HF 3961

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/04/2024 03:43pm

A bill for an act
relating to landlord and tenants; providing tenants with remedies related to new
construction delays; proposing coding for new law in Minnesota Statutes, chapter
504B.

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

Section 1.

[504B.153] NEW CONSTRUCTION DELAYS; TENANT REMEDIES.

Subdivision 1.

Definition; new construction.

For purposes of this section, "new
construction" means a new building, rehabilitation, modification, reconstruction, any physical
changes altering the use or occupancy of the dwelling units, or an addition to a building.

Subd. 2.

Requirements if landlord cannot deliver occupancy.

(a) If a landlord is
informed by a builder or otherwise knows that a new construction for rental occupancy will
not be available for occupancy by the move-in date established in the lease agreement, the
landlord must, within seven days and prior to the move-in date, notify every tenant affected
and offer the following choices to the tenant to be accepted at the tenant's option:

(1) alternative housing provided by the landlord that is reasonably equivalent in size,
amenities, and location to the unit described in the lease agreement, unless otherwise agreed
upon by the tenant, until the unit may be lawfully inhabited;

(2) payment from the landlord to the tenant, equivalent to the cost of rent established in
the lease agreement, to mitigate the costs of alternative housing secured by the tenant until
the unit described in the lease agreement may be lawfully inhabited; or

(3) termination of the lease agreement and a return to the tenant of all amounts paid to
the landlord, including any rent, deposit, and other payments incurred in entering the lease
agreement.

(b) If a tenant exercises options under paragraph (a), clause (1) or (2), the landlord must
provide the tenant with reimbursements related to security deposits, application fees, parking
fees, pet fees, and any other fees reasonably associated with securing alternative housing.

(c) Tenants exercising options under paragraph (a), clause (1) or (2), may terminate their
lease agreement under paragraph (a), clause (3), if the new construction for rental occupancy
is not available for tenant occupancy within 90 days of the move-in date established in the
lease agreement.

Subd. 3.

Waiver.

Any provision, whether oral or written, of any lease or other agreement,
whereby any provision of this section is waived by a tenant, is contrary to public policy and
void.

Subd. 4.

Remedies.

(a) A violation by the landlord of subdivision 2 is a violation of
section 504B.375. A tenant aggrieved by a violation by the landlord of subdivision 2 may
elect the following remedy:

(1) recovery under section 504B.231; or

(2) recover the greater of one month's rent, $1,000, or actual damages, plus reasonable
attorney's fees and court costs.

(b) The remedies available under this section are in addition to any other remedies
available at equity or law.

EFFECTIVE DATE.

This section is effective August 1, 2024, and applies to all leases
entered into on or after that date.