Title
Manufactured Home Communities Preservation Discussion
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Discuss previous work on preservation of manufactured home communities and receive direction on next steps.
Report
Issue:
Whether to discuss previous work on preservation of manufactured home communities and receive direction on next steps.
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, Community Planning & Economic Development, 360.570.3762
Presenter(s):
Christa Lenssen, Senior Housing Program Specialist, Community Planning & Economic Development, 360.570.3762
Background and Analysis:
Applicability of Olympia’s Rental Housing Code
Olympia’s current rental housing code does not cover residents who own their manufactured home but rent the lot within a manufactured home community. This approach aligns with state law, which distinguishes between two types of tenancies: the Residential Landlord-Tenant Act, governing most rental housing-including situations where both the home and lot are rented-and the Manufactured/Mobile Home Landlord-Tenant Act (MHLTA), which applies specifically to residents who own their manufactured home and rent only the lot space within a manufactured home community.
Manufactured housing landscape and displacement impacts
Manufactured homes make up roughly 2-3% of Olympia’s housing stock, yet they play a critical role as a source of naturally affordable housing. Nationally, the Consumer Financial Protection Bureau identifies manufactured housing as the largest source of unsubsidized affordable housing in the United States.
Within Olympia city limits, there are twelve known manufactured home communities, totaling an estimated 750 to 800 units. These communities vary in structure: three consist entirely of park-owned homes rented to residents (about 30 homes total), seven are primarily resident-owned homes (approximately 700 homes), and two include a mix of both ownership types (around 50 homes). Community sizes range widely-from as few as five units to more than 250-and conditions vary across properties. Most homes are affixed to permanent pads, though at least one community consists primarily of travel trailers and recreational vehicles, and some include a mix of housing types.
Residents face a heightened risk of displacement due to rising lot rents or potential redevelopment and sale of communities.
For homeowners, relocation can be especially challenging. In many cases, moving a manufactured home is either prohibitively expensive or not feasible at all. Local estimates place relocation costs between $20,000 and $30,000, while state relocation assistance-available only in certain circumstances, such as park closure-ranges from $11,000 for single-wide homes to $17,000 for double- or multi-section homes.
This gap often leaves residents unable to move their homes, resulting in the loss of both housing and personal investment. Notably, owners of recreational vehicles, travel trailers, and park models (as defined in RCW 59.20.030) are not eligible for state relocation assistance.
City staff have identified two communities in Olympia that may be at risk of redevelopment. Many residents in these communities are very low-income and may require targeted support to secure alternative housing if closures occur.
City efforts and outreach
In April 2024, City Council and staff were contacted by residents of manufactured home communities who own their homes but rent lot space. They sought clarification on whether Olympia’s recently adopted tenant protections applied to their situation and raised concerns about rising lot rents.
In May 2024, staff attended a meeting with residents of a local manufactured home community, along with state legislators, to discuss community-specific challenges and provide policy updates.
Following this outreach, staff initiated broader engagement with manufactured housing residents to better understand their concerns. Two community meetings were held in September 2024 and February 2025, each attended by approximately 25-35 residents. Staff also briefed the Land Use & Environment Committee (LUEC) and the full City Council in 2024 and 2025. Councilmembers expressed support for exploring additional strategies to preserve manufactured home communities and a desire to better understand the challenges facing residents. A full timeline of these efforts is included as an attachment to this staff report.
At the first community meeting, residents identified key concerns, including rising lot rents, the potential sale of communities to corporate owners who may increase costs, risk of displacement due to redevelopment, lack of transparency and communication from property owners, and uncertainty around maintenance responsibilities. Staff used this input to develop potential policy responses.
These policy options were presented to the LUEC in November 2024. At the February 2025 meeting, residents were surveyed to assess their level of support. Several proposed policies aligned with existing Olympia tenant protections, including enhanced notice requirements for rent increases, the option to request relocation assistance in cases of economic displacement, improved transparency in rent increase notices, and provision of information and resources at lease renewal.
