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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 Golden Valley City Code Page 1 of 4 § 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. Golden Valley City Code Page 2 of 4 § 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. Golden Valley City Code Page 3 of 4 § 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 Golden Valley City Code Page 4 of 4