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HomeMy WebLinkAboutEDA AGN 05-15-01CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 [e,.~ Visit Our Website at: www. ci. columbia-heights.mn, us ECONOMIC DEVELOPMENT AUTHORITY May 15, 2001 EDA COMMISSIONMERS Robert W. Ruettimann Patricia Jindra Marlaine Szurek Julienne Wyckoff Gary L. Petcrson Bruce Nawrocki Bobby Williams The following is the Agenda for the regular meeting of the Columbia Heights Economic Development Authority (EDA) to be held at 6:30 p.m. on Tuesday, May 15, 2001, in the Parkview Villa Community Room B, 965 40th Avenue N.E., Columbia Heights, Minnesota. The EDA does not discriminate on the basis of disability in the admission or access to, or Ixeatment or employment in, its accommodation will be provided to allow individuals with disabilities to participate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3669 to make arrangements (TDD 706-2806) for deaf or hearing impaired only. I CALL TO ORDER/ROLL CALL. PLEDGE OF ALLEGIANCE. ADDITIONS/DELETIONS TO MEETING AGENDA. CONSENT AGENDA. (These items are considered to be routine by the EDA Board of Commissioners and will be enacted as part of the Consent Agenda by one motion.) A. Move to adopt the consent agenda items as listed below: 1) Approval of Minutes. a. Regular Meeting of April 17, 2001. 2) Financial Report and Payment of Bills. a. Financial Statement for April, 2001. b. Payment of Bills for April, 2001. MOTION: Move to approve Resolution 2001-08, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for April, 2001 and approving payment of bills for the month of April, 2001. REPORT OF MANAGEMENT COMPANY. A. Anita Kottsick, Parkview Villa Public Housing Administrator. CITIZEN FORUM TO ADDRESS EDA ON MATTERS NOT ON AGENDA. (At this time, citizens have an opportunity to discuss with the EDA items not on the regular agenda. The citizen is requested to limit their comments to five minutes. Please note, the public may address the EDA regarding specific agenda items at the time the item is being discussed.) RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS -NONE. PUBLIC HEARINGS 1) Consider Sale of 3913 Polk Street MOTION: Move to close the public hearing. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER MOTION: Move to approve the sale of property at 3913 Polk Street NE, PIN #36-30-24-34- 0105 to Habitat for Humanity; and furthermore, to authorize the President and Executive Director to enter into a development agreement for the same. 10. ITEMS FOR CONSIDERATION. A. Other Resolutions. B. Bid Consideration. Other Business. 1) Crest View Management Contract Renewal MOTION: Move to approve the one year extension of the Management and Maintenance Services Agreement to June of 2002 with Crest View Corporation, based on their proposal dated May 7, 2001; and furthermore, to authorize the President and Executive Director to enter into an Agreement for the same. ADMINISTRATIVE REPORTS. A. Presidents Report- Bob Ruettimann. Report of the Acting Deputy Executive Director - Randy Schumacher. 1) 2) 3) 4) 5) Community Development Department Staffing Update Parkview Villa PA System Rewiring Status EDA Loan Portfolio and Housing Assistance Update - Mark Nagel City/EDA/HRA Owned Property Update EDA Owned Parking Ramp Update Report of the Executive Director - Walt Feb_st. Committee/Other Reports-None. Attachments. 1) Tenant-Landlord Law and Related Laws; and Registration and Disclosure Requirements for Residential Settings. 11. MEETINGS: 12. A. The next Regular EDA meeting is scheduled for 6:30 p.m., Tuesday, June 19, 2001. ADJOURNMENT. Walter R. Fehst, Executive Director H:\edaAgenda2001~5-15-2001 mission of the Columbia 21eights Bconornic ~)evelopment Authotity is to provide financial and technical assistance dresources to residentia~ commercia~ and industrial interests to promote Itealtlg safety, welfare, economic development i andredevelopment. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF APRIL 17, 2001 CALL TO ORDER- The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:45 p.m., Tuesday, April 17, 2001, in the Parkview Villa Community Room B, 965 40~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Robert Ruettimann, Patricia Jindra, Marlaine Szurek, Gary Peterson, Julienne Wyckoff, Bruce Nawrocki, and Bobby Williams Staff Present: Walt Fehst, Executive Director Randy Schumacher, Acting Community Development Director Cher Bakken, Community Development Secretary Jim Hoeft, City Attorney Shirley Barnes, CEO, Crest View Management CONSENT AGENDA A. Adopt the consent agenda items as listed below. 1) Approval of Minutes - regular meeting of March 20, 2001 Move to adopt the minutes of the March 20, 2001 regular meeting as presented in writing. 2) Financial Report and Payment of Bills a. Financial Statement -March, 2001 b. Payment of Bills -March, 2001 Move to approve Resolution 2001-07, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for March 2001, and approving payment of bills for March 2001. MOTION by Peterson, second by Jindra, to adopt the consent agenda items as listed. All ayes. MOTION CARRIED. REPORT OF Tl~E MANAGEMENT COMPANY In Anita Kottsick's absence, Shirley Barnes gave the Management Report. On April 12 and 16th meetings were held to show residents how to use the new security cards. New mats were ordered for the front entrance and staff will be painting and installing new signage. There was a leak within the bathroom walls of units 910 and 810. Maintenance is scheduled to repair and paint the units. An outside services was hired to repair radiation leaks in apartments 604 and 702, and replace the zone valve in apartment 419. Annual inspections for the North building are scheduled for April 11 and 12'~. All of the upcoming twelve resident moves have people waiting to fill the vacancies. Ruettimann asked Barnes to get clarification to him before the next meeting of why the management report stated 9 resident moves and her verbal report stated 12 units. RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS Columbia Heights YFW Commander, Bruce Nawrocki presented an American Flag to Presiden Ruettimann for the ED~L/HIM meetings hem at City Hall in Conference Room 1. Ruettimann requested Bakken send a thank you note on behalf of the EDA. APPROVE VEDI PROPOSAL FOR Tlt~ VAN BUREN PARKING RAMP PHYSICAL CONDITION AUDIT Ruettimann talked to Mr. Vedi to clarify three questions that the Board had about the proposal; 1) the cores being moved- are core plugs to test for deterioration, 2) the slab removal- would be due to deterioration which the City would have to pay for, and 3) on-going maintenance- Vedi would prepare an on-going list of issues to check on annually.. April 17, 2001 Page 2 of 5 Ruettimann also spoke to l/'edi about doing an audit at the City owned parking ramp attached to the bank building. A physical audit was done on this structure in 1988, and repairs were made. After reading the contract with Gordon Awsumb for the ramp, Ruettiemann felt that the City Attorney should review it before we consider the audit by Vedi. MOTION by Nawrocki, second by Williams, to approve Vedi Associates, Inc. proposal to perform Physical Condition Audit on the City owned Columbia Park Medical Group Parking Ramp located at 4011 Van Buren Street in the amount of $6,710, and subject to the Executive Director and President negotiating an agreement favorable to the City for the additional Audit of the Bank Building Parking Ramp located at 950 40a Avenue N.E. All ayes. MOTION CARRIED. SET PUBLIC I:ll*~ARING DATE FOR Tl:ll*~ SALE OF 3913 POLK STREET. Schumacher explained that back in 1998 the City applied for and received $70,000 in HOME grant funcls to acquire two substandard homes in the community for redevelopment purposes. Staff recommended that the Board set a Public Hearing date of May 15, 2001 at 7:00p. m. at Parkview Villa for the purpose of receiving public input on the sale of 3913 Polk Street NE to Habitat for Humanity. Many issues were discussed about Habit for Humanity such as construction quality, qualifying families that become owners of the homes, the City Council Agreement from 1998, requirements of the agreement, and how many Habit homes do we have and want in Columbia Heights. ,4 main concern was "does the City have to sell 4401 Quincy and 3913 Polk to Habitat as a package deal? Schumacher explained this was part of the agreement with Habitat. Fehst explained that if the City 'chose to not buy 4401 Quincy with the intent to sell it to Habitat, the City would have to find another property from the scattered site list to designate for redevelopment. MOTION by Nawrocki, second by Wyckoff, to table the Public Hearing. Upon Vote: Jindra-nay, Peterson- nay, Szurek-nay, Nawrocki-aye, Williams-nay, Wyckoff-nay. MOTION FAIl.ED. 5 nay, 1 aye. Wyckoff expressed the following concerns about the Quincy property; 1) the City Building Official did not use a checklist or do a thorough inspection of the home, and the second inspector (that works for Gordon Awsumb) stated the home was not in that bad of condition; 2) the City could build a one-story home on the lot; and 3)families that normally take possession of the Habitat Homes have small children. With the property being directly across from the shopping mall and a busy street there would need to be fencing erected. MOTION by Williams, second by Peterson, to set a Public Hearing date of May 15, 2001, at 7:00 p.m. at Parkv/ew Villa for the purpose of receiving public input on the sale of 3913 Polk Street N.E. to Habitat for Humanity. Ruettimann requested staff provide Nawrocki with a copy of the letter of intent made with Habitat for Humanity, which stated how many Habitat homes we would allow in Columbia Heights. SUBSITUTE MOTION by Nawrocki, second by Wyckoff, to direct staff to solicit bids for the property at 3915 Polk Street. Upon Vote: Jindra- abstained, Peterson- nay, Nawrocki- aye, Szurek- nay, Williams- nay, Wyckoff- aye. MOTION FAILED. 3 nay, 2 aye, 1 abstention. Peterson requested staff provide a list to City Council of what properties the City/EDA owns, and indicate which are buildable. Upon Vote of the original Public Hearing motion- Jindra-aye, Peterson-aye, Szurek-aye, Nawrocki-nay, Williams-aye, Wyckoff-nay. MOTION CARRIED. 4 ayes, 1 nay. April 17, 2001 Page 3 of 5 The Commissioners requested staff publish the Public Hearing announcement in the Focus Newspaper and on Cable TV. APPROVE AMENDMENT TO METRO ASSEMBLIES CONTRACT-BARNICK TIF Fehst stated that City staff, our legal counsel, and financial advisors have reviewed the status of our pay-as- you-go tax increment financing districts. Staff provided background information and suggested amendments to the Contract for Private Development, as well as letters from Dan Greensweig and the TIF Cashflow analysis for review. There is a shortfall in the amount of TIF payments available to pay Metro Assemblies due to the compression in the tax rates, an error on the part of Metro Assemblies consultants at the time that the TIF district was established, Anoka County errors in establishing the proper net tax capacity, and previous years overpayments made by the City to Metro Assemblies. Mr. Barnick is requesting, through his legal counsel, Bill 0 'Brien, that the City absorb the projected future shortfall by not recovering the full $60,000 the City was owed for property it soil to the HRA for later transfer to the Barnick's. They are suggesting that a property tax abatement be established which wouil abate the City's share of taxes on the Barnick 's property for a period of uP to ten years after the TIF district expires. The City Council has agreed to amend the Contract to extend the term of the contract from 2011 to 2019, thus allowing the City to be fully repaid for land acquisition costs from TIF proceeds and approximately $39,994 to be paid to Metro Assemblies based on the January 2000 Cashflow estimates. City Council took action to approve this amendment on December 27, 2000. Staff recommended the Board approve the amendment. MOTION by Peterson, second by Nawrocki, to approve the proposed First Amendment to the Contract for Private Development between the EDA, City of Columbia Heights, Robert C. Barnick and Priscilla A. Bamick dba Metro Assemblies; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same subject to modifications that do not alter the substance of the transactions and are approved by the officials to execute these documents, provided that execution of the documents by such officials is conclusive evidence of their approval. All ayes. MOTION CARRIE~D. APPROVE SUBORDINATION AGREEMENT Ruettimann stated this agreement was discussed in detail by the City Council at their special meeting just prior to the EDA meeting. John Utley, Kennedy & Graven, Chartered explained the draft agreement refers to the Planned Unit Development Agreement. This revised agreement was received in their office today. Utley will have Dan Greensweig review the document prior to signing. Hoefi stated that he reviewed the document, consulted with Real Estate Equities to make some changes in the best interest of the City, and therefore, recommended that the Board approve the document. MOTION by Wyckoff, second by Szurek, to approve the Subordination Agreement by and among the U.S. Bank National Association, Columbia Heights Economic Development Authority, and the City of Columbia Heights and its execution, and direct the authorized officials to execute the same, subject to modifications that do not alter the substance of the agreement and are approved by such officials, provided that execution of the agreement by such officials is conclusive evidence of their approval. Upon Vote: Nawrocki- nay, Williams- aye, Szurek- aye, Peterson- aye, Wyckoff- aye, Jindra- aye. MOTION CARRIED. 5 ayes, 1 nay. APPROVE SECURITY CARD POLICY AND PROCEDURE Schumacher stated the Board approved the proposed Security System with Trans-Alarm for Parkview Villa at a previous meeting. Policies and Procedures have been created, as requested by the EDA, for issuing security cards, and will be implemented upon approval and installation of the system. Nawrocki stated he was currently working with someone that has the same system in place and they are having problems with the system when there is a power failure. He asked what steps have been made to prevent this.from happening at Parkview Villa. Schumacher stated that staff has already talked with Trans- Alarm about adding a 5 minute delay to the proposed system for Parkview Villa. April 17, 2001 · Page 4 of 5 MOTION by Williams, seconded by Jindra to approve the Security Card Policy and Procedures, Residents Security Card Form and the Additional Security Card Registration Form for Parkview Villa North and South Senior Housing Units; and furthermore, to direct staff to implement the policy and forms when the security system is in place. All ayes. MOTION CARRIED. APPROVE THE DISCLOSURE OF INFORMATION ON LEAD BASE PAINT Schumacher explained that the Lead Based Paint issue was discussed at last months EDA meeting. Staff reviewed a recommended format to be added to the Parkview Villa lease. Kottsick has obtained the documents and has submitted them for Board approval. MOTION by Williams, seconded by Wyckoff, to approve the Disclosure of Information on Lead Based Paint and Lead Based Paint Hazards as attachment F. #6 to the Lease for Parloriew Villa North, South and Tyler Street Senior Public Housing Units; and furthermore, to direct staff to implement the disclosure immediately. All ayes. MOTION CARRIED. APPROVE ONE STRIKE PROVISION-LEASE Schumacher explained that the One Strike Provision proposed rule deals with eviction for Drug Abuse and other Criminal activity, as published July 23, 1999 in the Federal Register. This document is to be used as a guide when implementing evictionpoliciesfor crimeprevention and enforcement. Staffrecommended that the provision be approved and put into place immediately at Parkview Villa. Ruettimann stated that this should be put into the lease as a separate addendum or it would be overlooked. MOTION by Peterson, second by Williams to approve a One Strike Provision as attachment F.#5 to the Lease and Admission and Continued Occupancy Policies for Parkview Villa North, South, and Tyler Street Senior Public Housing Units, with the revision that this be put into the Lease as a separate addendum; and furthermore, to direct staff to implement the provision immediately. All ayes. MOTION CARRIED. Renie SuJka, Unit 104, asked if this wouM apply to everyone currently living in the building or new residents. Barnes stated that everyone will be required to sign the lease amendment. Nawrocki had questions about the Parkview Villa Lease. Barnes clarified as many questions as possible without having the lease in hand. Barnes will provide Nawrocki with a copy of the current lease agreement. UPDATE STATUS OF BREAKDOWN ON 912 HOURS ON ~ HUD PHAS FORM Ruettimann explained that Kottsick is working on this report and will provide the information in the next few months. This report takes a large amount of time to prepare. LEAD BASE TRAINING FOR CITY INSPECTOR Ruettimann checked on training courses available for lead base training but has not received a good response. The Lead Base gun runs $8,000 to $10,000 each and he suggested we purchase the gun with another City on a shared program. He will check further into this and report back next month. REPORT OF ~ ACTING DEPUTY EXECUTIVE DIRECTOR UPDATE ON PARKVIEW VILLA PA SYSTEM Schumacher reported that in the past the PA System was connected to the Fire Alarm System, therefore, the Fire Department has requested Parkview Villa not use the system. Staff will contact the Fire Chief regarding rewiring the system to separate the fire alarm system from the public address system. April 17, 2001 Page 5 of 5 UPDATE OF ACQUIRED CDBG I~NDS Schumacher stated that on March 27, 2001 the Anoka County HRA Board of Trustees met to discuss recommendations, for funding levels, of the Community Development Block Grant Program. The application submitted by the City of Columbia Heights in the amount of $300,000 was reduced to $175,000 for our redevelopment project on 4t7h and University. Schumacher has included the recommended level for funding of the public service budget in the packet distributed to them. The HRA Board of Trustees has recommended a County Wide Housing Rehab Program in the amount $585,000. Final authorization of the Community Development Block Grant Funding by the Anoka County Board is anticipated sometime in May. REDEVELOPMENT ADVISORY COMMITTEF~ REPORT Ruettimann stated that the Advisory Committee has begun on the Central Avenue redevelopment area. Schumacher contacted the property ovener for Burger King, Williams contacted the rental property owner, and Nawrocki contacted the owners of the Bowling Alley about the possibility of relocating in lieu of redevelopment on their site. Nawrocla' reported the Bowling Alley 's future plans were to have the sons take over the property and upgrade it but stated that they would be open to any ideas. Schumacher reported the owners of Burger King were willing to discuss any options of how they could become involved in the redevelopment project. Williams had to leave the meeting early so Peterson reported that Williams talked to the owners of the rental unit and they are very interested in any kind of redevelopment to their property. The Committee will continue to work on this and update the Board as necessary. RESIDENT COUNCIL MEETING MINUTES Jindra presented the Resident Council Meeting minutes of April 9, 2001 to the Board. There was no discussion. SET DATE FOR CAPITOL IMPROVEMENT ASSESSMENT COMMITTEE Ruettimann stated that around May 7, 2001, staff should have the auditors report back which would have the information necessary for reviewing each unit at Parkview Villa. Szurek who will steer the committee, projected they will begin sometime in June. MEETINGS The next EDA meeting is scheduled for 6:30 p.m., Tuesday, May 15, 2001 in Community Room B at Parkview Villa. MOTION by Szurek, seconded by Jindra, to adjourn the meeting at 8:56 p.m. All ayes. MOTION CARRIED. Respectfully submitted, Cheryl Bakken Recording Secretary H:\EDAminutes2001\4-17-2001 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 15, 2001 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Randy Schumacher BY: DATE: May 8, 2001 BACKGROUND: The bound Financial Report for April 1, 2001 Check Listing (green sheets), and drat~ Resolution 2001- 08 are attached for review. The enclosed Financial Report lists the Revenue Guideline (pink sheets), the Expenditure Guideline (yellow sheets), Expenditure Guideline with Detail (white sheets), and'Balance Sheet (blue sheets), for each fund and department. The report covers the activity in the calendar (fiscal) year fi:om January 1 through April 30, 2001. The Check History shows each fund with an expenditure history during the month of April, 2001. The total disbursements by fund are shown at the top of the listing. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2001-08, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement for April, 2001 and Payment of Bills for the month of April, 2001. EDA ACTION: I-I:~.Consen t',~AprilFinRep EDA RESOLUTION 2001-08 RESOLUTION OF THE COLUMBIA FIFIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR APRH,, 2001 AND PAYMENT OF BILLS FOR THE MONTH OF APRIL, 2001. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WltEREAS, the financial statement for the month of April, 2001 and the list of bills for the month of April, 2001 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW,Tmi'~REFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTI-IER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTglER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this M day of ,2001. MOTION BY: SECONDED BY: AYES: NAYS: Attest by: Robert Ruettimann, President Cheryl Bakken, Secretary H;~Resolufions2001 ~2001-08 Par. kview Hous,ng Complex.?` 965 N.E. 40th Avenue, Columbia Heights, MN 55421 ~4AY' 9 StOl (763) 706-3800 Fax (763) 788-3978 DATE: MAY 9, 2001 TO: RANDY SCHUMACHER, ACTING COMMUNITY DEV. DIRECTOR SHIRLEY BARNES, CHIEF EXECUTIVE OFFICER; CREST VIEW COMMISSIONERS; COLUMBIA HEIGHTS EDA '~ BOARD OF DIRECTORS; CREST VIEW FROM: ANITA KOTTSICK, HOUSING ADMINISTRATOR RE: APRIL/MAY MANAGEMENT REPORT FOR PARKVIEW VILLA & 4607 TYLER PHYSICAL PLANT: During the last few driving rain storms 3 apartments in the North building developed severe leaks around and above the window frames. The Maintenance Coordinator has called 4 contractors to evaluate were the leaks are originating. So far he has had response from one contractor. The contractor accessed each window and does not feel it is coming in from the frames but is originating from somewhere on the face of the building where there is a joint(s) which needs caulking. There is also 2 apartments in the South building that have significant leaks around the window frames. Last fall caulking wes done on the outside around the frames at joints, unfortunately they began leaking again when we have a driving rain. The contractor looked at these windows while he was out and believes that his original caulking he installed last fall is still intact. Once again he feels that the leaks may be occurring from above and the water is working its way down. Much of this work would probably require a cherry picker. I have asked for an estimate of cost from this contractor. Maintenance Coordinator has also contacted the original window installers for the South building and he will pull the file on the building and then come out an access what he believes is occurring and at that time will also look at the North windows. It must be established where exactly the leaks are originating from (which is the difficult part) before we can plan a corrective action. In the meantime I have spoken to each resident and informed them of the steps we will be taking to correct this problem and I will continue to communicate any new information I receive. Unfortunately, this leaking does create a significant inconvenience to these residents and increased damage each time we receive a driving rein. Owned by the EDA of the City of Columbia Heights Managed by Crest View Management Services Equal Housing Opportunity Agency Apartment 612 was scheduled for lease up May 1 but when staff went in to apartment for turnover a leak in the bathroom ceiling which ran down the wall was discovered. The leak is a drip from the anchor which holds up the sprinkler system. Maintenance Coordinator tried to find the origin of the water through several methods but was unable. A plumber was called out to find the leak and was unable to find the source. However, it was determined that since this apartment is an end apartment near the balcony the leak may be traveling through the spancrete. The balconies were looked at and most had a significant crack where the balcony floor and wall meet. Maintenance Coordinator has caulked all these cracks and the leak appeared to have stopped until we received another rain and then we had a slow drip again. A contractor has been called back to find where the water is originating. As soon as we can stop all water damage I will rent up apartment. Annual ParkviewVilla North apartment inspections completed and maintenance working on list of necessary repairs found. Most are minor repairs. I will provide the Capital Improvements committee with all findings from the inspection. Two apartments failed due to housekeeping safety issues and I am working with the residents to correct. ParkviewVilla South apartment inspections will be done in late May. The Parkview Villa North elevators both did not function properly the weekend of April 28. Maintenance was paged and the elevator company was out. The small elevator was resetting itself and the large elevator had a leveling problem. The small elevator was shut down and a part was ordered for the computer panel (a loose lead) and the large elevator brake was cleaned. On May I the part was replaced on the small elevator computer panel and a new spirator was put on the large elevator as the door had jammed on 1st floor that AM. Then while the elevator technician was repairing the north elevators the south elevator doors would not fully close on 2n~ floor. A bent jib was found on this elevator and was repaired. All elevator problems were solved by the afternoon of May Ist. Some of these problems most likely came from the weekend move outs that took place. When a resident moves out I go over the move out procedures with them but in the future I will try to communicate this better with the families that help with some move outs and move ins. I had also asked the elevator company for a log book to be kept in Parkview office for any service performed on the elevator. Which was provided on 4/25/01. Carpets on 1st floor common areas are scheduled to be cleaned on May 25=. ~" OCCUPANCY: NORTH BUILDING: APT # VACANCY 106 Dec. 31 401 April 30 506 March 31 612 Apdl 21 805 May 31 902 April 30 908 April 30 DATE NAME Mabel Porter Muhiba Alunovic Alija Zahimvic Janne Johnston working off waitlist John Morgathaler (internal) working off waitlist MOVE-IN DATE April 23 when ready April 26 when ready when ready SOUTH BUILDING: APT# VACANCY DATE 320 April 30 421 Feb. 16 *Breakdown of resident vacates: services(assisted living or LTC 4 NAME MOVE-IN DATE Dorothy Larson (internal) when ready Cecilia Rothbauer May 11 deceased, 2 relocates, 3 needed increased Waiting list totals am as follows: Parkview Villa North 18 CH Residents 21 Non-residents 4607 Tyler 6 CH Residents 8 Non-residents Parkview Villa South 24 CH Residents 11 Non-residents *Annual waiting list updates were completed 4/15/01. MISC: For informational purposes the Parkview Villa calendar is attached. Attached is the requested breakdown of apartment vacancy days for the year 2000. Anita will be on vacation May 14 - May 18. 5/2/01 Breakdown of 912 vacant days for year 2000 APARTMENT # 212 vacate 910 vacate 511 vacate 207 vacate 102 vacate 510 vacate 801 vacate 801 vacate 409 vacate 503 vacate 904 vacate 202 vacate 704 vacate 309 vacate 312 vacate 911 vacate 807 vacate 306 vacate 101 vacate 6/12/00 lease up 8/1/00 = 49 days (apartment required electrical repairs to circuit box) 6/30/00 lease up 7/28/00 = 28 days 6/4/00 lease up 7/6/00 = 29 days 6/30/00 lease up 8/14/00 = 34 days 7/18/00 lease up 8/23/00 = 35 days 6/30/00 lease up 7/16/00 = 15 days 7/15/00 lease up 8/4/00 = 19 days 11/30/00 lease up 1/01/01= 33 days 8/23/00 lease up 9/23/00 = 30days 7/I/00 lease up 9/1/00 = 62 days 9/30/00 lease up 11/29/00 = 60 days 11/30/00 lease up 1/4/01= 34 days 11/13/00 lease up 12/29/00 = 47 days 1/10/00 lease up 2/1/00 = 21 days 1/31/00 lease up 3/24/00 = 52 days 4/1/00 lease up 4/21/00 = 21 days 4/30/00 lease up 5/15/00 = 15 days 5/30/00 lease up 9/1/00 = 92 days (apartment required extensive repairs) 8/30/00 lease up 10/13/00 = 42 days 509 vacate 2/28/00 until elevator modernization began = 74 days 509 elevator modernization 120 days TOTAL 912 days - 120 elevator modernization =792 792 divided by 20 apartments = 40 days average CD 0 O~co ~'EE ,,'" COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 15, 2001 AGENDA SECTION: - Public Hearings ORIGINATING EXECUTIVE NO: 8- 1 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Public Hearing, Consider Sale of BY: Randy Schumacher BY: 3913 Polk Street NE to Habitat for Humanity DATE: May 9, 2001 ISSUE STATEMENT: The EDA is requested to conduct a Public Heating and consider the sale of 3913 Polk Street NE to Habitat for Humanity contingent on City Council approval and sale of 4401 Quincy Street NE. BACKGROUND: Minnesota Statutes Chapter 469.105, Subd.2 requires a Public Hearing prior to the sale of property by an EDA. A Public Hearing notice was published according to the timeline established in State Statute in the Focus News on Thursday, May 3, 2001 and advertised on Cable TV for the sale of 3913 Polk Street NE to Habitat for Humanity (copy of the legal ad attached). The Public Hearing is the first step in the formal process to purchase and sell 4401 Quincy Street NE to Habitat for Humanity in a package with 3913 Polk Street NE to build 3 new single-family dwellings. The sale of 3913 Polk Street NE to Habitat for Humanity by the EDA is contingent on whether or not the City Council approves the purchase and sale of 4401 Quincy Street NE. The purchase of 4401 Quincy Street NE is being financed by a $70,000 HOME ,,~_9gram Grant - an agreement signed by the City, rather than the EDA - $35,650 from Habitat for Humanity, and a 300 cash match from the EDA for a total of $123,150 (see attached financial summary). If the city does not approve the purchase and sale of 4401 Quincy Street NE to Habitat for Humanity, then the EDA can consider the sale of just the 3913 Polk Street NE lot at their June 17, 2001 meeting, but the $70,000 in HOME Grant Funds will have to be turned back to Anoka County. The 3 owner-occupied, single-family dwellings to be constructed by Habitat for Humanity helps to fulfill a commitment made by the Columbia Heights City Council in 1996 to work in partnership with Habitat for Humanity to construct 9 homes over the next 3 years in the community (letter attached). While there is no binding legal agreement with Habitat for Humanity for the 9 homes; nevertheless, construction of these 3 homes would nearly meet that commitment to this non-profit organization. Also attached is a tentative timeline for the remaining steps of the formal process to start this project. RECOMMENDATION: Staff is recommending the sale of the two properties to Habitat for Humanity subject to the terms of a negotiated development agreement. MOTION: Move to close the public hearing. MOTION: Move to approve the sale of property at 3913 Polk Street NE, PIN #36-30-24-34-0105 to Habitat for Humanity; and furthermore, to authorize the President and Executive Director to enter into a development agreement for the same. Attachments ACTION: ~:\consent Form2001\3913 Polk Public Hearing City of Columbia Heiahts ECONOMIC DEV =--=-.~-- "~:- '" ELOr.~n,/~u rHORITY' OF COLUMBIA HEIGHTS · OFFICIAL PUBUCATION · " NOTICE OF PUBLIC HEARING Notice is hereby 'given that the .Columbia Heights Economic Development Authority will conduct a Public Hearing on Tuesday, May 15' at approximately 6:30 P.M. in Pa~'view Villa Community Room B, 965 ,lOth 'Avenue NE, Columbia Heights, MN 5,5421. · The'purpose of the Public Hearing is to · consider the sale of the lot at 3913 Polk pS..ti~..t'N.E to .Habitat for Humanity. After the _urmc ?e_anng..the Columbia Hei hts economic uev~ ^. · · --'--I~''~ ~- ~r~,llllU ' ma a decimon on the sale .,, --~ .,_..~y~._may ma~e · . .... u, um~ial~ma De ' the pubhc at the - y ~ by Commune Devel Off'me at Columbi . ly . opment' ........ · _ aLHelghts Cety Hall, 590' =~m., 2 v.e..n_.u_e · .,,.,,~j. wrmen comments should be sent to the community Development Office prior to the Public Hearing; AJI oral'and wrilten com- be hearU at .u ic Hea ng wm~ Fehst, Executive Director ' (May 3, 2001) Fridley, Columbia Heights Focus News January 21, 2000 1998 Home Program- Grant Summary REVENUES $ 70,000 $ 17,500 $ 35,650 $123,150 Anoka County Home Funds- Grant City Match Habitat For Humanity TOTAL REVENUES EXPENDITURES $120,000 4401 Quincy (Double Lot) $ 3,150 Closing Costs (Title Insurance, State Tax, etc.) $123,150 TOTAL EXPENSES $123,150 Total Revenue $123,150 Total Expenses $ -0- Balance H:W, andy\98 Grant Summary 10th Anniversary "BuildOzg Community ]"win CRies Habitat for Human~ January 19, 1996 Mr. Pat Hentges City Manager City of Columbia Heights 590 40th Avenue N.E. Columbia Heights, MN 55421-3878 Dear Mr. Hentges, I am writing to express to you and to the City of Columbia Heights the positive and enthusiastic response of Twin Cities Habitat for Humanity to the City's expressed desire to provide nine vacant residential lots to our organization over the next three years, for the purpose of developing affordable, single-family owner-occpied homes on these sites. We are especially p/eased .that your plans will make available to Twin Cities Habitat a number of lots that are in close proximity to one another, on Taylor, Fillmore and Pierce Streets, in the Sheffield neighborhood of Columbia Heights. This will enable our org~iT~,tion to develop these homes in a most cost effective manner, and will help to build a very strong sense of community in that neighborhood. More precisely, it is my understanding that this partnership between Columbia Heights and Twin Cities Habitat for Humanity will consist of the following characteristics: Plans for each of the nine homes will be submitted by Twin Cities Habitat to the City for its approval prior to conveyance of the lots to Twin Cities Habitat. It is Twin Cities Habitat's intent to utilize a variety of house designs for the nine homes to be built as part of this collaboration. It is Twin Cities Habitat's understanding that at least two of the fa'st six lots and at least one of the last three lots conveyed to Twin Cities Habitat by the City must be sold to fami/ies whose incomes fall within the HOME program guidelines. It is also our understanding that ali families chosen by Twin Cities Habitat have incomes which fall within the HOME prolpam's guidelines. It is our Twin Cities Habitat's tmderstanding that the City will require small, attached double garages on two of the homes - those located on the corner of Taylor and 4$th Avenue, and the cbmer of Taylor and 46th Avenue. Twin Cities Habitat will incorporate such garages into the plans for those homes. 