Minnesota Legislature
HF 1301
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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A bill for an act
relating to housing; establishing a resident right of refusal when a manufactured
home park is being sold; amending Minnesota Statutes 2006, sections 327C.095,
subdivisions 6, 7, 9; 327C.096; repealing Minnesota Statutes 2006, section
327C.095, subdivision 8.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 327C.095, subdivision 6, is amended to
read:
Subd. 6.
Intent to convert use of park at time of purchasenew text begin ; resident right of first
refusalnew text end .
new text begin (a)new text end Before the execution of an agreement to purchase a manufactured home park,
the purchaser must notify the park owner, in writing, if the purchaser intends to close the
manufactured home park or convert it to another use deleted text begin within one year of the execution of
the agreementdeleted text end . The park owner shall provide a resident of each manufactured home with a
deleted text begin 45-daydeleted text end new text begin 90-day new text end written notice of the purchaser's intent to close the park or convert it to
another usenew text begin , and offer the park for sale to the residentsnew text end . The notice must state that the park
owner will provide information on the cash price and the terms and conditions of the
purchaser's offer to residents requesting the information. The notice must be sent by first
class mail to a resident of each manufactured home in the park. The notice period begins
on the postmark date affixed to the notice and ends deleted text begin 45deleted text end new text begin 90 new text end days after it begins.
new text begin (b)new text end During the notice period required in this subdivision, new text begin the following shall have
the right to purchase the park by meeting the cash price and executing an agreement
to purchase the park for the purpose of keeping the park as a manufactured housing
community:
new text end
new text begin (1)new text end the owners of at least 51 percent of the manufactured homes in the park deleted text begin ordeleted text end new text begin ;new text end
new text begin (2)new text end a nonprofit organization which has the written permission of the owners of at
least 51 percent of the manufactured homes in the park to represent them in the acquisition
of the park deleted text begin shall have the right to meet the cash price and execute an agreement to purchase
the park for the purposes of keeping the park as a manufactured housing communitydeleted text end new text begin ; or
new text end
new text begin (3) a resident-owned cooperative formed under either chapter 308A or 308B, unless
a majority of the residents object, in writing, to a conversion under either chapter 308A or
308B within 30 days after receipt of notice of an attempt to convert to a cooperativenew text end .
new text begin (c)new text end The park owner must accept the offer if it meets the cash price and the same
terms and conditions set forth in the purchaser's offer except that the seller is not obligated
to provide owner financing. For purposes of this section, cash price means the cash price
offer or equivalent cash offer as defined in section 500.245, subdivision 1, paragraph (d).
new text begin
(d) Proceeds from the sale of a manufactured home park to the owners, a nonprofit,
or a cooperative under this subdivision are exempt from state taxes on capital gains as
imposed by chapter 290. A nonprofit or cooperative is exempt from state taxes or capital
gains only if it covenants to maintain the property as a manufactured home community
for a period of at least 15 years. If a property purchased under this subdivision ceases
operation as a manufactured home community prior to the end of the 15-year restricted
use period, the nonprofit or cooperative who purchased the property shall be responsible
for paying the state taxes on capital gains as imposed by chapter 290 that would have been
paid by the park owner, but for this section, together with a penalty to be determined
by the commissioner of revenue.
new text end
Sec. 2.
Minnesota Statutes 2006, section 327C.095, subdivision 7, is amended to read:
Subd. 7.
Intent to new text begin close ornew text end convert use of park after purchase.
new text begin (a)new text end If the
purchaser of a manufactured home park decides to new text begin close ornew text end convert the park to another use
deleted text begin within one yeardeleted text end new text begin at any timenew text end after the purchase of the park, the purchaser must offer the
park for purchase by the residents of the parknew text begin at a cash price equal to the tax assessed or
market appraised value of the property as determined by an appraisal conducted by an
independent appraisal agreed upon by both partiesnew text end . For purposes of this subdivision, the
date of purchase is the date of the transfer of the title to the purchaser.
new text begin (b)new text end The purchaser must provide a resident of each manufactured home with a
written notice of the intent to close the park deleted text begin and all of the owners of at least 51 percent
of the manufactured homes in the park or a nonprofit organization which has the written
permission of the owners of at least 51 percent of the manufactured homes in the park
to represent them in the acquisition of the parkdeleted text end new text begin . The following new text end shall have deleted text begin 45deleted text end new text begin 90new text end days to
execute an agreement for the purchase of the park at a cash price equal to the original
purchase price paid by the purchaser plus any documented expenses relating to the
acquisition and improvement of the park property, together with any increase in value
due to appreciation of the parknew text begin :
new text end
new text begin
(1) all of the owners of at least 51 percent of the manufactured homes in the park;
new text end
new text begin
(2) a nonprofit organization which has the written permission of the owners of at
least 51 percent of the manufactured home in the park to represent them in the acquisition
of the park; or
new text end
new text begin (3) a resident-owned cooperative formed under either chapter 308A or 308B, unless
a majority of the residents object, in writing, to a conversion under either chapter 308A or
308B within 30 days after receipt of notice of an attempt to convert to a cooperativenew text end .
new text begin (c)new text end The purchaser must execute the purchase agreement at the price specified in this
subdivision and pay the cash price within 90 days of the date of the purchase agreement.
