HF 4050

as introduced - 90th Legislature (2017 - 2018) Posted on 03/19/2018 03:14pm

A bill for an act
relating to housing; requiring notice to the tenants of the sale of certain residential
rental property; proposing coding for new law in Minnesota Statutes, chapter 462A.

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

Section 1.

new text begin [462A.40] RESIDENTIAL RENTAL PROPERTY SALES; TENANT
NOTICE AND RIGHT OF FIRST REFUSAL.
new text end

new text begin Subdivision 1. new text end

new text begin Notice of sale. new text end

new text begin The owner of a residential rental property with ten or
more residential units must provide written notice to the commissioner of the Housing
Finance Agency and the tenants 150 days prior to the date of entering a purchase agreement
for the sale of the property. The written notice must notify the commissioner of the Housing
Finance Agency and the tenants of the intent of the owner to list and sell the property. The
notice must state that at least 120 days prior to signing the purchase agreement the property
owner will provide information on the cash price and the terms and conditions of the
purchaser's offer to the commissioner of the Housing Finance Agency and the tenants
requesting the information.
new text end

new text begin Subd. 2. new text end

new text begin Right of first refusal. new text end

new text begin During the notice period required in this section, the
tenants of a majority of the units or a nonprofit organization, which has the written permission
of the tenants of a majority of the units to represent them in the acquisition of the property,
shall have the right to meet the cash price and execute an agreement to purchase the property
for the purposes of keeping the property as residential rental property that includes affordable
units. The owner of a residential rental property must accept the offer if it meets the cash
price and the same terms and conditions set forth in the purchaser's offer, except that the
seller is not obligated to provide owner financing. For purposes of this section, "cash price"
means the cash price offer or equivalent cash offer as defined in section 500.245, subdivision
1, paragraph (d).
new text end

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin The requirements in this section do not apply to sales between
family members, sales between the current property owners of the residential rental property,
or sales that occur during the distribution of an estate after the owner's death.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to sales of residential rental property that
occur on or after September 1, 2018.
new text end