SF 1094

as introduced - 91st Legislature (2019 - 2020) Posted on 04/10/2019 09:19am

A bill for an act
relating to housing; modifying manufactured home provisions; amending Minnesota
Statutes 2018, sections 299D.085, by adding a subdivision; 326B.815, subdivision
1; 327.31, by adding a subdivision; 327B.041; 327C.095, subdivisions 4, 6, 12,
13, by adding a subdivision; 462A.2035, subdivision 1b; 462A.33, subdivisions
1, 2; proposing coding for new law in Minnesota Statutes, chapter 327.

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

Section 1.

Minnesota Statutes 2018, section 299D.085, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Trailer use. new text end

new text begin A vehicle or a combination of vehicles may tow a trailer during
the movement of an overdimensional load if:
new text end

new text begin (1) the party involved is a building mover licensed by the commissioner of transportation
under section 221.81;
new text end

new text begin (2) the building being moved is not a temporary structure;
new text end

new text begin (3) the overdimensional load is a manufactured home, as defined under section 327.31;
or
new text end

new text begin (4) the overdimensional load is a modular home, as defined under section 297A.668,
subdivision 8, paragraph (b).
new text end

Sec. 2.

Minnesota Statutes 2018, section 326B.815, subdivision 1, is amended to read:

Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is deleted text begin $300 deleted text end new text begin $180 new text end for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 3.

Minnesota Statutes 2018, section 327.31, is amended by adding a subdivision to
read:

new text begin Subd. 23. new text end

new text begin Modular home. new text end

new text begin "Modular home" means a building or structural unit of closed
construction that has been substantially manufactured or constructed, in whole or in part,
at an off-site location, with the final assembly occurring on site alone or with other units
and attached to a foundation designed to the State Building Code and occupied as a
single-family dwelling. Modular home construction must comply with applicable standards
adopted in Minnesota Rules, chapter 1360 or 1361.
new text end

Sec. 4.

new text begin [327.335] PLACEMENT OF MODULAR HOMES.
new text end

new text begin A modular home may be placed in a manufactured home park as defined in section
327.14, subdivision 3. A modular home placed in a manufactured home park is a
manufactured home for purposes of chapters 327C and 504B and all rights, obligations, and
duties, under those chapters apply. A modular home may not be placed in a manufactured
home park without prior written approval of the park owner. Nothing in this section shall
be construed to inhibit the application of zoning, subdivision, architectural, or esthetic
requirements pursuant to chapters 394 and 462 that otherwise apply to manufactured homes
and manufactured home parks. A modular home placed in a manufactured home park under
this section shall be assessed and taxed as a manufactured home.
new text end

Sec. 5.

Minnesota Statutes 2018, section 327B.041, is amended to read:

327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. deleted text begin For the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.
deleted text end

Sec. 6.

Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:

Subd. 4.

Public hearing; relocation compensation; neutral third party.

new text begin Within 60
days after receiving notice of a closure statement, new text end the governing body of the affected
municipality shall hold a public hearing to review the closure statement and any impact that
the park closing may have on the displaced residents and the park owner. At the time of,
and in the notice for, the public hearing, displaced residents must be informed that they may
be eligible for payments from the Minnesota manufactured home relocation trust fund under
section 462A.35 as compensation for reasonable relocation costs under subdivision 13,
paragraphs (a) and (e).

The governing body of the municipality may also require that other parties, including
the municipality, but excluding the park owner or its purchaser, involved in the park closing
provide additional compensation to residents to mitigate the adverse financial impact of the
park closing upon the residents.

At the public hearing, the municipality shall appoint a new text begin qualified new text end neutral third party, to
be agreed upon by both the manufactured home park owner and manufactured home owners,
whose hourly cost must be reasonable and paid from the Minnesota manufactured home
relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with
decision-making authority to resolve any questions or disputes regarding any contributions
or disbursements to and from the Minnesota manufactured home relocation trust fund by
either the manufactured home park owner or the manufactured home owners. If the parties
cannot agree on a neutral third party, the municipality will deleted text begin make a determination deleted text end new text begin determine
who shall act as the neutral third party new text end .

new text begin The qualified neutral third party shall be familiar with manufactured housing and the
requirements of this section. The neutral third party shall keep an overall receipts and cost
summary together with a detailed accounting, for each manufactured lot, of the payments
received by the manufactured home park owner, and expenses approved and payments
disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well
as a record of all services and hours the neutral third party provided and at what hourly rate
the neutral third party charged to the Minnesota manufactured home trust fund. This detailed
accounting shall be provided to the manufactured home park owner, the municipality, and
the Minnesota Housing Finance Agency to be included in its yearly October 15 report as
required in subdivision 13, paragraph (h), not later than 30 days after the expiration of the
nine-month notice provided in the closure statement.
new text end

Sec. 7.

