Operative Text
Subdivision 1.Billing permitted. A park owner who either provides utility service directly to residents or who redistributes to residents utility service provided to the park owner by a utility provider may charge the residents for that service, only if the charges comply with this section. Subd. 2.Metering required. A park owner who charges residents for a utility service must charge each household the same amount, unless the park owner has installed measuring devices which accurately meter each household's use of the utility. Utility measuring devices installed by the park owner must be installed or repaired only by a licensed plumber, licensed electrician, or licensed manufactured home installer. Subd. 3.Permissible rates. Except as provided in subdivision 4, no park owner shall, directly or indirectly, charge or otherwise receive payment from a resident for a utility service, or require a resident to purchase a utility service from the park owner or any other person, at a rate which is greater than either of the following: (1) a rate which the resident could pay directly for the same utility service from some other comparable source in the same market area; or (2) a rate which is charged to single family dwellings with comparable service within the same market area. Subd. 4. MS 2022 [Repealed, 2023 c 57 art 5 s 17] Subd. 5.Utility charge for metered service. (a) A park owner who redistributes utility service may not charge a resident a commodity rate that exceeds the commodity rate at which the park owner purchases utility service from a utility provider. Before billing residents for redistributed utility service, a park owner must deduct utility service used exclusively or primarily for the park owner's purposes. (b) If a utility bill that a park owner receives from a utility provider separates from variable consumption charges a fixed service or meter charge or fee, taxes, surcharges, or other miscellaneous charges, the park owner must deduct the park owner's pro rata share of these separately itemized charges and apportion the remaining fixed portion of the bill equally among residents based on the total number of occupied units in the park. (c) A park owner may not charge to or collect from residents any administrative, capital, or other expenses associated with the distribution of utility services, including but not limited to disconnection, reconnection, and late payment fees. Subd. 6.Rent increases following the installation of water meters. A park owner may not increase lot rents for 13 months following the commencement of utility bills for a resident whose lease included water and sewer service. In each of the three months prior to commencement of utility billing, a park owner must provide the resident with a sample bill for water and sewer service.
Minn. Stat. § 327C.04 governs how manufactured home park owners may bill residents for utility services. Park owners may only charge for utilities if they follow specific rules: individual metering is required before households can be billed different amounts, and rates charged to residents cannot exceed what residents could pay directly from a comparable source. When a park owner redistributes utility service, the rate passed to residents cannot exceed what the park owner pays, and administrative or capital costs related to distribution cannot be passed on. A 13-month rent-increase freeze applies after utility billing begins for residents whose leases previously included water and sewer.
Plain English — not legal advice.
Under § 327C.04, compliant park operators ensure that any utility charges to residents do not exceed rates available from comparable sources in the same market area. When redistributing utility service, operators bill only at or below their own purchase rate, deduct usage attributable to park operations, and apportion fixed charges proportionally among occupied units. Operators also refrain from passing along administrative, disconnection, reconnection, or late-payment fees, and they provide sample bills for three consecutive months before commencing metered water and sewer billing.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 327C.04 gives manufactured home park residents the right to be charged for utilities only at rates no higher than what they could obtain from a comparable source, and prohibits parks from tacking on administrative or distribution-related fees. Residents whose leases previously covered water and sewer are protected from lot-rent increases for 13 months after utility billing begins. Tenants who believe these rules are being violated may contact a local tenant-rights organization, raise the violation as a defense in any related proceeding, or reach out to the Minnesota Attorney General's office for guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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