SF 1196

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

Posted on 12/15/2009 12:00 a.m.

1.1A bill for an act 1.2relating to housing; creating the Minnesota manufactured home relocation trust 1.3fund; requiring that a manufactured home park owner make specified payments 1.4to the trust fund; requiring an owner of a manufactured home who rents a lot 1.5in a manufactured home park to make an annual payment to the trust fund; 1.6authorizing advances to the Minnesota manufactured home relocation trust fund; 1.7amending Minnesota Statutes 2006, sections 327C.095, subdivisions 1, 4, by 1.8adding subdivisions; 462A.21, by adding a subdivision; proposing coding for 1.9new law in Minnesota Statutes, chapter 462A. 1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.11    Section 1. Minnesota Statutes 2006, section 327C.095, subdivision 1, is amended to 1.12read: 1.13    Subdivision 1. Conversion of use; minimum notice. At least nine months before 1.14the conversion of all or a portion of a manufactured home park to another use, or before 1.15closure of a manufactured home park or cessation of use of the land as a manufactured 1.16home park, the park owner must prepare a closure statement and provide a copy to the 1.17commissioners of health and the housing finance agency, the local planning agency, and 1.18a resident of each manufactured home where the residential use is being converted. 1.19 new text begin The closure statement must include the following language in a font no smaller than 14 new text end 1.20 new text begin point: "YOU MAY BE ENTITLED TO COMPENSATION FROM THE MINNESOTA new text end 1.21 new text begin MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE new text end 1.22 new text begin MINNESOTA HOUSING FINANCE AGENCY." new text end A resident may not be required to 1.23vacate until 60 days after the conclusion of the public hearing required under subdivision 1.244. If a lot is available in another section of the park that will continue to be operated as a 1.25park, the park owner must allow the resident to relocate the home to that lot unless the 1.26home, because of its size or local ordinance, is not compatible with that lot. 2.1    Sec. 2. Minnesota Statutes 2006, section 327C.095, subdivision 4, is amended to read: 2.2    Subd. 4. Public hearing; relocation costs new text begin compensation; neutral third party new text end . 2.3    The governing body of the new text begin affected new text end municipality shall hold a public hearing to review 2.4the closure statement and any impact that the park closing may have on the displaced 2.5residents and the park owner. Before any change in use or cessation of operation and as a 2.6condition of the change, the governing body may require a payment by the park owner to 2.7be made to the displaced resident for the reasonable relocation costs. If a resident cannot 2.8relocate the home to another manufactured home park within a 25 mile radius of the park 2.9that is being closed, the resident is entitled to relocation costs based upon an average of 2.10relocation costs awarded to other residents. new text begin At the time of, and in the notice for, the public new text end 2.11 new text begin hearing, displaced residents must be informed that they may be eligible for payments new text end 2.12 new text begin from the Minnesota manufactured home relocation trust fund under section 462A.40 as new text end 2.13 new text begin compensation for reasonable relocation costs under subdivision 13, paragraphs (a) and (e). new text end 2.14    The governing body of the municipality may also require that other parties, including 2.15the municipality new text begin , but excluding the park owner or its purchaser new text end , involved in the park 2.16closing provide additional compensation to residents to mitigate the adverse financial 2.17impact of the park closing upon the residents. 2.18     new text begin At the public hearing, the municipality shall appoint a neutral third party, to be new text end 2.19 new text begin agreed upon by both the manufactured home park owner and manufactured home owners, new text end 2.20 new text begin whose hourly cost must be reasonable and paid from the Minnesota manufactured home new text end 2.21 new text begin relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with new text end 2.22 new text begin decision-making authority to resolve any questions or disputes regarding any contributions new text end 2.23 new text begin or disbursements to and from the Minnesota manufactured home relocation trust fund by new text end 2.24 new text begin either the manufactured home park owner or the manufactured home owners. If the parties new text end 2.25 new text begin cannot agree on a neutral third party, the municipality will make a determination. new text end 2.26    Sec. 3. Minnesota Statutes 2006, section 327C.095, is amended by adding a 2.27subdivision to read: 2.28     new text begin Subd. 12. new