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Minnesota Legislature

Office of the Revisor of Statutes

HF 1887

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 01:34pm

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

Bill Text Versions

Engrossments
Introduction Posted on 01/13/2014

Current Version - as introduced

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A bill for an act
relating to manufactured homes; park lot rentals; making changes to the
manufactured home relocation trust fund; amending Minnesota Statutes 2012,
section 327C.095, subdivisions 12, 13.

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

Section 1.

Minnesota Statutes 2012, section 327C.095, subdivision 12, is amended to
read:


Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a) If a manufactured home owner is required to move due to the conversion of all or a
portion of a manufactured home park to another use, the closure of a park, or cessation of
use of the land as a manufactured home park, the manufactured park owner shall, upon
the change in use, pay to the commissioner of management and budget for deposit in the
Minnesota manufactured home relocation trust fund under section 462A.35, the lesser
amount of the actual costs of moving or purchasing the manufactured home approved
by the neutral third party and paid by the Minnesota Housing Finance Agency under
subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured
home, and $6,000 for each multisection manufactured home, for which a manufactured
home owner has made application for payment of relocation costs under subdivision 13,
paragraph (c). The manufactured home park owner shall make payments required under
this section to the Minnesota manufactured home relocation trust fund within 60 days of
receipt of invoice from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at
the park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of
lot rental amount under section 327C.09, which was filed against the manufactured home
owner prior to the mailing date of the closure statement under subdivision 1, and the writ
of recovery has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use,
the closure of a park, or cessation of use of the land as a manufactured home park is the
result of a taking or exercise of the power of eminent domain by a governmental entity
or public utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1.

(c) If the unencumbered fund balance in the manufactured home relocation trust
fund is less than deleted text begin$1,000,000deleted text endnew text begin $5,000,000new text end as of June 30 of each year, the commissioner of
management and budget shall assess each manufactured home park owner by mail the
total amount of $12 for each licensed lot in their park, payable on or before September 15
of that year. The commissioner of management and budget shall deposit any payments in
the Minnesota manufactured home relocation trust fund. On or before July 15 of each
year, the commissioner of management and budget shall prepare and distribute to park
owners a letter explaining whether funds are being collected for that year, information
about the collection, an invoice for all licensed lots, and a sample form for the park owners
to collect information on which park residents have been accounted for. If assessed under
this paragraph, the park owner may recoup the cost of the $12 assessment as a lump
sum or as a monthly fee of no more than $1 collected from park residents together with
monthly lot rent as provided in section 327C.03, subdivision 6. Park owners may adjust
payment for lots in their park that are vacant or otherwise not eligible for contribution to
the trust fund under section 327C.095, subdivision 12, paragraph (b), and deduct from the
assessment accordingly.

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

Sec. 2.

Minnesota Statutes 2012, section 327C.095, subdivision 13, is amended to read:


Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a)
If a manufactured home owner is required to relocate due to the conversion of all or a
portion of a manufactured home park to another use, the closure of a manufactured home
park, or cessation of use of the land as a manufactured home park under subdivision 1,
and the manufactured home owner complies with the requirements of this section, the
manufactured home owner is entitled to payment from the Minnesota manufactured home
relocation trust fund equal to the manufactured home owner's actual relocation costs for
relocating the manufactured home to a new location within a 25-mile radius of the park
that is being closed, up to a maximum of deleted text begin$4,000deleted text endnew text begin $6,000new text end for a single-section and deleted text begin$8,000
deleted text endnew text begin $12,000new text end for a multisection manufactured home. The actual relocation costs must include
the reasonable cost of taking down, moving, and setting up the manufactured home,
including equipment rental, utility connection and disconnection charges, minor repairs,
modifications necessary for transportation of the home, necessary moving permits and
insurance, moving costs for any appurtenances, which meet applicable local, state, and
federal building and construction codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a)
if the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the
Minnesota manufactured home relocation trust fund, the manufactured home owner shall
submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy
to the park owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as
outlined in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation
under subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current
and that the annual $12 payments to the Minnesota manufactured home relocation trust
fund have been paid when due; and

(6) a statement from the county where the manufactured home is located certifying
that personal property taxes for the manufactured home are paid through the end of that year.

