Subdivision 1. Appointment.
The administrator may be a person, local government unit or
agency, other than a landlord of the building, the inspector, the complaining residential tenant, or
a person living in the complaining residential tenant's dwelling unit. If a state or court agency is
authorized by statute, ordinance, or regulation to provide persons or neighborhood organizations
to act as administrators under this section, the court may appoint them to the extent they are
Subd. 2. Posting bond.
A person or neighborhood organization appointed as administrator
shall post bond to the extent of the rents expected by the court to be necessary to be collected
to correct the violation or violations. Administrators appointed from governmental agencies
shall not be required to post bond.
Subd. 3. Expenses.
The court may allow a reasonable amount for the services of
administrators and the expense of the administration from rent money. When the administration
terminates, the court may enter judgment against the landlord in a reasonable amount for the
services and expenses incurred by the administrator.
Subd. 4. Powers.
The administrator may:
(1) collect rents from residential and commercial tenants, evict residential and commercial
tenants for nonpayment of rent or other cause, enter into leases for vacant dwelling units, rent
vacant commercial units with the consent of the landlord, and exercise other powers necessary
and appropriate to carry out the purposes of sections
(2) contract for the reasonable cost of materials, labor, and services including utility services
provided by a third party necessary to remedy the violation or violations found by the court to exist
and for the rehabilitation of the property to maintain safe and habitable conditions over the useful
life of the property, and disburse money for these purposes from funds available for the purpose;
(3) provide services to the residential tenants that the landlord is obligated to provide but
refuses or fails to provide, and pay for them from funds available for the purpose;
(4) petition the court, after notice to the parties, for an order allowing the administrator to
encumber the property to secure funds to the extent necessary to cover the costs described in
clause (2), including reasonable fees for the administrator's services, and to pay for the costs
from funds derived from the encumbrance; and
(5) petition the court, after notice to the parties, for an order allowing the administrator
to receive funds made available for this purpose by the federal or state governing body or the
municipality to the extent necessary to cover the costs described in clause (2) and pay for them
from funds derived from this source.
The municipality shall recover disbursements under clause (5) by special assessment on
the real estate affected, bearing interest at the rate determined by the municipality, but not to
exceed the rate established for finance charges for open-end credit sales under section
, clause (b). The assessment, interest, and any penalties shall be collected as are
special assessments made for other purposes under state statute or municipal charter.
Subd. 5. Termination of administration.
At any time during the administration, the
administrator or any party may petition the court after notice to all parties for an order terminating
the administration on the ground that the funds available to the administrator are insufficient to
effect the prompt remedy of the violations. If the court finds that the petition is proved, the court
shall terminate the administration and proceed to judgment under section
504B.425, paragraph (e)
Subd. 6. Residential building repairs and services.
The administrator must first contract
and pay for residential building repairs and services necessary to keep the residential building
habitable before other expenses may be paid. If sufficient funds are not available for paying other
expenses, such as tax and mortgage payments, after paying for necessary repairs and services, the
landlord is responsible for the other expenses.
Subd. 7. Administrator's liability.
The administrator may not be held personally liable in
the performance of duties under this section except for misfeasance, malfeasance, or nonfeasance
Subd. 8. Dwelling's economic viability.
In considering whether to grant the administrator
funds under subdivision 4, the court must consider factors relating to the long-term economic
viability of the dwelling, including:
(1) the causes leading to the appointment of an administrator;
(2) the repairs necessary to bring the property into code compliance;
(3) the market value of the property; and
(4) whether present and future rents will be sufficient to cover the cost of repairs or
History: 1999 c 199 art 1 s 68; 2004 c 275 s 3