
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Summary
SB 996 would permit certain manufactured‑home owners on nonprofit, resident‑owned or public land to opt to title their homes as real property, with sponsors saying the change would widen mortgage access and lower financing costs for low‑income owners.
Senator Padilla presented SB 996 to allow an opt‑in titling process for certain manufactured homes so they may be treated as real property for financing and title purposes. The sponsor and witnesses told the committee that many manufactured homeowners pay higher interest rates because their homes are titled as personal property and that aligning title with the physical reality of immobile homes would improve lending options.
Ryan Sears of Neighborhood Partnership Housing Services said titling as real property creates a secure chain of title familiar to lenders and can allow borrowers access to traditional mortgages with lower interest rates. Leo Goldberg of ROC USA described the resident‑ownership model and said real‑property titling can support conversions to resident‑owned communities and broaden access to competitive financing. Supporters pointed to other states with similar approaches and urged the committee to move the bill forward.
Park owner groups and industry representatives flagged legal and practical concerns, particularly around how a real property interest would interact with existing park owner rights (eviction, right of prior approval on resale) and park financing in the event of foreclosure. The author and sponsors said the bill as amended narrows scope (excluding privately held rental parks) and that they will continue to work with park owners and title professionals to resolve technical issues.
The committee voted to pass the bill as amended to Revenue and Taxation; the recorded roll call was 10‑0.
