Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 179-H.F.No. 574 
           An act relating to manufactured homes; defining terms; 
          clarifying the termination of a park lease for 
          substantial annoyance to other residents; allowing 
          certain new or amended rule violations to be cured; 
          regulating park closings; requiring a closure 
          statement; providing for a public hearing; clarifying 
          remedies; requiring a feasibility study by the 
          metropolitan council; amending Minnesota Statutes 
          1986, sections 327C.01, by adding subdivisions; 
          327C.02, subdivision 5, and by adding a subdivision; 
          327C.09, subdivisions 1, 4, and 5; and 327C.11, 
          subdivision 2; proposing coding for new law in 
          Minnesota Statutes, chapter 327C; repealing Minnesota 
          Statutes 1986, section 327C.09, subdivision 9. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 327C.01, is 
amended by adding a subdivision to read:  
    Subd. 1a.  [CLOSURE STATEMENT.] "Closure statement" means a 
statement prepared by the park owner clearly stating that the 
park is closing, addressing the availability, location, and 
potential costs of adequate replacement housing within a 25 mile 
radius of the park that is closing and the probable relocation 
costs of the manufactured homes located in the park.  
    Sec. 2.  Minnesota Statutes 1986, section 327C.01, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [DISPLACED RESIDENT.] "Displaced resident" means 
a resident of an owner-occupied manufactured home who rents a 
lot in a manufactured home park, including the members of the 
resident's household, as of the date the park owner submits a 
closure statement to the local planning agency. 
    Sec. 3.  Minnesota Statutes 1986, section 327C.01, is 
amended by adding a subdivision to read: 
    Subd. 7a.  [PLANNING AGENCY.] "Planning agency" means the 
planning commission or the planning department of a municipality 
as defined in section 462.352, the planning and zoning 
commission of a town as defined in section 366.17, or the 
planning commission of a county, as defined in section 394.30, 
or if the municipality does not have a planning agency, the 
governing body of the municipality. 
    Sec. 4.  Minnesota Statutes 1986, section 327C.02, is 
amended by adding a subdivision to read: 
    Subd. 2a.  Notwithstanding section 566.09, in an action to 
recover possession of land for violation of a new or amended 
rule, if the court finds that the rule is reasonable or is not a 
substantial modification, the court shall issue an order in 
favor of the plaintiff for costs.  The court shall order the 
defendant to comply with the rule within ten days.  If the 
resident fails to comply with the rule at any time after the 
time period provided by the court, the park owner may, upon a 
showing to the court that three days' written notice was given 
to the resident, move the court for writ of restitution to 
recover possession of the lot. 
    Sec. 5.  Minnesota Statutes 1986, section 327C.02, 
subdivision 5, is amended to read: 
    Subd. 5.  [WRITTEN NOTICE REQUIRED.] A prospective 
resident, before being asked to sign a rental agreement, must be 
given the following notice printed verbatim in boldface type of 
a minimum size of ten points.  The notice and the safety feature 
disclosure form required under section 327C.07, subdivision 3a, 
must be posted in a conspicuous and public location in the park: 

                           "IMPORTANT NOTICE 
    State law provides special rules for the owners and 
residents of manufactured home parks. 
    You may keep your home in the park as long as the park is 
in operation and you meet your financial obligations, obey state 
and local laws which apply to the park, obey reasonable park 
rules, do not substantially annoy or endanger the other 
residents or substantially endanger park personnel and do not 
substantially damage the park premises.  You may not be evicted 
or have your rent increased or your services cut for complaining 
to the park owner or to a governmental official. 
    If you receive an eviction notice and do not leave the 
park, the park owner may take you to court.  If you lose in 
court a sheriff may remove you and your home from the park 
within seven days.  Or, the court may require you to leave the 
park within seven days but give you 60 days to sell the home 
within the park. 
     If you receive an eviction notice for a new or amended rule 
and the court finds the rule to be reasonable and not a 
substantial modification of your original agreement, the court 
will not order you to leave but will order you to comply with 
the rule within ten days.  If you do not comply within the time 
given or if you violate the rule at a later time, you will be 
subject to eviction.  
    All park rules and policies must be reasonable.  Your rent 
may not be increased more than twice a year.  Changes made in 
park rules after you become a park resident will not apply to 
you if they substantially change your original agreement. 
    The park may not charge you an entrance fee.  
    The park may require a security deposit, but the deposit 
must not amount to more than two months rent. 
    You have a right to sell the home in the park.  But the 
sale is not final until the park owner approves the buyer as a 
new resident, and you must advise in writing anyone who wants to 
buy your home that the sale is subject to final approval by the 
park owner.  You must also disclose in writing certain safety 
information about your home to anyone who wants to buy it in the 
park.  You must give this information to the buyer before the 
sale, in writing, on the form that is attached to this notice.  