(d) If the neutral third party has acted reasonably and does not approve or deny
payment within 45 days after receipt of the information set forth in paragraph (c), the
payment is deemed approved. Upon approval and request by the neutral third party,
the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50
percent of the contract price payable to the mover and towing contractor for relocating
the manufactured home in the amount of the actual relocation cost, plus a check to the
home owner for additional certified costs associated with third-party vendors, that were
necessary in relocating the manufactured home. The moving or towing contractor shall
receive 50 percent upon execution of the contract and 50 percent upon completion of
the relocation and approval by the manufactured home owner. The moving or towing
contractor may not apply the funds to any other purpose other than relocation of the
manufactured home as provided in the contract. A copy of the approval must be forwarded
by the neutral third party to the park owner with an invoice for payment of the amount
specified in subdivision 12, paragraph (a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured
home relocation trust fund under paragraph (a), the manufactured home owner may collect
an amount from the fund after reasonable efforts to relocate the manufactured home
have failed due to the age or condition of the manufactured home, or because there are
no manufactured home parks willing or able to accept the manufactured home within a
25-mile radius. A manufactured home owner may tender title of the manufactured home in
the manufactured home park to the manufactured home park owner, and collect an amount
to be determined by an independent appraisal. The appraiser must be agreed to by both the
manufactured home park owner and the manufactured home owner. new text beginIf the appraised market
value cannot be determined, the tax market value, averaged over a period of five years, can
be used as a substitute.
new text endThe amount that may be reimbursed under the fund is a maximum
of deleted text begin$5,000deleted text endnew text begin $7,000new text end for a single-section and deleted text begin$9,000deleted text endnew text begin $14,000new text end for a multisection manufactured
home. The manufactured home owner shall deliver to the manufactured home park owner
the current certificate of title to the manufactured home duly endorsed by the owner of
record, and valid releases of all liens shown on the certificate of title, and a statement from
the county where the manufactured home is located evidencing that the personal property
taxes have been paid. The manufactured home owner's application for funds under this
paragraph must include a document certifying that the manufactured home cannot be
relocated, that the lot rental is current, that the annual $12 payments to the Minnesota
manufactured home relocation trust fund have been paid when due, that the manufactured
home owner has chosen to tender title under this section, and that the park owner agrees to
make a payment to the commissioner of management and budget in the amount established
in subdivision 12, paragraph (a), less any documented costs submitted to the neutral third
party, required for demolition and removal of the home, and any debris or refuse left on the
lot, not to exceed $1,000. The manufactured home owner must also provide a copy of the
certificate of title endorsed by the owner of record, and certify to the neutral third party,
with a copy to the park owner, that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), clauses (1) to (6), apply to the manufactured home owner,
and that the home owner will vacate the home within 60 days after receipt of payment or the
date of park closure, whichever is earlier, provided that the monthly lot rent is kept current.

new text begin In the event that the owner is unable to locate the title to the manufactured home,
the owner of the home shall sign an affidavit setting forth: (1) the inability to locate the
title; (2) the home owner's desire to transfer ownership of the home to the park owner
for disposal purposes; and (3) the home owner's agreement to transfer ownership and
releasing the park owner from any liability for the home's eventual disposal.
new text end

(f) The Minnesota Housing Finance Agency must make a determination of the
amount of payment a manufactured home owner would have been entitled to under a local
ordinance in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured
home owner's compensation for relocation costs from the fund under section 462A.35, is
the greater of the amount provided under this subdivision, or the amount under the local
ordinance in effect on May 26, 2007, that is applicable to the manufactured home owner.
Nothing in this paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall
be liable to any person for recovery if the funds in the Minnesota manufactured home
relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing
Finance Agency shall keep a record of the time and date of its approval of payment to a
claimant.

(h) The agency shall report to the chairs of the senate Finance Committee and
house of representatives Ways and Means Committee by January 15 of each year on
the Minnesota manufactured home relocation trust fund, including the account balance,
payments to claimants, the amount of any advances to the fund, the amount of any
insufficiencies encountered during the previous calendar year, and any administrative
charges or expenses deducted from the trust fund balance. If sufficient funds become
available, the Minnesota Housing Finance Agency shall pay the manufactured home
owner whose unpaid claim is the earliest by time and date of approval.