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Minnesota Legislature

Office of the Revisor of Statutes

SF 2554

as introduced - 91st Legislature (2019 - 2020) Posted on 03/18/2019 02:08pm

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

Current Version - as introduced

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A bill for an act
relating to housing; making changes to the manufactured home park relocation
trust fund; amending Minnesota Statutes 2018, section 327C.095, subdivisions 1,
2, 3, 4, 12, 13.

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

Section 1.

Minnesota Statutes 2018, section 327C.095, subdivision 1, is amended to read:


Subdivision 1.

Conversion of use; minimum notice.

new text begin(a) new text endAt least deleted text beginninedeleted text endnew text begin 12new text end 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. 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." A resident may not be required to vacate
until deleted text begin60deleted text endnew text begin 90new text end 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.

new text begin (b) Closure statements issued more than 24 months prior to the park closure must contain
a closure date. If the closure does not take place within 24 months and the original statement
does not contain a closure date, the statement must be reissued 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 end

Sec. 2.

Minnesota Statutes 2018, section 327C.095, subdivision 2, is amended to read:


Subd. 2.

Notice of hearing; proposed change in land use.

If the planned conversion
or cessation of operation requires a variance or zoning change, the deleted text beginmunicipalitydeleted text endnew text begin local
government authority
new text end must mail a notice at least ten days before the hearing to a resident
of each manufactured home in the park stating the time, place, and purpose of the public
hearing. The park owner shall provide the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end with a
list of the names and addresses of at least one resident of each manufactured home in the
park at the time application is made for a variance or zoning change.

Sec. 3.

Minnesota Statutes 2018, section 327C.095, subdivision 3, is amended to read:


Subd. 3.

Closure statement.

Upon receipt of the closure statement from the park owner,
the local planning agency shall submit the closure statement to the governing body of the
deleted text begin municipalitydeleted text endnew text begin local government authoritynew text end and request the governing body to schedule a public
hearing. The deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end must mail a notice at least ten days
before the hearing to a resident of each manufactured home in the park stating the time,
place, and purpose of the public hearing. The park owner shall provide the deleted text beginmunicipalitydeleted text endnew text begin
local government authority
new text end with a list of the names and addresses of at least one resident
of each manufactured home in the park at the time the closure statement is submitted to the
local planning agency.

Sec. 4.

Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:


Subd. 4.

Public hearing; relocation compensation; neutral third party.

new text begin(a) new text endThe
governing body of the affected deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end 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. 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.35 as
compensation for reasonable relocation costs under subdivision 13, paragraphs (a) and (e).

new text begin (b) new text endThe governing body of the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end may also require
that other parties, including the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end, but excluding the
park owner or its purchaser, involved in the park closing provide additional compensation
to residents to mitigate the adverse financial impact of the park closing upon the residents.

new text begin (c) new text endAt the public hearing, the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end shall appoint a
neutral third party, to be agreed upon by both the manufactured home park owner and
manufactured home owners, whose hourly cost must be reasonable and paid from the
Minnesota manufactured home relocation trust fund. The neutral third party shall act as a
paymaster and arbitrator, with decision-making authority to resolve any questions or disputes
regarding any contributions or disbursements to and from the Minnesota manufactured
home relocation trust fund by either the manufactured home park owner or the manufactured
home owners. If the parties cannot agree on a neutral third party, the deleted text beginmunicipality willdeleted text endnew text begin local
government authority shall
new text end make a determination.

new text begin (d) At the public hearing, the governing body of the local government authority shall
make a determination if any ordinance was in effect on May 26, 2007, that would provide
compensation to displaced residents and provide this information to the third party neutral
to determine the applicable amount of compensation under subdivision 13, paragraph (f).
new text end

Sec. 5.

Minnesota Statutes 2018, 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 commissioner of management and budget 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, 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.

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than deleted text begin$1,000,000deleted text endnew text begin $3,000,000new text end as of June 30 of each year, the commissioner of
management and budget 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 September 15 of that
year. The commissioner of management and budget shall deposit any payments in the
Minnesota manufactured home relocation trust fund. On or before July 15 of each year, the
commissioner of management and budget 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, and a sample form for the park owners to collect information
on which park residents have been accounted for. 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. Park owners 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 deduct from the assessment accordingly.

(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. 6.

Minnesota Statutes 2018, 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 deleted text begin25-miledeleted text endnew text begin 50-milenew text end 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 deleted text beginand that
the annual $15 payments to the Minnesota manufactured home relocation trust fund have
been paid when due
deleted text end; 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) 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 commissioner of management and budget 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 $1,000. 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) deleted text beginThe Minnesota Housing Finance Agency must make a determination of the amount
of payment a manufactured home owner would have been entitled to under a local ordinance
in effect on May 26, 2007.
deleted text end 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) The agency shall report to the chairs of the senate Finance Committee and house of
representatives Ways and Means Committee by January 15 of each year 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 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.