1.1 	A bill for an act
1.2 	relating to real property; Minnesota Common Interest
1.3 	Ownership Act; requiring local government approval of
1.4 	subdivisions or conversions of shoreland; amending
1.5 	Minnesota Statutes 2004, section 515B.1-106.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 515B.1-106, is
1.8 	amended to read:
1.9 	515B.1-106 APPLICABILITY OF LOCAL REQUIREMENTS.
1.10 	(a) Except as provided in subsections (b) and (c), a
1.11 	zoning, subdivision, building code, or other real estate use
1.12 	law, ordinance, charter provision, or regulation may not
1.13 	directly or indirectly prohibit the common interest community
1.14 	form of ownership or impose any requirement upon a common
1.15 	interest community, upon the creation or disposition of a common
1.16 	interest community or upon any part of the common interest
1.17 	community conversion process which it would not impose upon a
1.18 	physically similar development under a different form of
1.19 	ownership.  Otherwise, no provision of this chapter invalidates
1.20 	or modifies any provision of any zoning, subdivision, building
1.21 	code, or other real estate use law, ordinance, charter
1.22 	provision, or regulation. Before recording any CIC or amended
1.23 	CIC plat subdividing or converting shoreland, as defined in
1.24 	section 103F.205, subdivision 4, a land owner must submit the
1.25 	proposed subdivision or conversion to the local government where
2.1 	the unit is located for review and approval for compliance with
2.2 	the local government's ordinances regulating shoreland.
2.3 	(b) Subsection (a) shall not apply to any ordinance, rule,
2.4 	regulation, charter provision or contract provision relating to
2.5 	the financing of housing construction, rehabilitation, or
2.6 	purchases provided by or through a housing finance program
2.7 	established and operated pursuant to state or federal law by a
2.8 	state or local agency or local unit of government.
2.9 	(c) A statutory or home rule charter city, pursuant to an
2.10 	ordinance or charter provision establishing standards to be
2.11 	applied uniformly within its jurisdiction, may prohibit or
2.12 	impose reasonable conditions upon the conversion of buildings to
2.13 	the common interest community form of ownership only if there
2.14 	exists within the city a significant shortage of suitable rental
2.15 	dwellings available to low and moderate income individuals or
2.16 	families or to establish or maintain the city's eligibility for
2.17 	any federal or state program providing direct or indirect
2.18 	financial assistance for housing to the city.  Prior to the
2.19 	adoption of an ordinance pursuant to the authority granted in
2.20 	this subsection, the city shall conduct a public hearing.  Any
2.21 	ordinance or charter provision adopted pursuant to this
2.22 	subsection shall not apply to any existing or proposed
2.23 	conversion common interest community (i) for which a bona fide
2.24 	loan commitment for a consideration has been issued by a lender
2.25 	and is in effect on the date of adoption of the ordinance or
2.26 	charter provision, or (ii) for which a notice of conversion or
2.27 	intent to convert required by section 515B.4-111, containing a
2.28 	termination of tenancy, has been given to at least 75 percent of
2.29 	the tenants and subtenants in possession prior to the date of
2.30 	adoption of the ordinance or charter provision.
2.31 	(d) For purposes of providing marketable title, a statement
2.32 	in the declaration that the common interest community is not
2.33 	subject to an ordinance or that any conditions required under an
2.34 	ordinance have been complied with shall be prima facie evidence
2.35 	that the common interest community was not created in violation
2.36 	of the ordinance.
3.1 	(e) A violation of an ordinance or charter provision
3.2 	adopted pursuant to the provisions of subsection (b) or (c)
3.3 	shall not affect the validity of a common interest community.
3.4 	This subsection shall not be construed to in any way limit the
3.5 	power of a city to enforce the provisions of an ordinance or
3.6 	charter provision adopted pursuant to subsection (b) or (c).
3.7 	(f) Any ordinance or charter provision enacted hereunder
3.8 	shall not be effective for a period exceeding 18 months.