3001 F¢ urtb Street $.E. o Minneapolis, MN 55414 · (612)331-4090., (612)351-1540£cuc Mr. Pat Hentges City of Columbia Heights Sanuary 19, 1996 page 2 e, --,~-,, ,s wuum e~aole out voltmteers to devote their to build these homes, a ,,,~,,~,,.u~ ozomer vonmteers waose time and skill will be needed This comm;tmeat from Columbia Heights, if approved, would also serve as a model for many other commuzzities to follow in their efforts to improve their housing stock and their portion of owner-occupied homes in their community. We are so grateful to you, to Don Schneider, and to the Mayor, the City Council, and the Housing and Redevelopment Authority for the excellent leadership you have demonstrated in your support of Twin Cities Habitat for Humanity through the years. If there are any questions you have about the points I have covered in this letter, or if you should need any additional information, please do not hesitate to contact me. Very truly yours, Stephen Seidel Executive Director May l5,2001 May 15-20,2001 May29,2001 June 11, 2001 June 12-25, 2001 June 25, 2001 July 23, 2001 July 24,2001 August22,2001 HOME PROGRAM TIMELINE PH for 3913 Polk Street NE. Held. EDA approves sale of 3913 Polk Street NE contingent on City Council approval of purchase and sale of 4401 Quincy Street NE. Complete requirements for expenditure of $70,000 in HOME funds: 1) Minnesota Historical Society Review 2) EAW 3) One-to-One Replacement Program Sign off by Anoka County of completion of requirements for draw down of HOME Funds. Columbia Heights City Council holds first reading of an ordinance to purchase 4401 Quincy St. Columbia Heights City Council holds second reading of an ordinance to purchase 4401 Quincy Sale and Development Agreement between the City/EDA and Twin Cities Habitat for Humanity drafted by City Attorney and reviewed by Anoka County. Columbia Heights City Council first reading of ordinance approving the Development Agreement and authorizing conveyance of 4401 Quincy Street NE to Twin Cities Habitat for Humanity. Columbia Heights City Council holds second reading of ordinance approving the Development Agreement and Sale of 4401 Quincy Street to Twin Cities Habitat for Humanity. Request draw down of $70,000 in HOME funds from Anoka County. Closing at City AttorneY's office. H:\Randy2001',I-IOME Program Timeline COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: May 15, 2001 AGENDA SECTION: Other Business ORIGINATING EXECUTWE NO: 9-Col DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Crest View Management Agreement BY: Randy Schumacher BY: Renewal for Parlcview Villa. DATE: May 10, 2001 BACKGROUND: On or about June 1997 the EDA entered into a Management and Maintenance Agreement with Crest View Corporation. Said Agreement was approved by the U.S. Department of Housing and Urban Development. The Agreement was amended in May of 1998 to allow for the extension of the term of the Agreement to include the initial time frame of two years with three, one-year options. This would extend the maximum term of the Agreement to a total of five years. Attached is a copy of the current Management and Maintenance Services Agreement and the amendment approved in June of 1999. We have also attached the proposed new Agreement with Crest View Corporation to extend the term to June of 2002. ANALYSIS: The Board may authorize the third of the three, one year options at this meeting. This will afford Crest View Corporation an oppommity to continue the Maintenance and Management Services Agreement for one additional year through June of 2002. A contract with Crest View Corporation has been inl. C-rect since 1993. Proposals were received from a number of other finns in the Spring of 1997. Crest Vk Corporation was selected to continue to provide these services as the Board determined they were the most qualified and cost effective proposal. EDA Staff continue to have scheduled weekly meetings with Parlc, dew Villa Management Staff to follow up on necessary day to day activities to improve communication and insure effective management of the facility. The Board discussed the option of soliciting proposals at an earlier meeting of the EDA. The Commission conducted a satisfaction survey of the residents and found positive support for Crest View services. The Board then authorized staff to obtain a proposal from Crest View for management services through June 2002. The contract fees for the one-year (third) extension of the Agreement effective June 1, 2001, would be $140,802 plus overtime (see attached prior year analysis). There is no proposed increase in the management fee. In addition, this overtime issue should be discussed concerning the need for part time maintenance staff. RECOMMENDATION: Staff recommends EDA Board approval of the motion listed below which authorizes the one-year extension of the Management and Maintenance Services Agreement to June of 2002. RECOMMENDED MOTION: Move to approve the one year extension of the Management and Maintenance Services Agreement to June of 2002 with Crest View Corporation, based on their proposal dated May 7, 2001; and furthermore, to authorize the President and Executive Director to enter into an Agreement for the same. [ ED~..A ACTION: h:~consc~w Mgmt Agree Renewal Crest View 4444 RESERVOIR BLVD NE COLUMBIA HEIGHTS, MN 55421 763.782.1611 FAX 782.0857 WWW. CRESTVIEWCARES.OR ,May 1 I, 2001 Rand~f Schumacher City of Columbia Heights' 590' 40'~' AveQue Northeast Colu-~bia Heights, MN 55421 Dear l~,h'. Schumacher: Attac,U,e,..t is'a proposal to continue management services for Parkview Villa and 4607 Tyler. ~.Thank you for the opportunity to serve these communities and we look forward to condmfing our partnershi. 'p. Sincerely, . Chief ExeCutive Officer CREST ViEw Is, AN EQUAL OPPORTUNITY EM'PLOYER CREST VIEW MANAGEMENT SERVICES Crest View proposes to leave the management fee the same for the next and benefits of the staff will be increasing, as their respective wages and increase. The estimated increased fimding is as follows: Mileage $200/month Overtime has been averaging 14 hours per pay period for maintenance staff. Our proposal is to add a part time position or additional caretaker staffto help eliminate the costly overtime. Wages and benefits $140,802 plus overtime as it pertains to needs of Parkview Villa, and proposed new position. If overtime eominned as it has been averaging, there would be an additional cost of $10,556 for maintenance staff. Ifa part time position or weekend caretaker staffwere hired, the estimated cost would be $7,000. The additional staffwould be either a part time maintenance staffperson or additional caretaker staffwho could fill in on the alternate weekends. There would still need to be some limited overtime built into the budget due to needs of the residents and the building. DATE: TO: FROM: RE: 1999/2000 CITY OF COLUMBIA HEIGHTS' d/ APB INTERNAL MEMORANDU1W, ~; ~/ -' April 26, 2001 Randy Schumacher, Acting Community Development Director Roxane Smith, Assistant Finance Director Crest View Management Service Analysis for Periods:1997/1998, 1998/1999 & Attached is the requested information regarding the Crest View Management Service Fees paid during the last 3 contract years. The contract year is from 6/1 through 6/30 and includes 1997/1998, 1998/1999 and 1999/2000. If you need additional information, please do not hesitate to ask. City of Columbia Heights Crest View Management Services Analysis Prepared: 4126/01 Crest View Mana_~ement Fees: For Period: 6/1/97 through 6131/98 6/1/98 through 6131/99 6/1/99 through 6131/00 $132,478.05 $139,129.73 $149,944.26 City of Columbia Heights Crest View Management Services Analysis For Period: 6/1/97 through 6/31/98 611/98 through 6/31/99 611/99 through 6131/00 Mana_oement Fees 1997/1998 1998/1999 ~ June 8,025.08 10,635.63 July 10,222.72 10,378.75 21,876.26 August 10,131.05 12,264.79 11,740.52 September 14,834.39 12,055.20 17,699.04 October 10,127.87 11,510.58 12,605.90 November 10,573.25 16,799.22 12,021.18 December 10,477.72 9,013.91 12,143.34 January 11,382.74 11,711.34 11,895.25 February 15,055.36 10,834.99 18,532.09 March 10,710.48 14,797.54 11,527.43 April 10,429.26 8,196.65 10,315.62 May 10,508.13 10,931.13 9,587.63 TOTAL 132,478.05 139,129.73 149,944.26 RECEIVED BY lq~GEMENT 7,ND ~,~'NTElq'ANCE SERVICE8 ~IS A~~, (hereinafter refe~ed ~o as "Agreement"), effe~ve on ~e ~ day of June , 1997, by and be=ween ~e ~w Co~ora=i02 , (hereinaf2er referred ~o as "Contractor"), located a= 4444 Rese~oir Blvd. N.B., Col~m~ia Heights, ~ and ~e Col~ia Heights Economic Developmen= Au~ori=y (hereinafter refe~ed ~o as "O~er"), located a~ 590 40~ Avenue N.E., Col-m~ia Heights, WITN~S SETH= WHEREAS, Contractor has over a number of years acquired managerial skills for the provision of administrative services in the fields of skilled nursing care and provision of housing for the elderly; and WHEREAS, Owner desires to employ Contractor for the purposes of providing management and administrative services for Parkview Villa North and South located at 965 40th Avenue N.E., and 4607 Tyler Street N.E., Columbia Heights, MN 55421 (hereinafter the-"Project"); NOW, THEREFORE, it is agreed as follows: ae Undertakinq. Owner hereby contracts for and Contractor hereby agrees to furnish the services provided for under the provisions of this Agreement. Terms and Conditions. Terminat%on o~ A~reement ~or Cause. If, through any cause, Contractor shall fail to fulfill in timely and proper manner their obligations under this Agreement, or if the Contractor shall violate any of the covenants, agreements, or stipula- tions of this Agreement, the Owner shall thereupon have the right to terminate this Agreement by giving written notice to Contractor of such termination and specifying the effective date thereof, before the effective date of such termination. In such event, all finished or unfinished documents, data, studies, and reports prepared by Contractor under this Agreement shall, at the option of the Owner, become its property and Contractor shall be entitled to receive just and equitable compensation for.any satisfactory work completed on such documents. Termination for Conven%ence o~ Owner. The Owner may terminate this Agreement any time by a notice in writing from the Owner to the Contractor. If the Agreement is terminated by the Owner as provided herein Contractor will be paid an amount which bears the same ratio to the total compensation as the services actually performed bear to the total services of Contractor covered by the Agreement, less payments of compen- sation previously made. Provided, however, that if less than 60% of the services covered by this Agreement have been performed upon the effective date of such termination, Page i of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT Contractor shall be reimbursed (in addition to the above payment) for that portion cfr he actual out-of-pocket expenses (not otherwise reimbursed under this Agreement) incurred by Contractor during the Agreement period which are directly attributable to the uncompleted portion of the services covered by the Agreement. If the Agreement is terminated due to the fault of Contractor, Section B. Terms and Conditions, (1) hereof relative to termination shall apply. Chanqes. The Owner may, from time to time, request changes in the scope of the services of Contractor to be performed hereunder. Such changes, including any increase or decrease in the amount of Contractor compensation, which are mutually agreed upon by and between the Owner and Contractor shall be incorporated in written amendments to this Agreement. 4. Personnel. Contractor represents that they have, or will secure at their own expense, all personnel required in performing the services under this Agreement. Such personnel shall not be employees of or have any contractual relationship with the Owner. Ail services required hereunder will be performed b~ Contractor or under its supervision and all personne~ engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such services. Ce No person who is serving sentence in a penal or correc- tional institution shall be employed or work under this Agreement. Anti-Kickback Rules. Salaries of architects, draftsman, technical engineers, and technicians performing work under this Agreement shall be paid unconditionally and not less often than once a month without deduction or rebate or any account except only such 'payroll deductions as are mandatory by law or permitted by the applicable requlations issued by the Secretary of Labor pursuant to the "Anti-Kickback Act" of June 13, 1934 (48 Stat. 948; 62 Stat. 740; 63 Stat. 108; Title 18 U.S.C., .Section 874; and Title 40 U.S.C., Section 276c). Contractor shall comply with 'all applicable "Anti-Kickback" regulations and shall insert appropriate provisions in all subcontracts covering work under the Agreement to insure compliance by subcontractors with such regulations, and shall be responsible for the submission of affidavits required of subcontractors thereunder except as the Secretary of Labor may specifically provide for variations of or exemptions from th~ requirements thereof. Page 2 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT Withholdin= of Salaries. If, in ~he performance of t-his Agreement, =here is any underpayment of salaries by Contractor or by a subcontractor =hereunder, =he Owner shall wit/~hold from Contractor out of payments due to them an amount suffi- cient to pay to employees underpaid =he difference between =he salaries required hereby to be paid and t~he salaries actually paid such employees for the total number of hours worked· The amounts wire, held shall be disbursed by =he Owner for and on account of Contractor or subcontractor to the respective employees to whom they are due. c~a%ms and Disputes pe~taininq to Salary Rates. Claims and disputes pertaining to salary rates or to classifications of architects, draftsmen, technical engineers, and technicians performing work under this Agreement shall be promptly reported in writing by Contractor to the Owner for the latter's decision which shall be final with respect thereto. E=ual EmPloyment ODportun~t¥. During the performance of the Agreement Contractor agrees as follows: Contractor will not discriminate against any employee or applicant for employment because of race, color, reli- gion, sex, or national origin. Contractor will take affirmative action to ensure that applicants are em- ployed, and that employees are treated, during employ- ment, without regard to their race, color, creed, religion, national origin, sex, marital status, familial status, status with regard to public assistance, disabil- ity, handicap, sexual orientation, and age. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other form of compensation; and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by Owner setting forth the provisions of this nondiscrimina- tion clause. DJ Contractor will, in all solicitations or advertisements for employees placed by or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, national origin, sex, marital status, familial status, status with regard to public assistance, disabil- ity, handicap, sexual orientation, and age. Ce Contractor will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement so that such provisions will be binding upon each subcontractor, provided that the foregoing provi- sions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials. Page 3 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT 9. 10. Discrimination Because o~ Certain Labor Matters. No person employed for the work covered by this Agreement shall be discharged or in any way discriminated against because he/she has filed any complaint or instituted or caused to be insti- tuted any proceeding or has testified or is about to testify in any proceeding relating to the labor standards applicable hereunder to his/her employer. Compliance With Loca% Laws. Contractor shall comply with all applicable laws, ordinances, and codes of the State and local governments, and shall commit no trespass on any public or private property in performing any of the work embraced by this Agreement. 11. 12. Subcontractinq. None of the services covered by this Agree- ment shall be subcontracted without the prior written consent of the Owner. Contractor shall be as fully responsible to the Owner for the acts and omissions of its sdbcontractors, and of persons either directly or indirectly employed by them, as it is for the acts and omissions of persons directly employed by Contractor. Contractor shall insert in each subcontract appropriate provisions requiring compliance with the labor standards provisions of the Agreement. Assianability. Contractor shall not assign any interest this Agreement and shall not transfer any interest in the same (whether by assignment or novation) without the prior written approval of the Owner. v~/~_~, however, that claims for money due or to become due Contractor from the Owner under this Agreement may be assigned to a bank, trust company, or other financial institution, or to a trustee in bankruptcy, without such approval. Notice of any such assignment or transfer shall be furnished promptly to the legal public agency. 13. Interest of Members of Owner. No member of the government body of the Owner, and no other officer, employee, or agent of the Owner who exercises any functions or responsibilities in connection with the carrying out of the Project to which this contract pertains, shall have any personal interest, direct or indirect, in the Agreement. 14. 15. Interest of Other Local Public Officials. No member of the governing body of the locali.ty in which the Project is situated, and no other public official of such locality, who exercises any functions or responsibilities in the review or approval of the carrying out of the Project to which this Agreement pertains, shall have any personal interest, direct or indirect, in this Agreement. Interest of Certain Federal Officials. No member of or Delegate to the Congress of the United States, and no Resident Commissioner, shall be admitted to any share or part of the Agreement or to any benefit to arise therefrom. Page 4 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT 16. Interest of Contractor. Contractor covenants that they presently have no interest and shall not acquire any interest, direct or indirect, in the above-described Project or any parcels therein or any other interest which would conflict in any manner or degree with the performance of the services hereunder. Contractor further covenants that in the perform- ance of this Agreement no person having any such interest shall be employed. 17. Findinqs Confidential. All of the reports, information, data, etc., prepared or assembled by Contractor under this Agreement are confidential and Contractor agrees that they shall not be made available to any individual or organization without prior written approval of Owner. Ce Fees. contractor shall be paid by Owner $ 4.50 per unit per month at Parkview Villa North and South and $115 per month total at 4607 Tyler Street N.E., plus.other costs as defined in this Agreement, in addition to those amounts reimbursed pursuant to Section D.6. and Section E. Any mileage reimbursement to the Contractor for any authorized employee mileage incurred shall be at the rate pre- scribed by Owner policy and will not exceed $1,200 per year or $2,400 total for the two years of the Agreement. Mileage reim- bursement requests shall reflect the employee, date, miles traveled, and purpose of trip. Unless otherwise agreed upon in ~ writing, payments shall be made monthly as billed by Contractor, and payable within 30 days of receipt· D. Services to be Provided by Contractou. Assist tenants with personal financial issues. Health screening and conduct monthly blood pressure tests if required. Provision of financial and other reports and records on a monthly basis in accordance with Owner requirements. Such administrative and management services as are usual and normally performed by Owner in the daily operation of Parkview Villa North and South and 4607 Tyler Street N.E. Referral services for those needing assistance in daily living activities. Contractor shall employ a full-time, on-site Housing Manager who is to be certified as a Public Housing Manager, at not to exceed expense of $ 86,670.00 for the two years of the Agreement. Contractor shall hire, pay and provide any required benefits, including W6rkers' Compensation insurance coverage (and other benefits as deemed desirable by Contrac- tor), provide training for, direct and supervise the person hired to serve on-site as the Public Housing Manager. Contractor will file any necessary payroll reports, etc. in regard to the Public Housing Manager serving on the Parkview Villa site and providing management services for the four-plex at 4607 Taylor Street N.E. Contractor shall employ (on site at 965 40th Avenue N.E.), at most, one full-time Maintenance Page 5 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT person, one full-time (or two part-time with total of 40 hours per week) Resident Caretaker(s), not to exceed $ 134,895.00 for. the two years of the Agreement, and one part-time (20 hours per week) Office Assistant. The Maintenance person and Resident Caretaker(s) must be paid at least the Federally determined (annually established by HUD Area Office Labor Relations Staff) wage rates and benefits. The Office Assis- tant shall be paid the prevailing wage rate (and/or benefits) for similar type positions in the area, not to exceed $16,435.00 for the two years of the Agreement. e Maintenance support to Parkview Villa staff in an emergency, subject to reimbursement by Owner. Total management of day-to-day operations, including admission work, discharge management, and maintaining current waiting lists. In the management of Parkview Villa, Contractor shall comply with rules and regulations established by HUD and other appropriate government agencies. 10. Contractor shall negotiate (secure proposals in accordance with Owner Procurement Policy) and execute on behalf of the Owner and Parkview Villa any contracts for services, material?-% and supplies which cost less than $50.00 and are included in the Operating Budgets for Parkview Villa North and South. Contractor shall negotiate (secure proposals in accordance with Owner Procurement Policy) and provide the Owner Executive Director a proposal summary and copies of proposals received on any work, materials or supplies costing in excess of $3,000.00. The Executive Director, Deputy Executive Director, and/or President will sign the necessary contract or purchase order to purchase the item(s) or secure the service. All purchases and contracts shall be in the name of the Columbia Heights Economic Development Authority and/or the Parkview Villa Housing Complex. 11. Contractor shall provide-all normal public housing related management functions, including yearly inspection of all units, annual income reviews, maintenance of waiting lists in accordance with the Owner Occupancy Policies for the Project, admissions evictions, and any housing management related functions. 12. Contractor shall prepare a monthly report on the management of the Project for the Owner Executive Director and Board of Commissioners. The Public Housing Manager shall attend Owner meetings at least once per month and at other times as necessary to provide information to Owners on Project activi-~ ties and to secure Board approvals for purchases/contracts o~ over $3,000.00. Page 6 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT 13. Contractor shall insure that the Public Housing Manager attend the monthly Resident Council meeting. The Public Housing Manager shall work with the Resident Council of Parkview Villa as necessary for the efficient and amicable operation of the facility· 14. Contractor shall maintain records on-site and off-site in accordance with Federal Department of Housing and Urban Development, State of Minnesota, and Owner records mainte- nance/disposition requirements. E. ResDons~b%lit¥ for Costs. With respect to expenses to be born by Owner, Contractor shall not commit any expenses which have not received prior written approval by the Owner. The annual operating budget, approved by the Owner, shall satisfy the prior written approval requirement. Contractor will be authorized to contract for services/suppl- ies as necessary for the management/maintenance of the Project for approved budgeted items with a limit of $ 50.00 without Owner approval. Contractor will be required to comply with the Owner Procurement policy and issue purchase orders on any purchases of over $50.00 (or current limit as set forth in the Owner Procurement Policy). Invoices and billings received for such services/supplies are to be approved as appropriate by Contractor and coded with account coding as required by the. Owner so that the Owner can maintain proper accounting records for the Project. Approved billings/invoices for services/ materials for the maintenance/office expenses will be paid by the Owner in accordance with established Owner policies for mileage reimbursement and other miscellaneous purposes. Contractor shall be reimbursed by the Owner for the compensa- tion of all employees retained by Contractor for the provision of services at Parkview Villa, in accordance with Section D above, including related fringe benefits, payroll tax and other payroll related costs. For those employees who are Maintenance or Caretakers,' they will be compensated at a rate as approved and meeting HUD quid. lines. The amount is subject to change by HUD. The Office Assistant will be paid an amount that meets prevailing rates in the community and Contractor would guarantee no more than a. 4 % increase per each year of the Agreement. Notwithstanding the limitations imposed by subparagraph E. 1., Contractor may, on behalf of the Owner, without prior consent (provided good faith efforts as reasonable under the circum- stances to obtain consent) expend any amount, or incur a contractual obligation in any amount required to deal with emergency conditions which may involve a danger to life or property or may threaten the safety of the occupants of the building and other appurtenances comprising the Project, or may threaten the suspension of any necessary service to the Project. Paqe 7 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT Financia% cons%de,at%ohS. Contractor shall collect and provide receipts for all rents and other charges due to the Owner for operation of the Project and all rentals or payments from concessionaires, if any, provided that Contractor shall have no responsibility for collection of delinquent rents or other charges except for sending notices of delinquency and advising the Owner thereof. Contractor shall provide the Owner at 590 40th Avenue N.E. copies of records of all receipts and deposits to the Owner bank accounts for the Project. Contractor shall provide such records of receipts and any expenditures made from the Project Petty Cash Account (if in need of replenishment) on or before the first day of each month. e Contractor, in coordination with the Owner Executive Director, shall prepare and submit to the Owner on or before June 1 of each year or in accordance with such other date set by the Owner, recommended budgets for the Project (one budget for the Parkview Villa North 101 unit portion, one budget for the Parkview Villa South 45 unit portion, and one budget for the 4607 Tyler Street N.E. four-plex). The proposed budgets shall reflect anticipated receipts and expenditures for the next fiscal year (the Owner Fiscal Year starts on January 1). Alsc--% to be included in the budget are extraordinary maintenance, betterment/additions, and replacement of equipment. Contractor shall review and recommend to the Owner necessary staffing requirements to perform its duties as listed herein. Contractor shall be directly responsible for training, directing, and supervising the maintenance staff which currently includes a Resident Caretaker Couple, (working 40 hours total for couple), full-time Maintenance person, and the Office Assistant which is a part-time position for up to 20 hours per week. Owner will assist the Contractor in filling any personnel vacancies in the three cited positions, estab- lishing fair compensation, and in discharging any unsatisfac- tory employees. Contractor will provide the Owner time records of the three employees cited above on a monthly basis. Contractor will provide payroll checks once every two weeks and will complete all necessary withholding and reports as necessary. With the aid of appropriate staff/committees from Owner, Contractor will open and maintain Project accounts and render financial data and supporting documentation from time to time as requested by Owner. Records and accounts will be main- tained in accordance with HUD requirements and Contractor will prepare or assis~ in the preparation of all reports--% necessary to comply with HUD reporting requests. Page 8 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT Ge Records and Reports. Contractor will prepare monthly operating reports and such other additional reports as are from time to time deemed necessary by Owner to keep fully advised of services being performed by Contractor. ~ Except for losses incurred as the result of gross negligence or intentional misconduct of its employees, or agents, Owner shall indemnify Contractor for, and hold Contractor harmless from, any and all losses, demands, damages (whether general, punitive, or otherwise), liabilities, claims, causes of action (whether legal, equitable or administrative), judgements, penalties awards settlements and court costs and legal or other expenses which Contractor suffers or incurs as a direct or indirect conse- quence of Contractor providing management, maintenance, and administrative services p~rsuant to this Agreement. Owner shall provide insurance coverage satisfactory to Contractor, naming as insurers Contractor, its officers, directors and employees, as well as the Owner, its officers, directors and employees. Owner shall pay the cost of said insurance, as well as any other expenses related thereto· I. Limitations on Contractor's ResDonsibi!ities. Contractor shall have no authority to make any structural changes in the Project or to make any other major alterations or additions in or to any building or equipment therein, except such emergency repairs as may be required because of danger to life or property or repairs which are immediately necessary for the preservation and safety of the building or the safety of the occupants, or are required to avoid the suspension of any necessary service to the Project. It is understood and agreed that Contractor is not authorized or required to handle major construction or fire restoration. The Owner may employ Contractor to plan, take bids, contract for and supervise major projects. Prior to commencing such projects, however, the parties shall agree in writing on the terms and fees to be paid to Contractor for such additional services. Nothing herein contained shall be construed to relieve Contractor of its duties in connection with the repair, maintenance and' replacement of components of the Project which are ordinary, necessary, and which are recurring items of maintenance. The cost of such repair, maintenance and replacement are to be paid by the Owner. Advance Owner approval shall be required on.expenditures in accordance with the Owner official procurement policy, a copy of which has been furnished to Contractor. Except with respect to the conduct and execution of its duties as set forth herein, Contractor shall have no further respon- sibility for Owner's compliance with the requirements of any ordinances, laws, rules or regulations (including those relating to the disposal of solid, liquid and gaseous wastas) of the City, County, State or Federal Government, or any Page 9 of 10 MANAGEMENT AND MAINTENANCE SERVICES AGREEMENT public authority or official thereof having jurisdiction over the Owner or to the Project, except to promptly notify ~ Owner, and to promptly forward to the Owner any complaint~ warnings, notices or summons received by it relating to such matters. The Owner agrees to indemnify and hold Contractor harmless and its officers, directors, its representatives, servants and employees from all loss, costs, expense and liability whatsoever which may be imposed upon them or any of them by reason of the presence of, or any future, violations or alleged violations of such laws, ordinances, rules or regulations except for such as may arise out of the acts or omissions of Contractor or those independent contractors operating under Contractor's supervision. Successors and Ass%qns. This Agreement shall inure to the benefit of and be binding upon the respective parties, including without limitation any corporation into which either may be consolidated or merged, subject to the provisions of Section B of this Agreement. This Agreement is otherwise not assignabl9 without the prior written consent of the respective parties, which consent will not be unreasonably withheld. Amulicable Law. This Agreement shall be governed by the laws of the State of Minnesota. Amendment. This Agreement may not be amended Orally, but only in writing signed by the parties hereto. Crest View Corporation ~rley ~es Its Chief Executive Officer Columbia Heights B~~./~~Ec°n°mic D~~ment Authority Gar~ L. Peterson Its Pres%dent Date Walter R. Feast Its Executive D~uector Date U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT By, Title Date managre Page 10 of 10 Management and. Maintenance Servicez Agreement Amendment by and between Cre~ View Corporation and the Columbia Heights Economic Development Authority This Amendment, (this Management and Maintenance Services A~'eement Amendment hereina~er referred to as "Amendment"), effec~ve on the day of ,1998, by and between the Crest V~ew Corporation, (hereina~er referred'"to ~ ~C~ntrzctor"), located at ~. Reset-~o~r Blvd. NE Columbia Hei ts MN and the Columbia He/ghts Economic Development Authority (hereinafter referred to as "Owner"), located at 590 40" Avenue NE, Columbia Heights, MN 55421; WITNESSETIt; WHEREAS, Contractor has entered into a Management and Maintenance Services Aareernent aarmmstrative services fi · o provme management and or Parlcview V'dla North and South, located at 965 40'~ Avenue NE, and 4607 Tyler St. NE, Columbia Heights, MN 55421, (hereinafter the "Project"), and WltEREAS, the Contractor and Owner desire to enter into this Amendment for the purpose of' providing the option to renew tiffs Agreement annually for a total period of three years effective the first day oflune, 1999; NOw TI:~REFORE it is a~eed, the Owner hereby contracts for and Contractor hereby agrees to furnish the services provided for under the provisions of the Management and Maintenance Services Agreement and hereby agree to revise the terms and conditions of said Agreement to allow for the option to renew this Agreement armually for a total period of three years effective lune I, 1999 and ex'tending to the last annual term commencing June 1", 2001. The Management and Maintenance Services Aareeraent is hereby amended effective the _ _ day of 1998 as authorized in writin~by the signatures of the parties hereto. CREST VIEW CORPORATION By Shirley Barnes Its Chief Executive O~cer Date COLUMBL4. I-IEIGHTS ECONONIIC DE¥-ELOP~fENT AUTHORITY By Gary L. Peterson Its President Date Bv Walter R. Fehst its_Executive Director Date To: From: Subject: Date: Chadie Thompson, Fire Chief Dana Alexon, Assistant Fire Chief Potential Use of Parkview Villa Fire Alarm for Paging Purposes May 7, 2001 You had requested that I investigate the possible use of the fire alarm system microphone for paging purposes at Parkview Villa. I have looked at the system, discussed this issue with Parkview Villa staff and with the staff from Gdnnell Fire Protection Systems. I have also reviewed the Minnesota Uniform Fire Code (MUFC) regarding this issue. It is my recommendation that the fire department refuse to allow the fire alarm system at Parkview Villa to be used for general-purpose paging. Reasons for my recommendation are as follows: The MUFC prohibits such a use. The code says, "Systems and components shall be listed and approved for the purpose for which they are installed." (MUFC 1007.3.2) This code text requires the fire alarm system to be approved (by UL or some other nationally recognized testing agency) for the uses it is installed for. The code also says, "A fire alarm system shall not be used for any purpose other than fire warning unless approved." (MUFC 1007.3.3.4) This text would prohibit the fire alarm system from being used as a paging system unless it was approved (again, by UL or some other nationally recognized testing agency) for such a dual purpose. Donald Crook from Grinnell Fire Protection Systems told me that the fire alarm system is not designed to be used for general-purpose paging and that he knew.of no other building where this use is permitted. Staff opinions. Building staff members that I talked to were unanimous in their desire to not have such a paging system. In general, they felt the building was running smoothly without such a system. They had several reasons for their opinions. First, they felt the building would become more of 1 an 'institution' such as a nursing home if there were public address announcements being made. Second, this issue has not been discussed at a resident council meeting and staff felt that some residents would oppose such a system. Third, staff felt that residents would have considerably varying perceptions about the information to be sending with such a paging system. For instance, some residents in the past have felt the need to page out issues such as a car parked in the wrong parking place or someone having left a mess in a hallway. Pages such as this would affect the entire building when only one person need be affected. Staff felt that a detailed procedure would be needed to determine when to page and when not to page. Security for fire alarm system. In order to page out messages using the microphone, the person making the page must have access to a key for the fire alarm panel because the microphone is in a locked compartment. Having multiple keys for the fire alarm system invites the potential for an unauthorized person to tamper with the alarm system or possibly reset a ringing alarm prior to the fire department being notified. Resident complacency. Staff members told me that, dudng the years when the previous fire alarm system was used for paging, some residents would place cardboard or other items over the speakers in their apartments because the volume of the messages was too loud. The volume of the fire alarm message system is designed to be loud because we want it heard in an emergency. If the residents tamper with the speaker because of an everyday, non-emergency use of the system, we run the dsk that the residents will not hear an important message in an emergency. Legal liability. Using the fire alarm system for general-purpose paging would seem to expose several people to potential legal liability. Obviously the fire department, which would have to permit such a use, would have liability. I believe that any person operating the paging system would also face potential liability if the alarm system failed to operate propedy after a paging announcement was made. The fire alarm system originally installed at this building was allowed to be used for paging purposes by a previous Fire Chief. Other fire personnel (including myself) believed this was an unacceptable use of the fire alarm system and was of considerable concern. More than once the fire department has responded to fire alarms at Parkview Villa when the odginal fire alarm system was in place, only to find that the alarm horns never sounded a warning in the building because someone forgot to place a switch back in the correct position. I recommend that the fire alarm system be used for its intended purpose only. C2-O1038 2 ECONOMIC DEVELOPMENT AUTHORITY (EDA) DATE: TO: FROM: RE: May 10, 2001 ALL EDA COMMISSIONERS Randy Schumacher, Acting Community Development Director EDA Loan Portfolio and Housing Assistance Programs A few weeks ago Mark Nagel was hired on a seasonal status to assist the Community Development Department with miscellaneous issues and projects. One of the first issues that I asked Mark to address was the status and condition of our Home Loan, Business Revolving Loan Fund, and Housing Assistance Programs. Mark will be in attendance at the Board meeting to review these issues in more detail and obtain direction for each program. Attachment H:\Loans2001\EDA Loan Portfolio F, DA I,nan Pnrtfolio I have reviewed all of the outstanding loans made by the EDA, analyzed the remaining balances, and repayment status for each. I have the following recommendations for further discussion by the EDA: 1. Section 8 Repayment A~reement - The'loan was entered into in April, 1999 with Duane Hagen with monthly payments of$55.51for 2 years. To date, he has paid back about $950 leaving $385 remaining to be paid. Mr. Hagen is homeless and has not made a payment in the last 5 months. He recently moved out of the Suburban Lodge, 420 Coon Rapids Blvd., Coon Rapids, MN with no forwarding address. Mr. Hagen is now off the Section 8 Program and, as I understand it, he is not legally responsible to pay it back. There are also questions about the legality of making a loan to a Section 8 recipient, but, at the very least, it does not represent a good policy for the EDA. The one collection agency that I called was not interested, as the remaining balance is too small and with little chance of collecting. I would recommend that the EDA pass a motion declaring the loan uncollectible, and furthermore, recommend passing a motion that no more loans will be made to Section 8 recipients. 