text end new text begin Payment to the Minnesota manufactured home relocation trust fund. new text end 2.29     new text begin (a) If a manufactured home owner is required to move due to the conversion of all or a new text end 2.30 new text begin portion of a manufactured home park to another use, the closure of a park, or cessation new text end 2.31 new text begin of use of the land as a manufactured home park, the manufactured park owner shall, new text end 2.32 new text begin upon the change in use, pay to the commissioner of finance for deposit in the Minnesota new text end 2.33 new text begin manufactured home relocation trust fund under section 462A.40, the lesser amount of the new text end 2.34 new text begin actual costs of moving or purchasing the manufactured home approved by the neutral new text end 2.35 new text begin third party and paid by the Minnesota Housing Finance Agency under subdivision 13, new text end 3.1 new text begin paragraph (a) or (e), or $3,250 for each single section manufactured home, and $6,000 for new text end 3.2 new text begin each multisection manufactured home, for which a manufactured home owner has made new text end 3.3 new text begin application for payment of relocation costs under subdivision 13, paragraph (c). The new text end 3.4 new text begin manufactured home park owner shall make payments required under this section to the new text end 3.5 new text begin Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice new text end 3.6 new text begin from the neutral third party. new text end 3.7     new text begin (b) A manufactured home park owner is not required to make the payment prescribed new text end 3.8 new text begin under paragraph (a), nor is a manufactured home owner entitled to compensation under new text end 3.9 new text begin subdivision 13, paragraph (a) or (e), if: new text end 3.10     new text begin (1) the manufactured home park owner relocates the manufactured home owner to new text end 3.11 new text begin another space in the manufactured home park or to another manufactured home park at new text end 3.12 new text begin the park owner's expense; new text end 3.13     new text begin (2) the manufactured home owner is vacating the premises and has informed the new text end 3.14 new text begin manufactured home park owner or manager of this prior to the mailing date of the closure new text end 3.15 new text begin statement under subdivision 1; new text end 3.16     new text begin (3) a manufactured home owner has abandoned the manufactured home, or the new text end 3.17 new text begin manufactured home owner is not current on the monthly lot rental, personal property new text end 3.18 new text begin taxes, or has failed to pay the annual $12 payments to the Minnesota manufactured home new text end 3.19 new text begin relocation trust fund when due; new text end 3.20     new text begin (4) the manufactured home owner has a pending eviction action for nonpayment of new text end 3.21 new text begin lot rental amount under section 327C.09, which was filed against the manufactured home new text end 3.22 new text begin owner prior to the mailing date of the closure statement under subdivision 1, and the writ new text end 3.23 new text begin of recovery has been ordered by the district court; new text end 3.24     new text begin (5) the conversion of all or a portion of a manufactured home park to another use, new text end 3.25 new text begin the closure of a park, or cessation of use of the land as a manufactured home park is the new text end 3.26 new text begin result of a taking or exercise of the power of eminent domain by a governmental entity new text end 3.27 new text begin or public utility; or new text end 3.28     new text begin (6) the owner of the manufactured home is not a resident of the manufactured home new text end 3.29 new text begin park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home new text end 3.30 new text begin is a resident, but came to reside in the manufactured home park after the mailing date of new text end 3.31 new text begin the closure statement under subdivision 1. new text end 3.32     new text begin (c) Owners of manufactured homes who rent lots in a manufactured home park shall new text end 3.33 new text begin make annual payments to the park owner, to be deposited in the Minnesota manufactured new text end 3.34 new text begin home relocation trust fund under section 462A.40, in the amount of $12 per year, per new text end 3.35 new text begin manufactured home, payable on August 15 of each year. On or before July 15 of each new text end 3.36 new text begin year, the commissioner of finance shall prepare and post on the department's Web site a new text end 4.1 new text begin generic invoice and cover letter explaining the purpose of the Minnesota manufactured new text end 4.2 new text begin home relocation trust fund, the obligation of each manufactured home owner to make an new text end 