In July 2022, the Minnesota Attorney General’s Office filed a lawsuit against Lakeshore Management, Inc., a mobile home park company, alleging that the company had violated multiple Minnesota laws related to manufactured-home park rentals. The lawsuit alleged that Lakeshore Management had:
- Unlawfully increased rent for residents without providing proper notice
- Enforced unreasonable rules and restrictions on residents
- Failed to maintain the mobile home park in a habitable condition
Allegations
The lawsuit specifically alleged that Lakeshore Management had:
- Increased rent on residents by up to 20% without providing the required 90 days’ notice
- Prohibited residents from having more than two guests in their homes at a time
- Required residents to obtain approval from the company before making any modifications to their homes
- Failed to provide residents with adequate notice of park maintenance activities
- Failed to properly maintain the park’s roads, sidewalks, and landscaping
Impact
The lawsuit had a significant impact on Lakeshore Management. The company was forced to cease enforcing its unreasonable rules and restrictions, provide proper notice of rent increases, and maintain the mobile home park in a habitable condition. The company was also required to pay restitution to affected residents.
Settlement
In December 2022, Lakeshore Management reached a settlement with the Minnesota Attorney General’s Office. Under the terms of the settlement, the company agreed to:
- Pay $2.7 million in restitution to affected residents
- Comply with all applicable Minnesota laws related to manufactured-home park rentals
- Implement a new compliance program to ensure that its policies and practices are in compliance with the law
Key Takeaways
The Lakeshore Management lawsuit highlights several important issues for mobile home park residents:
- Residents have the right to be treated fairly by their landlords
- Residents should be aware of their rights under the law
- Residents should report any violations of their rights to the appropriate authorities
The lawsuit also serves as a reminder that mobile home park companies must comply with all applicable laws and regulations. Failure to do so can result in significant legal consequences.