2. Hnme Improvement Prnmissnrv Nnte (Sheffield~ - A $5,000 loan, at 2% for 10 years was made to the Warricks on June 15, 1995. They are up-to-date on their payments of $46.01 per month with $2,120.36 remaining until the note is paid off in June 2005. The EDA has a number of home improvement loans and grant programs available through CEE for the community. As policy, the EDA should not be making promissory notes, loans, or grants for home improvements. This same $5,000 note could have been put towards CEE programs and yielded at least a $5,000 match. In other words, the EDA could have received a "bigger bang for its home improvement dollar" in matching other state program dollars than signing this note. I would recommend completing the one loan outstanding, but establish a policy of not making any more home improvement loans on its own. 3. Mnrtgage l.nan Payments - There are 2 outstanding loans the EDA made for mortgages. The first, Chartraw, was closed on June 1, 1979 for 30 years through May 1, 2009 with monthly payments of $381.34. The second, Nielsen, was also a 30-year mortgage closed on July 1, 1979 with monthly payments of $318.60. The interest on both of these loans is 5%. Chartraw has a balance remaining of $20,243.70 and Nielsen has a balance remaining of $18,699.35 -both loans are up-to-date. Since no home mortgage loans have been made by the EDA after 1979. I assume that there is a current policy in effect not to enter into anymore home mortgage loans, as there are a number of low interest state programs available to homebuyers. The EDA can continue to process these loans on a monthly basis; although, it may be advisable to redirect the loan repayments into the BRLF, since there will no longer be any home mortgage loans made by the EDA. Another option for discussion by the EDA would be to sell the 2 mortgages to a company like the Community Reinvestment Fund and put the proceeds in the BRLF or housing programs, which would save administrative time and get these dollars recirculated back in the community much faster. 4. Bu~ine.~.q Revolving I.rmn Fund .(IIRI.F) - There are 3 outstanding loans; 1) Metro Assemblies (Robert & Priscilla Bamick); 2) F.C. Celtic LLC (Kenneth Hertz); and 3) Industrial Steel (Steven & Katherine Jonak), each for $25,000 at 5%. Metro Assemblies has a balance of $13,646.31 remaining over the next 5 years with monthly payments of $265.99. F.C. Celtic has a balance of $10,339.58 remaining over the next 2 years with monthly payments of $472.53. Industrial Steel has a balance of $5,246.69 over the 1.5 years with monthly payments of $266.00. All of these loans are up-to-date. In the February 9, 1999 EDA Minutes, it was noted that ALL BRLF monies were currently out on loan; however, as the 2001 EDA Management Report notes below, there is now over $25,000 available to make new loans. Balance Principal Balance 2000 Chartraw/Uecker Nielson, K. Jonak (Industrial Steel) Barnick (Metro Assemblies) Independent Products F.C. Celtic, LLC $23,061 $1,968 $21,093 $1,108 21,284 1,805 19,479 1,023 9,012 2,800 6,212 392 16,585 2,113 14,472 813 7,626 7,626 .......... 249 16;557 4;941 11716 749 Totals $94,125 $21,253 $72,872 $4,314 The BRLF could continue to be administered by EDA staff, but another option would be to negotiate a contract with CEE to mn this program, which has at least 2 businesses interested in participating. The EDA also needs to review or develop program policies for the BRLF. By adding funds from the home mortgage loans and BRLF repayments, the BRLF can be self-sustaining no longer needing EDA monies. This program has proven to assist in expanding the existing commercial and industrial base in other metro area cities and with some restructuring and more dollars could do the same in Columbia Heights. I would recommend that the BRLF program be continued through the EDA but administered by CEE. Further, that the loan terms for new loans be updated by the EDA. The EDA would then be focusing its limited dollars on the BRLF program. H:kLoans2001 \Outstanding Loans I-lOl ISING UPDATE 1. The elevator modernization project at Parkview Villa is complete. The EDA has now been reimbursed all of its $271,488 in CIAP funds. There is one outstanding issue regarding Davis-Bacon documentation that will be reviewed with HUD this summer. This will appear as an audit finding in the EDA's Management Report and corrective action on the $75,128 in wages paid for the project will involve reconstructing the prevailing wage forms for HUD. The elevators, according to the consultant, exceeded contract specifications - the average waiting time for residents prior to the modernization was about 20 seconds and after project completion, the waiting time was 8.4 seconds. A quieter and smoother ride provided by the modernization of the elevators has also benefited residents. 2. On Monday, April 30th, during a meeting with the Center for Energy and Environment (CEE), Dave King, Director of Community Revitalization Resources Division, provided the attached update on the EDA's Home Improvement Programs - 62 loans totaling $727,826. As you know, the EDA, with the help of $25,000 fi.om MHFA and another $25,000 from Metro Council, is providing $50,000 for the Discount Loan Program to write-down the interest rate on the MI-IFA Community Fix-up Fund and Fix-up Fund Loan Programs - to date, 28 loans totaling $427,978 have been closed by CEE, which means the EDA is getting about $17.50 return for each of the 24,375 dollars the EDA has invested in this program to date. This is an excellent rehab investment ratio. The other $25,000 has been approved and sent to CEE in time for the busy Spring and Summer construction season. I would expect that these matching dollars will go quickly, as these 2 fix-up programs have proven to be very popular. The EDA might want to begin to think about adding dollars to this program. 3. Another result of the meeting is a focused direct mail marketing program for Columbia Heights rental property owners for 2 available programs - MHFA Rental Rehab and CEE's Rental Energy Loan Program, which have been underutilized. I will be working with them to develop an information packet to be sent everyone on the rental owner's list, which needs to be updated, too. 4. Also related to CEE's contract, which ends on December 31, 2001, I have requested copies of their insurance certificates and an updated Exhibit B reflecting the new, lower interest rates under the MHFA programs for the EDA's files. 5. Finally, as you can see from the attached information, CEE has also closed 9 Home Improvement grants using $117,723 in 1997 CDBG fimds and another 3 loans using $27,398 in 1998 CDBG funds. In addition, another $133,725 in 1998 CDBG funds is in process. A priority will be closing those loans, as well as expending the remaining $90,000 in 1998 CDBG funds before September, when the money would have to be returned to Anoka County. 6. Another housing program available to city residents is the MHFA First Time Homebuyers Program, which has $30 million to loan statewide at 6.25%, land points. A total of $6.87 million of these dollars is allocated to Anoka County residents, which would be available to first-time homebuyers in Anoka County. Unfortunately for residents, there are no banks in Columbia Heights participating in the program, but Wells Fargo Home Mortgage, 2329 Central Ave NE and TCF Mortgage, 1600 New Brighton Blvd are close. I hope to advertise the availability of these funds locally, so that some residents take advantage of these funds. I am working with Kim Stuart of MHFA on marketing this program and she'll let me know how many homes are sold under this program in Columbia Heights. Participation in the First-time .tomebuyers Program requires no EDA or city funds. 7. As you can see, the Transition Block Redevelopment Project is underway - footings have been poured for the 26 units of rental townhomes. I am currently working with developer and the EDA's attorney, Dan Greensweig, to process the first draw of $235,350 for property acquisition for reimbursement under the Metropolitan Livable Communities Act Grant. The remaining $309,650 in the grant will be used in the senior assisted living part of the project. H:\Memos2001\Housing Update Community. Revitalization Resources W~VX¥. rrtl-lcee.o/:~ 211 North 1" Street, Suke 455 , Minneapolis, Minnesota 55401 , Phone: f61£] 335-5880 · Fax: (612J 335.2~ TO: FROM: SUBJECT: DATE: City of Columbia Heights Dave King, CEE Program Update April 30, 2001 Below is aa update of the Columbia Heights Home Improvement Program totals to date: Closed Loans: Progr-.,m Number of Loans Dollars MI-IFA Community Fix-up 15 $240,109 MHFA Fix-up 23 $255,797 MI-IFA Home Energy 4 $6,961 MHFA Rental' Rehab 3 $47,820 CEE Rental Energy Loan 4 $31,531 CDBG Loans/Gcaats 12 $145,121 ACORN 1 $487 TOTAL 62 $727,826 Of the 38 loans originated through the MHFA Fix-up Fund and Community Fix-up Fund programs, 28 of them utilized Columbia Heights Discount Loan Program funds totaling $24,375.38. All told, CEE has mailed over 325 application packets to Columbia Heights property owners. Of that total, we have received 115 applications to date. The balance of the applications that have not closed are in the process of submitting bids and other documentation to complete the application process. If you have any questions or comments, please contact me at (612) 335-5889. Thank you. 1~ EQUAl. HOUSING LENOER d/u/sion oft/ye Center for ~tter, e..r.), and P?nuironmertt ,s £qual Opportunity £mplq~'er Ma,rk Nagel - Home mortgage loans Page 1 From: Mark Nagel To: dking@mncee.org Subject: Home mortgage loans Dave - It was nice meeting with both of you yesterday - a lot of rehab going on in Columbia Heights thanks to you and your staff. As I mentioned at the meeting, the city has a couple of home mortgages that it may be willing to sell to Community Reinvestment Fund. Here is a short summary of the details: Both are 30 year mortgages coming due in 2009 - one has $20,243.70 and the other has $18,699.35 outstanding as of May 1, 2001 - both are up-to-date with their payments. Dave, I don't what they're worth if sell them and I know nothing about the process of selling them. Any ad vice that you can give me would be appreciated. I will be sending a copy of our contract to you shortly. Thanks, Mark Nagel, Community Development Assistant City of Columbia Heights Home Improvement Grant Program Budget Summary Funding Source: Funding Yea~. Grantor:, Grantee: Community Development Block Grant (CDBG) 1997 Anoka County City of Columbia Heights Program AdministratCenter for Energy and Environment Client name Fish Idkaroum Henry Hughes Gulden Debruin Lawrence House Benoit CEE Total Rehab Admin Project File No. Grant Charge Cost C-1997-02 $10,924.00 $875.00 C-1997-03 $ 14,633.00 $875.00 C-1997-04 $19,786.00 $875.00 C-1997-06 $15,720.00 $875.00 C-1997-07 $15,650.00 $875.00 C-1997-08 $1,900.00 $875.00 C-1997-10 $4,465.00 $875.00 C-1997-11 $16,500.00 $875.00 C-1997-13 $18,145.00 $875.00 File Status C C C C C C C C C Reimb. Status C C C C C C C C C CEE Invoice # Expended or Commited Budget Balance (HRA Records) Balance (County Records) Notes: $117,723.00 $7,875.00 $0.00 Home Improvement Grant Program Budget Summary Funding Source: Funding Year:. Grantor:. Grantee: Community Development Block Grant (CDBG) 1998 Anoka County City of Columbia Heights Program AdministmtCenter for Energy and Environment Client name Delada Asnake Sanetra Podany Almdale Miguel Biemet Mayland May Milligan CEE Total Rehab Admin Project File No. Grant Cha~ge Cost C-1998-03 $3,210.00 $875.00 C-1998-01 $13,725.00 $875.00 C-1998-04 $13,600.00 $875.00 C-1998-05 $20,000.00 $875.00 C-1998-02 $20,000.00 $875.00 C-1998-07 $20,000.00 $875.00 C-1998-08 $20,000.00 $875.00 C-1998-09 $20,000.00 $875.00 C-1998-10 $20,000.00 $875.00 C-1998-11 $10,588.00 $875.00 File Status C I C I I I I I I C Reimb. · Statue C I C CEE Invoice # Expended or Commited Budget Balance (HRA Records) Balance (County Recorda) Notes: $161,123.00 $90,000.00 $8,750.00 $0.00 DATE: TO: FROM: RE: COMMUNITY DEVELOPMENT DEPARTMENT May 10, 2001 ALL EDA COMMISSIONERS Randy Schumacher, Acting Community Development Director CITY/EDA/HRA Owned Property At the EDA's April 2001 meeting, it was requested that staff provide a listing of all properties owned by the City, EDA, or HRA in Columbia Heights. Therefore, staff has prepared the attached updated listing. Attachment H:~Memos200 I\City,EDA,HRA owned property OWNER ZONED CITY R-1 HRA CBD EDA R-2 EDA CBD EDA GB EDA GB PROPOSED PROPERTY DISPOSITION - 5/1/2001 DESCRIPTION OF SERVICE/ADDRESS 4656 Monroe (Lot Only) 3982 Van Buren (Lot Only) 3913 Polk (Lot w/garage) 828 40t~ Avenue NE (TV Bldg) 3944 Lookout Pl. (Lot Only) 3950 Lookout Pl. (Lot Only) PROPOSED DISPOSITION CBDG Funds used to acquire property researching options Hold for Redevelopment Hold for Redevelopment Hold for Redevelopment Hold for Redevelopment Hold for Redevelopment H:~4emo2001LProposed Property Disposition 5-I-2001 DATE: TO: FROM: RE: May 7, 2001 All EDA Commissioners Shirley Barnes, M.S. Chief Executive Officer Requested State Statutes Per the EDA's request, I have attached copies of the Tenant-Landlord Law and the Registration and Disclosure Requirements from the State Statutes for Board review. Illlllll tlllll MAY 7 2001 TENANT--LANDLORD LAW AND RELATED LAWS TENANT--LANDLORD LAW AND RELATED LAWS Minnesota's Tenant--Landlord law sets forth the basic rights and responsibilities of tenants and landlords in rental situations. In 1998, the Legislature totally recodified the old tenant-landlord provisions in {}504.01-504.36 and the unlawful detainer provisions in {}566.01-566.35, combining them into a new law, {}504A. Along with the recodification, some of the language in the law was simplified and some lengthy paragraphs and sentences were revised for clarity. However, no substantive changes were made-- timeframes for actions by tenants and landlords, rights and responsibilities of tenants and landlords, and penalties for failure to comply with legal requirements were unchanged. The effective date for these changes was delayed until July 1~ 1999, to provide the Legislature time to make additional changes. During the 1999 session, the Legislature completely revised the tenant-landlord requirements once again, creating a new chapter 504B. These 1999 changes were effective July 1, 1999. Under current law, the three percent simple non-compounded interest rate that landlords must pay on tenant security deposits is in place until May 1, 2001. After May 1, 2001, unless the Legislature takes other action, the interest rate will change to four percent. Landlords should also be aware of the Tenant's Right to Privacy Act, which was passed by the Legislature in 1995 and was amended in 1996. This act has been incorporated into 504B. Landlords are required to post a notice about the availability of a summary of these laws in a conspicuous place. This summary is published annually by the Minnesota Attorney General's office and is available in English and Spanish. Owners are encouraged to request free copies of this publication, Landlords and Tenants--Rights & Responsibilities, for their own and their tenants' use by writing the Minnesota Attorney General's office, consumer protection, 1400 NCL Tower, 445 Minnesota Street, St. Paul, MN 55101; or calling (651) 296-3353 or (800) 657-3787. This publication may be downloaded or ordered from the Attorney General's Web site at "www.ag.state.mn.us/home/consumer/default.shtml" [then click on "housing"]. TENANT LAWS LANDLORD LAW AND RELATED A. TENANT LANDLORD LAW 1999 REVISIONS TO THE TENANT-LANDLORD LAW (CHAPTER 199, ARTICLE 1, H.F. 2425) LANDLORD ANDTENANT 504B.001 · · · · · · · · · · · Definitions ......................................................................................... 1-1 Applicability .................................................................................................. 1 - 1 Controlled substance ...................................................................... '. ............... 1-1 Distress for rent .............................................................................................. 1-1 Evict or eviction ............................................................................................. 1-1 Housing-related neighborhood organization .................................................. 1-1 Inspector ......................................................................................................... 1-2 Landlord ......................................................................................................... 1-2 Lease .............................................................................................................. 1-2 License ........................................................................................................... 1-2 Person ............................................................................................................. 1-2 Residential building ....................................................................................... 1-2 Residential tenant ........................................................................................... 1-2 Tenancy at will ............................................................................................... 1-2 Violation ........................................................................................................ 1-2 Writ of recovery of premises and order to vacate .......................................... 1-3 LEASING AND RENT 504B.101 Distress for rent ................................................................................ 1-3 504B. 111 Written lease required, penalty ....................................................... 1-3 504B.115 Tenant to be given copy of lease ...................................................... 1-3 · Copy of written lease to tenant ...................................................................... 1-3 · Legal action to enforce lease .......................................................................... 1-3 504B.121 Tenant may not deny title; exception ............................................. 1-3 504B.125 Person in possession liable for rent; evidence ............................... 1-3 504B. 131 Rent liability; uninhabitable buildings .......................................... 1-4 504A.135 Terminating tenancy at will ............................................................ 1-4 504B.141 Urban real estate; holding over ....................................................... 1-4 504B.145 Restriction on automatic renewals of leases ................................... 1-4 504B.151 Restriction on lease terms for buildings in financial distress ....... 1-4 OBLIGATIONS AND COVENANTS 504B.155 Tenant must give cold weather notice before vacation of building ............................................................................................................... 1-5 504B.161 · · · · · · Covenants of landlord or licensor ........................................ : .......... 1-5 Requirements ................................................................................................. 1-5 Tenant maintenance ....................................................................................... 1 - 5 Liberal construction Covenants are in addition ............................................................................... 1-5 Injury to Third Parties .................................................................................... 1-6 Application .................................................................................................... 1-6 504B.165 Unlawful destruction; damages ....................................................... 1-6 504B.171 Covenant of landlord and tenant not to allow unlawful activities · Terms of covenant .......................................................................................... 1-6 · Breach voids right to possession .................................................................... 1-6 · Waiver not allowed ........................................................................................ 1-7 504B.178 Interest on security deposits; withholding security deposits; damages; limit on withholding last month's rent ........................................... 1-7 · Applicability. .................................................................................................. 1-7 · Interest ............................................................................................................ 1-7 · Return of security deposit .............................................................................. 1-7 · Damages ......................................................................................................... 1-8 · Return of deposit ............................................................................................ I-8 · Successor in interest ....................................................................................... 1-8 · Bad faith retention .......................................................................................... 1-9 · Withholding rent ............................................................................................ 1-9 · Action to recover deposit ............................................................................... 1-9 · Waiver ............................................................................................................ 1-9 · Tenancies after July 1, 1973 .......................................................................... 1-9 504B.181 Landlord or Agent Disclosure ......................................................... 1-9 · Disclosure to tenant ........................................................................................ 1-9 · Posting of notice ............................................................................................ 1-10 · Service of process .......................................................................................... 1-10 · Information required for maintenance of action ............................................ 1 - 10 · Notice to landlord .......................................................................................... 1-10 · Successors ....... .: ............................................................................................. 1-10 BUILDING INSPECTION REPORTS; BUILDING CODE VIOLATIONS; CONDEMNED BUILDINGS 504B.185 Inspection; notice .............................................................................. 1 - 10 · Who may request ........................................................................................... 1-10 · Notice ........................................... 1-11 504B.191 Code violations records; disclosure ................................................ 1-11 504B.195 Disclosure required for outstanding inspection and condemnation orders ......................................................................................... 1-11 · Disclosure to tenant ........................................................................................ 1-11 · Penalty ............................................................................................................ 1-12 · Exception ....................................................................................................... 1-12 · Landlord's Defense ........................................................................................ 1-12 · Remedies Additional ...................................................................................... 1-12 504B.204 Action for rental of condemned residential premises ................... 1-12 TENANT'S RIGHTS 504B.205 Residential tenant's right to seek police and emergency assistance ............................................................................................................. 1 - 13 · Definition ....................................................................................................... 1-13 · Emergency calls permitted ............................................................................. 1-13 · Local preemption ........................................................................................... 1-13 · Residential tenant responsibility .................................................................... 1-13 · Residential tenant remedies ........................................................................... 1-13 · Attorney general authority ............................................................................. 1-13 504B.211 · · · · · · Residential tenant's right to privacy .............................................. 1-13 Definitions ...................................................................................................... 1-14 Entry by landlord ........................................................................................... 1-14 Reasonable Purpose ....................................................................................... 1-14 Exception to notice requirement .................................................................... 1-14 Entry without residential tenant's presence ................................................... 1-14 Penalty ............................................................................................................ 1 - 14 Exemption ...................................................................................................... 1 - 15 UTILITIES INTERRUPTIONS; UNLAWFUL OUSTER 504B.215 Emergency conditions; loss of essential services ........................... 1-15 · Definitions ......... ............................................................................................. 1-15 · Single-meter utility service payments ............................................................ 1-15 · Procedure ................. ...................................................................................... 1-15 · Limitations; waiver prohibited; rights as additional ...................................... 1-16 504B.221 Unlawful termination of utilities ..................................................... 1-16 504B.225 Intentional ouster and interruption of utilities; misdemeanor .... 1-17 504B.231 Damages for ouster .................... 1-17 RESIDENTIAL TENANT REPORTS 504B.235 · · · Definitions ......................................................................................... 1-17 Applicability .................................................................................................. 1 - 17 Proper identification ....................................................................................... 1-18 Residential tenant report ................................................................................ 1-18 Residential tenant screening service .............................................................. 1-1 g 504B.241 Residential tenant reports; disclosure and corrections ................ 1-18 · Disclosures required ....................................................................................... 1-18 · Corrections ............................. 1 19 · Explanations ...................................................................................... ' 1-19 · Court file information ................................................ 1-19 · Eviction action coding ................................................................................... 1-20 · Information to residential tenant .................................................................... 1-20 504B.245 Tenant report; remedies MISCELLANEOUS RIGHTS 504B.251 Recording of notice of cancellation of leases .................................. 1-20 504B.255 Termination notice requirement for federally subsidized housing ................................................................................................................ 1-20 504B.261 Pets in subsidized handicapped accessible rental housing units..1-21 504B.265 Termination of lease upon death of tenant .................................... 1-21 · Termination of lease ...................................................................................... 1-21 · Notice ................. 1 21 · Waiver prohibited .......................................................................................... 1-21 · Applicability .................................................................................................. 1-21 iv 504B.271 Tenant's personal property remaining in premises ...................... 1-21 · Abandoned property ....................................................................................... 1-21 · Landlord's punitive damages ......................................................................... 1-22 · Storage ........................................................................................................... 1-22 · Remedies additional ....................................................................................... 1-22 504B.275 Attorney General's statement; distribution ................................... 1-23 EVICTION ACTIONS 504B.281 Forcible entry and unlawful detainer prohibited .......................... 1-23 504B.285 Eviction actions; grounds; retaliation defense; combined allegations ........................................................................................................... 1-23 · Grounds .......................................................................................... ~ ............... 1-23 · Retaliation defense ......................................................................................... 1-24 · Rent increase as penalty ................................................................................. 1-24 · Nonlimitation of landlord's rights ................................................................. 1-24 · Combining allegations ................................................................................... 1-24 504B.291 Eviction action for nonpayment; redemption; other rights ......... 1-25 · Action to recover ............................................................................................ 1-25 · Lease greater than 20 years ............................................................................ 1-25 · Recording of eviction or ejectment actions .................................................... 1-26 504B.301 Eviction action for unlawful detention ........................................... 1-26 504B.305 Notice of seizure provision .............................................................. 1-26 504B.311 No eviction action if tenant holds over for three years .................1-26 504B.315 Restrictions on eviction due to familial status ............................... 1-26 504B.321 Complaint and summons ................................................................. 1-27 · Procedure ....................................................................................................... 1-27 · Expedited procedure ...................................................................................... 1-27 504B.325 Expedited relief. ................................................................................ 1-27 504B.331 Summons; how served ..................................................................... 1-27 504B.335 Answer; trial ..................................................................................... 1-28 504B.341 Continuance of trial ......................................................................... 1-28 504B.345 Judgment; execution ........................................................................ 1-29 · General ........................................................................................................... 1-29 · Expedited writ ................................................................................................ 1-29 504B.351 Failure of jury to reach a verdict .................................................... 1-29 504B.355 Form of verdict ................................................................................. 1-29 504B.361 Forms of summons and writ ............................................................ 1-30 · Summons and writ ......................................................................................... 1-30 · Priority writ .................................................................................................... 1-31 504B.365 Execution of the writ of recovery of premises and order to vacate ................................................................................................................... 1-31 · General ........................................................................................................... 1-31 · Priority; execution of priority order .................................................... ~ .......... 1-31 · Removal and storage of property ................................................................... 1-31 · Second and fourth judicial districts ................................................................ 1-32 · Penalty; waiver not allowed ........................................................................... 1-32 504B.371 · · · · · · · Appeals .............................................................................................. 1-33 Statement of intention to appeal .................................................................... 1-33 Time for appeal .............................................................................................. 1-33 Appeal bond ................................................................................................... 1-33 Stay pending appeal ....................................................................................... 1-33 Stay of writ issued before appeal ................................................................... 1-33 Dismissal of appeals; amendments; return .................................................... 1-33 Exception ....................................................................................................... 1-33 RESIDENTIAL TENANT ACTIONS 504B.375 Unlawful exclusion or removal; action for recovery of possession ............................................................................................................ 1-34 · Unlawful exclusion or removal ...................................................................... 1-34 · Motion for dissolution or modification of order ............................................ 1-35 · Finality of order · Waiver not allowed ........................................................................................ 1-35 · Purpose ........................................................................................................... 1-35 · Application .................................................................................................... 1-35 504B.381 · · · · · · Emergency tenant remedies action ................................................. 1-35 Petition ........................................................................................................... 1-35 Venue ........... : ................................................................................................. 1-36 Petition information ....................................................................................... 1-36 Notice ............................................................................................................. 1-36 Relief; service of order ................................................................................... 