HF 519

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:38am

A bill for an act
relating to local government; regulating nonconforming lots in shoreland areas;
amending Minnesota Statutes 2008, sections 82.22, subdivision 8; 394.36,
subdivision 4, by adding a subdivision; 462.357, subdivision 1e; 513.56,
subdivision 3.

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

Section 1.

Minnesota Statutes 2008, section 82.22, subdivision 8, is amended to read:

Subd. 8.

Material facts.

(a) Licensees shall disclose to any prospective purchaser
all material facts of which the licensees are aware, which could adversely and significantly
affect an ordinary purchaser's use or enjoyment of the property, or any intended use of the
property of which the licensees are aware.

(b) It is not a material fact relating to real property offered for sale the fact or
suspicion that the property:

(1) is or was occupied by an owner or occupant who is or was suspected
to be infected with human immunodeficiency virus or diagnosed with acquired
immunodeficiency syndrome;

(2) was the site of a suicide, accidental death, natural death, or perceived paranormal
activity; or

(3) is located in a neighborhood containing any adult family home, community-based
residential facility, or nursing home.

(c) A licensee or employee of the licensee has no duty to disclose information
regarding an offender who is required to register under section 243.166, or about whom
notification is made under that section, if the broker or salesperson, in a timely manner,
provides a written notice that information about the predatory offender registry and
persons registered with the registry may be obtained by contacting local law enforcement
where the property is located or the Department of Corrections.

(d) A licensee or employee of the licensee has no duty to disclose information
regarding airport zoning regulations if the broker or salesperson, in a timely manner,
provides a written notice that a copy of the airport zoning regulations as adopted can be
reviewed or obtained at the office of the county recorder where the zoned area is located.

new text begin (e) A seller, licensee, or agent of the licensee shall be held harmless on future claims
related to limitations on use of a shoreland property due to lot size when a written notice is
given to the buyer or the buyer's licensee that contains information about the property's
compliance with city, county, or township shoreland lot size regulations for the lake or
river where the property is located.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end A licensee is not required to disclose, except as otherwise provided in
paragraph deleted text begin (f) deleted text end new text begin (g) new text end , information relating to the physical condition of the property or any
other information relating to the real estate transaction, if a written report that discloses
the information has been prepared by a qualified third party and provided to the person.
For the purposes of this paragraph, "qualified third party" means a federal, state, or local
governmental agency, or any person whom the broker, salesperson, or a party to the real
estate transaction reasonably believes has the expertise necessary to meet the industry
standards of practice for the type of inspection or investigation that has been conducted by
the third party in order to prepare the written report and who is acceptable to the person to
whom the disclosure is being made.

deleted text begin (f) deleted text end new text begin (g) new text end A licensee shall disclose to the parties to a real estate transaction any facts
known by the broker or salesperson that contradict any information included in a written
report, if a copy of the report is provided to the licensee, described in paragraph deleted text begin (e) deleted text end new text begin (f) new text end .

deleted text begin (g) deleted text end new text begin (h) new text end The limitation on disclosures set forth in paragraphs (b) and (c) shall modify
any common law duties with respect to disclosure of material facts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2008, section 394.36, subdivision 4, is amended to read:

Subd. 4.

Nonconformities; certain classes of property.

This subdivision
applies to homestead and nonhomestead residential real estate and seasonal residential
real estate occupied for recreational purposes. new text begin Except as otherwise provided by law, new text end a
nonconformity, including the lawful use or occupation of land or premises existing at
the time of the adoption of an official control under this chapter, may be continued,
including through repair, replacement, restoration, maintenance, or improvement, but
not including expansion. If the nonconformity or occupancy is discontinued for a
period of more than one year, or any nonconforming building or structure is destroyed
by fire or other peril to the extent of new text begin greater than new text end 50 percent of its new text begin estimated new text end market
value, new text begin as indicated in the records of the county assessor at the time of damage, new text end and no
building permit has been applied for within 180 days of when the property is damaged,
any subsequent use or occupancy of the land or premises must be a conforming use or
occupancy. If a nonconforming building or structure is destroyed by fire or other peril
to the extent of new text begin greater than new text end 50 percent of its new text begin estimated new text end market value, new text begin as indicated in the
records of the county assessor at the time of damage, new text end the board may impose reasonable
conditions upon a new text begin zoning or new text end building permit in order to mitigate any newly created impact
on adjacent property new text begin or water body new text end . new text begin When a nonconforming structure in the shore impact
zone is removed or is destroyed by fire or other peril to the extent of greater than 50
percent of its estimated market value, as indicated in the records of the county assessor
at the time of damage, it shall not be replaced, repaired, or restored within the shore
impact zone. Structures not meeting the required setback distances to the water body
prior to damage may have reasonable conditions placed upon a zoning or building permit
to mitigate created impacts on the adjacent property or water body, including, but not
limited to, storm water runoff management, reducing impervious surfaces, restoration of
wetlands, vegetative buffers, sewage treatment and water supply capabilities, and other
conservation-designed actions.
new text end

Sec. 3.

