Read the full stored bill text
A bill for an act
relating to housing; creating eligibility for assistance to manufactured home owners
experiencing economic displacement; eliminating maximum threshold for assistance
through the manufactured home relocation trust fund; amending Minnesota Statutes
2024, sections 327C.015, by adding a subdivision; 327C.03, subdivision 6;
327C.095, subdivision 13; Minnesota Statutes 2025 Supplement, section 327C.095,
subdivision 12.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 327C.015, is amended by adding a subdivision
to read:
new text begin
Subd. 4a.
new text end
new text begin
Economic displacement.
new text end
new text begin
"Economic displacement" means an event that
causes a manufactured home owner to relocate and the decision to relocate is attributable
to the lot rent of the manufactured home owner increasing by either: (1) an amount exceeding
ten percent in one year or 20 percent over a period of three years; or (2) 30 percent over the
adjusted income of the manufactured home owner's annual income. For purposes of this
subdivision, the lot rent includes any increase in utility and service charges over the periods
of time indicated in the preceding sentence.
new text end
Sec. 2.
Minnesota Statutes 2024, section 327C.03, subdivision 6, is amended to read:
Subd. 6.
Payment to the Minnesota manufactured home relocation trust fund.
In
the event a park owner has been assessed under section
327C.095, subdivision 12
, paragraph
(c), the park owner may collect the
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
annual payment required by section
327C.095,
subdivision 12
, for participation in the relocation trust fund, as a lump sum or, along with
monthly lot rent, a fee of no more than $1.25 per month to cover the cost of participating
in the relocation trust fund. The $1.25 fee must be separately itemized and clearly labeled
"Minnesota manufactured home relocation trust fund."
Sec. 3.
Minnesota Statutes 2025 Supplement, section 327C.095, subdivision 12, is amended
to read:
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,
deleted text begin
or
deleted text end
cessation of use of
the land as a manufactured home park,
new text begin
or economic displacement as defined in section
327C.015, subdivision 4a,
new text end
the manufactured park owner shall, upon the change in use, pay
to the Minnesota Housing Finance Agency 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;
(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.015, subdivision 14
; 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; or the owner of the manufactured home has not
paid the
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
assessment when due under paragraph (c).
(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than
deleted text begin
$2,000,000
deleted text end
new text begin
$.......
new text end
as of June 30 of each year, the Minnesota Housing Finance
Agency shall assess each manufactured home park owner by mail the total amount of
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
for each licensed lot in their park, payable on or before December 15 of that year.
Failure to notify and timely assess the manufactured home park owner by July 31 of any
year shall waive the assessment and payment obligations of the manufactured home park
owner for that year. Together with said assessment notice, each year the Minnesota Housing
Finance Agency shall prepare and distribute to park owners a letter explaining whether
funds are being collected for that year, information about the collection, an invoice for all
licensed lots, a notice for distribution to the residents, and a sample form for the park owners
to collect information on which park residents and lots have been accounted for. The agency
must also include information in the letter about the tax credit available for sales of
manufactured home parks to cooperatives in section
290.0694
and about notice requirements
for unsolicited sales in section
327C.097
. The agency may include additional information
in the letter about programs and resources available to manufactured home park residents
and owners. In a font no smaller than 14-point, the notice provided by the Minnesota Housing
Finance Agency for distribution to residents by the park owner will include the payment
deadline of October 31 and the following language: "THIS IS NOT AN OPTIONAL FEE.
IF YOU OWN A MANUFACTURED HOME ON A LOT YOU RENT IN A
MANUFACTURED HOME PARK, AND YOU RESIDE IN THAT HOME, YOU MUST
PAY WHEN PROVIDED NOTICE." If assessed under this paragraph, the park owner may
recoup the cost of the
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
assessment as a lump sum or as a monthly fee of no more
than $1.25 collected from park residents together with monthly lot rent as provided in section
327C.03, subdivision 6
. If, by September 15, a park owner provides the notice to residents
for the
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
lump sum, a park owner may adjust payment for lots in their park that are
vacant or otherwise not eligible for contribution to the trust fund under section
327C.095
,
subdivision 12, paragraph (b), and for park residents who have not paid the
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
assessment when due to the park owner by October 31, and deduct from the assessment
accordingly. The Minnesota Housing Finance Agency shall deposit any payments in the
Minnesota manufactured home relocation trust fund and maintain an annual record for each
manufactured home park of the amount received for that park and the number of deductions
made for each of the following reasons: vacant lots, ineligible lots, and uncollected fees.
(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. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.
Sec. 4.
Minnesota Statutes 2024, section 327C.095, subdivision 13, is amended to read:
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,
deleted text begin
or
deleted text end
cessation of use of the land as a manufactured home park under subdivision 1,
new text begin
or economic
displacement as defined in section 327C.015, subdivision 4a,
new text end
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 50-mile radius of the park that is being closed
deleted text begin
, up to a
maximum of $7,000 for a single-section and $12,500 for a multisection manufactured home
deleted text end
.
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
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
payment to the Minnesota manufactured home relocation trust fund
has 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) The neutral third party shall promptly process all payments for completed applications
within 14 days. 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. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute.
deleted text begin
The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home.
deleted text end
The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home
new text begin
, or ....... percent of the appraised value, whichever is
greater
new text end
. 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
deleted text begin
$15
deleted text end
new text begin
$.......
new text end
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 Minnesota Housing Finance Agency 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 $1,500. 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) 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)(1) By October 15, 2019, the Minnesota Housing Finance Agency shall post on its
website and report to the chairs of the senate Finance Committee and house of representatives
Ways and Means Committee on the Minnesota manufactured home relocation trust fund,
including the account balance, payments to claimants, the amount of any advances to the
fund, the amount of any insufficiencies encountered during the previous calendar year, and
any itemized administrative charges or expenses deducted from the trust fund balance. 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.
(2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its website
and report to the chairs of the senate Finance Committee and house of representatives Ways
and Means Committee by October 15 of each year on the Minnesota manufactured home
relocation trust fund, including the aggregate account balance, the aggregate assessment
payments received, summary information regarding each closed park including the total
payments to claimants and payments received from each closed park, the amount of any
advances to the fund, the amount of any insufficiencies encountered during the previous
fiscal year, reports of neutral third parties provided pursuant to subdivision 4, and any
itemized administrative charges or expenses deducted from the trust fund balance, all of
which should be reconciled to the previous year's trust fund balance. 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.