1-36 Limitation ....................................................................................................... 1-36 vi · Effect of other laws 504B.385 · · · · · · · · · · · Rent escrow action to remedy violations ........................................ 1-36 Escrow of rent ................................................................................................ 1-36 Counterclaim for possession .......................................................................... 1-37 Defenses ......................................................................................................... 1-37 Filing fee ........................................................................................................ 1-37 Notice of hearing ............................................................................................ 1-37 Hearing ........................................................................................................... 1-38 Release of rent prior to hearing ...................................................................... 1-38 Consolidation with an eviction action ............................................................ 1-38 Judgment ........................................................................................................ 1-38 Release of rent after hearing .......................................................................... 1-38 Retaliation; waiver not allowed ..................................................................... 1-38 504B.391 Violations of building repair orders ............................................... 1-39 · Noncompliance; fines .................................................................................... 1-39 · Criminal penalty ............................................................................................. 1-39 TENANT REMEDIES ACTION 504B.395 · · · · · · Procedure .......................................................................................... 1-39 Who may bring action .................................................................................... 1-39 Venue ............................................................................................................. 1-39 When action may be brought ......................................................................... 1-39 Landlord must be informed ............................................................................ 1-40 Summons and compliant required ................................................................. 1-40 Contents of complaint .................................................................................... 1-40 504B.401 Summons ........................................................................................... 1-40 · Contents ......................................................................................................... 1-40 · Service ............................................................................................................ 1-41 504B.411 Answer ................................................................................................ 1-41 504B.415 Defenses ............................................................................................. 1-41 504B.421 Hearing .............................................................................................. 1-41 504B.425 Judgment ........................................................................................... 1-41 504B.431 Service of Judgment ......................................................................... 1-42 504B.435 Landlord's right to collect rent suspended .................................... 1-42 504B.441 Residential tenant may not be penalized for complaint ................ 1-42 vii 504B.445 Administrator ....... · · · · · · · ............................................................................ 1-43 Appointment .................................................................................................. 1-43 Posting bond Expenses ........................................................................................................ 1-43 Powers ............................................................................................................ 1-43 Termination of administration ....................................................................... 1-44 Residential building repairs and services ....................................................... 1-44 Administrator's liability ................................................................................. 144 Dwelling's economic viability ....................................................................... 1-44 504B.451 Receivership revolving loan fund ................................................... 1-44 504B.455 Removal of administrator ................................................................ 1-44 · Petition by administrator ...................................................................... .......... 1-44 · Petition by a party .......................................................................................... 1-44 · Appointment of new administrator ................................................................ 1-45 504B.461 Termination of Administration ....................................................... 1-45 · Events of termination ..................................................................................... 1-45 · Accounting by administrator .......................................................................... 1-45 · Discharge of administrator ............................................................................. 1-45 504B.465 Waiver not allowed ........................................................................... 1-45 504B.471 Purpose to provide additional remedies ......................................... 1-45 Instruction to Revisor .............................. , ......................................................... 1-45 Repealer .............................................................................................................. 1-45 Effective date ...................................................................................................... 1-46 e 1999 APPLICANT SCREENING FEE REQUIREMENTS (CHAPTER 150, S.F. 1471) 504.301 · · · · Applicant screening fee ....................................................................... 1-47 Limit on number of applicant screening fees ................................................. 1-47 Return of applicant screening fee ................................................................... 1-47 Disclosures to applicant ................................................................................. 1-47 Remedies ....... . ................................................................................................. 1-47 Repealer ................................... 1-47 viii 1999 PRE-LEASE DEPOSIT REQUIREMENTS (CHAPTER 97, H.F. 1178) 504.38 Prelease Deposit .................................................................................... 1-48 · Definition ....................................................................................................... 1-48 · Limitations ..................................................................................................... 1-48 · Application on entry into rental agreement .................................................... 1-48 · Remedies ......................................................................................................... 1-48 B. EXCERPTS FROM THE MINNESOTA CRIMINAL CODE 609.5317 property; seizu res .............................................................................. 1-49 · Rental property ............................................................................................... 1-49 · Additional remedies ....................................................................................... 1-49 · Defenses ......................................................................................................... 1-49 · Limitations ..................................................................................................... 1-50 617.81 Nuisance, acts constituting; injunction; notice ................................... 1-50 · Injunction ....................................................................................................... 1-50 · Arts constituting a nuisance ........................................................................... 1-50 · Notice ............................................................................................................. 1-51 617.82 Agreed abatement plans; temporary order ........................................ 1-51 617.83 Injunction; order of abatement ........................................................... 1-52 617.84 Movable property .................................................................................. 1-52 617.85 Nuisance; motion to cancel lease ......................................................... 1-52 617.86 Contempt ............................................................................................... 1-53 617.87 Release of property ............................................................................... 1-53 C. EXCERPTS FROM THE MINNESOTA CLEAN AIR ACT 144.413 Definitions ............................................................................................ 1-54 · Scope .............................................................................................................. 1-54 · Public place .................................................................................................... 1-54 · Public meeting ............................................................................................... 1-54 · Smoking., ....................................................................................................... 1-54 144.414 Prohibitions · Public places .................................................................................................. 1-54 · Healthcare facilities and clinics ..................................................................... 1-54 144.415 Designation of smoking areas ............................................................ 1-55 ~ 144.416 Responsibilities of properties ............................................................. 1-55 TENANT--LANDLORD LAW AND RELATED LAWS A. TENANT--LANDLORD LAW 1. 1999 REVISIONS TO TENANT-LANDLORD LAW CHAPTER 199, ARTICLE 1, H.F NO. 2425, 3RD ENGROSSMENT: 81ST LEGISLATIVE SESSION (1999-2000) LANDLORD AND TENANT Sec. 1. [504B.001] DEFINITIONS. Subdivision 1. Applicability. For the purposes of this chapter, the terms defined in this section have the meanings given them. Subd. 2. Controlled Substance." ,, Controlled substance means a drug, substance, or immediate precursor in Schedules I through V of section 152.02. The term does not include distilled spirits, wine, malt beverages, intoxicating liquors, or tobacco. Subd. 3. Distress For Rent. "Distress for rent" means the act of a landlord seizing personal property of the tenant or other person to enforce payment of rent. Subd. 4. Evict Or Eviction. "Evict" or "eviction" means a summary court proceeding to remove a tenant or occupant from or otherwise recover possession of real property by the process of law set out in this chapter. Subd. 5. Housing-Related Neighborhood Organization. "Housing-related neighborhood organization" means a nonprofit corporation incorporated under chapter 317A that: (1) designates in its articles of incorporation or bylaws a specific geographic community to which its activities are limited; and (2) is formed for the purposes of promoting community safety, crime prevention, and housing quality in a nondiscriminatory manner. For purposes pf this chapter, an action taken by a neighborhood organization with the written permission of a residential tenant means, with respect to a building with multiple dwelling units, an action taken by the neighborhood organization with the written permission of the residential tenants ora majority of the Occupied units. Minnesota Health & Housing Alliance Second Edition 1-1 Subd. 6. Inspector. "Inspector" means the person charged by the governing body of the political subdivision in which a residential building is situated, with the responsibility of enforcing provisions of local law, the breach of which could constitute a violation as defined in subdivision 14, clause (1). If there is no such person, "inspector" means the county agent of a board of health as authorized under section 145A.04 or the chair of the board of county commissioners, and in the case of a manufactured home park. the state department of health or its designee. Subd. 7. Landlord. "Landlord" means an owner of real property, a contract for deed vendee, receiver, executor, trustee, lessee, agent, or other person directly or indirectly in control of rental property. Subd. 8. Lease. "Lease" means an oral or written agreement creating a tenancy in real property. Subd. 9. License. "License" means a personal privilege to do a particular act or series of acts on real property without possessing any estate or interest in real property. It may be created in writing or orally. Subd. 10. Person. "Person" means a natural person, corporation, limited liability company, partnership, joint enterprise, or unincorporated association. Subd. 11. Residential Building. "Residential building" means: (1) a building used in whole or in part as a dwelling, including single-family homes, multiple-family units such apartments, and structures containing both dwelling units and units used for nondwelling purposes, and includes a manufactured home park; or (2) an unoccupied building which was previously used in whole or in part as a dwelling and which constitutes a nuisance under section 561.01. Subd. 12. Residential Tenant. "Residential tenant" means a person who is occupying a dwelling in a residential building under a lease or contract, whether oral or written, that requires the payment of money or exchange of services, all other regular occupants of that dwelling unit, or a resident of a manufactured home park. Subd. 13. Tenancy At Will. "Tenancy at will" means a tenancy in which the tenant holds possession by permission of the landlord but without a fixed ending date. Subd. 14. Violation. "Violation" means: (1) a violation of any state, county or city health, safety, housing, building, fire prevention, or housing maintenance code applicable to the building; (2) a violation of any of the covenants set forth in section 13, subdivision 1, clauses ( 1 ) or (2), or in section 15, subdivision 1; or (3) a violation of an oral or written agreement, lease, or contract for the rental ora dwelling in a building. Minnesota Health & Housing Alliance Second Edition 1-2 Subd. 15. Writ Of Recovery Of Premises And Order To Vacate. "Writ of recovery of premises and order to vacate" means thc writ set out in section $2. LEASING AND RENT Sec. 2. [504B.1011 DISTRESS FOR RENT. The remedy of distress for rent is abolished. Sec. 3. [504B.111] WRITTEN LEASE REQUIRED; PENALTY. A landlord of a residential building with 12 or more residential units must have a written lease for each unit rented to a residential tenant. Notwithstanding any other state law or city ordinance to the contrary, a landlord may ask for the tenant's full name and date of birth on the lease and application. A landlord who fails to provide a lease, as required under this section, is guilty of a petty misdemeanor. Sec. 4. [504B.115] TENANT TO BE GIVEN COPY OF LEASE. Subdivision 1. Copy Of Written Lease To Tenant. Where there is a wrkten lease, a landlord must give a copy to a tenant occupying a dwelling unit whose signature appears on the lease agreement. The landlord may obtain a signed and dated receipt, either as a separate document or an acknowledgment included in the lease agreement itself, from the tenant acknowledging that the tenant has received a copy of the lease. This signed receipt or acknowledgment is prima facie evidence that the tenant has received a copy of the lease. Subd. 2. Legal Action To Enforce Lease. In any legal action to enforce a written lease, except for nonpayment of rent, disturbing the peace, malicious destruction of property, or a violation of section 15, it is a defense for the tenant to prove that the landlord failed to comply with subdivision 1. This defense may be overcome if the landlord proves that the tenant had actual knowledge of the term or terms of the lease upon which any legal action is based. Sec. 5. [504B.121] TENANT MAY NOT DENY TITLE; EXCEPTION. A tenant in possession of real property under a lawful lease may not deny the landlord's title in an action brought by the landlord to recover possession of the property. This prohibition does not apply to a tenant who, prior to entering into the lease, possessed the property under a claim of title that was adverse or hostile to that of the landlord. Sec. 6. [504B.125] PERSON IN POSSESSION LIABLE FOR RENT; EVIDENCE. Every person in possession of land out of which any rent is due, whether it was originally demised in fee, or for any other estate of freehold or for any term of years, shall be liable for the amount, or proportion of rent due from the land in possession, although it be only a part of the land originally demised. Such rent may be recovered in a civil action, and the deed, demise, or other instrument showing the provisions of the lease may be used in evidence by either party to prove the amount due from the defendant. Nothing herein Minnesota Health & Housing Alliance Second Edition 1-3 contained shall deprive landlords of any other legal remedy for the recovery of rent, whether secured to them by their leases or provided by law. Sec. 7. [504B.1311 RENT LIABILITY; UNINHABITABLE BUILDINGS. A tenant or occupant of a building that is destroyed or becomes uninhabitable or unfit for occupancy through no fault or neglect of the tenant or occupant may vacate and surrender such a building. A tenant or occupant may expressly agree otherwise except as prohibited by section 13. Sec. 8. 1504B.1351 TERMINATING TENANCY AT WILL. (a) A tenancy at will may be terminated by either party by giving notice in writing. The time of the notice must be at least as long as the interval between the time rent is due or three months, whichever is less. (b) If a tenant neglects or refuses to pay rent due on a tenancy at will, the landlord may terminate the tenancy by giving the tenant 14 days notice to quit in writing~ Sec. 9. [504B.141] URBAN REAL ESTATE; HOLDING OVER. When a tenant of urban real estate, or any interest therein, holds over and retains possession after expiration of the lease without the landlord's express agreement, no tenancy for any period other than the shortest interval between the times of payment of rent under the terms of the expired lease shall be implied. Sec. 10. [504B.145] RESTRICTION ON AUTOMATIC RENEWALS OF LEASES. Notwithstanding the provisions of any residential lease, in order to enforce any automatic renewal clause of a lease of an original term of two months or more which states, in effect, that the term shall be deemed renewed for a specified additional period of time of two months or more unless the tenant gives notice to the landlord of an intention to quit the premises at thc expiration of the term due to expire, the landlord must give notice to the tenant as provided in this section. The notice must be in writing and direct the tenant's attention to the automatic renewal provision of the lease. The notice must be served personally or mailed by certified mail at least 15 days, but not more than 30 days prior to thc time that the tenant is required to furnish notice of an intention to quit. Sec. 11. [504B.151] RESTRICTION ON RESIDENTIAL LEASE TERMS FOR BUILDINGS IN FINANCIAL DISTRESS. Once a landlord has received notice ora contract for deed cancellation under section 559.21 or notice ora mortgage foreclosure sale under chapter 580 or 582, the landlord may enter into a periodic residential lease agreement with a term of 6.23 two months or less or a fixed term residential tenancy not extending beyond the cancellation period or the landlord's period of redemption until: (1) the contract for deed has been reinstated or paid in full; (2) the mortgage default has been cured and the mortgage reinstated; (3) the mortgage has been satisfied; (4) the property has been redeemed from a foreclosure sale; or (5) a receiver has been appointed. Minnesota Health & Housing Alliance Second Edition 1-4 This section does not apply to a manufactured home park as defined in section 327C.01, subdivision 5. OBLIGATIONS AND COVENANTS Sec. 12. 1504B.155l TENANT MUST GIVE COLD WEATHER NOTICE BEFORE VACATION OF BUILDING. Except upon the termination of the tenancy, a tenant who, between November 15 and April 15, removes from, abandons, or vacates a building or any part thereof that contains plumbing, water, steam, or other pipes liable to injury from freezing, without first giving to the landlord three days' notice of intention so to remove is guilty ora misdemeanor. Sec. 13. [504B. 161] COVENANTS OF LANDLORD OR LICENSOR. Subdivision 1. Requirements. In every lease or license of residential premises, the landlord or licensor covenants: (1) that the premises and all common areas are fit for the use intended by the parties; (2) to keep the premises in reasonable repair during the term of the lease or license, except when the disrepair has been caused by the willful, malicious, or irresponsible conduct of the tenant or licensee or a person under the direction or control of the licensee; and (3) to maintain the premises in compliance with the applicable health and safety laws of the state, including the weatherstripping, caulking, storm window, and storm door energy efficiency standards for renter-occupied residences prescribed by section 216C.27, subdivisions 1 and 3, and of the local units of government where the premises are located during the term of the lease or license, except when violation of the health and safety laws has been caused by the willful, malicious, or irresponsible conduct of the tenant or licensee or a person under the direction or control of the tenant or licensee. The parties to a lease or license of residential premises may not waive or modify the covenants imposed by this section. Subd. 2. Tenant Maintenance. The landlord or licensor may agree with the tenant or licensee that the tenant or licensee is to perform specified repairs or maintenance, but only if the agreement is supported by adequate consideration and set forth in a conspicuous writing. No such agreement, however, may waive the provisions of subdivision 1 or relieve the landlord or licensor of the duty to maintain common areas of the premises. Subd. 3. Liberal Construction. This section shall be liberally construed, and the opportunity to inspect the premises before concluding a lease or license shall not defeat the covenants established in this section. Subd. 4. Covenants Are In Addition. The covenants contained in this section are in addition to any covenants or conditions imposed by law or ordinance or by the terms of the lease or license. Minnesota Health & Housing Alliance Second Edition 1-5 Subd. 5. Injury To Third Parties. Nothing in this section shall be construed to alter the liability of the landlord or licensor of residential premises for injury to third parties. Subd. 6. Application. The provisions of this section apply only to leases or licenses of residential premises concluded or renewed on or after June 15, 1971. For the purposes of this section, estates at will shall be deemed to be renewed at the commencement of each rental period. Sec. 14. [504B.1651 UNLAWFUL DESTRUCTION; DAMAGES. (a) An action may be brought for willful and malicious destruction of leased residential rental property. The prevailing party may recover actual damages, costs, and reasonable attorney fees, as well as other equitable relief as determined by the court. (b) The remedies provided in this section are in addition to and shall not limit other rights or remedies available to landlords and tenants. Any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. Sec. 15. [504B.171] COVENANT OF LANDLORD AND TENANT NOT TO ALLOW UNLAWFUL ACTIVITIES. Subdivision 1. Terms Of Covenant. In every lease or license of residential premises, whether in writing or parol, the landlord or licensor and the tenant or licensee covenant that: (1) neither will: (i) unlawfully allow controlled substances in those premises or in the common area and curtilage of the premises; (ii) allow prostitution or prostitution-related activity as defined in section 617.80, subdivision 4, to occur on the premises or in the common area and curtilage of the premises; (iii) allow the unlawful use or possession ora firearm in violation of section 609.66, subdivision la, 609.67, or 624.713, on the premises or in the common area and curtilage of the premises; or (iv) allow stolen property or property obtained by robbery in those premises or in the common area and curtilage of the premises; and (2) the common area and curtilage of the premises will not be used by either the landlord or licensor or the tenant or licensee or others acting under the control of either to manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a controlled substance in violation of any criminal provision of chapter 152. The covenant is not violated when a person other than the landlord or licensor or the tenant or licensee possesses or allows controlled substances in the premises, common area, or curtilage, unless the landlord or licensor or the tenant or licensee knew or had reason to know of that activity. Subd. 2. Breach,Voids Right To Possession. A breach of the covenant created by subdivision 1 voids the tenant's or licensee's right to possession of the residential premises. All other provisions of the lease or license, including but not limited to the obligation to pay rent, remain in effect until the lease is terminated by the terms of the lease or operation of Minnesota Health & Housing Alliance Second Edition 1-6 law. If the tenant or licensee breaches the covenant created by subdivision 1, the landlord may bring, or assign to the county attorney of the county in which the residential premises are located, the right to bring an eviction action against the tenant or licensee. The assignment must be in writing on a form provided by the county attorney, and the county attorney may determine whether to accept the assignment. If the county attorney accepts the assignment of the landlord's right to bring an eviction action: (1) any court filing fee that would otherwise be required in an eviction action is waived; and (2) the landlord retains all the rights and duties, including removal of the tenant's or licensee's personal property, following issuance of the writ of recovery of premises and order to vacate and delivery of the writ to the sheriff for execution. Subd. 3. Waiver Not Allowed. The parties to a lease or license of residential premises may not waive or modify the covenant imposed by this section. Sec. 16. [504B.178] INTEREST ON SECURITY DEPOSITS; WITHHOLDING SECURITY DEPOSITS; DAMAGES; LIMIT ON WITHHOLDING LAST MONTH'S RENT. Subdivision 1. Applicability. Any deposit of money, the function of which is to secure the performance of a residential rental agreement or any part of such an agreement, other than a deposit which is exclusively an advance payment of rent, shall be governed by the provisions of this section. Subd. 2. Interest. Any deposit of money shall not be considered received in a fiduciary capacity within the meaning of section 82.17, subdivision 7, but shall be held by the landlord for the tenant who is party to the agreement and shall bear simple noncompounded interest at the rate of three percent per annum until May 1, 2001, and four percent per annum thereafter, computed from the first day of the next month following the full payment of the deposit to the last day of the month in which the landlord, in good faith, complies with the requirements of subdivision 3 or to the date upon which judgment is entered in any civil action involving the landlord's liability for the deposit, whichever date is earlier. Any interest amount less than $1 shall be excluded from the provisions of this section. Subd. 3. Return Of Security Deposit. (a) Every landlord shall: (1) within three weeks after termination of the tenancy; or (2) within five days of the date when the tenant leaves the building or dwelling due to the legal eondenmation of the building or dwelling in which the tenant lives for reasons not due to willful, malicious, or irresponsible conduct of the tenant, and after receipt of the tenant's mailing address or delivery instructions, return the deposit to the tenant, with interest thereon as provided in subdivision 2, or furnish to the tenant a written statement showing the specific reason for the withholding of the deposit or any portion thereof. (b) It shall be sufficient compliance with the time requirement of this subdivision if the deposit or written statement required by this subdivision is placed in the United States Minnesota Health & Housing Alliance Second Edition 1-7 mail as first class mail, postage prepaid, in an envelope with a proper return address, correctly addressed according to the mailing address or delivery instructions furnished by the tenant, within the time required by this subdivision. The landlord may withhold from the deposit only amounts reasonably necessary: (1) to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement; or (2) to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted. (c) In any action concerning the deposit, the burden of proving, by a fair preponderance of the evidence, the reason for withholding all or any portion of the deposit shall be on the landlord. Subd. 4. Damages. Any landlord who fails to: (1) provide a written statement within three weeks of termination of the tenancy; (2) provide a written statement within five days of the date when the tenant leaves the building or dwelling due to the legal condemnation of the building or dwelling in which the tenant lives for reasons not due to willful, malicious, or irresponsible conduct of the tenant; or (3) transfer or retum a deposit as required by subdivision 5, after receipt of the tenant's mailing address or delivery instructions, as required in subdivision 3, is liable to the tenant for damages in an amount equal to the portion of the deposit withheld by the landlord and interest thereon as provided in subdivision 2, as a penalty, in addition to the portion of the deposit wrongfully withheld by the landlord and interest thereon. Subd. 5. Return Of Deposit. Upon termination of the landlord's interest in the premises, whether by sale, assignment, death, appointment of receiver or otherwise, the landlord or the landlord's agent shall, within 60 days of termination of the interest or when the successor in interest is required to return or otherwise account for the deposit to the tenant, whichever occurs first, do one of the following acts, either of which shall relieve the landlord or agent of further liability with respect to such deposit: (1) transfer the deposit, or any remainder after any lawful deductions made under subdivision 3, with interest thereon as provided in subdivision 2, to the landlord's successor in interest and thereafter notify the tenant of the transfer and of the transferee's name and address; or (2) return the deposit, or any remainder after any lawful deductions made under subdivision 3, with interest thereon as provided in subdivision 2, to the tenant. Subd. 6. Successor In Interest. Upon termination of the landlord's interest in the premises, whether by sale, assignment, death, appointment of receiver or otherwise, the landlord's successor in interest shall have all of the rights and obligations of the landlord with respect to the deposit, except that if tenant does not object to the stated amount within 20 days after written notice to tenant of the amount of deposit being transferred or assumed, the obligation of the landlord's successor to return the deposit shall be limited to the amount contained in the notice. The notice shall contain a stamped envelope addressed to landlord's successor and may be given by mail or by personal service. Minnesota Health & Housing Alliance Second Edition 1-8 Subd. 7. Bad Faith Retention. The bad faith retention by a landlord of a deposit, the interest thereon, or any portion thereof, in violation of this section shall subject the landlord to punitive damages not to exceed $200 for each deposit in addition to the damages provided in subdivision 4. If the landlord has failed to comply with the provisions of subdivision 3 or 5, retention ora deposit shall be presumed to be in bad faith unless the landlord returns the deposit within two weeks after the commencement of any action for the recovery of the deposit. Subd. 8. Withholding Rent. No tenant may withhold payment of all or any portion of rent for the last payment period of a residential rental agreement, except an oral or written month to month residential rental agreement concerning which neither the tenant nor landlord has served a notice to quit, on the grounds that the deposit should serve as payment for the rent. Withholding all or any portion of rent for the last payment period of the residential rental agreement creates a rebuttable presumption that the tenant withheld the last payment on the grounds that the deposit should serve as payment for the rent. Any tenant who remains in violation of this subdivision after written demand and notice of this subdivision shall be liable to the landlord for the following: (1) a penalty in an amount equal to the portion of the deposit which the landlord is entitled to withhold under subdivision 3 other than to remedy the tenant's default in the payment of rent; and (2) interest on the whole deposit as provided in subdivision 2, in addition to the amount of rent withheld by the tenant in violation of this subdivision. Subd. 9. Action To Recover Deposit. An action, including an action in conciliation court, for the recovery ora deposit on rental property may be brought in the county where the rental property is located, or at the option of the tenant, in the county of the landlord's residence. Subd. 10. Waiver. Any attempted waiver of this section by a landlord and tenant, by contract or otherwise, shall be void and unenforceable. Subd. 11. Tenancies After July 1, 1973. The provisions of this section shall apply only to tenancies commencing or renewed on or after July 1, 1973. For the purposes of this section, estates at will shall be deemed to be renewed at the commencement of each rental period. Sec. 17. [504B.181] LANDLORD OR AGENT DISCLOSURE. Subdivision 1. Disclosure To Tenant. There shall be disclosed to the residential tenant either in the rental agreement or otherwise in writing prior to commencement of the tenancy the name and address of: (1) the person authorized to manage the premises; and (2) the landlord of the premises or an agent authorized by the landlord to accept service or process and receive and give receipt for notices and demands. Minnesota Health & Housing Alliance Second Edition 1-9 Subd. 2. Posting Of Notice. (a) A printed or typewritten notice containing the information which must be disclosed under subdivision 1 shall be placed in a conspicuous place on the premises. This subdivision is complied with if notices posted in compliance with other statutes or ordinances contain the information required by this section. (b) Unless the landlord is required to post a notice by section 471.9995, the landlord shall also place a notice in a conspicuous place on the property that states that a copy of the statement required by section 36 is available from the attorney general to any residential tenant upon request. Subd. 3. Service Of Process. If subdivisions 1 and 2 have not been complied with and a person desiring to make service of process upon or give a notice or demand to the landlord does not know the name and address of the' landlord or the landlord's agent, as that term is used in subdivision 1, then a caretaker or manager of the premises or an individual to whom rental payments for the premises are made shall be deemed to be an agent authorized to accept service of process and receive and give receipt for notices and demands on behalf of the landlord. In case of service of process upon or receipt of notice or demand by a person who is deemed to be an agent pursuant to this subdivision, this person shall give the process, notice, or demand, or a copy thereof, to the landlord personally or shall send it by certified mail, return receipt requested, to the landlord at the landlord's last known address. Subd. 4. Information Required For Maintenance Of Action. Except as otherwise provided in this subdivision, no action to recover rent or possession of the premises shall be maintained unless the information required by this section has been disclosed to the tenant in the manner provided in this section, or unless the information required by this section is known by or has been disclosed to the tenant at least 30 days prior to the initiation of such action. Failure by the landlord to post a notice required by subdivision 2, or section 471.9995 shall not prevent any action to recover rent or possession of the premises. Subd. 5. Notice To Landlord. Any residential tenant who moves from or subleases the premises without giving the landlord at least 30 days written notice shall void any provision of this section and section 19, as to that tenant. Subd. 