SF 1196

1.2relating to housing; creating the Minnesota manufactured home relocation trust
1.3fund; requiring that a manufactured home park owner make specified payments
1.4to the trust fund; requiring an owner of a manufactured home who rents a lot
1.5in a manufactured home park to make an annual payment to the trust fund;
1.6authorizing advances to the Minnesota manufactured home relocation trust fund;
1.7amending Minnesota Statutes 2006, sections 327C.095, subdivisions 1, 4, by
1.8adding subdivisions; 462A.21, by adding a subdivision; proposing coding for
1.9new law in Minnesota Statutes, chapter 462A.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11    Section 1. Minnesota Statutes 2006, section 327C.095, subdivision 1, is amended to
1.12read:
1.13    Subdivision 1. Conversion of use; minimum notice. At least nine months before
1.14the conversion of all or a portion of a manufactured home park to another use, or before
1.15closure of a manufactured home park or cessation of use of the land as a manufactured
1.16home park, the park owner must prepare a closure statement and provide a copy to the
1.17commissioners of health and the housing finance agency, the local planning agency, and
1.18a resident of each manufactured home where the residential use is being converted.
1.19The closure statement must include the following language in a font no smaller than 14
1.20point: "YOU MAY BE ENTITLED TO COMPENSATION FROM THE MINNESOTA
1.21MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE
1.22MINNESOTA HOUSING FINANCE AGENCY." A resident may not be required to
1.23vacate until 60 days after the conclusion of the public hearing required under subdivision
1.244. If a lot is available in another section of the park that will continue to be operated as a
1.25park, the park owner must allow the resident to relocate the home to that lot unless the
1.26home, because of its size or local ordinance, is not compatible with that lot.

2.1    Sec. 2. Minnesota Statutes 2006, section 327C.095, subdivision 4, is amended to read:
2.2    Subd. 4. Public hearing; relocation costs compensation; neutral third party.
2.3    The governing body of the affected municipality shall hold a public hearing to review
2.4the closure statement and any impact that the park closing may have on the displaced
2.5residents and the park owner. Before any change in use or cessation of operation and as a
2.6condition of the change, the governing body may require a payment by the park owner to
2.7be made to the displaced resident for the reasonable relocation costs. If a resident cannot
2.8relocate the home to another manufactured home park within a 25 mile radius of the park
2.9that is being closed, the resident is entitled to relocation costs based upon an average of
2.10relocation costs awarded to other residents. At the time of, and in the notice for, the public
2.11hearing, displaced residents must be informed that they may be eligible for payments
2.12from the Minnesota manufactured home relocation trust fund under section 462A.40 as
2.13compensation for reasonable relocation costs under subdivision 13, paragraphs (a) and (e).
2.14    The governing body of the municipality may also require that other parties, including
2.15the municipality, but excluding the park owner or its purchaser, involved in the park
2.16closing provide additional compensation to residents to mitigate the adverse financial
2.17impact of the park closing upon the residents.
2.18    At the public hearing, the municipality shall appoint a neutral third party, to be
2.19agreed upon by both the manufactured home park owner and manufactured home owners,
2.20whose hourly cost must be reasonable and paid from the Minnesota manufactured home
2.21relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with
2.22decision-making authority to resolve any questions or disputes regarding any contributions
2.23or disbursements to and from the Minnesota manufactured home relocation trust fund by
2.24either the manufactured home park owner or the manufactured home owners. If the parties
2.25cannot agree on a neutral third party, the municipality will make a determination.

