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SF 967

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/03/2013 08:27am

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A bill for an act
relating to housing; landlord and tenant; imposing civil penalty for certain
violations; amending certain provisions relating to tenants holding over;
modifying certain time for appeal and notice of hearing; making technical,
clarifying, and conforming changes;amending Minnesota Statutes 2012,
sections 504B.151, subdivision 1; 504B.285, subdivisions 1a, 1b; 504B.371,
subdivision 2; 504B.385, subdivision 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 504B.151, subdivision 1, is amended to
read:


Subdivision 1.

Limitation on lease and notice to tenant.

(a) Once a landlord has
received notice of a contract for deed cancellation under section 559.21 or notice of a
mortgage foreclosure sale under chapter 580 or 582, or summons and complaint under
chapter 581, the landlord may only enter into (i) a periodic residential lease agreement
with a term of not more than two months or the time remaining in the contract cancellation
period or the mortgagor's redemption period, whichever is less or (ii) a fixed term
residential tenancy not extending beyond the cancellation period or the landlord's period
of redemption until:

(1) the contract for deed has been reinstated or paid in full;

(2) the mortgage default has been cured and the mortgage reinstated;

(3) the mortgage has been satisfied;

(4) the property has been redeemed from a foreclosure sale; or

(5) a receiver has been appointed.

(b) Before entering into a lease under this section and accepting any rent or security
deposit from a tenant, the landlord must notify the prospective tenant in writing that the
landlord has received notice of a contract for deed cancellation or notice of a mortgage
foreclosure sale as appropriate, and the date on which the contract cancellation period or
the mortgagor's redemption period ends.

(c) This section does not apply to a manufactured home park as defined in section
327C.01, subdivision 5.

(d) A landlord who violates the requirements in this subdivision is liable to the lessee
for a civil penalty of $500. The remedy provided under this paragraph is in addition to and
does not limit other rights or remedies available to landlords and tenants.

Sec. 2.

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) For any eviction action commenced on or before December 31,
2014,
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) For any eviction action commenced on or before December 31, 2014, 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) For any eviction action commenced on or before December 31, 2014, 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. 3.

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.

For any eviction action commenced on or before
December 31, 2014,
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. 4.

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 ten 15 days as provided for civil actions in district court.

Sec. 5.

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 tenant:

(1) deposits rent with the court administrator; or

(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)
.

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.

(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. 6. REPEALER.

Minnesota Statutes 2012, section 504B.285, subdivision 1c, is repealed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

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