Agreement on Tenant Bill of Rights set to be voted on by House and Senate … then it’s off to the Governor!

by Michael Dahl, Public Policy Director on 4 May 2010

HOME Line in Action

The conference committee agreement on the Minnesota Tenant Bill of Rights has been reached!  The House and Senate could give their final approval this week … then it’s off to the Governor.

Visit this link for the Conference Committee Report (actual language).  The following bullet points summarize the agreement:

  • Late Fees: Effective January 1, 2011, late fees will be capped at 8% of rent.  This provision will do away with the most egregious late fees and outlaw daily late fees amassing beyond the 8% cap.  Subsidized housing that has conflicting federal rules regarding late fees will follow the federal rules.
  • Receipt for Rent: Effective August 1, 2010, tenants will be given a receipt if they pay their rent with cash.  Those paying by money order may use the receipts as proof of rent-paid unless the landlord proves otherwise.
  • Attorney Fees: Effective August 1, 2011 for new leases and August 1, 2012 for renewed leases, if a lease entitles a landlord to have its attorney fees paid when it wins a certain kind of case, tenants will be entitled to the attorney fees in the same kind of case.
  • Limiting Tenant Screening Fees: Effective August 1, 2010, a fair and consistent process will be used when screening applicants for an apartment.  Prospective tenants will also be informed about how their application will be judged.  Upon becoming law, landlords will be required to:
        • provide the criteria upon which they will screen applications (that will keep many tenants from paying an application fee for an apartment they have no chance of getting);
        • process applications for an apartment in sequential order (so that if a tenant’s application fee is cashed, the application will be examined on its own merits);
        • return application fees if they reject a prospective tenant for reasons other than the criteria they provided; and,
        • For Tenants: A prospective tenant who provides materially false information on the application, or omits material information requested is liable to the landlord for damages, plus a civil penalty of up to $500, civil court filing costs, and reasonable attorney fees.
      • Penalty for Improper Division of Utility Costs: Effective on August, 1 2010, if a landlord does not follow the entire law on division of utility charges, s/he is liable to the tenant for triple the damages or $500, whichever is greater.
      • Bad Faith Retention of Security Deposits: Effective on August 1, 2010, the penalty for a landlord not returning the proper amount of a security deposit in bad faith will increase from “not to exceed $200″ to “not to exceed $500.”
      • Renters Living in Foreclosed Property: Effective August 1, 2010, state law will be brought into conformance with federal law.  Tenants living in foreclosed property have the right to the term of their lease or 90 days beyond the redemption period, whichever is longer.
      • This section was not part of the Tenant Bill of Rights campaign, but was included as a result of negotiations with the Minnesota Multi Housing Association and Housing Redevelopment AuthoritiesAbandoned Property: Effective August 1, 2010, a landlord must hold on to property left behind by a tenant for 28 days (reduced from 60 days).  If a landlord illegally disposes of a tenant’s property, s/he is liable to the tenant for the greater of triple the damages or $1000.  Also, tenants statewide can bring motions for return of property in their evict case, not just in Ramsey and Hennepin Counties.
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