SF 3216

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to housing; regulating condominium conversions; amending Minnesota
Statutes 2005 Supplement, section 515B.1-106.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 515B.1-106, is amended to
read:

515B.1-106 APPLICABILITY OF LOCAL REQUIREMENTS.

(a) Except as provided in subsections (b) and (c), a zoning, subdivision, building
code, or other real estate use law, ordinance, charter provision, or regulation may not
directly or indirectly prohibit the common interest community form of ownership or
impose any requirement upon a common interest community, upon the creation or
disposition of a common interest community or upon any part of the common interest
community conversion process which it would not impose upon a physically similar
development under a different form of ownership. Otherwise, no provision of this chapter
invalidates or modifies any provision of any zoning, subdivision, building code, or other
real estate use law, ordinance, charter provision, or regulation.

(b) Subsection (a) shall not apply to any ordinance, rule, regulation, charter provision
or contract provision relating to the financing of housing construction, rehabilitation, or
purchases provided by or through a housing finance program established and operated
pursuant to state or federal law by a state or local agency or local unit of government.

(c) A statutory or home rule charter city, pursuant to an ordinance or charter
provision establishing standards to be applied uniformly within its jurisdiction, may
prohibit or impose reasonable conditions upon the conversion of buildings occupied
wholly or partially for residential use to the common interest community form of
ownership only if there exists within the city a significant shortage of suitable rental
dwellings available to low and moderate income individuals or families or to establish or
maintain the city's eligibility for any federal or state program providing direct or indirect
financial assistance for housing to the city. Prior to the adoption of an ordinance pursuant
to the authority granted in this subsection, the city shall conduct a public hearing. Any
ordinance or charter provision adopted pursuant to this subsection shall not apply to
any existing or proposed conversion common interest community (i) for which a bona
fide loan commitment for a consideration has been issued by a lender and is in effect on
the date of adoption of the ordinance or charter provision, or (ii) for which a notice of
conversion or intent to convert required by section 515B.4-111, containing a termination
of tenancy, has been given to at least 75 percent of the tenants and subtenants in possession
prior to the date of adoption of the ordinance or charter provision.

(d) For purposes of providing marketable title, a statement in the declaration that
the common interest community is not subject to an ordinance or that any conditions
required under an ordinance have been complied with shall be prima facie evidence that
the common interest community was not created in violation of the ordinance.

(e) A violation of an ordinance or charter provision adopted pursuant to the
provisions of subsection (b) or (c) shall not affect the validity of a common interest
community. This subsection shall not be construed to in any way limit the power of
a city to enforce the provisions of an ordinance or charter provision adopted pursuant
to subsection (b) or (c).

(f) Any ordinance or charter provision enacted hereunder new text begin that prohibits the
conversion of buildings to the common interest community form of ownership new text end shall not be
effective for a period exceeding 18 months.