HF 2825

as introduced - 89th Legislature (2015 - 2016) Posted on 05/24/2016 03:41pm

A bill for an act
relating to manufactured homes; park lot rentals; making changes to the
manufactured home relocation trust fund; amending Minnesota Statutes 2014,
section 327C.095, subdivision 13.

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

Section 1.

Minnesota Statutes 2014, 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 $4,000 deleted text end new text begin $7,000 new text end for a single-section and deleted text begin $8,000
deleted text end new text begin $12,500 new 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 begin If 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 end The new text begin maximum new text end amount that may be reimbursed under
the fund is deleted text begin a maximum of $5,000 deleted text end new text begin $8,000 new text end for a single-section and deleted text begin $9,000 deleted text end new text begin $14,500 new text end for a
multisection manufactured home. new text begin The minimum amount that may be reimbursed under the
fund is $4,000 for a single section and $8,000 for a multisection manufactured home. new text end 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.

(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.

Sec. 2. new text begin ALTERNATIVE METHODS OF COLLECTING ASSESSMENT FEE;
STUDY.
new text end

new text begin (a) The commissioner of management and budget shall study alternative methods of
collecting the $12 assessment fee under Minnesota Statutes, section 327C.095, subdivision
12, paragraph (c), shifting the collection from the owner of the manufactured home park to
the owner of the manufactured home. The commissioner shall identify and evaluate the
feasibility, cost, and benefits of alternative methods of collection including, but not limited
to, directly invoicing manufactured home owners, or imposition of a sales and use tax.
new text end

new text begin (b) In completing the study in paragraph (a), the commissioner shall consult
stakeholders, including the Association of Minnesota Counties, the All Parks Alliance for
Change, and the Minnesota Manufactured Housing Association.
new text end

new text begin (c) An amount necessary to complete the study in paragraph (a) is appropriated in
fiscal year 2017 to the commissioner of management and budget from the Minnesota
manufactured home relocation trust fund under Minnesota Statutes, section 462A.35.
new text end

new text begin (d) The commissioner shall report on the results of the study to the chairs and ranking
minority members of the senate Committee on Finance and the house of representatives
Committee on Ways and Means by January 31, 2017.
new text end