The notice must be sent by first class mail to a resident of each manufactured home in
the park. The notice period begins on the postmark date affixed to the notice and ends
deleted text begin 45deleted text end new text begin 90new text end days after it begins.
new text begin
(d) Proceeds from the sale of a manufactured home park to the owners, a nonprofit,
or a cooperative under this subdivision are exempt from state taxes on capital gains as
imposed by chapter 290. A nonprofit or cooperative is exempt from state taxes or capital
gains only if it covenants to maintain the property as a manufactured home community
for a period of at least 15 years. If a property purchased under this subdivision ceases
operation as a manufactured home community prior to the end of the 15-year restricted
use period, the nonprofit or cooperative who purchased the property shall be responsible
for paying the state taxes on capital gains as imposed by chapter 290 that would have
otherwise been paid by the park owner, together with a penalty to be determined by the
commissioner of revenue.
new text end
Sec. 3.
Minnesota Statutes 2006, section 327C.095, subdivision 9, is amended to read:
Subd. 9.
Effect of noncompliance.
deleted text begin If a manufactured home park is finally sold or
converted to another use in violation of subdivision 6 or 7, the residents do not have any
continuing right to purchase the park as a result of that sale or conversion.deleted text end A violation
of subdivision 6 or 7 is subject to section 8.31, except that relief shall be limited so that
questions of marketability of title shall not be affected.
Sec. 4.
Minnesota Statutes 2006, section 327C.096, is amended to read:
327C.096 NOTICE OF SALE new text begin AND RIGHT OF FIRST REFUSALnew text end .
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
manufactured home park to the public through advertising in a newspaper or by listing
the park with a realtor licensed by the Department of Commerce, the owner must provide
concurrent written notice to a resident of each manufactured home in the park that the
park is being offered for sale. Written notice provided once within a one-year period
satisfies the requirement under this section. deleted text begin The notice provided by the park owner to a
resident of each manufactured home does not grant any property rights in the park and is
for informational purposes only. This section does not apply in the case of a taking by
eminent domain, a transfer by a corporation to an affiliate, a transfer by a partnership to
one or more of its partners, or a sale or transfer to a person who would be an heir of
the owner if the owner were to die intestate. If at any time a manufactured home park
owner receives an unsolicited bona fide offer to purchase the park that the owner intends
to consider or make a counter offer to, the owner is under no obligation to notify the
residents as required under this section.
deleted text end
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
shall make a final unconditional acceptance of any offer for the sale or transfer of a
manufactured home park without first giving to each park resident 90-days' notice:
new text end
new text begin
(1) that the owner intends to sell the manufactured home park; and
new text end
new text begin
(2) of the price, terms, and conditions of an acceptable offer the park owner has
received to sell the park or the price, terms, and conditions for which the park owner
intends to sell the park.
new text end
new text begin
The notice must include a copy of the signed written offer which sets forth a
description of the property to be purchased and the price, terms, and conditions of the
acceptable offer.
new text end
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,
the manufactured home park owner must offer the park for purchase by the residents of
the park as a cooperative under chapter 308A or 308B or a nonprofit organization with
the written permission of the owners of at least 51 percent of the manufactured home
in the park to represent them in the acquisition of the park. During the notice period,
the cooperative or nonprofit shall have the right to meet the cash price and execute an
agreement to purchase the park for the purposes of keeping the park as a manufactured
housing community. Proceeds from the sale of a manufactured home park to a cooperative
or nonprofit under this subdivision are exempt from state taxes on capital gains as imposed
by chapter 290, provided the purchasing entity agrees to maintain the property as a
manufactured home community for a period of at least 15 years. If a property purchased
under this subdivision ceases operation as a manufactured home community prior to the
end of the 15-year restricted use period, the cooperative or nonprofit entity who purchased
the property shall be responsible for paying the state taxes on capital gains as imposed by
chapter 290 that would have otherwise been paid by the park owner.
new text end
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
domain, a transfer by a corporation to an affiliate, a transfer by a partnership to one or
more of its partners, or a sale or transfer to a person who would be an heir of the owner if
the owner were to die intestate.
new text end
Sec. 5. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2006, section 327C.095, subdivision 8,
new text end
new text begin
is repealed.
new text end