Rent and utility payments, fees, and charges in manufactured home parks standards provision, certain safety inspections requirement provision, and sale of manufactured home parks sale provision modifications

A bill for an act

relating to housing; providing standards for rent and utility payments, fees, and

charges in manufactured home parks; requiring certain safety inspections;

modifying provisions for sale of manufactured home parks; modifying penalties;

amending Minnesota Statutes 2024, sections 327C.015, subdivision 13; 327C.03,

subdivision 3; 327C.04, subdivision 1, by adding a subdivision; 327C.06,

subdivisions 1, 3; 327C.097; 327C.15; proposing coding for new law in Minnesota

Statutes, chapter 327C; repealing Minnesota Statutes 2024, section 327C.096.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 327C.015, subdivision 13, is amended to read:

Subd. 13.

Representative acting on behalf of residents.

"Representative acting on

behalf of residents" means a representative who is authorized to represent residents in the

purchase of property for the purposes of this chapter, and has gained that authorization by

obtaining the signature of support from at least one resident who is a homeowner-signatory

to the home's lot lease agreement as defined by subdivision 14, from
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at least 51
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greater than

50
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percent of the occupied homes in a manufactured home park. The signature of a resident

who is a signatory to the home's lot lease agreement asserting that they are a resident of that

manufactured home park shall be presumptive evidence of the claim that the representative

is authorized to act on behalf of the resident and shall be exclusive to only one representative

acting on behalf of residents.

Sec. 2.

Minnesota Statutes 2024, section 327C.03, subdivision 3, is amended to read:

Subd. 3.

Rent.

All periodic rental payments charged to residents by the park owner shall

be uniform throughout the park, except that a higher rent may be charged to a particular

resident due to the larger size or location of the lot, or the special services or facilities

furnished by the park. A park owner may charge a reasonable fee for delinquent rent where

the fee is provided for in the rental agreement
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, except in no case may the fee exceed eight

percent of the delinquent rent payment
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. The fee shall be enforceable as part of the rent owed

by the resident. No park owner shall charge to a resident any fee, whether as part of or in

addition to the periodic rental payment, which is based on the number of persons residing

or staying in the resident's home, the number or age of children residing or staying in the

home, the number of guests staying in the home, the size of the home, the fact that the home

is temporarily vacant or the type of personal property used or located in the home. The park

owner may charge an additional fee for pets owned by the resident, but the fee may not

exceed $4 per pet per month. This subdivision does not prohibit a park owner from abating

all or a portion of the rent of a particular resident with special needs.

Sec. 3.

Minnesota Statutes 2024, section 327C.04, subdivision 1, is amended to read:

Subdivision 1.

Billing permitted.

A park owner who either provides utility service

directly to residents or who redistributes to residents utility service provided to the park

owner by a utility provider may charge the residents for that service, only if the charges

comply with this section.
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A park owner may not charge residents for costs of repairs by

utility providers or for costs imposed by utility providers for services provided in response

to reports of interruptions of utilities.
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Sec. 4.

Minnesota Statutes 2024, section 327C.04, is amended by adding a subdivision to

read:

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Subd. 7.

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Itemized billing required.

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A park owner must provide an itemized bill

separately that clearly labels each service or item charged to the resident.

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Sec. 5.

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[327C.041] ACCESS BY UTILITY PROVIDERS.

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In a park where residents receive utilities from a utility provider, either directly or through

redistribution by the park owner, the park owner must not deny access to a utility provider

seeking access for the purposes of repairing faulty or defective utility equipment or

investigating reports of an interruption of utilities. A resident may provide a utility provider

access to the park for these purposes.

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Sec. 6.

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[327C.051] HABITABILITY COVENANTS REGARDING TREES THAT

PRESENT SAFETY HAZARDS.

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(a) Park owner covenants under section 504B.161 include the trimming and care of trees

and the removal of unsound trees when the trees present safety hazards.

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(b) Within 14 days of receiving written notice from a resident that a tree or branch

presents a safety hazard, the park owner must either:

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(1) remove the tree or branch; or

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(2) receive an opinion on the safety of the tree or branch from an arborist who has

inspected the tree or branch in person.

