CITY OF MINNEAPOLIS Renter Relocation Assistance Economic Development & Regulatory Services Committee December 4, 2019 1
Rationale + Findings • Revocations occur when a dwelling fails to comply with licensing standards, typically due to substandard building conditions with multiple serious and unresolved violations. • When a property owner is held accountable for the condition of their building, renters can get unexpectedly displaced through no fault of their own. • To obtain new housing, renters require time and unanticipated funds, especially in Minneapolis’s tight rental market. 2
Ordinance • When a rental license has been revoked, denied, or canceled, the landlord is responsible for relocation assistance to renters equal to 3 months of rent. • Assistance serves as an additional safety net for displaced renters. • Benefits are given per unit and are not contingent upon having a lease. • The ordinance applies only to situations where a renter is forced to vacate due to conditions that were within the property owner’s or manager’s control. 3
Policy development process • Early stakeholder engagement and input informed ordinance creation. • Engagement meetings took place with: • Property owners/managers • Nonprofit organizations working with renters • Rental Properties Advisory Committee • Housing Advisory Committee • Inspections staff • Additionally, stakeholders were asked for feedback on draft ordinance language and the majority of suggestions were incorporated into the final ordinance. 4
Renter Relocation Assistance Ordinance Rental License Action Payment Options Revocation Appeals Process Lasts 6 - 8 weeks + REVOCATION Send revocation letter to If revocation is upheld, If in rent escrow , court will property owner + hang property owner receives final decide if renter gets rent notice on the building. revocation notice and renter escrow back. If escrow gets order to vacate. Inform renter they can denied to renter, property enter into rent escrow owner required to pay. *Relocation assistance equal to with LegalAid, ideally at 3-months’ rent due within 7 the beginning of the days after order to vacate or revocation process. final revocation notice, whichever is soonest. If no rent escrow , property owner pays relocation CONDEMNATION assistance. Send letter with intent to condemn to property owner hang + notice on the building + inform renter about the ordinance. If property owner does not pay , City pays utilizing revolving fund and assesses RENTAL LICENSE DENIAL property. If renters already living at property, send letter discussing ordinance. 5
Implementation + Enforcement • Before considering revocation, cancelation, or denial, Regulatory Services employs housing tools that aim to preserve renter stability including, but not limited to, administrative citations, voluntary conditions on rental licenses, Tenant Remedies Action (TRA’s), Emergency Tenant Remedies Actions (eTRA’s), the Emergency Repair Board. • At the start of a revocation or after a denial or cancelation, City will send letter to both renter and property owner informing them of ordinance requirements. • Enforcement will be done on a complaint basis. • Over the next 6 months, staff will examine additional code changes and solidify internal policies. • The ordinance is effective June 1, 2020. 6
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