2005 Vermont Code - § 6242. — Leaseholder\'s right to notification prior to park sale

§ 6242. Leaseholder's right to notification prior to park sale

(a) A mobile home park owner shall give to each leaseholder and to the commissioner of the department of housing and community affairs notice by certified mail of his or her intention to sell the mobile home park. For the purpose of this section, a leaseholder is the holder of a lease for a lot or a leasehold on which a mobile home owned by the leaseholder is sited. The notice shall state the following:

(1) that the owner intends to sell the park;

(2) the price, terms and conditions under which the park owner offers the park for sale;

(3) a list of the affected leaseholders and the number of leaseholds held by each;

(4) the status of compliance with applicable statutes, regulations and permits, to the owner's best knowledge, and the reasons for any noncompliance; and

(5) that for 45 days following the notice the mobile home park owner shall not make a final unconditional acceptance of an offer to purchase the park and that if within the 45 days the park owner receives notice pursuant to subsection (c) of this section that a majority of the leaseholders intend to consider purchase of the park, the owner shall not make a final unconditional acceptance of an offer to purchase the park for an additional 90 days, starting from the 46th day following notice, except one from a group representing a majority of the leaseholders or from a nonprofit corporation approved by a majority of the leaseholders.

(b) The leaseholders shall have 45 days following notice under subsection (a) of this section in which to determine whether they intend to consider purchase of the park through a group representing a majority of the leaseholders or a nonprofit corporation approved by a majority of the leaseholders. A majority of the leaseholders shall be determined by one vote per leasehold and no leaseholder shall have more than three votes or 30 percent of the aggregate park vote, whichever is less. During this 45-day period, the owner shall not accept a final unconditional offer to purchase the park. A park owner shall not restrict representatives of the department from access to the park residents.

(c) If the park owner receives no notice from the leaseholders during the 45-day period or if the leaseholders notify the park owner that they do not intend to consider purchase of the park, the park owner has no further restrictions regarding sale of the park pursuant to this section. If during the 45-day period, the park owner receives notice in writing that a majority of the leaseholders intend to consider purchase of the park then the park owner:

(1) shall not accept a final unconditional offer to purchase from a party other than leaseholders for 90 days following the 45-day period, a total of 135 days following the notice from the leaseholders;

(2) shall negotiate in good faith with the group representing a majority of the leaseholders or a nonprofit corporation approved by a majority of the leaseholders concerning purchase of the park;

(3) shall consider any offer to purchase from a group representing a majority of the leaseholders or from a nonprofit corporation approved by a majority of the leaseholders.

(d) A park owner who sells a mobile home park without complying with this section shall be liable to the residents in the aggregate amount of $10,000.00 or 50 percent of the gain realized by the owner from the sale, whichever is greater. A sale, an offer to sell, or an attempt to sell a mobile home park without complying with this section shall also be subject to the remedies of section 6205 of this title, including actual and punitive damages.

(e) The provisions of this section do not apply when the sale, transfer or conveyance of the mobile home park is:

(1) through a foreclosure sale;

(2) to a member of the owner's family or to a trust for the sole benefit of members of the owner's family;

(3) among the partners who own the mobile home park;

(4) incidental to financing the park;

(5) between joint tenants or tenants in common;

(6) pursuant to eminent domain.

(f) No additional notice pursuant to subsection (a) of this section shall be required if the mobile home park owner completes a sale of the park within one year from the date of the notice.

(g) A majority of the leaseholders shall negotiate in good faith with the park owner for purchase of the park. (Added 1987, No. 252 (Adj. Sess.), § 6, eff. Aug. 1, 1988; amended 1989, No. 229 (Adj. Sess.), § 10; 1993, No. 141 (Adj. Sess.), §§ 6-8, eff. May 6, 1994.)