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HF 829

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2013 02:56pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to housing; landlord and tenant; changing motion requirements related
to eviction expungements; changing penalty and filing requirements for
wrongful entry by a landlord; changing notice requirements after conveyance
of real property; creating new emergency tenant remedies actions; repealing
requirements for section 8 eviction actions in foreclosed residential properties;
amending Minnesota Statutes 2012, sections 484.014, by adding a subdivision;
504B.161, by adding a subdivision; 504B.177; 504B.181, subdivision 1, by
adding a subdivision; 504B.211, subdivisions 2, 6; 504B.215, subdivision 1;
504B.285, subdivisions 1a, 1b; 504B.291, subdivision 1; 504B.371, subdivision
2; 504B.381, subdivision 1; 504B.385, subdivisions 1, 5; repealing Minnesota
Statutes 2012, section 504B.285, subdivision 1c.

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

Section 1.

Minnesota Statutes 2012, section 484.014, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Hearing on motion. new text end

new text begin The defendant may make a motion for an
expungement while the eviction case is pending. The court shall rule on the request at
the hearing on the eviction following the ruling on the eviction, unless there is good
cause to hear it at a later time. A motion to expunge under this subdivision is available
exclusively for the eviction case that is pending.
new text end

Sec. 2.

Minnesota Statutes 2012, section 504B.161, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Payment of rent into court. new text end

new text begin A tenant or licensee is not required to pay
rent into court in an eviction action under section 504B.285 or 504B.291 where the
tenant or licensee:
new text end

new text begin (1) claims the landlord or licensor violated this section; and
new text end

new text begin (2) provides prima facie evidence of a defense to the action that, if proven at trial,
would result in dismissal of the action or judgment in favor of the tenant or licensee.
new text end

Sec. 3.

Minnesota Statutes 2012, 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. deleted text beginFor 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.
deleted text end

new text begin (b) For the purpose of this section, where a residential lease provides for a discount
if rent is paid earlier than the date rent is otherwise due, the discounted rent amount shall
be deemed to be the rent and the difference between the discounted rent and the rent
without the discount shall be deemed to be a late fee.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end 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.

Sec. 4.

Minnesota Statutes 2012, section 504B.181, subdivision 1, is amended to read:


Subdivision 1.

Disclosure to tenant.

There shall be disclosed to the residential
tenant either in the rental agreement or otherwise in writing prior to commencement
of the tenancy deleted text beginthe name and address ofdeleted text end:

new text begin (1) the name of the landlord;
new text end

deleted text begin (1)deleted text endnew text begin (2)new text end thenew text begin name and street address of thenew text end person authorized to manage the premises;
and

deleted text begin (2)deleted text endnew text begin (3)new text end thenew text begin street address of thenew text end landlord of the premises ornew text begin the name and street
address of
new text end an agent authorized by the landlord to accept service of process and receive
and give receipt for notices and demands.

Sec. 5.

Minnesota Statutes 2012, section 504B.181, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Responsibilities and rights following conveyance of rental property.
new text end

new text begin (a) Within a reasonable time after a conveyance, the successor in interest who obtains sole
or majority legal ownership interest in the property must provide to the tenant:
new text end

new text begin (1) written notice that ownership has been conveyed;
new text end

new text begin (2) the name and street address of the party to whom sole or majority ownership
interest has been conveyed;
new text end

new text begin (3) written notice of any changes regarding where or to whom rent payments are to
be made and when any changes are effective; and
new text end

new text begin (4) any updates of the disclosures required under subdivision 1.
new text end

new text begin (b) Within 120 days of a transfer in interest or 90 days of receipt of the notice
required under paragraph (a), whichever comes later, a tenant may deposit the amount of
rent due under the terms of the lease with the court administrator to be held in escrow, as
provided under section 504B.385, subdivision 1, paragraph (e), if:
new text end

new text begin (1) two or more adverse parties claim the right to demand and demand rent from a
tenant; or
new text end

new text begin (2) a party demands rent and the tenant reasonably believes that party is not legally
entitled to rent from the tenant and the tenant presents evidence that rent is legally due
to a different party.
new text end

new text begin There shall be a presumption that rent is current and paid in full and the tenant is relieved
of liability for that rent payment if the tenant can show substantial evidence that full
payment of rent to the predecessor in interest was made prior to receiving the notice
required under paragraph (a).
new text end

Sec. 6.

