1.1.................... moves to amend H.F. No. 3800, the first engrossment, as follows:
1.2Page 1, after line 6, insert:

1.5Page 1, line 11, delete "or governed by chapter 515B"
1.6Page 1, line 13, delete everything after "cooperatives"
1.7Page 1, line 14, delete everything before the period
1.8Page 1, delete subdivision 2
1.9Renumber the subdivisions in sequence
1.10Page 1, after line 20, insert:
1.11    "Subd. 4. Chapter 515B prevails. In the event of a conflict between this chapter and
1.12chapter 515B, chapter 515B shall control."
1.13Page 2, line 10, delete "of Organization" and before "of" insert "means the articles of
1.14organization"
1.15Page 2, line 13, delete "[or another state]" and insert "or another state"
1.16Page 8, line 15, delete "$........" and insert "$35."
1.17Page 11, line 8, delete "the" and insert "each"
1.18Page 12, line 22, delete the comma and insert "or"
1.19Page 12, line 23, delete ", or 515B" and delete "by terminating"
1.20Page 12, line 24, delete everything before "by"
1.21Page 12, delete lines 27 to 29
2.1Page 12, line 30, delete "(c)" and insert "(b)"
2.2Page 13, line 5, delete the comma and insert "or" and delete ", or" and insert "that is
2.3converting to be subject to this chapter"
2.4Page 13, line 6, delete "515B"
2.5Page 13, line 7, delete everything after "(1)"
2.6Page 13, delete line 8
2.7Page 13, line 9, delete "(i)"
2.8Page 13, line 10, delete "(A)" and insert "(i)"
2.9Page 13, line 11, delete "(B)" and insert "(ii)"
2.10Page 13, line 13, delete "(C)" and insert "(iii)"
2.11Page 13, line 16, delete "(ii)" and insert "(2)"
2.12Page 13, line 17, delete "; and" and insert a period
2.13Page 13, delete lines 18 to 23
2.14Page 13, line 24, delete everything after "effective"
2.15Page 13, line 25, delete "terminated"
2.16Page 13, line 28, delete the comma and insert "or" and delete ", or 515B"
2.17Page 14, line 2, delete "chapter" and insert "chapters" and delete the comma and insert
2.18"and" and delete ", or 515B"
2.19Page 14, lines 5 and 6, delete the comma and insert "and" and delete ", and 515B"
2.20Page 14, line 10, delete the third comma and insert "and" and delete the third comma
2.21Page 14, line 11, delete "and 515B,"
2.22Page 37, line 22, after "members" insert "of the"
2.23Page 41, line 30, before "condition" insert "financial"
2.24Page 43, line 22, delete everything after "members" and insert a period
2.25Page 55, line 16, delete "member's" and insert "member"
2.26Page 72, line 30, before "before" insert "for a nonoccupant membership interest"
2.27Page 72, line 31, before the period, insert "for a nonoccupant membership interest"
2.28Page 72, line 32, after "new contribution" insert "for a nonoccupant membership interest"
3.1Page 90, after line 31, insert:

3.2    "Sec. 91. EFFECTIVE DATE.
3.3This article is effective August 1, 2025."
3.4Page 90, after line 31, insert:


3.7    Section 1. Minnesota Statutes 2022, section 116J.395, subdivision 3, is amended to read:
3.8    Subd. 3. Eligible applicants. Eligible applicants for grants awarded under this section
3.9include:
3.10(1) an incorporated business or a partnership;
3.11(2) a political subdivision;
3.12(3) an Indian tribe;
3.13(4) a Minnesota nonprofit organization organized under chapter 317A;
3.14(5) a Minnesota cooperative association organized under chapter 308A or, 308B, or
3.15308C; or
3.16(6) a Minnesota limited liability corporation organized under chapter 322C, to expand
3.17broadband access.

