SF 1196

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to housing; creating the Minnesota manufactured home relocation trust
fund; requiring that a manufactured home park owner make specified payments
to the trust fund; requiring an owner of a manufactured home who rents a lot in a
manufactured home park to make an annual payment to the trust fund; amending
Minnesota Statutes 2006, sections 327C.095, subdivisions 1, 4, by adding
subdivisions; 462A.21, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 462A.

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

Section 1.

Minnesota Statutes 2006, section 327C.095, subdivision 1, is amended to
read:

Subdivision 1.

Conversion of use; minimum notice.

At least nine months before
the conversion of all or a portion of a manufactured home park to another use, or before
closure of a manufactured home park or cessation of use of the land as a manufactured
home park, the park owner must prepare a closure statement and provide a copy to the
commissioners of health and the housing finance agency, the local planning agency, and
a resident of each manufactured home where the residential use is being converted.
new text begin The closure statement must include the following language in a font no smaller than 14
point: "YOU MAY BE ENTITLED TO COMPENSATION FROM THE MINNESOTA
MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE
MINNESOTA HOUSING FINANCE AGENCY." new text end A resident may not be required to
vacate until 60 days after the conclusion of the public hearing required under subdivision
4. If a lot is available in another section of the park that will continue to be operated as a
park, the park owner must allow the resident to relocate the home to that lot unless the
home, because of its size or local ordinance, is not compatible with that lot.

Sec. 2.

Minnesota Statutes 2006, section 327C.095, subdivision 4, is amended to read:

Subd. 4.

Public hearing; relocation deleted text begin costs deleted text end new text begin compensation new text end .

The governing body
of the new text begin affected new text end 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. deleted text begin Before any change in use or cessation of operation and as a condition of the
change, the governing body may require a payment by the park owner to be made to
the displaced resident for the reasonable relocation costs. If a resident cannot relocate
the home to another manufactured home park within a 25 mile radius of the park that
is being closed, the resident is entitled to relocation costs based upon an average of
relocation costs awarded to other residents. deleted text end new text begin 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.40 as
compensation for reasonable relocation costs under subdivision 13, paragraphs (a) and (e).
new text end

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

Sec. 3.

Minnesota Statutes 2006, section 327C.095, is amended by adding a
subdivision to read:

new text begin Subd. 12. new text end

new text begin Payment to the Minnesota manufactured home relocation trust fund.
new text end

new text begin (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 home park owner shall,
upon such change in use, pay to the commissioner of finance for deposit in the Minnesota
manufactured home relocation trust fund under section 462A.40, the lesser amount of
the actual costs of moving or purchasing the manufactured home 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, from
the home owner, of documentation of relocation costs under subdivision 13, paragraph
(a) or (e).
new text end

new text begin (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:
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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, or has failed to pay the annual $12 payment to the Minnesota manufactured home
relocation trust fund when due;
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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.
new text end

new text begin (c) Owners of manufactured homes who rent lots in a manufactured home park shall
make annual payments to the park owner, to be deposited in the Minnesota manufactured
home relocation trust fund under section 462A.40, in the amount of $12 per year, per
manufactured home, payable on August 15 of each year. On or before July 15 of each
year, the commissioner of finance shall prepare and forward to the park owner for
circulation to its residents, a generic invoice and cover letter explaining the purpose of the
Minnesota manufactured home relocation trust fund, the obligation of each manufactured
home owner to make an annual $12 payment into the fund, the due date, and the need to
pay to the park owner for collection, and a warning, in 14-point font, that if the annual
payments are not made when due, the manufactured home owner will not be eligible for
compensation from the fund if the manufactured home community closes. The park
owner shall receive, record, and commingle the payments and forward the payments to
the commissioner of finance by September 15 of each year, with a summary by the park
owner, certifying the name, address, and payment amount of each remitter, and noting
the names and addresses of manufactured home owners who did not pay the $12 annual
payment. The commissioner of finance shall deposit the payments in the Minnesota
manufactured home relocation trust fund.
new text end

Sec. 4.

Minnesota Statutes 2006, section 327C.095, is amended by adding a
subdivision to read:

new text begin Subd. 13. new text end

new text begin Change in use, relocation expenses; payments by park owner. new text end

new text begin (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 $4,000 for a single-section and
$8,000 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, and moving costs for any appurtenances, which meet applicable local, state,
and federal building and construction codes.
new text end

new text begin (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).
new text end

new text begin (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 Housing Finance Agency, with a copy to the park owner, an application for
payment, which includes:
new text end

new text begin (1) a copy of the closure statement under subdivision 1;
new text end

new text begin (2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;
new text end

new text begin (3) a statement with supporting materials of any additional relocation costs as
outlined in subdivision 1;
new text end

new text begin (4) a statement certifying that none of the exceptions to receipt of compensation
under subdivision 12, paragraph (b), apply to the manufactured home owner;
new text end

new text begin (5) a statement from the manufactured park owner that the lot rental is current
and that the annual $12 payment to the Minnesota manufactured home relocation trust
fund has been paid when due; and
new text end

new text begin (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.
new text end

new text begin (d) Upon receipt of the application and supporting documentation under paragraph
(c), the Housing Finance Agency shall issue a check to the home owner for the amount
of the contract price for relocating the manufactured home and additional certified costs
associated with third party vendors, that were necessary in relocating the manufactured
home, up to the maximum amounts in paragraph (a).
new text end

