Purpose of the Bill

The bill is designed to protect tenant rights in situations where landlords have received government assistance for renovations of rental units. The aim is to ensure that tenants can continue to live in their current residences without fear of eviction or lease nonrenewal when such financial aid is used.

Main Provisions

• Nonrenewal Prohibition: Landlords who receive federal, state, or local government funding to renovate a rental unit must allow current tenants to continue residing in the unit. This includes funding through housing redevelopment authorities or nonprofits, especially when renovations are made for health, safety, or disability accommodations.

• Voidance of Violations: If a landlord attempts to nonrenew a lease in violation of this provision, the nonrenewal is considered void. The landlord will be responsible for any costs the tenant incurs as a result, including attorney fees and other expenses.

• Protection Against Constructive Nonrenewal: If a court determines a rent increase to be unreasonable or disproportionate, it can be seen as a form of nonrenewal. This would be a violation under the bill, enforcing the same tenant protection.

• Eviction Pursuit Rights: The bill clarifies that landlords are still permitted to pursue eviction actions if they are within the legal bounds specified in other parts of the housing law.

Significant Changes to Existing Law

The bill introduces new provisions in Minnesota Statutes chapter 504B that directly impact how landlords can interact with tenants when they have received financial assistance for unit renovations. It emphasizes tenant stability and prevents landlords from using renovation funding as a pretext for upgrading tenants unfairly.

Relevant Terms

• Tenant rights
• Housing redevelopment authority
• Lease nonrenewal
• Constructive nonrenewal
• Government assistance for renovations