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HF 817

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/15/2023 10:54am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to housing; providing residents an opportunity to purchase manufactured
home parks; amending Minnesota Statutes 2022, section 327C.096; proposing
coding for new law in Minnesota Statutes, chapter 327C.

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

Section 1.

Minnesota Statutes 2022, section 327C.096, is amended to read:


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 a resident
of each manufactured home 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 a resident of each manufactured home 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. deleted text begin If at any time a
manufactured home park owner receives an unsolicited bona fide offer to purchase the park
that the owner intends to consider or make a counter offer to, the owner is under no obligation
to notify the residents as required under this section.
deleted text end

Sec. 2.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, "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 to:
new text end

new text begin (1) a purchase of a manufactured home park by a nonprofit or a representative acting
on behalf of residents pursuant to a bona fide offer to purchase the park pursuant to
subdivision 5;
new text end

new text begin (2) a purchase of a manufactured home park by a governmental entity under its powers
or threat of eminent domain;
new text end

new text begin (3) a transfer by a corporation or limited liability company to an affiliate, including any
shareholder or member of the transferring corporation; any corporation or entity owned or
controlled, directly or indirectly, by the transferring corporation; or any other corporation
or entity owned or controlled, directly or indirectly, by any shareholder or member of the
transferring corporation;
new text end

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

new text begin (5) a sale or transfer between or among joint tenants or tenants in common owning a
manufactured home park;
new text end

new text begin (6) an exchange of a manufactured home park for other real property, whether or not
such exchange also invoices the payment of cash or boot;
new text end

new text begin (7) a conveyance of an interest in a manufactured home park incidental to the financing
of the manufactured home park;
new text end

new text begin (8) a conveyance resulting from the foreclosure of a mortgage, cancellation of a contract
for deed, or other instrument encumbering a manufactured home park or any deed given in
lieu of such foreclosure or cancellation; or
new text end

new text begin (9) a sale or transfer to a person who would be included within the intestate table of
descent and distribution of the park owner.
new text end

new text begin Subd. 3. new text end

new text begin Notice of offer. new text end

new text begin (a) If a park owner receives an offer to purchase the park that
the park owner intends to consider or make a counteroffer to, the park owner's only obligation
shall be to mail a notice to the Minnesota Housing Finance Agency, by certified mail, and
to each park resident household, by regular mail. The notice must indicate that the park
owner has received an offer that it is considering, and it must disclose the price range and
material terms and conditions upon which the park owner would consider selling the park
and consider any offer made by a representative acting on behalf of residents or a nonprofit
that will become a representative acting on behalf of residents, as provided below. The park
owner shall be under no obligation either to sell to the nonprofit or representative acting on
behalf of residents or to interrupt or delay other negotiations and shall be free to execute a
purchase agreement or contract for the sale of the park to a party or parties other than the
representative acting on behalf of residents. Substantial compliance with the notice
requirement in this paragraph shall be deemed sufficient.
new text end

new text begin (b) The Minnesota Housing Finance Agency must, within five days of receipt of the
notice required under paragraph (a), distribute a copy of the notice to any representative
acting on behalf of residents and to any nonprofits that register with the agency to receive
such notices. The agency shall make a list of any representatives acting on behalf of residents
and any registered nonprofits publicly available on its website.
new text end

new text begin Subd. 4. new text end

new text begin Notice of intent to purchase. new text end

new text begin (a) Within ten days of receiving the notice
required under subdivision 3, if a representative acting on behalf of residents or a nonprofit
seeking to become a representative acting on behalf of residents intends to purchase the
park on behalf of residents, the representative or nonprofit must inform the park owner of
the intent to purchase. This notice must be in writing and must be served personally upon
the park owner at the business address listed on file with the Department of Health.
Additionally, the representative or nonprofit must provide nonrefundable earnest money in
the amount of 1-1/2 percent of the lower value of the price range required to be disclosed
under subdivision 3, paragraph (a).
new text end

new text begin (b) If notice of intent is received by the park owner within the time period established
in paragraph (a), a representative acting on behalf of residents shall have 30 days from its
notice of intent to purchase to provide the park owner with a purchase agreement executed
by the representative acting on behalf of the residents together with additional refundable
earnest money which constitutes at least 1-1/2 percent of the purchase price for the park
owner to consider.
new text end

new text begin Subd. 5. new text end

new text begin Unsolicited offer. new text end

new text begin Nothing contained in this section or section 327C.096 shall
prevent a representative acting on behalf of residents or a nonprofit from making an
unsolicited bona fide offer to purchase the manufactured home park to the park owner at
any time.
new text end

new text begin Subd. 6. new text end

new text begin Remedies. new text end

new text begin In the event a park owner does not provide the notice required in
subdivision 3 prior to a sale to a third party, upon said sale to a third party, the owner shall
be liable for damages of up to $600 per home site. If the sale has not yet been completed
to a third party, the representative acting on behalf of the residents may seek injunctive
relief to require the park owner to provide the notice required under subdivision 3 or to
require the park owner to receive the notice and purchase agreement under subdivision 4,
up until the time of a sale to a third party, but not thereafter. If a representative acting on
behalf of residents or a nonprofit is found by a court to have made a frivolous offer only
for the purposes of frustration and delay of a sale to a bona fide purchaser, the provisions
of this section shall be waived for three years with respect to the park.
new text end

new text begin Subd. 7. 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. 8. 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 and the Minnesota Housing Finance Agency 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 EFFECTIVE DATE. new text end

new text begin This section is effective once the commissioner of revenue certifies
to the commissioner of Minnesota Management and Budget that a tax bill has been enacted.
new text end