HF 2967

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 02/26/2020 09:28pm

A bill for an act
relating to housing; allowing mortgage financing for manufactured homes in
manufactured home park cooperatives; amending Minnesota Statutes 2018, sections
168A.141, subdivisions 1, 1a, by adding a subdivision; 273.125, subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 168A.141, subdivision 1, is amended to read:

Subdivision 1.

Certificates surrendered for cancellation.

(a) When a manufactured
home is to be affixed or is affixed, as defined in section 273.125, subdivision 8, paragraph
(b), to real property, the owner of the manufactured home may surrender the manufacturer's
certificate of origin or certificate of title to the department for cancellation so that the
manufactured home becomes an improvement to real property and is no longer titled as
personal property. The department must not issue a certificate of title for a manufactured
home under chapter 168A if the manufacturer's certificate of origin is or has been surrendered
under this subdivision, except as provided in section 168A.142. Upon surrender of the
manufacturer's certificate of origin or the certificate of title, the department must issue notice
of surrender to the owner, and upon recording an affidavit of affixation, which the county
recorder or registrar of titles, as applicable, must accept, the manufactured home is deemed
to be an improvement to real property. An affidavit of affixation by the owner of the
manufactured home must include the following information:

(1) the name, residence address, and mailing address of owner or owners of the
manufactured home;

(2) the legal description of the real property in which the manufactured home is, or will
be, located;

(3) a copy of the surrendered manufacturer's certificate of origin or certificate of title
and the notice of surrender;

(4) a written statement from the county auditor or county treasurer of the county where
the manufactured home is located stating that all property taxes payable in the current year,
as provided under section 273.125, subdivision 8, paragraph (b), have been paid, or are not
applicable; new text begin and
new text end

deleted text begin (5) the name and address of the person designated by the applicant to record the original
affidavit of affixation with the county recorder or registrar of titles for the county where the
real property is located; and
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end the signature of the person who executes the affidavit, properly executed before
a person authorized to authenticate an affidavit in this state.

(b) deleted text begin The person designated in paragraph (a), clause (5), must record, or arrange for the
recording of, the affidavit of affixation, accompanied by the fees for recording and for
issuing a certified copy of the notice, including all attachments, showing the recording date.
Upon obtaining the certified copy of the notice under this paragraph, the person designated
in the affidavit must deliver the certified copy deleted text end new text begin A certified copy of the affidavit must be
delivered new text end to the county auditor of the county in which the real property to which the
manufactured home was affixed is located.

(c) The department is not liable for any errors, omissions, misstatements, or other
deficiencies or inaccuracies in documents presented to the department under this section,
if the documents presented appear to satisfy the requirements of this section. The department
has no obligation to investigate the accuracy of statements contained in the documents.

Sec. 2.

Minnesota Statutes 2018, section 168A.141, subdivision 1a, is amended to read:

Subd. 1a.

Affidavit form.

An affidavit of affixation must be in substantially the following
form and must contain the following information.

MANUFACTURED HOME AFFIDAVIT OF AFFIXATION

PURSUANT TO MINNESOTA STATUTES, SECTION 168A.141

Homeowner, being duly sworn, on his or her oath, states as follows:

1. Homeowner owns the manufactured home ("home") described as follows:

.
New/Used	Year	Manufacturer's Name	Model Name or Model No.	Manufacturer's Serial No.	Length/Width

2. A copy of the surrendered manufacturer's certificate of origin or certificate of title is
attached.

3. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
Driver and Vehicle Services is attached.

4. The home is or will be located at the following "Property Address":

.
Street or Route .	City .	County .	State .	Zip Code .

5. The legal description of the property address ("land") is as follows or as attached hereto:

.

.

.

6. The homeowner is the owner of the land new text begin or the owner of the land is a member of a
Minnesota nonprofit corporation or a Minnesota cooperative that owns the land and whose
membership entitles the homeowner to occupy a specific portion of the land new text end .

7. The home deleted text begin is, or must deleted text end new text begin ....... is, or ....... will new text end be promptly upon delivery, anchored to the
land by attachment to a permanent foundation and connected to appropriate residential
utilities (e.g., water, gas, electricity, sewer).

8. The homeowner intends that the home be an immovable permanent improvement to the
land, free of any personal property security interest.

9. A copy of the written statement from the county auditor or county treasurer of the county
in which the manufactured home is then located, stating that all property taxes payable in
the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
(b)), have been paid, or are not applicable, is attached.

10. The home deleted text begin must deleted text end new text begin is intended to new text end be assessed and taxed as an improvement to the land.

deleted text begin 11. The name and address of the person designated by the homeowner to record the original
deleted text end deleted text begin affidavit of surrender with the county recorder or registrar of titles of the county in which
deleted text end deleted text begin the real estate is located is:
deleted text end

deleted text begin Name deleted text end .
deleted text begin Street Address deleted text end .
deleted text begin City, State, Zip Code deleted text end .
deleted text begin Phone deleted text end .
deleted text begin E-mail deleted text end .

deleted text begin IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of
deleted text end deleted text begin ......., 20...
deleted text end

new text begin Signed and sworn to (or affirmed) before me on ....... (date) by ....... (names of
homeowner(s))
new text end

.	.
Homeowner Signature	Address
.	.
Printed Name	City, State
.
Homeowner Signature (if applicable)
.
Printed Name

This instrument was drafted by, and when recorded return to:

.
.
.

