HF 2381

as introduced - 94th Legislature (2025 - 2026) Posted on 03/17/2025 02:59pm

A bill for an act
relating to housing; providing standards for rent and utility payments, fees, and
charges in manufactured home parks; requiring certain safety inspections;
modifying provisions for sale of manufactured home parks; modifying penalties;
amending Minnesota Statutes 2024, sections 327C.015, subdivision 13; 327C.03,
subdivision 3; 327C.04, subdivision 1, by adding a subdivision; 327C.06,
subdivisions 1, 3; 327C.097; 327C.15; proposing coding for new law in Minnesota
Statutes, chapter 327C; repealing Minnesota Statutes 2024, section 327C.096.

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

Section 1.

Minnesota Statutes 2024, section 327C.015, subdivision 13, is amended to read:

Subd. 13.

Representative acting on behalf of residents.

"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 who is a homeowner-signatory
to the home's lot lease agreement as defined by subdivision 14, from deleted text begin at least 51 deleted text end new text begin greater than
50 new text end percent of the occupied homes in a manufactured home park. The signature of a resident
who is a signatory to the home's lot lease agreement asserting that they are a resident of that
manufactured home park shall be presumptive evidence of the claim that the representative
is authorized to act on behalf of the resident and shall be exclusive to only one representative
acting on behalf of residents.

Sec. 2.

Minnesota Statutes 2024, section 327C.03, subdivision 3, is amended to read:

Subd. 3.

Rent.

All periodic rental payments charged to residents by the park owner shall
be uniform throughout the park, except that a higher rent may be charged to a particular
resident due to the larger size or location of the lot, or the special services or facilities
furnished by the park. A park owner may charge a reasonable fee for delinquent rent where
the fee is provided for in the rental agreement new text begin , except in no case may the fee exceed eight
percent of the delinquent rent payment new text end . The fee shall be enforceable as part of the rent owed
by the resident. No park owner shall charge to a resident any fee, whether as part of or in
addition to the periodic rental payment, which is based on the number of persons residing
or staying in the resident's home, the number or age of children residing or staying in the
home, the number of guests staying in the home, the size of the home, the fact that the home
is temporarily vacant or the type of personal property used or located in the home. The park
owner may charge an additional fee for pets owned by the resident, but the fee may not
exceed $4 per pet per month. This subdivision does not prohibit a park owner from abating
all or a portion of the rent of a particular resident with special needs.

Sec. 3.

Minnesota Statutes 2024, section 327C.04, subdivision 1, is amended to read:

Subdivision 1.

Billing permitted.

A park owner who either provides utility service
directly to residents or who redistributes to residents utility service provided to the park
owner by a utility provider may charge the residents for that service, only if the charges
comply with this section. new text begin A park owner may not charge residents for costs of repairs by
utility providers or for costs imposed by utility providers for services provided in response
to reports of interruptions of utilities.
new text end

Sec. 4.

Minnesota Statutes 2024, section 327C.04, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Itemized billing required. new text end

new text begin A park owner must provide an itemized bill
separately that clearly labels each service or item charged to the resident.
new text end

Sec. 5.

new text begin [327C.041] ACCESS BY UTILITY PROVIDERS.
new text end

new text begin In a park where residents receive utilities from a utility provider, either directly or through
redistribution by the park owner, the park owner must not deny access to a utility provider
seeking access for the purposes of repairing faulty or defective utility equipment or
investigating reports of an interruption of utilities. A resident may provide a utility provider
access to the park for these purposes.
new text end

Sec. 6.

new text begin [327C.051] HABITABILITY COVENANTS REGARDING TREES THAT
PRESENT SAFETY HAZARDS.
new text end

new text begin (a) Park owner covenants under section 504B.161 include the trimming and care of trees
and the removal of unsound trees when the trees present safety hazards.
new text end

new text begin (b) Within 14 days of receiving written notice from a resident that a tree or branch
presents a safety hazard, the park owner must either:
new text end

new text begin (1) remove the tree or branch; or
new text end

new text begin (2) receive an opinion on the safety of the tree or branch from an arborist who has
inspected the tree or branch in person.
new text end

new text begin (c) If an arborist advises that a tree or branch presents a safety hazard, the park owner
must remove the tree or branch within five days of inspection by the arborist, unless the
arborist advises that it is not the appropriate season for removing the tree or branch. If an
arborist advises that a tree or branch presents a safety hazard but that it is not the appropriate
season for removing the tree or branch, the owner must schedule the removal to take place
during the appropriate season and must provide written notice to the resident of the scheduled
date of removal and of the reason for the delay.
new text end

Sec. 7.

