Minnesota Legislature
SF 2416
as introduced - 90th Legislature (2017 - 2018) Posted on 05/22/2017 09:38am
Current Version - as introduced
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A bill for an act
relating to manufactured housing; modifying requirements for manufactured home
park closings; modifying manufactured home park owner requirements prior to
sale of the manufactured home park; authorizing rulemaking; amending Minnesota
Statutes 2016, sections 327C.095, subdivisions 1, 4, 6, 11; 327C.096; repealing
Minnesota Statutes 2016, section 327C.095, subdivisions 8, 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 327C.095, subdivision 1, is amended to read:
Subdivision 1.
Conversion of use; minimum notice.
At least deleted text begin ninedeleted text end new 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 60 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.
Sec. 2.
Minnesota Statutes 2016, section 327C.095, subdivision 4, is amended to read:
Subd. 4.
Public hearing; relocation compensation; neutral third party.
new text begin Within 60
days following receipt of the closure statement under subdivision 3, new text end the governing body of
the affected municipality 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).
The governing body of the municipality may also require that other parties, including
the municipality, 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.
At the public hearing, the municipality 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 municipality will make a determination.
Sec. 3.
Minnesota Statutes 2016, section 327C.095, subdivision 6, is amended to read:
Subd. 6.
Intent to convert use of park at time of purchase.
Before the execution of
an agreement to purchase a manufactured home park, the purchaser must notify the park
owner, in writing, if the purchaser intends to close the manufactured home park or convert
it to another use within one year of the execution of the agreement. The park owner shall
provide a resident of each manufactured home with a 45-day written notice of the purchaser's
intent to close the park or convert it to another use. The notice must state that the park owner
will provide information on the cash price and the terms and conditions of the purchaser's
offer to residents requesting the informationnew text begin within 48 hours after the request is receivednew text end .
The notice must be sent by first class mail to a resident of each manufactured home in the
park. The notice period begins on the postmark date affixed to the notice and ends 45 days
after it begins. During the notice period required in this subdivision, the owners of at least
51 percent of the manufactured homes in the park or a nonprofit organization which has the
written permission of the owners of at least 51 percent of the manufactured homes in the
park to represent them in the acquisition of the park shall have the right to meet the cash
price and execute an agreement to purchase the park for the purposes of keeping the park
as a manufactured housing community. The park owner must accept the offer if it meets
the cash price and the same terms and conditions set forth in the purchaser's offer except
that the seller is not obligated to provide owner financing. For purposes of this section, cash
price means the cash price offer or equivalent cash offer as defined in section 500.245,
subdivision 1, paragraph (d).
Sec. 4.
Minnesota Statutes 2016, section 327C.095, subdivision 11, is amended to read:
Subd. 11.
Affidavit of compliance.
new text begin (a) new text end After a park is sold, a park owner or other person
with personal knowledge may record an affidavit with the county recorder or registrar of
titles in the county in which the park is located certifying compliance with subdivision 6 or
7 deleted text begin or that subdivisions 6 and 7 are not applicabledeleted text end .new text begin The affidavit must state that:
new text end
new text begin
(1) notice under subdivision 6 or 7 was provided;
new text end
new text begin
(2) the time during which any offer may be made under subdivision 6 or 7 has expired;
and
new text end
new text begin
(3) an eligible offer under subdivision 6 or 7 was not received.
new text end
new text begin
(b) An affidavit submitted under paragraph (a) must contain copies of all notices given
related to the park and offers received from those eligible to purchase the park under
subdivision 6 or 7.
new text end
new text begin (c) new text end The affidavit may be used as proof of the facts stated in the affidavit. A person
acquiring an interest in a park or a title insurer or attorney who prepares, furnishes, or
examines evidence of title may deleted text begin rely ondeleted text end new text begin verifynew text end the truth and accuracy of statements made in
the affidavit deleted text begin and is not required to inquire further as to the park owner's compliance with
subdivisions 6 and 7. When an affidavit is recorded, the right to purchase provided under
subdivisions 6 and 7 terminate, and if registered property, the registrar of titles shall delete
the memorials of the notice and affidavit from future certificates of titledeleted text end .
Sec. 5.
