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HF 2967

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 03/09/2020 05:22pm

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

Current Version - 2nd Engrossment

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A bill for an act
relating to housing; allowing mortgage financing for manufactured homes in
manufactured home park cooperatives; amending Minnesota Statutes 2018, section
273.125, subdivision 8; proposing coding for new law in Minnesota Statutes,
chapter 168A.

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

Section 1.

new text begin [168A.1411] MANUFACTURED HOME AFFIXED TO REAL PROPERTY
OWNED BY COOPERATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Certificates surrendered for cancellation; cooperatives. new text end

new text begin (a) When a
manufactured home is to be affixed or is affixed, as defined in section 273.125, subdivision
8
, paragraph (b), to real property owned by a Minnesota nonprofit corporation or a Minnesota
cooperative, the owner of the manufactured home may surrender the manufacturer's certificate
of origin or certificate of title to the department for cancellation so that the manufactured
home becomes an improvement to real property and is no longer titled as personal property.
The department must not issue a certificate of title for a manufactured home under chapter
168A if the manufacturer's certificate of origin is or has been surrendered under this
subdivision, except as provided in section 168A.142. Upon surrender of the manufacturer's
certificate of origin or the certificate of title, the department must issue notice of surrender
to the owner, and upon recording an affidavit of affixation, which the county recorder or
registrar of titles, as applicable, must accept, the manufactured home is deemed to be an
improvement to real property. An affidavit of affixation by the owner of the manufactured
home must include the following information:
new text end

new text begin (1) the name, residence address, and mailing address of owner or owners of the
manufactured home;
new text end

new text begin (2) the legal description of the real property in which the manufactured home is, or will
be, located;
new text end

new text begin (3) a copy of the surrendered manufacturer's certificate of origin or certificate of title
and the notice of surrender;
new text end

new text begin (4) a written statement from the county auditor or county treasurer of the county where
the manufactured home is located stating that all property taxes payable in the current year,
as provided under section 273.125, subdivision 8, paragraph (b), have been paid, or are not
applicable; and
new text end

new text begin (5) the signature of the person who executes the affidavit, properly executed before a
person authorized to authenticate an affidavit in this state.
new text end

new text begin (b) A certified copy of the affidavit must be delivered to the county auditor of the county
in which the real property to which the manufactured home was affixed is located.
new text end

new text begin (c) The department is not liable for any errors, omissions, misstatements, or other
deficiencies or inaccuracies in documents presented to the department under this section,
if the documents presented appear to satisfy the requirements of this section. The department
has no obligation to investigate the accuracy of statements contained in the documents.
new text end

new text begin Subd. 2. new text end

new text begin Affidavit form; cooperatives. new text end

new text begin An affidavit of affixation must be in substantially
the following form and must contain the following information.
new text end

new text begin MANUFACTURED HOME AFFIDAVIT OF AFFIXATION IN A COOPERATIVE
new text end

new text begin PURSUANT TO MINNESOTA STATUTES, SECTION 168A.1411
new text end

new text begin Homeowner, being duly sworn, on his or her oath, states as follows:
new text end

new text begin 1. Homeowner owns the manufactured home ("home") described as follows:
new text end

new text begin .
new text end
new text begin New/Used
new text end
new text begin Year
new text end
new text begin Manufacturer's
Name
new text end
new text begin Model Name or
Model No.
new text end
new text begin Manufacturer's
Serial No.
new text end
new text begin Length/Width
new text end

new text begin 2. A copy of the surrendered manufacturer's certificate of origin or certificate of title is
attached.
new text end

new text begin 3. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
Driver and Vehicle Services is attached.
new text end

new text begin 4. The home is or will be located at the following "Property Address":
new text end

new text begin .
new text end
new text begin Street or Route .
new text end
new text begin City .
new text end
new text begin County .
new text end
new text begin State .
new text end
new text begin Zip Code .
new text end

new text begin 5. The legal description of the property address ("land") is as follows or as attached hereto:
new text end

new text begin .
new text end
new text begin .
new text end
new text begin .
new text end

new text begin 6. The owner of the land is a Minnesota nonprofit corporation or Minnesota cooperative
that owns the land and whose membership entitles the homeowner to occupy a specific
portion of the land.
new text end

new text begin 7. The home ....... is, or ....... will be promptly upon delivery, anchored to the land by
attachment to a permanent foundation and connected to appropriate residential utilities (e.g.,
water, gas, electricity, sewer).
new text end