Minnesota Statutes 2018, section 327C.095, subdivision 6, is amended to read:

Subd. 6.

Intent to convert use of park at time of purchase.

Before the execution of
an agreement to purchase a manufactured home park, the purchaser must notify the park
owner, in writing, if the purchaser intends to close the manufactured home park or convert
it to another use within one year of the execution of the agreement. The park owner shall
provide a resident of each manufactured home with a 45-day written notice of the purchaser's
intent to close the park or convert it to another use. The notice must state that the park owner
will provide information on the cash price and the terms and conditions of the purchaser's
offer to residents requesting the information. The notice must be sent by first class mail to
a resident of each manufactured home in the park. The notice period begins on the postmark
date affixed to the notice and ends 45 days after it begins. During the notice period required
in this subdivision, the owners of at least 51 percent of the manufactured homes in the park
or a nonprofit organization which has the written permission of the owners of at least 51
percent of the manufactured homes in the park to represent them in the acquisition of the
park shall have the right to meet the cash price and execute an agreement to purchase the
park for the purposes of keeping the park as a manufactured housing community new text begin , provided
that the owners or nonprofit organization must covenant and warrant to the park owner in
the agreement that they will continue to operate the park for not less than six years from
the date of closing new text end . The park owner must accept the offer if it meets the cash price and the
same terms and conditions set forth in the purchaser's offer except that the seller is not
obligated to provide owner financing. For purposes of this section, cash price means the
cash price offer or equivalent cash offer as defined in section 500.245, subdivision 1,
paragraph (d).

Sec. 8.

Minnesota Statutes 2018, 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 $1,000,000 deleted text end new text begin $3,000,000 new 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 $15 for each licensed lot in their park, payable on or before deleted text begin September deleted text end new text begin November new text end
15 of that year. deleted text begin The commissioner of management deleted text end new text begin Failure to notify new text end and deleted text begin budget shall deposit
any payments in the Minnesota deleted text end new text begin timely assess the new text end manufactured home deleted text begin relocation trust fund.
On or before July 15 of deleted text end new text begin park owner by August 30 of any year shall waive the assessment
and payment obligations of the manufactured home park owner for that year. Together with
said assessment notice, new text end each year deleted text begin , deleted text end 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 $15
assessment as a lump sum or as a monthly fee of no more than $1.25 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),
new text begin and for park residents who have not paid the $15 assessment to the park owner by October
15, new text end and deduct from the assessment accordingly. new text begin The commissioner of management and
budget shall deposit any payments in the Minnesota manufactured home relocation trust
fund.
new text end

(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. 9.

Minnesota Statutes 2018, 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 deleted text begin 25 deleted text end new text begin 50 new text end -mile radius of the park that is being
closed, up to a maximum of $7,000 for a single-section and $12,500 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 $15 deleted text begin payments deleted text end new text begin payment new text end to the Minnesota manufactured home relocation trust
fund deleted text begin have deleted text end new text begin has new text end 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) new text begin The neutral third party shall promptly process all payments for completed applications
within 14 days. new text end 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. 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. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 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 $15 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.

new text begin (h)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its
website and report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee 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 itemized 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.
new text end

deleted text begin (h) deleted text end new text begin (2) Beginning in 2020, new text end the new text begin Minnesota Housing Finance new text end Agency shall new text begin post on its
website and new text end report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee by deleted text begin January deleted text end new text begin October new text end 15 of each year on the Minnesota
manufactured home relocation trust fund, including the new text begin aggregate new text end account balance, new text begin the
aggregate assessment payments received, summary information regarding each closed park
including the total new text end payments to claimants new text begin and payments received from each closed park new text end ,
the amount of any advances to the fund, the amount of any insufficiencies encountered
during the previous deleted text begin calendar deleted text end new text begin fiscal new text end year, new text begin reports of neutral third parties provided pursuant
to subdivision 4, new text end and any new text begin itemized new text end administrative charges or expenses deducted from the
trust fund balance new text begin , all of which should be reconciled to the previous year's trust fund balance new text end .
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. 10.

