(1) During the process described in RCW 59.20.325, the parties shall act in good faith and in a commercially reasonable manner, which includes a duty for the tenants to notify the owner promptly if there is no intent to purchase the manufactured/mobile home community or the property on which it sits. The parties have an overall duty to act in good faith. With respect to negotiation, this overall duty of good faith requirement means that the owner must allow the tenants to develop an offer, must give their offer reasonable consideration, and to further competition, must inform any qualified tenant organization, eligible organizations, and competing potential buyers participating in negotiations upon receipt if a preferred offer is submitted. Furthermore, the owner may not deny residents the same access to the community and to information, such as operating expenses and rent rolls, that the landowner would give to a commercial buyer. With respect to financial information, all parties shall agree to keep this information confidential.

(2) Except as provided in RCW 59.20.340(1), before selling a manufactured/mobile home community to an entity that is not formed by or associated with the tenants, or to an eligible organization, the owner of the manufactured/mobile home community must give the notice required by RCW 59.20.325.

(3) A minor error in providing the notice required by RCW 59.20.325 does not prevent the owner from selling the manufactured/mobile home community to an entity that is not formed by or associated with the tenants and does not cause the owner to be liable to the tenants for damages or a penalty.

(4) During the process described in RCW 59.20.325, the owner may seek, negotiate with, or enter into a contract subject to the rights of the tenants in chapter 40, Laws of 2023 with potential purchasers other than the tenants or an entity formed by or associated with the tenants or another eligible organization.

(5) If the owner does not comply with the requirements of chapter 40, Laws of 2023 in a substantial way that prevents the tenants or an eligible organization from competing to purchase the manufactured/mobile home community, the tenants or eligible organization may:

(a) Obtain injunctive relief to prevent a sale or transfer to an entity that is not formed by or associated with the tenants; and

(b) Recover actual damages not to exceed twice the monthly rent from the owner for each tenant.

(6) If a party misuses or discloses, in a substantial way, confidential information, that party may recover actual damages from the other party.

(7) The department of commerce shall prepare and make available information for tenants about purchasing a manufactured dwelling or manufactured/mobile home community.

(8) Every six months from the date of delivery of a notice of opportunity to compete to purchase as provided in RCW 59.20.325 until sold or no longer for sale or actively listed, the owner must provide the department of commerce by mail, electronic delivery, or personal delivery an update on the status of the notification and an update on the status of sale. The update will be made publicly available by the department of commerce within 10 business days of receipt. The notice must include:

(a) The date that the notice was sent by mail, electronically delivered, or personally delivered to all recipients as set forth in RCW 59.20.325;

(b) The status of the sale or the opportunity to compete to purchase of the property as active, under contract, closed, or removed from the market;

(c) If the property has sold, the date of closing;

(d) If the property is under contract, the anticipated closing date;

(e) If the property is active, any change in listing price and other information noted in subsection (1) of this section.

Findings—Intent—2023 c 40: See note following RCW 59.20.030.