Governor Kathy Hochul’s signing of Senate Bill S5881A amended New York Real Property Law §233-a by adding specific protection to owners of manufactured homes, commonly known as mobile homes.
Since the amendment became effective in 2024, every agreement to purchase a manufactured home park (mobile home park) is subject to the homeowners’ right of first refusal (ROFR) to purchase the park themselves. Under prior state law, homeowners in manufactured home parks were only able to exercise this right when the purchaser of manufactured home parks certified their intent to use the land for a purpose other than a mobile home park. As such, the change now provides an opportunity to overview the updated procedure for purchasing and selling manufactured home parks in New York.
Key Changes Under April 2024 Amendments
If a manufactured home park owner takes any action to market or offer the park for sale, or, alternatively, receives a bona fide offer (a good faith, outside offer in which a seller is honestly willing to accept) to purchase the park, the manufactured home park owner must include a notice stating that such acceptance is subject to the right of the homeowners to purchase the home park.
The owner must send the notice via U.S. Certified Mail or personal delivery to:
- The officers of the manufactured homeowners’ association (HOA) within such park, provided the owner has been notified of the establishment of an HOA and the names and addresses of the officers of the HOA;
- All homeowners, if no HOA exists or the owner has not been notified of the establishment of an HOA; and
- The Commissioner of New York State Homes and Community Renewal (HCR).
The statutory requirements of the notice include:
- The price, material terms and conditions of the sale;
- That the homeowners have the right to create an HOA (assuming one does not already exist);
- That purchase financing may be available through HCR; and
- That the HOA, cooperative, homeowners or tenants have 140 days from receipt of notice to exercise their right to purchase the park under the same terms and conditions as the offer, unless otherwise agreed to in writing between the HOA and the seller.
If an HOA exists at the time of the bona fide offer, the HOA must, within 60 days, deliver to the park owner a notice of intent to make an offer to purchase the park. Once a valid notice of intent is delivered, the park owner may not accept a final unconditional offer from a third-party purchaser during the 140-day exercise period. The owner must allow the homeowners’ association the opportunity to match the pending transaction on identical price, terms and conditions.
Where no HOA exists, residents may collectively preserve the purchase opportunity by delivering a notice of intent signed by more than 50 percent of the homeowners in the park within 60 days of receiving the owner’s notice. This provision ensures residents are not deprived of their statutory rights merely because a formal homeowners’ association has not yet been established.
Before the April 2024 amendments, a park owner could not accept a bona fide offer or make a counteroffer without first obtaining written confirmation of whether the purchaser intended to use the park, or the land on which it sits, for a purpose other than manufactured home lot rentals. That requirement has been eliminated. The law now focuses on protecting residents’ opportunities to purchase the park, rather than on the purchaser’s intended use of the property.
Exceptions
These requirements do not apply to a conveyance of an interest in a manufactured home park incidental to the financing of such park. They also do not apply to the purchase of a manufactured home park by a governmental entity under its eminent domain powers. These requirements also do not compel the manufactured home park owner to divide the land and sell it to individual manufactured homeowners.
Broker Checklist: Sale of a Home Park under §233-a
Step 1 – Determine Whether the Property Is Subject to RPL § 233-a
- Confirm that the property is a manufactured home park governed by New York Real Property Law § 233-a.
- Advise the seller that the sale is subject to the homeowners’ statutory ROFR.
Step 2 – Include the Required Notice in Marketing and Purchase Discussions
- Upon receipt of an offer the owner intends to accept or counter, the owner must provide the required statutory notice.
- The notice must state that any agreement is subject to the homeowners’ ROFR and must include the required statutory information.
Step 3 – Coordinate Delivery of Required Notices
Ensure the owner delivers notice to:
- the HOA (if one exists);
- all homeowners if no HOA exists; and
- HCR.
Step 4 – Advise Buyers of the Statutory Waiting Period
Inform prospective buyers that:
- the transaction cannot proceed directly to closing;
- homeowners have a ROFR (right of 1st refusal); and
- purchase agreements should acknowledge compliance with RPL § 233-a.
Step 5 – Monitor the Homeowners’ Response Period
- If an HOA exists, it has 60 days to submit a notice of intent to purchase on the same price, material terms and conditions.
- If a timely notice is submitted, the HOA has up to 140 days from the owner’s notice to deliver a matching executed offer.
Step 6 – Do Not Close Prematurely
If the homeowners timely exercise their ROFR:
- do not schedule closing until the statutory period expires or the homeowners’ rights have been resolved; and
- advise all parties that the owner may not accept a final unconditional offer from a purchaser unless it is subject to the ROFR of the HOA/Owners.
Step 7 – Document Compliance
Maintain copies of:
- all statutory notices;
- proof of delivery;
- correspondence regarding the homeowners’ response; and
- documentation showing compliance before closing. This record can be critical if the transaction is later challenged.
Summer Associate Evan C. Breitbeck contributed to this report.
Harris Beach Murtha’s Real Estate Developers Industry Team regularly advises clients on a wide range of commercial real estate and real estate development issues. Should you have questions, please reach out to attorney F.L. Gorman at (585)- 419-8628 and flgorman@harrisbeachmurtha.com or the Harris Beach Murtha attorney with whom you most frequently work.
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