2.26    Sec. 3. Minnesota Statutes 2006, section 327C.095, is amended by adding a
2.27subdivision to read:
2.28    Subd. 12. Payment to the Minnesota manufactured home relocation trust fund.
2.29    (a) If a manufactured home owner is required to move due to the conversion of all or a
2.30portion of a manufactured home park to another use, the closure of a park, or cessation
2.31of use of the land as a manufactured home park, the manufactured park owner shall,
2.32upon the change in use, pay to the commissioner of finance for deposit in the Minnesota
2.33manufactured home relocation trust fund under section 462A.40, the lesser amount of the
2.34actual costs of moving or purchasing the manufactured home approved by the neutral
2.35third party and paid by the Minnesota Housing Finance Agency under subdivision 13,
3.1paragraph (a) or (e), or $3,250 for each single section manufactured home, and $6,000 for
3.2each multisection manufactured home, for which a manufactured home owner has made
3.3application for payment of relocation costs under subdivision 13, paragraph (c). The
3.4manufactured home park owner shall make payments required under this section to the
3.5Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
3.6from the neutral third party.
3.7    (b) A manufactured home park owner is not required to make the payment prescribed
3.8under paragraph (a), nor is a manufactured home owner entitled to compensation under
3.9subdivision 13, paragraph (a) or (e), if:
3.10    (1) the manufactured home park owner relocates the manufactured home owner to
3.11another space in the manufactured home park or to another manufactured home park at
3.12the park owner's expense;
3.13    (2) the manufactured home owner is vacating the premises and has informed the
3.14manufactured home park owner or manager of this prior to the mailing date of the closure
3.15statement under subdivision 1;
3.16    (3) a manufactured home owner has abandoned the manufactured home, or the
3.17manufactured home owner is not current on the monthly lot rental, personal property
3.18taxes, or has failed to pay the annual $12 payments to the Minnesota manufactured home
3.19relocation trust fund when due;
3.20    (4) the manufactured home owner has a pending eviction action for nonpayment of
3.21lot rental amount under section 327C.09, which was filed against the manufactured home
3.22owner prior to the mailing date of the closure statement under subdivision 1, and the writ
3.23of recovery has been ordered by the district court;
3.24    (5) the conversion of all or a portion of a manufactured home park to another use,
3.25the closure of a park, or cessation of use of the land as a manufactured home park is the
3.26result of a taking or exercise of the power of eminent domain by a governmental entity
3.27or public utility; or
3.28    (6) the owner of the manufactured home is not a resident of the manufactured home
3.29park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
3.30is a resident, but came to reside in the manufactured home park after the mailing date of
3.31the closure statement under subdivision 1.
3.32    (c) Owners of manufactured homes who rent lots in a manufactured home park shall
3.33make annual payments to the park owner, to be deposited in the Minnesota manufactured
3.34home relocation trust fund under section 462A.40, in the amount of $12 per year, per
3.35manufactured home, payable on August 15 of each year. On or before July 15 of each
3.36year, the commissioner of finance shall prepare and post on the department's Web site a
4.1generic invoice and cover letter explaining the purpose of the Minnesota manufactured
4.2home relocation trust fund, the obligation of each manufactured home owner to make an
4.3annual $12 payment into the fund, the due date, and the need to pay to the park owner for
4.4collection, and a warning, in 14-point font, that if the annual payments are not made when
4.5due, the manufactured home owner will not be eligible for compensation from the fund if
4.6the manufactured home park closes. The park owner shall receive, record, and commingle
4.7the payments and forward the payments to the commissioner of finance by September 15
4.8of each year, with a summary by the park owner, certifying the name, address, and payment
4.9amount of each remitter, and noting the names and address of manufactured home owners
4.10who did not pay the $12 annual payment, sent to both the commissioner of finance and the
4.11commissioner of the Minnesota Housing Finance Agency. The commissioner of finance
4.12shall deposit the payments in the Minnesota manufactured home relocation trust fund.
4.13    (d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable
4.14by the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by
4.15action in a court of appropriate jurisdiction.

