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SF 4180

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/22/2022 08:56am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state government; changing trust account requirements; amending
Minnesota Statutes 2020, sections 82.75, subdivision 8; 327C.095, subdivisions
12, 13, 16.

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

Section 1.

Minnesota Statutes 2020, section 82.75, subdivision 8, is amended to read:


Subd. 8.

Accrued interest.

(a) Each broker shall maintain a pooled interest-bearing trust
account for deposit of client funds. The interest accruing on the trust account, less reasonable
transaction costs, must be paid to the deleted text begincommissioner of management and budgetdeleted text endnew text begin Minnesota
Housing Finance Agency
new text end for deposit in the housing trust fund account created under section
462A.201 unless otherwise specified pursuant to an expressed written agreement between
the parties to a transaction.

(b) For an account created under paragraph (a), each broker shall direct the financial
institution to:

(1) pay the interest, less reasonable transaction costs, computed in accordance with the
financial institution's standard accounting practice, at least quarterly, to the deleted text begincommissioner
of management and budget
deleted text endnew text begin Minnesota Housing Finance Agencynew text end; and

(2) send a statement to the deleted text begincommissioner of management and budgetdeleted text endnew text begin Minnesota Housing
Finance Agency
new text end showing the name of the broker for whom the payment is made, the rate
of interest applied, the amount of service charges deducted, and the account balance for the
period in which the report is made.

The deleted text begincommissioner of management and budgetdeleted text endnew text begin Minnesota Housing Finance Agencynew text end shall
credit the amount collected under this subdivision to the housing trust fund account
established in section 462A.201.

(c) The financial institution must promptly notify the deleted text begincommissionerdeleted text endnew text begin Minnesota Housing
Finance Agency
new text end if a draft drawn on the account is dishonored. A draft is not dishonored if
a stop payment order is requested by an issuer who has a good faith defense to payment on
the draft.

Sec. 2.

Minnesota Statutes 2020, 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 deleted text begincommissioner of management and budgetdeleted text endnew text begin Minnesota Housing Finance
Agency
new text end 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; 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; or the owner of the manufactured home has not paid
the $15 assessment when due under paragraph (c).

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than $2,000,000 as of June 30 of each year, the deleted text begincommissioner of management and
budget
deleted text endnew text begin Minnesota Housing Finance Agencynew text end 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 December 15 of that year. Failure to notify and timely assess the manufactured home
park owner by July 31 of any year shall waive the assessment and payment obligations of
the manufactured home park owner for that year. Together with said assessment notice,
each year the deleted text begincommissioner of management and budgetdeleted text endnew text begin Minnesota Housing Finance Agencynew text end
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, a
notice for distribution to the residents, and a sample form for the park owners to collect
information on which park residents and lots have been accounted for. In a font no smaller
than 14-point, the notice provided by deleted text beginmanagement and budgetdeleted text endnew text begin the Minnesota Housing
Finance Agency
new text end for distribution to residents by the park owner will include the payment
deadline of October 31 and the following language: "THIS IS NOT AN OPTIONAL FEE.
IF YOU OWN A MANUFACTURED HOME ON A LOT YOU RENT IN A
MANUFACTURED HOME PARK, AND YOU RESIDE IN THAT HOME, YOU MUST
PAY WHEN PROVIDED NOTICE." 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. If, by September 15, a park owner provides the notice to residents
for the $15 lump sum, a park owner 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), and for park residents who have not paid the $15 assessment when due
to the park owner by October 31, and deduct from the assessment accordingly. The
deleted text begin commissioner of management and budgetdeleted text endnew text begin Minnesota Housing Finance Agencynew text end shall deposit
any payments in the Minnesota manufactured home relocation trust fund and provide to the
Minnesota Housing Finance Agency by December 31, a record for each manufactured home
park of the amount received for that park and the number of deductions made for each of
the following reasons: vacant lots, ineligible lots, and uncollected fees.

(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. 3.

Minnesota Statutes 2020, 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 50-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 payment to the Minnesota manufactured home relocation trust fund has 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) The neutral third party shall promptly process all payments for completed applications
within 14 days. 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 deleted text begincommissioner of management and budgetdeleted text endnew text begin Minnesota
Housing Finance Agency
new text end 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 $1,500. The
manufactured home owner must also provide a copy of the certificate of title endorsed by
the owner of record, and certify to the 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) 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)(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.

(2) Beginning in 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 by October 15 of each year on the Minnesota manufactured home
relocation trust fund, including the aggregate account balance, the aggregate assessment
payments received, summary information regarding each closed park including the total
payments to claimants and payments received from each closed park, the amount of any
advances to the fund, the amount of any insufficiencies encountered during the previous
fiscal year, reports of neutral third parties provided pursuant to subdivision 4, and any
itemized administrative charges or expenses deducted from the trust fund balance, all of
which should be reconciled to the previous year's 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. 4.

Minnesota Statutes 2020, section 327C.095, subdivision 16, is amended to read:


Subd. 16.

Reporting of licensed manufactured home parks.

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 deleted text beginDepartment of Management and Budgetdeleted text endnew text begin Minnesota Finance
Agency
new text end to invoice each licensed manufactured home park in Minnesota.