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HF 829

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/29/2013 03:38pm

KEY: stricken = removed, old language. underscored = added, new language.

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1.1A bill for an act
1.2relating to housing; landlord and tenant; imposing civil penalty for certain
1.3violations; amending certain provisions relating to tenants holding over;
1.4modifying certain time for appeal and notice of hearing; making technical,
1.5clarifying, and conforming changes;amending Minnesota Statutes 2012,
1.6sections 504B.151, subdivision 1; 504B.285, subdivisions 1a, 1b; 504B.371,
1.7subdivision 2; 504B.385, subdivision 5; repealing Minnesota Statutes 2012,
1.8section 504B.285, subdivision 1c.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10    Section 1. Minnesota Statutes 2012, section 504B.151, subdivision 1, is amended to
1.11read:
1.12    Subdivision 1. Limitation on lease and notice to tenant. (a) Once a landlord has
1.13received notice of a contract for deed cancellation under section 559.21 or notice of a
1.14mortgage foreclosure sale under chapter 580 or 582, or summons and complaint under
1.15chapter 581, the landlord may only enter into (i) a periodic residential lease agreement
1.16with a term of not more than two months or the time remaining in the contract cancellation
1.17period or the mortgagor's redemption period, whichever is less or (ii) a fixed term
1.18residential tenancy not extending beyond the cancellation period or the landlord's period
1.19of redemption until:
1.20(1) the contract for deed has been reinstated or paid in full;
1.21(2) the mortgage default has been cured and the mortgage reinstated;
1.22(3) the mortgage has been satisfied;
1.23(4) the property has been redeemed from a foreclosure sale; or
1.24(5) a receiver has been appointed.
1.25(b) Before entering into a lease under this section and accepting any rent or security
1.26deposit from a tenant, the landlord must notify the prospective tenant in writing that the
2.1landlord has received notice of a contract for deed cancellation or notice of a mortgage
2.2foreclosure sale as appropriate, and the date on which the contract cancellation period or
2.3the mortgagor's redemption period ends.
2.4(c) This section does not apply to a manufactured home park as defined in section
2.5327C.01, subdivision 5 .
2.6(d) A landlord who violates the requirements in this subdivision is liable to the lessee
2.7for a civil penalty of $500, unless the landlord falls under the exception in subdivision 2.
2.8The remedy provided under this paragraph is in addition to and shall not limit other rights
2.9or remedies available to landlords and tenants.

2.10    Sec. 2. Minnesota Statutes 2012, section 504B.285, subdivision 1a, is amended to read:
2.11    Subd. 1a. Grounds when the person holding over is a tenant in a foreclosed
2.12residential property. (a) For any eviction action commenced on or before December 31,
2.132014, With respect to residential real property or a dwelling where the person holding the
2.14residential real property or dwelling after the expiration of the time for redemption on
2.15foreclosure of a mortgage was a tenant during the redemption period under a lease of any
2.16duration, and the lease began after the date the mortgage was executed, but prior to the
2.17expiration of the time for redemption, the immediate successor in interest must provide
2.18at least 90 days' written notice to vacate, given no sooner than the date of the expiration
2.19of the time for redemption, and effective no sooner than 90 days after the date of the
2.20expiration of the time for redemption, provided that the tenant pays the rent and abides
2.21by all terms of the lease.
2.22(b) For any eviction action commenced on or before December 31, 2014, With
2.23respect to residential real property or a dwelling where the term of a bona fide lease
2.24extends more than 90 days beyond the date of the expiration of the time for redemption,
2.25the immediate successor in interest must allow the tenant to occupy the premises until
2.26the end of the remaining term of the lease, and provide at least 90 days' written notice to
2.27vacate, effective no sooner than the date the lease expires, provided that the tenant pays the
2.28rent and abides by all terms of the lease, except if the immediate successor in interest or an
2.29immediate subsequent bona fide purchaser will occupy the unit as the primary residence,
2.30the immediate successor in interest must provide at least 90 days' written notice to vacate,
2.31given no sooner than the date of the expiration of the time for redemption, effective no
2.32sooner than 90 days after the date of the expiration of the time for redemption, provided
2.33that the tenant pays the rent and abides by all terms of the lease.
2.34For purposes of this section, a "bona fide lease" means:
2.35(1) the mortgagor or the child, spouse, or parent of the mortgagor is not the tenant;
3.1(2) the lease or tenancy was the result of an arm's-length transaction; and
3.2(3) the lease or tenancy requires the receipt of rent that is not substantially less than
3.3fair market rent for the property or the unit's rent is reduced or subsidized by a federal,
3.4state, or local subsidy.
3.5(c) For any eviction action commenced on or before December 31, 2014, With respect
3.6to residential real property or a dwelling involving a tenancy subject to section 8 of the
3.7United States Housing Act of 1937, as amended, where the term of the lease extends more
3.8than 90 days beyond the date of the expiration of the time for redemption, the immediate
3.9successor in interest must allow the tenant to occupy the premises until the end of the
3.10remaining term of the lease and provide at least 90 days' written notice to vacate, effective
3.11no sooner than the date the lease expires, provided that the tenant pays the rent and abides
3.12by all terms of the lease, except if the immediate successor in interest will occupy the unit
3.13as the primary residence, the immediate successor in interest must provide at least 90 days'
3.14written notice to vacate, given no sooner than the date of the expiration of the time for
3.15redemption, effective no sooner than 90 days after the date of the expiration of the time for
3.16redemption, provided that the tenant pays the rent and abides by all terms of the lease.

