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Minnesota Legislature

Office of the Revisor of Statutes

HF 1571

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 03/20/2019 12:26pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to housing; modifying the procedures for closing or modifying the use of
manufactured home parks; amending Minnesota Statutes 2018, sections 327C.01,
by adding a subdivision; 327C.095, subdivisions 6, 7, 9, 11; repealing Minnesota
Statutes 2018, section 327C.095, subdivision 8.

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

Section 1.

Minnesota Statutes 2018, section 327C.01, is amended by adding a subdivision
to read:


new text begin Subd. 8a. new text end

new text begin Representative acting on behalf of residents. new text end

new text begin "Representative acting on
behalf of residents" means a representative who is authorized to represent residents in the
purchase of property for the purposes of this chapter, and has gained that authorization by
obtaining the signature of support from at least one resident, as defined by section 327C.01,
subdivision 9, from at least 51 percent of the occupied homes in a manufactured home park.
The signature of a resident asserting that they are a resident of that manufactured home park
shall be presumptive evidence of such claim and shall be exclusive to only one representative
acting on behalf of residents.
new text end

Sec. 2.

Minnesota Statutes 2018, section 327C.095, subdivision 6, is amended to read:


Subd. 6.

Intent to convert use of park at time of purchase.

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 within one year of the execution of the agreement.new text begin If so,new text end the park owner
shall provide a resident of each manufactured home with a 45-day written notice of the
purchaser's intent to close the park or convert it to another usenew text begin and may not enter into a
purchase agreement for the sale of the park other than with a representative acting on behalf
of residents, until the 45 days have expired
new text end. The notice must state that the park owner willnew text begin
promptly
new text end 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 new text beginand made available in
alternative formats or translations if requested by a resident and the request is a reasonable
accommodation due to a disability of an adult resident or because there is not an adult
resident who is able to speak the language the notice is provided in
new text end. The notice period begins
on the postmark date affixed to the notice and ends 45 days after it begins. During the notice
period required in this subdivision, deleted text beginthe 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 park
deleted text endnew text begin a representative acting on behalf of residentsnew text end shall have the right tonew text begin
make an offer to
new text end meet the cash price and deleted text beginexecute an agreement to purchase the park for the
purposes of keeping the park as a manufactured housing community
deleted text endnew text begin to agree to material
terms and conditions set forth in the purchaser's offer
new text endnew text beginand to execute an agreement to purchase
the park for the purposes of keeping the park as a manufactured housing community
new text end. The
park owner must deleted text beginaccept the offer if it meetsdeleted text endnew text begin in good faith negotiate a purchase agreement
meeting
new text end 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 The purchase agreement must permit the representative
a commercially reasonable due diligence period with access by the representative to all
information reasonably necessary to make an informed decision regarding the purchase.
The representative may be required to enter into a confidentiality agreement regarding such
information.
new text end

new text begin (b) A representative acting on behalf of residents must obtain a bond for ten percent of
the offer price upon gaining the required number of signatures to represent the residents in
the purchase of a manufactured home park and must maintain the bond for six months. If
the representative acting on behalf of the residents is unable to complete the purchase, and
the original purchaser withdraws their offer during the 45-day period in paragraph (a), and
the manufactured home park is sold to another purchaser for a lower price within six months
of the notice to residents in paragraph (a), then the park owner will be compensated from
the bond for the difference between the offer made by the original purchaser and the actual
lower purchase price.
new text end

new text begin (c) In the event of a sale to a representative acting on behalf of residents, the
representative must certify to the commissioner of commerce that the property will be
preserved as a manufactured home park for ten years from the date of the sale.
new text end

Sec. 3.

Minnesota Statutes 2018, section 327C.095, subdivision 7, is amended to read:


Subd. 7.

deleted text beginIntent to convertdeleted text endnew text begin Conversion ofnew text end use of park after purchase.

If the deleted text beginpurchaserdeleted text end
new text begin residentsnew text end of a manufactured home park deleted text begindecides to convert the park to another use within
one year after the purchase of the park, the purchaser must offer the park for purchase by
the residents of the park
deleted text endnew text begin have not been provided the written notice of intent to close the park
required by subdivision 6, the purchaser may not provide residents with the notice required
by subdivision 1 until 12 months after the date of purchase
new text end. For purposes of this subdivision,
the date of purchase is the date of the transfer of the title to the purchaser. deleted text beginThe purchaser
must provide a resident of each manufactured home with a written notice of the intent to
close the park 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 park shall have 45 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 park. 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 45 days after it begins.
deleted text end

Sec. 4.

Minnesota Statutes 2018, section 327C.095, subdivision 9, is amended to read:


Subd. 9.

Effect of noncompliance.

If a manufactured home park is finally sold or
converted to another use in violation of subdivision 6 or 7, the residents deleted text begindo not have any
continuing right to purchase the park as a result of that sale or conversion. A violation of
subdivision 6 or 7 is subject to
deleted text endnew text begin have a right to any remedy provided innew text end section 8.31deleted text begin, exceptdeleted text end
deleted text begin that relief shall be limited so that questions of marketability of title shall not be affecteddeleted text end.

Sec. 5.

Minnesota Statutes 2018, section 327C.095, subdivision 11, is amended to read:


Subd. 11.

Affidavit of compliance.

After a park is sold, a deleted text beginpark owner or other person
with personal knowledge
deleted text endnew text begin bona fide purchaser acting in good faithnew text end may record an affidavit
with the county recorder or registrar of titles in the county in which the park is located
certifying compliance with subdivision 6 deleted text beginor 7deleted text end or that deleted text beginsubdivisionsdeleted text endnew text begin subdivisionnew text end 6 deleted text beginand 7 aredeleted text endnew text begin
is
new text end not applicable. The affidavit may be used as deleted text beginproof of the facts stated in the affidavit. A
person acquiring an interest in a park or a title insurer or attorney who prepares, furnishes,
or examines evidence of title may rely on the truth and accuracy of statements made in the
affidavit and is not required to inquire further as to the park owner's compliance with
subdivisions 6 and 7. When an affidavit is recorded, the right to purchase provided under
subdivisions 6 and 7 terminate, and if registered property, the registrar of titles shall delete
the memorials of the notice and affidavit from future certificates of title
deleted text endnew text begin presumptive evidence
of compliance
new text end.

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 327C.095, subdivision 8, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H1571-2

327C.095 PARK CLOSINGS.

Subd. 8.

Required filing of notice.

Subdivisions 6 and 7 apply to manufactured home parks upon which notice has been recorded with the county recorder or registrar of titles in the county where the manufactured home park is located. Any person may file the notice required under this subdivision with the county recorder or registrar of titles. The notice must be in the following form:

"MANUFACTURED HOME PARK NOTICE

THIS PROPERTY IS USED AS A MANUFACTURED HOME PARK

.......................................

PARK OWNER

.......................................

.......................................

.......................................

LEGAL DESCRIPTION OF PARK

.......................................

COOPERATIVE ASSOCIATION (IF APPLICABLE)"