3.18    Sec. 2. Minnesota Statutes 2022, section 273.11, subdivision 8, is amended to read:
3.19    Subd. 8. Limited equity cooperative apartments. For the purposes of this subdivision,
3.20the terms defined in this subdivision have the meanings given them.
3.21    A "limited equity cooperative" is a corporation organized under chapter 308A or, 308B,
3.22or 308C, which has as its primary purpose the provision of housing and related services to
3.23its members which meets one of the following criteria with respect to the income of its
3.24members: (1) a minimum of 75 percent of members must have incomes at or less than 90
3.25percent of area median income, (2) a minimum of 40 percent of members must have incomes
3.26at or less than 60 percent of area median income, or (3) a minimum of 20 percent of members
3.27must have incomes at or less than 50 percent of area median income. For purposes of this
3.28clause, "member income" shall mean the income of a member existing at the time the
3.29member acquires cooperative membership, and median income shall mean the St.
4.1Paul-Minneapolis metropolitan area median income as determined by the United States
4.2Department of Housing and Urban Development. It must also meet the following
4.3requirements:
4.4    (a) The articles of incorporation set the sale price of occupancy entitling cooperative
4.5shares or memberships at no more than a transfer value determined as provided in the articles.
4.6That value may not exceed the sum of the following:
4.7    (1) the consideration paid for the membership or shares by the first occupant of the unit,
4.8as shown in the records of the corporation;
4.9    (2) the fair market value, as shown in the records of the corporation, of any improvements
4.10to the real property that were installed at the sole expense of the member with the prior
4.11approval of the board of directors;
4.12    (3) accumulated interest, or an inflation allowance not to exceed the greater of a ten
4.13percent annual noncompounded increase on the consideration paid for the membership or
4.14share by the first occupant of the unit, or the amount that would have been paid on that
4.15consideration if interest had been paid on it at the rate of the percentage increase in the
4.16revised Consumer Price Index for All Urban Consumers for the Minneapolis-St. Paul
4.17metropolitan area prepared by the United States Department of Labor, provided that the
4.18amount determined pursuant to this clause may not exceed $500 for each year or fraction
4.19of a year the membership or share was owned; plus
4.20    (4) real property capital contributions shown in the records of the corporation to have
4.21been paid by the transferor member and previous holders of the same membership, or of
4.22separate memberships that had entitled occupancy to the unit of the member involved. These
4.23contributions include contributions to a corporate reserve account the use of which is
4.24restricted to real property improvements or acquisitions, contributions to the corporation
4.25which are used for real property improvements or acquisitions, and the amount of principal
4.26amortized by the corporation on its indebtedness due to the financing of real property
4.27acquisition or improvement or the averaging of principal paid by the corporation over the
4.28term of its real property-related indebtedness.
4.29    (b) The articles of incorporation require that the board of directors limit the purchase
4.30price of stock or membership interests for new member-occupants or resident shareholders
4.31to an amount which does not exceed the transfer value for the membership or stock as
4.32defined in clause (a).
4.33    (c) The articles of incorporation require that the total distribution out of capital to a
4.34member shall not exceed that transfer value.
5.1    (d) The articles of incorporation require that upon liquidation of the corporation any
5.2assets remaining after retirement of corporate debts and distribution to members will be
5.3conveyed to a charitable organization described in section 501(c)(3) of the Internal Revenue
5.4Code or a public agency.
5.5    A "limited equity cooperative apartment" is a dwelling unit owned by a limited equity
5.6cooperative.
5.7    "Occupancy entitling cooperative share or membership" is the ownership interest in a
5.8cooperative organization which entitles the holder to an exclusive right to occupy a dwelling
5.9unit owned or leased by the cooperative.
5.10    For purposes of taxation, the assessor shall value a unit owned by a limited equity
5.11cooperative at the lesser of its market value or the value determined by capitalizing the net
5.12operating income of a comparable apartment operated on a rental basis at the capitalization
5.13rate used in valuing comparable buildings that are not limited equity cooperatives. If a
5.14cooperative fails to operate in accordance with the provisions of clauses (a) to (d), the
5.15property shall be subject to additional property taxes in the amount of the difference between
5.16the taxes determined in accordance with this subdivision for the last ten years that the
5.17property had been assessed pursuant to this subdivision and the amount that would have
5.18been paid if the provisions of this subdivision had not applied to it. The additional taxes,
5.19plus interest at the rate specified in section 549.09, shall be extended against the property
5.20on the tax list for the current year.

