SF 4495

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/15/2020 08:12am

A bill for an act
relating to housing; providing for eviction and mortgage foreclosure protection
and emergency housing assistance during a public health emergency; requiring a
report; prescribing penalties for false statements; appropriating money.

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

Section 1. new text begin EVICTION ACTIONS; STATE OF EMERGENCY.
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new text begin (a) In the event of a public health emergency, as defined in paragraph (c), the following
actions are prohibited for 60 days after March 24, 2020, within the jurisdiction of the public
health emergency:
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new text begin (1) filing of eviction actions under Minnesota Statutes, section 504B.285 or 504B.291,
except where the tenant seriously endangers the safety of others or for violations under
Minnesota Statutes, section 504B.171, subdivision 1;
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new text begin (2) termination of residential leases, except at the request of a tenant or where the
termination is due to the tenant seriously endangering the safety of others or for violations
under Minnesota Statutes, section 504B.171, subdivision 1;
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new text begin (3) execution of writs of recovery under Minnesota Statutes, section 504B.365,
subdivision 1, with the exception of writs of recovery designated as priority execution under
Minnesota Statutes, section 504B.365, subdivision 2; for any order to vacate that is based
on an eviction under Minnesota Statutes, section 504B.171; or on the basis that the tenant
seriously endangered the safety of others;
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new text begin (4) termination of a rental agreement or filing an eviction action under Minnesota Statutes,
section 327C.09, except terminations or eviction actions under Minnesota Statutes, section
327C.09, subdivision 3, violations of law, or for cases brought under Minnesota Statutes,
section 327C.09, subdivision 5, if the case is based on the resident endangering the safety
of other residents or park personnel; and
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new text begin (5) delivery of default notices by owners of security interests in manufactured homes
located in Minnesota, pursuant to Minnesota Statutes, section 327.64, as well as the ability
of secured parties to commence actions for court orders to remove occupants from
manufactured homes.
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new text begin (b) 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 (c) For the 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 issued within 30 days of Executive Order 20-01 that relates to 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.
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Sec. 2. new text begin EXTENSION OF EVICTION ACTIONS; STATE OF EMERGENCY.
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new text begin (a) The governor has the power to extend the prohibitions listed in section 1, paragraph
(a), for up to 30 days in the event the public health emergency persists and threatens the
health and safety of the citizens of Minnesota. The total number of days of extension allowed
under this section is 30 days. No extensions are allowed after this 30-day period. 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. For the purposes of this section, "public health
emergency" has the meaning given in section 1, paragraph (c).
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new text begin (b) A landlord may not terminate a lease during the 30-day period, except at the request
of a tenant, or where the termination is due to the tenant seriously endangering the safety
of other residents or for violations under Minnesota Statutes, section 504B.171, subdivision
1. Leases expiring during the 30-day period must be extended to the end of the period if
requested by the tenant within 15 days before the lease expires.
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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. 3. new text begin ASSISTANCE FRAUD.
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new text begin Any person who, with the intent to defraud, presents a claim under section 4 which is
false in whole or in part, is guilty of an attempt to commit theft of public funds and may be
sentenced accordingly.
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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. 4. new text begin APPROPRIATION; 2020 EMERGENCY HOUSING ASSISTANCE GRANTS.
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new text begin (a) $30,000,000 in fiscal year 2020 is appropriated from the general fund to the
commissioner of the Minnesota Housing Finance Agency for transfer to the housing
development fund for the family homeless prevention and assistance program under
Minnesota Statutes, section 462A.204. The agency may use grantees of the family homeless
prevention and assistance program under Minnesota Statutes, section 462A.204, and the
grantees are preapproved to distribute money under this section. Notwithstanding the
requirements of Minnesota Statutes, sections 16C.06 and 462A.204, the commissioner of
the Minnesota Housing Finance Agency shall allocate these resources to existing grantees
and contract with other entities that are not current grantees based on homelessness prevention
needs. Entities may include counties, cities, nonprofit organizations, tribes, or other entities
identified by the agency. For purposes of this emergency appropriation, nonprofits do not
need to obtain sponsoring resolutions from counties as required under Minnesota Statutes,
section 462A.204, subdivision 3. This appropriation is onetime and available until December
31, 2020. Funds not committed or expended by December 31, 2020, shall cancel to the
general fund. If federal funds become available for use for this program, federal funds shall
be used prior to use of this appropriation. To the extent practicable, the Minnesota Housing
Finance Agency shall notify the media, landlords, chambers of commerce, and other
interested parties of the availability of the assistance program.
