HF 1301

1st Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:38 p.m.

1.1A bill for an act 1.2relating to housing; establishing a resident right of refusal when a manufactured 1.3home park is being sold;amending Minnesota Statutes 2006, sections 327C.095, 1.4subdivisions 6, 7, 9; 327C.096; repealing Minnesota Statutes 2006, section 1.5327C.095, subdivision 8. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7    Section 1. Minnesota Statutes 2006, section 327C.095, subdivision 6, is amended to 1.8read: 1.9    Subd. 6. Intent to convert use of park at time of purchase new text begin ; resident right of first new text end 1.10 new text begin refusal new text end . new text begin (a) new text end Before the execution of an agreement to purchase a manufactured home park, 1.11the purchaser must notify the park owner, in writing, if the purchaser intends to close the 1.12manufactured home park or convert it to another use within one year of the execution of 1.13the agreement. The park owner shall provide a resident of each manufactured home with a 1.1445-day new text begin 90-day new text end written notice of the purchaser's intent to close the park or convert it to 1.15another use new text begin , and offer the park for sale to the residents new text end . The notice must state that the park 1.16owner will provide information on the cash price and the terms and conditions of the 1.17purchaser's offer to residents requesting the information. The notice must be sent by first 1.18class mail to a resident of each manufactured home in the park. The notice period begins 1.19on the postmark date affixed to the notice and ends 45 new text begin 90 new text end days after it begins. 1.20 new text begin (b) new text end During the notice period required in this subdivision, new text begin the following shall have new text end 1.21 new text begin the right to purchase the park by meeting the cash price and executing an agreement new text end 1.22 new text begin to purchase the park for the purpose of keeping the park as a manufactured housing new text end 1.23 new text begin community: new text end 1.24 new text begin (1) new text end the owners of at least 51 percent of the manufactured homes in the park or new text begin ; new text end 2.1 new text begin (2) new text end a nonprofit organization which has the written permission of the owners of at 2.2least 51 percent of the manufactured homes in the park to represent them in the acquisition 2.3of the park shall have the right to meet the cash price and execute an agreement to purchase 2.4the park for the purposes of keeping the park as a manufactured housing community new text begin ; or new text end 2.5 new text begin (3) a resident-owned cooperative formed under either chapter 308A or 308B, unless new text end 2.6 new text begin a majority of the residents object, in writing, to a conversion under either chapter 308A or new text end 2.7 new text begin 308B within 30 days after receipt of notice of an attempt to convert to a cooperative new text end . 2.8 new text begin (c) new text end The park owner must accept the offer if it meets the cash price and the same 2.9terms and conditions set forth in the purchaser's offer except that the seller is not obligated 2.10to provide owner financing. For purposes of this section, cash price means the cash price 2.11offer or equivalent cash offer as defined in section 500.245, subdivision 1, paragraph (d). 2.12    Sec. 2. Minnesota Statutes 2006, section 327C.095, subdivision 7, is amended to read: 2.13    Subd. 7. Intent to new text begin close or new text end convert use of park after purchase. new text begin (a) new text end If the purchaser 2.14of a manufactured home park decides to new text begin close or new text end convert the park to another use within 2.15one year new text begin within three years new text end after the purchase of the park, the purchaser must offer the 2.16park for purchase by the residents of the park new text begin at a cash price equal to the tax assessed or new text end 2.17 new text begin market appraised value of the property as determined by an appraisal conducted by an new text end 2.18 new text begin independent appraisal agreed upon by both parties new text end . For purposes of this subdivision, the 2.19date of purchase is the date of the transfer of the title to the purchaser. 2.20 new text begin (b) new text end The purchaser must provide a resident of each manufactured home with a 2.21written notice of the intent to close the park and all of the owners of at least 51 percent 2.22of the manufactured homes in the park or a nonprofit organization which has the written 2.23permission of the owners of at least 51 percent of the manufactured homes in the park 2.24to represent them in the acquisition of the park new text begin . The following new text end shall have 45 new text begin 90 new text end days to 2.25execute an agreement for the purchase of the park at a cash price equal to the original 2.26purchase price paid by the purchaser plus any documented expenses relating to the 2.27acquisition and improvement of the park property, together with any increase in value 2.28due to appreciation of the park new text begin : new text end 2.29 new text begin (1) all of the owners of at least 51 percent of the manufactured homes in the park; new text end 2.30 new text begin (2) a nonprofit organization which has the written permission of the owners of at new text end 2.31 new text begin least 51 percent of the manufactured home in the park to represent them in the acquisition new text end 2.32 new text begin of the park; or new text end 2.33 new text begin (3) a resident-owned cooperative formed under either chapter 308A or 308B, unless new text end 2.34 new text begin a majority of the residents object, in writing, to a conversion under either chapter 308A or new text end 2.35 new text begin 308B within 30 days after receipt of notice of an attempt to convert to a cooperative new text end . 