Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF1450 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2		-	1.2 relating to housing; requiring attorney general notice for the transfer of
3		-	1.3 manufactured home park ownership or control to a private equity company;
4		-	1.4 identifying prohibited practices for a private equity company acquiring ownership
5		-	1.5 or control of a manufactured home park; providing attorney general enforcement;
6		-	1.6 proposing coding for new law in Minnesota Statutes, chapter 327C.
7		-	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8		-	1.8 Section 1. [327C.098] ACQUISITION OF CERTAIN MANUFACTURED HOME
9		-	1.9PARKS.
10		-	1.10 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
11		-	1.11the meanings given.
12		-	1.12 (b) "Private equity company" means an investor or group of investors who primarily
13		-	1.13engage in the raising or returning of capital and who invests, develops, or disposes of
14		-	1.14specified assets. Private equity company includes publicly or nonpublicly traded entities,
15		-	1.15real estate investment trusts, and any investment firm that buys and manages private
16		-	1.16companies to make a profit.
17		-	1.17 (c) "Ownership or control" means the assumption of governance or the acquisition of
18		-	1.18an ownership interest, or direct or indirect control by a private equity company over the
19		-	1.19operations of a manufactured home park through any means, including but not limited to a
20		-	1.20purchase, lease, transfer, exchange, option, conveyance, creation of a joint venture, or any
21		-	1.21other manner of acquisition of assets, governance, an ownership interest, or direct or indirect
22		-	1.22control of a manufactured home park.
	2	+	1.2 relating to housing; requiring attorney general notice and approval for the transfer
	3	+	1.3 of manufactured home park ownership or control to a private equity company;
	4	+	1.4 requiring a report; appropriating money; proposing coding for new law in Minnesota
	5	+	1.5 Statutes, chapter 327C.
	6	+	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
	7	+	1.7 Section 1. [327C.098] ACQUISITION OF CERTAIN MANUFACTURED HOME
	8	+	1.8PARKS.
	9	+	1.9 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
	10	+	1.10the meanings given.
	11	+	1.11 (b) "Private equity company" means a publicly traded or nonpublicly traded entity that
	12	+	1.12collects capital investments from individuals or entities. Private equity company includes
	13	+	1.13a hedge fund; any entity that would be considered an investment company as defined in
	14	+	1.14United States Code, title 15, section 80a-3, but for the application of paragraph (1) or (7)
	15	+	1.15of subsection (c) of that section; a venture capital fund, as defined in Code of Federal
	16	+	1.16Regulations, title 17, section 275.203(l)-1; a sovereign wealth fund; and any affiliated
	17	+	1.17company or person that directly, or through an affiliate, acts as a control person.
	18	+	1.18 (c) "Ownership or control" means the assumption of governance or the acquisition of
	19	+	1.19an ownership interest, or direct or indirect control by a private equity company over the
	20	+	1.20operations of a manufactured home park through any means, including but not limited to a
	21	+	1.21purchase, lease, transfer, exchange, option, conveyance, creation of a joint venture, or any
	22	+	1.22other manner of acquisition of assets, governance, an ownership interest, or direct or indirect
	23	+	1.23control of a manufactured home park.
23	24		1Section 1.
24		-	~~S1450-1 1st Engrossment~~~~SF1450~~ REVISOR MS
	25	+	25-02419 as introduced02/10/25 REVISOR MS/CH
25	26		SENATE
26	27		STATE OF MINNESOTA
27	28		S.F. No. 1450NINETY-FOURTH SESSION
28		-	(SENATE AUTHORS: PUTNAM ~~and Boldon~~)
	29	+	(SENATE AUTHORS: PUTNAM)
29	30		OFFICIAL STATUSD-PGDATE
30		-	Introduction and first reading40302/17/2025
31		-	Referred to Housing and Homelessness Prevention
32		-	Author added Boldon46502/20/2025
33		-	Comm report: To pass as amended and re-refer to Judiciary and Public Safety03/03/2025 2.1 (d) "Real estate investment trust" has the meaning given in United States Code, title 26,
	31	+	Introduction and first reading02/17/2025
	32	+	Referred to Housing and Homelessness Prevention 2.1 (d) "Real estate investment trust" has the meaning given in United States Code, title 26,
34	33		2.2section 856.
35		-	2.3 Subd. 2.Notice of transfer of ownership and control.(a) A park owner must provide
36		-	2.4written notice to the attorney general of the intent to transfer ownership or control of the
37		-	2.5manufactured home park to a private equity company 120 days prior to the transfer of
38		-	2.6ownership or control.
