Advocates urge more funding and stronger tools to preserve manufactured home communities

Advocates and industry speakers told the House Housing Finance and Policy Committee that manufactured housing is a major source of affordable homeownership in Minnesota and asked for stronger preservation tools.

Emily Stewart, associate director of KO North, said manufactured housing serves "over 180,000 residents" in Minnesota and described resident‑owned cooperative conversions as a preservation strategy. She reviewed the Manufactured Home Community Redevelopment (MHCR) program, which she said has awarded $44 million in grants to date and for which advocates have requested a $15 million appropriation to scale up infrastructure support. Stewart also warned of a recent surge in private‑equity purchases of parks and cited two high‑profile transactions and lot‑rent increases as examples of investor‑driven instability.

Witnesses discussed financing options for resident cooperatives (CDFIs, revolving acquisition funds), the barriers created by manufactured homes being treated as personal property for mortgage purposes, and the potential benefits of title reform that would enable 30‑year mortgage products. Stewart said a state‑backed acquisition fund has helped preserve parcels through below‑market lending and that notice‑of‑sale and a 5% tax credit passed in 2023 have helped but may lack sufficient enforcement: she cited Commerce data showing eight posted notices compared with 42 sales through December (presentation caveat: transcript notes the numbers and that exemptions may apply).

The Manufactured/Modular Home Association (represented in the hearing by Reed Lebow) emphasized the scale of the privately owned park sector (the association said roughly 900 parks and tens of thousands of families) and cautioned against broad regulatory fixes that would unintentionally burden small local owners; association representatives said they communicate notice‑of‑sale requirements to members but asked for time to evaluate results of the 2023 law.

Committee members asked detailed questions about replacement reserves, long‑term financing, how resident co‑ops manage infrastructure debt, and whether state policy should target out‑of‑state private equity buyers; presenters recommended a toolbox approach that includes acquisition financing, resident right‑to‑organize/option‑to‑purchase tools, title reform to access mortgage markets, and stronger notice/enforcement mechanisms.