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HF 5075

Eligibility for assistance to manufactured home owners experiencing economic displacement created, and maximum threshold for assistance through the manufactured home relocation trust fund eliminated.

2025-2026 Regular Session Introduced by Peter Fischer and 7 co-sponsors

HF 5075 expands eligibility for manufactured home relocation assistance by defining economic displacement, adjusting fees, and increasing fund transparency and payouts.

Author added Pursell
#housingandhousingfinanceagency #manufacturedandmobilehomes
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WeVote Research Nonpartisan
Bill Summary · HF 5075

Summary of HF 5075 (2025-2026) – Minnesota

Purpose and Intent

HF 5075 creates eligibility for assistance to manufactured home owners experiencing economic displacement and eliminates the maximum threshold for assistance through the Minnesota Manufactured Home Relocation Trust Fund. The bill clarifies definitions, expands access to relocation support, and adjusts funding mechanisms and procedures to ensure displaced homeowners can relocate or receive financial assistance.

Key Provisions and Changes

1) Definition of Economic Displacement

  • Introduces a new Subdivision 4a for section 327C.015 defining “Economic displacement.”
  • Displacement occurs when a manufactured home owner relocates due to:
    • A lot rent increase exceeding 10% in one year or 20% over three years; or
    • A rent/expense increase totaling 30% of the owner’s adjusted annual income.
  • Includes increases in utility and service charges within the lot rent in calculating displacement.

2) Fees and Participation in the Relocation Trust Fund

  • Amends Sec. 327C.03, Subd. 6 to allow park owners assessed under 327C.095, Subd. 12 to collect a $15 annual payment (now subject to a new maximum: $1.25 monthly) for participation in the relocation fund, as a lump sum or added to monthly lot rent.
  • The $1.25 monthly fee must be separately itemized and labeled “Minnesota manufactured home relocation trust fund.”
  • If the fund balance falls below a threshold, park owners are assessed the per-park fee, with detailed annual notices and outreach requirements to residents.

3) Relocation Payments and Eligibility (Subd. 12)

  • Revisions specify payment obligations when displacement occurs due to conversion, closure, cessation of use, or economic displacement.
  • The park owner pays into the relocation fund the lesser of actual relocation costs or set caps (as detailed in the bill), with a cap tied to the fund and neutral third-party determinations.
  • Exemptions exist where certain conditions apply (e.g., owner relocates tenants within the same park, nonpayment of rent, eviction actions, eminent domain, resident not living in the park, or failure to pay required assessments).

4) Payment Process and Caps

  • For relocations, the fund covers up to:
    • $7,000 for a single-section home; $12,500 for a multi-section home (actual relocation costs or caps, whichever is lesser, consistent with the neutral third-party determination).
  • The neutral third party processes applications within 14 days of receipt; if no decision in 45 days, the claim is deemed approved.
  • If approved, two checks are issued: 50% to the mover/towing contractor, and 50% to the homeowner for ancillary costs.
  • A non-relocation alternative option allows the homeowner to tender title and receive a compensable amount, subject to appraised value caps ($8,000 single-section; $14,500 multi-section) with a minimum payout floor.

5) Minimums, Maximums, and Alternatives

  • Minimum reimbursement: $2,000 (single-section) or $4,000 (multi-section), or a percentage of appraised value, whichever is greater.
  • The agreement process requires specific documentation (closure notice, relocation contracts, certifications).
  • Provisions allow appraisal-based settlements if relocation within 50 miles is not feasible.

6) Reporting and Oversight

  • The Minnesota Housing Finance Agency (MHFA) must post fund details and annual reports, including balance, claim payments, advances, insufficiencies, and administrative costs.
  • Required annual reporting to Senate Finance and House Ways and Means on fund status; priority for earliest unpaid claims when funds are sufficient.

Affected Parties

  • Manufactured home park owners: subject to new assessment and fee structures, and obligations to fund relocation costs.
  • Manufactured home owners: potential recipients of relocation payments or alternative compensation; protections for displacement events.
  • Neutral third party: administrative role in processing payments and ensuring compliance.
  • Minnesota Housing Finance Agency (MHFA): administers fund disbursement, reporting, and coordination.

Procedural/Timeline Aspects

  • Initial introduction and referral to Housing Finance and Policy in 2026.
  • Ongoing administration with annual balance and claim reporting, and annual fee assessments if fund balance requires, through October reporting cycles.
  • Payments to claimants processed promptly, with deeming provisions if decisions are delayed.

This bill focuses on expanding eligibility for relocation assistance, clarifying displacement triggers, adjusting funding mechanics, and enhancing transparency and oversight of the Relocation Trust Fund.

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

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