39		-	2.7 (b) Together with the notice, the private equity company seeking to acquire ownership
40		-	2.8or control of the manufactured home park shall provide the attorney general with the
41		-	2.9following information:
42		-	2.10 (1) the names of each individual with an interest in the company and the percentage of
43		-	2.11interest each individual holds in the company;
44		-	2.12 (2) the complete corporate structure of the company;
45		-	2.13 (3) the names of each individual holding, and the percent of interest held, in any affiliate,
46		-	2.14subsidiary, or otherwise related entity with which the company has a contract to provide
47		-	2.15goods or services that will be used in the operation or maintenance of the manufactured
48		-	2.16home park or that will be provided to residents; and
49		-	2.17 (4) any other information the attorney general may require.
50		-	2.18 Subd. 3.Prohibited practices.A private equity company acquiring ownership or control
51		-	2.19of a manufactured home park is prohibited from engaging in any act, practice, or course of
52		-	2.20business that:
53		-	2.21 (1) strips assets from the manufactured home park or otherwise undermines the
54		-	2.22infrastructural integrity of the park;
55		-	2.23 (2) engages in self-dealing;
56		-	2.24 (3) fails to maintain the park's infrastructure, if it is adequate, or fails to improve the
57		-	2.25park's infrastructure if it is deteriorating, in disrepair, or needs upgrading, including but not
58		-	2.26limited to the park's water infrastructure;
59		-	2.27 (4) increases rents in any one year by more than the Consumer Price Index published
60		-	2.28by the United States Department of Labor for the 12 months preceding the month in which
61		-	2.29the increase became effective without a concomitant increase in costs;
62		-	2.30 (5) results in an adverse impact on the health, safety, and wellbeing of the residents of
63		-	2.31the manufactured home park;
	34	+	2.3 Subd. 2.Notice and approval.(a) A park owner must provide written notice to the
	35	+	2.4attorney general of the intent to transfer ownership or control of the manufactured home
	36	+	2.5park to a private equity company 120 days prior to the transfer of ownership or control.
	37	+	2.6 (b) Together with the notice, the private equity company seeking to acquire ownership
	38	+	2.7or control of the manufactured home park shall provide the attorney general with the
	39	+	2.8following information:
	40	+	2.9 (1) the names of each individual with an interest in the company and the percentage of
	41	+	2.10interest each individual holds in the company;
	42	+	2.11 (2) the complete corporate structure of the company;
	43	+	2.12 (3) the names of each individual holding, and the percent of interest held, in any affiliate,
	44	+	2.13subsidiary, or otherwise related entity with which the company has a contract to provide
	45	+	2.14goods or services that will be used in the operation or maintenance of the manufactured
	46	+	2.15home park or that will be provided to residents, including any real estate investment trusts
	47	+	2.16if permitted under subdivision 6;
	48	+	2.17 (4) for the previous five years, any filings that were required to be made to any agency
	49	+	2.18of the federal government or a state government;
	50	+	2.19 (5) evidence as to the condition of the water infrastructure of the park that the private
	51	+	2.20equity company seeks to acquire or control, including but not limited to the park's
	52	+	2.21distribution, sewer, and septic systems and the park's water quality; and
	53	+	2.22 (6) any other information the attorney general may require.
	54	+	2.23 (c) Together with the notice, the private equity company seeking to acquire ownership
	55	+	2.24or control of the manufactured home park shall submit an affidavit to the attorney general,
	56	+	2.25accompanied by evidence, sufficient to demonstrate that:
	57	+	2.26 (1) the private equity company has the financial, managerial, and operational ability to
	58	+	2.27operate or manage the manufactured home park consistent with the other requirements of
	59	+	2.28this chapter, chapters 327 and 327B, and any other applicable Minnesota law and rule;
	60	+	2.29 (2) neither the company nor any of the owners, officers, or any employees of the company
	61	+	2.30have ever been convicted of a crime or found civilly liable for an offense involving moral
	62	+	2.31turpitude, including forgery, embezzlement, obtaining money under false pretenses, larceny,
	63	+	2.32extortion, conspiracy to defraud, or any other similar offense or violation, or any violation
64	64		2Section 1.
65		-	S1450-1 1st EngrossmentSF1450 REVISOR MS 3.1 (6) results in a reduction in the quality of services or amenities provided to the residents;
66		-	3.2or
67		-	3.3 (7) violates any provisions of this chapter or chapter 327B.
68		-	3.4 Subd. 4.Attorney general enforcement.A violation of this section is an unfair and
69		-	3.5unconscionable practice in violation of section 325F.69, subdivision 1. The attorney general
70		-	3.6may enforce this section under section 8.31.
