Bill targeting private‑equity purchases of manufactured home parks advances after hours of testimony

Senator Roger Putnam described Senate File 1450 as legislation aimed at curbing predatory practices by private‑equity buyers of manufactured home parks. Putnam and multiple witnesses told the committee that since 2015 dozens of parks and several thousand lots in Minnesota changed hands to out‑of‑state investors, and that some purchases were followed by large rent increases and deferred maintenance.

Under the author’s A2 amendment, the bill would: 1) prohibit park owners who meet the bill’s private‑equity definition from stripping assets or undermining infrastructure; 2) restrict rent increases to no more than the Consumer Price Index (CPI) year‑over‑year unless the owner demonstrates commensurate cost increases; 3) prohibit actions that would adversely affect the health, safety or well‑being of residents; and 4) create consumer‑fraud‑type remedies enforceable by the attorney general, including civil penalties up to $25,000 for violations.

Housing Justice Center attorney Shana Jimenez testified that she sees predominantly private‑equity defendants in her caseload, called the investors’ public statements “a direct admission of their profit strategy,” and urged the committee to adopt protections. Matt Spellman of the Minnesota Realtors Association said his organization appreciated deletion of an earlier AG approval requirement in the author’s amendment but raised concerns that a mandatory 120‑day notification to the attorney general and rent‑control‑adjacent language could chill transactions and delay investments. Cecil Smith (Minnesota Multi‑Housing Association) warned about market signals and capital flow impacts, citing broader concerns about rent‑control effects on investment.

Industry witnesses including Mark Bruner and Dustin Brockmeier (a multigenerational local owner) described the need for capital to rehabilitate parks, said private investors have brought professionalism and infrastructure investment in past years, and warned that overly broad definitions of “private equity” and notification requirements could prevent legitimate buyers from acquiring and improving parks.

Committee debate focused on drafting choices: how to define “private equity,” whether a 120‑day notification to the AG would slow market transactions and harm sellers with urgent needs, and how to preserve investment while preventing asset‑stripping. Several senators said they supported the bill’s intent to protect residents; others warned the language could have unintended consequences for capital formation and local owners. The committee approved Putnam’s amended bill and sent it to the Committee on State and Local Government for further review.

Why it matters: Testimony painted a divided picture — resident advocates described rapid profit‑seeking and large rent hikes after some sales, while industry witnesses argued investors also supply capital to address deferred infrastructure and bring professional management. The bill seeks to regulate purchaser behavior and add enforcement tools by the attorney general.

Next steps: SF 1450, as amended, was recommended to pass and referred to the Committee on State and Local Government for further consideration.