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(c) If an arborist advises that a tree or branch presents a safety hazard, the park owner

must remove the tree or branch within five days of inspection by the arborist, unless the

arborist advises that it is not the appropriate season for removing the tree or branch. If an

arborist advises that a tree or branch presents a safety hazard but that it is not the appropriate

season for removing the tree or branch, the owner must schedule the removal to take place

during the appropriate season and must provide written notice to the resident of the scheduled

date of removal and of the reason for the delay.

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Sec. 7.

Minnesota Statutes 2024, section 327C.06, subdivision 1, is amended to read:

Subdivision 1.

Notice of rent increases required.

No increase in the amount of the

periodic rental payment due from a resident shall be valid unless the park owner gives the

resident 60 days' written notice of the increase.
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The notice must include the park owner's

reason for the rent increase.
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Sec. 8.

Minnesota Statutes 2024, section 327C.06, subdivision 3, is amended to read:

Subd. 3.

Rent increases limited.

A park owner may impose only
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two
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one
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rent
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increases
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increase
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on a resident in any 12-month period.
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A rent increase must be reasonable. A rent

increase is presumed to be unreasonable if the percentage of the increase exceeds three

percent of the rent per month in the prior year. A park owner may prove a rent increase is

reasonable by clear and convincing evidence that the increase is necessary for the health

and safety of the residents. A rent increase approved by a resident-owned cooperative formed

under chapter 308A or 308B is presumptively reasonable.
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Sec. 9.

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[327C.065] PAYMENT OF RENT; DIGITAL PAYMENT PLATFORMS.

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Subdivision 1.

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Application.

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This section applies to park owners who require or permit

residents to use a digital payment platform to pay rent, fees, and other charges.

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Subd. 2.

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Definitions.

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(a) For purposes of this section, the following terms have the

meanings given.

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(b) "Alternative means of payment" means a method of payment other than the use of

a digital payment platform and includes payment by check or cash.

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(c) "Digital payment platform" means an electronic application or system that permits

a user to conduct financial transactions. Digital payment platform includes electronic funds

transfers.

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(d) "Electronic funds transfers" means a transfer of funds, other than a transaction

originated by check, draft, or similar paper instrument, that is initiated through an electronic

terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or

authorizing a financial institution to debit or credit a consumer's account through the use of

an automated clearing house system or alternative payment system.

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Subd. 3.

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Form of payment.

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A park owner must offer each resident an alternative to

using a digital payment platform to pay rent, fees, or other charges. No fee may be charged

to a resident to use the digital payment platform or any alternative means of payment.

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Subd. 4.

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Digital payment platform.

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(a) The park owner must ensure that the following

information is readily viewable and accessible to the resident on the digital payment platform

or through a means that does not rely on the use of the digital payment platform:

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(1) an itemized list of all current information on the rent, fees, or other charges assessed

that correspond to the charges for which the resident is responsible, and all payment received;

and

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(2) communications to date between the resident and the park owner related to the

payment of rent, fees, or other charges.

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(b) A park owner must provide the resident with a telephone number to call if, for any

reason, the digital payment platform or a system used by the park owner to collect an

alternative means of payment is unavailable for use by the resident.

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Subd. 5.

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Adverse action prohibited.

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(a) A park owner is prohibited from taking any

adverse action, including filing an eviction action or assessing any late fees, when payment

of rent, fees, or other charges is not timely because the digital payment platform is out of

service or a system used by the park owner to collect an alternative means of payment is

unavailable.

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(b) It is an affirmative defense to an eviction action brought based on nonpayment that

the park owner violated this section. Upon a showing that the park owner violated this

section, the court must dismiss the eviction action and award the resident reasonable attorney

fees and any other equitable relief the court deems appropriate.

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Sec. 10.

Minnesota Statutes 2024, section 327C.097, is amended to read:

327C.097 NOTICE
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OF UNSOLICITED SALE
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AND OPPORTUNITY TO

PURCHASE
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.

Subdivision 1.

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Definitions
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Definition
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.

For the purposes of this section, "nonprofit"

means a nonprofit organization under chapter 317A.

Subd. 2.