new text begin 8. The homeowner intends that the home be an immovable permanent improvement to the
land, free of any personal property security interest.
new text end

new text begin 9. A copy of the written statement from the county auditor or county treasurer of the county
in which the manufactured home is then located, stating that all property taxes payable in
the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
(b)), have been paid, or are not applicable, is attached.
new text end

new text begin 10. The home is intended to be assessed and taxed as an improvement to the land.
new text end

new text begin Signed and sworn to (or affirmed) before me on ....... (date) by ....... (names of homeowner(s))
new text end

new text begin .
new text end
new text begin .
new text end
new text begin Homeowner Signature
new text end
new text begin Address
new text end
new text begin .
new text end
new text begin .
new text end
new text begin Printed Name
new text end
new text begin City, State
new text end
new text begin .
new text end
new text begin Homeowner Signature (if applicable)
new text end
new text begin .
new text end
new text begin Printed Name
new text end

new text begin This instrument was drafted by, and when recorded return to:
new text end

new text begin .
new text end
new text begin .
new text end
new text begin .
new text end

new text begin Subscribed and sworn to before me this ....... day of ......., .......
new text end

new text begin ......................................................................
new text end
new text begin Signature of Notary Public or Other Official
new text end

new text begin Notary Stamp or Seal
new text end

new text begin (optional)
new text end

new text begin Lender's Statement of Intent:
new text end

new text begin The undersigned ("lender") intends that the home be immovable and a permanent
improvement to the land free of any personal property security interest.
new text end

new text begin .
new text end
new text begin Lender
new text end
new text begin By: .
new text end
new text begin Authorized Signature
new text end
new text begin STATE OF . )
new text end
new text begin . ) ss:
new text end
new text begin COUNTY OF . )
new text end

new text begin On the ....... day of ....... in the year ....... before me, the undersigned, a Notary Public in and
for said state, personally appeared
new text end

new text begin .
new text end

new text begin personally known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of
which the individual(s) acted, executed the instrument.
new text end

new text begin .
new text end
new text begin Notary Signature
new text end
new text begin .
new text end
new text begin Notary Printed Name
new text end
new text begin Notary Public, State of .
new text end
new text begin Qualified in the County of .
new text end
new text begin My commission expires .
new text end

new text begin Official seal:
new text end

new text begin [only if the owner of the land is a Minnesota nonprofit corporation or cooperative]:
new text end

new text begin The undersigned is the .............................. of .................................., a Minnesota [nonprofit
corporation or cooperative], which owns the land described above. I hereby certify that the
homeowner described above is a member of the [nonprofit corporation or cooperative]
whose membership entitles the homeowner to occupy [insert legal description of the
homeowner's lot or, if the corporation or cooperative has filed a scaled drawing as permitted
by subdivision 4, below, Lot ................. shown on such scaled drawing].
new text end

new text begin .
new text end
new text begin Signature block for nonprofit or cooperative
new text end
new text begin .
new text end
new text begin Acknowledgment of officer of nonprofit or
cooperative
new text end

new text begin Subd. 3. new text end

new text begin Perfected security interest prevents surrender. new text end

new text begin The department may not
cancel a certificate of title if, under this chapter, a security interest has been perfected on
the manufactured home. If a security interest has been perfected, the department must notify
the owner that each secured party must release or satisfy the security interest prior to
proceeding with surrender of the manufacturer's certificate of origin or certificate of title to
the department for cancellation. Permanent attachment to real property or the recording of
an affidavit of affixation does not extinguish an otherwise valid security interest in or tax
lien on the manufactured home, unless the requirements of subdivisions 1 to 3, including
the release of any security interest, have been satisfied.
new text end

new text begin Subd. 4. new text end

new text begin Notice of security interest. new text end

new text begin When a perfected security interest exists, or will
exist, on the manufactured home at the time the manufactured home is affixed to real
property, and the owner has not satisfied the requirements of subdivision 1, the owner of
the manufactured home, or its secured party, may record a notice with the county recorder,
or with the registrar of titles, if the land is registered, stating that the manufactured home
located on the property is encumbered by a perfected security interest and is not an
improvement to real property. The notice must state the name and address of the secured
party as set forth on the certificate of title, the legal description of the real property, and the
name and address of the record fee owner of the real property on which the manufactured
home is affixed. When the security interest is released or satisfied, the secured party must
attach a copy of the release or satisfaction to a notice executed by the secured party containing
the county recorder or registrar of titles document number of the notice of security interest.
The notice of release or satisfaction must be recorded with the county recorder, or registrar
of titles, if the land is registered. Neither the notice described in this subdivision nor the
security interest on the certificate of title is deemed to be an encumbrance on the real
property. The notices provided for in this subdivision need not be acknowledged.
new text end

