SF 491

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 09:40am

A bill for an act
relating to housing; amending certain eviction procedures during and after a public
health emergency; allowing for expungement of certain eviction actions filed
during and after a public health emergency; preventing home foreclosure during
and after a public health emergency; appropriating money for emergency housing
assistance grants during the peacetime emergency related to COVID-19.

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

Section 1. new text begin EVICTION NOTICE AND LATE FEES; STATE OF EMERGENCY.
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new text begin (a) Before bringing an eviction action upon the conclusion of the peacetime emergency
declared in Executive Order 20-01 and the termination of Executive Order 20-79 and the
termination of any similar federal eviction suspension impacting Minnesota, a landlord must
provide a 60-day written notice to the residential tenant specifying the basis for a future
eviction action. For 60 days after the end of the peacetime emergency, residential landlords
must not issue notices of termination of lease or nonrenewal of lease or terminate residential
leases during the pendency of the peacetime emergency. No late fees may be assessed by
the landlord during the 60-day notice period required in this section. This section does not
apply to the nonrenewal of a lease or an eviction based on the following circumstances:
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new text begin (1) the tenant seriously endangers the safety of other residents;
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new text begin (2) the tenant violates Minnesota Statutes, section 504B.171, subdivision 1;
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new text begin (3) the tenant remains in the property past the vacate date after receiving a notice to
vacate or nonrenewal; or
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new text begin (4) the tenant materially violates a residential lease by the following actions on the
premises, including the common area and the curtilage of the premises:
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new text begin (i) seriously endangers the safety of others; or
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new text begin (ii) significantly damages property.
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new text begin (b) For an allegation of nonpayment of rent or other unpaid financial obligations in
violation of the lease, the landlord must include the following in a written notice:
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new text begin (1) the total amount due;
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new text begin (2) a specific itemized accounting of the amount of the total due that is comprised of
unpaid rents or other charges under the lease, including any rent amounts expected to be
due during that 60-day period; and
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new text begin (3) the name and address of the person authorized to receive rent and fees on behalf of
the landlord.
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new text begin (c) A notice provided under this section must:
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new text begin (1) provide a statement that a residential tenant may be eligible for financial assistance
from the county, state, or federal government;
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new text begin (2) provide a description on how to access legal and financial assistance through the
"Law Help" website at www.lawhelpmn.org and "Minnesota 211" through its website at
www.211unitedway.org or by calling 211; and
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new text begin (3) state that the landlord may bring an eviction action following expiration of the 60-day
notice period if the residential tenant fails to pay the total amount due or fails to vacate.
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new text begin (d) The landlord or an agent of the landlord must deliver the notice personally or by first
class mail to the residential tenant at the address of the leased premises.
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new text begin (e) If the residential tenant fails to correct the rent delinquency or other unpaid financial
obligation in violation of the lease within 14 days of the delivery or fails to vacate, the
landlord may bring an eviction action based on the nonpayment of rent.
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new text begin (f) Receipt of a notice under this section is an emergency situation under Minnesota
Statutes, section 256D.06, subdivision 2, and Minnesota Rules, chapter 9500. For purposes
of Minnesota Statutes, chapter 256J, and Minnesota Rules, chapter 9500, a county agency
verifies an emergency situation by receiving and reviewing a notice under this section. A
verbal statement by the residential tenant to the county agency that the residential tenant
received such a notice shall presume the residential tenant's eligibility for assistance. If a
residential tenant applies for financial assistance from the county, state, or federal
government, the landlord must cooperate with the application process by:
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new text begin (1) supplying all information and documentation requested by the residential tenant or
the county; and
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new text begin (2) accepting or placing into escrow partial rent payments where necessary to establish
a residential tenant's eligibility for assistance.
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new text begin (g) If applicable, the person filing a complaint must attach a copy of the written notice
described in paragraph (a). The court shall dismiss an action without prejudice for failure
to provide a notice as described in paragraph (b) and grant an expungement of the eviction
case court file.
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new text begin (h) 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.
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new text begin (i) Upon a finding that the plaintiff has violated a provision of this section, the court
must dismiss and expunge the action and may not require the residential tenant as defined