5.21    Sec. 3. Minnesota Statutes 2022, section 273.124, subdivision 3, is amended to read:
5.22    Subd. 3. Cooperatives and charitable corporations; homestead and other
5.23property. (a) When property is owned by a corporation or association organized under
5.24chapter 308A or, 308B, or 308C, and each person who owns a share or shares in the
5.25corporation or association is entitled to occupy a building on the property, or a unit within
5.26a building on the property, the corporation or association may claim homestead treatment
5.27for each dwelling, or for each unit in the case of a building containing several dwelling
5.28units, or for the part of the value of the building occupied by a shareholder. Each building
5.29or unit must be designated by legal description or number. The net tax capacity of each
5.30building or unit that qualifies for assessment as a homestead under this subdivision must
5.31include not more than one-half acre of land, if platted, nor more than 80 acres if unplatted.
5.32The net tax capacity of the property is the sum of the net tax capacities of each of the
5.33respective buildings or units comprising the property, including the net tax capacity of each
5.34unit's or building's proportionate share of the land and any common buildings. To qualify
6.1for the treatment provided by this subdivision, the corporation or association must be wholly
6.2owned by persons having a right to occupy a building or unit owned by the corporation or
6.3association. A charitable corporation organized under the laws of Minnesota and not
6.4otherwise exempt thereunder with no outstanding stock qualifies for homestead treatment
6.5with respect to member residents of the dwelling units who have purchased and hold
6.6residential participation warrants entitling them to occupy the units.
6.7(b) To the extent provided in paragraph (a), a cooperative or corporation organized under
6.8chapter 308A or, 308B, or 308C may obtain separate assessment and valuation, and separate
6.9property tax statements for each residential homestead, residential nonhomestead, or for
6.10each seasonal residential recreational building or unit not used for commercial purposes.
6.11The appropriate classification rates under section 273.13 shall be applicable as if each
6.12building or unit were a separate tax parcel; provided, however, that the tax parcel which
6.13exists at the time the cooperative or corporation makes application under this subdivision
6.14shall be a single parcel for purposes of property taxes or the enforcement and collection
6.15thereof, other than as provided in paragraph (a) or this paragraph.
6.16(c) A member of a corporation or association may initially obtain the separate assessment
6.17and valuation and separate property tax statements, as provided in paragraph (b), by applying
6.18to the assessor by June 30 of the assessment year.
6.19(d) When a building, or dwelling units within a building, no longer qualify under
6.20paragraph (a) or (b), the current owner must notify the assessor within 30 days. Failure to
6.21notify the assessor within 30 days shall result in the loss of benefits under paragraph (a) or
6.22(b) for taxes payable in the year that the failure is discovered. For these purposes, "benefits
6.23under paragraph (a) or (b)" means the difference in the net tax capacity of the building or
6.24units which no longer qualify as computed under paragraph (a) or (b) and as computed
6.25under the otherwise applicable law, times the local tax rate applicable to the building for
6.26that taxes payable year. Upon discovery of a failure to notify, the assessor shall inform the
6.27auditor of the difference in net tax capacity for the building or buildings in which units no
6.28longer qualify, and the auditor shall calculate the benefits under paragraph (a) or (b). Such
6.29amount, plus a penalty equal to 100 percent of that amount, shall then be demanded of the
6.30building's owner. The property owner may appeal the county's determination by serving
6.31copies of a petition for review with county officials as provided in section 278.01 and filing
6.32a proof of service as provided in section 278.01 with the Minnesota Tax Court within 60
6.33days of the date of the notice from the county. The appeal shall be governed by the Tax
6.34Court procedures provided in chapter 271, for cases relating to the tax laws as defined in
6.35section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and 278.03,
7.1but including section 278.05, subdivision 2. If the amount of the benefits under paragraph
7.2(a) or (b) and penalty are not paid within 60 days, and if no appeal has been filed, the county
7.3auditor shall certify the amount of the benefit and penalty to the succeeding year's tax list
7.4to be collected as part of the property taxes on the affected property.

