The Hidden Cost of Mobile Home Park Closures: What Elevated Management’s Decision Means for the Industry

Last Updated on March 17, 2025 by Ian Golightly

Introduction

The closure of Maple Fields Mobile Home Park in Hermantown, Minnesota, has ignited serious concerns about the future of affordable housing for residents. The park’s owner, Elevated Management LLC, has chosen to shut down operations rather than comply with court-ordered repairs, leaving many tenants at risk of homelessness.

This case highlights a critical issue in the manufactured housing sector: What are the implications of closing a mobile home park instead of investing in improvements? More importantly, what lessons can property management companies take away from this situation to ensure long-term sustainability?

Why Do Owners Choose Closure Over Repairs?

1.Financial Burden of Compliance

Mobile home parks, especially older ones, often require significant capital investment to meet updated building codes and safety regulations. In the case of Maple Fields, issues such as failed plumbing, raw sewage spills, nonconforming electrical work, and water damage required extensive remediation. Elevated Management’s owner, Steve Schneeberger, stated that he was unaware of the severity of these issues before purchasing the property. However, local officials argue that the company made minimal financial efforts to address these concerns.

In situations like these, park owners may view closure as the lesser of two financial burdens, especially if the cost of repairs outweighs potential revenue. However, this decision does not come without consequences.

2.Legal and Regulatory Pressure

When tenants report rental violations, local authorities may intervene and impose corrective mandates. In the case of Maple Fields, the city of Hermantown and a Minnesota judge required Elevated Management to provide alternative housing for residents whose homes were deemed uninhabitable. Rather than comply, the company moved to close the park, triggering legal challenges from both residents and state officials.

3.Retaliation Against Tenants

Legal representatives for residents argue that the closure of Maple Fields is, in part, an act of retaliation against those who reported unsafe living conditions. If true, this raises ethical concerns about the power dynamics between landlords and low-income tenants who often have limited housing alternatives.

The Impact of Mobile Home Park Closures on Residents

1.Risk of Homelessness

One of the most immediate consequences of a mobile home park closure is displacement. Many residents of Maple Fields lived in their units on short-term, month-to-month leases, making them particularly vulnerable to sudden eviction notices. Even those who owned their mobile homes were given notice to vacate, despite state laws requiring at least a one-year warning before eviction.

2.Lack of Affordable Housing Alternatives

The affordable housing crisis is a nationwide issue. Once a mobile home park closure occurs, finding comparable housing at a similar price point can be nearly impossible. Many displaced tenants struggle to secure alternative housing, leading to overcrowding in shelters or forcing families to relocate far from their jobs, schools, and communities.

3.Legal Battles and Tenant Rights

As seen in Maple Fields, legal interventions can sometimes delay evictions, but they rarely offer permanent solutions. In this case, attorneys sought court orders to block evictions, citing Minnesota laws that protect mobile home park residents. However, these legal actions take time, and in many cases, tenants end up losing their homes regardless.

Lessons for Property Management Companies

1.Due Diligence Before Purchasing a Mobile Home Park

One of the biggest takeaways from this case is the importance of conducting thorough inspections before acquiring a property. Owners should ensure they fully understand the financial and legal obligations required to maintain compliance.

2.Proactive Maintenance and Capital Expenditures

Waiting until a property reaches crisis levels before making repairs is a costly mistake. Regular inspections and planned capital expenditures can prevent situations where closure becomes the only viable option.

3.Building Good Relationships with Tenants and Officials

Open communication with residents and local authorities can help resolve issues before they escalate into legal disputes. Property management firms that prioritize tenant safety and well-being are more likely to find long-term success than those that rely on legal maneuvering to avoid responsibilities.

Conclusion

The case of Maple Fields Mobile Home Park serves as a cautionary tale for the manufactured housing industry. While closing a park may seem like the easiest way out of financial and legal troubles, it carries severe consequences for residents and can damage a company’s reputation in the long run.

For property managers and investors, the lesson is clear: sustainable operations require proactive investment, ethical management, and a commitment to providing safe, affordable housing. By learning from these situations, the industry can work toward solutions that benefit both business owners and residents.

 

Sources:

Duluth News Tribune: Owner seeks to close Hermantown mobile home park
Image: Maple Fields Mobile Home Park in Hermantown, as seen on Jan. 3-Wyatt Buckner | Duluth Media Group