new text begin (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. The amount that may
be reimbursed under the fund is a maximum of $5,000 for a single-section, and $9,000
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
$12 payment to the Minnesota manufactured home relocation trust fund has been paid
when due, 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 finance in the
amount established in subdivision 12, paragraph (a), less any costs required for demolition
and removal of the home, and any debris or refuse left on the lot, not to exceed $1,500.
The manufactured home owner must also provide a copy of the certificate of title endorsed
by the owner of record, and certify to the Housing Finance Agency, 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.
new text end

new text begin (f) The Housing Finance Agency is not liable to any person for recovery if the funds
in the Minnesota manufactured home relocation trust fund are insufficient to pay the
amounts claimed. In such event, the Housing Finance Agency shall keep a record of the
time and date of its receipt of application for payment from a claimant. If sufficient funds
become available, the Housing Finance Agency shall pay the manufactured home owner
whose unpaid claim is the earliest by time and date of the receipt of application.
new text end

Sec. 5.

Minnesota Statutes 2006, section 327C.095, is amended by adding a
subdivision to read:

new text begin Subd. 14. new text end

new text begin Payment adjustment for smaller manufactured home parks. new text end

new text begin The total
contribution to the fund under section 462A.40 paid by the park owner under subdivision
12, paragraph (a), must not exceed 20 percent of the sale price, or if no sale price is
available, the assessed value of the manufactured home park, except that if the sale price,
or if there is no sale price, the assessed value, is:
new text end

new text begin (1) less than $100,000, the manufactured home park owner's contribution to the fund
must not exceed five percent of the sale price of the manufactured home park;
new text end

new text begin (2) less than $200,000, the owner's contribution to the fund must not exceed eight
percent of the sale price of the manufactured home park;
new text end

new text begin (3) less than $300,000, the owner's contribution to the fund must not exceed ten
percent of the sale price of the manufactured home park; and
new text end

new text begin (4) less than $500,000, the owner's contribution to the fund must not exceed 15
percent of the sale price of the manufactured home park.
new text end

Sec. 6.

Minnesota Statutes 2006, section 327C.095, is amended by adding a
subdivision to read:

new text begin Subd. 15. new text end

new text begin Preemption of local ordinances. new text end

new text begin (a) This statute preempts and
supersedes any local, township, county, or municipal ordinances with regard to the closure
or relocation or buy out payments paid in the course of a change of use or closure of
manufactured home communities. A municipality, township, or county must not adopt an
ordinance requiring more compensation by the manufactured home park owners or its
purchaser than what is provided for in this statute.
new text end

new text begin (b) The Minnesota Housing Finance Agency must make a determination by
September 15, 2007, of the amount of payment a manufactured home owner would have
been entitled to under a local ordinance in effect on August 1, 2007. Notwithstanding
paragraph (a), the manufactured home owner's compensation for relocation costs from the
fund under section 462A.40, is the greater of the amount provided under subdivision 13,
or the amount under the local ordinance in effect on August 1, 2007, that is applicable to
the manufactured home owner.
new text end

Sec. 7.

Minnesota Statutes 2006, section 327C.095, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin Advances to the Minnesota manufactured home relocation trust
fund. new text end

new text begin (a) The Housing Finance Agency may advance funds from state appropriations or
other resources to the Minnesota manufactured home relocation trust fund established
under section 462A.40 in the event that funds in the Minnesota manufactured home
relocation trust fund are insufficient to pay the amounts claimed under subdivision 13.
This paragraph sunsets on June 30, 2009.
new text end

new text begin (b) The Housing Finance Agency shall be reimbursed from the Minnesota
manufactured home relocation trust fund for any money advanced by the agency under
paragraph (a) to the fund. Applications for payment to manufactured home owners shall
be paid prior to reimbursement of money advanced by the agency to the fund.
new text end

Sec. 8.

Minnesota Statutes 2006, section 462A.21, is amended by adding a subdivision
to read:

new text begin Subd. 31. new text end

new text begin Manufactured housing relocation trust fund. new text end

new text begin The agency may spend
money for the purposes of sections 327C.095, subdivisions 12 and 13; and 462A.40
and may pay the costs and expenses necessary and incidental to the development and
operation of the fund under section 462A.40.
new text end

Sec. 9.

new text begin [462A.40] MINNESOTA MANUFACTURED HOME RELOCATION
TRUST FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of fund. new text end

new text begin The Minnesota manufactured home
relocation trust fund is established as a separate account in the housing development
fund. The agency may use the money from the Minnesota manufactured home relocation
trust fund to make payments to manufactured home owners under section 327C.095,
subdivision 13, paragraphs (a) and (e). All interest earned from the investment or
deposit of money in the trust fund must be deposited in the trust fund. The Minnesota
manufactured home relocation trust fund account shall consist of:
new text end

new text begin (1) payments collected from manufactured home park owners under sections
327C.095, subdivision 12, paragraph (a), and 327C.095, subdivision 13, paragraph (e);
new text end

new text begin (2) payments collected from manufactured home owners under section 327C.095,
subdivision 12, paragraph (c);
new text end

new text begin (3) interest earned on the money deposited into the trust fund; and
new text end

new text begin (4) other appropriated funds.
new text end

new text begin Subd. 2. new text end

new text begin Expending funds. new text end

new text begin The agency may expend the money in the Minnesota
manufactured home relocation trust fund to the extent necessary to carry out the objectives
of section 327C.095, subdivision 13, by making payments to manufactured home owners
under section 327C.095, subdivision 13, paragraphs (a) and (e), and to pay the costs of
administering the fund.
new text end