Minnesota Statutes 2012, section 504B.211, subdivision 2, is amended to read:


Subd. 2.

Entry by landlord.

Except as provided in subdivision 5, a landlord may
enter the premises rented by a residential tenant only for a reasonable business purpose and
after deleted text beginmaking a good faith effort to givedeleted text endnew text begin givingnew text end the residential tenant deleted text beginreasonabledeleted text endnew text begin 24-hour
advance
new text end notice deleted text beginunder the circumstancesdeleted text end of the intent to enter.new text begin The landlord's notice must
also provide the earliest and latest time, within no greater than a five-hour period, that the
landlord intends to enter.
new text end A residential tenant may not waive and the landlord may not
require the residential tenant to waive the residential tenant's right to prior notice of entry
under this section as a condition of entering into or maintaining the lease.

Sec. 7.

Minnesota Statutes 2012, section 504B.211, subdivision 6, is amended to read:


Subd. 6.

Penalty.

If a landlord substantially violates subdivision 2, the residential
tenant is entitled to a penalty which may include a rent reduction up to full rescission
of the lease, recovery of any damage deposit less any amount retained under section
504B.178, and up to a deleted text begin$100deleted text endnew text begin $500new text end civil penalty for each violation. If a landlord violates
subdivision 5, the residential tenant is entitled to up to a deleted text begin$100deleted text endnew text begin $500new text end civil penalty for each
violation.new text begin To enforce the provisions of this section,new text end a residential tenant deleted text beginshalldeleted text endnew text begin may either
new text end follow the procedures in sections 504B.381, 504B.385, and 504B.395 to 504B.471 deleted text beginto
enforce the provisions of this section
deleted text endnew text begin or, following the termination of the tenancy, take an
action in district or conciliation court for relief that shall be limited to all relief available
under this subdivision except for rescission of the lease. The tenant does not have to give
the notice required under sections 504B.385, subdivision 1, paragraph (c), and 504B.395,
subdivision 4, in order to seek relief under this section
new text end.

Sec. 8.

Minnesota Statutes 2012, section 504B.215, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purposes of this section, "single-metered
residential building" means deleted text begina multiunit rental building with one or more separate
residential living units where the utility service measured through
deleted text endnew text begin any structure in which
tenants reside containing
new text end a single meter deleted text beginprovides service to an individual unit and to all or
parts of common areas or other units
deleted text endnew text begin which measures utility service to a tenant's dwelling
unit and any area outside the tenant's dwelling unit
new text end.

Sec. 9.

Minnesota Statutes 2012, section 504B.285, subdivision 1a, is amended to read:


Subd. 1a.

Grounds when the person holding over is a tenant in a foreclosed
residential property.

(a) deleted text beginFor any eviction action commenced on or before December 31,
2014,
deleted text end With respect to residential real property or a dwelling where the person holding the
residential real property or dwelling 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) deleted text beginFor any eviction action commenced on or before December 31, 2014,deleted text end With
respect to residential real property or a dwelling 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) deleted text beginFor any eviction action commenced on or before December 31, 2014,deleted text end With respect
to residential real property or a dwelling involving 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.

Sec. 10.

Minnesota Statutes 2012, section 504B.285, subdivision 1b, is amended to read:


Subd. 1b.

