HF 3961

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/19/2024 02:11pm

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.

new text begin [504B.153] NEW CONSTRUCTION DELAYS; TENANT REMEDIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition; new construction. new text end

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

new text begin Subd. 2. new text end

new text begin Remedies. new text end

new text begin (a) If a new construction for rental occupancy is not available for
occupancy on the move-in date established in the lease agreement, the tenant may select
one of the three following remedies:
new text end

new text begin (1) alternative housing provided by the landlord that is reasonably equivalent to the unit
described in the lease agreement until the unit may be lawfully inhabited;
new text end

new text begin (2) reimbursement by cash or check from the landlord of the total rent paid by the tenant
each month, as 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
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (d) A violation of this section by a landlord is a violation of sections 504B.161 and
504B.375. The remedies available under this section are in addition to any other remedies
available at equity or law.
new text end

new text begin Subd. 3. new text end

new text begin Construction. new text end

new text begin This section shall be liberally construed for the protection of
tenants.
new text end

new text begin Subd. 4. new text end

new text begin Waiver. new text end

new text begin 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.
new text end

new text begin EFFECTIVE DATE. new text end

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