SF 1907

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/06/2024 04:12pm

A bill for an act
relating to housing; modifying the definition of representative acting on behalf of
residents; providing residents an opportunity to purchase manufactured home
parks; amending Minnesota Statutes 2022, section 327C.015, subdivision 13;
proposing coding for new law in Minnesota Statutes, chapter 327C; repealing
Minnesota Statutes 2022, section 327C.096.

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

Section 1.

Minnesota Statutes 2022, section 327C.015, subdivision 13, is amended to read:

Subd. 13.

Representative acting on behalf of residents.

"Representative acting on
behalf of residents" means a representative who is authorized to represent residents in the
purchase of property for the purposes of this chapter, and has gained that authorization by
obtaining the signature of support from at least one resident who is a homeowner-signatory
to the home's lot lease agreement as defined by subdivision 14, from deleted text begin at least 51 deleted text end new text begin greater than
50 new text end percent of the occupied homes in a manufactured home park. The signature of a resident
who is a signatory to the home's lot lease agreement asserting that they are a resident of that
manufactured home park shall be presumptive evidence of the claim that the representative
is authorized to act on behalf of the resident and shall be exclusive to only one representative
acting on behalf of residents.

Sec. 2.

new text begin [327C.097] OPPORTUNITY TO PURCHASE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Representative acting on behalf of resident" has the meaning given in section
327C.015, subdivision 13.
new text end

new text begin (c) "Nonprofit" means a nonprofit organization under chapter 317A.
new text end

new text begin Subd. 2. new text end

new text begin Scope. new text end

new text begin This section does not apply where the conveyance of the manufactured
home park is by a:
new text end

new text begin (1) taking by eminent domain;
new text end

new text begin (2) transfer by a corporation to an affiliate;
new text end

new text begin (3) foreclosure;
new text end

new text begin (4) transfer by a partnership to one or more of its partners; or
new text end

new text begin (5) sale or transfer to a person who would be an heir of the owner who dies intestate.
new text end

new text begin Subd. 3. new text end

new text begin Notice of sale. new text end

new text begin (a) No park owner may accept any offer for the sale, lease, or
transfer of a manufactured home park without first giving 60 days' written notice by certified
mail, return receipt requested, of the proposed sale, lease, or transfer to:
new text end

new text begin (1) each resident of the manufactured home park; and
new text end

new text begin (2) the Minnesota Housing Finance Agency.
new text end

new text begin (b) The notice required under this subdivision must be dated and indicate the price,
terms, and conditions of an acceptable offer the park owner has received to sell, lease, or
transfer the manufactured home park. The notice must include the following verbatim
statement: "The park owner has received and is prepared to accept an outside offer to [sell,
lease, transfer] this park. The price, terms, and conditions of the offer are listed below.
Before accepting the offer for the [sale, lease, transfer], the park owner will consider any
offer submitted within 60 days of the date of this notice by a representative acting on behalf
of residents. The owner will negotiate in good faith with the representative. [List of price,
terms, and conditions.]"
new text end

new text begin (c) An owner must make available upon the request of a resident a copy of any acceptable
agreement to sell, lease, or transfer the manufactured home park for a period of 60 days
following the date of the notice required under this subdivision. The owner must provide
the copy within three days of the request by the resident.
new text end

new text begin Subd. 4. new text end

new text begin Residents' offer to purchase. new text end

new text begin (a) A representative acting on behalf of residents
may submit a written offer to the park owner to purchase the manufactured home park
subject to the conditions required under subdivision 7. The offer must be submitted within
60 days of the postmark date of the notice required under subdivision 3, by certified mail,
return receipt requested.
new text end

new text begin (b) If the owner rejects the offer of a representative acting on behalf of residents, the
owner must provide written notice to the representative of, and an explanation of the reasons
for, rejection of the offer. The notice of rejection must be delivered to the representative by
certified mail within five days of receipt of the offer from the representative. No owner may
accept a final, unconditional offer for the sale, lease, or transfer of a manufactured home
park earlier than on the 15th day following the certified delivery date of the notice of
rejection. The purchase agreement must permit the representative acting on behalf of residents
a commercially reasonable due diligence period with access by the representative to all
information reasonably necessary to make an informed decision regarding the purchase.
The representative may be required to enter into a confidentiality agreement regarding the
information.
new text end

new text begin Subd. 5. new text end

new text begin Optional recording. new text end

new text begin (a) A park owner may record with the county recorder or
registrar of titles in the county where the park is located an affidavit, with a copy of the
notice required under subdivision 3 attached, attesting:
new text end

new text begin (1) the park owner has complied with the requirements of this section; or
new text end

new text begin (2) the sale, lease, or transfer of the manufactured home park is exempt from this section
pursuant to subdivision 2.
new text end

new text begin (b) An affidavit filed in accordance with this subdivision shall be presumptive evidence
of compliance for purposes of conveying good title to a bona fide purchaser.
new text end

new text begin (c) A representative acting on behalf of residents who makes an offer to purchase the
park as provided under subdivision 4 may record notice of the offer in the county recorder's
office.
new text end

new text begin Subd. 6. new text end

new text begin Good faith obligations. new text end

new text begin All transactions governed by, and all actions taken
pursuant to, this section must be conducted in good faith.
new text end

new text begin Subd. 7. new text end

new text begin Requirement of affordable housing preservation. new text end

new text begin In the event of a sale to a
representative acting on behalf of residents, the representative must certify to the
commissioner of commerce that the property will be preserved as a manufactured home
park for ten years from the date of the sale.
new text end

new text begin Subd. 8. new text end

new text begin Challenge to petition. new text end

new text begin In any action challenging the validity of the signatories
of the petition authorizing a representative acting on behalf of residents to represent residents
in negotiations to purchase a manufactured home park, there shall be a rebuttable presumption
that the challenged party's signature is sufficient evidence that the party is a valid signatory.
new text end

new text begin Subd. 9. new text end

new text begin Remedies. new text end

new text begin (a) A park owner who violates subdivision 3, 4, or 6 is liable to each
resident for actual, incidental, or consequential damages, plus attorney fees and costs.
new text end

new text begin (b) In addition to the remedies that a resident is entitled to under paragraph (a), a court
may grant declaratory, injunctive, or equitable relief.
new text end

new text begin (c) The remedies provided under this subdivision are cumulative, not exclusive, and do
not restrict any remedy that is otherwise available to a plaintiff at law or in equity.
new text end

new text begin Subd. 10. new text end

new text begin List of interested organizations. new text end

new text begin The Minnesota Housing Finance Agency
must:
new text end

new text begin (1) within ten days of receipt of a notice received under subdivision 3, distribute a copy
of the notice to nonprofit organizations that register with the Minnesota Housing Finance
Agency to receive such notices; and
new text end

new text begin (2) make the list of nonprofit organizations that have so registered publicly available on
the Minnesota Housing Finance Agency website.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 327C.096, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-02615

327C.096 NOTICE OF SALE.

When a park owner offers to sell a manufactured home park to the public through advertising in a newspaper or by listing the park with a real estate broker licensed by the Department of Commerce, the owner must provide concurrent written notice to each resident household in the park that the park is being offered for sale. Written notice provided once within a one-year period satisfies the requirement under this section. The notice provided by the park owner to each resident household does not grant any property rights in the park and is for informational purposes only. This section does not apply in the case of a taking by eminent domain, a transfer by a corporation to an affiliate, a transfer by a partnership to one or more of its partners, or a sale or transfer to a person who would be an heir of the owner if the owner were to die intestate.