Minnesota Statutes 2018, section 327C.095, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Reporting of licensed manufactured home parks. new text end

new text begin The Department of Health
or, if applicable, local units of government that have entered into a delegation of authority
agreement with the Department of Health as provided in section 145A.07 shall provide, by
March 31 of each year, a list of names and addresses of the manufactured home parks
licensed in the previous year, and for each manufactured home park, the current licensed
owner, the owner's address, the number of licensed manufactured home lots, and other data
as they may request for the Department of Management and Budget to invoice each licensed
manufactured home park in the state of Minnesota.
new text end

Sec. 11.

Minnesota Statutes 2018, section 462A.2035, subdivision 1b, is amended to read:

Subd. 1b.

Manufactured home park infrastructure grants.

Eligible recipients may
use manufactured home park infrastructure grants under this program for:

(1) new text begin acquisition of and new text end improvements in manufactured home parks; and

(2) infrastructure, including storm shelters and community facilities.

Sec. 12.

Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:

Subdivision 1.

Created.

The economic development and housing challenge program is
created to be administered by the agency.

(a) The program shall provide grants or loans for the purpose of construction, acquisition,
rehabilitation, demolition or removal of existing structures, construction financing, permanent
financing, interest rate reduction, refinancing, and gap financing of housing new text begin or manufactured
home parks, as defined in section 327C.01, new text end to support economic development and
redevelopment activities or job creation or job preservation within a community or region
by meeting locally identified housing needs.

Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(b) Preference for grants and loans shall be given to comparable proposals that include
regulatory changes or waivers that result in identifiable cost avoidance or cost reductions,
such as increased density, flexibility in site development standards, or zoning code
requirements. Preference must also be given among comparable proposals to proposals for
projects that are accessible to transportation systems, jobs, schools, and other services.

(c) If a grant or loan is used for demolition or removal of existing structures, the cleared
land must be used for the construction of housing to be owned or rented by persons who
meet the income limits of this section or for other housing-related purposes that primarily
benefit the persons residing in the adjacent housing. In making selections for grants or loans
for projects that demolish affordable housing units, the agency must review the potential
displacement of residents and consider the extent to which displacement of residents is
minimized.

Sec. 13.

Minnesota Statutes 2018, section 462A.33, subdivision 2, is amended to read:

Subd. 2.

Eligible recipients.

Challenge grants or loans may be made to a city, a federally
recognized American Indian tribe or subdivision located in Minnesota, a tribal housing
corporation, a private developer, a nonprofit organization, or the owner of the housing new text begin or
the manufactured home park new text end , including individuals. For the purpose of this section, "city"
has the meaning given it in section 462A.03, subdivision 21. To the extent practicable,
grants and loans shall be made so that an approximately equal number of housing units are
financed in the metropolitan area and in the nonmetropolitan area.

Sec. 14. new text begin ADVANCES TO THE MINNESOTA MANUFACTURED HOME
RELOCATION TRUST FUND.
new text end

new text begin (a) Until June 30, 2021, the Minnesota Housing Finance Agency or Department of
Management and Budget as determined by the commissioner of management and budget,
is authorized to advance up to $400,000 from state appropriations or other resources to the
Minnesota manufactured home relocation trust fund established under Minnesota Statutes,
section 462A.35, if the account balance in the Minnesota manufactured home relocation
trust fund is insufficient to pay the amounts claimed under Minnesota Statutes, section
327C.095, subdivision 13.
new text end

new text begin (b) The Minnesota Housing Finance Agency or Department of Management and Budget
shall be reimbursed from the Minnesota manufactured home relocation trust fund for any
money advanced by the agency under paragraph (a) to the fund. Approved claims for payment
to manufactured home owners shall be paid prior to the money being advanced by the agency
or the department to the fund.
new text end