4.3 new text begin annual $12 payment into the fund, the due date, and the need to pay to the park owner for new text end 4.4 new text begin collection, and a warning, in 14-point font, that if the annual payments are not made when new text end 4.5 new text begin due, the manufactured home owner will not be eligible for compensation from the fund if new text end 4.6 new text begin the manufactured home park closes. The park owner shall receive, record, and commingle new text end 4.7 new text begin the payments and forward the payments to the commissioner of finance by September 15 new text end 4.8 new text begin of each year, with a summary by the park owner, certifying the name, address, and payment new text end 4.9 new text begin amount of each remitter, and noting the names and address of manufactured home owners new text end 4.10 new text begin who did not pay the $12 annual payment, sent to both the commissioner of finance and the new text end 4.11 new text begin commissioner of the Minnesota Housing Finance Agency. The commissioner of finance new text end 4.12 new text begin shall deposit the payments in the Minnesota manufactured home relocation trust fund. new text end 4.13     new text begin (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable new text end 4.14 new text begin by the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by new text end 4.15 new text begin action in a court of appropriate jurisdiction. new text end 4.16    Sec. 4. Minnesota Statutes 2006, section 327C.095, is amended by adding a 4.17subdivision to read: 4.18     new text begin Subd. 13. new text end new text begin Change in use, relocation expenses; payments by park owner. new text end new text begin (a) new text end 4.19 new text begin If a manufactured home owner is required to relocate due to the conversion of all or a new text end 4.20 new text begin portion of a manufactured home park to another use, the closure of a manufactured home new text end 4.21 new text begin park, or cessation of use of the land as a manufactured home park under subdivision new text end 4.22 new text begin 1, and the manufactured home owner complies with the requirements of this section, new text end 4.23 new text begin the manufactured home owner is entitled to payment from the Minnesota manufactured new text end 4.24 new text begin home relocation trust fund equal to the manufactured home owner's actual relocation new text end 4.25 new text begin costs for relocating the manufactured home to a new location within a 25-mile radius new text end 4.26 new text begin of the park that is being closed, up to a maximum of $4,000 for a single-section and new text end 4.27 new text begin $8,000 for a multisection manufactured home. The actual relocation costs must include new text end 4.28 new text begin the reasonable cost of taking down, moving, and setting up the manufactured home, new text end 4.29 new text begin including equipment rental, utility connection and disconnection charges, minor repairs, new text end 4.30 new text begin modifications necessary for transportation of the home, necessary moving permits and new text end 4.31 new text begin insurance, moving costs for any appurtenances, which meet applicable local, state, and new text end 4.32 new text begin federal building and construction codes. new text end 4.33     new text begin (b) A manufactured home owner is not entitled to compensation under paragraph (a) new text end 4.34 new text begin if the manufactured home park owner is not required to make a payment to the Minnesota new text end 4.35 new text begin manufactured home relocation trust fund under subdivision 12, paragraph (b). new text end 5.1     new text begin (c) Except as provided in paragraph (e), in order to obtain payment from the new text end 5.2 new text begin Minnesota manufactured home relocation trust fund, the manufactured home owner shall new text end 5.3 new text begin submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy new text end 5.4 new text begin to the park owner, an application for payment, which includes: new text end 5.5     new text begin (1) a copy of the closure statement under subdivision 1; new text end 5.6     new text begin (2) a copy of the contract with a moving or towing contractor, which includes the new text end 5.7 new text begin relocation costs for relocating the manufactured home; new text end 5.8     new text begin (3) a statement with supporting materials of any additional relocation costs as new text end 5.9 new text begin outlined in subdivision 1; new text end 5.10     new text begin (4) a statement certifying that none of the exceptions to receipt of compensation new text end 5.11 new text begin under subdivision 12, paragraph (b), apply to the manufactured home owner; new text end 5.12     new text begin (5) a statement from the manufactured park owner that the lot rental is current new text end 5.13 new text begin and that the annual $12 