HF 1068

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to real property; Minnesota Common Interest
Ownership Act; requiring local government approval of
subdivisions or conversions of shoreland; amending
Minnesota Statutes 2004, section 515B.1-106.

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

Section 1.

Minnesota Statutes 2004, section 515B.1-106, is
amended to read:

515B.1-106 APPLICABILITY OF LOCAL REQUIREMENTS.

(a) Except as provided in subsections (b) and (c), a
zoning, subdivision, building code, or other real estate use
law, ordinance, charter provision, or regulation may not
directly or indirectly prohibit the common interest community
form of ownership or impose any requirement upon a common
interest community, upon the creation or disposition of a common
interest community or upon any part of the common interest
community conversion process which it would not impose upon a
physically similar development under a different form of
ownership. Otherwise, no provision of this chapter invalidates
or modifies any provision of any zoning, subdivision, building
code, or other real estate use law, ordinance, charter
provision, or regulation. new text begin Before recording any CIC or amended
CIC plat subdividing or converting shoreland, as defined in
section 103F.205, subdivision 4, a land owner must submit the
proposed subdivision or conversion to the local government where
the unit is located for review and approval for compliance with
the local government's ordinances regulating shoreland.
new text end

(b) Subsection (a) shall not apply to any ordinance, rule,
regulation, charter provision or contract provision relating to
the financing of housing construction, rehabilitation, or
purchases provided by or through a housing finance program
established and operated pursuant to state or federal law by a
state or local agency or local unit of government.

(c) A statutory or home rule charter city, pursuant to an
ordinance or charter provision establishing standards to be
applied uniformly within its jurisdiction, may prohibit or
impose reasonable conditions upon the conversion of buildings to
the common interest community form of ownership only if there
exists within the city a significant shortage of suitable rental
dwellings available to low and moderate income individuals or
families or to establish or maintain the city's eligibility for
any federal or state program providing direct or indirect
financial assistance for housing to the city. Prior to the
adoption of an ordinance pursuant to the authority granted in
this subsection, the city shall conduct a public hearing. Any
ordinance or charter provision adopted pursuant to this
subsection shall not apply to any existing or proposed
conversion common interest community (i) for which a bona fide
loan commitment for a consideration has been issued by a lender
and is in effect on the date of adoption of the ordinance or
charter provision, or (ii) for which a notice of conversion or
intent to convert required by section 515B.4-111, containing a
termination of tenancy, has been given to at least 75 percent of
the tenants and subtenants in possession prior to the date of
adoption of the ordinance or charter provision.

(d) For purposes of providing marketable title, a statement
in the declaration that the common interest community is not
subject to an ordinance or that any conditions required under an
ordinance have been complied with shall be prima facie evidence
that the common interest community was not created in violation
of the ordinance.

(e) A violation of an ordinance or charter provision
adopted pursuant to the provisions of subsection (b) or (c)
shall not affect the validity of a common interest community.
This subsection shall not be construed to in any way limit the
power of a city to enforce the provisions of an ordinance or
charter provision adopted pursuant to subsection (b) or (c).

(f) Any ordinance or charter provision enacted hereunder
shall not be effective for a period exceeding 18 months.