SF 614

as introduced - 91st Legislature (2019 - 2020) Posted on 01/31/2019 02:11pm

A bill for an act
relating to housing; providing residents an opportunity to purchase manufactured
home parks; proposing coding for new law in Minnesota Statutes, chapter 327C;
repealing Minnesota Statutes 2018, section 327C.096.

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

Section 1.

new text begin [327C.097] OPPORTUNITY TO PURCHASE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Representative" means a person, including but not limited to a cooperative or
nonprofit, who has obtained a petition signed by at least one resident of at least 51 percent
of the occupied homes in the manufactured home park and authorizing the person to represent
all of the residents in negotiations to purchase the property from the owner under this section.
new text end

new text begin (c) "Cooperative" means a cooperative organized under chapter 308A or 308B.
new text end

new text begin (d) "Nonprofit" means a nonprofit organization under chapter 317A.
new text end

new text begin Subd. 2. new text end

new text begin Scope. new text end

new text begin This section does not apply where the conveyance of the manufactured
home park is by a:
new text end

new text begin (1) taking by eminent domain;
new text end

new text begin (2) transfer by a corporation to an affiliate;
new text end

new text begin (3) foreclosure;
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new text begin (4) transfer by a partnership to one or more of its partners; or
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new text begin (5) sale or transfer to a person who would be an heir of the owner who dies intestate.
new text end

new text begin Subd. 3. new text end

new text begin Notice of sale. new text end

new text begin (a) No park owner may accept any offer for the sale, lease, or
transfer of a manufactured home park without first giving 60 days' written notice by certified
mail, return receipt requested, of the proposed sale, lease, or transfer to:
new text end

new text begin (1) each resident of the manufactured home park; and
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new text begin (2) the Minnesota Housing Finance Agency.
new text end

new text begin (b) The notice required under this subdivision must be dated and indicate the price,
terms, and conditions of an acceptable offer the park owner has received to sell, lease, or
transfer the manufactured home park. The notice must include the following verbatim
statement: "The park owner has received and is prepared to accept an outside offer to [sell,
lease, transfer] this park. The price, terms, and conditions of the offer are listed below.
Before accepting the offer for the [sale, lease, transfer], the park owner will consider any
offer submitted within 60 days of the date of this notice by a representative of the
homeowners. The owner will negotiate in good faith with the representative. [List of price,
terms, and conditions.]"
new text end

new text begin (c) An owner must make available upon the request of a resident a copy of any acceptable
agreement to sell, lease, or transfer the manufactured home park for a period of 60 days
following the date of the notice required under this subdivision. The owner must provide
the copy within three days of the request by the resident.
new text end

new text begin Subd. 4. new text end

new text begin Residents' offer to purchase. new text end

new text begin (a) A representative may submit a written offer
to the park owner to purchase the manufactured home park subject to the conditions required
under subdivision 7. The offer must be submitted within 60 days of the postmark date of
the notice required under subdivision 3, by certified mail, return receipt requested.
new text end

new text begin (b) If the owner rejects the representative's offer, the owner must provide written notice
to the representative of, and an explanation of the reasons for, rejection of the offer. The
notice of rejection must be delivered to the representative by certified mail within five days
of receipt of the offer from the representative. No owner may accept a final, unconditional
offer for the sale, lease, or transfer of a manufactured home park earlier than on the 31st
day following the certified delivery date of the notice of rejection.
new text end

new text begin Subd. 5. new text end

new text begin Optional recording. new text end

new text begin (a) A park owner may record with the county recorder or
registrar of titles in the county where the park is located an affidavit, with a copy of the
notice required under subdivision 3 attached, attesting:
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new text begin (1) the park owner has complied with the requirements of this section; or
new text end

new text begin (2) the sale, lease, or transfer of the manufactured home park is exempt from this section
pursuant to subdivision 2.
new text end

new text begin (b) An affidavit filed in accordance with this subdivision shall be presumptive evidence
of compliance for purposes of conveying good title to a bona fide purchaser.
new text end

new text begin (c) The representative who makes an offer to purchase the park as provided under
subdivision 4 may record notice of the offer in the county recorder's office.
new text end

new text begin Subd. 6. new text end

new text begin Good faith obligations. new text end

new text begin All transactions governed by, and all actions taken
pursuant to, this section must be conducted in good faith.
new text end

new text begin Subd. 7. new text end

new text begin Requirement of affordable housing preservation. new text end

new text begin (a) A representative, or
an assignee of the right to purchase, who purchases a park under this section shall maintain
the property for a period of at least 50 years following the closing date of the purchase as:
new text end

new text begin (1) a resident-owned manufactured home park;
new text end

new text begin (2) a combination of manufactured homes and nonmanufactured home single dwelling
units contained in one-family, two-family, or multifamily dwellings affordable for
low-income households; or
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new text begin (3) all nonmanufactured home single dwelling units contained in one-family, two-family,
or multifamily dwellings affordable for low-income households.
new text end

new text begin (b) For the purposes of this section:
new text end

new text begin (1) "affordable" has the meaning given in Code of Federal Regulations, title 24, section
81.15; and
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new text begin (2) "low-income households" has the meaning given in Code of Federal Regulations,
title 24, section 570.3.
new text end

new text begin (c) The deed to the representative must contain a covenant running with the land that
requires the property to meet at least one of the conditions specified in paragraph (a) for at
least 50 years from the date of the deed transfer.
new text end

new text begin Subd. 8. new text end

new text begin Challenge to petition. new text end

new text begin In any action challenging the validity of the signatories
of the petition authorizing a representative to represent residents in negotiations to purchase
a manufactured home park, there shall be a rebuttable presumption that the challenged
party's signature is sufficient evidence that the party is a valid signatory.
new text end

new text begin Subd. 9. new text end

new text begin Remedies. new text end

new text begin (a) A park owner who violates subdivision 3, 4, or 6 is liable to each
resident for actual, incidental, or consequential damages, plus attorney fees and costs.
new text end

new text begin (b) In addition to the remedies that a resident is entitled to under paragraph (a), a court
may grant declaratory, injunctive, or equitable relief.
new text end

new text begin (c) The remedies provided under this subdivision are cumulative, not exclusive, and do
not restrict any remedy that is otherwise available to a plaintiff at law or in equity.
new text end

new text begin Subd. 10. new text end

new text begin List of interested organizations. new text end

new text begin The Minnesota Housing Finance Agency
must:
new text end

new text begin (1) within ten days of receipt of a notice received under subdivision 3, distribute a copy
of the notice to nonprofit organizations that register with the Minnesota Housing Finance
Agency to receive such notices; and
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new text begin (2) make the list of nonprofit organizations that have so registered publicly available on
the Minnesota Housing Finance Agency website.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 327C.096, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-1471

327C.096 NOTICE OF SALE.

When a park owner offers to sell a manufactured home park to the public through advertising in a newspaper or by listing the park with a real estate broker licensed by the Department of Commerce, the owner must provide concurrent written notice to a resident of each manufactured home in the park that the park is being offered for sale. Written notice provided once within a one-year period satisfies the requirement under this section. The notice provided by the park owner to a resident of each manufactured home does not grant any property rights in the park and is for informational purposes only. This section does not apply in the case of a taking by eminent domain, a transfer by a corporation to an affiliate, a transfer by a partnership to one or more of its partners, or a sale or transfer to a person who would be an heir of the owner if the owner were to die intestate. If at any time a manufactured home park owner receives an unsolicited bona fide offer to purchase the park that the owner intends to consider or make a counter offer to, the owner is under no obligation to notify the residents as required under this section.