Resolution would let a senator introduce rules for company-owned homes

The resolution would have authorized Senator Blake Johnson to introduce a bill with this notice requirement. It would cover agreements to buy an interest in a company that owns a house, duplex, triplex, or fourplex, when holding that interest gives the buyer exclusive possession of the home. The proposed bill would exempt certain homes on parcels of at least 25 acres owned by religious organizations or related nonprofits, and timeshare interests. The resolution died in House committee at the end of the session, so it did not authorize the introduction.

The proposed bill would bar covered agreements from sending disputes to a tribunal instead of a state or federal court. It would also let owners transfer their company interest without approval or a fee. These rules would cover company interests that give the buyer exclusive possession of a house, duplex, triplex, or fourplex while they hold the interest. Company actions involving transfers, upkeep requirements, or refusing a qualified person could not violate Arkansas fair housing law as if the interest were real property. The proposed rules would exempt certain religious or nonprofit housing on parcels of at least 25 acres, and timeshare interests. The resolution died in House committee at the end of the session, so these proposed rules did not take effect.

The proposed bill would make violations unfair business practices and give the Attorney General enforcement powers. A court could block certain development or construction after finding a violation. These proposed enforcement provisions would apply to managing companies in the covered home arrangements and, for a court injunction, people affiliated with them. A managing company under investigation for an Arkansas Securities Act violation could not act regarding an interest; the Attorney General could seek an injunction for a violation of that restriction. A court could enjoin a company or affiliate from development or construction steps, including steps involving public money or a utility district, after finding a violation. The resolution died in House committee at the end of the session, so these proposed enforcement provisions did not take effect.