7.5    Sec. 4. Minnesota Statutes 2022, section 273.124, subdivision 3a, is amended to read:
7.6    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home park
7.7is owned by a corporation or association organized under chapter 308A or, 308B, or 308C,
7.8and each person who owns a share or shares in the corporation or association is entitled to
7.9occupy a lot within the park, the corporation or association may claim homestead treatment
7.10for the park. Each lot must be designated by legal description or number, and each lot is
7.11limited to not more than one-half acre of land.
7.12    (b) The manufactured home park shall be entitled to homestead treatment if all of the
7.13following criteria are met:
7.14    (1) the occupant or the cooperative corporation or association is paying the ad valorem
7.15property taxes and any special assessments levied against the land and structure either
7.16directly, or indirectly through dues to the corporation or association; and
7.17    (2) the corporation or association organized under chapter 308A or, 308B, or 308C is
7.18wholly owned by persons having a right to occupy a lot owned by the corporation or
7.19association.
7.20    (c) A charitable corporation, organized under the laws of Minnesota with no outstanding
7.21stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
7.22qualifies for homestead treatment with respect to a manufactured home park if its members
7.23hold residential participation warrants entitling them to occupy a lot in the manufactured
7.24home park.
7.25    (d) "Homestead treatment" under this subdivision means the classification rate provided
7.26for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
7.27(5), item (ii), and the homestead market value exclusion under section 273.13, subdivision
7.2835, does not apply.