3.1 new text begin (c) new text end The purchaser must execute the purchase agreement at the price specified in this 3.2subdivision and pay the cash price within 90 days of the date of the purchase agreement. 3.3The notice must be sent by first class mail to a resident of each manufactured home in 3.4the park. The notice period begins on the postmark date affixed to the notice and ends 3.545 new text begin 90 new text end days after it begins. 3.6    Sec. 3. Minnesota Statutes 2006, section 327C.095, subdivision 9, is amended to read: 3.7    Subd. 9. Effect of noncompliance. If a manufactured home park is finally sold or 3.8converted to another use in violation of subdivision 6 or 7, the residents do not have any 3.9continuing right to purchase the park as a result of that sale or conversion. A violation 3.10of subdivision 6 or 7 is subject to section 8.31, except that relief shall be limited so that 3.11questions of marketability of title shall not be affected. 3.12    Sec. 4. Minnesota Statutes 2006, section 327C.096, is amended to read: 3.13327C.096 NOTICE OF SALE new text begin AND RIGHT OF FIRST REFUSAL new text end . 3.14     new text begin Subdivision 1. new text end new text begin Notice of offer of sale. new text end When a park owner offers to sell a 3.15manufactured home park to the public through advertising in a newspaper or by listing 3.16the park with a realtor licensed by the Department of Commerce, the owner must provide 3.17concurrent written notice to a resident of each manufactured home in the park that the 3.18park is being offered for sale. Written notice provided once within a one-year period 3.19satisfies the requirement under this section. The notice provided by the park owner to a 3.20resident of each manufactured home does not grant any property rights in the park and is 3.21for informational purposes only. This section does not apply in the case of a taking by 3.22eminent domain, a transfer by a corporation to an affiliate, a transfer by a partnership to 3.23one or more of its partners, or a sale or transfer to a person who would be an heir of 3.24the owner if the owner were to die intestate. If at any time a manufactured home park 3.25owner receives an unsolicited bona fide offer to purchase the park that the owner intends 3.26to consider or make a counter offer to, the owner is under no obligation to notify the 3.27residents as required under this section. 3.28     new text begin Subd. 2. new text end new text begin Notice required before sale. new text end new text begin No manufactured home park owner new text end 3.29 new text begin shall make a final unconditional acceptance of any offer for the sale or transfer of a new text end 3.30 new text begin manufactured home park without first giving to each park resident 90-days' notice: new text end 3.31 new text begin (1) that the owner intends to sell the manufactured home park; and new text end 3.32 new text begin (2) of the price, terms, and conditions of an acceptable offer the park owner has new text end 3.33 new text begin received to sell the park or the price, terms, and conditions for which the park owner new text end 3.34 new text begin intends to sell the park. new text end 4.1 new text begin The notice must include a copy of the signed written offer which sets forth a new text end 4.2 new text begin description of the property to be purchased and the price, terms, and conditions of the new text end 4.3 new text begin acceptable offer. new text end 4.4     new text begin Subd. 3. new text end new text begin Right of first refusal. new text end new text begin During the notice period provided in subdivision 2, new text end 4.5 new text begin the manufactured home park owner must offer the park for purchase by the residents of new text end 4.6 new text begin the park as a cooperative under chapter 308A or 308B or a nonprofit organization with new text end 4.7 new text begin the written permission of the owners of at least 51 percent of the manufactured home new text end 4.8 new text begin in the park to represent them in the acquisition of the park. During the notice period, new text end 4.9 new text begin the cooperative or nonprofit shall have the right to meet the cash price and execute an new text end 4.10 new text begin agreement to purchase the park for the purposes of keeping the park as a manufactured new text end 4.11 new text begin housing community. new text end 4.12     new text begin Subd. 4. new text end new text begin Exceptions. new text end new text begin This section does not apply in the case of a taking by eminent new text end 4.13 new text begin domain, a transfer by a corporation to an affiliate, a transfer by a partnership to one or new text end 4.14 new text begin more of its partners, or a sale or transfer to a person who would be an heir of the owner if new text end 4.15 new text begin the owner were to die intestate. new text end 4.16    Sec. 5. new text begin REPEALER. new text end 4.17 new text begin Minnesota Statutes 2006, section 327C.095, subdivision 8, new text end new text begin is repealed. new text end