Minnesota Legislature
SF 2595
as introduced - 86th Legislature (2009 - 2010) Posted on 02/11/2010 03:49pm
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A bill for an act
relating to landlord and tenant; modifying certain procedures related to
expungement in eviction cases; adding certain residential covenants; specifying
procedures for handling applicant screening fees; providing certain rights to
tenants of foreclosed properties; amending Minnesota Statutes 2008, sections
484.014, subdivision 3, by adding a subdivision; 504B.161, subdivision 1;
504B.173; 504B.178, subdivision 7; 504B.285, by adding a subdivision;
Minnesota Statutes 2009 Supplement, section 504B.285, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 504B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 484.014, subdivision 3, is amended to read:
Subd. 3.
Mandatory expungement.
The court shall order expungement of an
eviction case commenced solely on the grounds provided in section 504B.285, subdivision
deleted text begin 1, clause (1)deleted text end new text begin 1anew text end , if the court finds that the defendant occupied real property that was subject
to contract for deed cancellation or mortgage foreclosure and:
(1) the time for contract cancellation or foreclosure redemption has expired and the
defendant vacated the property prior to commencement of the eviction action; or
(2) the defendant was a tenant during the contract cancellation or foreclosure
redemption period and did not receive a notice under section 504B.285, subdivision deleted text begin 1deleted text end deleted text begin ,
clause (1)deleted text end new text begin 1anew text end , to vacate on a date prior to commencement of the eviction case.
Sec. 2.
Minnesota Statutes 2008, 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
If the defendant requests expungement when 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. 3.
Minnesota Statutes 2008, section 504B.161, subdivision 1, is amended to read:
Subdivision 1.
Requirements.
(a) In every lease or license of residential premises,
the landlord or licensor covenants:
(1) that the premises and all common areas are fit for the use intended by the parties;
(2) to keep the premises in reasonable repair during the term of the lease or license,
except when the disrepair has been caused by the willful, malicious, or irresponsible
conduct of the tenant or licensee or a person under the direction or control of the tenant or
licensee;
(3) to make the premises reasonably energy efficient by installing weatherstripping,
caulking, storm windows, and storm doors when any such measure will result in energy
procurement cost savings, based on current and projected average residential energy costs
in Minnesota, that will exceed the cost of implementing that measure, including interest,
amortized over the ten-year period following the incurring of the cost; deleted text begin anddeleted text end
(4) to maintain the premises in compliance with the applicable health and safety laws
of the state, and of the local units of government where the premises are located during the
term of the lease or license, except when violation of the health and safety laws has been
caused by the willful, malicious, or irresponsible conduct of the tenant or licensee or a
person under the direction or control of the tenant or licenseenew text begin ; and
new text end
new text begin
(5) notwithstanding any other provision of law, to provide the premises with heating
facilities that are properly installed, maintained, and functioning, and, from October
1 through April 30:
new text end
new text begin
(i) if the tenant controls the thermostat, the tenant is capable of safely and adequately
heating all habitable rooms, including bathrooms, at a minimum temperature of at least 68
degrees Fahrenheit measured at a distance of 36 inches above floor level and not closer
than 36 inches from any wall; or
new text end
new text begin
(ii) if the tenant does not control the thermostat, the heating facilities safely and
adequately heat all habitable rooms, including bathrooms, at a minimum temperature of
at least 68 degrees Fahrenheit measured at a distance of 36 inches above floor level and
not closer than 36 inches from any wall.
new text end
new text begin Nothing in this paragraph preempts or supersedes any ordinance adopted by a
municipality that provides for more protective requirementsnew text end .
(b) The parties to a lease or license of residential premises may not waive or modify
the covenants imposed by this section.
Sec. 4.
new text begin
[504B.172] RECOVERY OF COSTS IN ACTION FOR BREACH OF
COVENANTS.
new text end
new text begin
Where a residential lease provides that in any action or summary proceeding that
a landlord may recover, directly or through additional rent, attorney fees and expenses
incurred as the result of the failure of the tenant to perform any covenant or agreement
contained in the lease, including nonpayment of rent, it shall be implied in law that a
tenant may recover from a landlord in an action or summary proceeding attorney fees and
expenses incurred by the tenant as the result of the failure of the landlord to perform any
covenant or agreement contained in the lease or in the successful defense of any action or
summary proceeding commenced by the landlord against the tenant arising out of the lease.
new text end
Sec. 5.
Minnesota Statutes 2008, section 504B.173, is amended to read:
504B.173 APPLICANT SCREENING deleted text begin FEEdeleted text end .
