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S.F. No. 3251 - Mortgage Financing for Manufactured Homes (1st Engrossment)
 
Author: Senator Mark Johnson
 
Prepared By: Priyanka Premo, Senate Counsel (651/296-3914)
 
Date: March 6, 2020



 

Overview

SF 3251 authorizes manufactured homes that are on nonprofit- or cooperative-owned manufactured home parks to be valued as an improvement to real property. When manufactured homes are improvements to real property, they are eligible for traditional mortgage financing. This bill requires the owner to file an affidavit of affixation, provides a statutory form, and authorizes the owner or a secured party to record a notice that the manufactured home is encumbered with a security interest.

Summary

Sec. 1. Manufactured home affixed to real property owned by cooperative.

Subd. 1. Certificates surrendered for cancellations; cooperatives. Authorizes an owner of a manufactured home who affixes their manufactured home to nonprofit- or cooperative-owned real property to surrender their certificate of origin or title for cancellation with the registrar of motor vehicles so that the manufactured home becomes an improvement upon real property. Requires the owner of the manufactured home to submit an affidavit of affixation to the county recorder or registrar of titles. Provides specific requirements for the content of the affidavit. Provides that the registrar of motor vehicles is not liable for any inaccuracies in documents presented under this section and they are not required to investigate the accuracy of statements contained in the documents.

Subd. 2. Affidavit form; cooperatives. Provides a statutory form titled, “Manufactured Home Affidavit of Affixation in a Cooperative” and requires that the affidavit of affixation be substantially similar to this form.

Subd. 3. Perfected security interest prevents surrender. Prohibits the registrar of motor vehicles from cancelling a certificate of title if a security interest has been perfected on the manufactured home. Requires the registrar of motor vehicles to notify the owner that each secured party must release or satisfy the security interest prior to cancellation. Provides that a security interest is not extinguished by permanent attachment to real property or recording of an affidavit of affixation.

Subd. 4. Notice of security interest. Authorizes the owner of the manufactured home or the secured party to record a notice that the manufactured home located on real property is encumbered by a perfected security interest and is not an improvement on real property. Once the security interest is released or satisfied, a notice of release or satisfaction must be recorded with the county recorder or registrar of titles.

Subd. 5. Scaled drawing. Requires the nonprofit or cooperative owner to prepare and record a scaled drawing if the manufactured home occupies land that has not been subdivided.

Sec. 2. Subd. 8. Manufactured homes; sectional structures. Authorizes manufactured homes on nonprofit- or cooperative-owned real property to be valued as an improvement to real property.

 
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