6. Successors. This section extends to and is enforceable against any successor landlord or individual to whom rental payments for the premises are made. BUILDING INSPECTION REPORTS; BUILDING CODE VIOLATIONS; CONDEMNED BUILDINGS Sec. 18. [$04B.185] INSPECTION; NOTICE. Subdivision 1. Who May Request. If requested by a residential tenant, a housing- related neighborhood organization with the written permission of a residential tenant, or, if a residential building is unoccupied, by a housing-related neighborhood organization, an Minnesota Health & Housing Alliance Second Edition 1-10 inspection shall be made by the local authority charged with enforcing a code claimed to be violated. Subd. 2. Notice. (a) After the local authority has inspected the residential building under subdivision 1, the inspector shall inform the landlord or the landlord's agent and the residential tenant or housing-related neighborhood organization in writing of any code violations discovered. (b) A reasonable period of time must be allowed in which to correct the violations. Sec. 19. [504B.191] CODE VIOLATIONS RECORDS; DISCLOSURE. All code violation records pertaining to a particular parcel of real property and the buildings, improvements, and dwelling units located thereon kept by any state, county, or city agency charged by the governing body of the appropriate political subdivision with the responsibility for enforcing a state, county, or city health, housing, building, fire prevention, or housing maintenance code shall be available to all persons having a reasonable need for the information contained in the records relating to the premises, at reasonable times and upon reasonable notice to the custodian of the records, for inspection, examination, abstracting, or copying at the expense of the person obtaining the information. The persons to whom the records shall be available under this section include, but are not limited to, the following persons and their representatives: (1) any person having any legal or beneficial interest in the premises, including a tenant; (2) any person considering in good faith the lease or purchase of the premises; (3) any person authorized to request an inspection under section 18; and (4) a party to any action related to the premises, including actions maintained pursuant to sections 13, 15, or 58 to 72. Sec. 20. [504B.195] DISCLOSURE REQUIRED FOR OUTSTANDING INSPECTION AND CONDEMNATION ORDERS. Subdivision 1. Disclosure To Tenant. (a) Except as provided in subdivision 3. a landlord, agent, or person acting under the landlord's direction or control shall provide a Copy of all outstanding inspection orders for which a citation has been issued, pertaining to a rental unit or common area, specifying code violations issued under section 18, that the housing inspector identifies as requiring notice because the violations threaten the health or safety of the tenant, and all outstanding condemnation orders and declarations that the premises are unfit for human habitation to: (1) a tenant, either by delivery or by United States mail, postage prepaid, within 72 hours after issuance of the citation; (2) a person before signing a lease or paying rent or a security deposit to begin a new tenancy; and (3) a person prior to obtaining new ownership of the property subject to the order or declaration. The housing inspector shall indicate on the inspection order whether the violation threatens the health or safety of a tenant or prospective tenant. Minnesota Health & Housing Alliance Second Edition 1-11 (b) If an inspection order, for which a citation has been issued, does not involve code violations that threaten the health or safety of the tenants, the landlord, agent, or person acting under the landlord's control shall post a summary of the inspection order in a conspicuous place in each building affected by the inspection order, along with a notice that the inspection order will be made available by the landlord for review, upon a request of a tenant or prospective tenant. The landlord shall provide a copy of the inspection order for review by a tenant or a prospective tenant as required under this subdivision. Subd. 2. Penalty. If the landlord, agent, or person acting under the landlord's direction or control violates this section, the tenant is entitled to remedies provided by section 8.31, subdivision 3a, and other equitable relief as determined by the court. Subd. 3. Exception. A landlord, agent, or person acting under the landlord's direction or control is not in violation of this section if: (1) the landlord, agent, or person acting under the landlord's direction o~: control has received only an initial order to repair; (2) the time allowed to complete the repairs, including any extension of the deadline, has not yet expired, or less than 60 days has elapsed since the expiration date of repair orders and any extension or no citation has been issued; or (3) the landlord, agent, or person acting under the landlord's direction or control completes the repairs within the time given to repair, including any extension of the deadline. Subd. 4. Landlord's Defense. It is an affirmative defense in an action brought under this section for the landlord, agent, or person acting under the landlord's control to prove that disclosure was made as required under subdivision 1. Subd. 5. Remedies Additional. The remedies provided in this section are in addition to and shall not limit other rights or remedies available to landlords and tenants. Any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. Sec. 21. [504B.204] ACTION FOR RENTAL OF CONDEMNED RESIDENTIAL PREMISES. (a) A landlord, agent, or person acting under the landlord's direction or control may not accept rent or a security deposit for residential rental property fi.om a tenant after the leased premises have been condemned or declared unfit for human habitation by the applicable state or local authority, if the tenancy commenced after the premises were condemned or declared unfit for human habitation. If a landlord, agent, or a person acting under the landlord's direction or control violates this section, the landlord is liable to the tenant for actual damages and an amount equal to three times the amount of all money collected fi.om the tenant after date of condemnation or declaration, plus costs and attorney fees. (b) The remedies provided in this section are in addition to and shall not limit other rights or remedies available to landlords and tenants. Any provision, whether oral or written, Minnesota Health & Housing Alliance Second Edition 1-12 of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. TENANT'S RIGHTS Sec. 22. [504B.205] RESIDENTIAL TENANT'S RIGHT TO SEEK POLICE AND EMERGENCY ASSISTANCE. Subdivision 1. Definitions. In this section, "Domestic abuse" has the meaning given in section 518B.01, subdivision 2. Subd. 2. Emergency Calls Permitted. (a) A landlord may not: (1) bar or limit a residential tenant's right to call for police or emergency assistance in response to domestic abuse or any other conduct; or (2) impose a penalty on a residential tenant for calling for police or emergency assistance in response to domestic abuse or any other conduct. (b) A residential tenant may not waive and a landlord may not require the residential tenant to waive the residential tenant's right to call for police or emergency assistance. Subd. 3. Local Preemption. This section preempts any inconsistent local ordinance or rule including, without limitation, any ordinance or rule that: (1) requires an eviction after a specified number of calls by a residential tenant for police or emergency assistance in response to domestic abuse or any other conduct; or (2) provides that calls by a residential tenant for police or emergency assistance in response to domestic abuse or any other conduct may be used to penalize or charge a fee to a landlord. This subdivision shall not otherwise preempt any local ordinance or rule that penalizes a landlord for, or requires a landlord to abate, conduct on the premises that constitutes a nuisance or other disorderly conduct as defined by local ordinance or rule. Subd. 4. Residential Tenant Responsibility. This section shall not be construed to condone or permit any breach of a lease or of law by a residential tenant including, but not limited to, disturbing the peace and quiet of other tenants, damage to property, and disorderly conduct. Subd. 5. Residential Tenant Remedies. A residential tenant may bring a civil action for a violation of this section and recover from the landlord $250 or actual damages, whichever is greater, and reasonable attorney's fees. Subd. 6. Attorney General Authority. The attorney general has authority under section 8.31 to investigate and prosecute violations of this section. Sec. 23. [504B.2111 RESIDENTIAL TENANT'S RIGHT TO PRIVACY. Minnesota Health & Housing Alliance Second Edition 1-13 Subdivision 1. Definitions. For purposes of this section, "landlord" has the meaning defined in section 1, subdivision 7, and also includes the landlord's agent or other person acting under the landlord's direction and control. Subd. 2. Entry By Landlord. Except as provided in subdivision 5, a landlord may enter the premises rented by a residential tenant only for a reasonable business purpose and after making a good faith effort to give the residential tenant reasonable notice under the circumstances of the intent to enter. A residential tenant may not waive and the landlord may not require the residential tenant to waive the residential tenant's right to prior notice of entry under this section as a condition of entering into or maintaining the lease. Subd. 3. Reasonable Purpose. For purposes of subdivision 2, a reasonable business purpose includes, but is not limited to: (1) showing the unit to prospective residential tenants during the notice period before the lease terminates or after the current residential tenant has given notice to move to the landlord or the landlord's agent; (2) showing the unit to a prospective buyer or to an insurance representative; (3) performing maintenance work; (4) allowing inspections by state, county, or city officials charged in the enforcement of health, housing, building, fn'e prevention, or housing maintenance codes; (5) the residential tenant is causing a disturbance within the unit; (6) the landlord has a reasonable belief that the residential tenant is violating the lease within the residential tenant's unit; (7) prearranged housekeeping work in senior housing where 80 percent or more of the residential tenants are age 55 or older; (8) the landlord has a reasonable belief that the unit is being occupied by an individual without a legal right to occupy it; or (9) the residential tenant has vacated the unit. Subd. 4. Exception To Notice Requirement. Notwithstanding subdivision 2, a landlord may enter the premises rented by a residential tenant to inspect or take appropriate action without prior notice to the residential tenant if the landlord reasonably suspects that: (1) immediate entry is necessary to prevent injury to persons or property because of conditions relating to maintenance, building security, or law enforcement; (2) immediate entry is necessary to determine a residential tenant's safety; or (3) immediate entry is necessary in order to comply with local ordinances regarding unlawful activity occurring within the residential tenant's premises. Subd. 5. Entry Without Residential Tenant's Presence. If the landlord enters when the residential tenant is not present and prior notice has not been given, the landlord shall disclose the entry by placing a written disclosure of the entry in a conspicuous place in the premises. ~ Subd. 6. Penalty. Ifa landlord substantially violates subdivision 2, the residential tenant is entitled to a penalty which may include a rent reduction up to full rescission of the Minnesota Health & Housing Alliance Second Edition 1-14 lease, recovery of any damage deposit less any amount retained under section 16, and up to a $100 civil penalty for each violation. If a landlord violates subdivision 5, the residential tenant is entitled to up to a $100 civil penalty for each violation. A residential tenant shall follow the procedures in sections 56, 57, and 59 to 73 to enforce the provisions of this section. Subd. 7. Exemption. This section does not apply to residential tenants and landlords of manufactured home parks as defined in section 327C.01. UTILITIES INTERRUPTIONS; UNLAWFUL OUSTER Sec. 24. [504B.215] EMERGENCY CONDITIONS; LOSS OF ESSENTIAL SERVICES. Subdivision 1. Definitions. For the purposes of this section, "single-metered residential building" means a multiunit rental building with one or more separate residential living units where the utility service measured through a single meter provides service to an individual unit and to all or parts of common areas or other units. Subd. 2. Single-Meter Utility Service Payments. In a 22.24 residential leasehold contract entered into or renewed on or after August 1, 1995, the landlord ora single-metered residential building shall be the bill payer responsible, and shall be the customer of record contracting with the utility for utility services. The landlord must advise the utility provider that the utility services apply to a single-metered residential building. A failure by the landlord to comply with this subdivision is a violation of sections 13, subdivision 1, clause (1), and 25. This subdivision may not be waived by contract or otherwise. This subdivision does not require a landlord to contract and pay for utility service provided to each residential unit through a separate meter which accurately measures that unit's use only. Subd. 3. Procedure. (a) When a municipality, utility company, or other company supplying home heating oil, propane, natural gas, electricity, or water to a building has issued a final notice or has posted the building proposing to disconnect or discontinue the service to the building because a landlord who has contracted for the service has failed to pay for it or because a landlord is required by law or contract to pay for the service and fails to do so, a tenant or group of tenants may pay to have the service continued or reconnected as provided under this section. Before paying for the service, the tenant or group of tenants shall give oral or written notice to the landlord of the tenant's intention to pay after 48 hours, or a shorter period that is reasonable under the circumstances, if the landlord has not already paid for the service. In the case of oral notification, written notice shall be mailed or delivered to the landlord within 24 hours after oral notice is given. Co) In the case of natural gas, electricity, or water, if the landlord has not yet paid the bill by the time of the tenant's intended payment, or if the service remains discontinued, the tenant or tenants may pay thc outstanding bill for the most recent billing period, if the utility company or municipality will restore the service for at least one billing period. Minnesota Health & Housing Alliance Second Edition 1-15 (c) In the case of home heating oil or propane, if the landlord has not yet paid the bill by the time of the tenant's intended payment, or if the service remains discontinued, the tenant or tenants may order and pay for one month's supply of the proper grade and quality of oil or propane. (d) After submitting receipts for the payment to the landlord, a tenant may deduct the amount of the tenant's payment from the rental payment next paid to the landlord. Any amount paid to the municipality, utility company, or other company by a tenant under this subdivision is considered payment of rent to the landlord for purposes of section 39. Subd. 4. Limitations; Waiver Prohibited; Rights As Additional. The tenant rights under this section: (1) do not extend to conditions caused by the willful, malicious, or negligent conduct of the tenant or of a person under the tenant's direction or control; (2) may not be waived or modified; and (3) are in addition to and do not limit other fights which may be available to the tenant in law or equity, including the right to damages and the right to restoration of possession of the premises under section 39. Sec. 25. [504B.221] UNLAWFUL TERMINATION OF UTILITIES. (a) Except as otherwise provided in this section, if a landlord, an agent, or other person acting under the landlord's direction or control, interrupts or causes the interruption of electricity, heat, gas, or water services to the tenant, the tenant may recover from the landlord treble damages or $500, whichever is greater, and reasonable attorney's fees. It is a defense to any action brought under this section that the interruption was the result of the deliberate or negligent act or omission of a tenant or anyone acting under the direction or control of the tenant. The tenant may recover only actual damages under this section if: (1) the tenant has not given the landlord, an agent, or other person acting under the landlord's direction or control, notice of the interruption; or (2) the landlord, an agent, or other person acting under the landlord's direction or control, after receiving notice of the interruption fi.om the tenant and within a reasonable period of time after the interruption, taking into account the nature of the service interrupted and the effect of the interrupted service on the health, welfare, and safety of the tenants, has reinstated or made a good faith effort to reinstate the service or has taken other remedial action; or (3) the interruption was for the purpose of repairing or correcting faulty or defective equipment or protecting the health and safety of the occupants of the premises involved and the service was reinstated or a good faith effort was made to reinstate the service or other remedial action was taken by the landlord, an agent, or other person acting under the landlord's direction or control within a reasonable period of time, taking into account the nature of the defect, the nature of the service interrupted, and the effect of the interrupted service on the health, welfare, and safety of the tenants. (b) The remedies provided in this section are in addition to and shall not limit other rights or remedies available to landlords and tenants. Any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. The provisions of this section also apply to occupants Minnesota Health & Housin9 Alliance Second Edition 1-16 and owners of residential real property which is the subject of a mortgage foreclosure or contract for deed cancellation and as to which the period for redemption or reinstatement of the contract has expired. Sec. 26. [504B.225] INTENTIONAL OUSTER AND INTERRUPTION OF UTILITIES; MISDEMEANOR. A landlord, an agent, or person acting under the landlord's direction or control who unlawfully and intentionally removes or excludes a tenant from lands or tenements or intentionally interrupts or causes the interruption of electrical, heat, gas, or water services to the tenant with intent to unlawfully remove or exclude the tenant from lands or tenements is guilty of a misdemeanor. In any trial under this section, it shall be presumed that the landlord, agent, or other person acting under the landlord's direction or control interrupted or caused the interruption of the service with intent to unlawfully remove or exclude the tenant from lands or tenements, if it is established by evidence that the landlord, an agent, or other person acting under the landlord's direction or conu'ol intentionally interrupted or caused the interruption of the service to the tenant. The burden is upon the landlord to rebut the presumption. The remedies provided in this section are in addition to and shall not limit other fights or remedies available to landlords and tenants. Any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. The provisions of this section also apply to occupants and owners of residential real property which is the subject of a mortgage foreclosure or contract for deed cancellation and as to which the period for redemption or reinstatement of the contract has expired. Sec. 27. [504B.231] DAMAGES FOR OUSTER. (a) If a landlord, an agent, or other person acting under the landlord's direction or control unlawfully and in bad faith removes, excludes, or forcibly keeps out a tenant from a residential premises, the tenant may recover from the landlord treble damages or $500, whichever is greater, and reasonable attorney's fees. (b) The remedies provided in this section are in addition to and shall not limit other rights or remedies available to landlords and tenants. Any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. The provisions of this section also apply to occupants and owners of residential real property which is the subject ora mortgage foreclosure or contract for deed cancellation and as to which the period for redemption or reinstatement of the contract has expired. RESIDENTIAL TENANT REPORTS Sec. 28. [504B.235] DEFINITIONS. 30. Subdivision ~. Applicability. The definitions in this section apply to sections 28 to Minnesota Health & Housing Alliance Second Edition 1-17 Subd. 2. Proper Identification. "Proper identification" means information generally considered sufficient to identify a person, including a Minnesota driver's license, a Minnesota iden.tification card, other forms of identification provided by a unit of government, a notarized statement of identity with a specimen signature of the person, or other reasonable form of identification. Subd. 3. Residential Tenant Report. "Residential tenant report" means a written, oral, or other communication by a residential tenant screening service that includes information concerning an individual's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, and that is collected, used, or expected to be used for the purpose of making decisions relating to residential tenancies or residential tenancy applications. Subd. 4. Residential Tenant Screening Service. "Residential tenant screening service" means a person or business regularly engaged in the practice of gathering, storing, or disseminating information about tenants or assembling tenant reports for monetary fees, dues, or on a cooperative nonprofit basis. Sec. 29. [504B.2411 RESIDENTIAL TENANT REPORTS; DISCLOSURE AND CORRECTIONS. Subdivision 1. Disclosures Required. (a) Upon request and proper identification, a residential tenant screening service must disclose the following information to an individual: (1) the nature and substance of all information in its files on the individual at the time of the request; and (2) the sources of the information. (b) A residential tenant screening service must make the disclosures to an individual without charge if information in a residential tenant report has been used within the past 30 days to deny the rental or increase the security deposit or rent of a residential housing unit to the individual. If the residential tenant report has not been used to deny the rental or increase the rent or security deposit of a residential housing unit within the past 30 days, the residential tenant screening service may impose a reasonable charge for making the disclosure required under this section. The residential tenant screening service must notify the residential tenant of the amount of the charge before furnishing the information. The charge may not exceed the amount that the residential tenant screening service would impose on each designated recipient of a residential tenant report, except that no charge may be made for notifying persons of the deletion of information which is found to be inaccurate or which can no longer be verified. (c) Files maintained on a residential tenant must be disclosed promptly as established in paragraphs (1) to (4). (1) A residential tenant file must be disclosed in person, during normal business hours, at the location where the residential tenant screening service maintains its files, if the residential tenant appears in person and furnishes proper identification at that time. (2) A residential tenant file must be disclosed by mail, if the residential tenant makes a written request with proper identification for a copy of the information contained in the Minnesota Health & Housing Alliance Second Edition 1-18 residential tenant report and requests that the information be sent to a specified address. A disclosure made under this paragraph shall be deposited in the United States mail, postage prepaid, within five business days after the written request for disclosure is received by the residential tenant screening service. A residential tenant screening service complying with a request for disclosure under this paragraph shall not be liable for disclosures to third parties caused by mishandling mail, provided that the residential tenant file information is mailed to the address specified by the residential tenant in the request. (3) A summary of the information in a residential tenant file must be disclosed by telephone, if the residential tenant has made a written request with proper identification for telephone disclosure. (4) Information in a residential tenant's file required to be disclosed in writing under this subdivision may be disclosed in any other form including electronic means if authorized by the residential tenant and available from the residential tenant screening service. S ubd. 2. Corrections. If the completeness or accuracy of an item of information contained in an individual's file is disputed by the individual, the residential'tenant screening service must reinvestigate and record the current status of the information. If the information is found to be inaccurate or can no longer be verified, the residential tenant screening service must delete the information from the individual's file and residential tenant report. At the request of the individual, the residential tenant screening service must give notification of the deletions to persons who have received the residential tenant report within the past six months. Subd. 3. Explanations. The residential tenant screening service must permit an individual to explain any eviction report or any disputed item not resolved by reinvestigation in a residential tenant report. The explanation must be included in the residential tenant report. The residential tenant screening service may limit the explanation to no more than 100 words. Subd. 4. Court File Information. (a) Ifa residential tenant screening service includes information from a court file on an individual in a residential tenant report, the report must provide the full name and date of birth of the individual in any case where the court file includes the individual's full name and date of birth, and the outcome of the court proceeding must be accurately recorded in the residential tenant report including the specific basis of the court's decision, when available. Whenever the court supplies information from a court file on an individual, in whatever form, the court shall include the full name and date of birth of the individual, if that is indicated on the court file or summary, and information on the outcome of the court proceeding, including the specific basis of the court's decision, coded as provided in subdivision 5 for the type of action, when it becomes available. The residential tenant screening service is not liable under section 30 if the residential tenant screening service reports complete and accurate information as provided by the court. (b) A residential tenant screening service shall not provide residential tenant reports containing information on eviction actions in the second and fourth judicial districts, unless the residential tenant report accurately records the outcome of the proceeding or other disposition of the eviction action such as settlement, entry of a judgment, default, or Minnesota Health & Housing Alliance Second Edition 1-19 dismissal of the action. Subd. 5. Eviction Action Coding. The court shall indicate on the court file or any summary of a court file the specific basis of the court's decision in an eviction action according to codes developed by the court that, at a minimum, indicates if the basis of the court's decision is nonpayment of rent, a violation of the covenants under section 13 or 15, other breach of a lease agreement, or a counterclaim for possession of the premises under section 57. Subd. 6. Information To Residential Tenant. If the landlord uses information in a residential tenant report to deny the rental or increase the security deposit or rent of a residential housing unit, the landlord must inform the prospective residential tenant of the name and address of the tenant screening service that provided the residential tenant report. Sec. 30. [504B.245l TENANT REPORT; REMEDIES. The remedies provided in section 8.31 apply to a violation of section 29. A residential tenant screening service or landlord in compliance with the provisions of the Fair Credit Reporting Act, United States Code, title 15, section 1681, et seq., is considered to be in compliance with section 29. MISCELLANEOUS RIGHTS Sec. 31. [504B.251] RECORDING OF NOTICE OF CANCELLATION OF LEASES. Where a lease has been duly recorded, the county recorder must record a copy of the notice of cancellation or termination of the lease that has been presented for recording by the landlord, landlord's agent, or attorney. The notice must be accompanied by proof of service and an affidavit of the landlord or the landlord's agent or attorney stating that the tenant has not complied with the terms of the notice. This notice is prima facie evidence of the facts stated in it. Sec. 32. [504B.255] TERMINATION NOTICE REQUIREMENT FOR FEDERALLY SUBSIDIZED HOUSING. The landlord of federally subsidized rental housing must give residential tenants of federally subsidized rental housing a one-year written notice under the following conditions: (1) a federal section 8 contract will expire; (2) the landlord will exercise the option to terminate or not renew a federal section 8 contract and mortgage; (3) the landlord will prepay a mortgage and the prepayment will result in the termination of any federal use restrictions that apply to the housing; or (4) the landlord will terminate a housing subsidy program. The notice shall he provided at the commencement of the lease if the lease commences less than one year before any of the conditions in clauses (1) to (4) apply. Minnesota Health & Housing Alliance Second Edition 1-20 Sec. 33. [504B.261] PETS IN SUBSIDIZED HANDICAPPED ACCESSIBLE RENTAL HOUSING UNITS. In a multiunit residential building, a tenant of a handicapped accessible unit, in which the tenant or the unit receives a subsidy that directly reduces or eliminates the tenant's rent responsibility, must be allowed to have two birds or one spayed or neutered dog or one spayed or neutered cat. A renter under this section may not keep or have visits from an animal that constitutes a threat to the health or safety of other individuals, or causes a noise nuisance or noise disturbance to other renters. The landlord may require the renter to pay an additional damage deposit in an amount reasonable to cover damage likely to be caused by the animal. The deposit is refundable at any time the renter leaves the unit of housing to the extent it exceeds the amount of damage actually caused by the animal. Sec. 34. [504B.265] TERMINATION OF LEASE UPON DEATH OF TENANT. Subdivision 1. Termination Of Lease. Any party to a lease of residential premises other than a lease at will may terminate the lease prior to its expiration date in the manner provided in subdivision 2 upon the death of the tenant or, if there is more than one tenant, upon the death of all tenants. Subd. 2. Notice. Either the landlord or the personal representative of the tenant's estate may terminate the lease upon at least two months' written notice, to be effective on the last day of a calendar month, and hand delivered or mailed by postage prepaid, first class United States mail, to the address of the other party. The landlord may comply with the notice requirement of this subdivision by delivering or mailing the notice to the premises formerly occupied by the tenant. The termination of a lease under this section shall not relieve the tenant's estate from liability either for the payment of rent or other sums owed prior to or during the notice period, or for the payment of amounts necessary to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted. Subd. 3. Waiver Prohibited. Any attempted waiver by a landlord and tenant or tenant's personal representative, by contract or otherwise, of the right of termination provided by this section, and any lease provision or agreement requiring a longer notice period than that provided by this section, shall be void and unenforceable; provided, however, that the landlord and tenant or tenant's personal representative may agree to otherwise modify the specific provisions of this section. Subd. 4. Applicability. The provisions of this section apply to leases entered into or renewed after May 12, 1981. Sec. 35. [504B.271] TENANT'S PERSONAL PROPERTY REMAINING IN PREMISES. Subdivision 1. Abandoned Property. Ifa tenant abandons rented premises, the landlord may take possession of the tenant's personal property remaining on the premises, Minnesota Health & Housing Alliance Second Edition 1-21 and shall store and care for the property. The landlord has a claim against the tenant for reasonable costs and expenses incurred in removing the tenant's property and in storing and caring for the property. The landlord may sell or otherwise dispose of the property 60 days after the landlord receives actual notice of the abandonment, or 60 days after it reasonably appears to the landlord that the tenant has abandoned the premises, whichever occurs last, and may apply a reasonable amount of the proceeds of the sale to the removal, care, and storage costs and expenses or to any claims authorized pursuant to section 16, subdivision 3, paragraphs (a) and (b). Any remaining proceeds of any sale shall be paid to the tenant upon written demand. Prior to the sale, the landlord shall make reasonable efforts to notify the tenant of the sale at least 14 days prior to the sale, by personal service in writing or sending written notification of the sale by certified mail, return receipt requested, to the tenant's last known address or usual place of abode, if known by the landlord, and by posting notice of the sale in a conspicuous place on the premises for at least two weeks. Subd. 2. Landlord's Punitive Damages. If a landlord, an agent, or other person acting under the landlord's direction or control, in possession of a tenant's personal property, fails to allow the tenant to retake possession of the property within 24 hours after written demand by the tenant or the tenant's duly authorized representative or within 48 hours, exclusive of weekends and holidays, after written demand by the tenant or a duly authorized representative when the landlord, the landlord's agent or person acting under the landlord's direction or control has removed and stored the personal property in accordance with subdivision 1 in a location other than the premises, the tenant shall recover from the landlord punitive damages not to exceed $300 in addition to actual damages and reasonable attorney's fees. In determining the amount of punitive damages the court shall consider (1) the nature and value of the property; (2) the effect the deprivation of the property has had on the tenant; (3) if the landlord, an agent, or other person acting under the landlord's direction or control unlawfully took possession of the tenant's property; and (4) if the landlord, an agent, or other person under the landlord's direction or control acted in bad faith in failing to allow the tenant to retake possession of the property. The provisions of this subdivision do not apply to personal property which has been sold or otherwise disposed of by the landlord in accordance with subdivision 1, or to landlords who are housing authorities, created, or authorized to be created by sections 469.001 to 469.047, and their agents and employees, in possession of a tenant's personal property, except that housing authorities must allow the tenant to retake possession of the property in accordance with this subdivision. Snbd. 3. Storage. If the landlord, an agent, or other person acting under the landlord's direction or control has unlawfully taken possession of a tenant's personal property the landlord shall be responsible for paying the cost and expenses relating to the removal, storage, or care of the property. Subd. 4. Remedies Additional. The remedies provided in this section are in addition to and shall not limit other rights or remedies available to landlords and tenants. Any Minnesota Health & Housing Alliance Second Edition 1-22 provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. The provisions of this section also apply to occupants and owners of residential real property which is the subject of a mortgage foreclosure or 34.25 contract for deed cancellation and as to which the period for 34.26 redemption or reinstatement of the contract has expired. Sec. 36. [504B.275] ATTORNEY GENERAL'S STATEMENT; DISTRIBUTION. In this section, "residential tenant" does not include residents of manufactured home parks as defined in section 327C.01, subdivision 9. The attorney general shall prepare and make available to the public a statement which summarizes the significant legal rights and obligations of landlords and residential tenants of rental dwelling units. The statement shall include descriptions of the significant provisions