Scope.

This section does not apply to:

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(1) a purchase of a manufactured home park by a nonprofit or a representative acting

on behalf of residents pursuant to a bona fide offer to purchase the park pursuant to

subdivision 4;

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(2)
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(1)
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a purchase of a manufactured home park by a governmental entity under its

powers or threat of eminent domain;

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(3)
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(2)
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a transfer by a corporation or limited liability company to an affiliate, including

any shareholder or member of the transferring corporation; any corporation or entity owned

or controlled, directly or indirectly, by the transferring corporation; or any other corporation

or entity owned or controlled, directly or indirectly, by any shareholder or member of the

transferring corporation;

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(4)
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(3)
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a transfer by a partnership to any of its partners;

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(5)
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(4)
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a sale or transfer between or among joint tenants or tenants in common owning

a manufactured home park;

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(6) an exchange of a manufactured home park for other real property, whether or not

such exchange also invoices the payment of cash or boot;

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(7) a conveyance of an interest in a manufactured home park incidental to the financing

of the manufactured home park;

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(8)
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(5)
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a conveyance resulting from the foreclosure of a mortgage, cancellation of a

contract for deed, or other instrument encumbering a manufactured home park or any deed

given in lieu of such foreclosure or cancellation;
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or
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(9)
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(6)
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a sale or transfer to a person who would be included within the intestate table of

descent and distribution of the park owner
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; or
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.
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(10) a park owner who, within the past year, has provided written notice pursuant to

section
327C.096
.

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Subd. 3.

Notice of
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offer
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sale
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.

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(a) If a park owner receives an unsolicited bona fide offer

to purchase the park that the park owner intends to consider or make a counteroffer to, the

park owner's only obligation shall be to mail a notice to the Minnesota Housing Finance

Agency, by certified mail, and to each park resident household, by regular mail. The notice

must indicate that the park owner has received an offer that it is considering, and it must

disclose the price range and material terms and conditions upon which the park owner would

consider selling the park and consider any offer made by a representative acting on behalf

of residents or a nonprofit that will become a representative acting on behalf of residents,

as provided below. The park owner shall be under no obligation either to sell to the nonprofit

or representative acting on behalf of residents or to interrupt or delay other negotiations and

shall be free to execute a purchase agreement or contract for the sale of the park to a party

or parties other than the representative acting on behalf of residents. Substantial compliance

with the notice requirement in this paragraph shall be deemed sufficient.

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(b) The Minnesota Housing Finance Agency must, within five days of receipt of the

notice required under paragraph (a), distribute a copy of the notice to any representative

acting on behalf of residents and to any nonprofits that register with the agency to receive

such notices. The agency shall make a list of any representatives acting on behalf of residents

and any registered nonprofits publicly available on its website.

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(a) No park owner may accept any offer for the sale, lease, or transfer of a manufactured

home park without first giving 60 days' written notice by certified mail, return receipt

requested, of the proposed sale, lease, or transfer to:

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(1) each resident of the manufactured home park; and

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(2) the Minnesota Housing Finance Agency.

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(b) The notice required under this subdivision must be dated and indicate the price,

terms, and conditions of an acceptable offer the park owner has received to sell, lease, or

transfer the manufactured home park. The notice must include the following verbatim

statement: "The park owner has received and is prepared to accept an outside offer to [sell,

lease, transfer] this park. The price, terms, and conditions of the offer are listed below.

Before accepting the offer for the [sale, lease, transfer], the park owner will consider any

offer submitted within 60 days of the date of this notice by a representative acting on behalf

of residents. The owner will negotiate in good faith with the representative. [List of price,

terms, and conditions.]"

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(c) Upon the request of a resident, an owner must make available a copy of any acceptable

agreement to sell, lease, or transfer the manufactured home park for a period of 60 days

following the date of the notice required under this subdivision. The owner must provide

the copy within three days of the request by the resident.

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Subd. 4.

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Unsolicited
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Residents'
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offer
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to purchase
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.

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Nothing contained in this section

or section
327C.096
shall prevent a representative acting on behalf of residents or a nonprofit

from making an unsolicited bona fide offer to purchase the manufactured home park to the

park owner at any time.

