Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 317-H.F.No. 531 
           An act relating to housing; requiring owner to furnish 
          a tenant with a copy of a written lease; requiring 
          disclosure of inspection and condemnation orders; 
          modifying procedure for tenant file disclosure by 
          tenant screening services; modifying definitions; 
          requiring reports; providing penalties; amending 
          Minnesota Statutes 1992, sections 504.29, by adding a 
          subdivision; 504.30, subdivisions 1, 3, and 4; 504.33, 
          subdivisions 3, 5, and 7; 504.34, subdivisions 1 and 
          2; and 566.18, subdivisions 2 and 7; Laws 1989, 
          chapter 328, article 2, section 17, subdivision 1; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 504; repealing Laws 1989, chapter 328, article 
          2, sections 18 and 19. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [504.012] [WRITTEN LEASE REQUIRED.] 
    An owner of a multiunit building, with 12 or more 
residential units, shall have a written lease for each unit 
rented to a residential tenant.  The definitions of "owner," 
"tenant," and "building" in section 566.18 apply to this section.
    Sec. 2.  [504.015] [TENANT TO BE GIVEN COPY OF LEASE.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, "owner" has the meaning given it in section 566.18, and 
"tenant" means any person occupying the dwelling unit whose 
signature appears on the lease agreement. 
    Subd. 2.  [COPY OF WRITTEN LEASE TO TENANT.] An owner shall 
give a tenant a copy of a written lease.  An owner may obtain a 
signed and dated receipt, either as a separate document or an 
acknowledgment included in the lease agreement itself, from the 
tenant acknowledging that the tenant has received a copy of the 
lease.  This signed receipt or acknowledgment is prima facie 
evidence that the tenant has received a copy of the lease. 
    Subd. 3.  [LEGAL ACTION TO ENFORCE LEASE.] In any legal 
action to enforce a written lease, except for nonpayment of 
rent, disturbing the peace, malicious destruction of property, 
or a violation of section 504.181, it is a defense for the 
tenant to establish that the owner failed to comply with 
subdivision 2.  This defense may be overcome if the owner 
establishes that the tenant had actual knowledge of the term or 
terms of the lease upon which any legal action is based. 
    Sec. 3.  [504.201] [RESTRICTION ON LEASE TERMS FOR 
BUILDINGS IN FINANCIAL DISTRESS.] 
    Subdivision 1.  [DEFINITIONS.] The definitions of "owner," 
"tenant," and "building" in section 566.18 apply to this 
section.  For purposes of this section, the term "building" does 
not include a manufactured home park as defined in section 
327C.01, subdivision 5. 
    Subd. 2.  Once an owner 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, the owner 
may enter into a periodic lease agreement with a term of two 
months or less or a fixed term tenancy not extending beyond the 
cancellation period or owner'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. 
    Sec. 4.  [504.246] [DISCLOSURE REQUIRED FOR OUTSTANDING 
INSPECTION AND CONDEMNATION ORDERS.] 
    Subdivision 1.  [DISCLOSURE TO TENANT.] (a) Except as 
provided in subdivision 3, a landlord, agent, or person acting 
under the landlord's direction or control shall provide a copy 
of all outstanding inspection orders for which a citation has 
been issued, pertaining to a rental unit or common area, 
specifying code violations issued under section 566.19, that the 
housing inspector identifies as requiring notice because the 
violations threaten the health or safety of the tenant, and all 
outstanding condemnation orders and declarations that the 
premises are unfit for human habitation to: 
    (1) a tenant, as defined in section 566.18, either by 
delivery or by United States mail, postage prepaid, within 72 
hours after issuance of the citation; 
    (2) a person before signing a lease or paying rent or a 
security deposit to begin a new tenancy; and 
    (3) a person prior to obtaining new ownership of the 
property subject to the order or declaration. 
    The housing inspector shall indicate on the inspection 
order whether the violation threatens the health or safety of a 
tenant or prospective tenant. 