Minnesota Statutes 2024, section 327C.06, subdivision 1, is amended to read:

Subdivision 1.

Notice of rent increases required.

No increase in the amount of the
periodic rental payment due from a resident shall be valid unless the park owner gives the
resident 60 days' written notice of the increase. new text begin The notice must include the park owner's
reason for the rent increase.
new text end

Sec. 8.

Minnesota Statutes 2024, 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 rent increase must be reasonable. A rent
increase is presumed to be unreasonable if the percentage of the increase exceeds three
percent of the rent per month in the prior year. A park owner may prove a rent increase is
reasonable by clear and convincing evidence that the increase is necessary for the health
and safety of the residents. A rent increase approved by a resident-owned cooperative formed
under chapter 308A or 308B is presumptively reasonable.
new text end

Sec. 9.

new text begin [327C.065] PAYMENT OF RENT; DIGITAL PAYMENT PLATFORMS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to park owners who require or permit
residents to use a digital payment platform to pay rent, fees, and other charges.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Alternative means of payment" means a method of payment other than the use of
a digital payment platform and includes payment by check or cash.
new text end

new text begin (c) "Digital payment platform" means an electronic application or system that permits
a user to conduct financial transactions. Digital payment platform includes electronic funds
transfers.
new text end

new text begin (d) "Electronic funds transfers" means a transfer of funds, other than a transaction
originated by check, draft, or similar paper instrument, that is initiated through an electronic
terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or
authorizing a financial institution to debit or credit a consumer's account through the use of
an automated clearing house system or alternative payment system.
new text end

new text begin Subd. 3. new text end

new text begin Form of payment. new text end

new text begin A park owner must offer each resident an alternative to
using a digital payment platform to pay rent, fees, or other charges. No fee may be charged
to a resident to use the digital payment platform or any alternative means of payment.
new text end

new text begin Subd. 4. new text end

new text begin Digital payment platform. new text end

new text begin (a) The park owner must ensure that the following
information is readily viewable and accessible to the resident on the digital payment platform
or through a means that does not rely on the use of the digital payment platform:
new text end

new text begin (1) an itemized list of all current information on the rent, fees, or other charges assessed
that correspond to the charges for which the resident is responsible, and all payment received;
and
new text end

new text begin (2) communications to date between the resident and the park owner related to the
payment of rent, fees, or other charges.
new text end

new text begin (b) A park owner must provide the resident with a telephone number to call if, for any
reason, the digital payment platform or a system used by the park owner to collect an
alternative means of payment is unavailable for use by the resident.
new text end

new text begin Subd. 5. new text end

new text begin Adverse action prohibited. new text end

new text begin (a) A park owner is prohibited from taking any
adverse action, including filing an eviction action or assessing any late fees, when payment
of rent, fees, or other charges is not timely because the digital payment platform is out of
service or a system used by the park owner to collect an alternative means of payment is
unavailable.
new text end

new text begin (b) It is an affirmative defense to an eviction action brought based on nonpayment that
the park owner violated this section. Upon a showing that the park owner violated this
section, the court must dismiss the eviction action and award the resident reasonable attorney
fees and any other equitable relief the court deems appropriate.
new text end

Sec. 10.

Minnesota Statutes 2024, section 327C.097, is amended to read:

327C.097 NOTICE deleted text begin OF UNSOLICITED SALE deleted text end new text begin AND OPPORTUNITY TO
PURCHASE new text end .

Subdivision 1.

deleted text begin Definitions deleted text end new text begin Definition new text end .

For the purposes of this section, "nonprofit"
means a nonprofit organization under chapter 317A.

Subd. 2.

Scope.

