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SF 5276

Eligibility for assistance creation to manufactured home owners experiencing economic displacement

2025-2026 Regular Session Introduced by Liz Boldon

Expands eligibility for relocation assistance to manufactured home owners facing economic displacement by broadening the fund, definitions, and payment rules.

Referred to Housing and Homelessness Prevention
#housingandhousingfinanceagency
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Bill Summary · SF 5276

Overview

SF 5276 is a Minnesota bill aimed at helping manufactured home owners who experience economic displacement. It expands eligibility for relocation assistance, adjusts how funding is funded and administered through the Minnesota manufactured home relocation trust fund, and clarifies definitions and procedures related to relocation costs and payments.

Purpose and intent

  • Provide broader access to financial assistance for manufactured home owners forced to relocate due to economic displacement.
  • Eliminate previously stated maximum thresholds for certain types of relocation payments and streamline funding mechanisms.
  • Clarify definitions of economic displacement and related costs to ensure consistent application of the relocation program.

Key provisions and changes

  • Defining economic displacement (New Section 327C.015, Subd. 4a):

    • An event causing relocation where lot rent increases by more than 10% in one year or 20% over three years, or increases by 30% of the owner’s adjusted annual income.
    • Includes increases in utility and service charges when calculating these thresholds.

  • Funding mechanics for the relocation trust fund (Amendment to 327C.03, Subd. 6):

    • Park owners assessed under 327C.095, Subd. 12, may pay the annual amount as a lump sum or as a monthly fee not to exceed $1.25 per month per lot.
    • The $1.25 fee must be itemized and labeled as related to the Minnesota manufactured home relocation trust fund.

  • Relocation payments and eligibility (Amendment to 327C.095, Subd. 12 and Subd. 13):

    • When a park is closed or undergoes a change in use, or experiences economic displacement (per new definition), park owners must pay into the trust fund the lesser of actual relocation costs approved by a neutral third party and a specified base amount (previously $3,250 for single-section, $6,000 for multisection; exact amounts to be determined in the bill text).
    • Conditions under which park owners are not required to pay remain (e.g., when owners relocate residents within the park, residents are not current on rent, evictions are pending for nonpayment, eminent domain, etc.).
    • If the fund balance is below a threshold (to be determined in place of the old $2,000,000), park owners may be assessed a per-lot amount by year, payable by December 15; notices must be sent to residents with clear instructions, including a non-optional payment directive and a 60-day vacate window if applicable.
    • Assessments may be adjusted for vacant or ineligible lots; funds are deposited and tracked per park.

  • Payment process and remediation (Subd. 13):

    • Eligible relocation costs are paid via a neutral third party with two equal payments to movers and to the resident, upon approval.
    • An alternative option allows a resident to tender title and receive compensation based on an appraisal if relocation is not feasible within 25 miles, with minimum and maximum (or alternative) payment terms to be determined.
    • Provisions ensure alignment with local ordinances and existing program rules; in some cases, amounts are revised to “percentage of appraised value” or other eligible framework.
    • The bill strengthens oversight and reporting responsibilities for the agency and neutral third party, including annual and ongoing reporting to lawmakers.

Who would be affected

  • Manufactured home park owners: subject to revised assessment mechanics, fees, and liability for relocation payments.
  • Manufactured home owners/residents: potential eligibility for relocation assistance, new economic displacement criteria, and clarified timelines for payments and relocations.
  • Minnesota Housing Finance Agency and neutral third party: increased administrative duties, processing timelines, and reporting requirements.

Procedural and timeline notes

  • Effective changes hinge on passage and potential rulemaking to set exact dollar figures (the text shows placeholders where specific amounts will be added).
  • Annual assessments and notices would occur if fund balances fall below the specified threshold; notices must be sent by specific dates with defined deadlines (e.g., December 15 payment due, October 31 notice deadlines).
  • Reports to legislative committees required, with ongoing tracking of fund balance, payments, and administrative costs.

Status

  • Introduced and referred to Housing and Homelessness Prevention (as of 2026-05-11).
  • Co-sponsored by Liz Boldon.

Compiled from official sources — confirm details with the bill’s official record.

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