    (b) If an inspection order, for which a citation has been 
issued, does not involve code violations that threaten the 
health or safety of the tenants, the landlord, agent, or person 
acting under the landlord's control shall post a summary of the 
inspection order in a conspicuous place in each building 
affected by the inspection order, along with a notice that the 
inspection order will be made available by the landlord for 
review, upon a request of a tenant or prospective tenant.  The 
landlord shall provide a copy of the inspection order for review 
by a tenant or a prospective tenant as required under this 
subdivision. 
    Subd. 2.  [PENALTY.] If the landlord, agent, or person 
acting under the landlord's direction or control violates this 
section, the tenant is entitled to remedies provided by section 
8.31, subdivision 3a, and other equitable relief as determined 
by the court. 
    Subd. 3.  [EXCEPTION.] A landlord, agent, or person acting 
under the landlord's direction or control is not in violation of 
this section if: 
    (1) the landlord, agent, or person acting under the 
landlord's direction or control has received only an initial 
order to repair; 
    (2) the time allowed to complete the repairs, including any 
extension of the deadline, has not yet expired, or less than 60 
days has elapsed since the expiration date of repair orders and 
any extension or no citation has been issued; or 
    (3) the landlord, agent, or person acting under the 
landlord's direction or control completes the repairs within the 
time given to repair, including any extension of the deadline. 
    Subd. 4.  [LANDLORD'S DEFENSE.] It is an affirmative 
defense in an action brought under this section for the 
landlord, agent, or person acting under the landlord's control 
to prove that disclosure was made as required under subdivision 
1. 
    Sec. 5.  Minnesota Statutes 1992, section 504.29, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [PROPER IDENTIFICATION.] "Proper identification" 
means information generally considered sufficient to identify a 
person, including a Minnesota driver's license, a Minnesota 
identification card, other forms of identification provided by a 
unit of government, a notarized statement of identity with a 
specimen signature of the person, or other reasonable form of 
identification.  
    Sec. 6.  Minnesota Statutes 1992, section 504.30, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DISCLOSURES REQUIRED.] (a) Upon request 
and proper identification, a tenant screening service must 
disclose the following information to an individual: 
    (1) the nature and substance of all information in its 
files on the individual at the time of the request; and 
    (2) the sources of the information. 
    A tenant screening service must make the disclosures to an 
individual without charge if information in a tenant report has 
been used within the past 30 days to deny the rental or increase 
the security deposit or rent of a residential housing unit to 
the individual.  If the tenant report has not been used to deny 
the rental or increase the rent or security deposit of a 
residential housing unit within the past 30 days, the tenant 
screening service may impose a reasonable charge for making the 
disclosure required under this section.  The tenant screening 
service must notify the tenant of the amount of the charge 
before furnishing the information.  The charge may not exceed 
the amount that the tenant screening service would impose on 
each designated recipient of a tenant report, except that no 
charge may be made for notifying persons of the deletion of 
information which is found to be inaccurate or which can no 
longer be verified. 
    (b) Files maintained on a tenant must be disclosed promptly 
as established in clauses (1) to (4). 
    (1) A tenant file must be disclosed in person, during 
normal business hours, at the location where the tenant 
screening service maintains its files, if the tenant appears in 
person and furnishes proper identification at that time. 
    (2) A tenant file must be disclosed by mail, if the tenant 
makes a written request with proper identification for a copy of 
the information contained in the tenant report and requests that 
the information be sent to a specified address.  A disclosure 
made under this clause shall be deposited in the United States 
mail, postage prepaid, within five business days after the 
written request for disclosure is received by the tenant 
screening service.  A tenant screening service complying with a 
request for disclosure under this clause shall not be liable for 
disclosures to third parties caused by mishandling mail, 
provided that the tenant file information is mailed to the 
address specified by the tenant in the request. 
    (3) A summary of the information in a tenant file must be 
disclosed by telephone, if the tenant has made a written request 
with proper identification for telephone disclosure. 
    (4) Information in a tenant's file required to be disclosed 
in writing under this subdivision may be disclosed in any other 
form including electronic means if authorized by the tenant and 
available from the tenant screening service. 
    Sec. 7.  Minnesota Statutes 1992, section 504.30, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXPLANATIONS.] The tenant screening service must 
permit an individual to explain any unlawful detainer report or 
any disputed item not resolved by reinvestigation in a tenant 
report.  The explanation must be included in the tenant report.  