7.29    Sec. 5. Minnesota Statutes 2023 Supplement, section 273.124, subdivision 6, is amended
7.30to read:
7.31    Subd. 6. Leasehold cooperatives. When one or more dwellings or one or more buildings
7.32which each contain several dwelling units is owned by a nonprofit corporation subject to
8.1the provisions of chapter 317A and qualifying under section 501(c)(3) or 501(c)(4) of the
8.2Internal Revenue Code, or a limited partnership which corporation or partnership operates
8.3the property in conjunction with a cooperative association, and has received public financing,
8.4homestead treatment may be claimed by the cooperative association on behalf of the members
8.5of the cooperative for each dwelling unit occupied by a member of the cooperative. The
8.6cooperative association must provide the assessor with the Social Security numbers or
8.7individual taxpayer identification numbers of those members. To qualify for the treatment
8.8provided by this subdivision, the following conditions must be met:
8.9    (a) the cooperative association must be organized under chapter 308A or, 308B, or 308C
8.10and all voting members of the board of directors must be resident tenants of the cooperative
8.11and must be elected by the resident tenants of the cooperative;
8.12    (b) the cooperative association must have a lease for occupancy of the property for a
8.13term of at least 20 years, which permits the cooperative association, while not in default on
8.14the lease, to participate materially in the management of the property, including material
8.15participation in establishing budgets, setting rent levels, and hiring and supervising a
8.16management agent;
8.17    (c) to the extent permitted under state or federal law, the cooperative association must
8.18have a right under a written agreement with the owner to purchase the property if the owner
8.19proposes to sell it; if the cooperative association does not purchase the property it is offered
8.20for sale, the owner may not subsequently sell the property to another purchaser at a price
8.21lower than the price at which it was offered for sale to the cooperative association unless
8.22the cooperative association approves the sale;
8.23    (d) a minimum of 40 percent of the cooperative association's members must have incomes
8.24at or less than 60 percent of area median gross income as determined by the United States
8.25Secretary of Housing and Urban Development under section 142(d)(2)(B) of the Internal
8.26Revenue Code. For purposes of this clause, "member income" means the income of a member
8.27existing at the time the member acquires cooperative membership;
8.28    (e) if a limited partnership owns the property, it must include as the managing general
8.29partner a nonprofit organization operating under the provisions of chapter 317A and
8.30qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code and the limited
8.31partnership agreement must provide that the managing general partner have sufficient powers
8.32so that it materially participates in the management and control of the limited partnership;
8.33    (f) prior to becoming a member of a leasehold cooperative described in this subdivision,
8.34a person must have received notice that (1) describes leasehold cooperative property in plain
9.1language, including but not limited to the effects of classification under this subdivision on
9.2rents, property taxes and tax credits or refunds, and operating expenses, and (2) states that
9.3copies of the articles of incorporation and bylaws of the cooperative association, the lease
9.4between the owner and the cooperative association, a sample sublease between the
9.5cooperative association and a tenant, and, if the owner is a partnership, a copy of the limited
9.6partnership agreement, can be obtained upon written request at no charge from the owner,
9.7and the owner must send or deliver the materials within seven days after receiving any
9.8request;
9.9    (g) if a dwelling unit of a building was occupied on the 60th day prior to the date on
9.10which the unit became leasehold cooperative property described in this subdivision, the
9.11notice described in paragraph (f) must have been sent by first class mail to the occupant of
9.12the unit at least 60 days prior to the date on which the unit became leasehold cooperative
9.13property. For purposes of the notice under this paragraph, the copies of the documents
9.14referred to in paragraph (f) may be in proposed version, provided that any subsequent
9.15material alteration of those documents made after the occupant has requested a copy shall
9.16be disclosed to any occupant who has requested a copy of the document. Copies of the
9.17articles of incorporation and certificate of limited partnership shall be filed with the secretary
9.18of state after the expiration of the 60-day period unless the change to leasehold cooperative
9.19status does not proceed;
9.20    (h) the county attorney of the county in which the property is located must certify to the
9.21assessor that the property meets the requirements of this subdivision;
9.22    (i) the public financing received must be from at least one of the following sources:
9.23    (1) tax increment financing proceeds used for the acquisition or rehabilitation of the
9.24building or interest rate write-downs relating to the acquisition of the building;
9.25    (2) government issued bonds exempt from taxes under section 103 of the Internal Revenue
9.26Code, the proceeds of which are used for the acquisition or rehabilitation of the building;
9.27    (3) programs under section 221(d)(3), 202, or 236, of Title II of the National Housing
9.28Act;
9.29    (4) rental housing program funds under Section 8 of the United States Housing Act of
9.301937, as amended, or the market rate family graduated payment mortgage program funds
9.31administered by the Minnesota Housing Finance Agency that are used for the acquisition
9.32or rehabilitation of the building;
9.33    (5) low-income housing credit under section 42 of the Internal Revenue Code;
10.1    (6) public financing provided by a local government used for the acquisition or
10.2rehabilitation of the building, including grants or loans from (i) federal community
10.3development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued
10.4under chapter 474A; or
10.5    (7) other rental housing program funds provided by the Minnesota Housing Finance
10.6Agency for the acquisition or rehabilitation of the building;
10.7    (j) at the time of the initial request for homestead classification or of any transfer of
10.8ownership of the property, the governing body of the municipality in which the property is
10.9located must hold a public hearing and make the following findings:
10.10    (1) that the granting of the homestead treatment of the apartment's units will facilitate
10.11safe, clean, affordable housing for the cooperative members that would otherwise not be
10.12available absent the homestead designation;
10.13    (2) that the owner has presented information satisfactory to the governing body showing
10.14that the savings garnered from the homestead designation of the units will be used to reduce
10.15tenant's rents or provide a level of furnishing or maintenance not possible absent the
10.16designation; and
10.17    (3) that the requirements of paragraphs (b), (d), and (i) have been met.
10.18    Homestead treatment must be afforded to units occupied by members of the cooperative
10.19association and the units must be assessed as provided in subdivision 3, provided that any
10.20unit not so occupied shall be classified and assessed pursuant to the appropriate class. No
10.21more than three acres of land may, for assessment purposes, be included with each dwelling
10.22unit that qualifies for homestead treatment under this subdivision.
10.23    When dwelling units no longer qualify under this subdivision, the current owner must
10.24notify the assessor within 60 days. Failure to notify the assessor within 60 days shall result
10.25in the loss of benefits under this subdivision for taxes payable in the year that the failure is
10.26discovered. For these purposes, "benefits under this subdivision" means the difference in
10.27the net tax capacity of the units which no longer qualify as computed under this subdivision
10.28and as computed under the otherwise applicable law, times the local tax rate applicable to
10.29the building for that taxes payable year. Upon discovery of a failure to notify, the assessor
10.30shall inform the auditor of the difference in net tax capacity for the building or buildings in
10.31which units no longer qualify, and the auditor shall calculate the benefits under this
10.32subdivision. Such amount, plus a penalty equal to 100 percent of that amount, shall then be
10.33demanded of the building's owner. The property owner may appeal the county's determination
10.34by serving copies of a petition for review with county officials as provided in section 278.01
11.1and filing a proof of service as provided in section 278.01 with the Minnesota Tax Court
11.2within 60 days of the date of the notice from the county. The appeal shall be governed by
11.3the Tax Court procedures provided in chapter 271, for cases relating to the tax laws as
11.4defined in section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and
11.5278.03, but including section 278.05, subdivision 2. If the amount of the benefits under this
11.6subdivision and penalty are not paid within 60 days, and if no appeal has been filed, the
11.7county auditor shall certify the amount of the benefit and penalty to the succeeding year's
11.8tax list to be collected as part of the property taxes on the affected buildings.