Minnesota Statutes 2008, section 394.36, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Existing nonconforming lots in shoreland areas. new text end

new text begin (a) This subdivision
applies to shoreland lots of record in the office of the county recorder on the date of
adoption of local shoreland controls that do not meet the requirements for lot size or lot
width. A county shall regulate the use of nonconforming lots of record and the repair,
replacement, maintenance, improvement, or expansion of nonconforming uses and
structures in shoreland areas according to this subdivision.
new text end

new text begin (b) A nonconforming single lot of record located within a shoreland area may be
allowed as a building site without variances from lot size requirements, provided that:
new text end

new text begin (1) all structure and septic system setback distance requirements can be met;
new text end

new text begin (2) a Type 1 sewage treatment system consistent with Minnesota Rules, chapter
7080, can be installed or the lot is connected to a public sewer; and
new text end

new text begin (3) the impervious surface coverage does not exceed 25 percent of the lot.
new text end

new text begin (c) In a group of two or more contiguous lots of record under a common ownership,
an individual lot must not be considered as a separate parcel of land for the purpose of sale
or development, unless it meets the following requirements:
new text end

new text begin (1) the lot must be 66 percent or more of the dimensional standard for lot width and
lot size for the shoreland classification consistent with Minnesota Rules, chapter 6120;
new text end

new text begin (2) the lot must be connected to a public sewer, if available, or must be suitable for
the installation of a Type 1 sewage treatment system consistent with Minnesota Rules,
chapter 7080, and local government controls;
new text end

new text begin (3) impervious surface coverage must not exceed 25 percent of each lot; and
new text end

new text begin (4) development of the lot must be consistent with the comprehensive plan.
new text end

new text begin (d) A lot subject to paragraph (c) not meeting the requirements of paragraph (c) must
be combined with the one or more contiguous lots so they equal one or more conforming
lots as much as possible.
new text end

new text begin (e) Notwithstanding paragraph (c), contiguous nonconforming lots of record in
shoreland areas under a common ownership may be sold or purchased individually if each
lot contained a habitable residential dwelling at the time the lots came under common
ownership and the lots are suitable for, or served by, a Type 1 sewage treatment system
consistent with Minnesota Rules, chapter 7080, or connected to a public sewer.
new text end

new text begin (f) In evaluating all variances, zoning and building permit applications, or
conditional use requests, the zoning authority shall require the property owner to address,
when appropriate, storm water runoff management, reducing impervious surfaces,
restoration of wetlands, vegetative buffers, sewage treatment and water supply capabilities,
and other conservation-designed actions.
new text end

new text begin (g) A portion of a conforming lot may be separated from an existing parcel as long
as the remainder of the existing parcel meets the lot size and sewage system requirements
of the zoning district for a new lot and the newly created parcel is combined with an
adjacent parcel.
new text end

Sec. 4.

Minnesota Statutes 2008, section 462.357, subdivision 1e, is amended to read:

Subd. 1e.

Nonconformities.

(a) new text begin Except as otherwise provided by law, new text end any
nonconformity, including the lawful use or occupation of land or premises existing at
the time of the adoption of an additional control under this chapter, may be continued,
including through repair, replacement, restoration, maintenance, or improvement, but
not including expansion, unless:

(1) the nonconformity or occupancy is discontinued for a period of more than one
year; or

(2) any nonconforming use is destroyed by fire or other peril to the extent of greater
than 50 percent of its new text begin estimated new text end market value, new text begin as indicated in the records of the county
assessor at the time of damage, new text end and no building permit has been applied for within 180
days of when the property is damaged. In this case, a municipality may impose reasonable
conditions upon a new text begin zoning or new text end building permit in order to mitigate any newly created impact
on adjacent property new text begin or water body new text end . new text begin When a nonconforming structure in the shore impact
zone is removed or is destroyed by fire or other peril to the extent of greater than 50
percent of its estimated market value, as indicated in the records of the county or city
assessor at the time of damage, it shall not be replaced, repaired, or restored within the
shore impact zone. Structures not meeting the required setback distances to the water
body prior to damage may have reasonable conditions placed upon a zoning or building
permit to mitigate created impacts on the water body or adjacent property, including, but
not limited to, storm water runoff management, reducing impervious surfaces, restoration
of wetlands, vegetative buffers, sewage treatment and water supply capabilities, and other
conservation-designed actions.
new text end

(b) Any subsequent use or occupancy of the land or premises shall be a conforming
use or occupancy. A municipality may, by ordinance, permit an expansion or impose upon
nonconformities reasonable regulations to prevent and abate nuisances and to protect the
public health, welfare, or safety. This subdivision does not prohibit a municipality from
enforcing an ordinance that applies to adults-only bookstores, adults-only theaters, or
similar adults-only businesses, as defined by ordinance.