3.17    Sec. 3. Minnesota Statutes 2012, section 504B.285, subdivision 1b, is amended to read:
3.18    Subd. 1b. Grounds when the person holding over is a tenant in a property
3.19subject to a contract for deed. For any eviction action commenced on or before
3.20December 31, 2014, The person entitled to the premises may recover possession by
3.21eviction when any person holds over real property after termination of contract to convey
3.22the property, provided that if the person holding the real property after the expiration of
3.23the time for termination was a tenant during the termination period under a lease of any
3.24duration and the lease began after the date the contract for deed was executed but prior to
3.25the expiration of the time for termination, and the person has received:
3.26(1) at least two months' written notice to vacate no sooner than one month after the
3.27expiration of the time for termination, provided that the tenant pays the rent and abides by
3.28all terms of the lease; or
3.29(2) at least two months' written notice to vacate no later than the date of the expiration
3.30of the time for termination, which notice shall also state that the sender will hold the tenant
3.31harmless for breaching the lease by vacating the premises if the contract is reinstated.

3.32    Sec. 4. Minnesota Statutes 2012, section 504B.371, subdivision 2, is amended to read:
3.33    Subd. 2. Time for appeal. A party who feels aggrieved by the judgment may appeal
3.34within ten 15 days as provided for civil actions in district court.

4.1    Sec. 5. Minnesota Statutes 2012, section 504B.385, subdivision 5, is amended to read:
4.2    Subd. 5. Notice of hearing. (a) A hearing must be held within ten to 14 days
4.3from the day a residential tenant:
4.4(1) deposits rent with the court administrator.; or
4.5(2) files the notice required under subdivision 1, paragraph (b) or (c), if the tenant is
4.6not required to deposit rent with the court administrator under subdivision 1, paragraph (d).
4.7Nothing in this subdivision relieves the tenant of the obligation to deposit rent that becomes
4.8due to the landlord after the filing but before the hearing with the court administrator.
4.9(b) If the cost of remedying the violation, as estimated by the residential tenant, is
4.10within the jurisdictional limit for conciliation court, the court administrator shall notify the
4.11landlord and the residential tenant of the time and place of the hearing by first class mail.
4.12(c) The residential tenant must provide the court administrator with the landlord's
4.13name and address. If the landlord has disclosed a post office box as the landlord's address
4.14under section 504B.181, notice of the hearing may be mailed to the post office box.
4.15(d) If the cost of remedying the violation, as estimated by the tenant, is above the
4.16jurisdictional limit for conciliation court, the tenant must serve the notice of hearing
4.17according to the Minnesota Rules of Civil Procedure.
4.18(e) The notice of hearing must specify the amount the residential tenant has
4.19deposited with the court administrator and must inform the landlord that possession of the
4.20premises will not be in issue at the hearing unless the landlord files a counterclaim for
4.21possession or an eviction action.

4.22    Sec. 6. REPEALER.
4.23Minnesota Statutes 2012, section 504B.285, subdivision 1c, is repealed.
4.24EFFECTIVE DATE.This section is effective the day following final enactment.

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