1.1 A bill for an act
1.2 relating to housing; requiring attorney general notice and approval for the transfer
1.3 of manufactured home park ownership or control to a private equity company;
1.4 requiring a report; appropriating money; proposing coding for new law in Minnesota
1.5 Statutes, chapter 327C.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [327C.098] ACQUISITION OF CERTAIN MANUFACTURED HOME
1.8PARKS.
1.9 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
1.10the meanings given.
1.11 (b) "Private equity company" means a publicly traded or nonpublicly traded entity that
1.12collects capital investments from individuals or entities. Private equity company includes
1.13a hedge fund; any entity that would be considered an investment company as defined in
1.14United States Code, title 15, section 80a-3, but for the application of paragraph (1) or (7)
1.15of subsection (c) of that section; a venture capital fund, as defined in Code of Federal
1.16Regulations, title 17, section 275.203(l)-1; a sovereign wealth fund; and any affiliated
1.17company or person that directly, or through an affiliate, acts as a control person.
1.18 (c) "Ownership or control" means the assumption of governance or the acquisition of
1.19an ownership interest, or direct or indirect control by a private equity company over the
1.20operations of a manufactured home park through any means, including but not limited to a
1.21purchase, lease, transfer, exchange, option, conveyance, creation of a joint venture, or any
1.22other manner of acquisition of assets, governance, an ownership interest, or direct or indirect
1.23control of a manufactured home park.
1Section 1.
25-02419 as introduced02/10/25 REVISOR MS/CH
SENATE
STATE OF MINNESOTA
S.F. No. 1450NINETY-FOURTH SESSION
(SENATE AUTHORS: PUTNAM)
OFFICIAL STATUSD-PGDATE
Introduction and first reading02/17/2025
Referred to Housing and Homelessness Prevention 2.1 (d) "Real estate investment trust" has the meaning given in United States Code, title 26,
2.2section 856.
2.3 Subd. 2.Notice and approval.(a) A park owner must provide written notice to the
2.4attorney general of the intent to transfer ownership or control of the manufactured home
2.5park to a private equity company 120 days prior to the transfer of ownership or control.
2.6 (b) Together with the notice, the private equity company seeking to acquire ownership
2.7or control of the manufactured home park shall provide the attorney general with the
2.8following information:
2.9 (1) the names of each individual with an interest in the company and the percentage of
2.10interest each individual holds in the company;
2.11 (2) the complete corporate structure of the company;
2.12 (3) the names of each individual holding, and the percent of interest held, in any affiliate,
2.13subsidiary, or otherwise related entity with which the company has a contract to provide
2.14goods or services that will be used in the operation or maintenance of the manufactured
2.15home park or that will be provided to residents, including any real estate investment trusts
2.16if permitted under subdivision 6;
2.17 (4) for the previous five years, any filings that were required to be made to any agency
2.18of the federal government or a state government;
2.19 (5) evidence as to the condition of the water infrastructure of the park that the private
2.20equity company seeks to acquire or control, including but not limited to the park's
2.21distribution, sewer, and septic systems and the park's water quality; and
2.22 (6) any other information the attorney general may require.
2.23 (c) Together with the notice, the private equity company seeking to acquire ownership
2.24or control of the manufactured home park shall submit an affidavit to the attorney general,
2.25accompanied by evidence, sufficient to demonstrate that:
2.26 (1) the private equity company has the financial, managerial, and operational ability to
2.27operate or manage the manufactured home park consistent with the other requirements of
2.28this chapter, chapters 327 and 327B, and any other applicable Minnesota law and rule;
2.29 (2) neither the company nor any of the owners, officers, or any employees of the company
2.30have ever been convicted of a crime or found civilly liable for an offense involving moral
2.31turpitude, including forgery, embezzlement, obtaining money under false pretenses, larceny,
2.32extortion, conspiracy to defraud, or any other similar offense or violation, or any violation
2Section 1.
