HF 2929

as introduced - 90th Legislature (2017 - 2018) Posted on 02/26/2018 03:57pm

A bill for an act
relating to housing; allowing local government to implement rent stabilization
measures; prohibiting rent stabilization for some residential buildings; allowing
local ordinances for eviction actions to control over state law; proposing coding
for new law in Minnesota Statutes, chapters 471; 504B; repealing Minnesota
Statutes 2016, section 471.9996.

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

Section 1.

new text begin [471.9994] RENT STABILIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin In general. new text end

new text begin (a) A statutory or home rule charter city, county, or town
may adopt or renew an ordinance to stabilize rent on private residential property that had
initial tenant occupancy prior to January 1, 2008. The rent stabilization ordinance must
allow for annual increases to rent either:
new text end

new text begin (1) based on a set formula or standard annual increase provided in the ordinance; or
new text end

new text begin (2) based on actual costs to property owner including utility costs, necessary repair and
maintenance, or increased property taxes.
new text end

new text begin (b) A rent stabilization ordinance may include provisions for just cause evictions and
tenant repair remedies that are different than the eviction laws and tenant repair remedies
provided in chapter 504B.
new text end

new text begin (c) This section does not impair the right of any statutory or home rule charter city,
county, or town:
new text end

new text begin (1) to manage or control property in which it has a financial interest through a housing
authority or similar agency;
new text end

new text begin (2) to contract with a property owner;
new text end

new text begin (3) to act as required or authorized by laws or regulations of the United States government
or this state; or
new text end

new text begin (4) to mediate between property owners and tenants for the purpose of negotiating rents.
new text end

new text begin (d) For the purposes of this section, "private residential property" means residential
property that is not public and contains at least one rental unit.
new text end

new text begin Subd. 2. new text end

new text begin Exception. new text end

new text begin No statutory or home rule charter city, county, or town may adopt
or renew an ordinance to stabilize rent on private residential property that was constructed
after January 1, 2008, or which had initial residential tenant occupancy after January 1,
2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end

Sec. 2.

new text begin [504B.280] LOCAL CONTROLS; EVICTION ACTIONS.
new text end

new text begin If a local government has passed a rent stabilization ordinance under section 471.994
that includes eviction provisions or tenant repair remedies that differ from the provisions
in this chapter then those provisions apply and the local ordinance is controlling. The local
ordinance must specifically provide which state eviction laws apply, and if, and whether
any rental units are exempt from the local ordinance. In all other cases, evictions are governed
exclusively by this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 471.9996, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: HF2929-0

471.9996 RENT CONTROL PROHIBITED.

Subdivision 1.

In general.

No statutory or home rule charter city, county, or town may adopt or renew by ordinance or otherwise any law to control rents on private residential property except as provided in subdivision 2. This section does not impair the right of any statutory or home rule charter city, county, or town:

(1) to manage or control property in which it has a financial interest through a housing authority or similar agency;

(2) to contract with a property owner;

(3) to act as required or authorized by laws or regulations of the United States government or this state; or

(4) to mediate between property owners and tenants for the purpose of negotiating rents.

Subd. 2.

Exception.

Subdivision 1 does not preclude a statutory or home rule charter city, county, or town from controlling rents on private residential property to the extent that the city, county, or town has the power to adopt an ordinance, charter amendment, or law to control these rents if the ordinance, charter amendment, or law that controls rents is approved in a general election. Subdivision 1 does not limit any power or authority of the voters of a statutory or home rule charter city, county, or town to petition for an ordinance or charter amendment to control rents on private residential property to the extent that the power or authority is otherwise provided for by law, and if the ordinance or charter amendment is approved in a general election. This subdivision does not grant any additional power or authority to the citizens of a statutory or home rule charter city, county, or town to vote on any question beyond that contained in other law.

Subdivision 1

does not apply to any statutory city unless the citizens of the statutory city have the authority to vote on the issue of rent control granted by other law.