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HF 859

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/10/2014 08:13am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/25/2013
1st Engrossment Posted on 03/12/2014
2nd Engrossment Posted on 03/28/2014
3rd Engrossment Posted on 04/09/2014

Current Version - 3rd Engrossment

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A bill for an act
relating to housing; landlord and tenant; establishing remedies for victims of
violence; establishing a housing opportunities made equitable pilot project;
amending Minnesota Statutes 2012, sections 504B.171, subdivision 1; 504B.206;
504B.285, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 504B.171, subdivision 1, is amended to
read:


Subdivision 1.

Terms of covenant.

new text begin (a) new text end In every lease or license of residential
premises, whether in writing or parol, the landlord or licensor and the tenant or licensee
covenant that:

(1) neither will:

(i) unlawfully allow controlled substances in those premises or in the common
area and curtilage of the premises;

(ii) allow prostitution or prostitution-related activity as defined in section 617.80,
subdivision 4
, to occur on the premises or in the common area and curtilage of the premises;

(iii) allow the unlawful use or possession of a firearm in violation of section 609.66,
subdivision 1a
, 609.67, or 624.713, on the premises or in the common area and curtilage
of the premises; or

(iv) allow stolen property or property obtained by robbery in those premises or in the
common area and curtilage of the premises; and

(2) the common area and curtilage of the premises will not be used by either the
landlord or licensor or the tenant or licensee or others acting under the control of either to
manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a
controlled substance in violation of any criminal provision of chapter 152. The covenant
is not violated when a person other than the landlord or licensor or the tenant or licensee
possesses or allows controlled substances in the premises, common area, or curtilage,
unless the landlord or licensor or the tenant or licensee knew or had reason to know of
that activity.

new text begin (b) In every lease or license of residential premises, whether in writing or parol, the
tenant or licensee covenant that the tenant or licensee will not commit an act enumerated
under section 504B.206, subdivision 1, paragraph (a), against a tenant or licensee or
any authorized occupant.
new text end

Sec. 2.

Minnesota Statutes 2012, section 504B.206, is amended to read:


504B.206 RIGHT OF VICTIMS OF deleted text begin DOMESTIC ABUSEdeleted text end new text begin VIOLENCEnew text end TO
TERMINATE LEASE.

Subdivision 1.

Right to terminate; procedure.

(a) deleted text begin A tenant to a residential lease
who is a victim of domestic abuse and fears imminent domestic abuse against the tenant
or the tenant's minor children if the tenant or the tenant's minor children remain in the
leased premises may terminate a lease agreement without penalty or liability as provided
in this section. The tenant must provide advance written notice to the landlord stating that
deleted text end new text begin A tenant to a residential lease may terminate a lease agreement in the manner provided in
this section without penalty or liability, if the tenant or another authorized occupant fears
imminent violence after being subjected to
new text end :

(1) deleted text begin the tenant fears imminent domestic abuse from a person named in an order
for protection or no contact order
deleted text end new text begin domestic abuse, as that term is defined under section
518B.01, subdivision 2
new text end ;

(2) deleted text begin the tenant needs to terminate the tenancy; anddeleted text end new text begin criminal sexual conduct under
sections 609.342 to 609.3451; or
new text end

(3) deleted text begin the specific date the tenancy will terminatedeleted text end new text begin stalking, as that term is defined under
section 609.749, subdivision 1
new text end .

new text begin (b) The tenant must provide signed and dated advance written notice to the landlord:
new text end

new text begin (1) stating the tenant fears imminent violence from a person as indicated in a
qualifying document against the tenant or an authorized occupant if the tenant or
authorized occupant remains in the leased premises;
new text end

new text begin (2) stating that the tenant needs to terminate the tenancy;
new text end

new text begin (3) providing the date by which the tenant will vacate; and
new text end

new text begin (4) providing written instructions for the disposition of any remaining personal
property in accordance with section 504B.271.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end The written notice must be delivered before the termination of the tenancy by
mail, fax, or in person, and be accompanied by deleted text begin the order for protection or no contact order
deleted text end new text begin a qualifying documentnew text end .

deleted text begin (c) For purposes of this section, an order for protection means an order issued under
chapter 518B. A no contact order means a no contact order currently in effect, issued
under section 629.75 or chapter 609.
deleted text end

new text begin (d) The landlord may request that the tenant disclose the name of the perpetrator and,
if a request is made, inform the tenant that the landlord seeks disclosure to protect other
tenants in the building. The tenant may decline to provide the name of the perpetrator for
safety reasons. Disclosure shall not be a precondition of terminating the lease.
new text end

new text begin (e) The tenancy terminates, including the right of possession of the premises, as
provided in subdivision 3.
new text end

Subd. 2.

