Minnesota 2023-2024 Regular Session

Minnesota House Bill HF314 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to civil law; requiring court notice to persons holding liens in tenant remedy
3	3	1.3 actions; amending attorney fee award limitations and lien priority in tenant remedy
4	4	1.4 actions; repealing certain requirements in tenant remedy actions for appointment
5	5	1.5 of administrators; amending Minnesota Statutes 2022, sections 504B.401, by
6	6	1.6 adding a subdivision; 504B.425; 504B.445, subdivisions 3, 4, by adding a
7	7	1.7 subdivision; repealing Minnesota Statutes 2022, section 504B.445, subdivision 8.
8	8	1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
9	9	1.9 Section 1. Minnesota Statutes 2022, section 504B.401, is amended by adding a subdivision
10	10	1.10to read:
11	11	1.11 Subd. 3.Lien holder notification.The petitioner shall provide written notice to all lien
12	12	1.12holders of:
13	13	1.13 (1) a copy of the complaint;
14	14	1.14 (2) the time and place of the hearing; and
15	15	1.15 (3) information relative to section 504B.445, subdivision 4.
16	16	1.16Lien holders are not required to be present or to participate in the hearing.
17	17	1.17 Sec. 2. Minnesota Statutes 2022, section 504B.425, is amended to read:
18	18	1.18 504B.425 JUDGMENT.
19	19	1.19 (a) If the court finds that the complaint in section 504B.395 has been proved, it may, in
20	20	1.20its discretion, take any of the actions described in paragraphs (b) to (g), either alone or in
21	21	1.21combination.
22	22	1Sec. 2.
23	23	REVISOR JSK/HL 23-0081712/07/22
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 314
29	29	NINETY-THIRD SESSION
30	30	Authored by Her, Noor, Norris, Gomez, Agbaje and others01/11/2023
31	31	The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law 2.1 (b) The court may order the landlord to remedy the violation or violations found by the
32	32	2.2court to exist if the court is satisfied that corrective action will be undertaken promptly.
33	33	2.3 (c) The court may order the residential tenant to remedy the violation or violations found
34	34	2.4by the court to exist and deduct the cost from the rent subject to the terms as the court
35	35	2.5determines to be just.
36	36	2.6 (d) The court may appoint an administrator with powers described in section 504B.445,
37	37	2.7and:
38	38	2.8 (1) direct that rents due:
39	39	2.9 (i) on and from the day of entry of judgment, in the case of petitioning residential tenants
40	40	2.10or housing-related neighborhood organizations; and
41	41	2.11 (ii) on and from the day of service of the judgment on all other residential and commercial
42	42	2.12tenants of the residential building, if any,
43	43	2.13shall be deposited with the administrator appointed by the court; and
44	44	2.14 (2) direct that the administrator use the rents collected to remedy the violations found
45	45	2.15to exist by the court by paying the debt service, taxes, and insurance, and providing the
46	46	2.16services necessary to the ordinary operation and maintenance of the residential building
47	47	2.17which the landlord is obligated to provide but fails or refuses to provide.; and
48	48	2.18 (3) notify all lien holders of the appointment.
49	49	2.19 (e) The court may find the extent to which any uncorrected violations impair the
50	50	2.20residential tenants' use and enjoyment of the property contracted for and order the rent
51	51	2.21abated accordingly. If the court enters judgment under this paragraph, the parties shall be
52	52	2.22informed and the court shall determine the amount by which the rent is to be abated.
53	53	2.23 (f) After termination of administration, the court may continue the jurisdiction of the
54	54	2.24court over the residential building for a period of one year and order the landlord to maintain
55	55	2.25the residential building in compliance with all applicable state, county, and city health,
56	56	2.26safety, housing, building, fire prevention, and housing maintenance codes.
57	57	2.27 (g) The court may grant any other relief it deems just and proper, including a judgment
58	58	2.28against the landlord for reasonable attorney fees, not to exceed $500, in the case of a
59	59	2.29prevailing residential tenant or neighborhood organization. The $500 limitation does not
60	60	2.30apply to complaints that result in an administrator being appointed under section 504B.445,
61	61	2.31to awards made under section 549.211, or other specific statutory authority.