While residents generally supported these proposals, many emphasized that their options remain limited. Because manufactured homes are often difficult or impossible to relocate-and affordable alternative housing is scarce-longer notice periods or relocation assistance alone may not be sufficient. Residents expressed strongest support for zoning changes that would prevent redevelopment of existing manufactured home communities, thereby reducing the risk of displacement.
Regional and statewide preservation efforts
In 2023, the Washington State Legislature adopted amendments to the Manufactured In 2023, the Washington State Legislature amended the Manufactured/Mobile Home Landlord-Tenant Act to require notice to residents when a park is listed for sale and to provide an opportunity for residents to compete to purchase the community as a cooperative. Funding and technical assistance were also made available to support these efforts.
That same year, a manufactured home community in Thurston County was listed for sale. Residents worked with Resident Owned Communities Northwest (ROCNW) to pursue cooperative ownership and sought financial support from the Thurston Regional Housing Council (RHC) to close a funding gap. At the time, funding was not available, and the community was ultimately sold to a third party.
In response, the RHC convened a manufactured housing workgroup to identify strategies for better supporting future acquisitions. The workgroup developed an inventory of manufactured home communities in Thurston County and assessed displacement risk factors, including redevelopment potential based on zoning and demographic vulnerability indicators such as income, age, and race. All manufactured home communities in Olympia-except the two currently zoned as Manufactured Home Parks-were identified as being at medium to high risk of redevelopment.
The workgroup also explored financing strategies in consultation with ROCNW, including interest rate buy-downs, low-interest loans, and grants to help bridge funding gaps for resident purchases.
In 2024, the RHC established an “Opportunity Fund” to address emergent housing needs, including the potential sale of manufactured home communities. These funds can support resident cooperatives by contributing to acquisition costs, covering transaction-related expenses, or reducing long-term debt service. This approach responds to a growing trend of communities being sold to investment groups that significantly increase lot rents, often displacing low-income residents. Supporting resident ownership helps preserve affordability over the long term.
In 2025, the Washington State Legislature passed House Bill 1217, which limits annual rent increases for lot space to 5% and prohibits rent increases during the first 12 months of tenancy. The law also establishes a standardized rent increase notice form, caps move-in fees and security deposits at one month’s rent (or two months with a pet), and limits late fees. Prior to this legislation, rent increases were not capped, and local jurisdictions were preempted from regulating rents. HB 1217 is currently being challenged in court, and staff will monitor developments.
Options and next steps
Recent state actions have addressed some aspects of displacement risk; however, state preemption limits the City’s ability to regulate lot rents or require a right of first refusal for residents.
The City could explore additional strategies to preserve manufactured home communities and maintain their role as a source of affordable housing. These include both educational and policy-based approaches.
On the education side, residents have expressed interest in better understanding their rights and available resources. In response, staff hosted a legal training with aid attorneys in February 2025 and distributed a resource guide. Additional efforts could include creating a dedicated webpage, annual mailings, and ongoing outreach.
On the policy side, several Washington cities-including Tumwater, Bellingham, Bothell, and Kenmore-have adopted zoning protections to prevent redevelopment of manufactured home communities into other uses. In Olympia, only two communities currently have this designation, leaving most at greater risk of redevelopment. While zoning protections could reduce displacement risk and improve financing opportunities for resident cooperatives, staff have identified potential challenges, including limited capacity to undertake rezoning, concerns about downzoning, infrastructure limitations, and long-term climate risks. Council has also noted that zoning changes may not provide permanent protection, as future councils could reverse them.
If pursued, zoning protections could be targeted based on specific criteria, such as community size, age, or whether homes are primarily owner-occupied and affixed to permanent foundations. Overlay zoning may also improve access to financing by reducing lender risk.
The City could also consider additional requirements in the event of park closure. While state law requires two years’ notice, other jurisdictions-such as Kent and Seattle-require relocation plans and additional tenant protections.