new text begin Subd. 5. new text end

new text begin Scaled drawing. new text end

new text begin (a) If the portion of the land occupied by the homeowner has
not been subdivided, the nonprofit or cooperative owner shall have prepared and recorded
against the land a scaled drawing prepared by a licensed professional land surveyor, who
shall certify that:
new text end

new text begin (1) the scaled drawing accurately depicts all information required by this subdivision;
and
new text end

new text begin (2) the work was undertaken by, or reviewed and approved by, the certifying land
surveyor.
new text end

new text begin (b) The scaled drawing shall show:
new text end

new text begin (1) the dimensions and location of all existing material structural improvements and
roadways;
new text end

new text begin (2) the extent of any encroachments by or upon any portion of the land;
new text end

new text begin (3) the location and dimensions of all recorded easements within the land burdening any
portion of the land;
new text end

new text begin (4) the distance and direction between noncontiguous parcels of real estate;
new text end

new text begin (5) the location and dimensions of the front, rear, and side boundaries of each lot that a
member of the cooperative or nonprofit corporation has a right to occupy and that lot's
unique lot number; and
new text end

new text begin (6) the legal description of the land.
new text end

Sec. 2.

Minnesota Statutes 2018, section 273.125, subdivision 8, is amended to read:


Subd. 8.

Manufactured homes; sectional structures.

(a) In this section, "manufactured
home" means a structure transportable in one or more sections, which is built on a permanent
chassis, and designed to be used as a dwelling with or without a permanent foundation when
connected to the required utilities, and contains the plumbing, heating, air conditioning, and
electrical systems in it. Manufactured home includes any accessory structure that is an
addition or supplement to the manufactured home and, when installed, becomes a part of
the manufactured home.

(b) Except as provided in paragraph (c), a manufactured home that meets each of the
following criteria must be valued and assessed as an improvement to real property, the
appropriate real property classification applies, and the valuation is subject to review and
the taxes payable in the manner provided for real property:

(1) the deleted text beginowner of the unit holdsdeleted text end title to the land on which it is situatednew text begin is held by: (i) the
owner of the unit; or (ii) a Minnesota nonprofit corporation or a Minnesota cooperative to
which the owner is a member
new text end;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34,
and rules adopted under those sections, or is affixed to the land like other real property in
the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(c) A manufactured home that meets each of the following criteria must be assessed at
the rate provided by the appropriate real property classification but must be treated as
personal property, and the valuation is subject to review and the taxes payable in the manner
provided in this section:

(1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is
located in a manufactured home park but is not the homestead of the park owner;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code contained in sections 327.31 to
327.34, and the rules adopted under those sections, or is affixed to the land like other real
property in the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(d) Sectional structures must be valued and assessed as an improvement to real property
if the owner of the structure holds title to the land on which it is located or is a qualifying
lessee of the land under section 273.19. In this paragraph "sectional structure" means a
building or structural unit that has been in whole or substantial part manufactured or
constructed at an off-site location to be wholly or partially assembled on site alone or with
other units and attached to a permanent foundation.

(e) The commissioner of revenue may adopt rules under the Administrative Procedure
Act to establish additional criteria for the classification of manufactured homes and sectional
structures under this subdivision.

(f) A storage shed, deck, or similar improvement constructed on property that is leased
or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer
is taxable as provided in this section. In the case of property that is leased or rented as a site
for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered
personal property under this paragraph is taxable only if its total estimated market value is
over $10,000. The property is taxable as personal property to the lessee of the site if it is
not owned by the owner of the site. The property is taxable as real estate if it is owned by
the owner of the site. As a condition of permitting the owner of the manufactured home,
sectional structure, park trailer, or travel trailer to construct improvements on the leased or
rented site, the owner of the site must obtain the permanent home address of the lessee or
user of the site. The site owner must provide the name and address to the assessor upon
request.