	65	+	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,
	66	+	3.2deceptive trade practices, or similar consumer protection law;
	67	+	3.3 (3) in the preceding ten years, there have been no judgments or completed or pending
	68	+	3.4private or public litigation, tax liens, written complaints, administrative actions, or
	69	+	3.5investigations by any government agency against the private equity company or any of its
	70	+	3.6owners, officials, or employees, unresolved or otherwise, filed or otherwise commenced;
	71	+	3.7 (4) in the preceding ten years, the company has not defaulted in the payment of money
	72	+	3.8collected for others, including the discharge of debts through bankruptcy proceedings;
	73	+	3.9 (5) the company will invest sufficient capital in the manufactured home park to maintain
	74	+	3.10the park's infrastructure, if it is adequate, or to improve the park's infrastructure if it is
	75	+	3.11deteriorating, in disrepair, or needs upgrading;
	76	+	3.12 (6) after acquiring ownership or control of a manufactured home park anywhere in the
	77	+	3.13United States, rents have not increased in any of the manufactured home parks in any one
	78	+	3.14year by more than the Consumer Price Index published by the United States Department of
	79	+	3.15Labor for the 12 months preceding the month in which the increase became effective or, if
	80	+	3.16the private equity company has increased rents or prices by more than the Consumer Price
	81	+	3.17Index, there has been a reasonable justification for the increase; and
	82	+	3.18 (7) within five years after acquiring ownership or control of any other manufactured
	83	+	3.19home park anywhere in the United States, the private equity company has not sold or
	84	+	3.20otherwise transferred ownership or control to another person or entity.
	85	+	3.21 (d) Ownership or control of a manufactured home park may not be transferred to a private
	86	+	3.22equity company unless approved by the attorney general. Approval may be granted only if
	87	+	3.23the attorney general finds that the transfer will not:
	88	+	3.24 (1) result in an adverse impact on the health, safety, and well-being of the residents of
	89	+	3.25the manufactured home park;
	90	+	3.26 (2) lead to unaffordable rent increases for the residents;
	91	+	3.27 (3) lead to a reduction in the quality of services provided to the residents; and
	92	+	3.28 (4) lead to a reduction in maintenance or a deterioration in the operations and of the
	93	+	3.29infrastructure of the park, if in adequate condition.
	94	+	3.30 (e) If the attorney general does not issue an approval or denial within 120 days of receipt
	95	+	3.31of the notice of intent to acquire ownership or control of a manufactured home park, approval
	96	+	3.32is deemed to have been given. If the notice is incomplete or additional information is
71	97		3Section 1.
72		-	S1450-1 1st EngrossmentSF1450 REVISOR MS
	98	+	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
	99	+	4.2days.
	100	+	4.3 (f) In addition to the requirements under this section for approval of the acquisition, the
	101	+	4.4attorney general may impose any other requirements deemed necessary to protect the
	102	+	4.5residents of the manufactured home park or protect the public interest.
	103	+	4.6 Subd. 3.Conditional approval.(a) The attorney general may waive the notice period
	104	+	4.7and issue immediate, conditional approval if:
	105	+	4.8 (1) the health, safety, and well-being of the residents are in immediate jeopardy if the
	106	+	4.9transfer of ownership or control is not immediately effectuated; or
	107	+	4.10 (2) the owner of the manufactured home park can demonstrate a substantial likelihood
	108	+	4.11that, absent the waiver, it will have to file for bankruptcy under chapter 11 of the Bankruptcy
	109	+	4.12Act, United States Code, title 11, section 1101, et seq., or that it is at imminent risk of
	110	+	4.13liquidation under chapter 7 of the Bankruptcy Act, United States Code, title 11, section 701,
	111	+	4.14et seq.
	112	+	4.15 (b) Within 90 days of issuing conditional approval, the attorney general must determine
	113	+	4.16whether approval shall be permanent or if approval shall be withdrawn. If permanent approval
	114	+	4.17is withdrawn for acquisition of ownership or control of a manufactured home park, the
	115	+	4.18attorney general shall appoint a receiver and apply to the district court in the county in which
	116	+	4.19the manufactured home park is located for confirmation of the appointment. The district
	117	+	4.20court shall have exclusive jurisdiction to determine all matters related to the receivership.
	118	+	4.21 Subd. 4.Appeal of denial.A private equity company that has been denied approval to
	119	+	4.22acquire ownership or control of a manufactured home park may, within 30 days of receipt
	120	+	4.23of the notice of denial, file an appeal with the Office of Administrative Hearings. Upon
	121	+	4.24receipt of an appeal, the Office of Administrative Hearings must, at the discretion of the
	122	+	4.25chief administrative judge, conduct a hearing or refer the matter for a contested case
	123	+	4.26proceeding under chapter 14.