You must completely and accurately fill out the form and you and 
the buyer should each keep a copy.  
    Your rental agreement and the park rules contain important 
information about your rights and duties.  Read them carefully 
and keep a copy. 
    For further information concerning your rights, consult a 
private attorney.  The state law governing the rental of lots in 
manufactured home parks may also be enforced by the Minnesota 
Attorney General." 
    In addition, the safety feature disclosure form required 
under section 327C.07, subdivision 3a, must be attached to the 
notice.  
    Sec. 6.  Minnesota Statutes 1986, section 327C.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CAUSE REQUIRED.] A park owner may recover 
possession of land upon which a manufactured home is situated 
only for a reason specified in this section or section 10. 
    Sec. 7.  Minnesota Statutes 1986, section 327C.09, 
subdivision 4, is amended to read: 
    Subd. 4.  [RULE VIOLATIONS.] The resident fails to comply 
with a rule within 30 days after receiving written notice of the 
alleged noncompliance, except the 30 day notice requirement does 
not apply to nonpayment of rent.  Loud noise created by 
residents, guests, or their equipment is a rule violation.  
After written notice has been provided for two prior incidents, 
loud noise is a violation of subdivision 5. 
    Sec. 8.  Minnesota Statutes 1986, section 327C.09, 
subdivision 5, is amended to read:  
    Subd. 5.  [ENDANGERMENT; SUBSTANTIAL ANNOYANCE.] The 
resident acts in the park in a manner which endangers other 
residents or park personnel, causes substantial damage to the 
park premises or substantially annoys other residents, and has 
received 30 days written notice to vacate, except the park owner 
may require the resident to vacate immediately if the resident 
violates this subdivision a second or subsequent time after 
receipt of the notice.  To be effective the notice must specify 
the time, date, and nature of the alleged annoyance, damage, or 
endangerment.  A park owner seeking to evict pursuant to this 
subdivision need not produce evidence of a criminal conviction, 
even if the alleged misconduct constitutes a criminal offense.  
    Sec. 9.  Minnesota Statutes 1986, section 327C.11, 
subdivision 2, is amended to read: 
    Subd. 2.  [WAIVER BY ACCEPTING RENT.] A park owner who 
gives a resident a notice as provided in section 327C.09, 
subdivisions 3, 4, 6, or 8 or 9, or section 10, does not waive 
the notice by afterwards accepting rent.  Acceptance of rent for 
a period after the expiration of a final notice to quit waives 
that notice unless the parties agree in writing after service of 
the notice that the notice continues in effect.  
    Sec. 10.  [327C.095] [PARK CLOSINGS.] 
    Subdivision 1.  [CONVERSION OF USE; MINIMUM NOTICE.] At 
least nine 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 local planning agency and a 
copy to a resident of each manufactured home.  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. 
    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 municipality 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 
municipality 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. 
    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 
municipality and request the governing body to schedule a public 
hearing.  The municipality 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 municipality 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. 
    Subd. 4.  [PUBLIC HEARING; RELOCATION COSTS.] The governing 
body of the 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.  Before any 
change in use or cessation of operation and as a condition of 
the change, the governing body may require a payment by the park 
owner to be made to the displaced resident for the reasonable 
relocation costs.  If a resident cannot relocate the home to 
another manufactured home park within a 25 mile radius of the 
park that is being closed, the resident is entitled to 
relocation costs based upon an average of relocation costs 
awarded to other residents.  
    The governing body of the municipality may also require 
that other parties, including the municipality, involved in the 
park closing provide additional compensation to residents to 
mitigate the adverse financial impact of the park closing upon 
the residents. 
    Subd. 5.  [PARK CONVERSIONS.] If the planned cessation of 
operation is for the purpose of converting the part of the park 
occupied by the resident to a condominium pursuant to chapter 
515A, the provisions of section 515A.4-110, except paragraph 
(a), shall apply.  The nine-month notice required by this 
section shall state that the cessation is for the purpose of 
conversion and shall set forth the rights conferred by this 
subdivision and section 515A.4-110, paragraph (b).  Not less 
than 120 days before the end of the nine months, the park owner 
shall serve upon the resident a form of purchase agreement 
setting forth the terms of sale contemplated by section 
515A.4-110, paragraph (b).  Service of that form shall operate 
as the notice described by section 515A.4-110, paragraph (a). 
    Sec. 11.  [STUDY REQUIRED.] 
    The metropolitan council shall conduct a study to determine 
the feasibility of establishing a metropolitan manufactured home 
park development fund.  The purpose of this fund would be to 
provide low interest development loans to persons interested in 
constructing manufactured home parks within the seven county 
metropolitan area.  The results of this study shall be forwarded 
to the legislature by January 1, 1988. 
    Sec. 12.  [REPEALER.] 
    Minnesota Statutes 1986, section 327C.09, subdivision 9, is 
repealed. 
    Approved May 20, 1987