of this chapter. The statement shall notify residential tenants in public housing to consult their leases for additional rights and obligations they may have under federal law. The statement shall include the telephone number and address of the attorney general for further information. The attorney general shall annually revise the statement provided in this section as necessary to ensure that it continues accurately to describe the statutory and case law governing the rights and duties of landlords and residential tenants of rental dwelling units. After preparing the statement for the first time and after each annual revision of the statement, the attorney general shall hold a public meeting to discuss the statement and receive comments on its contents before it is issued. When preparing the statement and evaluating public comment, the attorney general shall be guided by the legislature's intent that the statement be brief, accurate, and complete in identifying significant legal fights and obligations, and written using words with common, everyday meanings. EVICTION ACTIONS Sec. 37. [504B.281] FORCIBLE ENTRY AND UNLAWFUL DETAINER PROHIBITED. No person may occupy or take possession of real property except where occupancy or possession is allowed by law, and in such cases, the person may not enter by force, but only in a peaceable manner. Sec. 38. [504B.2851 EVICTION ACTIONS; GROUNDS; RETALIATION DEFENSE; COMBINED ALLEGATIONS. Subdivision 1. Grounds. The person entitled to the premises may recover possession by eviction when: (1) any person holds over real property: (i) after a sale of the property on an execution or judgment; (ii) on foreclosure ora mortgage and expiration of the time for redemption; or (iii) after termination of contract to convey the property, provided that if the person holding the real property after the expiration of the time for redemption or termination is a tenant, the person has received: Minnesota Health & Housing Alliance Second Edition 1-23 (A) at least one month's written notice to vacate no sooner than one month after the expiration of the time for redemption or termination, provided that the tenant pays the rent and abides by all terms of the lease; or (B) at least one month's written notice to vacate no later than the date of the expiration of the time for redemption or termination, which notice shall also state that the sender will hold the tenant harmless for breaching the lease by vacating the premises if the mortgage is redeemed or the contract is reinstated; (2) any person holds over real property after termination of the time for which it is demised or leased to that person or to the persons under whom that person holds possession, contrary to the conditions or covenants of the lease or agreement under which that person holds, or after any rent becomes due according to the terms of such lease or agreement; or (3) any tenant at will holds over after the termination of the tenancy by notice to quit. Subd. 2. Retaliation Defense. It is a defense to an action for recovery of premises following the alleged termination of a tenancy by notice to quit for the defendant to prove by a fair preponderance of the evidence that: (1) the alleged termination was intended in whole or part as a penalty for the defendant's good faith attempt to secure or enforce fights under a lease or contract, oral or written, under the laws of the state or any of its governmental subdivisions, or of the United States; or (2) the alleged termination was intended in whole or part as a penalty for the defendant's good faith report to a governmental authority of the plaintiff's violation of a health, safety, housing, or building code or ordinance. If the notice to quit was served within 90 days of the date of an act of the tenant coming within the terms of clause (1) or (2) the burden of proving that the notice to quit was not served in whole or part for a retaliatory purpose shall rest with the plaintiff. Subd. 3. Rent Increase As Penalty. In any proceeding for the recovery of premises upon the ground of nonpayment of rent, it is a defense if the tenant establishes by a preponderance of the evidence that the plaintiff increased the tenant's rent or decreased the services as a penalty in whole or part for any lawful act of the tenant as described in subdivision 2, providing that the tenant tender to the court or to the plaintiffthe amount of rent due and payable under the tenant's original obligation. Subd. 4. Nonlimitation Of Landlord's Rights. Nothing contained in subdivisions 2 and 3 limits the right of the landlord pursuant to the provisions of subdivision 1 to terminate a tenancy for a violation by the tenant of a lawful, material provision of a lease or contract, whether written or oral, or to hold the tenant liable for damage to the premises caused by the tenant or a person acting under the tenant's direction or control. Subd. 5. Combining Allegations. (a) An action for recovery of the premises may combine the allegation of nonpayment of rent and the allegation of material violation of the lease, which shall be heard as alternative grounds. (b) In cases where rent is outstanding, a tenant is not required to pay into court the amount of rent in arrears, interest, and costs as required under section 39 to defend Minnesota Health & Housing Alliance Second Edition 1-24 against an allegation by the landlord that the tenant has committed a material violation of the lease. (c) If the landlord does not prevail in proving material violation of the lease, and the landlord has also alleged that rent is due, the tenant shall be permitted to present defenses to the court that the rent is no.t owing. The tenant shall be given up to seven days of additional time to pay any rent determined by the court to be due. The court may order the tenant to pay rent and any costs determined to be due directly to the landlord or to be deposited with the court. Sec. 38. [504B.291] EVICTION ACTION FOR NONPAYMENT; REDEMPTION; OTHER RIGHTS. Subdivision 1. Action To Recover. (a) A landlord may bring an eviction action for nonpayment of rent irrespective of whether the lease contains a right of reentry clause. Such an eviction action is equivalent to a demand for the rent. In such an action, unless the landlord has also sought to evict the tenant by alleging a material violation Of the lease under section 38, subdivision 5, the tenant may, at any time before possession has been delivered, redeem the tenancy and be restored to possession by paying to the landlord or bringing to court the amount of the rent that is in arrears, with interest, costs of the action, and an attorney's fee not to exceed $5, and by performing any other covenants of the lease. (b) If the tenant has paid to the landlord or brought into court the amount of rent in arrears but is unable to pay the interest, costs of the action, and attorney's fees required by paragraph (a), the court may permit the tenant to pay these amounts into court and be restored to possession within the same period of time, if any, for which the court stays the issuance of the order to vacate under section 49. (c) Prior to or after commencement of an action to recover possession for nonpayment of rent, the parties may agree only in writing that partial payment of rent in arrears which is accepted by the landlord prior to issuance of the order granting restitution of the premises pursuant to section 49 may be applied to the balance due and does not waive the landlord's action to recover possession of the premises for nonpayment of rent. (d) Rental payments under this subdivision must first be applied to rent claimed as due in the complaint from prior rental periods before applying any payment toward rent claimed in the complaint for the current rental period, unless the court finds that under the circumstances the claim for rent from prior rental periods has been waived. Subd. 2. Lease Greater Than 20 Years. (a) If the lease under which an action is brought under subdivision 1 is for a term of more than 20 years, the action may not begin until the landlord serves a written notice on the tenant and on all creditors with legal or equitable recorded liens on the property. The notice must state: (1) the lease will be canceled unless the amounts, agreements, and legal obligations in default are paid or performed within 30 days, or a longer specified period; and (2) if the amounts, agreements, and legal obligations~ are not paid or performed within that period, then the landlord may evict the tenant at the expiration of the period. (b) If the lease provides that the landlord must give more than the 30 days' notice provided in paragraph (a), then notice must be the same as that provided in the lease. Minnesota Health & Housing Alliance Second Edition 1-25 (c) The tenant may be restored to possession of the property under the terms of the original lease if, before the expiration of six months after the landlord obtains possession due to the tenant's abandonment or surrender of the property or the landlord prevails in the action, the tenant or a creditor holding a legal or equitable lien on the property: (1) pays to the landlord or brings into court the amount of rent then in arrears, with interest and the costs of the action; and (2) performs the other agreements or legal obligations that are in default. Subd. 3. Recording Of Eviction Or Ejectment Actions. Upon recovery of possession by the landlord in the action, a certified copy of the judgment shall, upon presentation, be recorded in the office of the county recorder of the county where the land is situated if um'egistered land or in the office of the registrar of titles of the county if registered land and upon recovery of possession by the landlord by abandonment or surrender by the tenant an affidavit by the landlord or the landlord's attorney setting forth the fact shall be recorded in a like manner and the recorded certified copy of the judgment or the recorded affidavit shall be prima facie evidence of the facts stated therein in reference to the recovery of possession by the landlord. Sec. 40. [504B.301] EVICTION ACTION FOR UNLAWFUL DETENTION. A person may be evicted if the person has unlawfully or forcibly occupied or taken possession of real property or unlawfully detains or retains possession of real property. A seizure under section 609.5317, subdivision 1, for which there is not a defense under section 609.5317, subdivision 3, constitutes unlawful detention by the tenant. Sec. 41. [504B.3051 NOTICE OF SEIZURE PROVISION. Landlords shall give written notice to tenants of the provision relating to seizures in section 40. Failure to give such notice does not subject the landlord to criminal or civil liability and is not a defense under section 609.5317, subdivision 3. Sec. 42. [504B.311] NO EVICTION ACTION IF TENANT HOLDS OVER FOR THREE YEARS. No person may bring an eviction action against an occupant of any premises where that occupant's lease, or the lease of that occupant's ancestors or predecessor in interest, was terminated more than three years before the beginning of the action and where the occupant of the premises or that person's ancestors or predecessor in interest were in quiet possession for three consecutive years immediately before the filing of the eviction. Sec. 43. [504B.315] RESTRICTIONS ON EVICTION DUE TO FAMILIAL STATUS. (a) As used in this section, "familial status" has the meaning given it in section 363.01, subdivision 19. Co) No residential tenant of residential premises may be evicted, denied a continuing tenancy, or denied a renewal of a lease on the basis of familial status commenced during the tenancy unless one year has elapsed from the commencement of the familial status and the landlord has given the tenant six months prior notice in writing, except in case of nonpayment of rent, damage to thc premises, disturbance of other tenants, or other breach of Minnesota Health & Housing Alliance Second Edition 1-26 the lease. Any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. Sec. 44. [504B.321] COMPLAINT AND SUMMONS. Subdivision 1. Procedure. (a) To bring an eviction action, the person complaining shall file a complaint with the court, stating the full name and date of birth of the person against whom the complaint is made, unless it is not known, describing the premises of which possession is claimed, stating the facts which authorize the recovery of possession, and asking for recovery thereof. (b) The lack of the full name and date of birth of the person against whom the complaint is made does not deprive the court of jurisdiction or make the complaint invalid. (c) The court shall issue a summons, commanding the person against whom the complaint is made to appear before the court on a day and at a place stated in the summons. (d) The appearance shall be not less than seven nor more than 14 days from the day of issuing the summons, except as provided by paragraph (b). (e) A copy of the complaint shall be attached to the summons, which shall state that the copy is attached and that the original has been filed. Subd. 2. Expedited Procedure. (a) In an eviction action brought under section 15 or on the basis that the tenant is causing a nuisance or other illegal behavior that seriously endangers the safety of other residents, their property, or the landlord's property, the person filing the complaint shall file an affidavit stating specific facts and instances in support of why an expedited hearing is required. (b) The complaint and affidavit shall be reviewed by a referee or judge and scheduled for an expedited hearing only if sufficient supporting facts are stated and they meet the requirements of this paragraph. (c) The appearance in an expedited heating shall be not less than five days nor more than seven days from the date the summons is issued. The summons, in an expedited hearing, shall be served upon the tenant within 24 hours of issuance unless the court orders otherwise for good cause shown. (d) If the court determines that the person seeking an expedited heating did so without sufficient basis under the requirements of this subdivision, the court shall impose a civil penalty of up to $500 for abuse of the expedited hearing process. Sec. 45. [504B.325] EXPEDITED RELIEF. A landlord or the landlord's agent may request expedited temporary relief by bringing an action under section 609.748 or filing a petition for a temporary restraining order, in conjunction with a complaint filed under section 44. Sec. 46. [504B.331] SUMMONS; HOW SERVED. (a) The summons must be served at least seven days before the date of the court appearance specified 'in section 44, in the manner provided for service of a summons in a civil action in district court. It may be served by any person not named a party to the action. Minnesota Health & Housing Alliance Second Edition 1-27 (b) If the defendant cannot be found in the county, the summons may be served at least seven days before the date of the court appearance by: ( 1 ) leaving a copy at the defendant's last usual place of abode with a person of suitable age and~iscretion residing there; or (2) if the defendant had no place of abode, by leaving a copy at the property described in the complaint with a person of suitable age and discretion occupying the premises. (c) Failure of the sheriff or constable to serve the defendant is prima facie proof that the defendant cannot be found in the county. (d) Where the defendant cannot be found in the county, service of the summons may be made upon the defendant by posting the summons in a conspicuous place on the property for not less than one week if: (1) the property described in the complaint is: (i) nonresidential and no person actually occupies the property; or (ii) residential and service has been attempted at least twice on different.days, with at least one of the attempts having been made between the hours of 6:00 p.m. and 10:00 p.m.; and (2) the plaintiff or the plaintiffs attorney has signed and filed with the court an affidavit stating that: (i) the defendant cannot be found, or that the plaintiff or the plaintiffs attorney believes that the defendant is not in the state; and (ii) a copy of the summons has been mailed to the defendant at the defendant's last known address if any is known to the plaintiff. (e) If the defendant or the defendant's attorney does not appear in court on the date of the appearance, the trial shall proceed. Sec. 47. [504B.335] ANSWER; TRIAL. (a) At the court appearance specified in the summons, the defendant may answer the complaint, and the court shall hear and decide the action, unless it grants a continuance of the trial as provided in section 48. (b) Either party may demand a trial by jury. (c) The proceedings in the action are the same as in other civil actions, except as provided in sections 37 to 54. (d) The court, in scheduling appearances and hearings under this section, shall give priority to any eviction brought under section 15, or on the basis that the defendant is a tenant and is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property. Sec. 48. [504B.341] CONTINUANCE OF TRIAL. (a) In an eviction action, the court, in its discretion, may grant a continuance of the trial for no more than six days unless all parties consent to longer continuance. (b) However, in all actions brought under section 38, other than actions on a written lease signed by both parties, the court shall continue the trial as necessary but for no more than three months if the defendant or the defendant's agent or attorney: Minnesota Health & Housing Alliance Second Edition 1-28 (1) states under oath that the defendant cannot proceed to trial because a material witness is not present; (2) names the witness; (3) states under oath that the defendant has made due exertion to obtain the witness; (4) states the belief that if the continuance is allowed the defendant will be able to procure the attendance of the witness at the trial or to obtain the witness's deposition; and (5) gives a bond that the plaintiffwill be paid all rent that accrues during the pendency of the action and all costs and damages that accrue due to the adjournment. Sec. 49. [504B.3451 JUDGMENT; EXECUTION. Subdivision 1. General. (a) If the court or jury finds for the plaintiff, the court shall immediately enter judgment that the plaintiff shall have recovery of the premises, and shall tax the costs against the defendant. The court shall issue execution in favor of the plaintiff for the costs and also immediately issue a writ of recovery of premises and order to vacate. (b) The court shall give priority in issuing a writ of recovery of premises and order to vacate for an eviction action brought under section 15 or on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property. (c) If the court or jury finds for the defendant, the court shall enter judgment for the defendant, tax the costs against the plaintiff, and issue execution in favor of the defendant. (d) Except in actions brought: (1) under section 39 as required by section 609.5317, subdivision 1; (2) under section 15; or (3) on the basis that the tenant is musing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property, upon a showing by the defendant that immediate restitution of the premises would work a substantial hardship upon the defendant or the defendant's family, the court shall stay the writ of recovery of premises and order to vacate for a reasonable period, not to exceed seven days. Subd. 2. Expedited Writ. If the court enters judgment for the plaintiff in an action brought under section 39 as required by section 609.5317, subdivision 1, the court may not stay issuance of the writ of recovery of premises and order to vacate unless the court makes written findings specifying the extraordinary and exigent circumstances that warrant staying the writ for a reasonable period, not to exceed seven days. Sec. 50. [504B.351] FAILURE OF JURY TO REACH A VERDICT. If the jury cannot agree upon a verdict, the court may discharge the members and issue an order impaneling a new jury, immediately or as agreed to by the parties or fixed by thc court. Sec. 51. [504B.355] FORM OF VERDICT. The verdict of the jury or the finding of the court in favor of the plaintiff in an eviction action shall be substantially in the following form: Minnesota Health & Housing Alliance Second Edition 1-29 At a court held at ..... , on the ..... day of ...... year ..... , before ..... , a judge in and for the county of ..... in an action between ..... , plaintiff, and ..... , defendant, the jury (or, if the action be tried without a jury, the court) find that the facts alleged in the complaint are true, and the plaintiff shall recover possession of the premises and the defendant(s) shall vacate the premises immediately. If the verdict or finding is for the defendant, it shall be sufficient to find that the facts alleged in the complaint are not true. Sec. 52. [504B.361] FORMS OF SUMMONS AND WRIT. Subdivision 1. Summons And Writ. (a) The summons and writ of recovery of premises and order to vacate may be substantially in the forms in paragraphs (b) and (c). (b) FORM OF SUMMONS State of Minnesota) ) SS. County of ........ ) Whereas, ..... , of ..... , has filed with the undersigned, a judge of connty stated, a complaint against ..... , of ...... a copy of which is attached: You are hereby summoned to appear before the undersigned on the ..... day of ...... year ...... at ..... o'clock ...m., at ..... , to answer and defend against the complaint and to further be dealt with according to law. Dated at ..... , this ..... day of ..... , year ..... Judge of ....... court. (c) FORM OF WRIT OF RECOVERY OF PREMISES AND ORDER TO VACATE State of Minnesota) ) SS. County of ........ ) The State of Minnesota, to the Sheriffor Any Constable of the County: Whereas, ..... , the plaintiff, of ..... , in an eviction action, at a court held at ..... , in the county of ........... , on the ..... day of ..... , year ..... , before ..... , a judge of the county, recovered a judgment against ..... , the ..... , to have recovery of the following premises (describe here the property as in the complaint): ........ Therefore, you are commanded that, taking with you the Minnesota Health & Housing Alliance Second Edition 1-30 force of the county, if necessary, you cause ....... to be immediately removed from the premises, and the plaintiff to recover the premises. You are also commanded that from the personal property of ............. within the county that you seize and sell, the plaintiff be paid ... dollars, as the costs assessed against the defendant, together with 25 cents for this writ. You are ordered to return this writ within 30 days. Dated at ..... , this ..... day of ...... year .... Judge of ........ court. Subd. 2. Priority Writ. The court shall identify a writ of recovery of premises and order to vacate property that is issued pursuant to an eviction action under section 15, or on the basis that the tenant is causing a nuisance or seriously endangers the safety of other residents, their property, or the landlord's property and clearly note on the order to vacate that it is a priority order. Notice that it is a priority order must be made in a manner that is obvious to an officer who must execute the order under section 53. Sec. 53. [504B.365] EXECUTION OF THE WRIT OF RECOVERY OF PREMISES AND ORDER TO VACATE. Subdivision 1. General. (a) The officer who holds the order to vacate shall execute it by demanding that the defendant, if found in the county, any adult member of the defendant's family who is occupying the premises, or any other person in charge, relinquish possession and leave, taking family and all personal property from the premises within 24 hours. Co) If the defendant fails to comply with the demand, then the officer shall bring, if necessary, the force of the county and any necessary assistance, at the cost of the plaintiff. The 47.24 officer shall remove the defendant, family, and all personal property from the premises and place the plaintiff in possession. (c) If the defendant cannot be found in the county, and there is no person in charge of the premises, then the officer shall enter the premises, breaking in if necessary, and remove and store the personal property of the defendant at a place designated by the plaintiffas provided in subdivision 3. (d) The order may also be executed by a licensed police officer or community crime prevention licensed police officer. Subd. 2. Priority; Execution Of Priority Order. An officer shall give priority to the execution, under this section, of any order to vacate that is based on an eviction action under section 15, or on the basis that thc defendant is causing a nuisance or seriously endangers the safety of other residents, their property, or the plaintiffs property. Subd. 3. Removal And Storage Of Property. (a) If the defendant's personal property is to be stored in a place other than the premises, the officer shall remove all personal property of the defendant at the expense of the plaintiff. Minnesota Health & Housing Alliance Second Edition 1-31 (b) The defendant must make immediate payment for all expenses of removing personal property from the premises. If the defendant fails or refuses to do so, the plaintiff has a lien on all the personal property for the reasonable costs and expenses incurred in removing, caring for, storing, and transporting it to a suitable storage place. (c) The plaintiff may enforce the lien by detaining the personal property until paid. If no payment has been made for 60 days after the execution of the order to vacate, the plaintiff may hold a public sale as provided in sections 514.18 to 514.22. (d) If the defendant's personal property is to be stored on the premises, the officer shall enter the premises, breaking in if necessary, and the plaintiff may remove the defendant's personal property. Section 35 applies to personal property removed under this paragraph. The plaintiff must prepare an inventory and mail a copy of the inventory to the defendant's last known address or, if the defendant has provided a different address, to the address provided. The inventory must be prepared, signed, and dated in the presence of the officer and must include the following: (I) a list of the items of personal property and a description of their condition; (2) the date, the signature of the defendant or the defendant's agent, and the name and telephone number of a person authorized to release the personal property; and (3) the name and badge number of the officer. (e) The officer must retain a copy of the inventory. (f) The plaintiff is responsible for the proper removal, storage, and care of the defendant's personal property and is liable for damages for loss of or injury to it caused by the plaintiff's failure to exercise the same care that a reasonably careful person would exercise under similar circumstances. (g) The plainfiffshall notify the defendant of the date and approximate time the officer is scheduled to remove the defendant, family, and personal property from the premises. The notice must be sent by first class mail. In addition, the plaintiff must make a good faith effort to notify the defendant by telephone. The notice must be mailed as soon as the information regarding the date and approximate time the officer is scheduled to enforce the order is known to the plaintiff, except that the scheduling of the officer to enforce the order need not be delayed because of the notice requirement. The notice must inform the defendant that the defendant and the defendant's personal property will be removed from the premises if the defendant has not vacated the premises by the time specified in the notice. Subd. 4. Second And Fourth Judicial Districts. In the second and fourth judicial districts, the housing calendar consolidation project shall retain jurisdiction in matters relating to removal of personal property under this section. If the plaintiffrefuses to return thc property after proper demand is made as provided in section 35, the court shall enter an order requiring the plaintiffto return the property to the defendant and awarding reasonable expenses including attorney fees to the defendant. Subd. S. Penalty; Waiver Not Allowed. Unless the premises has been abandoned, a plaintiff, an agent, or other person acting under the plaintiff's direction or control who enters thc premises and removes the defendant's personal property in violation of this section is guilty of an unlawful ouster under section 27 and is subject to penalty under section 26. 'Fhis section may not be waived or modified by lease or other agreement. Minnesota Health & Housing Alliance Second Edition 1-32 Sec. 54. 1504B.3711 APPEALS. Subdivision 1. Statement Of Intention To Appeal. If the court renders judgment against the defendant and the defendant or defendant's attorney informs the court the defendant intends to appeal, tiae court shall issue an order staying the writ for recovery of premises and order to vacate for at least 24 hours after judgment, except as provided in subdivision 7. Subd. 2. Time For Appeal. A party who feels aggrieved by the judgment may appeal within ten days as provided for civil actions in district court. Subd. 3. Appeal Bond. If the party appealing remains in possession of the property, that party must give a bond that provides that: (1) all costs of the appeal will be paid; (2) the party will comply with the court's order; and (3) all rent and other damages due to the party excluded from possession during the pendency of the appeal will be paid. Subd. 4. Stay Pending Appeal. After the appeal is taken, all further proceedings in the case are stayed, except as provided in subdivision 7. Subd. 5. Stay Of Writ Issued Before Appeal. (a) Except as provided in subdivision 7, if the court issues a writ for recovery of premises and order to vacate before an appeal is taken, the appealing party may request that the court stay further proceedings and execution of the writ for possession of premises and order to vacate, and the court shall grant a stay. (b) If the party appealing remains in possession of the premises, that party must give a bond under subdivision 3. (c) When the officer who has the writ for possession of premises and order to vacate is served with the order granting the stay, the officer shall cease all further proceedings. If the writ for possession of premises and order to vacate has not been completely executed, the defendant shall remain in possession of the premises until the appeal is decided. Subd. 6. Dismissal Of Appeals; Amendments; Return. In all cases of appeal, the appellate court shall not dismiss or quash the proceedings for want of form only, provided they have been conducted substantially in accordance with the provisions of this chapter. Amendments may be allowed at any time, upon such terms as to the court may appear just, in the same cases and manner and to the same extent as in civil actions. The court may compel the trial court, by attachment, to make or amend any return which is withheld or improperly or insufficiently made. Subd. 7. Exception. Subdivisions 1, 4, and 6 do not apply in an action on a lease, against a tenant holding over after the expiration of the term of the lease, or a termination of the lease by a notice to quit, if the plaintiff gives a bond conditioned to pay all costs and damages if on the appeal the judgment of restitution is reversed and a new trial ordered. In Minnesota Health & Housing Alliance Second Edition 1-33 such a case, the court shall issue a writ for recovery of premises and order to vacate notwithstanding the notice of appeal, as if no appeal had been taken, and the appellate court shall issue all needful writs and processes to carry out any judgment which may be rendered in the court. RESIDENTIAL TENANT ACTIONS Sec. 55. [504B.375l UNLAWFUL EXCLUSION OR REMOVAL; ACTION FOR RECOVERY OF POSSESSION. Subdivision 1. Unlawful Exclusion Or Removal. (a) This section applies to actual or constructive removal or exclusion of a residential tenant which may include the termination of utilities or the removal of doors, windows, or locks. A residential tenant to whom this section applies may recover possession of the premises as described in paragraphs (b) to (e). (b) The residential tenant shall present a verified petition to the district court of the judicial district of the county in which the premises are located that: (1) describes the premises and the landlord; (2) specifically states the facts and grounds that demonstrate that the exclusion or removal was unlawful, including a statement that no writ of recovery of the premises and order to vacate has been issued under section 49 in favor of the landlord and against the residential tenant and executed in accordance with section 53; and (3) asks for possession. (c) If it clearly appears from the specific grounds and facts stated in the verified petition or by separate affidavit of the residential tenant or the residential tenant's attorney or agent that the exclusion or removal was unlawful, the court shall immediately order that the residential tenant have possession of the premises. (d) The residential tenant shall furnish security, if any, that the court finds is appropriate under the circumstances for payment of all costs and damages the landlord may sustain if the order is subsequently found to have been obtained wrongfully. In determining the appropriateness of security, the court shall consider the residential tenant's ability to afford monetary security. (e) The court shall direct the order to the sheriff or any constable of the county in which the premises are located and the sheriff or constable shall execute the order immediately by making a demand for possession on the landlord, if found, or the landlord's agent or other person in charge of the premises. If the landlord fails to comply with the demand, the officer shall take whatever assistance may be necessary and immediately place the residential tenant in possession of the premises. If the landlord, the landlord's agent, or other person in control of the premises cannot be found and if there is no person in charge, the officer shall immediately enter into and place the residential tenant in possession of the premises. The officer shall also serve the order and verified petition or affidavit immediately upgn the landlord or agent, in the same manner as a summons is required to be served in a civil action in district court. Minnesota Health & Housing Alliance Second Edition 1-34 Subd. 2. Motion For Dissolution Or Modification Of Order. The landlord may, by written motion and notice served by mail or personally on the residential tenant or the residential tenant's attorney at least two days before the hearing date on the motion, obtain dissolution or modification of the order for possession issued under subdivision 1, paragraph (c), unless the residential tenant proves the facts and grounds on which the order is issued. A landlord bringing a motion under this subdivision may recover possession of the premises only by an eviction action or otherwise provided by law. Upon the dissolution of the order. the court shall assess costs against the residential tenant, subject to the provisions of section 563.01, and may allow damages and reasonable attorney fees for the wrongful granting of the order for possession. If the order is affirmed, the court shall tax costs against the landlord and may allow the residential tenant reasonable attorney's fees. Subd. 3. Finality Of Order. An order issued under subdivision 1, paragraph (c), or affirmed, modified, or dissolved under subdivision 2, is a final order for purposes of appeal. Either party may appeal the order within ten days after entry. If the. party appealing remains in possession of the premises, bond must be given to: (1) pay all costs of the appeal; (2) obey the court's order; and (3) pay all rent and other damages that justly accrue to the party excluded from possession during the pendency of the appeal. Subd. 4. Waiver Not Allowed. A provision of an oral or written lease or other agreement in which a residential tenant waives this section is contrary to public policy and void. Subd. 5. Purpose. The purpose of this section is to provide an additional and summary remedy for residential tenants unlawfully excluded or removed from rental property and, except where expressly provided in this section, sections 38 to 54 do not apply to proceedings under this section. Subd. 6. Application. In addition to residential tenants and landlords, this section applies to: (1) occupants and owners of residential real property that is the subject of a mortgage foreclosure or contract for deed cancellation for which the period for redemption or reinstatement of the contract has expired; and (2) mortgagees and contract for deed vendors. Sec. 56. [504B.381] EMERGENCY TENANT REMEDIES ACTION. Subdivision 1. Petition. A person authorized to bring an action under section 59, subdivision 1, may petition the court for relief in cases of emergency involving the loss of running water, hot w~ater, heat, electricity, sanitary facilities, or other essential services or facilities that the landlord is responsible for providing. Minnesota Health & Housing Alliance Second Edition 1-35 Subd. 2. Venue. The venue of the action authorized by this section is the county where the residential building alleged to contain the emergency condition is located. Subd. 3. Petition Information. The petitioner must present a verified petition to the district court that contains: (1) a description of the premises and the identity of the landlord; (2) a statement of the facts and grounds that demonstrate the existence of an emergency caused by the loss of essential services or facilities; and (3) a request for relief. Subd. 4. Notice. The petitioner must attempt to notify the landlord, at least 24 hours before application to the court, of the petitioner's intent to seek emergency relief. An order may be granted without notice to the landlord if the court finds that reasonable efforts, as set forth in the petition or by separate affidavit, were made to notify the landlord but that the efforts were unsuccessful. Subd. 5. Relief; Service Of Order. The court may order relief as provided in section 64. The petitioner shall serve the order on the landlord personally or by mail as soon as practicable. Subd. 6. Limitation. This section does not extend to emergencies that are the result of the deliberate or negligent act or omission of a residential tenant or anyone acting under the direction or control of the residential tenant. Subd. 7. Effect Of Other Laws. Section 59, subdivisions 3 and 4, [504B.395, subd. 3 and 4] do not apply to a petition for emergency relief under this section. Sec. 37. 