	124	+	4.27 Subd. 5.Prohibited practice.A private equity company acquiring ownership or control
	125	+	4.28of a manufactured home park is prohibited from engaging in any act, practice, or course of
	126	+	4.29business that would strip an asset from the manufactured home park or otherwise undermine
	127	+	4.30the quality or safety of, or access to, care and services.
	128	+	4.31 Subd. 6.Limitation on the use of real estate investment trusts.A private equity
	129	+	4.32company may enter into an arrangement with a real estate investment trust in connection
	130	+	4.33with the manufactured home park only if it can demonstrate to the attorney general that:
	131	+	4Section 1.
	132	+	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
	133	+	5.2rent for residential multifamily properties in the market area in which the manufactured
	134	+	5.3home park is situated; and
	135	+	5.4 (2) the private equity company's acquisition of the manufactured home park would not
	136	+	5.5cause hardship or have an unduly adverse impact on residents and their ability to afford
	137	+	5.6housing.
	138	+	5.7 Subd. 7.Reports to the attorney general.Thirteen months after the acquisition of
	139	+	5.8ownership or control of a manufactured home park by a private equity company and every
	140	+	5.912 months thereafter, the company must submit a report to the attorney general on:
	141	+	5.10 (1) the financial status of the company and any other covered entities;
	142	+	5.11 (2) impacts and outcomes on the safety of residents and the affordability of rent for
	143	+	5.12residents;
	144	+	5.13 (3) any filings required to be made to any agency of the federal government;
	145	+	5.14 (4) the annual balance sheet of the company;
	146	+	5.15 (5) the total dollar amount of aggregate fees and expenses collected by the private equity
	147	+	5.16company, the manager of the company, and related parties, categorized by the type of fee
	148	+	5.17and purpose of the fee;
	149	+	5.18 (6) any management services agreements or sales and leaseback arrangements between
	150	+	5.19the company and any affiliated or nonaffiliated companies and an itemization by category
	151	+	5.20and amount of the fees paid;
	152	+	5.21 (7) any services procured by the company from any other company owned by or affiliated
	153	+	5.22with the company;
	154	+	5.23 (8) all political spending by the company, including contributions and lobbying spending
	155	+	5.24to members of or candidates for the Minnesota legislature, and with respect to issues affecting
	156	+	5.25manufactured home parks; and
	157	+	5.26 (9) the total number of manufactured home parks operating in Minnesota owned or
	158	+	5.27controlled by the company and the names and locations of each manufactured home park.
	159	+	5.28 Sec. 2. ATTORNEY GENERAL INVESTIGATION.
	160	+	5.29 (a) The attorney general shall investigate the impact on residents and the state of the
	161	+	5.30acquisition of ownership and control of manufactured home parks by private equity
	162	+	5.31companies, as that term is defined in Minnesota Statutes, section 327C.098.
	163	+	5Sec. 2.
	164	+	25-02419 as introduced02/10/25 REVISOR MS/CH 6.1 (b) The investigation shall identify the number of acquisitions that have occurred during
	165	+	6.2the previous ten years and identify the names of the private equity companies and the
	166	+	6.3principals of those companies.
	167	+	6.4 (c) The attorney general, in consultation with the commissioner of health, shall evaluate
	168	+	6.5the impact of the acquired manufactured home parks on:
	169	+	6.6 (1) rents and the cost of services;
	170	+	6.7 (2) the maintenance, physical condition, resiliency, energy efficiency, and other indicators
	171	+	6.8of a sound building infrastructure of the properties acquired or leased by the private equity
	172	+	6.9company;
	173	+	6.10 (3) capital improvements made; and
	174	+	6.11 (4) the financial health of the manufactured home parks after acquisition of ownership
	175	+	6.12or control.
	176	+	6.13 (d) The attorney general shall report the findings of the investigation to the chairs and
	177	+	6.14ranking minority members of the legislative committees with jurisdiction over manufactured
	178	+	6.15home parks by February 15, 2026.
	179	+	6.16 EFFECTIVE DATE.This section is effective the day following final enactment.
	180	+	6.17 Sec. 3. APPROPRIATION.
	181	+	6.18 $....... in fiscal year 2026 is appropriated from the general fund to the attorney general
	182	+	6.19to conduct an investigation into the impact on residents and the state of the acquisition of
	183	+	6.20ownership and control of manufactured home parks by private equity companies.
	184	+	6Sec. 3.
	185	+	25-02419 as introduced02/10/25 REVISOR MS/CH