SAINT PAUL – Minnesota Housing has filed a lawsuit against Schierholz & Associates, Inc., the owner of Broadmoor Valley manufactured home park in Marshall, seeking to prevent its closure in December 2025. The suit, filed in Ramsey County District Court, alleges that Schierholz is violating a grant agreement tied to $500,000 in state funding by attempting to shutter the park and by raising lot rents beyond agreed limits.
Under the terms of the 2022 grant agreement through Minnesota Housing’s Manufactured Home Community Redevelopment Program, Schierholz committed to maintaining Broadmoor Valley as an affordable manufactured home park for 25 years. However, the agency claims that Schierholz began disregarding these terms soon after receiving the funds.
“Minnesota Housing’s priority is to protect Broadmoor Valley residents and preserve the property as an affordable housing option,” said Commissioner Jennifer Ho. “We will ensure that those who accept state funding honor their commitments.”
Schierholz’s actions include filing for Chapter 11 bankruptcy in January 2023 in an attempt to bypass the agreement’s protections, announcing plans to close the park in November 2024, and attempting a 33% rent increase in May 2024 before state intervention forced a rollback. Additionally, despite spending only $150,000 of the allocated $500,000, Schierholz has continued applying for more state funding annually since 2022.
Minnesota Housing’s lawsuit seeks to uphold the integrity of the state’s affordable housing programs, which prioritize preserving manufactured home communities through infrastructure improvements and cooperative ownership models.