The tenant screening service may limit the explanation to no 
more than 100 words.  
    Sec. 8.  Minnesota Statutes 1992, section 504.30, 
subdivision 4, is amended to read: 
    Subd. 4.  [COURT FILE INFORMATION.] (a) If a tenant 
screening service includes information from a court file on an 
individual in a tenant report, the outcome of the court 
proceeding must be accurately recorded in the tenant report, 
unless the outcome is not provided by the court.  Whenever the 
court supplies information from a court file on an individual, 
in whatever form, the court shall include information on the 
outcome of the court proceeding when it is becomes available.  
The tenant screening service is not liable under section 504.31 
if the tenant screening service reports complete and accurate 
information as provided by the court. 
    (b) A tenant screening service shall not provide tenant 
reports containing information on unlawful detainer actions in 
the second and fourth judicial districts, unless the tenant 
report accurately records the outcome of the proceeding or other 
disposition of the unlawful detainer action such as settlement, 
entry of a judgment, default, or dismissal of the action. 
    Sec. 9.  Minnesota Statutes 1992, section 504.33, 
subdivision 3, is amended to read: 
    Subd. 3.  [DISPLACE.] "Displace" means to demolish, acquire 
for or convert to a use other than low-income housing, or to 
provide or spend money that directly results in the demolition, 
acquisition, or conversion of housing to a use other than 
low-income housing. 
    "Displace" does not include providing or spending money 
that directly results in:  (i) housing improvements made to 
comply with health, housing, building, fire prevention, housing 
maintenance, or energy codes or standards of the applicable 
government unit; (ii) housing improvements to make housing more 
accessible to a handicapped person; or (iii) the demolition, 
acquisition, or conversion of housing for the purpose of 
creating owner-occupied housing that consists of no more than 
four units per structure. 
    "Displace" does not include downsizing large apartment 
complexes by demolishing less than 25 percent of the units in 
the complex or by eliminating units through reconfiguration and 
expansion of individual units for the purpose of expanding the 
size of the remaining low-income units.  For the purpose of this 
section, "large apartment complex" means two or more adjacent 
buildings containing a total of 100 or more units per complex. 
    Sec. 10.  Minnesota Statutes 1992, section 504.33, 
subdivision 5, is amended to read: 
    Subd. 5.  [LOW-INCOME HOUSING.] (a) "Low-income housing" 
means either: 
    (1) rental housing with a rent less than or equal to 30 
percent of 50 percent of the median income for the county in 
which the rental housing is located, adjusted by size; or 
    (2) rental housing occupied by households with income below 
30 percent of the median for the metropolitan area as defined in 
section 473.121, subdivision 2, adjusted by size. 
    (b) "Low-income housing" also includes rental housing that 
has been vacant for less than two years, that was low-income 
housing when it was last occupied, and that is not condemned as 
being unfit for human habitation by the applicable government 
unit. 
    Sec. 11.  Minnesota Statutes 1992, section 504.33, 
subdivision 7, is amended to read: 
    Subd. 7.  [REPLACEMENT HOUSING.] "Replacement housing" 
means rental housing that is: 
    (1) the lesser of (i) the number and corresponding size of 
low-income housing units displaced, or (ii) sufficient in number 
and corresponding size of those low-income housing units 
displaced to meet the demand for those units.  Notwithstanding 
subclauses (i) and (ii), if the housing impact statement shows 
demonstrated need, displaced units may be replaced by fewer, 
larger units of comparable total size, except that efficiency 
and single room occupancy units may not be replaced by units of 
a larger size; 
    (2) low-income housing for the greater of at least 15 years 
or the compliance period of the federal low-income housing tax 
credit under United States Code, title 26, section 42(i)(1), as 
amended.  This section does not prohibit increases in rent to 
cover operating expenses; 
    (3) in at least standard condition; and 
    (4) located in the city where the displaced low-income 
housing units were located. 
    Replacement housing may be provided as newly constructed 
housing, or rehabilitated housing that was previously unoccupied 
or vacant and in condemnable condition or rent subsidized 
existing housing that does not already qualify as low-income 
housing. 