Treatment of information.

new text begin (a) new text end A landlord must not disclosenew text begin :
new text end

new text begin (1) anynew text end information provided to the landlord by a tenant deleted text begin documenting domestic
abuse
deleted text end new text begin in the written notice requirednew text end under subdivision 1deleted text begin .deleted text end new text begin , paragraph (b);
new text end

new text begin (2) any information contained in the qualifying document;
new text end

new text begin (3) the address or location to which the tenant has relocated; or
new text end

new text begin (4) the status of the tenant as a victim of violence.
new text end

new text begin (b)new text end The informationnew text begin referenced in paragraph (a)new text end must not be entered into any shared
database or provided to any person or entity but may be used when required as evidence in
an eviction proceeding, action for unpaid rent or damages arising out of the tenancy, claims
under section 504B.178, with the consent of the tenant, or as otherwise required by law.

Subd. 3.

Liability for rent; termination of tenancy.

(a) A tenantnew text begin who is a sole
tenant and is
new text end terminating a lease under subdivision 1 is responsible for the rent payment
for the full month in which the tenancy terminates deleted text begin and an additional amount equal to one
month's rent
deleted text end . The tenantnew text begin forfeits all claims for the return of the security deposit under
section 504B.178 and
new text end is relieved of any other contractual obligation for payment of rent or
any other charges for the remaining term of the lease, except as provided in this section.new text begin In
a sole tenancy, the tenancy terminates on the date specified in the notice provided to the
landlord as required under subdivision 1.
new text end

new text begin (b) In a tenancy with multiple tenants, one of whom is terminating the lease under
subdivision 1, any lease governing all tenants is terminated at the latter of the end of
the month or the end of the rent interval in which one tenant terminates the lease under
subdivision 1. All tenants are responsible for the rent payment for the full month in which
the tenancy terminates. Upon termination, all tenants forfeit all claims for the return of
the security deposit under section 504B.178 and are relieved of any other contractual
obligation for payment of rent or any other charges for the remaining term of the lease,
except as provided in this section. Any tenant whose tenancy was terminated under this
paragraph may reapply to enter into a new lease with the landlord.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end This section does not affect a tenant's liability for delinquent, unpaid rent
or other amounts owed to the landlord before the lease was terminated by the tenant
under this section.

deleted text begin (c) The tenancy terminates, including the right of possession of the premises, on the
termination date stated in the notice under subdivision 1. The amount equal to one month's
rent must be paid on or before the termination of the tenancy for the tenant to be relieved of
the contractual obligations for the remaining term of the lease as provided in this section.
deleted text end

deleted text begin (d) For purposes of this section, the provisions of section 504B.178 are triggered
as follows:
deleted text end

deleted text begin (1) if the only tenant is the tenant who is the victim of domestic abuse and the
tenant's minor children, if any, upon the first day of the month following the later of:
deleted text end

deleted text begin (i) the date the tenant vacates the premises; or
deleted text end

deleted text begin (ii) the termination of the tenancy indicated in the written notice under subdivision
1; or
deleted text end

deleted text begin (2) if there are additional tenants bound by the lease, upon the expiration of the lease.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Multiple tenants. deleted text end

deleted text begin Notwithstanding the release of a tenant from a lease
agreement under this section, if there are any remaining tenants the tenancy continues for
those remaining tenants.
deleted text end

Subd. 5.

Waiver prohibited.

A residential tenant may not waive, and a landlord
may not require the residential tenant to waive, the tenant's rights under this section.

Subd. 6.

deleted text begin Definitiondeleted text end new text begin Definitionsnew text end .

For purposes of this section, deleted text begin "domestic abuse"
has the meaning given in section 518B.01, subdivision 2
deleted text end new text begin the following terms have the
meanings given:
new text end

new text begin (1) "court official" means a judge, referee, court administrator, prosecutor, probation
officer, or victim's advocate, whether employed by or under contract with the court, who is
authorized to act on behalf of the court;
new text end

new text begin (2) "qualified third party" means a person, acting in an official capacity, who has had
in-person contact with the tenant and is:
new text end

new text begin (i) a licensed health care professional operating within the scope of the license;
new text end

new text begin (ii) a domestic abuse advocate, as that term is defined in section 595.02, subdivision
1, paragraph (l); or
new text end

new text begin (iii) a sexual assault counselor, as that term is defined in section 595.02, subdivision
1, paragraph (k);
new text end

new text begin (3) "qualifying document" means:
new text end

new text begin (i) a valid order for protection issued under chapter 518B;
new text end

new text begin (ii) a no contact order currently in effect, issued under section 629.75 or chapter 609;
new text end

new text begin (iii) a writing produced and signed by a court official, acting in an official capacity,
documenting that the tenant or authorized occupant is a victim of domestic abuse, as that
term is defined under section 518B.01, subdivision 2, criminal sexual conduct, under
sections 609.342 to 609.3451, or stalking, as that term is defined under section 609.749,
subdivision 1, and naming the perpetrator, if known;
new text end