payments to the Minnesota manufactured home relocation trust new text end 5.14 new text begin fund have been paid when due; and new text end 5.15     new text begin (6) a statement from the county where the manufactured home is located certifying new text end 5.16 new text begin that personal property taxes for the manufactured home are paid through the end of that new text end 5.17 new text begin year. new text end 5.18     new text begin (d) If the neutral third party has acted reasonably and does not approve or deny new text end 5.19 new text begin payment within 45 days after receipt of the information set forth in paragraph (c), the new text end 5.20 new text begin payment is deemed approved. Upon approval and request by the neutral third party, new text end 5.21 new text begin the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 new text end 5.22 new text begin percent of the contract price payable to the mover and towing contractor for relocating new text end 5.23 new text begin the manufactured home in the amount of the actual relocation cost, plus a check to the new text end 5.24 new text begin home owner for additional certified costs associated with third-party vendors, that were new text end 5.25 new text begin necessary in relocating the manufactured home. The moving or towing contractor shall new text end 5.26 new text begin receive 50 percent upon execution of the contract and 50 percent upon completion of new text end 5.27 new text begin the relocation and approval by the manufactured home owner. The moving or towing new text end 5.28 new text begin contractor may not apply the funds to any other purpose other than relocation of the new text end 5.29 new text begin manufactured home as provided in the contract. A copy of the approval must be forwarded new text end 5.30 new text begin by the neutral third party to the park owner with an invoice for payment of the amount new text end 5.31 new text begin specified in subdivision 12, paragraph (a). new text end 5.32     new text begin (e) In lieu of collecting a relocation payment from the Minnesota manufactured new text end 5.33 new text begin home relocation trust fund under paragraph (a), the manufactured home owner may collect new text end 5.34 new text begin an amount from the fund after reasonable efforts to relocate the manufactured home new text end 5.35 new text begin have failed due to the age or condition of the manufactured home, or because there are new text end 5.36 new text begin no manufactured home parks willing or able to accept the manufactured home within a new text end 6.1 new text begin 25-mile radius. A manufactured home owner may tender title of the manufactured home in new text end 6.2 new text begin the manufactured home park to the manufactured home park owner, and collect an amount new text end 6.3 new text begin to be determined by an independent appraisal. The appraiser must be agreed to by both the new text end 6.4 new text begin manufactured home park owner and the manufactured home owner. The amount that may new text end 6.5 new text begin be reimbursed under the fund is a maximum of $5,000 for a single-section, and $9,000 new text end 6.6 new text begin for a multisection manufactured home. The manufactured home owner shall deliver to new text end 6.7 new text begin the manufactured home park owner the current certificate of title to the manufactured new text end 6.8 new text begin home duly endorsed by the owner of record, and valid releases of all liens shown on the new text end 6.9 new text begin certificate of title, and a statement from the county where the manufactured home is new text end 6.10 new text begin located evidencing that the personal property taxes have been paid. The manufactured new text end 6.11 new text begin home owner's application for funds under this paragraph must include a document new text end 6.12 new text begin certifying that the manufactured home cannot be relocated, that the lot rental is current, new text end 6.13 new text begin that the annual $12 payments to the Minnesota manufactured home relocation trust fund new text end 6.14 new text begin have been paid when due, that the manufactured home owner has chosen to tender title new text end 6.15 new text begin under this section, and that the park owner agrees to make a payment to the commissioner new text end 6.16 new text begin of finance in the amount established in subdivision 12, paragraph (a), less any documented new text end 6.17 new text begin costs submitted to the neutral third party, required for demolition and removal of the new text end 6.18 new text begin home, and any debris or refuse left on the lot, not to exceed $1,000. The manufactured new text end 6.19 new text begin home owner must also provide a copy of the certificate of title endorsed by the owner of new text end 6.20 new text begin record, and certify to the neutral third party, with a copy to the park owner, that none of new