HF 2045

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/09/2021 11:42am

A bill for an act
relating to housing; limiting rent increases in manufactured home parks; providing
a civil cause of action for residents of manufactured home parks; appropriating
money for a manufactured home park cooperative purchase program; amending
Minnesota Statutes 2020, sections 327C.06, subdivision 3; 327C.15.

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

Section 1.

Minnesota Statutes 2020, section 327C.06, subdivision 3, is amended to read:

Subd. 3.

Rent increases limited.

A park owner may impose only deleted text begin two deleted text end new text begin one new text end rent deleted text begin increases deleted text end new text begin
increase new text end on a resident in any 12-month period. new text begin A park owner may only impose a rent increase
up to three percent of the amount of rent owed for the calendar year. For the purposes of
determining the amount of rent owed for the calendar year, the park owner must use the
annual rent owed for a calendar year as of January 1 each year.
new text end

Sec. 2.

Minnesota Statutes 2020, section 327C.15, is amended to read:

327C.15 REMEDIES; PENALTIES; ENFORCEMENT.

new text begin (a) new text end Any violation of sections 327C.01 to 327C.14 is a violation of a law referred to in
section 8.31, subdivision 1.

new text begin (b) A resident of a manufactured home park has a cause of action against the owner of
a manufactured home park for a violation of sections 327C.02 to 327C.06; 327C.07,
subdivision 1; 327C.096; 327C.10; or 327C.12 to 327C.14 for any actual damages caused
by the violation, and for a civil penalty awarded to the plaintiff for each violation in an
amount up to $500, as well as costs and fees related to commencing the action. A claim
under this section may be filed in conciliation court.
new text end

Sec. 3. new text begin APPROPRIATION; MANUFACTURED HOME PARK COOPERATIVE
PURCHASE PROGRAM.
new text end

new text begin (a) $1,000,000 in fiscal year 2022 and $1,000,000 in fiscal year 2023 are appropriated
from the general fund to the commissioner of the Minnesota Housing Finance Agency to
provide grants for an assistance program to assist residents of manufactured home parks in
the purchase of parks to create a cooperative owned manufactured home park. The funding
under this section may be used for grants to nonprofit organizations to assist manufactured
home park residents in organizing and purchasing manufactured home parks, and for grants
to provide down payment assistance to residents to purchase manufactured home parks.
new text end

new text begin (b) The agency may develop criteria to evaluate grants for nonprofit organizations to
assist manufactured home park residents in organizing for the purpose of purchasing the
park they reside in, and for the down payment assistance awarded to representatives acting
on behalf of residents for the purchase of a manufactured home park.
new text end

new text begin (c) Grants provided to park residents must be created for the purpose of affordable
housing preservation. A representative who purchases a park using funds provided by this
section shall maintain the property for a period of at least 50 years following the closing
date of the purchase as:
new text end

new text begin (1) a manufactured home park;
new text end

new text begin (2) a combination of manufactured homes and nonmanufactured home single-dwelling
units contained in one-family, two-family, or multifamily dwellings affordable for
low-income households; or
new text end

new text begin (3) all nonmanufactured home single-dwelling units contained in one-family, two-family,
or multifamily dwellings affordable for low-income households.
new text end

new text begin (d) The deed to the representative must contain a covenant running with the land that
requires the property to meet at least one of the conditions specified in paragraph (a) for at
least 50 years from the date of the deed transfer.
new text end

new text begin (e) For the purposes of this section, the terms "manufactured home," "manufactured
home park," "park," "park owner," "representative acting on behalf of residents," "resident,"
and "resident organization" have the meanings given in section 327C.01. For the purposes
of this section, "affordable" has the meaning given in Code of Federal Regulations, title 24,
section 81.15, and "low-income households" has the meaning given in Code of Federal
Regulations, title 24, section 570.3.
new text end