new text begin (iv) a writing produced and signed by a city, county, state, or tribal law enforcement
official, acting in an official capacity, documenting that the tenant or authorized occupant
is a victim of domestic abuse, as that term is defined under section 518B.01, subdivision 2,
criminal sexual conduct, under sections 609.342 to 609.3451, or stalking, as that term is
defined under section 609.749, subdivision 1, and naming the perpetrator, if known; or
new text end

new text begin (v) a statement by a qualified third party, in the following form:
new text end

new text begin STATEMENT BY QUALIFIED THIRD PARTY
new text end

new text begin I, .................... (name of qualified third party), do hereby verify as follows:
new text end

new text begin 1. I am a licensed health care professional, domestic abuse advocate, as that term is
defined in section 595.02, subdivision 1, paragraph (l), or sexual assault counselor, as that
term is defined in section 595.02, subdivision 1, paragraph (k), who has had in-person
contact with .................... (name of victim(s)).
new text end

new text begin 2. I have a reasonable basis to believe .................... (name of victim(s)) is a
victim/are victims of domestic abuse, criminal sexual conduct, or stalking and fear(s)
imminent violence against the individual or authorized occupant if the individual remains
(the individuals remain) in the leased premises.
new text end

new text begin 3. I understand that the person(s) listed above may use this document as a basis for
gaining a release from the lease.
new text end

new text begin I attest that the foregoing is true and correctnew text end .

new text begin (Printed name of qualified third party)
new text end

new text begin (Signature of qualified third party)
new text end

new text begin (Business address and business telephone)
new text end

new text begin (Date)
new text end

new text begin Subd. 7. new text end

new text begin Conflicts with other laws. new text end

new text begin If a federal statute, regulation, or handbook
permitting termination of a residential tenancy subsidized under a federal program
conflicts with any provision of this section, then the landlord must comply with the federal
statute, regulation, or handbook.
new text end

Sec. 3.

Minnesota Statutes 2012, section 504B.285, subdivision 1, is amended to read:


Subdivision 1.

Grounds.

new text begin (a) new text end The person entitled to the premises may recover
possession by eviction when:

(1) any person holds over real property:

(i) after a sale of the property on an execution or judgment; or

(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or
after termination of contract to convey the property;

(2) any person holds over real property after termination of the time for which it is
demised or leased to that person or to the persons under whom that person holds possession,
contrary to the conditions or covenants of the lease or agreement under which that person
holds, or after any rent becomes due according to the terms of such lease or agreement; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

new text begin (b) A landlord may not commence an eviction action against a tenant or authorized
occupant solely on the basis that the tenant or authorized occupant has been the victim of
any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this
paragraph should be construed to prohibit an eviction action based on a breach of the lease.
new text end

Sec. 4. new text begin HOUSING OPPORTUNITIES MADE EQUITABLE (HOME) PILOT
PROJECT.
new text end

new text begin (a) The Housing Opportunities Made Equitable (HOME) pilot project is established to
support closing the disparity gap in affordable homeownership for all communities of color
and American Indians in Minnesota and increase housing opportunities for specific groups
while closing the disparity gap that exists in Minnesota. The pilot project may also support
the redevelopment and rebuilding of challenged neighborhoods affected by the foreclosure
crisis. The Minnesota Housing Finance Agency shall collaborate with the Chicano Latino
Affairs Council, Council on Asian-Pacific Minnesotans, Council on Black Minnesotans,
and Minnesota Indian Affairs Council in designing the implementation of the pilot project.
new text end

new text begin (b) If funds are available to the Minnesota Housing Finance Agency, the
commissioner may use the available funds to: support the capacity of several local
community nonprofit housing and service providers to administer the HOME pilot
project under this section, to support providers that assist families to attain sustainable,
affordable homeownership as described in paragraph (c) and to make first mortgage loans
as described in paragraph (d).
new text end

new text begin (c) Assistance to attain sustainable affordable homeownership may include
long-term financial education, training, case management, credit mending, homebuyer
education, and foreclosure prevention mitigation services. The Minnesota Housing
Finance Agency shall choose providers of the assistance described in this paragraph that
have proven track records of assisting culturally diverse groups of people with long-term
education services and that have historically resulted in sustainable affordable housing
opportunities for culturally diverse groups.
new text end

new text begin (d) Funds may be used to make first mortgage financing to homebuyers who have the
financial resources to pay a mortgage but are unable to access a mortgage that meets their
needs. The mortgage loans will be originated by qualified providers. A qualified provider is
a provider that has a proven track record of assisting culturally diverse groups of people in
attaining sustainable affordable homeownership and that, at a minimum, is in good standing
with the Minnesota Department of Commerce, is licensed to originate mortgage loans, and
has demonstrated an ability to underwrite to FHA or conventional underwriting guidelines.
Qualified providers may be paid an origination fee, service release premium and a standard
fee set in order to expand capacity to assist more families with purchasing a home.
new text end