Minnesota Statutes 2016, section 327C.096, is amended to read:
327C.096 NOTICE OF SALEnew text begin ; NEGOTIATING SALE WITH INTERESTED
RESIDENTSnew text end .
new text begin Subdivision 1. new text end
new text begin Advance notice. new text end
new text begin (a) new text end 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
realtor 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. deleted text begin 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.deleted text end new text begin
No later than ten days after entering into an agreement for sale or lease of a manufactured
home park, the park owner shall provide written advance notice of the owner's intention to
sell or lease the park:
new text end
new text begin
(1) by first class mail, all to be mailed on the same day to each resident of the park;
new text end
new text begin
(2) to the Minnesota Housing Finance Agency by certified mail, with return receipt
requested; and
new text end
new text begin
(3) to a list of Minnesota nonprofit organizations that have registered with the Minnesota
Housing Finance Agency as being recipients of the correspondence.
new text end
new text begin
(b) The owner shall include the recipients' list with the advance notice. Any sale, lease,
or other transfer shall be conditioned on affording residents a 60-day purchase opportunity
as required by this section.
new text end
new text begin
(c) To meet the conditions of this subdivision, in addition to including the list, this
advance notice shall advise residents of the three timelines established in subdivisions 2
and 3 that residents may:
new text end
new text begin
(1) within ten days of the postmark date of the advance notice, submit a letter expressing
interest in purchase;
new text end
new text begin
(2) request and expect to receive within three days of the park owner's receipt of the
letter of interest, all terms and conditions of the purchase or lease agreement; and
new text end
new text begin
(3) tender a purchase offer within 60 days from the postmark date of the advance notice
and the owner must respond and negotiate in good faith.
new text end
new text begin Subd. 2. new text end
new text begin Letter of interest and disclosure of conditions for proposed sale. new text end
new text begin
If any
resident is interested in competing to purchase the park, the interested resident must so
notify the park owner by written letter within ten days of the postmark date of the notice
required in subdivision 1. If no resident notifies the park owner, then the park owner has
no further duties under this section. If any resident does notify the park owner, then within
three days after receipt of a letter of interest, the park owner must include the conditions
together with the same information as the park owner would make available to another
potential buyer, including three years of income and expenses on the property, subject to
any reasonable confidentiality agreement requested by the park owner.
new text end
new text begin Subd. 3. new text end
new text begin Offer. new text end
new text begin
(a) Interested residents on behalf of a majority of residents in the park
as evidenced by a signed petition reflecting 51 percent of residents in the community or a
nonprofit organization named as residents' agent, evidenced by a petition, shall have the
opportunity to make a competing offer within 60 days from the postmark date of the notice.
A nonprofit organization may act on behalf of the residents if the organization has a petition
authorizing the nonprofit to represent the residents signed by 51 percent of the residents in
the community.
new text end
new text begin
(b) The park owner shall consider any offer and negotiate with the residents or residents'
agent in good faith. If the residents make an offer that is accepted, they shall have a
reasonable period beyond the 60-day period, if necessary, to obtain financing for the purchase.
new text end
new text begin Subd. 4. new text end
new text begin Rules. new text end
new text begin
The attorney general may adopt rules defining the duties of the parties
under this section with more specificity.
new text end
new text begin Subd. 5. new text end
new text begin Affidavit. new text end
new text begin
(a) Upon conclusion of the process described in subdivisions 1 to 3,
the park owner shall record with the county recorder or registrar of titles in the county where
the park is located an affidavit certifying that:
new text end
new text begin
(1) the park owner has complied with the requirements of this section, including a copy
of the notice sent to the homeowners of the park; or
new text end
new text begin
(2) the sale or lease of the manufactured home park is exempt from this section pursuant
to subdivision 6.
new text end
new text begin
(b) An affidavit filed in accord with this subdivision shall be presumptive evidence of
compliance for purposes of good title in the hands of a bona fide purchaser.
new text end
new text begin Subd. 6. new text end
new text begin Penalty. new text end
new text begin
A park owner who sells a park without complying with subdivisions
1 to 3 shall be liable to the residents in the aggregate amount of 40 percent of the sales price.
Residents may also bring suit to enforce the provisions of this section.
new text end
new text begin Subd. 7. new text end
new text begin Applicability. new text end
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. deleted text begin 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.
deleted text end
Sec. 6. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 327C.095, subdivisions 8 and 9,
new text end
new text begin
are repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: 17-4663
327C.095 PARK CLOSINGS.
Subd. 8.
Required filing of notice.
Subdivisions 6 and 7 apply to manufactured home parks upon which notice has been recorded with the county recorder or registrar of titles in the county where the manufactured home park is located. Any person may file the notice required under this subdivision with the county recorder or registrar of titles. The notice must be in the following form:
"MANUFACTURED HOME PARK NOTICE
THIS PROPERTY IS USED AS A MANUFACTURED HOME PARK
.......................................
PARK OWNER
.......................................
.......................................
.......................................
LEGAL DESCRIPTION OF PARK
.......................................
COOPERATIVE ASSOCIATION (IF APPLICABLE)"
Subd. 9.
Effect of noncompliance.
If a manufactured home park is finally sold or converted to another use in violation of subdivision 6 or 7, the residents do not have any continuing right to purchase the park as a result of that sale or conversion. A violation of subdivision 6 or 7 is subject to section 8.31, except that relief shall be limited so that questions of marketability of title shall not be affected.