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HF 1347

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

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

Bill Text Versions

Engrossments
Introduction Posted on 03/01/2001

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to housing; modifying provisions relating to 
  1.3             tenant impact statements; providing civil penalties; 
  1.4             amending Minnesota Statutes 2000, section 471.9997. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 471.9997, is 
  1.7   amended to read: 
  1.8      471.9997 [FEDERALLY ASSISTED RENTAL HOUSING; IMPACT 
  1.9   STATEMENT NOTICE.] 
  1.10     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  1.11  section, "federally assisted rental housing" means any 
  1.12  multifamily housing that is insured, financed, assisted, or held 
  1.13  by the Secretary of Housing and Urban Development or the 
  1.14  Secretary of Agriculture under: 
  1.15     (1) section 8 of the United States Housing Act of 1937, as 
  1.16  amended, United States Code, title 42, section 1437(f); 
  1.17     (2) section 101 of the Housing and Urban Development Act of 
  1.18  1965, as amended, United States Code, title 12, section 1701(s); 
  1.19     (3) the following sections of the National Housing Act: 
  1.20     (i) section 202, United States Code, title 12, section 
  1.21  1701(q); 
  1.22     (ii) section 221(d)(3) and (4), United States Code, title 
  1.23  12, section 1715(d)(3) and (4); and 
  1.24     (iii) section 236, United States Code, title 12, section 
  1.25  1715(z-1); and 
  2.1      (4) the following sections of the Housing Act of 1949, as 
  2.2   amended: 
  2.3      (i) section 514, United States Code, title 42, section 
  2.4   1484; 
  2.5      (ii) section 515, United States Code, title 42, section 
  2.6   1485; and 
  2.7      (iii) section 536, United States Code, title 42, section 
  2.8   1486. 
  2.9      Subd. 2.  [NOTICE REQUIRED.] At least 12 months before 
  2.10  termination of participation in a federally assisted rental 
  2.11  housing program, including project-based section 8 and section 
  2.12  236 rental housing, the owner of the federally assisted rental 
  2.13  housing must submit a statement shall serve a written notice 
  2.14  regarding the impact of termination on the residents of the 
  2.15  rental housing to each tenant household residing in the housing 
  2.16  and on the governing body of the local government unit in which 
  2.17  the housing is located and on any public housing agency that 
  2.18  would be responsible for administering tenant-based rental 
  2.19  assistance to persons who would otherwise be displaced from this 
  2.20  housing.  The impact statement must identify the number of units 
  2.21  that will no longer be subject to rent restrictions imposed by 
  2.22  the federal program, the estimated rents that will be charged as 
  2.23  compared to rents charged under the federal program, and actions 
  2.24  the owner will take to assist displaced tenants in obtaining 
  2.25  other housing.  A copy of the impact statement notice must be 
  2.26  provided to each resident of the affected building, the 
  2.27  Minnesota housing finance agency, and, if the property is 
  2.28  located in the metropolitan area as defined in section 473.121, 
  2.29  subdivision 2, the metropolitan council. 
  2.30     Subd. 3.  [CONTENT OF NOTICE.] The notice required by 
  2.31  subdivision 2 must state the following: 
  2.32     (1) the name, location, and project number of the federally 
  2.33  assisted housing and the type of assistance received from the 
  2.34  federal government; 
  2.35     (2) the number and size of units; 
  2.36     (3) the age, race, family size, number on public 
  3.1   assistance, number with disabilities, and estimated incomes of 
  3.2   the tenants who will be affected by the prepayment of the loan 
  3.3   or mortgage or expiration of the rental assistance contract; 
  3.4      (4) the current rents and projected rent increases for each 
  3.5   affected unit after the prepayment of the mortgage or loan or 
  3.6   expiration of the rental assistance contract, without disclosing 
  3.7   the identities of the affected tenants; 
  3.8      (5) the availability and type, if any, of rental assistance 