1504B.3851 RENT ESCROW ACTION TO REMEDY VIOLATIONS. Subdivision 1. Escrow Of Rent. (a) Ifa violation exists in a residential building, a residential tenant may deposit the amount of rent due to the landlord with the court administrator using the procedures described in paragraphs (b) to (d). (b) For a violation as defined in section 1, subdivision 14, clause (1), the residential tenant may deposit with the court administrator the rent due to the landlord along with a copy of the written notice of the code violation as provided in section 18, subdivision 2. The residential tenant may not deposit the rent or file the written notice of the code violation until the time granted to make repairs has expired without satisfactory repairs being made, unless the residential tenant alleges that the time granted is excessive. (c) For a violation as defined in section 1, subdivision 14, clause (2) or (3), the residential tenant must give written notice to the landlord specifying the violation. The notice must be delivered personally or sent to the person or place where rent is normally paid. If the violation is not corrected within 14 days, the residential tenant may deposit the amount of rent due to the landlord with the court administrator along with an affidavit specifying the violation. The court must provide a simplified form affidavit for use under this paragraph. Minnesota Health & Housing Alliance Second Edition 1-36 (d) The residential tenant need not deposit rent if none is due to the landlord at the time the residential tenant files the notice required by paragraph (b) or (c). All rent which becomes due to the landlord after that time but before the hearing under subdivision 6 must be deposited with the court administrator. As long as proceedings are pending under this section, the residential tenant must pay rent to the landlord or as directed by the court and may not withhold rent to remedy a violation. Subd. 2. Counterclaim For Possession. (a) The landlord may file a counterclaim for possession of the property in cases where the landlord alleges that the residential tenant did not deposit the full amount of rent with the court administrator. (b) The court must set the date for a hearing on the counterclaim not less than seven nor more than 14 days from the day of filing the counterclaim. If the rent escrow hearing and the hearing on the counterclaim for possession cannot be heard on the same day, the matters must be consolidated and heard on the date scheduled for the hearing on the counterclaim. (c) The contents of the counterclaim for possession must meet the requirements for a complaint under section 44. (d) The landlord must serve the counterclaim as provided in section 46, except that the affidavit of service or mailing may be brought to the hearing rather than filed with the court before the hearing. (e)/he court must provide a simplified form for use under this section. Subd. 3. Defenses. The defenses provided in section 62 are defenses to an action brought under this section. Subd. 4. Filing Fee. The court administrator may charge a filing fee in the amount set for complaints and counterclaims in conciliation court, subject to the filing of an inability to pay affidavit. Subd. 5. Notice Of Hearing. (a) A heating must be held within ten to 14 days from the day a residential tenant deposits rent with the court administrator. (b) If the cost of remedying the violation, as estimated by the residential tenant, is within the jurisdictional limit for conciliation court, the court administrator shall notify the landlord and the residential tenant of the time and place of the hearing by first class mail. (c) The residential tenant must provide the court administrator with the landlord's name and address. If the landlord has disclosed a post office box as the landlord's address under section 17, notice of the hearing may be mailed to the post office box. (d) If the cost of remedying the violation, as estimated by the tenant, is above the jurisdictional limit for conciliation court, the tenant must serve the notice of hearing according to the Minnesota Rules of Civil Procedure. (e) The notice of hearing must specify the amount the residential tenant has deposited with the court administrator and must inform the landlord that possession of the premises will not be in issue at the hearing unless the landlord files a counterclaim for possession or an eviction action. Minnesota Health & Housing Alliance Second Edition 1-37 Subd. 6. Hearing. The hearing shall be conducted by a court without a jury. A certified copy of an inspection report meets the requirements of rule 803(8) of the Minnesota Rules of Evidence as an exception to the rule against hearsay, and meets the requirements of rules 901 and 902 of the Minnesota Rules of Evidence as to authentication. Subd. 7. Release Of Rent Prior To Hearing. If the residential tenant gives written notice to the court administrator that the violation has been remedied, the court administrator must release the rent to the landlord and, unless the hearing has been consolidated with another action, must cancel the hearing. If the residential tenant and the landlord enter into a written agreement signed by both parties apportioning the rent between them, the court administrator must release the rent in accordance with the written agreement and cancel the hearing. Subd. 8. Consolidation With An Eviction Action. Actions under this section and eviction actions which involve the same parties must be consolidated and heard on the date scheduled for the eviction action. Subd. 9. Judgment. (a) Upon finding that a violation exists, the court may, in its discretion, do any or all of the following: (1) order relief as provided in section 64, including retroactive rent abatement; (2) order that all or a portion of the rent in escrow be released for the purpose of remedying the violation; (3) order that rent be deposited with the court as it becomes due to the landlord or abate future rent until the landlord remedies the violation; or (4) impose fines as required in section 58. Co) When a proceeding under this section has been consolidated with a counterclaim for possession or an eviction action, and the landlord prevails, the residential tenant may redeem the tenancy as provided in section 39. (c) When a proceeding under this section has been consolidated with a counterclaim for possession or an eviction action on the grounds of nonpayment, the court may not require the residential tenant to pay the landlord's filing fee as a condition of retaining possession of the property when the residential tenant has deposited with the court the full amount of money found by the court to be owed to the landlord. Subd. 10. Release Of Rent After Hearing. If the court finds, after a heating on the matter has been held, that no violation exists in the building or that the residential tenant did not deposit the full amount of rent due with the court administrator, it shall order the immediate release of the rent to the landlord. If the court finds that a violation existed, but was remedied between the commencement of the action and the hearing, it may order rent abatement and must release the rent to the parties accordingly. Any rent found to be owed to the residential tenant must be released to the tenant. Subd. 1 I. Retalihtion; Waiver Not Allowed. Section 67 applies to proceedings under this section. The residential tenant rights under this section may not be waived or Minnesota Health & Housing Alliance Second Edition 1-38 modified and are in addition to and do not limit other fights or remedies which may be available to the residential tenant and landlord, except as provided in subdivision 1. Sec. 58. [504B.391] VIOLATIONS OF BUILDING REPAIR ORDERS. Subdivision 1. Noncompliance; Fines. If the court finds that a landlord has willfully failed to comply with a court order to remedy a violation, the court shall fine the landlord according to the following schedule: (1) $250 for the first failure to comply; (2) $500 for the second failure to comply with an order regarding the same violation; and (3) $750 for the third and each subsequent failure to comply with an order regarding the same violation. Subd. 2. Criminal Penalty. A landlord who willfully falls to comply with a court order to remedy a violation is guilty of a gross misdemeanor if it is the third or subsequent time that the landlord has willfully failed to comply with an order to remedy a violation within a three-year period. TENANT REMEDIES ACTION Sec. 59. [504B.3951 PROCEDURE. Subdivision 1. Who May Bring Action. An action may be brought in district court by: (1) a residential tenant of a residential building in which a violation, as defined in section 1, subdivision 14, is alleged to exist; (2) any housing-related neighborhood organization with the written permission of a residential tenant of a residential building in which a violation, as defined in section 1, subdivision 14, clause (1) or (2), is alleged to exist; (3) a housing-related neighborhood organization that has within its geographical area an unoccupied residential building in which a violation, as defined in section 1, subdivision 14, clause (1) or (2), is alleged to exist; or (4) a state, county, or local department or authority, charged with the enforcement of codes relating to health, housing, or building maintenance. Subd. 2. Venue. The venue of the action authorized by this section is the county where the residential building alleged to contain violations is located. Subd. 3. When Action May Be Brought. (a) After a residential building inspection has been made under section 18, an action may not be brought under sections 56, 57, or 59 to 69 until the time granted under section 18, subdivision 2, has expired and satisfactory repairs to remove the code violations have not been made. Minnesota Health & Housing Alliance Second Edition 1-39 (b) Notwithstanding paragraph (a), an action may be brought if the residential tenant, or neighborhood organization with the written permission of a tenant, alleges the time granted under section 18, subdivision 2, is excessive. Subd. 4. Landlord Must Be Informed. A landlord must be informed in writing of an alleged violation at least 14 days before an action is brought by: (1) a residential tenant of a residential building in which a violation as defined in section 1, subdivision 14, clause (2) or (3), is alleged to exist; or (2) a housing-related neighborhood organization, with the written permission of a residential tenant of a residential building in which a violation, as defined in section 1, subdivision 14, clause (2), is alleged to exist. The notice requirement may be waived if the court finds that the landlord cannot be located despite diligent efforts. Subd. 5. Summons And Complaint Required. The action must be started by service of a complaint and summons. The summons may be issued only by a judge or court administrator. Subd. 6. Contents Of Complaint. (a) The complaint must be verified and must: (1) allege material facts showing that a violation or violations exist in the residential building; (2) state the relief sought; and (3) list the rent due each month from each dwelling unit within the residential building, if known. (b) If the violation is a violation as defined in section 1, subdivision 14, clause (1), the complaint must be accompanied by: (1) a copy of the official report of inspection by a department of health, housing, or buildings, certified by the custodian of records of that department stating: (i) when and by whom the residential building concerned was inspected; (ii) what code violations were recorded; and (iii) that notice of the code violations has been given to the landlord; or (2) a statement that a request for inspection was made to the appropriate state, county, or municipal department, that demand was made on the landlord to correct the alleged code violation, and that a reasonable period of time has elapsed since the demand or request was made. Sec. 60. [504B.401] SUMMONS. Subdivision 1. Contents. (a) On receipt of the complaint in section 59, the court administrator shall prepare a summons. The summons shall: (1) specify the time and place of the hearing to be held on the complaint; and (2) state that if at the time of the hearing a defense is not interposed and established by the landlord, judgment may be entered for the relief requested and authorized by sections 56 and 59 to 73. (b) The hearing must be scheduled not less than five nor more than ten days after receipt of the complaint by the court administrator. Minnesota Health & Housing Alliance Second Edition 1-40 Subd. 2. Service. The summons and complaint must be served upon the landlord or the landlord's agent not less than five nor more than ten days before the hearing. Service shall be by personal service upon the defendant pursuant to the Minnesota Rules of Civil Procedure. If personal service cannot be made with due diligence, service may be made by affixing a copy of the summons and complaint prominently to the residential building involved, and mailing at the same time a copy of the summons and complaint by certified mail to the last known address of the landlord. Sec. 61. |504B.411] ANSWER. At or before the time of the hearing, the landlord may answer in writing. Defenses that are not contained in a written answer must be orally pleaded at the heating before any testimony is taken. No delays in the date of hearing may be granted to allow time to prepare a written answer or reply except with the consent of all parties. Sec. 62. [504B.415] DEFENSES. It is a sufficient defense to a complaint under section 57 or 59 that: (1) the violation or violations alleged in the complaint do not exist or that the violation or violations have been removed or remedied; (2) the violations have been caused by the willful, malicious, negligent, or irresponsible conduct of a complaining residential tenant or anyone under the tenant's direction or control; or (3) a residential tenant of the residential building has um'easonably refused entry to the landlord or the landlord's agent to a portion of the property for the purpose of correcting the violation, and that the effort to correct was made in good faith. Sec. 63. [504B.421] HEARING. If issues of fact are raised, they must be tried by the court without a jury. The court may grant a postponement of the trial on its own motion or at the request of a party if it determines that postponements are necessary to enable a party to procure necessary witnesses or evidence. A postponement must be for no more than ten days except by consent of all appearing parties. Sec. 64. [504B.425] JUDGMENT. (a) If the court finds that the complaint in section 59 has been proved, it may, in its discretion, take any of the actions described in paragraphs (b) to (g), either alone or in combination. (b) The court may order the landlord to remedy the violation or violations found by the court to exist if the court is satisfied that corrective action will be undertaken promptly. (c) The court may order the residential tenant to remedy the violation or violations found by the court to exist and deduct the cost from the rent subject to the terms as the court determines to be just.. (d) The court may appoint an administrator with powers described in section 68, and: (1) direct that rents due: Minnesota Health & Housing Alliance Second Edition 1--41 (i) on and from the day of entry of judgment, in the case of petitioning residential tenants or housing-related neighborhood organizations; and (ii) on and from the day of service of the judgment on all other residential and commercial tenants of the residential building, if any, shall be deposited with the administrator appointed by the court; and (2) direct that the administrator use the rents collected to remedy the violations found to exist by the court by paying the debt service, taxes, and insurance, and providing the services necessary to the ordinary operation and maintenance of the residential building which the landlord is obligated to provide but fails or refuses to provide. (e) The court may find the extent to which any uncorrected violations impair the residential tenants' use and enjoyment of the property contracted for and order the rent abated accordingly. If the court enters judgment under this paragraph, the parties shall be informed and the court shall determine the amount by which .the rent is to be abated. (f) After termination of administration, the court may continue the jurisdiction of the court over the residential building for a period ofo~ year and order the landlord to maintain the residential building in compliance with all applicable state, county, and city health, safety, housing, building, fire prevention, and housing maintenance codes. (g) The court may grant any other relief it deems just and proper, including a judgment against the landlord for reasonable attorney fees, not to exceed $500, in the case of a prevailing residential tenant or neighborhood organization. The $500 limitation does not apply to awards made under section 549.211 or other specific statutory authority. Sec. 65. [504B.431] SERVICE OF JUDGMENT. A copy of the judgment must be personally served on every residential and commercial tenant of the residential building whose obligations will be affected by the judgment. If, with due diligence, personal service cannot be made, service may be made by posting a notice of the judgment on the entrance door of the residential tenant's dwelling or commercial tenant's unit and by mailing a copy of the judgment to the residential tenant or commercial tenant by certified mail. Sec. 66. [504B.435] LANDLORD'S RIGHT TO COLLECT RENT SUSPENDED. If an administrator has been appointed pursuant to section 64, paragraph (d), any right of the landlord to collect rent from the petitioner is void and unenforceable from the time the court signs the order for judgment until the administration is terminated. Any right of the landlord to collect rent fi'om other tenants is void and unenforceable from the time of service of judgment as set forth in section 65 until the administration is terminated. Sec. 67. 1504B.441] RESIDENTIAL TENANT MAY NOT BE PENALIZED FOR COMPLAINT. A residential tenant may not be evicted, nor may the residential tenant's obligations under a lease be increased or the services decreased, if the eviction or increase of obligations or decrease of services is intended as a penalty for the residential tenant's or housing-related neighborhood organization's complaint of a violation. The burden of proving otherwise is on the landlord if the eviction or increase of obligations or decrease of services occurs within 90 days after filing the complaint, unless the court finds that the complaint Minnesota Health & Housing Alliance Second Edition 1-42 was not made in good faith. After 90 days the burden of proof is on the residential tenant. Sec. 68. 1504B.445l ADMINISTRATOR. Subdivision 1. Appointment. The administrator may be a person, local government unit or agency, other than a landlord of the building, the inspector, the complaining residential tenant, or a person living in the complaining residential tenant's dwelling unit. If a state or court agency is authorized by statute, ordinance, or regulation to provide persons or neighborhood organizations to act as administrators under this section, the court may appoint them to the extent they are available. Subd. 2. Posting Bond. A person or neighborhood organization appointed as administrator shall post bond to the extent of the rents expected by the court to be necessary to be collected to correct the violation or violations. Administrators appointed from governmental agencies shall not be required to post bond. Subd. 3. Expenses. The court may allow a reasonable amount for the services of administrators and the expense of the administration from rent money. When the administration terminates, the court may enter judgment against the landlord in a reasonable amount for the services and expenses incurred by the administrator. Subd. 4. Powers. The administrator may: (1) collect rents from residential and commercial tenants, evict residential and commercial tenants for nonpayment of rent or other cause, enter into leases for vacant dwelling units, rent vacant commercial units with the consent of the landlord, and exercise other powers necessary and appropriate to carry out the purposes of sections 56 and 59 to 73; (2) contract for the reasonable cost of materials, labor, and services necessary to remedy the violation or violations found by the court to exist and for the rehabilitation of the property to maintain safe and habitable conditions over the useful life of the property, and disburse money for these purposes from funds available for the purpose; (3) provide services to the residential tenants that the landlord is obligated to provide but refuses or fails to provide, and pay for them from funds available for the purpose; (4) petition the court, after notice to the parties, for an order allowing the administrator to encumber the property to secure funds to the extent necessary to cover the costs described in clause (2), including reasonable fees for the administrator's services, and to pay for the costs from funds derived from the encumbrance; and (5) petition the court, after notice to the parties, for an order allowing the administrator to receive funds made available for this purpose by the federal or state governing body or the municipality to the extent necessary to cover the costs described in clause (2) and pay for them from funds derived from this source. The municipality shall recover disbursements under clause (5) by special assessment on the real estate affe~cted, bearing interest at the rate determined by the municipality, but not to exceed the rate established for finance charges for open-end credit sales under section 334.16, subdivision 1, clause (b). The assessment, interest, and any penalties shall be Minnesota Health & Housing Alliance Second Edition 1-43 collected as are special assessments made for other purposes under state statute or municipal charter. Subd. 5. Termination Of Administration. At any time during the administration, the administrator or any party may petition the court after notice to all parties for an order terminating the administration on the ground that the funds available to the administrator are insufficient to effect the prompt remedy of the violations. If the court finds that the petition is proved, the court shall terminate the administration and proceed to judgment under section 64, paragraph (e). Subd. 6. Residential Building Repairs And Services. The administrator must first contract and pay for residential building repairs and services necessary to keep the residential building habitable before other expenses may be paid. If sufficient funds are not available for paying other expenses, such as tax and mortgage payments, after paying for necessary repairs and services, the landlord is responsible for the other expenses. Subd. 7. Administrator's Liability. The administrator may not be held personally liable in the performance of duties under this section except for misfeasance, malfeasance, or nonfeasance of office. Subd. 8. Dwelling's Economic Viability. In considering whether to grant the administrator funds under subdivision 4, the court must consider factors relating to the long- term economic viability of the dwelling, including: (1) the causes leading to the appointment of an administrator; (2) the repairs necessary to bring the property into code compliance; (3) the market value of the property; and (4) whether present and future rents will be sufficient to cover the cost of repairs or rehabilitation. Sec. 69. [504B.451] RECEIVERSHIP REVOLVING LOAN FUND. The Minnesota housing finance agency may establish a revolving loan fund to pay the administrative expenses of receivership administrators under section 68 for properties for occupancy by low- and moderate-income persons or families. Landlords must repay administrative expense payments made fi.om the fund. Sec. 70. [504B.455] REMOVAL OF ADMINISTRATOR. Subdivision 1. Petition By Administrator. The administrator may, after notice to all parties, petition the court to be relieved of duties, including in the petition the reasons for it. The court may, in its discretion, grant the petition and discharge the administrator upon approval of the accounts. Subd. 2. Petition By A Party. A party may, after notice to the administrator and all other parties, petition the court to remove the administrator. If the party shows good cause, the court shall order the administrator removed and direct the administrator to immediately Minnesota Health & Housing Alliance Second Edition 1-44 deliver to the court an accounting of administration. The court may make any other order necessary and appropriate under the circumstances. Subd. 3. Appointment Of New Administrator. If the administrator is removed, the court shall appoint a new administrator in accordance with section 68, giving all parties an opportunity to be heard. Sec. 71. [504B.461] TERMINATION OF ADMINISTRATION. Subdivision 1. Events Of Termination. The administration shall be terminated upon one of the following: (1) certification is secured from the appropriate governmental agency that the violations found by the court to exist at the time. of judgment have been remedied; or (2) an order according to section 68, subdivision 5. Subd. 2. Accounting By Administrator. After the occurrence of any of the conditions in subdivision 1, the administrator shall: (1) submit to the court an accounting of receipts and disbursements of the administration together with copies of all bills, receipts, and other memoranda pertaining to the administration, and, where appropriate, a certification by an appropriate governmental agency that the violations found by the court to exist at the time of judgment have been remedied; and (2) comply with any other order the court makes as a condition of discharge. Subd. 3. Discharge Of Administrator. Upon approval by the court of the administrator's accounts and compliance by the administrator with any other order the court may make as a condition of discharge, the court shall discharge the administrator from any further responsibilities pursuant to section 56 and sections 59 to 73. Sec. 72. [504B.465] WAIVER NOT ALLOWED. Any provision of a lease or other agreement in which a provision of section 56 or sections 59 to 73 is waived by a residential tenant is contrary to public policy and void. Sec. 73. [504B.471] PURPOSE TO PROVIDE ADDITIONAL REMEDIES. The purpose of section 56 and sections 59 to 73 is to provide additional remedies and nothing contained in those sections alters the ultimate financial liability of the landlord or residential tenant for repairs or maintenance of the building. Sec. 74. [INSTRUCTION TO REVISOR.] If Minnesota Statutes, chapter 504, 504A, or 566 is amended in the 1999 legislative session, the revisor of statutes shall codify the amendments in chapter 504B. Sec. 75. [REPEALER.! Laws 1998, chapter 253, sections 1 to 79, are repealed. Minnesota Health & Housing Alliance Second Edition 1-45 Sec. 76. [EFFECTIVE DATE.[ This article is effective July I, 1999. Minnesota Health & Housing Alliance 1-46 Second Edition 1999 APPLICANT SCREENING FEE REQUIREMENTS S.F. NO. 1471, 3RD ENGROSSMENT: 81ST LEGISLATIVE SESSION (1999-2000) [The 1999 Legislature instructed the Revisor to codify these requirements into the new Tenant-Landlord provisions of 504B.] Section 1. [504.301] APPLICANT SCREENING FEE. Subdivision 1. Limit On Number Of Applicant Screening Fees. A landlord or the landlord's agent may not charge an applicant a screening fee when the landlord knows or should have known that no rental unit is available at that time or will be available within a reasonable future time. Subd. 2. Return Of Applicant Screening Fee. If the landlord or the landlord's agent does not perform a personal reference check or does not obtain a consumer credit report or tenant screening report, the landlord or the landlord's agent shall return any amount of the screening fee that is not used for those purposes. The screening fee may be returned by mail, may be destroyed upon the applicant's request if paid by check, or may be made available for the applicant to retrieve. Subd. 3. Disclosures To Applicant. A landlord or abe landlord's agent, prior to taking an application fee from a prospective tenant, must disclose on the application form or orally the name, address, and telephone number of the tenant screening service the owner will use, unless the owner does not use a tenant screening service. Subd. 4. Remedies. In addition to any other remedies, a landlord who violates this section is liable to the applicant for the application fee plus a civil penalty of up to $100, civil court filing costs, and reasonable attorney fees incurred to enforce this remedy. Sec. 2. [REPEALER.I Minnesota Statutes 1998, section 504.30, subdivision 5, is repealed. Minnesota Health & Housing Alliance Second Edition 1-47 3. 1999 PRE-LEASE DEPOSIT REQUIREMENTS H.F NO. 1178, 2ND ENGROSSMENT: 81ST LEGISLATIVE SESSION (1999-2000) {The 1999 Legislature instructed the Revisor to codify these requirements into the new Tenant-Landlord provisions of SO4B.] Section 1. [504.38] PRELEASE DEPOSIT. Subdivision 1. Definition. For the purpose of this section, "prelease deposit" means payment given to a landlord from a prospective tenant of a residential dwelling unit before the prospective tenant and the landlord have entered into a rental agreement. "Prelease deposit" does not include the payment of a reasonable applicant screening fee used to conduct a background check on the prospective tenant. Subd. 2. Limitations. (a) A prelease deposit may be accepted only if the landlord and prospective tenant enter into a conspicuous written agreement that includes: (1) the circumstances under which it will be returned; and (2) that the landlord is required to return the prelease deposit within seven days of the occurrence of a circumstance described in clause (1). (b) "Return" means postmarked within seven days except that upon the prospective tenant's request, a landlord may destroy the payment or hold it for retrieval by the tenant instead of returning it by mail. Subd. 3. Application On Entry Into Rental Agreement. If a prospective tenant and landlord do enter into a rental agreement, the prelease deposit must be applied to that tenant's security deposit or rent. Subd. 4. Remedies. In addition to any other remedies, a landlord who violates this section is liable to the payor of the prelease deposit for the amount of the deposit paid, plus one-half of that amount as a penalty. A landlord who enters into a rental agreement with a tenant is not liable under this section unless the landlord failed to comply with subdivision 3. Minnesota Health & Housing Alliance Second Edition 1-48 B. EXCERPTS FROM THE MINNESOTA CRIMINAL CODE 609.5317 REAL PROPERTY; SEIZURES. Subdivision 1. Rental property. (a) When contraband or a controlled substance manufactured, distributed, or acquired in violation of chapter 152 is seized on residential rental property incident to a lawful search or arrest, the county attorney shall give the notice required by this subdivision to (1) the landlord of the property or the fee owner identified in the records of the county assessor, and (2) the agent authorized by the owner to accept service pursuant to section 504.22. The notice is not required during an ongoing investigation. The notice shall state what has been seized and specify the applicable duties and penalties under this subdivision. The notice shall state that the landlord who chooses to assign the right to bring an unlawful detainer action retains all rights and duties, including removal of a tenant's personal property following issuance of the writ of restitution and delivery 0fthe writ to the sheriff for execution. The notice shall also state that the landlord may contact the county attorney if threatened by the tenant. Notice shall be sent by certified letter, return receipt requested, within 30 days of the seizure. If receipt is not returned, notice shall be given in the manner provided by law for service of summons in a civil action. (b) Within 15 days after notice of the first occurrence, the landlord shall bring, or assign to the county attorney of the county in which the real property is located, the right to bring an unlawful detainer action against the tenant. The assignment must be in writing on a form prepared by the county attorney. Should the landlord choose to assign the right to bring an unlawful detainer action, the assignmem shall be limited to those rights and duties up to and including delivery of the writ of restitution to the sheriff for execution. (c) Upon notice of a second occurrence on any residential rental property owned by the same landlord in the same county and involving the same tenant, and within one year after notice of the first occurrence, the property is subject to forfeiture under sections 609.531,609.5311,609.5313, and 609.5315, unless an unlawful detainer action has been commenced as provided in paragraph (b) or the right to bring an unlawful detainer action was assigned to the county attorney as provided in paragraph (b). If the right has been assigned and not previously exercised, or if the county attorney requests an assignment and the landlord makes an assignment, the county attorney may bring an unlawful detainer action rather than an action for forfeiture. Subd. 2. Additional remedies. Nothing in subdivision 1 prevents the county attorney from proceeding under section 609.5311 whenever that section applies. Subd. 3. Defenses. It is a defense against a proceeding under subdivision 1, paragraph Co), that the tenant had no knowledge or reason to know of the presence of the contraband or controlled substance or could not prevent its being brought onto the property. It is a defense against a proceeding under subdivision 1, paragraph (e), that the landlord made every:reasonable attempt to evict a tenant or to assign the county attorney the right to bring an unlawful detainer action against the tenant, or that the landlord did not receive notice &the seizure. Minnesota Health & Housing Alliance Second Edition 1-49 Subd. 4. Limitations. This section shall not apply if the retail value of the controlled substance is less than $100, but this section does not subject real property to forfeiture under section 609.5311 unless the retail value of the controlled substance is: (1) $1,000 or more; or (2) there have been two previous controlled substance seizures involving the same tenant. HIST: 1989 c 305 s 7; 1991 c 193 s 4; 1992 c 533 s 3 617.81 NUISANCE; ACTS CONSTITUTING; INJUNCTION; NOTICE. Subdivision 1. Injunction. In order to obtain a temporary injunction under section 617.82 or a permanent injunction or order of abatement under section 617.83, the provisions of sections 617.80 to 617.87 must be followed. Subd. 2. Acts constituting a nuisance. (a) For purposes of sections 617.80 to 617.87, a public nuisance exists upon proof of two or more separate behavioral incidents of one or more of the following, committed within the previous 12 months within the building: (1) prostitution or prostitution-related activity committed within the building; (2) gambling or gambling-related activity committed within the building; (3) maintaining a public nuisance in violation of section 609.74, clause (1) or (3); (4) permitting a public nuisance in violation of section 609.745; (5) unlawful sale, possession, storage, delivery, giving, manufacture, cultivation, or use of controlled substances committed within the building; (6) unlicensed sales of alcoholic beverages committed within the building in violation of section 340A.401; (7) unlawful sales or gifts of alcoholic beverages by an unlicensed person committed within the building in violation of section 340A.503, subdivision 2, clause (1); (8) unlawful use or possession of a firearm in violation of section 609.66, subdivision la, 609.67, or 624.713, committed within the building; or (9) violation by a commercial enterprise of local or state business licensing regulations, ordinances, or statutes prohibiting the maintenance of a public nuisance as defined in section 609.74 or the control_of a public nuisance as defined in section 609.745. (b) If the building contains more than one rental unit, two or more behavioral incidents must consist of conduct: (1) anywhere in the building by the same tenant or lessee, or persons acting