Subscribed and sworn to before me this ....... day of ......., .......

......................................................................
Signature of Notary Public or Other Official

Notary Stamp or Seal

(optional)

Lender's Statement of Intent:

The undersigned ("lender") intends that the home be immovable and a permanent
improvement to the land free of any personal property security interest.

.
Lender
By: .
Authorized Signature
STATE OF . )
. ) ss:
COUNTY OF . )

On the ....... day of ....... in the year ....... before me, the undersigned, a Notary Public in and
for said state, personally appeared

.

personally known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of
which the individual(s) acted, executed the instrument.

.
Notary Signature
.
Notary Printed Name
Notary Public, State of .
Qualified in the County of .
My commission expires .

Official seal:

new text begin [only if the owner of the land is a Minnesota nonprofit corporation or cooperative]:
new text end

new text begin The undersigned is the .............................. of .................................., a Minnesota [nonprofit
corporation or cooperative], which owns the land described above. I hereby certify that the
homeowner described above is a member of the [nonprofit corporation or cooperative]
whose membership entitles the homeowner to occupy [insert legal description of the
homeowner's lot or, if the corporation or cooperative has filed a scaled drawing as permitted
by subdivision 4, below, Lot ................. shown on such scaled drawing].
new text end

.
new text begin Signature block for nonprofit or cooperative new text end
.
new text begin Acknowledgment of officer of nonprofit or cooperative new text end

Sec. 3.

Minnesota Statutes 2018, section 168A.141, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Scaled drawing. new text end

new text begin (a) If the portion of the land occupied by the homeowner has
not been subdivided, the nonprofit or cooperative owner shall have prepared and recorded
against the land a scaled drawing prepared by a licensed professional land surveyor, who
shall certify that:
new text end

new text begin (1) the scaled drawing accurately depicts all information required by this subdivision;
and
new text end

new text begin (2) the work was undertaken by, or reviewed and approved by, the certifying land
surveyor.
new text end

new text begin (b) The scaled drawing shall show:
new text end

new text begin (1) the dimensions and location of all existing material structural improvements and
roadways;
new text end

new text begin (2) the extent of any encroachments by or upon any portion of the land;
new text end

new text begin (3) the location and dimensions of all recorded easements within the land burdening any
portion of the land;
new text end

new text begin (4) the distance and direction between noncontiguous parcels of real estate;
new text end

new text begin (5) the location and dimensions of the front, rear, and side boundaries of each lot that a
member of the cooperative or nonprofit corporation has a right to occupy and that lot's
unique lot number; and
new text end

new text begin (6) the legal description of the land.
new text end

Sec. 4.

Minnesota Statutes 2018, section 273.125, subdivision 8, is amended to read:

Subd. 8.

Manufactured homes; sectional structures.

(a) In this section, "manufactured
home" means a structure transportable in one or more sections, which is built on a permanent
chassis, and designed to be used as a dwelling with or without a permanent foundation when
connected to the required utilities, and contains the plumbing, heating, air conditioning, and
electrical systems in it. Manufactured home includes any accessory structure that is an
addition or supplement to the manufactured home and, when installed, becomes a part of
the manufactured home.

(b) Except as provided in paragraph (c), a manufactured home that meets each of the
following criteria must be valued and assessed as an improvement to real property, the
appropriate real property classification applies, and the valuation is subject to review and
the taxes payable in the manner provided for real property:

(1) the owner of the unit holds title to the land on which it is situated new text begin or the owner that
holds title to the land on which it is situated is a member of a Minnesota nonprofit corporation
or a Minnesota cooperative that holds title to the land on which it is situated new text end ;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34,
and rules adopted under those sections, or is affixed to the land like other real property in
the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(c) A manufactured home that meets each of the following criteria must be assessed at
the rate provided by the appropriate real property classification but must be treated as
personal property, and the valuation is subject to review and the taxes payable in the manner
provided in this section:

(1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is
located in a manufactured home park but is not the homestead of the park owner;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code contained in sections 327.31 to
327.34, and the rules adopted under those sections, or is affixed to the land like other real
property in the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(d) Sectional structures must be valued and assessed as an improvement to real property
if the owner of the structure holds title to the land on which it is located or is a qualifying
lessee of the land under section 273.19. In this paragraph "sectional structure" means a
building or structural unit that has been in whole or substantial part manufactured or
constructed at an off-site location to be wholly or partially assembled on site alone or with
other units and attached to a permanent foundation.

(e) The commissioner of revenue may adopt rules under the Administrative Procedure
Act to establish additional criteria for the classification of manufactured homes and sectional
structures under this subdivision.

(f) A storage shed, deck, or similar improvement constructed on property that is leased
or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer
is taxable as provided in this section. In the case of property that is leased or rented as a site
for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered
personal property under this paragraph is taxable only if its total estimated market value is
over $10,000. The property is taxable as personal property to the lessee of the site if it is
not owned by the owner of the site. The property is taxable as real estate if it is owned by
the owner of the site. As a condition of permitting the owner of the manufactured home,
sectional structure, park trailer, or travel trailer to construct improvements on the leased or
rented site, the owner of the site must obtain the permanent home address of the lessee or
user of the site. The site owner must provide the name and address to the assessor upon
request.