text end 6.21 new text begin the exceptions to receipt of compensation under subdivision 12, paragraph (b), clauses (1) new text end 6.22 new text begin to (6), apply to the manufactured home owner, and that the home owner will vacate the new text end 6.23 new text begin home within 60 days after receipt of payment or the date of park closure, whichever is new text end 6.24 new text begin earlier, provided that the monthly lot rent is kept current. new text end 6.25     new text begin (f) The Minnesota Housing Finance Agency must make a determination of the new text end 6.26 new text begin amount of payment a manufactured home owner would have been entitled to under a new text end 6.27 new text begin local ordinance in effect on the effective date of this section. Notwithstanding paragraph new text end 6.28 new text begin (a), the manufactured home owner's compensation for relocation costs from the fund new text end 6.29 new text begin under section 462A.40, is the greater of the amount provided under this subdivision, or new text end 6.30 new text begin the amount under the local ordinance in effect on the effective date of this section, that new text end 6.31 new text begin is applicable to the manufactured home owner. Nothing in this paragraph is intended new text end 6.32 new text begin to increase the liability of the park owner. new text end 6.33     new text begin (g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall new text end 6.34 new text begin be liable to any person for recovery if the funds in the Minnesota manufactured home new text end 6.35 new text begin relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing new text end 7.1 new text begin Finance Agency shall keep a record of the time and date of its approval of payment to a new text end 7.2 new text begin claimant. new text end 7.3     new text begin (h) The agency shall report to the chairs of the senate Finance Committee and new text end 7.4 new text begin house of representatives Ways and Means Committee by January 15 of each year on new text end 7.5 new text begin the Minnesota manufactured home relocation trust fund, including the account balance, new text end 7.6 new text begin payments to claimants, the amount of any advances to the fund, and the amount of any new text end 7.7 new text begin insufficiencies encountered during the previous calendar year. If sufficient funds become new text end 7.8 new text begin available, the Minnesota Housing Finance Agency shall pay the manufactured home new text end 7.9 new text begin owner whose unpaid claim is the earliest by time and date of approval. new text end 7.10    Sec. 5. Minnesota Statutes 2006, section 327C.095, is amended by adding a 7.11subdivision to read: 7.12     new text begin Subd. 14. new text end new text begin Payment adjustment for smaller manufactured home parks. new text end new text begin The total new text end 7.13 new text begin contribution to the fund under section 462A.40 paid by the park owner under subdivision new text end 7.14 new text begin 12, paragraph (a), must not exceed 20 percent of the sale price, or if no sale price is new text end 7.15 new text begin available, the assessed value of the manufactured home park, except that if the sale price, new text end 7.16 new text begin or, if there is no sale price, the assessed value, is: new text end 7.17     new text begin (1) less than $100,000, the manufactured home park owner's contribution to the fund new text end 7.18 new text begin must not exceed five percent of the sale price of the manufactured home park; new text end 7.19     new text begin (2) less than $200,000, the owner's contribution to the fund must not exceed eight new text end 7.20 new text begin percent of the sale price of the manufactured home park; new text end 7.21     new text begin (3) less than $300,000, the owner's contribution to the fund must not exceed ten new text end 7.22 new text begin percent of the sale price of the manufactured home park; and new text end 7.23     new text begin (4) less than $500,000, the owner's contribution to the fund must not exceed 15 new text end 7.24 new text begin percent of the sale price of the manufactured home park. new text end 7.25    Sec. 6. Minnesota Statutes 2006, section 327C.095, is amended by adding a 7.26subdivision to read: 7.27     new text begin Subd. 15. new text end new text begin Preemption of local ordinances. new text end new text begin Sections 327C.095, subdivisions 1, 4, new text end 7.28 new text begin and 12 to 16; 462A.21, subdivision 31; and 462A.40 preempt and supersede a township, new text end 7.29 new text begin county, or statutory or home rule charter city ordinance relating to the relocation or buyout new text end 7.30 new text begin payments paid due to a change of use or closure of manufactured home communities. A new text end 7.31 new text begin township, county, or statutory or home rule charter city must not adopt an ordinance new