1.1A bill for an act1.2relating 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; resident right of first 1.10refusal.(a) 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-day90-day written notice of the purchaser's intent to close the park or convert it to 1.15another use, and offer the park for sale to the residents. 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 4590 days after it begins. 1.20(b) During the notice period required in this subdivision, the following shall have 1.21the right to purchase the park by meeting the cash price and executing an agreement 1.22to purchase the park for the purpose of keeping the park as a manufactured housing 1.23community:1.24(1) the owners of at least 51 percent of the manufactured homes in the park or;2.1(2) 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; or2.5(3) a resident-owned cooperative formed under either chapter 308A or 308B, unless 2.6a majority of the residents object, in writing, to a conversion under either chapter 308A or 2.7308B within 30 days after receipt of notice of an attempt to convert to a cooperative. 2.8(c) 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 close or convert use of park after purchase.(a) If the purchaser 2.14of a manufactured home park decides to close or convert the park to another use within 2.15one year within three years after the purchase of the park, the purchaser must offer the 2.16park for purchase by the residents of the park at a cash price equal to the tax assessed or 2.17market appraised value of the property as determined by an appraisal conducted by an 2.18independent appraisal agreed upon by both parties. For purposes of this subdivision, the 2.19date of purchase is the date of the transfer of the title to the purchaser. 2.20(b) 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. The following  shall have 4590 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:2.29(1) all of the owners of at least 51 percent of the manufactured homes in the park;2.30(2) a nonprofit organization which has the written permission of the owners of at 2.31least 51 percent of the manufactured home in the park to represent them in the acquisition 2.32of the park; or2.33(3) a resident-owned cooperative formed under either chapter 308A or 308B, unless 2.34a majority of the residents object, in writing, to a conversion under either chapter 308A or 2.35308B within 30 days after receipt of notice of an attempt to convert to a cooperative. 3.1(c) 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 3.54590 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 AND RIGHT OF FIRST REFUSAL.3.14    Subdivision 1.Notice of offer of sale. 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    Subd. 2.Notice required before sale.No manufactured home park owner 3.29shall make a final unconditional acceptance of any offer for the sale or transfer of a 3.30manufactured home park without first giving to each park resident 90-days' notice:3.31(1) that the owner intends to sell the manufactured home park; and3.32(2) of the price, terms, and conditions of an acceptable offer the park owner has 3.33received to sell the park or the price, terms, and conditions for which the park owner 3.34intends to sell the park.4.1The notice must include a copy of the signed written offer which sets forth a 4.2description of the property to be purchased and the price, terms, and conditions of the 4.3acceptable offer.4.4    Subd. 3.Right of first refusal.During the notice period provided in subdivision 2, 4.5the manufactured home park owner must offer the park for purchase by the residents of 4.6the park as a cooperative under chapter 308A or 308B or a nonprofit organization with 4.7the written permission of the owners of at least 51 percent of the manufactured home 4.8in the park to represent them in the acquisition of the park. During the notice period, 4.9the cooperative or nonprofit shall have the right to meet the cash price and execute an 4.10agreement to purchase the park for the purposes of keeping the park as a manufactured 4.11housing community.4.12    Subd. 4.Exceptions.This section does not apply in the case of a taking by eminent 4.13domain, a transfer by a corporation to an affiliate, a transfer by a partnership to one or 4.14more of its partners, or a sale or transfer to a person who would be an heir of the owner if 4.15the owner were to die intestate.4.16    Sec. 5.  REPEALER.4.17Minnesota Statutes 2006, section 327C.095, subdivision 8, is repealed.