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(a) A representative acting on behalf of residents may submit a written offer to the park

owner to purchase the manufactured home park, subject to the conditions required under

subdivision 7. The offer must be submitted within 60 days of the postmark date of the notice

required under subdivision 3, by certified mail, return receipt requested.

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(b) If the owner rejects the offer of a representative acting on behalf of residents, the

owner must provide written notice to the representative of, and an explanation of the reasons

for, rejection of the offer. The notice of rejection must be delivered to the representative by

certified mail within five days of receipt of the offer from the representative. No owner may

accept a final, unconditional offer for the sale, lease, or transfer of a manufactured home

park earlier than the 15th day following the certified delivery date of the notice of rejection.

The purchase agreement must permit the representative acting on behalf of residents a

commercially reasonable due diligence period with access by the representative to all

information reasonably necessary to make an informed decision regarding the purchase.

The representative may be required to enter into a confidentiality agreement regarding the

information.

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Subd. 5.

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Optional recording.

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(a) A park owner may record with the county recorder or

registrar of titles in the county where the park is located an affidavit, with a copy of the

notice required under subdivision 3 attached, attesting that:

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(1) the park owner has complied with the requirements of this section; or

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(2) the sale, lease, or transfer of the manufactured home park is exempt from this section

pursuant to subdivision 2.

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(b) An affidavit filed in accordance with this subdivision shall be presumptive evidence

of compliance for purposes of conveying good title to a bona fide purchaser.

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(c) A representative acting on behalf of residents who makes an offer to purchase the

park as provided under subdivision 4 may record notice of the offer in the county recorder's

office.

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Subd. 6.

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Good faith obligations.

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All transactions governed by, and all actions taken

pursuant to, this section must be conducted in good faith.

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Subd. 7.

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Requirement of affordable housing preservation.

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In the event of a sale to a

representative acting on behalf of residents, the representative must certify to the

commissioner of commerce that the property will be preserved as a manufactured home

park for ten years from the date of the sale.

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Subd. 8.

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Challenge to petition.

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In any action challenging the validity of the signatories

of the petition authorizing a representative acting on behalf of residents to represent residents

in negotiations to purchase a manufactured home park, there shall be a rebuttable presumption

that the challenged party's signature is sufficient evidence that the party is a valid signatory.

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Subd. 9.

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Remedies.

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(a) A park owner who violates subdivision 3, 4, or 6 is liable to each

resident for actual, incidental, or consequential damages, plus attorney fees and costs.

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(b) In addition to the remedies that a resident is entitled to under paragraph (a), a court

may grant declaratory, injunctive, or equitable relief.

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(c) The remedies provided under this subdivision are cumulative, not exclusive, and do

not restrict any remedy that is otherwise available to a plaintiff at law or in equity.

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Subd. 10.

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List of interested organizations.

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The Minnesota Housing Finance Agency

must:

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(1) within ten days of receipt of a notice received under subdivision 3, distribute a copy

of the notice to nonprofit organizations that register with the Minnesota Housing Finance

Agency to receive such notices; and

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(2) make the list of nonprofit organizations that have registered to receive notice publicly

available on the Minnesota Housing Finance Agency website.

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Sec. 11.

Minnesota Statutes 2024, section 327C.15, is amended to read:

327C.15 REMEDIES; PENALTIES; ENFORCEMENT.

Any violation of sections
327C.015
to
327C.14
is a violation of a law referred to in

section
8.31, subdivision 1
.
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A park owner that violates sections 327C.015 to 327C.14 is

liable for:
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(1) actual damages sustained by the resident as a result of the violation;

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(2) injunctive relief as determined by the court;

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(3) equitable relief a court considers just and reasonable in the circumstances; and

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(4) in the case of any successful action, the cost of the action and reasonable attorney

fees as determined by the court.

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Sec. 12.
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REPEALER.
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Minnesota Statutes 2024, section 327C.096,

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is repealed.

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APPENDIX

Repealed Minnesota Statutes: 26-07365

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 real estate broker licensed by the Department of Commerce, the owner must provide concurrent written notice to each resident household 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 each resident household 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.