6.27 - Protection of Tenants in Affordable Housing § 6.27
Section 6.27: Protection of Tenants in
Affordable Housing
Subdivision 1. Definitions
The following definitions apply in this Section of this Code. References to "Section"
are unless otherwise specified, references to this Section of this Code. Defined terms
remain defined terms, whether or not capitalized.
A. Affordable Housing Building: A multi-family rental housing building having
three or more housing units, where at least 15 percent of the units rent for an
amount that is affordable to households at or below 60 percent of area median
income, as median income was most recently determined by the United States
Department of Housing and Urban Development for the Minneapolis-St. Paul-
Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted
for household size and number of bedrooms.
B. Affordable Housing Unit: A rental unit in an affordable housing building that
rents for an amount that is affordable to households at or below 60 percent of
area median income, as median income was most recently determined by the
United States Department of Housing and Urban Development for the
Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan
Statistical Area, as adjusted for household size and number of bedrooms.
C. Cause: The tenant or a member of the tenant's household materially violated
a term of the lease or violated a provision of City Code Section 6.29,
Subdivision 4(I) Crime Free/Drug Free Lease Addendum Requirements.
D. Tenant Protection Period: The period that commences on the date when a
real estate closing transfers ownership of an affordable housing building and
ends on the last day of the third calendar month following the month in which
written notice of the transfer is sent to each affordable housing unit tenant
pursuant to Subdivision 3 of this Section.
Subdivision 2. Relocation Assistance
A. If, during the tenant protection period, the new owner of an affordable housing
building terminates or refuses to renew any affordable housing unit tenant's
rental agreement without cause, then upon terminating or refusing to renew
the tenant's lease, the new owner shall pay to the tenant, as relocation
assistance, no later than the day upon which the tenant vacates the unit, a
payment in an amount equal to the Federal Highway Administration Fixed
Payment for Moving Expenses for the state of Minnesota as published in the
Fixed Residential Moving Cost Schedule pursuant to section 202(b) of the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970, plus two times the rental housing affordability limit at 60% Area Median
Income for the Twin Cities metro area as published by the Metropolitan
Council. The relocation benefit shall be adjusted annually based on updated
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§ 6.27
figures from the Federal Highway Administration and the Metropolitan Council,
and the adjusted relocation benefit shall take effect on January 1 of each
calendar year. The amounts in effect for the 2018 calendar year are as
follows:
Studio/Single One Two Three+
Room Bedroom Bedroom Bedrooms
Moving Expenses $725 $925 $1,125 $1,325
Rent at 60% AMI $991 $1,062 $1,273 $1,471
Total Relocation
Assistance $2,707 $3,059 $3,671 $4,267
B. If, during the tenant protection period, a rent increase goes into effect on any
affordable housing unit, or the new owner of an affordable housing building
raises any affordable housing unit tenant's rent, or the new owner rescreens
an existing affordable housing unit tenant, and the tenant gives written notice
to the new owner to terminate the rental agreement, the new owner shall,
within 30 days of receiving tenant's written notice of termination of the rental
agreement, pay to the tenant as relocation assistance, a payment in an
amount equal to the Federal Highway Administration Fixed Payment for
Moving Expenses for the state of Minnesota as published in the Fixed
Residential Moving Cost Schedule pursuant to section 202(b) of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, plus
two times the rental housing affordability limit at 60% Area Median Income for
the Twin Cities metro area as published by the Metropolitan Council. The
relocation benefit shall be adjusted annually based on updated figures from
the Federal Highway Administration and the Metropolitan Council, and the
adjusted relocation benefit shall take effect on January 1 of each calendar
year. The amounts in effect for the 2018 calendar year are as follows:
Studio/Single One Two Three+
Room Bedroom Bedroom Bedrooms
Moving Expenses $725 $925 $1,125 $1,325
Rent at 60% AMI $991 $1,062 $1,273 $1,471
Total Relocation
Assistance $2,707 $3,059 $3,671 $4,267
Subdivision 3. Notice
A. Whenever ownership of an affordable housing building shall transfer, the new
owner shall, within 30 days of the date on which a real estate closing transfers
ownership of the affordable housing building, give written notice to each
affordable housing unit tenant of the building that the property is under new
ownership stating:
1. The name, mailing address, and telephone number of the new owner.
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§ 6.27
2. This Section of City Code provides for a tenant protection period for
affordable housing unit tenants. Under this Section, affordable housing unit
tenants may be entitled to relocation assistance from the new owner if the
new owner terminates or does not renew the tenant's rental agreement
without cause within the tenant protection period. Affordable housing unit
tenants may also be entitled to relocation assistance from the new owner if
the owner raises the rent or initiates a tenant rescreening process within
the tenant protection period and the tenant terminates their rental
agreement.
3. Whether there will be any rent increase within the tenant protection period
with the amount of the rent increase and the date the rent increase will
take effect.
4. Whether the new owner will require existing affordable housing unit
tenants to be re-screened to determine compliance with existing or
modified residency screening criteria during the tenant protection period
and if so, a copy of the screening criteria.
5. Whether the new owner will terminate or not renew rental agreements
without cause during the tenant protection period and if so, notice to the
affected affordable housing unit tenants whose rental agreements will
terminate, including the date the rental agreements will terminate.
6. Whether the new owner intends to increase rent, require existing
affordable housing unit tenants to be rescreened to determine compliance
with existing or modified residency screening criteria, or terminate or not
renew affordable housing unit rental agreements without cause on the day
immediately following the tenant protection period.
B. The new owner shall provide a copy of the notice required by this part to the
City at the same time notice is provided to the tenants. The new owner of an
affordable housing building shall not terminate or not renew a tenant's rental
agreement without cause, raise rent, or rescreen existing tenants during the
tenant protection period without giving the notice required by this part.
Subdivision 4. Penalty
A. A violation of Subdivision 2 of this Section is an administrative offense that
may be subject to an administrative citation and civil penalties as provided in
City Code Section 2.90. Notwithstanding any provision of City Code Section
2.90, Subdivision 3(E), the penalty for a violation of Subdivision 2 of this
Section shall be the sum of the applicable amount of relocation assistance
plus $500.
B. A violation of Subdivision 3 of this Section is an administrative offense that
may be subject to an administrative citation and civil penalties as provided in
City Code Section 2.90.
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§ 6.27
C. A violation of this ordinance as to each dwelling unit shall constitute a
separate offense.
Subdivision 5. Violation
Within 30 days after a person pays the penalty provided for in Subdivision 4(A) of
this Section to the City, the City shall pay to the displaced tenant of the affordable
housing unit for which the violation occurred an amount equal to the relocation
assistance provided for in Subdivision 2 of this Section.
Source: Ordinance No. 642, 2nd Series
Effective Date: 8-16-18
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