4.16    Sec. 4. Minnesota Statutes 2006, section 327C.095, is amended by adding a
4.17subdivision to read:
4.18    Subd. 13. Change in use, relocation expenses; payments by park owner. (a)
4.19If a manufactured home owner is required to relocate due to the conversion of all or a
4.20portion of a manufactured home park to another use, the closure of a manufactured home
4.21park, or cessation of use of the land as a manufactured home park under subdivision
4.221, and the manufactured home owner complies with the requirements of this section,
4.23the manufactured home owner is entitled to payment from the Minnesota manufactured
4.24home relocation trust fund equal to the manufactured home owner's actual relocation
4.25costs for relocating the manufactured home to a new location within a 25-mile radius
4.26of the park that is being closed, up to a maximum of $4,000 for a single-section and
4.27$8,000 for a multisection manufactured home. The actual relocation costs must include
4.28the reasonable cost of taking down, moving, and setting up the manufactured home,
4.29including equipment rental, utility connection and disconnection charges, minor repairs,
4.30modifications necessary for transportation of the home, necessary moving permits and
4.31insurance, moving costs for any appurtenances, which meet applicable local, state, and
4.32federal building and construction codes.
4.33    (b) A manufactured home owner is not entitled to compensation under paragraph (a)
4.34if the manufactured home park owner is not required to make a payment to the Minnesota
4.35manufactured home relocation trust fund under subdivision 12, paragraph (b).
5.1    (c) Except as provided in paragraph (e), in order to obtain payment from the
5.2Minnesota manufactured home relocation trust fund, the manufactured home owner shall
5.3submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy
5.4to the park owner, an application for payment, which includes:
5.5    (1) a copy of the closure statement under subdivision 1;
5.6    (2) a copy of the contract with a moving or towing contractor, which includes the
5.7relocation costs for relocating the manufactured home;
5.8    (3) a statement with supporting materials of any additional relocation costs as
5.9outlined in subdivision 1;
5.10    (4) a statement certifying that none of the exceptions to receipt of compensation
5.11under subdivision 12, paragraph (b), apply to the manufactured home owner;
5.12    (5) a statement from the manufactured park owner that the lot rental is current
5.13and that the annual $12 payments to the Minnesota manufactured home relocation trust
5.14fund have been paid when due; and
5.15    (6) a statement from the county where the manufactured home is located certifying
5.16that personal property taxes for the manufactured home are paid through the end of that
5.17year.
5.18    (d) If the neutral third party has acted reasonably and does not approve or deny
5.19payment within 45 days after receipt of the information set forth in paragraph (c), the
5.20payment is deemed approved. Upon approval and request by the neutral third party,
5.21the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50
5.22percent of the contract price payable to the mover and towing contractor for relocating
5.23the manufactured home in the amount of the actual relocation cost, plus a check to the
5.24home owner for additional certified costs associated with third-party vendors, that were
5.25necessary in relocating the manufactured home. The moving or towing contractor shall
5.26receive 50 percent upon execution of the contract and 50 percent upon completion of
5.27the relocation and approval by the manufactured home owner. The moving or towing
5.28contractor may not apply the funds to any other purpose other than relocation of the
5.29manufactured home as provided in the contract. A copy of the approval must be forwarded
5.30by the neutral third party to the park owner with an invoice for payment of the amount
5.31specified in subdivision 12, paragraph (a).
5.32    (e) In lieu of collecting a relocation payment from the Minnesota manufactured
5.33home relocation trust fund under paragraph (a), the manufactured home owner may collect
5.34an amount from the fund after reasonable efforts to relocate the manufactured home
5.35have failed due to the age or condition of the manufactured home, or because there are
5.36no manufactured home parks willing or able to accept the manufactured home within a
6.125-mile radius. A manufactured home owner may tender title of the manufactured home in
6.2the manufactured home park to the manufactured home park owner, and collect an amount
6.3to be determined by an independent appraisal. The appraiser must be agreed to by both the
6.4manufactured home park owner and the manufactured home owner. The amount that may
6.5be reimbursed under the fund is a maximum of $5,000 for a single-section, and $9,000
6.6for a multisection manufactured home. The manufactured home owner shall deliver to
6.7the manufactured home park owner the current certificate of title to the manufactured
6.8home duly endorsed by the owner of record, and valid releases of all liens shown on the
6.9certificate of title, and a statement from the county where the manufactured home is
6.10located evidencing that the personal property taxes have been paid. The manufactured
6.11home owner's application for funds under this paragraph must include a document
6.12certifying that the manufactured home cannot be relocated, that the lot rental is current,
6.13that the annual $12 payments to the Minnesota manufactured home relocation trust fund
6.14have been paid when due, that the manufactured home owner has chosen to tender title
6.15under this section, and that the park owner agrees to make a payment to the commissioner
6.16of finance in the amount established in subdivision 12, paragraph (a), less any documented
6.17costs submitted to the neutral third party, required for demolition and removal of the
6.18home, and any debris or refuse left on the lot, not to exceed $1,000. The manufactured
6.19home owner must also provide a copy of the certificate of title endorsed by the owner of
6.20record, and certify to the neutral third party, with a copy to the park owner, that none of
6.21the exceptions to receipt of compensation under subdivision 12, paragraph (b), clauses (1)
6.22to (6), apply to the manufactured home owner, and that the home owner will vacate the
6.23home within 60 days after receipt of payment or the date of park closure, whichever is
6.24earlier, provided that the monthly lot rent is kept current.
6.25    (f) The Minnesota Housing Finance Agency must make a determination of the
6.26amount of payment a manufactured home owner would have been entitled to under a
6.27local ordinance in effect on the effective date of this section. Notwithstanding paragraph
6.28(a), the manufactured home owner's compensation for relocation costs from the fund
6.29under section 462A.40, is the greater of the amount provided under this subdivision, or
6.30the amount under the local ordinance in effect on the effective date of this section, that
6.31is applicable to the manufactured home owner. Nothing in this paragraph is intended
6.32to increase the liability of the park owner.
6.33    (g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall
6.34be liable to any person for recovery if the funds in the Minnesota manufactured home
6.35relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing
7.1Finance Agency shall keep a record of the time and date of its approval of payment to a
7.2claimant.
7.3    (h) The agency shall report to the chairs of the senate Finance Committee and
7.4house of representatives Ways and Means Committee by January 15 of each year on
7.5the Minnesota manufactured home relocation trust fund, including the account balance,
7.6payments to claimants, the amount of any advances to the fund, and the amount of any
7.7insufficiencies encountered during the previous calendar year. If sufficient funds become
7.8available, the Minnesota Housing Finance Agency shall pay the manufactured home
7.9owner whose unpaid claim is the earliest by time and date of approval.

