Amendment ASA1-AB1036

MCP:skw

2021 - 2022 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 1036

March 8, 2022 - Offered by Representatives Considine and Pope.

AB1036-ASA1,1,3 An Act to amend 710.15 (5r); and to create 710.15 (2r) and 710.15 (6) of the statutes; relating to: the notice requirement for terminating a lease in a mobile or manufactured home community.

Analysis by the Legislative Reference Bureau

90 days' notice to terminate lease

This bill requires the landlord of a mobile or manufactured home community (called an “operator” under current law) to provide to a tenant in the community (called an “occupant” or “resident” under current law) at least 90 days' notice before terminating the tenant's lease for certain reasons.

Under current law, a landlord that wishes to terminate a tenancy must give the tenant a 5-, 14-, or 30-day notice before terminating the tenancy, depending on the length of the lease and whether previous notices have been provided to the tenant. These notice requirements apply to tenants in a mobile or manufactured home community. Also under current law, a lease in a mobile or manufactured home community may not be terminated except for certain enumerated reasons.

Under the bill, a notice terminating a tenancy in a mobile or manufactured home community must provide to the tenant at least 90 days' notice if the tenancy is being terminated because the community owner or operator seeks to permanently retire the community from the rental market or because the community owner or operator is required to stop renting as a result of action taken by local or state building or health authorities. For all other lease terminations, the notice requirements under current law apply.

60 days' notice to increase rent

The bill also prohibits an owner or operator from increasing rent for an occupant or resident of a mobile or manufactured home community unless the occupant or resident is notified in writing of the increase at least 60 days before the rent increase takes effect.

Residents' right to purchase

Finally, under the bill, if the owner of a mobile or manufactured home community offers the community for sale, and a prospective purchaser notifies the owner of an intent to close the community or convert it to another use within one year of purchase, the owner must notify all residents and occupants of the community and provide a 45-day period for a representative of the residents and occupants to match the offer and enter into an agreement to purchase the community. The bill requires the representative to provide to the owner 10 percent of the prospective purchaser's offer price as earnest money. Under the bill, if the representative successfully purchases the community, the representative must ensure that the property continues to operate as a mobile or manufactured home community for at least 10 years from the date of the sale.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB1036-ASA1,1 Section 1. 710.15 (2r) of the statutes is created to read:

AB1036-ASA1,2,5 710.15 (2r) Notice required for rent increase. A community owner or operator may not increase the amount of rent due by any occupant or resident unless the occupant or resident is notified, in writing, of the rent increase at least 60 days before the effective date of the rent increase.

AB1036-ASA1,2 Section 2. 710.15 (5r) of the statutes is amended to read:

AB1036-ASA1,3,2 710.15 (5r) Notice requirements apply. The notice requirements of s. 704.17 (1p) (a), (2) (a) and (3) apply to a termination of tenancy under sub. (5m) (a) and the notice requirements of s. 704.17 (1p) (b), (2) (b) and (3) apply to a termination of tenancy under sub. (5m) (b) to (k), except that, for a termination of tenancy under sub. (5m) (f) or (g), a notice to remedy a default or a notice to vacate shall provide at least 90 days' notice.

AB1036-ASA1,3 Section 3. 710.15 (6) of the statutes is created to read:

AB1036-ASA1,4,15 710.15 (6) Resident right to purchase. A prospective purchaser of a community shall notify the community owner, in writing and before executing any agreement to purchase the community, if the prospective purchaser intends to close the community or convert it to another use within one year of the execution of the agreement to purchase. Upon receiving such a notice, the community owner shall send a written notice by 1st class mail to all adult residents and occupants of the community that states the prospective purchaser's intent to close the community or convert it to another use and informs the residents and occupants of the provisions of this subsection. During the 45-day period after the community owner provides such notice, the owner may not enter into a purchase agreement for the sale of the community other than with a representative acting on behalf of residents and occupants. The community owner shall promptly provide information on the cash price and the terms and conditions of the prospective purchaser's offer to residents and occupants upon request. During the 45-day period, a representative acting on behalf of residents and occupants has the right to make an offer to meet the cash price and agree to material terms and conditions set forth in the prospective purchaser's offer and to execute an agreement to purchase the community for the purpose of continuing to operate the property as a community for at least 10 years from the date of sale. The representative shall provide to the community owner 10 percent of the prospective purchaser's offer price as earnest money. The earnest money shall be refundable after 6 months, except that, if the prospective purchaser withdraws the offer to purchase during the 45-day period, the representative is unable to complete the purchase, and the community is sold to another purchaser within 6 months for less than the original prospective purchaser's offer, the community owner may be compensated from the earnest money for the difference between the original prospective purchaser's offer and the purchase price. The community owner shall negotiate with the representative in good faith for a purchase agreement that meets the cash price and the same material terms and conditions set forth in the prospective purchaser's offer, except that the owner is not obligated to provide owner financing. Any purchase agreement entered into with the representative shall allow the representative a commercially reasonable due diligence period and access by the representative to all information reasonably necessary to make an informed decision regarding the purchase. The community owner may require the representative to enter into a confidentiality agreement regarding the information. If the representative purchases the community, the representative shall ensure that the property continues to operate as a community for at least 10 years from the date of the sale.

AB1036-ASA1,4,16 (End)