11.9    Sec. 6. Minnesota Statutes 2023 Supplement, section 290.0694, subdivision 1, is amended
11.10to read:
11.11    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions
11.12have the meanings given.
11.13(b) "Qualified property" means a manufactured home park in Minnesota classified as
11.144c(5)(i) or 4c(5)(iii) under section 273.13, subdivision 25, paragraph (d).
11.15(c) "Qualified seller" means a taxpayer, as defined under section 290.01, subdivision 6,
11.16who sells qualified property to: (1) a corporation or association organized under chapter
11.17308A or, 308B, or 308C, where each person who owns a share or shares in the corporation
11.18or association would be entitled to occupy a lot within the qualified property after the sale;
11.19(2) a charitable corporation, organized under the laws of Minnesota with no outstanding
11.20stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
11.21whose members hold residential participation warrants entitling the members to occupy the
11.22units in the manufactured home park; or (3) a nonprofit or a representative acting on behalf
11.23of residents, as defined by section 327C.015, subdivision 13, who purchases the property
11.24on behalf of residents who intend to form a corporation or association as described in clause
11.25(1) or (2).

11.26    Sec. 7. Minnesota Statutes 2022, section 290.0922, subdivision 2, is amended to read:
11.27    Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this
11.28section:
11.29(1) corporations exempt from tax under section 290.05;
11.30(2) real estate investment trusts;
11.31(3) regulated investment companies or a fund thereof;
12.1(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
12.2Code;
12.3(5) township mutual insurance companies;
12.4(6) cooperatives organized under chapter 308A or, 308B, or 308C that provide housing
12.5exclusively to persons age 55 and over and are classified as homesteads under section
12.6273.124, subdivision 3; and
12.7(7) a qualified business as defined under section 469.310, subdivision 11, if for the
12.8taxable year all of its property is located in a job opportunity building zone designated under
12.9section 469.314 and all of its payroll is a job opportunity building zone payroll under section
12.10469.310.
12.11Entities not specifically exempted by this subdivision are subject to tax under this section,
12.12notwithstanding section 290.05.

12.13    Sec. 8. Minnesota Statutes 2023 Supplement, section 290A.03, subdivision 16, is amended
12.14to read:
12.15    Subd. 16. Manufactured home. "Manufactured home" means homesteads that are
12.16manufactured homes as defined in section 273.125, subdivision 8, including manufactured
12.17homes located in a manufactured home community owned by a cooperative organized under
12.18chapter 308A or, 308B, or 308C, and park trailers taxed as manufactured homes under
12.19section 168.012, subdivision 9.

12.20    Sec. 9. Minnesota Statutes 2022, section 327C.095, subdivision 5, is amended to read:
12.21    Subd. 5. Park conversions. If the planned cessation of operation is for the purpose of
12.22converting the part of the park occupied by the resident to a common interest community
12.23pursuant to chapter 515B, the provisions of section 515B.4-111, except subsection (a), shall
12.24apply. The nine-month notice required by this section shall state that the cessation is for the
12.25purpose of conversion and shall set forth the rights conferred by this subdivision and section
12.26515B.4-111, subsection (b). Not less than 120 days before the end of the nine months, the
12.27park owner shall serve upon the resident a form of purchase agreement setting forth the
12.28terms of sale contemplated by section 515B.4-111, subsection (d). Service of that form shall
12.29operate as the notice described by section 515B.4-111, subsection (a). This subdivision does
12.30not apply to the conversion of a manufactured home park to a common interest community:
12.31(1) that is a cooperative incorporated under chapter 308A or, 308B, or 308C;
13.1(2) in which at least 90 percent of the cooperative's members are residents of the park
13.2at the time of the conversion; and
13.3(3) that does not require persons who are residents of the park at the time of the
13.4conversion to become members of the cooperative.