in Minnesota Statutes, section 504B.001, subdivision 12, to pay any filing fee.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin FORECLOSURE; STATE OF EMERGENCY.
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new text begin Prior to the expiration of the public health emergency, and for 60 days after the expiration
of a public health emergency, no notice of a pendency for a foreclosure by advertisement
may be recorded and no action may commence under Minnesota Statutes, chapter 580 or
581, and no vendor may terminate a contract for deed except for an action necessary to
protect holders of bonds issued under Minnesota Statutes, chapter 462A. Nothing in this
section alters the payments owed; any other obligations under the mortgage, common interest
community bylaws, or contract for deed; or the pledge made by the state to holders of bonds
issued under Minnesota Statutes, chapter 462A. For purposes of this section, "public health
emergency" means the peacetime emergency declared by the governor on March 13, 2020,
in Executive Order 20-01 in response to COVID-19 or any other peacetime emergency
declared by the governor by an executive order that relates to the infectious disease known
as COVID-19.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to actions taken on or after that date.
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Sec. 3. new text begin APPROPRIATION; 2021 EMERGENCY HOUSING ASSISTANCE GRANTS.
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new text begin (a) $50,000,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of the Minnesota Housing Finance Agency for transfer to the housing
development fund for emergency housing assistance grants. Notwithstanding the requirements
of Minnesota Statutes, sections 16B.98 and 16C.06, and applicable policies, the agency
may use grantees of the COVID Housing Assistance Program that were funded with federal
CARES Act resources and those grantees are approved to distribute money under this
section. If necessary, the commissioner of the Minnesota Housing Finance Agency may
distribute money to other entities including counties, cities, nonprofit organizations, tribes,
or other entities the agency identifies to fulfill the purposes of this section.
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new text begin (b) Grants under this section shall be awarded to individuals, families, and homeowners
in Minnesota to prevent homelessness and help maintain homeownership during the
peacetime emergency declared by the governor in an executive order that relates to the
infectious disease known as COVID-19. To be eligible for funding, applicants must:
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new text begin (1) have a rent payment, mortgage payment, homeowner association dues, lot rent due
to a manufactured home park, contract for deed payment, homeowner insurance payment,
property tax payment, or utility payment, including internet services, with a due date of
March 1, 2020, or later, or have another expense that is needed to maintain housing as
determined by the agency;
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new text begin (2) be unable to pay as a direct or indirect result of the public health emergency; and
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new text begin (3) be a household with a current gross income at or below 200 percent of the federal
poverty guidelines.
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new text begin (c) The financial assistance provided for an individual or family must not exceed the
amount needed to maintain housing.
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new text begin (d) Grants under this section must be paid directly to:
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new text begin (1) the landlord or leasing agent for a rental unit;
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new text begin (2) the financial service for a mortgage or the entity who owns the mortgage for a
homeowner;
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new text begin (3) the contract for deed vendor or seller;
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new text begin (4) the purchase-money mortgagor;
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new text begin (5) the manufactured home park cooperative, manufactured home owner, or park owner;
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new text begin (6) the utility company or internet service provider; or
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new text begin (7) any other identified entity to whom payment is owed.
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new text begin (e) In addition to the grants to individuals and families provided under paragraph (b),
funding under this section may also be used to provide assistance to housing providers who
have lost rental income due to their low- or moderate-income tenants being impacted by
COVID-19. Eligible expenses include unpaid rents, rental unit utility costs, and other housing
expenses as determined by the agency, incurred on or after March 1, 2020. For purposes of
this paragraph, low- or moderate-income tenants has the meaning given in Minnesota
Statutes, section 462A.03, subdivision 10.
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new text begin (f) Notwithstanding any other provision of law or policy, the commissioner may develop
and administer an application, award, and disbursement process for the program that takes
into account the emergency state of the needs these funds are intended to address and a
procedure to oversee and monitor grantees.
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new text begin (g) Housing providers and landlords who receive payment under this section must not:
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new text begin (1) file an eviction action against the tenant for six months after a grant payment is
received under this section;
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new text begin (2) fail to renew a lease for six months after a unit received funding under this section;
or
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new text begin (3) raise the rent for a tenant that receives rent under this section.
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new text begin (h) For purposes of this section, "public health emergency" has the meaning given in
section 2.
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new text begin EFFECTIVE DATE. new text end

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