This section does not apply to:

deleted text begin (1) a purchase of a manufactured home park by a nonprofit or a representative acting
on behalf of residents pursuant to a bona fide offer to purchase the park pursuant to
subdivision 4;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end a purchase of a manufactured home park by a governmental entity under its
powers or threat of eminent domain;

deleted text begin (3) deleted text end new text begin (2) new text end a transfer by a corporation or limited liability company to an affiliate, including
any shareholder or member of the transferring corporation; any corporation or entity owned
or controlled, directly or indirectly, by the transferring corporation; or any other corporation
or entity owned or controlled, directly or indirectly, by any shareholder or member of the
transferring corporation;

deleted text begin (4) deleted text end new text begin (3) new text end a transfer by a partnership to any of its partners;

deleted text begin (5) deleted text end new text begin (4) new text end a sale or transfer between or among joint tenants or tenants in common owning
a manufactured home park;

deleted text begin (6) an exchange of a manufactured home park for other real property, whether or not
such exchange also invoices the payment of cash or boot;
deleted text end

deleted text begin (7) a conveyance of an interest in a manufactured home park incidental to the financing
of the manufactured home park;
deleted text end

deleted text begin (8) deleted text end new text begin (5) new text end a conveyance resulting from the foreclosure of a mortgage, cancellation of a
contract for deed, or other instrument encumbering a manufactured home park or any deed
given in lieu of such foreclosure or cancellation; new text begin or
new text end

deleted text begin (9) deleted text end new text begin (6) new text end a sale or transfer to a person who would be included within the intestate table of
descent and distribution of the park owner deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (10) a park owner who, within the past year, has provided written notice pursuant to
section 327C.096.
deleted text end

Subd. 3.

Notice of deleted text begin offer deleted text end new text begin sale new text end .

deleted text begin (a) If a park owner receives an unsolicited bona fide offer
to purchase the park that the park owner intends to consider or make a counteroffer to, the
park owner's only obligation shall be to mail a notice to the Minnesota Housing Finance
Agency, by certified mail, and to each park resident household, by regular mail. The notice
must indicate that the park owner has received an offer that it is considering, and it must
disclose the price range and material terms and conditions upon which the park owner would
consider selling the park and consider any offer made by a representative acting on behalf
of residents or a nonprofit that will become a representative acting on behalf of residents,
as provided below. The park owner shall be under no obligation either to sell to the nonprofit
or representative acting on behalf of residents or to interrupt or delay other negotiations and
shall be free to execute a purchase agreement or contract for the sale of the park to a party
or parties other than the representative acting on behalf of residents. Substantial compliance
with the notice requirement in this paragraph shall be deemed sufficient.
deleted text end

deleted text begin (b) The Minnesota Housing Finance Agency must, within five days of receipt of the
notice required under paragraph (a), distribute a copy of the notice to any representative
acting on behalf of residents and to any nonprofits that register with the agency to receive
such notices. The agency shall make a list of any representatives acting on behalf of residents
and any registered nonprofits publicly available on its website.
deleted text end

new text begin (a) No park owner may accept any offer for the sale, lease, or transfer of a manufactured
home park without first giving 60 days' written notice by certified mail, return receipt
requested, of the proposed sale, lease, or transfer to:
new text end

new text begin (1) each resident of the manufactured home park; and
new text end

new text begin (2) the Minnesota Housing Finance Agency.
new text end

new text begin (b) The notice required under this subdivision must be dated and indicate the price,
terms, and conditions of an acceptable offer the park owner has received to sell, lease, or
transfer the manufactured home park. The notice must include the following verbatim
statement: "The park owner has received and is prepared to accept an outside offer to [sell,
lease, transfer] this park. The price, terms, and conditions of the offer are listed below.
Before accepting the offer for the [sale, lease, transfer], the park owner will consider any
offer submitted within 60 days of the date of this notice by a representative acting on behalf
of residents. The owner will negotiate in good faith with the representative. [List of price,
terms, and conditions.]"
new text end

new text begin (c) Upon the request of a resident, an owner must make available a copy of any acceptable
agreement to sell, lease, or transfer the manufactured home park for a period of 60 days
following the date of the notice required under this subdivision. The owner must provide
the copy within three days of the request by the resident.
new text end

Subd. 4.

deleted text begin Unsolicited deleted text end new text begin Residents' new text end offer new text begin to purchase new text end .