13.5    Sec. 10. Minnesota Statutes 2023 Supplement, section 462A.38, subdivision 1, is amended
13.6to read:
13.7    Subdivision 1. Establishment. A workforce and affordable homeownership development
13.8program is established to award homeownership development grants and loans to cities,
13.9counties, Tribal governments, nonprofit organizations, cooperatives created under chapter
13.10308A or, 308B, or 308C, and community land trusts created for the purposes outlined in
13.11section 462A.31, subdivision 1, for development of workforce and affordable homeownership
13.12projects. The purpose of the program is to increase the supply of workforce and affordable,
13.13owner-occupied multifamily or single-family housing throughout Minnesota.

13.14    Sec. 11. Minnesota Statutes 2022, section 515B.3-101, is amended to read:
13.15515B.3-101 ORGANIZATION OF UNIT OWNERS' ASSOCIATION.
13.16A common interest community shall be administered by an association. The association
13.17shall be incorporated no later than the date the common interest community is created. The
13.18membership of the association at all times consists exclusively of all unit owners or, following
13.19termination of the common interest community, of all former unit owners entitled to
13.20distributions of proceeds under section 515B.2-119 or their heirs, successors, or assigns.
13.21The association shall be organized as a Minnesota profit or nonprofit corporation, or may,
13.22in the case of a cooperative, be organized under chapter 308A or, 308B, or 308C. In the
13.23event of a conflict between this chapter and any other chapter under which the association
13.24is incorporated, this chapter shall control.

