Mobile home utilities and submetering in Minnesota

Minnesota's Chapter 327C tightly regulates how a manufactured home park can bill for utilities: accurate metering, no markup, no junk fees, and a rent freeze when water billing starts. The information below describes how the law generally works; anyone disputing a specific charge should consider consulting a licensed attorney in Minnesota.

What the statute says

Minn. Stat. §327C.04, subd. 1 allows a park that provides or redistributes utility service to bill residents "only if the charges comply with this section." On metering, subd. 2 requires that the park "charge each household the same amount, unless the park owner has installed measuring devices which accurately meter each household's use," and those devices must be installed "only by a licensed plumber, licensed electrician, or licensed manufactured home installer."

On rates, subd. 3 bars charging more than "a rate which the resident could pay directly for the same utility service from some other comparable source in the same market area" or "a rate which is charged to single family dwellings with comparable service." For redistributed service, subd. 5 provides that a park "may not charge a resident a commodity rate that exceeds the commodity rate at which the park owner purchases utility service," must deduct service used for the park's own purposes, and "may not charge to or collect from residents any administrative, capital, or other expenses ... including but not limited to disconnection, reconnection, and late payment fees." And subd. 6 freezes lot rent "for 13 months following the commencement of utility bills for a resident whose lease included water and sewer service," with sample bills required first.

How it works in general

If a Minnesota park bills for utilities, it must either charge every household the same amount or install accurate meters and bill by actual use. The rate can't exceed what the resident could get directly from a comparable source or what single-family homes pay, and for redistributed utilities the park can't charge above its own commodity cost or tack on administrative, capital, disconnection, reconnection, or late fees. When a park converts a water-and-sewer-included lease to separate billing, it must show sample bills for three months first and then can't raise lot rent for 13 months — preventing a hidden double-charge. Metering work must be done by a licensed professional.

Common scenarios

General examples Minnesota park residents commonly encounter:

• A park splits one utility bill unevenly. Without accurate meters, every household must be charged the same (§327C.04, subd. 2).
• A park marks up electricity or water. The rate can't exceed a comparable direct rate or the single-family rate (§327C.04, subd. 3).
• A park adds a "disconnection" or late fee to a utility bill. Those administrative fees are prohibited on redistributed service (§327C.04, subd. 5).

Other authorities that may apply

Chapter 327C governs park utility billing; rates of regulated utilities are overseen by the Minnesota Public Utilities Commission. The written rental agreement sets which utilities are included or billed separately, and a lease provision waiving these protections is void (§327C.02, subd. 4). Federal law can apply in particular situations.