HF 4517

as introduced - 91st Legislature (2019 - 2020) Posted on 03/26/2020 11:55am

A bill for an act
relating to housing; limiting late fees on rent during a public health emergency;
limiting the filing of evictions during a public health emergency; creating the 2020
emergency housing assistance program; appropriating money for certain housing
programs; amending Minnesota Statutes 2018, sections 504B.177; 504B.291, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 504B.177, is amended to read:

504B.177 LATE FEES.

(a) A landlord of a residential building may not charge a late fee if the rent is paid after
the due date, unless the tenant and landlord have agreed in writing that a late fee may be
imposed. The agreement must specify when the late fee will be imposed. In no case may
the late fee exceed eight percent of the overdue rent payment. Any late fee charged or
collected is not considered to be either interest or liquidated damages. For purposes of this
paragraph, the "due date" does not include a date, earlier than the date contained in the
written or oral lease by which, if the rent is paid, the tenant earns a discount.

(b) Notwithstanding paragraph (a), if a federal statute, regulation, or handbook permitting
late fees for a tenancy subsidized under a federal program conflicts with paragraph (a), then
the landlord may publish and implement a late payment fee schedule that complies with the
federal statute, regulation, or handbook.

new text begin (c) The landlord of a residential unit may not charge a late fee for the first 60 days after
the declaration of a public health emergency. For the purposes of this section, "public health
emergency" has the meaning given in section 504B.291, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2018, section 504B.291, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Eviction actions; state of emergency. new text end

new text begin No action may be filed under this section
for 30 days after the declaration of a public health emergency if the residence is located in
the jurisdiction where the public health emergency has been called. Nothing in this section
reduces the rent owed by the tenant to the landlord, prevents the landlord from collecting
rent owed, reduces arrears owed by a tenant for rent, or alters the terms of the lease between
the landlord and tenant. The governor has the power to extend this prohibition on the filing
of evictions for up to 60 days in the event the public health emergency persists and threatens
the health and safety of the citizens of the state. For the purposes of this section, "public
health emergency" means an emergency need for health care and medical services to respond
to a disaster, significant outbreak of an infectious disease, bioterrorist attack, or other
significant or catastrophic health-related event that is declared a state of emergency by the
President of the United States, the governor, or a local government official with the authority
under law to declare a state of emergency.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin 2020 EMERGENCY HOUSING ASSISTANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The commissioner of the Housing Finance Agency
shall establish the 2020 emergency housing assistance program to provide funding to
individuals, families, and homeowners to prevent homelessness and help maintain
homeownership. The commissioner may contract with county agencies or nonprofit
organizations to provide funding, advocacy, and support services to process applications
for funding under this program.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible for funding under the 2020 emergency housing
assistance program, applicants must:
new text end

new text begin (1) have a public-health-related emergency that requires immediate financial assistance;
new text end

new text begin (2) have a rent or a mortgage payment that cannot be paid through the income or assets
of the individual or family;
new text end

new text begin (3) not have the ability to pay rent owed or a mortgage due because of the public health
emergency;
new text end

new text begin (4) be an individual or family with a current net income under 200 percent of the federal
poverty guidelines at the time of application;
new text end

new text begin (5) not be receiving state or federal assistance that could be used to pay rent or the
mortgage on a home; and
new text end

new text begin (6) have lived in Minnesota for at least 30 days.
new text end

new text begin (b) If an applicant applies for relief from sources other than the 2020 emergency housing
assistance program and receives aid for the purposes of paying for housing, the applicant
must immediately notify the granting agency. Applicants may receive funding for rent or
a mortgage payment that is due within seven days of the application or that is up to 60 days
past due at the time of application.
new text end

new text begin (c) The financial assistance provided to an individual or family must not exceed the
minimum rent due or mortgage owed for a period of 90 days. Funding under this section
must be paid directly to the landlord or leasing agent for a rental unit, or to the financial
servicer for a mortgage, or the entity that owns the mortgage for a homeowner.
new text end

new text begin (d) Individuals and families who are eligible for emergency assistance may receive
grants under this section without meeting the eligibility requirements in paragraph (a) if
they are currently eligible for emergency assistance but have used emergency assistance in
the past 12 months, or when emergency assistance funding is no longer available.
new text end

new text begin (e) The commissioner shall develop applications for the program and ensure applicants
are eligible for programs.
new text end

new text begin (f) For the purposes of this section, "public-health-related emergency" means a serious
illness or disability that prevents the individual from maintaining employment temporarily
or permanently and that substantially reduces the individual's income, or a substantial
reduction in income or temporary or permanent unemployment due to the declaration of a
state of emergency by the President of the United States, the governor, or a local unit of
government.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin APPROPRIATION; 2020 EMERGENCY HOUSING ASSISTANCE
PROGRAM.
new text end

new text begin $....... in fiscal year 2020 is appropriated from the general fund to the commissioner of
the Housing Finance Agency to administer the 2020 emergency housing assistance program.
Funding under this section is onetime and available until September 30, 2020.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin APPROPRIATION; FAMILY HOMELESS PREVENTION AND
ASSISTANCE PROGRAM.
new text end

new text begin $....... in fiscal year 2020 is appropriated from the general fund to the commissioner of
the Housing Finance Agency for the family homeless prevention and assistance program
under Minnesota Statutes, section 462A.204. Funds appropriated under this section are
available until June 30, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin APPROPRIATION; COUNTY EMERGENCY ASSISTANCE GRANTS.
new text end

new text begin $....... in fiscal year 2020 is appropriated from the general fund to the commissioner of
human services for emergency assistance grants under section 256D.06, subdivision 2.
Funds appropriated under this section are available until June 30, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

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