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new text begin (b) Funding under this section shall be for individuals, families, and homeowners in
Minnesota to prevent homelessness and help maintain homeownership during
public-health-related emergencies consistent with the requirements of this section. The
commissioner may contract with county agencies, local governments, tribes, or nonprofit
organizations to provide funding and support services to process applications for funding
under this program. To be eligible for funding, applicants must:
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new text begin (1) have a public-health-related emergency as defined in this section;
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new text begin (2) 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 with a due date of March 1, 2020, or later, that is
past due;
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new text begin (3) be unable to pay the money owed because of the public health emergency; and
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new text begin (4) be a household, with a current gross income under 300 percent of the federal poverty
guidelines at the time of application or as averaged over the previous 12 months, whichever
is lower.
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new text begin (c) If an applicant applies for relief from sources other than the 2020 emergency housing
assistance grants and receives aid for the purposes of paying for housing, the applicant must
immediately notify the granting agency. Applicants may receive funding for rent, a mortgage
payment, homeowner association dues, rent due for a manufactured home, contract for deed
payment owed to a seller, homeowner insurance or property tax payment owed for a home,
or utility payment owed with a due date of March 1, 2020, or later, that is due within 14
days of the application or that is up to 45 days past due at the time of application. Entities
receiving grants under this section must provide written notification of legal duties that are
taken on by aid recipients, including but not limited to informing the granting agency if a
recipient receives aid for the purposes of paying for housing.
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new text begin (d) Once an application is approved, the assistance file may remain open to allow for
consideration of additional future assistance needs under this funding program resulting
from the public health emergency. The financial assistance provided for any individual or
family must not exceed the minimum rent due, contract for deed payment, or mortgage
payment owed, plus the homeowner association dues and utility payments owed, for a period
of 90 days, except those at risk of experiencing homelessness.
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new text begin (e) Funding 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
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new text begin (7) any other identified entity to whom payment is owed.
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new text begin (f) The commissioner may develop applications for the program and a process to oversee
grantees.
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new text begin (g) Data submitted from benefits by an applicant to establish eligibility under this section
is subject to Minnesota Statutes, section 13.462.
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new text begin (h) By February 8, 2021, the Minnesota Housing Finance Agency must submit a report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over housing finance with a summary of the performance of this program. The report must
contain the following information:
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new text begin (1) the total number of grants awarded to grantees and the number of households assisted
under this program;
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new text begin (2) the total amount of grant funding awarded to grantees and households assisted under
this program;
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new text begin (3) the mean and median grant amounts awarded to grantees and households assisted
under this program;
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new text begin (4) a summary of the geographic distribution of grants awarded under this program,
including a list of the number of households awarded grants by county and the total dollar
amount in assistance provided to all households by county; and
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new text begin (5) a list of all entities contracted with to process applications under this program.
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new text begin (i) For the purposes of this section, "public-health-related emergency" means:
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new text begin (1) an illness, either of an individual or an individual's relative or household member,
related to COVID-19 that prevents the individual from maintaining employment temporarily
or permanently and the individual's income is reduced by 15 percent or more; or
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new text begin (2) a reduction in income by 15 percent or more, or temporary or permanent
unemployment as a result of COVID-19, or due to 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 issued on
or before September 30, 2020, that relates to COVID-19.
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new text begin (j) If the commissioner determines that the appropriation in this section is an eligible
expenditure from the coronavirus relief federal fund, the amount of the expenditure is
appropriated from the coronavirus relief federal fund and the corresponding amount is
canceled from the general fund.
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new text begin (k) No money in this section may be spent until the commissioner of management and
budget determines that the appropriation in this section is an eligible use of the coronavirus
relief federal fund.
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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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