text end 7.32 new text begin requiring more compensation by the manufactured home park owners or its purchaser new text end 7.33 new text begin than what is provided for in this statute. new text end 8.1    Sec. 7. Minnesota Statutes 2006, section 462A.21, is amended by adding a subdivision 8.2to read: 8.3     new text begin Subd. 31. new text end new text begin Manufactured housing relocation trust fund. new text end new text begin The agency may spend new text end 8.4 new text begin money for the purposes of sections 327C.095, subdivisions 12 and 13; and 462A.40 new text end 8.5 new text begin and may pay the costs and expenses necessary and incidental to the development and new text end 8.6 new text begin operation of the fund under section 462A.40. new text end 8.7    Sec. 8. new text begin [462A.40] MINNESOTA MANUFACTURED HOME RELOCATION new text end 8.8 new text begin TRUST FUND. new text end 8.9     new text begin Subdivision 1. new text end new text begin Establishment of fund. new text end new text begin The Minnesota manufactured home new text end 8.10 new text begin relocation trust fund is established as a separate account in the housing development new text end 8.11 new text begin fund. The agency may use the money from the Minnesota manufactured home relocation new text end 8.12 new text begin trust fund to make payments to manufactured home owners under section 327C.095, new text end 8.13 new text begin subdivision 13, paragraphs (a) and (e). All interest earned from the investment or new text end 8.14 new text begin deposit of money in the trust fund must be deposited in the trust fund. The Minnesota new text end 8.15 new text begin manufactured home relocation trust fund account shall consist of: new text end 8.16     new text begin (1) payments collected from manufactured home park owners under section new text end 8.17 new text begin 327C.095, subdivision 12, paragraph (a), and subdivision 13, paragraph (e); new text end 8.18     new text begin (2) payments collected from manufactured home owners under section 327C.095, new text end 8.19 new text begin subdivision 12, paragraph (c); new text end 8.20     new text begin (3) interest earned on the money deposited into the trust fund; and new text end 8.21     new text begin (4) other appropriated funds. new text end 8.22     new text begin Subd. 2. new text end new text begin Expending funds. new text end new text begin The agency may expend the money in the Minnesota new text end 8.23 new text begin manufactured home relocation trust fund to the extent necessary to carry out the objectives new text end 8.24 new text begin of section 327C.095, subdivision 13, by making payments to manufactured home owners, new text end 8.25 new text begin or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a) new text end 8.26 new text begin and (e), and to pay the costs of administering the fund. Money in the fund is appropriated new text end 8.27 new text begin to the agency for these purposes and to the commissioner of finance to pay costs incurred new text end 8.28 new text begin by the commissioner of finance to administer the fund. new text end 8.29    Sec. 9. new text begin ADVANCES TO THE MINNESOTA MANUFACTURED HOME new text end 8.30 new text begin RELOCATION TRUST FUND. new text end 8.31     new text begin (a) The Minnesota Housing Finance Agency may advance money from state new text end 8.32 new text begin appropriations or other resources to the Minnesota manufactured home relocation trust new text end 8.33 new text begin fund established under Minnesota Statutes, section 462A.40, in the event that money in new text end 8.34 new text begin the Minnesota manufactured home relocation trust fund is insufficient to pay the amounts new text end 9.1 new text begin claimed under Minnesota Statutes, section 327.095, subdivision 13. This paragraph new text end 9.2 new text begin sunsets on June 30, 2009. new text end 9.3     new text begin (b) The Minnesota Housing Finance Agency shall be reimbursed from the Minnesota new text end 9.4 new text begin manufactured home relocation trust fund for any money advanced by the agency under new text end 9.5 new text begin paragraph (a) to the fund. Applications for payment to manufactured home owners shall new text end 9.6 new text begin be paid before reimbursement of money advanced by the agency to the fund. new text end 9.7    Sec. 10. new text begin EFFECTIVE DATE. new text end 9.8     new text begin Sections 1 to 9 are effective the day following final enactment. Section 6 does new text end 9.9 new text begin not apply to proceedings initiated before the effective date under a local ordinance that new text end 9.10 new text begin provides for compensation for manufactured home owners for the closure or relocation new text end 9.11 new text begin of a manufactured home park, if final action in the proceedings is completed by August new text end 9.12 new text begin 1, 2007. new text end