deleted text begin Nothing contained in this section
or section 327C.096 shall prevent a representative acting on behalf of residents or a nonprofit
from making an unsolicited bona fide offer to purchase the manufactured home park to the
park owner at any time.
deleted text end

new text begin (a) A representative acting on behalf of residents may submit a written offer to the park
owner to purchase the manufactured home park, subject to the conditions required under
subdivision 7. The offer must be submitted within 60 days of the postmark date of the notice
required under subdivision 3, by certified mail, return receipt requested.
new text end

new text begin (b) If the owner rejects the offer of a representative acting on behalf of residents, the
owner must provide written notice to the representative of, and an explanation of the reasons
for, rejection of the offer. The notice of rejection must be delivered to the representative by
certified mail within five days of receipt of the offer from the representative. No owner may
accept a final, unconditional offer for the sale, lease, or transfer of a manufactured home
park earlier than the 15th day following the certified delivery date of the notice of rejection.
The purchase agreement must permit the representative acting on behalf of residents 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 the
information.
new text end

new text begin Subd. 5. new text end

new text begin Optional recording. new text end

new text begin (a) A park owner may record with the county recorder or
registrar of titles in the county where the park is located an affidavit, with a copy of the
notice required under subdivision 3 attached, attesting that:
new text end

new text begin (1) the park owner has complied with the requirements of this section; or
new text end

new text begin (2) the sale, lease, or transfer of the manufactured home park is exempt from this section
pursuant to subdivision 2.
new text end

new text begin (b) An affidavit filed in accordance with this subdivision shall be presumptive evidence
of compliance for purposes of conveying good title to a bona fide purchaser.
new text end

new text begin (c) A representative acting on behalf of residents who makes an offer to purchase the
park as provided under subdivision 4 may record notice of the offer in the county recorder's
office.
new text end

new text begin Subd. 6. new text end

new text begin Good faith obligations. new text end

new text begin All transactions governed by, and all actions taken
pursuant to, this section must be conducted in good faith.
new text end

new text begin Subd. 7. new text end

new text begin Requirement of affordable housing preservation. new text end

new text begin 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

new text begin Subd. 8. new text end

new text begin Challenge to petition. new text end

new text begin In any action challenging the validity of the signatories
of the petition authorizing a representative acting on behalf of residents to represent residents
in negotiations to purchase a manufactured home park, there shall be a rebuttable presumption
that the challenged party's signature is sufficient evidence that the party is a valid signatory.
new text end

new text begin Subd. 9. new text end

new text begin Remedies. new text end

new text begin (a) A park owner who violates subdivision 3, 4, or 6 is liable to each
resident for actual, incidental, or consequential damages, plus attorney fees and costs.
new text end

new text begin (b) In addition to the remedies that a resident is entitled to under paragraph (a), a court
may grant declaratory, injunctive, or equitable relief.
new text end

new text begin (c) The remedies provided under this subdivision are cumulative, not exclusive, and do
not restrict any remedy that is otherwise available to a plaintiff at law or in equity.
new text end

new text begin Subd. 10. new text end

new text begin List of interested organizations. new text end

new text begin The Minnesota Housing Finance Agency
must:
new text end

new text begin (1) within ten days of receipt of a notice received under subdivision 3, distribute a copy
of the notice to nonprofit organizations that register with the Minnesota Housing Finance
Agency to receive such notices; and
new text end

new text begin (2) make the list of nonprofit organizations that have registered to receive notice publicly
available on the Minnesota Housing Finance Agency website.
new text end

Sec. 11.

Minnesota Statutes 2024, section 327C.15, is amended to read:

327C.15 REMEDIES; PENALTIES; ENFORCEMENT.

Any violation of sections 327C.015 to 327C.14 is a violation of a law referred to in
section 8.31, subdivision 1. new text begin A park owner that violates sections 327C.015 to 327C.14 is
liable for:
new text end

new text begin (1) actual damages sustained by the resident as a result of the violation;
new text end

new text begin (2) injunctive relief as determined by the court;
new text end

new text begin (3) equitable relief a court considers just and reasonable in the circumstances; and
new text end

new text begin (4) in the case of any successful action, the cost of the action and reasonable attorney
fees as determined by the court.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 327C.096, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-04015

327C.096 NOTICE OF SALE.

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 real estate broker licensed by the Department of Commerce, the owner must provide concurrent written notice to each resident household 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. The notice provided by the park owner to each resident household 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.