62	62	2Sec. 2.
63	63	REVISOR JSK/HL 23-0081712/07/22 3.1 Sec. 3. Minnesota Statutes 2022, section 504B.445, subdivision 3, is amended to read:
64	64	3.2 Subd. 3.Expenses.The court may allow a reasonable amount for the services of
65	65	3.3administrators and the expense of the administration from rent money. When the
66	66	3.4administration terminates, the court may enter judgment against the landlord in a reasonable
67	67	3.5amount for the services and expenses incurred by the administrator, including reasonable
68	68	3.6attorney fees.
69	69	3.7 Sec. 4. Minnesota Statutes 2022, section 504B.445, subdivision 4, is amended to read:
70	70	3.8 Subd. 4.Powers.The administrator may:
71	71	3.9 (1) collect rents from residential and commercial tenants, evict residential and commercial
72	72	3.10tenants for nonpayment of rent or other cause, enter into leases for vacant dwelling units,
73	73	3.11rent vacant commercial units with the consent of the landlord, and exercise other powers
74	74	3.12necessary and appropriate to carry out the purposes of sections 504B.381 and 504B.395 to
75	75	3.13504B.471;
76	76	3.14 (2) contract for the reasonable cost of materials, labor, and services including utility
77	77	3.15services provided by a third party necessary to remedy the violation or violations found by
78	78	3.16the court to exist and for the rehabilitation of the property to maintain safe and habitable
79	79	3.17conditions over the useful life of the property, and disburse money for these purposes from
80	80	3.18funds available for the purpose;
81	81	3.19 (3) provide services to the residential tenants that the landlord is obligated to provide
82	82	3.20but refuses or fails to provide, and pay for them from funds available for the purpose;
83	83	3.21 (4) petition the court, after notice to the parties, for an order allowing the administrator
84	84	3.22to encumber the property to secure funds, including but not limited to third-party financing,
85	85	3.23to the extent necessary to cover the costs described in clause (2), including reasonable fees
86	86	3.24for the administrator's services, and to pay for the costs from funds derived from the
87	87	3.25encumbrance; and
88	88	3.26 (5) petition the court, after notice to the parties, for an order allowing the administrator
89	89	3.27to receive funds made available for this purpose by the federal or state governing body or
90	90	3.28the municipality to the extent necessary to cover the costs described in clause (2) and pay
91	91	3.29for them from funds derived from this source.
92	92	3.30 The municipality shall recover disbursements under clause (5) by special assessment on
93	93	3.31the real estate affected, bearing interest at the rate determined by the municipality, but not
94	94	3.32to exceed the rate established for finance charges for open-end credit sales under section
95	95	3.33334.16, subdivision 1, clause (b). The assessment, interest, and any penalties shall be
96	96	3Sec. 4.
97	97	REVISOR JSK/HL 23-0081712/07/22 4.1collected as are special assessments made for other purposes under state statute or municipal
98	98	4.2charter.
99	99	4.3 Sec. 5. Minnesota Statutes 2022, section 504B.445, is amended by adding a subdivision
100	100	4.4to read:
101	101	4.5 Subd. 4a.Lien priority.A lien resulting from any encumbrance allowed by the court
102	102	4.6pursuant to the request of the administrator under subdivision 4, clause (4), is prior to all
103	103	4.7other liens and encumbrances on the property.
104	104	4.8 Sec. 6. REPEALER.
105	105	4.9 Minnesota Statutes 2022, section 504B.445, subdivision 8, is repealed.
106	106	4Sec. 6.
107	107	REVISOR JSK/HL 23-0081712/07/22 504B.445 ADMINISTRATOR.
108	108	Subd. 8.Dwelling's economic viability.In considering whether to grant the administrator funds
109	109	under subdivision 4, the court must consider factors relating to the long-term economic viability
110	110	of the dwelling, including:
111	111	(1) the causes leading to the appointment of an administrator;
112	112	(2) the repairs necessary to bring the property into code compliance;
113	113	(3) the market value of the property; and
114	114	(4) whether present and future rents will be sufficient to cover the cost of repairs or rehabilitation.
115	115	1R
116	116	APPENDIX
117	117	Repealed Minnesota Statutes: 23-00817