Subdivision 1.
deleted text begin Limit on number of applicant screening feesdeleted text end new text begin Limitationsnew text end .
new text begin
(a) For
the purposes of this section, a "landlord" means any person having the right to rent or lease
any real property and the person's agent.
new text end
new text begin (b) new text end A landlord deleted text begin or the landlord's agentdeleted text end may notnew text begin :
new text end
new text begin (1)new text end charge an applicant a screening fee when the landlord knows or should have
known that no rental unit is available at that time or will be available within a reasonable
future timenew text begin ;
new text end
new text begin
(2) collect or hold a screening fee without giving the applicant a written receipt
for the fee;
new text end
new text begin
(3) use, cash, or deposit a screening fee until all prior applicants have either been
screened and rejected, or offered the unit and declined to enter into a rental agreement; or
new text end
new text begin (4) refuse to rent or lease, or refuse to consider renting or leasing, or otherwise deny
to or withhold from any person or group of persons any real property because an applicant
was a successful defendant in an eviction actionnew text end .
new text begin
(c) For the purposes of this subdivision, a "successful defendant in an eviction
action" means a defendant in an action which was dismissed for reasons other than: (i)
a settlement presented to the court; (ii) the defendant's assertion of the right to redeem
the tenancy under section 504B.291, subdivision 1; or (iii) the defendant's abandonment
of the property after the case was commenced but before the court appearance under
section 504B.335, paragraph (a).
new text end
Subd. 2.
Return of applicant screening fee.
deleted text begin If the landlord or the landlord's agent
does not perform a personal reference check or does not obtain a consumer credit report or
tenant screening report,deleted text end new text begin (a)new text end The landlord deleted text begin or the landlord's agentdeleted text end shall returnnew text begin :
new text end
new text begin
(1) the entire screening fee if:
new text end
new text begin
(i) the applicant is rejected for any reason not listed in the disclosure required
under subdivision 3; or
new text end
new text begin
(ii) a prior applicant is offered the unit and agrees to enter into a rental agreement; or
new text end
new text begin (2)new text end any amount of the screening fee that is not used for deleted text begin thosedeleted text end new text begin thenew text end purposesnew text begin of
performing a personal reference check or obtaining a consumer credit report or tenant
screening reportnew text end .
deleted text begin Thedeleted text end new text begin (b) A form must be provided to the applicant that permits the applicant to choose
whether thenew text end screening fee deleted text begin may be returned by mail, may be destroyed upon the applicant's
request if paid by check, or may be made available for the applicant to retrievedeleted text end new text begin is: (1)
returned by mail; (2) destroyed upon the applicant's request, if paid by check; or (3) made
available for the applicant to retrieve. If the applicant indicates no choice on the form, the
landlord may return the screening fee using any of the options listed in this paragraphnew text end .
Subd. 3.
Disclosures to applicant.
new text begin (a) new text end A landlord deleted text begin or the landlord's agentdeleted text end , prior to
taking an application fee from a prospective tenant, must disclose deleted text begin on the application
form or orallydeleted text end new text begin in writing:
new text end
new text begin (1)new text end the name, address, and telephone number of the tenant screening service the
owner will use, unless the deleted text begin ownerdeleted text end new text begin landlordnew text end does not use a tenant screening servicenew text begin ; and
new text end
new text begin (2) the criteria on which the decision to rent to the perspective tenant will be basednew text end .
new text begin
(b) A landlord may include in the application form a requirement that the applicant
declare whether the applicant does not meet any of the criteria on which a rental decision
will be based.
new text end
new text begin Subd. 3a. new text end
new text begin Requirements if application is rejected. new text end
new text begin
A landlord must notify the
applicant within 14 days of rejecting a rental application:
new text end
new text begin
(1) of the reasons for the rejection, including which criteria the tenant failed to
meet; and
new text end
new text begin
(2) the name, address, and telephone number of the tenant screening service used
by the landlord.
new text end
Subd. 4.
Remedies.
new text begin (a) new text end In addition to any other remedies, a landlord who violates
this section is liable to the applicant for the application fee plus a civil penalty of up to
$100, civil court filing costs, and reasonable attorney fees incurred to enforce this remedy.
new text begin
(b) A violation of subdivision 1, paragraph (b), clause (4), is deemed an unfair
discriminatory practice and, in addition to the remedies available under paragraph (a), an
aggrieved applicant may bring an action in district court seeking redress for the practice.
new text end
Sec. 6.
Minnesota Statutes 2008, section 504B.178, subdivision 7, is amended to read:
Subd. 7.
Bad faith retention.
The bad faith retention by a landlord of a deposit,
the interest thereon, or any portion thereof, in violation of this section shall subject the
landlord to punitive damages deleted text begin not to exceed $200deleted text end new text begin of $500 new text end for each deposit in addition to
the damages provided in subdivision 4. If the landlord has failed to comply with the
provisions of subdivision 3 or 5, retention of a deposit shall be presumed to be in bad faith
unless the landlord returns the deposit within two weeks after the commencement of
any action for the recovery of the deposit.
