Purpose of the Bill

The purpose of this bill is to give tenants in Minnesota the option to have their on-time rent payments reported to credit bureaus, which can help them build or improve their credit scores. The bill also seeks to financially support landlords to implement this credit reporting service through grants.

Main Provisions

• Credit Reporting Option: Landlords with more than ten residential units are required to provide tenants the option to have their on-time monthly rent payments reported to credit bureaus. This process is facilitated through a rent payment reporting service.
• Tenant Participation: Tenants are not mandated to participate; it is an optional service. There are no fees charged to tenants for this service, and they can choose to opt-out at any time.
• Landlord Obligations: Upon a tenant's request to opt out, landlords must cease inclusion in the rent payment reporting within 30 days.

Funding for Implementation

• The bill appropriates $500,000 annually for fiscal years 2026 and 2027 from the general fund to provide grants to landlords. These grants cover costs associated with rent payment reporting technologies, services, and administrative needs.
• Priority for receiving grants is given to landlords with tenants whose income is at or below 50% of the area median income.

Data Collection and Reporting

• The Minnesota Housing Finance Agency is tasked with collecting data from participating landlords and analyzing the effectiveness and participation in the rent-reporting program.
• A report detailing findings must be submitted by March 1, 2027, to relevant legislative committees focused on housing.

Significant Changes

• This bill introduces a new requirement for certain landlords to offer credit reporting of rent payments, which was not previously mandated in Minnesota law.

Relevant Terms

• Credit reporting
• Rent payment reporting
• Landlord grants
• Tenant opt-out
• Minnesota Housing Finance Agency
• On-time rent payments
• Area median income