13.25    Sec. 12. Minnesota Statutes 2022, section 515B.3-103, is amended to read:
13.26515B.3-103 BOARD OF DIRECTORS, OFFICERS AND DECLARANT
13.27CONTROL.
13.28(a) An association shall be governed by a board of directors whose appointment or
13.29election shall occur no later than the date of creation of the common interest community
13.30and shall be reflected in the association's records. Except as expressly prohibited by the
13.31declaration, the articles of incorporation, bylaws, subsection (b), or other provisions of this
13.32chapter, the board may act in all instances on behalf of the association. In the performance
14.1of their duties, the officers and directors are required to exercise (i) if appointed by the
14.2declarant, the care required of fiduciaries of the unit owners and (ii) if elected by the unit
14.3owners, the care required of a director by section 302A.251, 308B.455, 308C.455, or
14.4317A.251, as applicable. The officers and directors appointed by the declarant shall have
14.5a duty to fulfill, and to cause the association to fulfill, their respective obligations under the
14.6declaration, bylaws, articles of incorporation, and this chapter and to enforce the provisions
14.7of the declaration, bylaws, articles of incorporation, and this chapter against all unit owners,
14.8including the declarant and its affiliates, in a uniform and fair manner. The standards of
14.9conduct for officers and directors set forth in this subsection shall also apply to the officers
14.10and directors of master associations in the exercise of their duties on behalf of the master
14.11association.
14.12(b) The board may not act unilaterally to amend the declaration, to terminate the common
14.13interest community, to elect directors to the board, or to determine the qualifications, powers
14.14and duties, or terms of office of directors, but the board may fill vacancies in its membership
14.15created other than by removal by the vote of the association members for the unexpired
14.16portion of any term.
14.17(c) The declaration may provide for a period of declarant control of the association,
14.18during which a declarant, or persons designated by the declarant, may appoint and remove
14.19the officers and directors of the association. The period of declarant control begins on the
14.20date of creation of the common interest community and terminates upon the earliest of the
14.21following events: (i) five years after the date of the first conveyance of a unit to a unit owner
14.22other than a declarant in the case of a flexible common interest community or three years
14.23in the case of any other common interest community, (ii) the declarant's voluntary surrender
14.24of control by giving written notice to the unit owners pursuant to section 515B.1-115, or
14.25(iii) the conveyance of 75 percent of the units to unit owners other than a declarant.
14.26(d) The board shall cause a meeting of the unit owners to be called, as follows:
14.27(1) If the period of declarant control has terminated pursuant to subsection (c), a meeting
14.28of the unit owners shall be called and held within 60 days after said termination, at which
14.29the board shall be appointed or elected by all unit owners, including declarant, subject to
14.30the requirements of subsection (e).
14.31(2) If 50 percent of the units that a declarant is authorized by the declaration to create
14.32have been conveyed prior to the termination of the declarant control period, a meeting of
14.33the unit owners shall be called and held within 60 days thereafter, at which not less than
15.133-1/3 percent of the members of the board shall be elected by unit owners other than a
15.2declarant or an affiliate of a declarant.
15.3(3) If the board fails or refuses to cause a meeting of the unit owners required to be called
15.4pursuant to subsection (d), then the unit owners other than a declarant and its affiliates may
15.5cause the meeting to be called pursuant to the applicable provisions of the law under which
15.6the association was created. The declarant and its affiliates shall be deemed to be present
15.7at the meeting for purposes of establishing a quorum regardless of their failure to attend the
15.8meeting.
15.9(e) Following the termination of any period of declarant control, the unit owners shall
15.10appoint or elect the board. All unit owners, including the declarant and its affiliates, may
15.11cast the votes allocated to any units owned by them. The board shall thereafter be subject
15.12to the following:
15.13(1) Unless otherwise approved by a vote of unit owners other than the declarant or an
15.14affiliate of the declarant, a majority of the directors shall be unit owners or a natural person
15.15designated by a unit owner that is not a natural person, other than a declarant or an affiliate
15.16of a declarant. The remaining directors need not be unit owners unless required by the
15.17articles of incorporation or bylaws.
15.18(2) Subject to the requirements of subsection (e)(1), the articles of incorporation or
15.19bylaws may authorize the declarant or a person designated by the declarant to appoint one
15.20director, who need not be a member. The articles of incorporation or bylaws shall not be
15.21amended to change or terminate the authorization to appoint one director without the written
15.22consent of the declarant or other person possessing the power to appoint.
15.23(3) Subject to the requirements of subsection (e)(1), the articles of incorporation or
15.24bylaws may authorize special classes of directors and director voting rights, as follows: (i)
15.25classes of directors, (ii) the appointment or election of directors in certain classes by certain
15.26classes of members, or (iii) class voting by classes of directors on issues affecting only a
15.27certain class or classes of members, units, or other parcels of real estate, or to otherwise
15.28protect the legitimate interest of such class or classes. No person may utilize such special
15.29classes or class voting for the purpose of evading any limitation imposed on declarants by
15.30this chapter.
15.31(4) The board shall elect the officers. The directors and officers shall take office upon
15.32election.
15.33(f) In determining whether the period of declarant control has terminated under subsection
15.34(c), or whether unit owners other than a declarant are entitled to elect members of the board
16.1of directors under subsection (d), the percentage of the units conveyed shall be calculated
16.2using as a numerator the number of units conveyed and as a denominator the number of
16.3units subject to the declaration plus the number of units which the declarant is authorized
16.4by the declaration to create on any additional real estate. The percentages referred to in
16.5subsections (c) and (d) shall be calculated without reference to units that are auxiliary to
16.6other units, such as garage units or storage units. A person shall not use a master association
16.7or other device to evade the requirements of this section.
16.8(g) Except as otherwise provided in this subsection, meetings of the board of directors
16.9must be open to the unit owners. To the extent practicable, the board shall give reasonable
16.10notice to the unit owners of the date, time, and place of a board meeting. If the date, time,
16.11and place of meetings are provided for in the declaration, articles, or bylaws, announced at
16.12a previous meeting of the board, posted in a location accessible to the unit owners and
16.13designated by the board from time to time, or if an emergency requires immediate
16.14consideration of a matter by the board, notice is not required. "Notice" has the meaning
16.15given in section 317A.011, subdivision 14. Meetings may be closed to discuss the following:
16.16(1) personnel matters;
16.17(2) pending or potential litigation, arbitration or other potentially adversarial proceedings,
16.18between unit owners, between the board or association and unit owners, or other matters in
16.19which any unit owner may have an adversarial interest, if the board determines that closing
16.20the meeting is necessary to discuss strategy or to otherwise protect the position of the board
16.21or association or the privacy of a unit owner or occupant of a unit; or
16.22(3) criminal activity arising within the common interest community if the board
16.23determines that closing the meeting is necessary to protect the privacy of the victim or that
16.24opening the meeting would jeopardize investigation of the activity.
16.25Nothing in this subsection imposes a duty on the board to provide special facilities for
16.26meetings. The failure to give notice as required by this subsection shall not invalidate the
16.27board meeting or any action taken at the meeting. The minutes of any part of a meeting that
16.28is closed under this subsection may be kept confidential at the discretion of the board.

16.29    Sec. 13. EFFECTIVE DATE.
16.30This article is effective August 1, 2025."
16.31Amend the title accordingly