In 2007, Minnesota law established the Manufactured Home Relocation Trust Fund to provide manufactured (mobile) homeowners with reasonable relocation compensation in the event that all or part of their park closes. The state fund is administered by the Minnesota Housing Finance Agency. The commissioner of Minnesota Management and Budget sends an invoice to park owners as needed to replenish the fund. The law allows park owners to collect the $15 either as a single amount or as part of the monthly charge for lot rent.
The Trust Fund was established by the Minnesota Legislature in response to the risk of park closings. Prior to its adoption, park residents were not guaranteed compensation for relocation costs unless their city passed a local ordinance. At the time the fund was created, only 22 cities in Minnesota had passed such ordinances, leaving over 100,000 residents in 400 cities unprotected. Now, every manufactured (mobile) homeowner in the state is eligible for compensation.
The park owner is invoiced for each licensed lot in the park. The owner will pay into the Trust Fund on behalf of each homeowner. These payments ensure there are resources available to cover relocation costs in the event of a park closure.
In the event of a park closure, the local municipality will appoint a neutral third party approved by the homeowners and the park owner. To file a compensation claim, the homeowner submits a copy of the closure statement and proof that the property taxes are paid. If the home can be moved, the homeowner also provides a contract for moving costs. If the home cannot be moved the homeowner provides a certificate of title with releases on all liens. Upon approval by the neutral party, the Minnesota Housing Finance Agency issues payment to the home movers or the homeowner as appropriate.
Manufactured homeowners are guaranteed reasonable compensation for relocation costs. If you live in a city that has its own ordinance, you may be entitled to receive a higher level of compensation. If the manufactured home can be moved, the compensation for moving costs is up to $7,000 for a single section home and up to $12,500 for a multi-section home. If the home cannot be moved within a 25-mile radius, the compensation is the value of the home up to $8,000 (with a minimum of $2,000) for a single section home and up to $14,500 (with a minimum of $4,000) for a multi-section home.
Yes. If a manufactured homeowner resides in a community that, prior to August 1, 2007, adopted a local ordinance covering relocation or buyout payments, the homeowner can receive the higher of the local ordinance compensation amount or the state law compensation amount. However, the homeowner is still required to pay the annual fee.