(c) Notwithstanding paragraph (a), a municipality shall regulate the repair,
replacement, maintenance, improvement, or expansion of nonconforming uses and
structures in floodplain areas to the extent necessary to maintain eligibility in the National
Flood Insurance Program and not increase flood damage potential or increase the degree
of obstruction to flood flows in the floodway.

new text begin (d) Paragraphs (d) to (j) apply to shoreland lots of record in the office of the
county recorder on the date of adoption of local shoreland controls that do not meet
the requirements for lot size or lot width. A municipality shall regulate the use of
nonconforming lots of record and the repair, replacement, maintenance, improvement,
or expansion of nonconforming uses and structures in shoreland areas according to
paragraphs (d) to (j).
new text end

new text begin (e) A nonconforming single lot of record located within a shoreland area may be
allowed as a building site without variances from lot size requirements, provided that:
new text end

new text begin (1) all structure and septic system setback distance requirements can be met;
new text end

new text begin (2) a Type 1 sewage treatment system consistent with Minnesota Rules, chapter
7080, can be installed or the lot is connected to a public sewer; and
new text end

new text begin (3) the impervious surface coverage does not exceed 25 percent of the lot.
new text end

new text begin (f) In a group of two or more contiguous lots of record under a common ownership,
an individual lot must not be considered as a separate parcel of land for the purpose of sale
or development, unless it meets the following requirements:
new text end

new text begin (1) the lot must be 66 percent or more of the dimensional standard for lot width and
lot size for the shoreland classification consistent with Minnesota Rules, chapter 6120;
new text end

new text begin (2) the lot must be connected to a public sewer, if available, or must be suitable for
the installation of a Type 1 sewage treatment system consistent with Minnesota Rules,
chapter 7080, and local government controls;
new text end

new text begin (3) impervious surface coverage must not exceed 25 percent of each lot; and
new text end

new text begin (4) development of the lot must be consistent with the comprehensive plan.
new text end

new text begin (g) A lot subject to paragraph (f) not meeting the requirements of paragraph (f) must
be combined with the one or more contiguous lots so they equal one or more conforming
lots as much as possible.
new text end

new text begin (h) Notwithstanding paragraph (f), contiguous nonconforming lots of record in
shoreland areas under a common ownership may be sold or purchased individually if each
lot contained a habitable residential dwelling at the time the lots came under common
ownership and the lots are suitable for, or served by, a Type 1 sewage treatment system
consistent with Minnesota Rules, chapter 7080, or connected to a public sewer.
new text end

new text begin (i) In evaluating all variances, zoning and building permit applications, or conditional
use requests, the zoning authority shall require the property owner to address, when
appropriate, storm water runoff management, reducing impervious surfaces, restoration of
wetlands, vegetative buffers, sewage treatment and water supply capabilities, and other
conservation-designed actions.
new text end

new text begin (j) A portion of a conforming lot may be separated from an existing parcel as long as
the remainder of the existing parcel meets the lot size and sewage treatment requirements
of the zoning district for a new lot and the newly created parcel is combined with an
adjacent parcel.
new text end

Sec. 5.

Minnesota Statutes 2008, section 513.56, subdivision 3, is amended to read:

Subd. 3.

Inspections.

(a) Except as provided in paragraph (b), a seller is not
required to disclose information relating to the real property if a written report that
discloses the information has been prepared by a qualified third party and provided to the
prospective buyer. For purposes of this paragraph, "qualified third party" means a federal,
state, or local governmental agency, or any person whom the seller, or prospective buyer,
reasonably believes has the expertise necessary to meet the industry standards of practice
for the type of inspection or investigation that has been conducted by the third party in
order to prepare the written report.

(b) A seller shall disclose to the prospective buyer material facts known by the
seller that contradict any information included in a written report under paragraph (a) if a
copy of the report is provided to the seller.

(c) The seller has no duty to disclose information regarding airport zoning
regulations if the seller, in a timely manner, provides a written notice that a copy of the
airport zoning regulations as adopted can be reviewed or obtained at the office of the
county recorder where the zoned area is located.

new text begin (d) A seller, licensee, or agent of the licensee shall be held harmless on future claims
related to limitations on use of a shoreland property due to lot size when a written notice is
given to the buyer or the buyer's licensee that contains information about the property's
compliance with city, county, or township shoreland lot size regulations for the lake or
river where the property is located.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2010.
new text end