    Notwithstanding the above requirements, public housing 
units which are a part of a disposition plan approved by the 
Department of Housing and Urban Development automatically 
qualify as replacement housing for public housing units which 
are displaced. 
    Sec. 12.  Minnesota Statutes 1992, section 504.34, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ANNUAL REPORT REQUIRED.] A government unit 
shall prepare an annual a housing impact report either: 
    (1) for each year in which the government unit displaces 
ten or more units of low-income housing in a city of the first 
class as defined in section 410.01; or 
    (2) when a specific project undertaken by a government unit 
for longer than one year displaces a total of ten or more units 
of low-income housing in a city of the first class as defined in 
section 410.01. 
    Sec. 13.  Minnesota Statutes 1992, section 504.34, 
subdivision 2, is amended to read: 
    Subd. 2.  [DRAFT ANNUAL HOUSING IMPACT REPORT.] A 
government unit subject to this section must prepare a draft 
annual housing impact report for review and comment by 
interested persons.  The draft report must be completed by 
January 31 of the year immediately following a year in which the 
government unit has displaced ten or more units of low-income 
housing in a city.  For a housing impact report required under 
subdivision 1, clause (2), the draft report must be completed by 
January 31 of the year immediately following the year in which 
the government unit has displaced a cumulative total of ten 
units of low-income housing in a city. 
    Sec. 14.  Minnesota Statutes 1992, section 566.18, 
subdivision 2, is amended to read: 
    Subd. 2.  [TENANT.] "Tenant" means any person who is 
occupying a dwelling in a building as defined in subdivision 7, 
under any agreement, lease, or contract, whether oral or 
written, and for whatever period of time, which requires the 
payment of moneys money or exchange of services as rent for the 
use of the dwelling unit, and all other regular occupants of 
that dwelling unit, and any resident of a manufactured home park.
    Sec. 15.  Minnesota Statutes 1992, section 566.18, 
subdivision 7, is amended to read: 
    Subd. 7.  [BUILDING.] "Building" means: 
    (a) any a building used in whole or in part as a dwelling, 
including single family homes, multiple family units such as 
apartments, and structures containing both dwelling units and 
units used for nondwelling purposes, and also includes a 
manufactured home park, or 
    (b) any an unoccupied building which was previously used in 
whole or in part as a dwelling and which constitutes a nuisance 
under section 561.01. 
    Sec. 16.  Laws 1989, chapter 328, article 2, section 17, 
subdivision 1, is amended to read: 
    Sec. 17.  [HOUSING CALENDAR CONSOLIDATION PILOT PROJECT.] 
    Subdivision 1.  [ESTABLISHMENT.] A three-year pilot project 
may be is established in the second and fourth judicial 
districts to consolidate the hearing and determination of 
matters related to residential rental housing and to ensure 
continuity and consistency in the disposition of cases. 
    Sec. 17.  [COURT STUDY OF UNLAWFUL DETAINER REPORTS BY 
TENANT SCREENING SERVICES.] 
    The second and fourth district courts are requested to 
study data reported in conjunction with unlawful detainer 
actions in order to assure that accurate and timely information 
on unlawful detainer proceedings is available for tenant 
reports.  The study must identify ways to report data so that 
information on the outcome of unlawful detainer proceedings is 
as readily available, accurate, timely, and as permanent as 
information on unlawful detainer filings.  The study shall also 
consider the length of time information on unlawful detainer 
filings and dispositions must be retained by the courts.  The 
courts shall report their findings to the relevant housing 
committees of the house of representatives and the senate by 
January 1, 1994.  Each district court shall implement the study 
findings and establish methods to report the outcome and 
disposition of unlawful detainer actions as soon as the study is 
completed, but no later than January 1, 1994. 
    Sec. 18.  [REPEALER.] 
    Laws 1989, chapter 328, article 2, sections 18 and 19, are 
repealed. 
    Sec. 19.  [EFFECTIVE DATE.] 
    Section 1 is effective August 1, 1993, for new or renewed 
tenancy beginning on or after August 1, 1993. 
    Section 8 is effective April 1, 1994. 
    Sections 16 and 18 are effective the day after final 
enactment. 
    Presented to the governor May 17, 1993 
    Signed by the governor May 20, 1993, 2:15 p.m.