2007 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. 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.
    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 compensation; neutral third party. 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.
    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.
    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 finance 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, or has failed to pay
the annual $12 payments to the Minnesota manufactured home relocation trust fund when due;
    (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) Owners of manufactured homes who rent lots in a manufactured home park shall make
annual payments to the park owner, to be deposited in the Minnesota manufactured home
relocation trust fund under section 462A.35, in the amount of $12 per year, per manufactured
home, payable on August 15 of each year. On or before July 15 of each year, the commissioner of
finance shall prepare and post on the department's Web site a generic invoice and cover letter
explaining the purpose of the Minnesota manufactured home relocation trust fund, the obligation
of each manufactured home owner to make an annual $12 payment into the fund, the due date,
and the need to pay to the park owner for collection, and a warning, in 14-point font, that if the
annual payments are not made when due, the manufactured home owner will not be eligible for
compensation from the fund if the manufactured home park closes. The park owner shall receive,
record, and commingle the payments and forward the payments to the commissioner of finance
by September 15 of each year, with a summary by the park owner, certifying the name, address,
and payment amount of each remitter, and noting the names and address of manufactured home
owners who did not pay the $12 annual payment, sent to both the commissioner of finance and the
commissioner of the Minnesota Housing Finance Agency. The commissioner of finance shall
deposit the payments in the Minnesota manufactured home relocation trust fund.
    (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.
    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 25-mile radius of the park that is being closed, up to a maximum of $4,000
for a single-section and $8,000 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 and that
the annual $12 payments to the Minnesota manufactured home relocation trust fund have been
paid when due; 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. The amount that may be reimbursed under the fund is a maximum of
$5,000 for a single section and $9,000 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 $12
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 finance 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) The 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. 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, and the amount of any insufficiencies encountered
during the previous calendar year. 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.
    Subd. 14. Payment adjustment for smaller manufactured home parks. The total
contribution to the fund under section 462A.35 paid by the park owner under subdivision 12,
paragraph (a), must not exceed 20 percent of the sale price, or if no sale price is available, the
assessed value of the manufactured home park, except that if the sale price, or, if there is no sale
price, the assessed value, is:
    (1) less than $100,000, the manufactured home park owner's contribution to the fund must
not exceed five percent of the sale price of the manufactured home park;
    (2) less than $200,000, the owner's contribution to the fund must not exceed eight percent of
the sale price of the manufactured home park;
    (3) less than $300,000, the owner's contribution to the fund must not exceed ten percent of
the sale price of the manufactured home park; and
    (4) less than $500,000, the owner's contribution to the fund must not exceed 15 percent of
the sale price of the manufactured home park.
    Subd. 15. Preemption of local ordinances. Sections 327C.095, subdivisions 1, 4, and 12
to 16; 462A.21, subdivision 31; and 462A.35 preempt and supersede a township, county, or
statutory or home rule charter city ordinance relating to the relocation or buyout payments paid
due to a change of use or closure of manufactured home communities. A township, county, or
statutory or home rule charter city must not adopt an ordinance requiring more compensation by
the manufactured home park owners or its purchaser than what is provided for in this statute.
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; 2007 c 141 s 1-6