7.10    Sec. 5. Minnesota Statutes 2006, section 327C.095, is amended by adding a
7.11subdivision to read:
7.12    Subd. 14. Payment adjustment for smaller manufactured home parks. The total
7.13contribution to the fund under section 462A.40 paid by the park owner under subdivision
7.1412, paragraph (a), must not exceed 20 percent of the sale price, or if no sale price is
7.15available, the assessed value of the manufactured home park, except that if the sale price,
7.16or, if there is no sale price, the assessed value, is:
7.17    (1) less than $100,000, the manufactured home park owner's contribution to the fund
7.18must not exceed five percent of the sale price of the manufactured home park;
7.19    (2) less than $200,000, the owner's contribution to the fund must not exceed eight
7.20percent of the sale price of the manufactured home park;
7.21    (3) less than $300,000, the owner's contribution to the fund must not exceed ten
7.22percent of the sale price of the manufactured home park; and
7.23    (4) less than $500,000, the owner's contribution to the fund must not exceed 15
7.24percent of the sale price of the manufactured home park.

7.25    Sec. 6. Minnesota Statutes 2006, section 327C.095, is amended by adding a
7.26subdivision to read:
7.27    Subd. 15. Preemption of local ordinances. Sections 327C.095, subdivisions 1, 4,
7.28and 12 to 16; 462A.21, subdivision 31; and 462A.40 preempt and supersede a township,
7.29county, or statutory or home rule charter city ordinance relating to the relocation or buyout
7.30payments paid due to a change of use or closure of manufactured home communities. A
7.31township, county, or statutory or home rule charter city must not adopt an ordinance
7.32requiring more compensation by the manufactured home park owners or its purchaser
7.33than what is provided for in this statute.

8.1    Sec. 7. Minnesota Statutes 2006, section 462A.21, is amended by adding a subdivision
8.2to read:
8.3    Subd. 31. Manufactured housing relocation trust fund. The agency may spend
8.4money for the purposes of sections 327C.095, subdivisions 12 and 13; and 462A.40
8.5and may pay the costs and expenses necessary and incidental to the development and
8.6operation of the fund under section 462A.40.

8.7    Sec. 8. [462A.40] MINNESOTA MANUFACTURED HOME RELOCATION
8.8TRUST FUND.
8.9    Subdivision 1. Establishment of fund. The Minnesota manufactured home
8.10relocation trust fund is established as a separate account in the housing development
8.11fund. The agency may use the money from the Minnesota manufactured home relocation
8.12trust fund to make payments to manufactured home owners under section 327C.095,
8.13subdivision 13, paragraphs (a) and (e). All interest earned from the investment or
8.14deposit of money in the trust fund must be deposited in the trust fund. The Minnesota
8.15manufactured home relocation trust fund account shall consist of:
8.16    (1) payments collected from manufactured home park owners under section
8.17327C.095, subdivision 12, paragraph (a), and subdivision 13, paragraph (e);
8.18    (2) payments collected from manufactured home owners under section 327C.095,
8.19subdivision 12, paragraph (c);
8.20    (3) interest earned on the money deposited into the trust fund; and
8.21    (4) other appropriated funds.
8.22    Subd. 2. Expending funds. The agency may expend the money in the Minnesota
8.23manufactured home relocation trust fund to the extent necessary to carry out the objectives
8.24of section 327C.095, subdivision 13, by making payments to manufactured home owners,
8.25or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a)
8.26and (e), and to pay the costs of administering the fund. Money in the fund is appropriated
8.27to the agency for these purposes and to the commissioner of finance to pay costs incurred
8.28by the commissioner of finance to administer the fund.

8.29    Sec. 9. ADVANCES TO THE MINNESOTA MANUFACTURED HOME
8.30RELOCATION TRUST FUND.
8.31    (a) The Minnesota Housing Finance Agency may advance money from state
8.32appropriations or other resources to the Minnesota manufactured home relocation trust
8.33fund established under Minnesota Statutes, section 462A.40, in the event that money in
8.34the Minnesota manufactured home relocation trust fund is insufficient to pay the amounts
9.1claimed under Minnesota Statutes, section 327.095, subdivision 13. This paragraph
9.2sunsets on June 30, 2009.
9.3    (b) The Minnesota Housing Finance Agency shall be reimbursed from the Minnesota
9.4manufactured home relocation trust fund for any money advanced by the agency under
9.5paragraph (a) to the fund. Applications for payment to manufactured home owners shall
9.6be paid before reimbursement of money advanced by the agency to the fund.

9.7    Sec. 10. EFFECTIVE DATE.
9.8    Sections 1 to 9 are effective the day following final enactment. Section 6 does
9.9not apply to proceedings initiated before the effective date under a local ordinance that
9.10provides for compensation for manufactured home owners for the closure or relocation
9.11of a manufactured home park, if final action in the proceedings is completed by August
9.121, 2007.