1.1 	A bill for an act
1.2 	relating to housing; regulating condominium conversions; amending Minnesota 
1.3 	Statutes 2005 Supplement, section 515B.1-106.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2005 Supplement, section 515B.1-106, is amended to 
1.6 	read:
1.7 	515B.1-106 APPLICABILITY OF LOCAL REQUIREMENTS.
1.8 	(a) Except as provided in subsections (b) and (c), a zoning, subdivision, building 
1.9 	code, or other real estate use law, ordinance, charter provision, or regulation may not 
1.10 	directly or indirectly prohibit the common interest community form of ownership or 
1.11 	impose any requirement upon a common interest community, upon the creation or 
1.12 	disposition of a common interest community or upon any part of the common interest 
1.13 	community conversion process which it would not impose upon a physically similar 
1.14 	development under a different form of ownership. Otherwise, no provision of this chapter 
1.15 	invalidates or modifies any provision of any zoning, subdivision, building code, or other 
1.16 	real estate use law, ordinance, charter provision, or regulation.
1.17 	(b) Subsection (a) shall not apply to any ordinance, rule, regulation, charter provision 
1.18 	or contract provision relating to the financing of housing construction, rehabilitation, or 
1.19 	purchases provided by or through a housing finance program established and operated 
1.20 	pursuant to state or federal law by a state or local agency or local unit of government.
1.21 	(c) A statutory or home rule charter city, pursuant to an ordinance or charter 
1.22 	provision establishing standards to be applied uniformly within its jurisdiction, may 
1.23 	prohibit or impose reasonable conditions upon the conversion of buildings occupied 
1.24 	wholly or partially for residential use to the common interest community form of 
2.1 	ownership only if there exists within the city a significant shortage of suitable rental 
2.2 	dwellings available to low and moderate income individuals or families or to establish or 
2.3 	maintain the city's eligibility for any federal or state program providing direct or indirect 
2.4 	financial assistance for housing to the city. Prior to the adoption of an ordinance pursuant 
2.5 	to the authority granted in this subsection, the city shall conduct a public hearing. Any 
2.6 	ordinance or charter provision adopted pursuant to this subsection shall not apply to 
2.7 	any existing or proposed conversion common interest community (i) for which a bona 
2.8 	fide loan commitment for a consideration has been issued by a lender and is in effect on 
2.9 	the date of adoption of the ordinance or charter provision, or (ii) for which a notice of 
2.10 	conversion or intent to convert required by section 515B.4-111, containing a termination 
2.11 	of tenancy, has been given to at least 75 percent of the tenants and subtenants in possession 
2.12 	prior to the date of adoption of the ordinance or charter provision.
2.13 	(d) For purposes of providing marketable title, a statement in the declaration that 
2.14 	the common interest community is not subject to an ordinance or that any conditions 
2.15 	required under an ordinance have been complied with shall be prima facie evidence that 
2.16 	the common interest community was not created in violation of the ordinance.
2.17 	(e) A violation of an ordinance or charter provision adopted pursuant to the 
2.18 	provisions of subsection (b) or (c) shall not affect the validity of a common interest 
2.19 	community. This subsection shall not be construed to in any way limit the power of 
2.20 	a city to enforce the provisions of an ordinance or charter provision adopted pursuant 
2.21 	to subsection (b) or (c).
2.22 	(f) Any ordinance or charter provision enacted hereunder shall not be effective for 
2.23 	a period exceeding 18 months.
2.24 	(f) Any ordinance or charter provision enacted hereunder that prohibits the 
2.25 	conversion of buildings to the common interest community form of ownership shall not be 
2.26 	effective for a period exceeding 18 months.