SF 1450

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/04/2025 09:27 a.m.

A bill for an act
relating to housing; requiring attorney general notice for the transfer of
manufactured home park ownership or control to a private equity company;
identifying prohibited practices for a private equity company acquiring ownership
or control of a manufactured home park; providing attorney general enforcement;
proposing coding for new law in Minnesota Statutes, chapter 327C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [327C.098] ACQUISITION OF CERTAIN MANUFACTURED HOME
PARKS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Private equity company" means an investor or group of investors who primarily
engage in the raising or returning of capital and who invests, develops, or disposes of
specified assets. Private equity company includes publicly or nonpublicly traded entities,
real estate investment trusts, and any investment firm that buys and manages private
companies to make a profit.
new text end

new text begin (c) "Ownership or control" means the assumption of governance or the acquisition of
an ownership interest, or direct or indirect control by a private equity company over the
operations of a manufactured home park through any means, including but not limited to a
purchase, lease, transfer, exchange, option, conveyance, creation of a joint venture, or any
other manner of acquisition of assets, governance, an ownership interest, or direct or indirect
control of a manufactured home park.
new text end

new text begin (d) "Real estate investment trust" has the meaning given in United States Code, title 26,
section 856.
new text end

new text begin Subd. 2. new text end

new text begin Notice of transfer of ownership and control. new text end

new text begin (a) A park owner must provide
written notice to the attorney general of the intent to transfer ownership or control of the
manufactured home park to a private equity company 120 days prior to the transfer of
ownership or control.
new text end

new text begin (b) Together with the notice, the private equity company seeking to acquire ownership
or control of the manufactured home park shall provide the attorney general with the
following information:
new text end

new text begin (1) the names of each individual with an interest in the company and the percentage of
interest each individual holds in the company;
new text end

new text begin (2) the complete corporate structure of the company;
new text end

new text begin (3) the names of each individual holding, and the percent of interest held, in any affiliate,
subsidiary, or otherwise related entity with which the company has a contract to provide
goods or services that will be used in the operation or maintenance of the manufactured
home park or that will be provided to residents; and
new text end

new text begin (4) any other information the attorney general may require.
new text end

new text begin Subd. 3. new text end

new text begin Prohibited practices. new text end

new text begin A private equity company acquiring ownership or control
of a manufactured home park is prohibited from engaging in any act, practice, or course of
business that:
new text end

new text begin (1) strips assets from the manufactured home park or otherwise undermines the
infrastructural integrity of the park;
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new text begin (2) engages in self-dealing;
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new text begin (3) fails to maintain the park's infrastructure, if it is adequate, or fails to improve the
park's infrastructure if it is deteriorating, in disrepair, or needs upgrading, including but not
limited to the park's water infrastructure;
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new text begin (4) increases rents in any one year by more than the Consumer Price Index published
by the United States Department of Labor for the 12 months preceding the month in which
the increase became effective without a concomitant increase in costs;
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new text begin (5) results in an adverse impact on the health, safety, and wellbeing of the residents of
the manufactured home park;
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new text begin (6) results in a reduction in the quality of services or amenities provided to the residents;
or
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new text begin (7) violates any provisions of this chapter or chapter 327B.
new text end

new text begin Subd. 4. new text end

new text begin Attorney general enforcement. new text end

new text begin A violation of this section is an unfair and
unconscionable practice in violation of section 325F.69, subdivision 1. The attorney general
may enforce this section under section 8.31.
new text end