2007 Minnesota Legislative Agenda
These proposals have the support of AARP, Alliance for Metropolitan Stability, Housing Preservation Project, Legal Services Advocacy Project, Metropolitan Interfaith Council on Affordable Housing (MICAH), Minnesota Association of Cooperatives, Minnesota Housing Partnership, and Northcountry Cooperative Development Fund, among others.
Guaranteed Relocation Compensation
Background: Manufactured (mobile) home parks are the largest source of unsubsidized affordable housing in Minnesota. They exceed the state’s combined Housing and Urban Development (HUD) subsidized units and Rural Development units. Residents are in a vulnerable housing situation, however, since they own their homes but not the land. The closure of a park can be financially devastating for residents and most often means the loss of their homes, since their homes cannot be moved due to age, moving costs (ranging from $6,000 to $13,000), shortage of available lots, or parks barring homes over 10 years old (71 percent). In the last six years, at least 17 parks have closed.
- The Current Law: Under current Minnesota law, there is no guarantee of relocation compensation if a park closes. The law requires that cities hold a public closure hearing and decide whether or not to require that the park owner provide compensation; some cities have decided that park owners don’t have to provide any compensation. This process usually results in multiple public hearings to determine: (a) if such a requirement should be imposed; and (b) the amount and method of that compensation. As a result, cities feel pressure on their schedules and resources, find themselves inserted into specific business deals, and face legal challenges to their role in the park closure proceedings from park owners, developers, and residents. 19 cities have taken the precaution to adopt relocation compensation requirement ordinances. However, this leaves over 380 cities with no clear process and over 90% of residents with no protection.
- Other States: There are nine states that have guaranteed relocation compensation and four others that require it under certain circumstances. Massachusetts, Arizona, Connecticut and Nevada have mandatory relocation compensation.
- Proposed Changes: We are proposing that state law be amended to require that park owners pay relocation compensation including the cost of relocation of the home or, if the home cannot be relocated, the appraised market value of the home to ensure that residents across the state are protected from financial devastation when parks close.
Expanded Right of First Refusal