2006 Minnesota Statutes

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 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. 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 common interest community pursuant
to chapter 515B, the provisions of section 515B.4-111, except subsection (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 515B.4-111,
subsection (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 515B.4-111, subsection (d). Service of that form shall operate as the notice described
by section 515B.4-111, subsection (a). This subdivision does not apply to the conversion of a
manufactured home park to a common interest community:
(1) that is a cooperative incorporated under chapter 308A or 308B;
(2) in which at least 90 percent of the cooperative's members are residents of the park at the
time of the conversion; and
(3) that does not require persons who are residents of the park at the time of the conversion
to become members of the cooperative.
    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 500.245, subdivision 1, paragraph (d).
    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.
    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.
    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.
    Subd. 11. Affidavit of compliance. 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 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 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 title.
History: 1987 c 179 s 10; 1991 c 26 s 1-7; 1997 c 126 s 6; 1999 c 11 art 3 s 10; 2005 c 4
s 62,63; 2006 c 200 s 1,2