1998 Minnesota Statutes

     273.1316 Classification of substandard residential 
  rental property. 

    Subdivision 1.    Denial of rental classification.  A 
 building that is classified as residential rental property under 
 section 273.13, subdivision 25, and that is determined to be 
 substandard under this section is assessed as provided in 
 section 273.13, subdivision 25, paragraph (e). 

    Subd. 2.    Definition.  "Substandard building" means a 
 building that:  

    (1) has been determined by a state, county, or city agency 
 that is charged by the governing body of the appropriate 
 political subdivision with the responsibility for enforcing 
 health, housing, building, fire prevention, or housing 
 maintenance codes: 

    (i) to materially endanger the health and safety of the 
 occupants; or 

    (ii) if unoccupied, to be a hazardous building within the 
 meaning of section 463.15, subdivision 3; or 

    (iii) to be substantially out of compliance with the basic 
 provisions of the housing and maintenance code of that county or 
 city; and 

    (2) has not been repaired or brought to a condition of 
 compliance within three months after the date of the violation 
 notice to the owner as provided in subdivision 3, or within the 
 time prescribed by the agency in the notice in accordance with 
 applicable state law or local ordinance, whichever period is 
 longer.  

    A building is not substandard under this subdivision if it 
 was rendered substandard solely by reason of a tornado, flood, 
 or other natural disaster.  

    Subd. 3.    Violation notice.  The initial notice of 
 violation by the agency to the owner must be written and must 
 contain: 

    (1) the details of the violation; 

    (2) the date by which repairs must be completed or 
 compliance with other requirements must be achieved; 

    (3) a general description of the tax consequences if the 
 violations are not corrected; and 

    (4) information on where and how an appeal may be filed.  

    The agency may extend the compliance date prescribed in the 
 violation notice, for good cause shown, or may determine that 
 good faith efforts at compliance are sufficient to prevent 
 designation as a substandard building.  

    Subd. 4.    Notice of noncompliance.  When the period 
 specified in subdivision 3 has expired without compliance and 
 the building has been determined to be substandard as defined in 
 subdivision 2, the agency shall mail to the owner a notice of 
 noncompliance.  The notice of noncompliance must be mailed by 
 certified mail, return receipt requested, to the owner of the 
 property at the owner's last known address.  The notice must 
 contain:  

    (1) the details of the noncompliance; 

    (2) a statement that the local assessor has been notified 
 of the noncompliance and that the property will be reclassified 
 unless compliance is achieved within 30 days of the mailing of 
 the notice; 

    (3) a general description of the tax consequences resulting 
 from the denial of a residential rental property tax 
 classification; and 

    (4) information on where and how an appeal may be filed.  

    Subd. 5.    Appeals to board.  Appeals shall be made to 
 the board created under this subdivision.  Each county and city, 
 prior to issuance of a violation notice under subdivision 3, 
 must establish a board to hear appeals under this subdivision.  
 The board shall have five members appointed by the governing 
 body.  A decision of the appeal board may be appealed to the 
 district court of the county in which the building is located, 
 concerning the violation and determination of material 
 endangerment, hazard, or lack of substantial compliance with the 
 basic provisions of the housing and maintenance code under 
 subdivision 2, and concerning a determination of noncompliance 
 under subdivision 4.  An appeal must be made no later than 30 
 days after receipt of the notice of the action or determination 
 being appealed.  If the board determines that the substandard 
 building has been brought to a condition of compliance, the 
 board shall require the agency to mail to the taxpayer a notice 
 of compliance, which shall be in the form and include the 
 information prescribed by the local assessor.  

    Subd. 6.    Timing of process.  If a notice of 
 noncompliance is mailed before July 1 of any year, and the 
 property owner has neither (1) successfully appealed the 
 determination, nor (2) brought the property into compliance by 
 October 15 of that year, the property will be assessed under 
 section 273.13, subdivision 25, paragraph (e), for taxes levied 
 in that year and all subsequent years until the agency 
 determines that the property is no longer a substandard 
 building, or the property owner prevails on an appeal of the 
 matter.  If a notice of noncompliance is mailed after June 30 of 
 any year, the disqualification would initially be effective for 
 taxes levied in the following year. 

    Subd. 7.    Refund upon appeal.  If the property owner 
 prevails on an appeal at any time after taxes have been paid 
 based on assessment of the property as provided in section 
 273.13, subdivision 25, paragraph (e), the agency shall notify 
 the property owner concerning the procedures for the filing for 
 a refund.  The notice shall be in the form and include the 
 information prescribed by the local tax assessor.  The taxpayer 
 may then file for a refund of the difference between the amount 
 of the tax paid and the tax that would have been payable if the 
 property had not been incorrectly assessed under this section, 
 and each governmental subdivision that levied the tax on the 
 property shall refund to the property owner its proportionate 
 share of the refund.  

    Subd. 8.    Specification of violations.  A notice of 
 noncompliance shall not be mailed by the agency to the taxpayer 
 until the state or the governing body of the appropriate 
 political subdivision has prescribed by statute or ordinance the 
 nature and types of violations of codes referred to in 
 subdivision 2, that would constitute substantial noncompliance 
 with the basic provisions of the code or material endangerment 
 to the health and safety of occupants of buildings, or that 
 would constitute a hazardous building within the meaning of 
 section 463.15, subdivision 3. 

    HIST: 1Sp1989 c 1 art 2 s 9