  3.9   after the prepayment of the mortgage or loan or expiration of 
  3.10  the rental assistance contract; 
  3.11     (6) the age, race, family size, number on public 
  3.12  assistance, number with disabilities, and estimated incomes of 
  3.13  any applicants on the project's waiting list, without disclosing 
  3.14  the identities of the applicants; 
  3.15     (7) whether the owner intends to prepay the mortgage or 
  3.16  loan or allow the rental assistance contract to expire in order 
  3.17  to operate the housing without any low-income use restrictions, 
  3.18  plans on renewing the rental assistance contract subject to the 
  3.19  availability of adequate appropriations, or is seeking 
  3.20  additional financial incentives or higher rents as a condition 
  3.21  of remaining in the federal program; 
  3.22     (8) the reason the owner plans on taking this action; 
  3.23     (9) the owner's plans for the project, including any 
  3.24  timetables or deadlines for actions to be taken by the owner and 
  3.25  specific federal, state, or local agency approvals that the 
  3.26  owner is required to obtain; 
  3.27     (10) the anticipated date of the prepayment of the mortgage 
  3.28  or loan or expiration of the rental assistance contract; 
  3.29     (11) the effect, if any, that prepayment of the mortgage or 
  3.30  loan or expiration of the rental assistance contract will have 
  3.31  upon the tenants' rent and on the continued occupancy by 
  3.32  existing assisted households over a period of three years 
  3.33  following the proposed action and any effect on other terms of 
  3.34  their rental agreements.  
  3.35     Subd. 4.  [POSTING OF NOTICE.] All owners of federally 
  3.36  assisted housing affected by this section shall immediately post 
  4.1   a copy of any notices they send the tenant households residing 
  4.2   in the housing, except for the information cited in subdivision 
  4.3   3, clauses (3) and (6), in a conspicuous place at the 
  4.4   development where they are likely to be seen by current and 
  4.5   prospective tenants.  The notices shall be maintained intact and 
  4.6   in legible form for 12 months from the date they are posted.  
  4.7      Subd. 5.  [OWNERS TO PROVIDE INFORMATION UPON REQUEST OF 
  4.8   PUBLIC AGENCY.] All owners of federally assisted housing 
  4.9   affected by this section shall, upon request of any state or 
  4.10  local agency, provide the agency with a copy of any rent 
  4.11  comparability study, market analysis, or projected budget that 
  4.12  they submit to the United States Department of Housing and Urban 
  4.13  Development or other federal agency in conjunction with the 
  4.14  prepayment of their mortgage or loan or in anticipation of the 
  4.15  expiration of their rental assistance contract, together with 
  4.16  any physical inspection reports or capital needs assessments 
  4.17  completed by the owner, federal agency, or the Minnesota housing 
  4.18  finance agency within the last three years.  
  4.19     Subd. 6.  [DAMAGES FOR VIOLATION.] Any party who is 
  4.20  entitled to receive notice under this section may bring a civil 
  4.21  action to enjoin or recover actual damages for any violation of 
  4.22  this section, together with the costs of the suit including 
  4.23  reasonable attorneys' fees.  Any tenant who is entitled to 
  4.24  receive notice under this section shall also recover statutory 
  4.25  damages of not less than $500, nor greater than $2,500. 
  4.26     Subd. 7.  [CIVIL PENALTY FOR VIOLATION.] If a determination 
  4.27  is made that an owner failed to comply with the requirements of 
  4.28  this section within 30 days after service of a written demand to 
  4.29  do so by any party entitled to receive notice under this 
  4.30  section, the court shall in addition to any other remedy, impose 
  4.31  a civil penalty against the owner of $1,000 per month for each 
  4.32  housing unit in the federally assisted housing development 
  4.33  subject to this section, for each month or part of a month that 
  4.34  the owner fails to comply with these requirements.  However, 
  4.35  this penalty shall not exceed $12,000 per unit.  Any civil 
  4.36  penalties collected under this section shall be deposited in the 
  5.1   housing trust fund under section 462A.201.