Grounds when the person holding over is a tenant in a property
subject to a contract for deed.

deleted text beginFor any eviction action commenced on or before
December 31, 2014,
deleted text end The person entitled to the premises may recover possession by
eviction when any person holds over real property after termination of contract to convey
the property, provided that if the person holding the real property after the expiration of
the time for termination was a tenant during the termination period under a lease of any
duration and the lease began after the date the contract for deed was executed but prior to
the expiration of the time for termination, and the person has received:

(1) at least two months' written notice to vacate no sooner than one month after the
expiration of the time for termination, provided that the tenant pays the rent and abides by
all terms of the lease; or

(2) at least two months' written notice to vacate no later than the date of the expiration
of the time for termination, which notice shall also state that the sender will hold the tenant
harmless for breaching the lease by vacating the premises if the contract is reinstated.

Sec. 11.

Minnesota Statutes 2012, section 504B.291, subdivision 1, is amended to read:


Subdivision 1.

Action to recover.

(a) A landlord may bring an eviction action for
nonpayment of rent irrespective of whether the lease contains a right of reentry clause.
Such an eviction action is equivalent to a demand for the rent. There is a rebuttable
presumption that the rent has been paid if the tenant produces a copy or copies of one or
more money orders or produces one or more original receipt stubs evidencing the purchase
of a money order, if the documents: (i) total the amount of the rent; (ii) include a date
or dates approximately corresponding with the date rent was due; and (iii) in the case of
copies of money orders, are made payable to the landlord. This presumption is rebutted if
the landlord produces a business record that shows that the tenant has not paid the rent. The
landlord is not precluded from introducing other evidence that rebuts this presumption.

new text begin (b) new text endIn deleted text beginsuchdeleted text end an actionnew text begin brought under this sectionnew text end, unless the landlord has also sought
to evict the tenant by alleging a material violation of the lease under section 504B.285,
subdivision 5
, the tenant may, at any time before possession has been delivered, redeem
the tenancy and be restored to possession by paying to the landlord or bringing to court the
amount of the rent that is in arrears, with interest, costs of the action, and an attorney's fee
not to exceed $5, and by performing any other covenants of the lease.new text begin If the tenant shows
by a preponderance of the evidence that the landlord has violated section 504B.211, the
court must reduce the amount of rent the tenant is required to pay to redeem the tenancy
by up to $500 per violation.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end If the tenant has paid to the landlord or brought into court the amount of rent
in arrears but is unable to pay the interest, costs of the action, and attorney's fees required
by paragraph (a), the court may permit the tenant to pay these amounts into court and be
restored to possession within the same period of time, if any, for which the court stays the
issuance of the order to vacate under section 504B.345.

deleted text begin (c)deleted text endnew text begin (d)new text end Prior to or after commencement of an action to recover possession for
nonpayment of rent, the parties may agree only in writing that partial payment of rent in
arrears which is accepted by the landlord prior to issuance of the order granting restitution of
the premises pursuant to section 504B.345 may be applied to the balance due and does not
waive the landlord's action to recover possession of the premises for nonpayment of rent.

deleted text begin (d)deleted text endnew text begin (e)new text end Rental payments under this subdivision must first be applied to rent claimed
as due in the complaint from prior rental periods before applying any payment toward rent
claimed in the complaint for the current rental period, unless the court finds that under the
circumstances the claim for rent from prior rental periods has been waived.

Sec. 12.

Minnesota Statutes 2012, section 504B.371, subdivision 2, is amended to read:


Subd. 2.

Time for appeal.

A party who feels aggrieved by the judgment may appeal
within deleted text begintendeleted text endnew text begin 15new text end days as provided for civil actions in district court.

Sec. 13.

Minnesota Statutes 2012, section 504B.381, subdivision 1, is amended to read:


Subdivision 1.

Petition.

