CHAPTER 330
FORMERLY
HOUSE BILL NO. 106
AS AMENDED BY
HOUSE AMENDMENT NO. 1
AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO MANUFACTURED HOMES AND MANUFACTURED HOME COMMUNITIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 7026(e)(2), Title 25 of the Delaware Code by making insertions as shown by underlining and deletions as shown by strikethrough as follows:
§ 7026. Right of first offer; notice required before sale of manufactured home community.
(e) (2) An alternative offer of price for the sale, transfer, or conveyance of the community from the home owner association remains valid for 12 6 months, unless withdrawn by the home owner association in writing and sent to the community owner by overnight service with signature receipt. If the community is still for sale at the expiration of the initial six month alternative offer period, the home owners association shall have the right to refresh their alternative offer within seven days of its expiration upon written notice to the community owner. The refreshed offer will be valid for six months. The home owners association shall have the right to refresh their offer every six months until the property is sold or eighteen months has elapsed from the time notice was provided pursuant to § 7026(a) of this section, whichever comes first. The alternative offer and any refreshed alternative offer may be amended at any time upon written notice to the community owner. In the event a community owner decides they no longer want to sell a community after having provided the home owners association with the notice of first offer, any outstanding alternative offer shall be void. The community owner shall promptly notify the home owners association of their decision to remove the community from the market.
a. A notice to withdraw an alternative offer must be approved by the members of the home owners association. The approval percentage must be stated in the notice to the community owner.
b. The community owner may not sell the community to a third party at or less than the price offered in the alternative offer from the home owner association during the 12-month period of the alternative offer, unless: the offer is withdrawn as described in paragraph (e)(2)a. of this section.
1. The offer is withdrawn as described in paragraph (e)(2)a. of this section, or
2. The home owner association is given 30 calendar days to match the lower price and all of the material terms and conditions of the lower offer.
i. The notice of the right to match the lower third party offer shall be sent to the home owner association by overnight service with signature receipt. The notice must state the price and any special conditions material to the transaction for the sale, transfer, or conveyance of the community.
ii. Upon written demand from the home owner association, the community owner must provide the home owner association with tangible evidence of the lower offer received within 3 business days of receipt of the written request from the home owner association by overnight service with signature receipt.
iii. If the home owner association matches the offer within 30 calendar days of receipt of the notice, the community owner is obligated to move to the next step of the negotiation with the home owner association pursuant to subsection (g) of this section.
c. The community owner may accept an offer from a third party higher than the alternative price, if any, offered by the home owner association without further obligation to the home owner association, regardless of the 12-month period of the alternative offer, unless there are significant and/or material changes in terms and conditions. However, the home owner association must be given 7 business days to match the higher offer under the following circumstances:
1. If the higher offer is less than $40 million and the home owner association's alternate price is within 6% of the offer; or
2. If the higher offer is $40 million or greater and the home owner association's alternate price is within 4.5% of the offer.
d. The notice of the right to match the higher offer pursuant to paragraph (e)(2)c.1. or (e)(2)c.2. of this section above must be sent to the home owner association by overnight service with signature receipt. The notice must state the price and any special conditions material to the transaction for the sale, transfer, or conveyance of the community. Upon written demand from the home owner association, the community owner must provide the home owner association with tangible evidence of the higher offer received within 3 business days of receipt of the written request from the home owner association by overnight service with signature receipt.
e. If the home owner association matches the offer within 7 business days of receipt pursuant to paragraph (e)(2)c.1. or (e)(2)c.2. of this section above, the community owner is obligated to move to the next step of the negotiation with the home owner association pursuant to subsection (g) of this section below. The community owner shall not accept or entertain a higher offer from a third party after the home owners association matches the offer.
f. If the community owner accepts an offer from a third party that is greater than the alternative price offered by the home owners association, such that the provisions of either (e)(2)c.1 or (e)(2)c.2 are not triggered, the community owner shall certify this fact in writing to both the home owners association and the Consumer Protection Unit within seven business days of acceptance of the third party offer. Such written certification shall also indicate whether the accepted third party offer contained any significant and/or material changes in terms or conditions.
Approved July 21, 2014