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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1991 

                         CHAPTER 26-S.F.No. 154 
           An act relating to manufactured home parks; providing 
          for notice and right to purchase for conversion or the 
          closing of a park under certain circumstances; 
          amending Minnesota Statutes 1990, section 327C.095, 
          subdivision 1, and by adding subdivisions; proposing 
          coding for new law in Minnesota Statutes, chapter 327C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 327C.095, 
subdivision 1, is amended to read: 
    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 where the 
residential use is being converted.  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 1990, section 327C.095, is 
amended by adding a subdivision 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 information.  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 500.24, subdivision 6, paragraph (d). 
    Sec. 3.  Minnesota Statutes 1990, section 327C.095, is 
amended by adding a subdivision to read: 
    Subd. 7.  [INTENT TO CONVERT USE OF PARK AFTER PURCHASE.] 
If the purchaser of a manufactured home park decides to convert 
the park to another use within one year after the purchase of 
the park, the purchaser must offer the park for purchase by the 
residents of the park.  For purposes of this subdivision, the 
date of purchase is the date of the transfer of the title to the 
purchaser.  The purchaser must provide a resident of each 
manufactured home with a written notice of the intent to close 
the park and all of 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 45 days to execute an 
agreement for the purchase of the park at a cash price equal to 
the original purchase price paid by the purchaser plus any 
documented expenses relating to the acquisition and improvement 
of the park property, together with any increase in value due to 
appreciation of the park.  The purchaser must execute the 
purchase agreement at the price specified in this subdivision 
and pay the cash price within 90 days of the date of the 
purchase agreement.  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. 
     Sec. 4.  Minnesota Statutes 1990, section 327C.095, is 
amended by adding a subdivision to read: 
    Subd. 8.  [REQUIRED FILING OF NOTICE.] Subdivisions 6 and 7 
apply to manufactured home parks upon which notice has been 
filed 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)"
    Sec. 5.  Minnesota Statutes 1990, section 327C.095, is 
amended by adding a subdivision to read: 
    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. 
     Sec. 6.  Minnesota Statutes 1990, section 327C.095, is 
amended by adding a subdivision to read: 
    Subd. 10.  [EXCLUSION.] Subdivisions 6 and 7 do not apply 
to: 
    (1) a conveyance of an interest in a manufactured home park 
incidental to the financing of the manufactured home park; 
    (2) a conveyance by a mortgagee subsequent to foreclosure 
of a mortgage or a deed given in lieu of a foreclosure; or 
    (3) a purchase of a manufactured home park by a 
governmental entity under its power of eminent domain. 
    Sec. 7.  Minnesota Statutes 1990, section 327C.095, is 
amended by adding a subdivision to read: 
    Subd. 11.  [AFFIDAVIT OF COMPLIANCE.] After a park is sold, 
a park owner or other person with personal knowledge may file 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 or that subdivisions 6 and 7 are not 
applicable.  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 insurance company or attorney who prepares, 
furnishes, or examines evidence of title may rely on the truth 
and accuracy of statements made in the affidavit and is not 
required to inquire further as to the park owner's compliance 
with subdivisions 6 and 7.  When an affidavit is filed, 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 title. 
    Sec. 8.  [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 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. 
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. 
    Presented to the governor April 15, 1991 
    Signed by the governor April 17, 1991, 2:59 p.m.