A person authorized to bring an action under section
504B.395, subdivision 1, may petition the court for relief in cases of emergency involvingnew text begin:
new text end

new text begin (1)new text end the loss of running water, hot water, heat, electricity, sanitary facilities, or other
essential services or facilities that the landlord is responsible for providingdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) an order by a unit of government:
new text end

new text begin (i) declaring a residential building occupied by a residential tenant unfit for human
habitation or expressing the intent to condemn the residential building;
new text end

new text begin (ii) directing a residential tenant to vacate a residential building within 60 or fewer
days due to the landlord's violation of a local code regulating residential buildings,
including the failure to obtain a rental dwelling license or certificate of occupancy; or
new text end

new text begin (iii) condemning the residential rental property occupied by a residential tenant.
new text end

Sec. 14.

Minnesota Statutes 2012, section 504B.385, subdivision 1, is amended to read:


Subdivision 1.

Escrow of rent.

(a) If a violation exists in a residential building,
a residential tenant may deposit the amount of rent due to the landlord with the court
administrator using the procedures described in paragraphs (b) to (d).

(b) For a violation as defined in section 504B.001, subdivision 14, clause (1), the
residential tenant may deposit with the court administrator the rent due to the landlord along
with a copy of the written notice of the code violation as provided in section 504B.185,
subdivision 2
. The residential tenant may not deposit the rent or file the written notice of
the code violation until the time granted to make repairs has expired without satisfactory
repairs being made, unless the residential tenant alleges that the time granted is excessive.

(c) For a violation as defined in section 504B.001, subdivision 14, clause (2) or (3),
the residential tenant must give written notice to the landlord specifying the violation. The
notice must be delivered personally or sent to the person or place where rent is normally
paid. If the violation is not corrected within 14 days, the residential tenant may deposit the
amount of rent due to the landlord with the court administrator along with an affidavit
specifying the violation. The court must provide a simplified form affidavit for use under
this paragraph.

(d) The residential tenant need not deposit rent if none is due to the landlord at the
time the residential tenant files the notice required by paragraph (b) or (c). All rent which
becomes due to the landlord after that time but before the hearing under subdivision 6
must be deposited with the court administrator. As long as proceedings are pending under
this section, the residential tenant must pay rent to the landlord or as directed by the court
and may not withhold rent to remedy a violation.

new text begin (e) A residential tenant exercising rights conferred under section 504B.181,
subdivision 1a, paragraph (b), may deposit the disputed rent amount with the court
administrator to be held in escrow. The court administrator shall release the rent to the
landlord entitled to it:
new text end

new text begin (1) upon order by the court; or
new text end

new text begin (2) upon production of a signed release by the tenant.
new text end

Sec. 15.

Minnesota Statutes 2012, section 504B.385, subdivision 5, is amended to read:


Subd. 5.

Notice of hearing.

(a) A hearing must be held within ten to 14 days
from the day a residential tenantnew text begin:
new text end

new text begin (1)new text end deposits rent with the court administratordeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) files the notice required under subdivision 1, paragraph (b) or (c), if the tenant is
not required to deposit rent with the court administrator under subdivision 1, paragraph (d).
new text end

new text begin Nothing in this subdivision relieves the tenant of the obligation to deposit rent with the
court administrator that becomes due to the landlord after the filing but before the hearing.
new text end

(b) If the cost of remedying the violation, as estimated by the residential tenant, is
within the jurisdictional limit for conciliation court, the court administrator shall notify the
landlord and the residential tenant of the time and place of the hearing by first class mail.

(c) The residential tenant must provide the court administrator with the landlord's
name and address. If the landlord has disclosed a post office box as the landlord's address
under section 504B.181, notice of the hearing may be mailed to the post office box.

(d) If the cost of remedying the violation, as estimated by the tenant, is above the
jurisdictional limit for conciliation court, the tenant must serve the notice of hearing
according to the Minnesota Rules of Civil Procedure.

(e) The notice of hearing must specify the amount the residential tenant has
deposited with the court administrator and must inform the landlord that possession of the
premises will not be in issue at the hearing unless the landlord files a counterclaim for
possession or an eviction action.

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 504B.285, subdivision 1c, new text end new text begin is repealed.
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