Sec. 7.
new text begin
[504B.208] RIGHT OF TENANTS IN FORECLOSED PROPERTIES TO
TERMINATE LEASE.
new text end
new text begin
A tenant may terminate a lease by giving prior notice equal to one rental period
where the property in which the tenant resides:
new text end
new text begin
(1) is the subject of a foreclosure by advertisement under chapter 580, or foreclosure
by action under chapter 581, and a foreclosure sale has occurred; or
new text end
new text begin
(2) subject to a cancellation of a contract for deed and within the 60-day cancellation
period provided under section 559.21, subdivision 2a.
new text end
Sec. 8.
new text begin
[504B.272] DUTY OF LANDLORDS AND TENANTS TO MITIGATE
DAMAGES.
new text end
new text begin
A landlord or tenant seeking damages for breach of lease must use reasonable
diligence to mitigate damages, including acceptance of a sublessee.
new text end
Sec. 9.
Minnesota Statutes 2009 Supplement, section 504B.285, subdivision 1, is
amended to read:
Subdivision 1.
Grounds.
The person entitled to the premises may recover
possession by eviction when:
(1) any person holds over real property:
(i) after a sale of the property on an execution or judgment; or
(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or
after termination of contract to convey the propertynew text begin ; new text end deleted text begin , provided that if the person holding
the real property after the expiration of the time for redemption or termination was a
tenant during the redemption or termination period under a lease of any duration and the
lease began after the date the mortgage or contract for deed was executed but prior to the
expiration of the time for redemption or termination, and the person has received:
deleted text end
deleted text begin
(A) at least two months' written notice to vacate no sooner than one month after the
expiration of the time for redemption or termination, provided that the tenant pays the
rent and abides by all terms of the lease; or
deleted text end
deleted text begin
(B) at least two months' written notice to vacate no later than the date of the
expiration of the time for redemption or termination, which notice shall also state that the
sender will hold the tenant harmless for breaching the lease by vacating the premises if the
mortgage is redeemed or the contract is reinstated;
deleted text end
(2) any person holds over real property after termination of the time for which
it is demised or leased to that person or to the persons under whom that person holds
possession, contrary to the conditions or covenants of the lease or agreement under which
that person holds, or after any rent becomes due according to the terms of such lease or
agreement; or
(3) any tenant at will holds over after the termination of the tenancy by notice to quit.
Sec. 10.
Minnesota Statutes 2008, section 504B.285, is amended by adding a
subdivision to read:
new text begin Subd. 1a. new text end
new text begin
Grounds when the person holding over is a tenant in a foreclosed
property.
new text end
new text begin
(a) For any eviction action commenced on or before December 31, 2012, where
the person holding the real property after the expiration of the time for redemption or
termination was a tenant during the redemption or termination period under a lease of any
duration, and the lease began after the date the mortgage or contract for deed was executed
but prior to the expiration of the time for redemption or termination, the 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 or termination and effective no sooner
than 90 days after the date of the expiration of the time for redemption or termination.
new text end
new text begin
(b) For any eviction action commenced on or before December 31, 2012, when the
lease term extends more than 90 days beyond the date of the expiration of the time for
redemption or termination, 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, except:
new text end
new text begin
(1) 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 earlier than the
date of the expiration of the time for redemption or termination, effective no sooner than
90 days after the date of the expiration of the time for termination or redemption; or
new text end
new text begin
(2) in the case of a tenancy subject to Section 8 of the United States Housing Act
of 1937, as amended, if the immediate successor in interest will occupy the unit as the
primary residence, the immediate successor must provide at least 90 days' written notice
to vacate, given no earlier than the date of the expiration of the time for redemption or
termination, effective no sooner than 90 days after the date of the expiration of the time
for termination or redemption.
new text end
new text begin
(c) For any eviction action commenced on or after January 1, 2013, the person
entitled to the premises may recover possession by eviction when any person holds over
real property after the expiration of the time for redemption on foreclosure of a mortgage,
or after termination of contract to convey the property, provided that if the person holding
the real property after the expiration of the time for redemption or termination was a
tenant during the redemption or termination period under a lease of any duration, and the
lease began after the date the mortgage or contract for deed was executed but prior to the
expiration of the time for redemption or termination, the person holding the premises
has received:
new text end
new text begin
(1) at least two months' written notice to vacate no sooner than one month after the
expiration of the time for redemption or termination, provided that the tenant pays the
rent and abides by all terms of the lease; or
new text end
new text begin
(2) at least two months' written notice to vacate no later than the date of the
expiration of the time for redemption or termination, which notice shall also state that the
sender will hold the tenant harmless for breaching the lease by vacating the premises if the
mortgage is redeemed or the contract is reinstated.
new text end