Minnesota Manufactured Home Relocation Trust Fund


Frequently Asked Questions

What is the Manufactured Home Relocation Trust Fund?

In 2007, the state of Minnesota established the Minnesota Manufactured Home Relocation Trust Fund to provide manufactured (mobile) home owners with reasonable relocation compensation in the event that all or part of their park closes due to private redevelopment. (There are other sources for relocation benefits if the closure results from public redevelopment activity, such as a road project.) A central state fund was created that is overseen by the Minnesota Housing Finance Agency (MHFA). The money in this fund comes from a $15 fee paid by park owners for every homeowner-occupied lot and collected by Minnesota Management & Budget (MMB). [NOTE: The fee was $12 until the Minnesota Legislature changed the amount in 2016.]

Who is responsible for paying the $15 fee and when is it due?

The money in the Relocation Trust Fund comes from a $15 fee assessed on every homeowner-occupied lot. Every year, Minnesota Management & Budget sends a letter by July 31 to park owners explaining whether the fee is being collected for that year, and, if it is, an invoice for all licensed lots. MMB also sends a notice park owners must distribute to homeowners by September 15. Homeowners have until November 30 to make a payment for the $15 fee to the park owner. The park owner has until December 15 to make a payment to MMB. The park owner can adjust the payment to subtract any lots that are vacant or not homeowner occupied. In the years the fee is assessed, park owners can collect the $15 afterwards from the home owners; either as an annual lump sum payment, or $1.25 per month with lot rent.

2019 Relocation Trust Fund materials:

Why wasn’t the fee collected between 2011 and 2017 and why is it being collected now?

Originally, the fee was collected every year. In 2011, the Minnesota Legislature changed the collection to only take place when the balance in the fund on June 30 is less than $1 million. When this change went into effect, the balance in the fund was nearly $1.3 million. The balance went well below that amount and collection began in 2017. In 2019, the Minnesota Legislature changed the collection to take place when the balance in the fund on June 30 is less than $2 million.

Why was the Relocation Trust Fund created?

The Relocation Trust Fund was established through the action of the Minnesota Legislature. It was developed in response to the risk of manufactured home parks closing and home owners being displaced. Prior to creation of the program, park residents were not guaranteed relocation compensation unless their city adopted a local ordinance that required it. In the past, a lot of uncertainty accompanied a park closure; for both home owners, who didn’t know if they were going to receive relocation benefits, and park owners, who didn’t know if they were going to be required to pay them.

What benefits are available through the Relocation Trust Fund?

Manufactured home owners are guaranteed reasonable compensation either to move their homes or to receive a buy-out if their home cannot be moved. For a “single wide” home, the owner can receive up to $7,000 to move the home, or up to $8,000 as a buy-out. For “double wide” home, the owner can up to $12,500 to move the home, or up to $14,500 as a buy-out. The buy-out amount is determined by either a home appraisal, or the tax-assessed value averaged over a five-year period; except that the owner is guaranteed a minimum buyout of $2,000 for a single-wide and $4,000 for a double-wide.

Can a home owner receive any relocation benefits other than what was just described?

If the park closes as a result of public (i.e. government) redevelopment activity, there may be other sources for relocation benefit. Also, if the home owner lives in a city that had a local ordinance covering relocation or buyout payments, they will receive whichever benefits are higher; the local ordinance or the state law. The cities known to have had ordinances are: Anoka, Apple Valley, Austin, Bloomington, Brainerd, Burnsville, Dayton, Elk River, Fridley, Hopkins, Inver Grove Heights, Lake Elmo, Lexington, Mounds View, Oakdale, Red Wing, Rochester, Rosemount, Roseville, Shakopee, St. Anthony Village, and Stacy.

When and how do home owners receive compensation under the Relocation Trust Fund?

A park owner sends a written notice of their intent to close all or part of a park at least 12 months in advance to the home owners, the local municipality, the Minnesota Housing Finance Agency, and the Minnesota Department of Health. The city, township, or county appoints a neutral third party to oversee the closure process. To file a claim, homeowners submit a form available on the Minnesota Housing Finance Agency (MHFA) web site, along with the required documentation. Upon approval by the neutral party the MHFA issues checks to the home movers or the home owner as appropriate.

Does the park owner pay in or take out funds from the Relocation Trust Fund?

Yes, but only if they close a park. Although they can recoup the $15 fee payment from home owners, the park owners are still responsible for paying up to $3,250 for each “single wide” and $6,000 for each “double wide.” When there is a home buy-out, the park owner is responsible for the disposal of the home and can request a credit of up to $1,000 for these costs.

For further information:

Contact All Parks Alliance for Change (APAC) at 651-644-5525, toll free 800-855-361-2722, or info@allparksallianceforchange.org.
APAC is a statewide non-profit organization of manufactured (mobile) home park residents.


2019 LEGISLATIVE UPDATE: Changes to the Manufactured Home Relocation Trust Fund and Right of First Refusal


2016 LEGISLATIVE UPDATE: Changes to the Manufactured Home Relocation Trust Fund

AttachmentSize
Relocation Trust Fund - FAQ, 2017.pdf132.79 KB
MMB - Letter to Park Owners, 7-31-19.pdf968.78 KB
MMB - Notice for Distribution to Residents, 7-31-19.pdf250.26 KB
MMB - Invoice to Park Owners, 7-31-19.pdf365.35 KB
MMB - Homeowner and Lot Certification Form, 7-31-19.pdf261.74 KB
MMB - Relocation Trust Fund FAQ, 7-31-19.pdf776.51 KB