Resident Ownership of Mobile Home Parks in Tennessee: A Guide

Are you a Tennessee mobile home park resident wondering if your community could become resident-owned? Converting a mobile home park to resident ownership means that tenants—rather than outside investors or landlords—become the owners of the park land and manage their homes together. Understanding the process, your rights, official forms, and where to seek help can empower you and your neighbors to take the next step.

What is Resident Ownership of a Mobile Home Park?

Resident ownership occurs when the people living in a mobile home park collectively buy the land and run the park as a cooperative or homeowners association. In Tennessee, this is sometimes called a "resident purchase opportunity." Several benefits include stable rents, more say in park rules, and protection from sudden evictions.

• Residents band together to form a legal entity—commonly a cooperative or nonprofit corporation.
• The group then seeks to buy the park when the owner decides to sell, or may approach the owner directly.
• Once the purchase is complete, residents own the land collectively. Management is handled by elected residents, following bylaws.

Legal Protections and Tennessee Law

While Tennessee does not have a "right of first refusal" law granting residents priority when a park is sold, the State of Tennessee recognizes manufactured housing communities under its landlord-tenant statutes. The principal legislation is the Tennessee Uniform Residential Landlord and Tenant Act^[1], which covers basic rental rights and obligations for both park owners and residents in most larger counties.

Understanding the Conversion Process

While the law does not guarantee residents the right to buy, residents may organize and negotiate:

• Form a residents association or cooperative—this legal entity is necessary to pool resources and negotiate with the park owner.
• Negotiate with the current owner—express intent to buy and begin discussions if the owner is open to selling.
• Apply for financing—residents often use private lenders, nonprofit organizations, or state housing assistance for funding.
• Structure ownership—commonly through a cooperative, where each resident has a share and a vote.

The process can be complex and may require legal counsel. However, by acting together, residents stand a better chance of successfully converting their park.

Important Official Forms and How to Use Them

While Tennessee does not have a single conversion application form, several official documents may be required throughout the process:

• Articles of Incorporation (For Nonprofit or Cooperative)
  When to use: If creating a resident cooperative, you'll file Articles of Incorporation with the Tennessee Secretary of State.
  Articles of Incorporation – Nonprofit Corporation
  Example: Your residents vote to form a cooperative—your organizing committee files this form to officially establish your group.
• Bylaws of Cooperative
  When to use: Required when registering a resident association or cooperative. Bylaws outline member rights, management, and voting.
  Nonprofit Corporate Governance Resources
  Example: Your newly formed nonprofit drafts and files bylaws along with the Articles of Incorporation.
• Property Purchase Agreement
  When to use: When residents are ready to make an offer, you enter into a written agreement with the current park owner.
  Note: While there’s no specific state form, the agreement should be drafted or reviewed by a lawyer.
  Example: After securing financing, the cooperative signs a purchase agreement with the park's owner.

In addition to these, you may need mortgage or loan applications and handbooks such as the official Tennessee Nonprofit Guide.

What Government Bodies Handle Disputes or Oversight?

Manufactured housing and mobile home park disputes in Tennessee are overseen by the Tennessee Real Estate Commission and the Division of Consumer Affairs. For issues under the landlord-tenant law, you can reference the Tennessee Uniform Residential Landlord and Tenant Act^[1].

Steps for Residents: How to Begin the Conversion Process

• Hold meetings with residents to gauge interest.
• Form an organizing committee or association.
• Draft and file articles of incorporation and bylaws.
• Open negotiations with the park owner.
• Seek legal and financial advice for offers and purchase agreements.
• Secure funding through lenders, government agencies, or nonprofits.
• If the purchase succeeds, transition management to the resident association.

FAQ: Resident Ownership in Tennessee Mobile Home Parks

1. Can park residents in Tennessee force a sale or get first priority to buy the park?
   No, Tennessee law does not require park owners to offer residents a chance to buy before selling to others. However, residents may reach out and try to negotiate a purchase if there’s interest in selling.
2. What is a resident cooperative?
   A resident cooperative is a legal association formed by park residents that collectively owns and operates the mobile home park for the benefit of all members.
3. Do residents need to hire a lawyer when starting a conversion?
   While not legally required, it is strongly recommended to consult with a lawyer specializing in property or cooperative conversions for contracts, bylaws, and negotiations.
4. What legal protections do residents have during the conversion?
   Residents are still protected by the Tennessee Uniform Residential Landlord and Tenant Act for issues like rent, maintenance, and eviction throughout the process.
5. Where can residents get information about financial help?
   Contact the Tennessee Housing Development Agency for homeownership support and affordable housing loan programs.

Key Takeaways

• Resident ownership is possible through organizing and collective purchase—but not currently guaranteed by law in Tennessee.
• Filing articles of incorporation and bylaws is essential to forming a cooperative or nonprofit for the conversion.
• State and local housing agencies can offer information and support during every stage of the process.

Careful planning, communication, and professional advice make the conversion process much smoother for residents.

Need Help? Resources for Renters

• Tennessee Real Estate Commission and Division of Consumer Affairs – oversight and complaints.
• Tennessee Housing Development Agency – information on homeownership, grants, and loans.
• Tennessee Uniform Residential Landlord and Tenant Act – know your rights as a renter or park resident.
• Articles of Incorporation Forms – Tennessee Secretary of State

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1. Tennessee Uniform Residential Landlord and Tenant Act
2. Tennessee Housing Development Agency
3. Tennessee Secretary of State: Nonprofit Corporation Forms

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