HF 1443

as introduced - 87th Legislature (2011 - 2012) Posted on 04/11/2011 10:07am

A bill for an act
relating to real property; landlord and tenant; clarifying definition of a residential
tenant; amending Minnesota Statutes 2010, section 504B.285, subdivision 1a.

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

Section 1.

Minnesota Statutes 2010, section 504B.285, subdivision 1a, is amended to
read:

Subd. 1a.

Grounds when the deleted text begin person deleted text end new text begin residential tenant new text end holding over is a tenant
in a foreclosed new text begin residential building new text end property.

(a) For any eviction action commenced on
or before December 31, 2012, where the deleted text begin person deleted text end new text begin tenant new text end holding the real property after the
expiration of the time for redemption on foreclosure of a mortgage was a tenant during
the redemption period under a lease of any duration, and the lease began after the date
the mortgage was executed, but prior to the expiration of the time for redemption, the
immediate successor in interest must provide at least 90 days' written notice to vacate,
given no sooner than the date of the expiration of the time for redemption, and effective no
sooner than 90 days after the date of the expiration of the time for redemption, provided
that the tenant pays the rent and abides by all terms of the lease.

(b) For any eviction action commenced on or before December 31, 2012, where the
term of a bona fide lease extends more than 90 days beyond the date of the expiration of the
time for redemption, the immediate successor in interest must allow the tenant to occupy
the premises until the end of the remaining term of the lease, and provide at least 90 days'
written notice to vacate, effective no sooner than the date the lease expires, provided that
the tenant pays the rent and abides by all terms of the lease, except if the immediate
successor in interest or an immediate subsequent bona fide purchaser will occupy the unit
as the primary residence, the immediate successor in interest must provide at least 90 days'
written notice to vacate, given no sooner than the date of the expiration of the time for
redemption, effective no sooner than 90 days after the date of the expiration of the time for
redemption, provided that the tenant pays the rent and abides by all terms of the lease.

For purposes of this section, a "bona fide lease" means:

(1) the mortgagor or the child, spouse, or parent of the mortgagor is not the tenant;

(2) the lease or tenancy was the result of an arm's-length transaction; and

(3) the lease or tenancy requires the receipt of rent that is not substantially less than
fair market rent for the property or the unit's rent is reduced or subsidized by a federal,
state, or local subsidy.

(c) For any eviction action commenced on or before December 31, 2012, in the case
of a tenancy subject to section 8 of the United States Housing Act of 1937, as amended,
where the term of the lease extends more than 90 days beyond the date of the expiration
of the time for redemption, the immediate successor in interest must allow the tenant to
occupy the premises until the end of the remaining term of the lease and provide at least
90 days' written notice to vacate, effective no sooner than the date the lease expires,
provided that the tenant pays the rent and abides by all terms of the lease, except if
the immediate successor in interest will occupy the unit as the primary residence, the
immediate successor in interest must provide at least 90 days' written notice to vacate,
given no sooner than the date of the expiration of the time for redemption, effective no
sooner than 90 days after the date of the expiration of the time for redemption, provided
that the tenant pays the rent and abides by all terms of the lease.