Another option is the creation of a local preservation fund, similar to the RHC’s Opportunity Fund. This fund could support resident acquisition efforts, provide relocation assistance, or address other emergent needs. It could be structured as a revolving loan fund or grant program and may help fill gaps not covered by state assistance, particularly for residents who are not eligible for relocation funds.
Additionally, the City could explore financing support for infrastructure improvements, such as sewer or septic upgrades. While rent regulation is preempted, City funding could be conditioned through restrictive covenants to ensure long-term affordability, preservation of manufactured housing use, and potential opportunities for resident purchase.
Finally, the City could partner with ROCNW to identify a site for a new, resident-owned manufactured housing community. Such a development could provide entry-level homeownership opportunities and include space for relocated homes in the event of future community closures.
Alignment with City Plans
The City of Olympia retained an outside consultant to conduct an anti-displacement analysis as part of its Comprehensive Plan update. The consultant recommended that the City adopt policies to safeguard and preserve manufactured home communities, identifying them as a critical source of affordable housing.
Olympia’s Comprehensive Plan includes several goals related to manufactured housing community preservation:
• PH10.5: Evaluate the feasibility of programs that would enable low-income residents of manufactured home parks to collectively purchase and improve the land on which their homes are located. This may include financial assistance such as interest rate subsidies, support for loan origination fees, or other acquisition-related costs.
• PH1.6: Support the placement of manufactured homes on individual lots, promote the preservation of existing manufactured home parks, and allow such parks in multifamily and commercial zones. These efforts should be guided by design standards that ensure compatibility with surrounding housing and land uses.
Preservation of manufactured home communities is also a priority in Olympia’s Housing Action Plan. The Plan identifies the following strategy:
• 2.d: Consider adopting a Tenant Opportunity to Purchase (TOPO) ordinance as a tool to preserve manufactured home parks and multifamily housing by giving residents the opportunity to purchase their communities when they are put up for sale.
Climate Analysis:
This action is not expected to significantly impact greenhouse gas emissions. Preserving existing manufactured home communities may reduce emissions over time by avoiding new construction and maintaining housing in transit-accessible locations. Broader City climate strategies could further support emissions reductions.
Equity Analysis:
Households in mobile homes are more than twice as likely to live in poverty (DeLuca and Rosen, 2022), and manufactured housing is the largest source of unsubsidized affordable housing in the United States. Older adults are also more likely to live in manufactured housing; in Thurston County, about 12% of seniors live in these homes compared to 9% of the overall population. In Olympia, nearly 17% of adults age 65 and older live below the federal poverty level-slightly higher than the general adult population.
While local data on the racial demographics of manufactured home residents is limited, policies that increase housing stability and reduce displacement risk are likely to benefit lower-income households and older adults, who are disproportionately represented in these communities.
Staff were not able to obtain demographic data on manufactured home community owners. Property owners may experience impacts from additional regulations or redevelopment limitations but could also benefit from potential capital investments or incentives.
Neighborhood/Community Interests (if known):
At the September 2024 community meeting, manufactured home residents identified rising lot rents as their primary concern, an issue subsequently addressed through the adoption of HB 1217 in 2025. Residents also expressed concern about potential displacement if their communities are sold or redeveloped, as well as frustration with rule enforcement and uncertainty around maintenance responsibilities.
Residents have shown strong interest and engagement with the City by attending meetings and providing input through calls and emails. In a February 2025 survey, residents indicated particular support for zoning protections to reduce the risk of displacement from redevelopment.
Financial Impact:
If the City pursues efforts to support acquisition or preservation of manufactured home communities, these actions would require financial resources.
Options:
1. Discuss previous work on preservation of manufactured home communities and receive direction on next steps.
2. Do not discuss previous work on preservation of manufactured home communities and receive direction on next steps.
3. Take other action.
Attachments:
Manufactured/Mobile Home Community Preservation for local governments
MRSC - Manufactured Housing Regulation and Preservation
Timeline of Manufactured Home Preservation efforts
September 2024 Manufactured Homeowner Community Meeting Summary
Survey of Proposed Manufactured Housing policy options
Key definitions and code references