25-02419 as introduced02/10/25 REVISOR MS/CH 3.1of a federal or state law or regulation relating to any consumer fraud, false advertising,
3.2deceptive trade practices, or similar consumer protection law;
3.3 (3) in the preceding ten years, there have been no judgments or completed or pending
3.4private or public litigation, tax liens, written complaints, administrative actions, or
3.5investigations by any government agency against the private equity company or any of its
3.6owners, officials, or employees, unresolved or otherwise, filed or otherwise commenced;
3.7 (4) in the preceding ten years, the company has not defaulted in the payment of money
3.8collected for others, including the discharge of debts through bankruptcy proceedings;
3.9 (5) the company will invest sufficient capital in the manufactured home park to maintain
3.10the park's infrastructure, if it is adequate, or to improve the park's infrastructure if it is
3.11deteriorating, in disrepair, or needs upgrading;
3.12 (6) after acquiring ownership or control of a manufactured home park anywhere in the
3.13United States, rents have not increased in any of the manufactured home parks in any one
3.14year by more than the Consumer Price Index published by the United States Department of
3.15Labor for the 12 months preceding the month in which the increase became effective or, if
3.16the private equity company has increased rents or prices by more than the Consumer Price
3.17Index, there has been a reasonable justification for the increase; and
3.18 (7) within five years after acquiring ownership or control of any other manufactured
3.19home park anywhere in the United States, the private equity company has not sold or
3.20otherwise transferred ownership or control to another person or entity.
3.21 (d) Ownership or control of a manufactured home park may not be transferred to a private
3.22equity company unless approved by the attorney general. Approval may be granted only if
3.23the attorney general finds that the transfer will not:
3.24 (1) result in an adverse impact on the health, safety, and well-being of the residents of
3.25the manufactured home park;
3.26 (2) lead to unaffordable rent increases for the residents;
3.27 (3) lead to a reduction in the quality of services provided to the residents; and
3.28 (4) lead to a reduction in maintenance or a deterioration in the operations and of the
3.29infrastructure of the park, if in adequate condition.
3.30 (e) If the attorney general does not issue an approval or denial within 120 days of receipt
3.31of the notice of intent to acquire ownership or control of a manufactured home park, approval
3.32is deemed to have been given. If the notice is incomplete or additional information is
3Section 1.
25-02419 as introduced02/10/25 REVISOR MS/CH 4.1requested by the attorney general, the 120-day period may be extended by an additional 60
4.2days.
4.3 (f) In addition to the requirements under this section for approval of the acquisition, the
4.4attorney general may impose any other requirements deemed necessary to protect the
4.5residents of the manufactured home park or protect the public interest.
4.6 Subd. 3.Conditional approval.(a) The attorney general may waive the notice period
4.7and issue immediate, conditional approval if:
4.8 (1) the health, safety, and well-being of the residents are in immediate jeopardy if the
4.9transfer of ownership or control is not immediately effectuated; or
4.10 (2) the owner of the manufactured home park can demonstrate a substantial likelihood
4.11that, absent the waiver, it will have to file for bankruptcy under chapter 11 of the Bankruptcy
4.12Act, United States Code, title 11, section 1101, et seq., or that it is at imminent risk of
4.13liquidation under chapter 7 of the Bankruptcy Act, United States Code, title 11, section 701,
4.14et seq.
4.15 (b) Within 90 days of issuing conditional approval, the attorney general must determine
4.16whether approval shall be permanent or if approval shall be withdrawn. If permanent approval
4.17is withdrawn for acquisition of ownership or control of a manufactured home park, the
4.18attorney general shall appoint a receiver and apply to the district court in the county in which
4.19the manufactured home park is located for confirmation of the appointment. The district
4.20court shall have exclusive jurisdiction to determine all matters related to the receivership.
4.21 Subd. 4.Appeal of denial.A private equity company that has been denied approval to
4.22acquire ownership or control of a manufactured home park may, within 30 days of receipt
4.23of the notice of denial, file an appeal with the Office of Administrative Hearings. Upon
4.24receipt of an appeal, the Office of Administrative Hearings must, at the discretion of the
4.25chief administrative judge, conduct a hearing or refer the matter for a contested case
4.26proceeding under chapter 14.
