HF2381

Purpose of the Bill

The bill aims to improve tenant protections and standards of living for residents in manufactured home parks in Minnesota. It establishes rules for rent and utility payments, mandates safety inspections, modifies the sale process of these parks, and adjusts penalties for violations.

Main Provisions

• Uniform Rent Payments: Rent must be consistent for all homes, with exceptions for larger lots or special services. Extra fees for pets are capped, and certain discriminatory fees are prohibited.

• Utility Charges: Park owners can charge for utilities only under specific conditions and must provide itemized bills. They cannot bill for repairs made by utility providers or for outage reports.

• Safety Inspections: The park owner is responsible for handling hazardous trees within a specific timeframe upon receiving a resident's notice.

• Rent Increases: Rent hikes require a 60-day notice and are limited to once per year with a maximum increase of 3%, unless justified by safety expenses. Rent increases approved by cooperatives are considered reasonable.

• Digital Payment Options: Park owners must offer alternatives to digital payments and cannot charge extra fees for any payment methods. Owners are prohibited from penalizing tenants when payment systems fail.

• Sale and Purchase of Parks: When park owners receive an unsolicited offer to sell, they must notify residents and a state agency, allowing residents or nonprofits an opportunity to purchase the park. There's a provision ensuring the park remains a housing community for at least ten years if sold.

• Good Faith in Transactions: All related transactions must be conducted in good faith, especially concerning the sale to resident representatives.

Significant Changes to Existing Law

• This bill repeals the existing statute requiring park owners to notify residents when the park is listed for sale through a broker or advertised publicly.
• It imposes stricter guidelines on how park owners can manage rent increases, utility billing, and the sale process to safeguard residents’ interests.

Relevant Terms

• Manufactured home park, rent increase, utility billing, digital payment platform, safety inspection, resident representative, sale notice, tenant protections, affordable housing preservation.