4.27 Subd. 5.Prohibited practice.A private equity company acquiring ownership or control
4.28of a manufactured home park is prohibited from engaging in any act, practice, or course of
4.29business that would strip an asset from the manufactured home park or otherwise undermine
4.30the quality or safety of, or access to, care and services.
4.31 Subd. 6.Limitation on the use of real estate investment trusts.A private equity
4.32company may enter into an arrangement with a real estate investment trust in connection
4.33with the manufactured home park only if it can demonstrate to the attorney general that:
4Section 1.
25-02419 as introduced02/10/25 REVISOR MS/CH 5.1 (1) any rent increases to residents would not exceed the average of increases in market
5.2rent for residential multifamily properties in the market area in which the manufactured
5.3home park is situated; and
5.4 (2) the private equity company's acquisition of the manufactured home park would not
5.5cause hardship or have an unduly adverse impact on residents and their ability to afford
5.6housing.
5.7 Subd. 7.Reports to the attorney general.Thirteen months after the acquisition of
5.8ownership or control of a manufactured home park by a private equity company and every
5.912 months thereafter, the company must submit a report to the attorney general on:
5.10 (1) the financial status of the company and any other covered entities;
5.11 (2) impacts and outcomes on the safety of residents and the affordability of rent for
5.12residents;
5.13 (3) any filings required to be made to any agency of the federal government;
5.14 (4) the annual balance sheet of the company;
5.15 (5) the total dollar amount of aggregate fees and expenses collected by the private equity
5.16company, the manager of the company, and related parties, categorized by the type of fee
5.17and purpose of the fee;
5.18 (6) any management services agreements or sales and leaseback arrangements between
5.19the company and any affiliated or nonaffiliated companies and an itemization by category
5.20and amount of the fees paid;
5.21 (7) any services procured by the company from any other company owned by or affiliated
5.22with the company;
5.23 (8) all political spending by the company, including contributions and lobbying spending
5.24to members of or candidates for the Minnesota legislature, and with respect to issues affecting
5.25manufactured home parks; and
5.26 (9) the total number of manufactured home parks operating in Minnesota owned or
5.27controlled by the company and the names and locations of each manufactured home park.
5.28 Sec. 2. ATTORNEY GENERAL INVESTIGATION.
5.29 (a) The attorney general shall investigate the impact on residents and the state of the
5.30acquisition of ownership and control of manufactured home parks by private equity
5.31companies, as that term is defined in Minnesota Statutes, section 327C.098.
5Sec. 2.
25-02419 as introduced02/10/25 REVISOR MS/CH 6.1 (b) The investigation shall identify the number of acquisitions that have occurred during
6.2the previous ten years and identify the names of the private equity companies and the
6.3principals of those companies.
6.4 (c) The attorney general, in consultation with the commissioner of health, shall evaluate
6.5the impact of the acquired manufactured home parks on:
6.6 (1) rents and the cost of services;
6.7 (2) the maintenance, physical condition, resiliency, energy efficiency, and other indicators
6.8of a sound building infrastructure of the properties acquired or leased by the private equity
6.9company;
6.10 (3) capital improvements made; and
6.11 (4) the financial health of the manufactured home parks after acquisition of ownership
6.12or control.
6.13 (d) The attorney general shall report the findings of the investigation to the chairs and
6.14ranking minority members of the legislative committees with jurisdiction over manufactured
6.15home parks by February 15, 2026.
6.16 EFFECTIVE DATE.This section is effective the day following final enactment.
6.17 Sec. 3. APPROPRIATION.
6.18 $....... in fiscal year 2026 is appropriated from the general fund to the attorney general
6.19to conduct an investigation into the impact on residents and the state of the acquisition of
6.20ownership and control of manufactured home parks by private equity companies.
6Sec. 3.
25-02419 as introduced02/10/25 REVISOR MS/CH