in conjunction with or under the control of the same tenant or lessee; (2) by any persons within the same rental unit while occupied by the same tenant or lessee or within two or more rental units while occupied by the same tenant or lessee; or (3) by the owner of the building or persons acting in conjunction with or under the control of the owner. (c) Proof of a nuisance exists if each of the elements of the conduct constituting the nuisance is established by clear and convincing evidence. Minnesota Health & Housing Alliance Second Edition 1-50 Subd. 2a. Repealed, 1995 c 244 s 42 Subd. 3. Repealed, 1995 c 244 s 42 Subd. 4. Notice. (a) Ifa prosecuting attorney has reason to believe that a nuisance is maintained or permitted in the jurisdiction the prosecuting attorney serves, and intends to seek abatement of the nuisance, the prosecuting attorney shall provide the written notice described in paragraph (b), by personal service or certified mail, return receipt requested, to the owner and all interested parties known to the prosecuting attorney. (b) The written notice must: (1) state that a nuisance as defined in subdivision 2 is maintained or permitted in the building and must specify the kind or kinds of nuisance being maintained or permitted; (2) summarize the evidence that a nuisance is maintained or permitted in the building, including the dates on which nuisance-related activities are alleged to have occurred; (3) inform the recipient that failure to abate the conduct constituting 'the nuisance or to otherwise resolve the matter with the prosecuting attorney within 30 days of service of the notice may result in the filing of a complaint for relief in district court that could, among other remedies, result in enjoining the use of the building for any purpose for one year or, in the case of a tenant, could result in cancellation of the lease; and (4) inform the owner of the options available under section 617.85. HIST: 1987 c 283 s 2; 1989 c 112 s 1; 1991 c 193 s 6-8; 199.5 c 244 s 31,32; 1996 c 322 s 1; 1997 c 100 s 1; 1997 c 122 s 1 617.82 AGREED ABATEMENT PLANS; TEMPORARY ORDER. (a) If the recipient of a notice under section 617.81, subdivision 4, either abates the conduct constituting the nuisance or enters into an agreed abatement plan within 30 days of service of the notice and complies with the agreement within the stipulated time period, the prosecuting attorney may not file a nuisance action on the specified property regarding the nuisance activity described in the notice. (b) If the recipient fails to comply with the agreed abatement plan, the prosecuting attorney may initiate a complaint for relief in the district court consistent with paragraph (c). (c) Whenever a prosecuting attorney has cause to believe that a nuisance described in section 617.81, subdivision 2, exists within the jurisdiction the attorney serves, the prosecuting attorney may by verified petition seek a temporary injunction in district court in the county in which the alleged public nuisance exists, provided that at least 30 days have expired since service of the notice required under section 617.81, subdivision 4. No temporary injunction may be issued without a prior show cause notice of hearing to the respondents named in the petition and an opportunity for the respondents to be heard. Upon proof of a nuisance described in section 617.81, subdivision 2, the court shall issue a temporary injunction. Any temporary injunction issued must describe the conduct to be enjoined. HIST: 1987 c 283 s 3:1995 c 244 s 33; 1997 c 100 s 2; 1997 c 239 art 12 s 9 Minnesota Health & Housing Alliance Second Edition 1-51 617.83 INJUNCTION; ORDER OF ABATEMENT. Upon proof of a nuisance described in section 617.81, subdivision 2, the court shall issue a permanent injunction and enter an order of abatement, except as otherwise provided by section 617.85. The permanent injunction must describe the conduct permanently enjoined. The order of abatement must direct the closing of the building or a portion of it for one year, except as otherwise provided in section 617.84 or 617.85, unless sooner released pursuant to section 617.87. Before an abatement order is enforced against a building or portion of it, the owner must be served with the abatement order and a notice of the right to file a motion under section 617.85 in the same manner that a summons is served under the rules of civil procedure. A copy of the abatement order shall also be posted in a conspicuous place on the building or affected portion. HIST: 1987 c 283 s 4; 1997 c I00 s 3 617.84 MOVABLE PROPERTY. The order of abatement may direct the removal of movable property used in conducting or maintaining the nuisance and direct the sale of property belonging to a respondent who was notified or appeared. The sale shall be conducted pursuant to the provisions of chapter 550 on the sale of property on execution. A person appointed by the court as receiver of the building may use a building or portion of it which is the subject of an abatement order in a manner approved by the court. Costs of the sale on execution, moving and storage fees, and any receivership must be paid out of the receipts from the sale of the movable property or any rems collected during the receivership. The balance from the sale of movable property must be paid to the owner of the property. The balance from any rents collected during any receivership shall be paid to the treasury of the unit of government which brought the abatement action. HIST: 1987 c 283 s 5 617.85 NUISANCE; MOTION TO CANCEL LEASE. Where notice is provided under section 617.81, subdivision 4, that an abatement of a nuisance is sought and the circumstances that are the basis for the requested abatement involved the acts ora commercial or residential tenant or lessee of part or all ora building, the owner of the building that is subject to the abatement proceeding may file before the court that has jurisdiction over the abatement proceeding a motion to cancel the lease or otherwise secure restitution of the premises from the tenant or lessee who has maintained or conducted the nuisance. The owner may assign to the prosecuting attorney the right to file this motion. In addition to the grounds provided in chapter 566, the maintaining or conducting of a nuisance as defined in section 617.81, subdivision 2, by a tenant or lessee, is an additional ground authorized by law for seeking the cancellation of a lease or the restitution of the premises. Service of motion brought under this section must be served in a manner that is sufficient under the Rule~ of Civil Procedure and chapter 566. Minnesota Health & Housing Alliance Second Edition 1-52 It is no defense to a motion under this section by the owner or the prosecuting attorney that the lease or other agreement controlling the tenancy or leasehold does not provide for eviction or cancellation of the lease upon the ground provided in this section. Upon a finding by the court that the tenant or lessee has maintained or conducted a nuisance in any portion of the building, the court shall order cancellation of the lease or tenancy and grant restitution of the premises to the owner. The court must not order abatement of the premises if the court: (a) cancels a lease or tenancy and grants restitution of that portion of the premises to the owner; and (b) further finds that the acts constituting the nuisance as defined in section 617.81, subdivision 2, were committed by the tenant or lessee whose lease or tenancy has been canceled pursuant to this section and the tenant or lessee was not committing the acts in conjunction with or under the control of the owner. HIST: 1987 c 283 s 6; 1995 c 244 s 34; 1997 c 100 s 4; 1997 c 239 art 12 s 10 617.86 CONTEMPT. Whoever violates a temporary injunction, permanent injunction, or abatement order granted under sections 617.80 to 617.87 may be adjudged in contempt of court. HIST: 1987 c 283 s 7 617.87 RELEASE OF PROPERTY. If, after an order of abatement has been entered, the owner appears and pays the costs of the action and files a bond in an amount determined by the court, but not to exceed $50,000, conditioned that the owner will immediately abate the nuisance for a period of one year, the court may, if satisfied of the owner's good faith, order the release of the building or portion of it which is subject to the order of abatement. If the premises are released, for each day during the term of the bond that the owner knowingly permits any part of the premises to be used for any activity which was the basis of the abatement order, the owner shall forfeit $1,000 under the bond. Forfeiture under the bond does not relieve the owner from prosecution for contempt. Release of the property pursuant to this section does not release it from an injunction issued under section 617.83 or any other judgment, penalty, lien, or liability to which it may be subject by law. HIST: 1987 c 283 s 8 Minnesota Health & Housing Alliance Second Edition 1-53 C. EXCERPTS FROM THE MINNESOTA CLEAN AIR ACT 144.413 DEFINITIONS. Subdivision 1. Scope, As used in sections 144.411 to 144.416, the terms defined in this section have the meanings given them. Subd. 2. Public place. "Public place" means any enclosed, indoor area used by the general public or serving as a place of work, including, but not limited to, restaurants, retail stores, offices and other commercial establishments, public conveyances, educational facilities other than public schools, as defined in section 120.05, subdivision 2, hospitals, nursing homes, auditoriums, arenas, meeting rooms, and common areas of rental apartment buildings, but excluding private, enclosed offices occupied exclusively by smokers even though sUch offices may be visited by nonsmokers. Subd. 3. Public meeting. "Public meeting" includes all meetings open to the public pursuant to section 471.705, subdivision 1. Subd. 4. Smoking. "Smoking" includes carrying a lighted cigar, cigarette, pipe, or any other lighted smoking equipment. HIST: 1975 c 211 s 3; 1992 c 576 s 1; 1994 c 520 s 1 144.414 PROHIBITIONS. Subdivision 1. Public places. No person shall smoke in a public place or at a public meeting except in designated smoking areas. This prohibition does not apply in cases in which an entire room or hall is used for a private social function and seating arrangements are under the control of the sponsor of the function and not of the proprietor or person in charge of the place. Furthermore, this prohibition shall not apply to factories, warehouses, and similar places of work not usually frequented by the general public, except that the state commissioner of health shall establish rules to restrict or prohibit smoking in those places of work where the close proximity of workers or the inadequacy of ventilation causes smoke pollution detrimental to the health and comfort of nonsmoking employees. Subd. 3. Health care facilities and clinics. (a) Smoking is prohibited in any area of a hospital, health care clinic, doctor's office, or other health care-related facility, other than a nursing home, boarding care facility, or licensed residential facility, except as allowed in this subdivision. (b) Smoking by patients in a chemical dependency treatment program or mental health program may be allowed in a separated well-ventilated area pursuant to a policy Minnesota Health & Housing Alliance Second Edition established by the administrator of the program that identifies circumstances in which prohibiting smoking would interfere with the treatment of persons recovering from chemical dependency or mental illness. (c) Smoking by participants in peer reviewed scientific studies related to the health effects of smoking may be allowed in a separated room ventilated at a rate of 60 cubic feet per minute per person pursuant to a policy that is approved by the commissioner and is established by the administrator of the program to minimize exposure of nonsmokers to smoke. HIST: 1975 c 211 s 4; 1977 c 305 s 45:1984 c 654 art 2 s 113; 1987 c 399 s 2; 1992 c 576s 2; 1993 c 14 s 1; 1995 c 165 s 2 144.415 DESIGNATION OF SMOKING AREAS. Smoking areas may be designated by proprietors or other persons in.charge of public places, except in places in which smoking is prohibited by the fire marshal or by other law, ordinance or rule. Where smoking areas are designated, existing physical barriers and ventilation systems shall be used to minimize the toxic effect of smoke in adjacent nonsmoking areas. In' the case of public places consisting of a single room, the provisions of this law shall be considered met if one side of the room is reserved and posted as a no smoking area. No public place other than a bar shall be designated as a smoking area in its entirety. Ifa bar is designated as a smoking area in its entirety, this designation shall be posted conspicuously on all entrances normally used by the public. HIST: 1975 c 211 s 5:1985 c 248 s 70 144.416 RESPONSIBILITIES OF PROPRIETORS. The proprietor or other person in charge of a public place shall make reasonable efforts to prevent smoking in the public place by (a) posting appropriate signs; (b) arranging seating to provide a smoke-free area; (c) asking smokers to refrain from smoking upon request of a client or employee suffering discomfort from the smoke; or (d) any other means which may be appropriate. HIST: 1975 c 211 s 6 Minnesota Health & Housing Alliance Second Edition 1-55 1111111 · II. REGISTRATION AND DISCLOSURE REQUIREMENTS FOR RESIDENTIAL SETTINGS · · · · · · · II. REGISTRATION AND DISCLOSURE REQUIREMENTS FOR RESIDENTIAL SETTINGS Two state laws contain registration and disclosure requirements for certain types of residential settings serving the elderly--the Housing-with-Services Contract Act and the Continuing Care Facility Disclosure and Rehabilitation Act. Both laws are designed to provide consumers with the information they need to make good decisions when selecting a place to live. The Housing-with-Services Contract Act was 'initiated by MHHA to provide a flexible, consumer-driven approach to quality assurance for the many diverse housing-with- services settings serving elderly persons throughout Minnesota. MHHA developed the Contract Act approach to quality assurance to eliminate the need for a prescriptive, nursing home-type license in assisted living and other bousing-with-services settings. Under the Contract Act, quality is monitored primarily by consumers, who have a written contract or lease with their housing-with-services provider. This written contract must describe the services to be provided, fees for these services and other pertinent information. The Contract Act, which was passed in 1995 and became effective August I, 1996, requires that any housing-with-services provider meeting its criteria must register with the Minnesota Department of Health. The Contract Act registration is not a license and does not replace other licensing requirements that may also apply to housing-with- services establishments--such as restaurant/food licensure, board and lodging licensure or adult foster care licensure. Although the Contract Act did not create a new licensing system, it did extend the existing home care license requirements (which already applied to health-related services provided in apartments and single family homes) to board and lodging establishments and corporate adult foster care settings registered under the Contract Act. Board and lodging settings registered as housing-with-services establishments and directly providing health- related services have been required to have a home care license since January 1997. Beginning August 2, 1999 (when the new "assisted living home care license" became effective), adult foster care providers registered as housing-with-services establishments and directly providing health-related services are required to obtain a home care license as well. The 1999 Legislature made another change to the Contract Act, requiring non-certified boarding care homes to register if they meet the Contract Act criteria. This amendment was developed after the federal Health Care Financing Administration notified the Minnesota Department of Human Services that Minnesota was out of compliance with federal law because its requirements did not allow residents of non-certified boarding care homes to receive Medicaid services. By bringing the non-certified boarding care homes under the housing-with-services framework, their residents will now be able to access Medicaid home- and community-based waiver services (i.e., Elderly Waiver) through a home care provider. The non-certified boarding care home may choose to obtain a home care license and provide the Elderly Waiver services. MDH's Informational Bulletin 99-8, available on the MDH Web site, explains these various housing-with-services and related home care changes in more detail. Minnesota's Continuing Care Facility Disclosure and Rehabilitation Act outlines requirements for facilities providing continuing care under a written agreement for the life of the individual or for a period of more than one year. The Act applies to those providers of continuing care services that are conditioned upon the payment of an entrance fee of more than $100, as well as regular periodic charges for the services provided. This law requires that such facilities meet specific requirements,.such as registration with the county recorder, disclosure statements to prospective residents. escrow requirements, review of monthly and annual budget statements by residents 'and more. No state agency reviews the disclosure statements or otherwise monitors the actions of CCRCs, but the law outlines criminal penalties for those who willfully and knowingly violate this law. II. REGISTRATION AND DISCLOSURE REQUIREMENTS FOR RESIDENTIAL SETTINGS A. HOUSING-WITH-SERVICES CONTRACT ACT 144D.01 · · · · · · Definitions ........................................................................................... 2-1 Scope .............................................................................................................. 2-1 Adult .............................................................................................................. 2-1 Commissioner ................................................................................................ 2-1 Housing with services establishment or establishment .................................. 2-1 Supportive services ........................................................................................ 2-2 Health-related services ................................................................... ' ................ 2-2 Family adult foster care home ........................................................................ 2-2 144D.02 Registration Required ........................................................................ 2-2 144D.03 Registration ......................................................................................... 2-2 · Registration procedures ................................................................................. 2-2 · Registration information ................................................................................ 2-3 144D.04 Housing With Services Contracts ..................................................... 2-3 · Contract required ........................................................................................... 2-3 · Contents of contract ....................................................................................... 2-3 · Contracts in permanent files .......................................................................... 2-4 144D.05 Authority of Commissioner ............................................................... 2-4 144D.06 Other Laws ......................................................................................... 2-5 144D.07 Restraints ............................................................................................ 2-5 CHAPTER 80D THE CONTINUING CARE FACILITY DISCLOSURE AND REHABILITATION ACT 80D.01 Short Title ............................................................................................. 2-6 80D.02 Definitions ............................................................................................. 2-6 · Continuing care .............................................................................................. 2-6 · Life care ......................................................................................................... 2-6 · Entrance fee .................................................................................................... 2-6 · Facility ........................................................................................................... 2-6 · Living unit ...................................................................................................... 2-6 · Provider .......................................................................................................... 2-6 · Resident .......................................................................................................... 2-6 · Minimum deposit ....................... : ................................................................... 2-7 · Person ............................................................................................................. 2-7 · Affiliate of another person ............................................................................. 2-7 · Offer ............................................................................................................... 2-7 80D.03 Registration ........................................................................................... 2-7 80D.04 · · · · · · Disclosure Statement ............................................................................ 2-8 Generally ........................................................................................................ 2-8 Cover page disclosures .................................................................................. 2-10 Contract forms ............................................................................................... 2-11 Plain language ................................................................................................ 2-I 1 Acknowledgment ........................................................................................... 2-11 Waivers of liability prohibited ....................................................................... 2-11 80D.05 · · · · · Entrance Fee Escrow ........................................................................... 2-12 Escrow account: release of fees ..................................................................... 2-12 Limitation ........................................................................ ~ .............................. 2-13 Fee returned after 36 months ......................................................................... 2-13 Nonrefimdable application fees ..................................................................... 2-13 Accrued interest ............................................................................................. 2-13 Resident copy of escrow agreement ............................................................... 2-13 80D.06 Reserve Fund Escrow .......................................................................... 2-14 · Escrow account; release of funds ................................................................... 2-14 · Facilities established prior to 1975 ................................................................ 2-14 80D.07 Entrance Fee Reimbursement After Occupancy .............................. 2-14 80D.08 Lien on Behalf of Residents ................................................................. 2-14 80D.09 Revised Disclosure ................................................................................ 2-15 80D. I1 · · · · Rehabilitation or Liquidation ............................................................. 2-15 Appointment of trustees ................................................................................. 2-15 Rehabilitation ................................................................................................. 2-16 Termination of rehabilitation; return of facility to provider .......................... 2-16 Liquidation ..................................................................................................... 2-16 Rehabilitation attempt not necessary prior to liquidation .............................. 2-16 Consideration of welfare of residents ............................................................ 2-16 80D.13 Civil Liability ........................................................................................ 2-16 ,.... 80D.16 Criminal Penalties ................................................................................ 2-17 80D.19 Annual Financial Statement Required ...............................................2-17 80D.20 Residents' Review of Budget; Monthly Statements .......................... 2-18 · Formation of association ................................................................................ 2-18 · Annual budget review .................................................................................... 2-18 · Review of monthly expenditure statements ................................................... 2-18 II. REGISTRATION AND DISCLOSURE REQUIREMENTS FOR RESIDENTIAL SETTINGS Ae HOUSING-WITH-SERVICES CONTRACT ACT [includes 1999 amendments] 144D.01. DEFINITIONS. Subdivision 1. Scope. As used in sections 144D.01 to 144D.06, the following terms have the meanings given them. Subd. 2. Adult. "Adult" means a natural person who has attained the age of 18 Subd. 3. Commissioner. "Commissioner" means the commissioner of health or the commissioner's designee. Subd. 4. Housing with services establishment or establishment. "Housing with services establishment" or "establishment" means an establishment providing sleeping accommodations to one or more adult residents, at least 80 percent of which are 55 years of age or older, and offering or providing, for a fee, one or more regularly scheduled health- related services or two or more regularly scheduled supportive services, whether offered or provided directly by the establishment or by another entity arranged forby the establishment. Housing with services establishment does not include: (1) a nursing home licensed under chapter 144A; (2) a hospital, certified boarding care home, or supervised living facility licensed under sections 144.50 to 144.56; (3) a board and lodging establishment licensed under chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 9530.4450, or under chapter 245B; (4) a board and lodging establishment which serves as a shelter for battered women or other similar purpose; (5) a family adult foster care home licensed by the department of human services; (6) private homes in which the residents are related by kinship, law, or affinity with the providers of services; (7) residential settings for persons with mental retardation or related conditions in which the services are licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or applicable successor .rules or laws; (8) a home-sharing arrangement such as when an elderly or disabled person or single- parent family makes lodging in a private residence available to another person in exchange for services or rent, or both; Minnesota Health & Housing Alliance Second Edition 2-1 (9) a duly organized condominium, cooperative, common interest community, or owners' association of the foregoing where at least 80 percent of the units that comprise the condominium, cooperative, or common interest community are occupied by individuals who are the owners, members, or shareholders of the units; or (I 0) services for persons with developmental disabilities that are provided under a license according to Minnesota Rules, parts 9525.2000 to 9525.2140 in effect until January 1, 1998, or under chapter 245B. Subd. 5. Supportive services. "Supportive services" means help with personal laundry, handling or assisting with personal funds of residents, or arranging for medical services, health-related services, social services, or transportation to medical or social services appointments. Arranging for services does not include making referrals, assisting a resident in contacting a service provider of the resident's choice, or contacting a service provider in an emergency. Subd. 6. Health-related services. "Health-related services" include professional nursing services, home health aide tasks, and home care aide tasks identified in Minnesota Rules, parts 4668.0100, subparts 1 and 2; and 4668.0110, subpart 1' or the central storage of medication for residents. ' Subd. 7. Family adult foster care home. "Family adult foster care home" means an adult foster care home that is licensed by the department of human services, that is the primary residence of the license holder, and in which the license holder is the primary caregiver. HIST: 1995 c 207 art 9 s 29; 1997 c 107 s 1:1997 c 113 s 7-10; 3 Sp 1997 c 3 s 6; 1999 c 245 art 2 s 8 144D.02 REGISTRATION REQUIRED. No entity may establish, operate, conduct, or maintain an elderly housing with services establishment in this state without registering and operating as required in sections 144D.01 to 144D.06. HIST: 1995 c 207 art 9 s 30 144D.03 REGISTRATION. Subdivision 1. Registration procedures. The commissioner shall establish forms and procedures for annual registration of housing with services establishments. The commissioner shall charge an annual registration fee of $35. No fee shall be refunded. A registered establishment shall notify the commissioner within 30 days of the date it is no longer required to be registered under this chapter or of any change in the business name or address of the establishment, the name or mailing address of the owner or owners, or the name or mailing address of the managing agent. There shall be no fee for submission of the notice. Minnesota Health & Housing Alliance Second Edition 2-2 Subd. 2. Registration information. The establishment shall provide the following information to the commissioner in order to be registered: (1) the business name, street address, and mailing address of the establishment; (2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners are not natural persons,, identification of the type of business entity of the owner or owners, and the names and addresses of the officers and members of the governing body, or comparable persons for partnerships, limited liability corporations, or other types of business organizations of the owner or owners; (3) the name and mailing address of' the managing agent, whether through management agreement or lease agreement, of the establishment, if different from the owner or owners, and the name of the on-site manager, if any; (4) verification that the establishment has entered into an elderly housing with services contract, as required in section 144D.04, with each resident or resident's representative; (5) the name and address of at least one natural person who shall be responsible for dealing with the commissioner on all matters provided for in sections 144D.01 to 144D.06, and on whom personal service of all notices and orders shall be made, and who shall be authorized to accept service on behalf of the owner or owners and the managing agent, if any; and (6) the signature of the authorized representative of the owner or owners or, if the owner or owners are not natural persons, signatures of at least two authorized representatives of each owner, one of which shall be an officer of the owner. Personal service on the person identified under clause (5) by the owner or owners in the registration shall be considered service on the owner or owners, and it shall not be a defense to any action that personal service was not made on each individual or entity. The designation of one or more individuals under this subdivision shall not affect the legal responsibility of the owner or owners under sections 144D.01 to 144D.06. HIST: 1995 c 207 art 9 s 31' 1997 c 113 s 11 144D.04 ELDERLY HOUSING WITH SERVICES CONTRACTS. Subdivision 1. Contract required. No elderly housing with services establishment may operate in this.state unless a written elderly housing with services contract, as defined in subdivision 2, is executed between the establishment and each resident or resident's representative and unless the establishment operates in accordance with the terms of the contract. The resident or the resident's representative shall be given a complete copy of the contract and all supporting documents and attachments and any changes whenever changes are made. Subd. 2. Contents of contract. An elderly housing with services contract, which need not be entitled as such to comply with this section, shall include at least the following elements in itself or through supporting documents or attachments: (1) name, street address, and mailing address of the establishment; Minnesota Health & Housing Alliance 2 - 3 Second Edition (2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners is not a natural person, identification of the type of business entity of the owner or owners; (3) the name and mailing address of the managing agent, through management agreement or lease agreement, of the establishment, if different from the owner or owners; (4) the name ~d address of at least one natural person who is authorized to accept service on behalf of the owner or owners and managing agent; (5) statement describing the registration and licensure status of the establishment and any provider providing health-related or supportive services under an arrangement with the establishment; (6) term of the contract; (7) description of the services to be provided to the resident in the base rate to be paid by resident; (8) description of any additional services available for an additional fee from the establishment directly or through arrangements with the establishment; (9) fee schedules outlining the cost of any additional services; (1 O) description of the process through which the contract may be modified, amended, or terminated; (11) description of the establishment's complaint resolution process available to residents; (12) the resident's designated representative, if any; (13) the establishment's referral procedures if the contract is terminated; (14) criteria used by the establishment to determine who may continue to reside in the elderly housing with services establishment; (I 5) billing and payment procedures and requirements; (16) statement regarding the ability of residents to receive services from service providers with whom the establishment does not have an arrangement; and (17) statement regarding the availability of public funds for payment for residence or services in the establishment. Subd. 3. Contracts in permanent files. Elderly housing with services contracts and related documents executed by each resident or resident's representative shall be maintained by the establishment in files from the date of execution until three years after the contract is terminated. The contracts shall be made available for on-site inspection by the commissioner upon request at any time. HIST: 1995 c 207 art 9 s 32 144D.05 AUTHORITY OF COMMISSIONER. The commissioner shall, upon receipt of information which may indicate the failure of the elderly housing with services establishment, a resident, a resident's representative, or a service provider to comply with a legal requirement to which one or more of them may be subject, make appropriate referrals to other governmental agencies and entities having jurisdiction over the subject matter. The commissioner may also make referrals to any public Minnesota Health & Housing Alliance Second Edition 2-4 or private agency the commissioner considers available for appropriate assistance to those involved. The commissioner shall have standing to bring an action for injunctive relief in the district court in the district in which an establishment is located to compel the elderly housing with services establishment to meet the requirements of this chapter or other requirements of the state or of any county or local governmental unit to which the establishment is otherwise subject. Proceedings for securing an injunction may be brought by the commissioner through the attorney general or through the appropriate county attorney. The sanctions in this section do not restrict the availability of other sanctions. HIST: 1995 c 207 art 9 s 33 144D.06 OTHER LAWS. A housing with services establishment shall obtain and maintain all other licenses, permits, registrations, or other governmental approvals required of it in addition to registration under this chapter. A housing with services establishment is subject to the provisions of chapter 504B. HIST: 1995 c 207 art 9 s 34; 1996 c 305 art 1 s 36; 1997 c 113 s 13; 1999 c 199 art 2s5 144D.07 RESTRAINTS. Residents must be free from any physical or chemical restraints imposed for purposes of discipline or convenience. HIST: 1997 c 113 s 12 Minnesota Health & Housing Alliance Second Edition 2-5 CHAPTER 80D - THE CONTINUING CARE FACILITY DISCLOSURE AND REHABILITATION ACT 80D.01 SHORT TITLE. Sections 80D.01 to 80D. 16 may be cited as the continuing care £acility disclosure and rehabilitation act. HIST: 1980 c 516 s 3,'1981 c 135 s 1 80D.02 DEFINITIONS. Subdivision 1. As used in sections 80D.01 to 80D.16, the terms defined in this section have the meanings given them. Subd. 2. "Continuing care" means the furnishing to an individual, other than an individual related by blood or marriage to the person furnishing the care. of board, lodging, and nursing service, medical service or other health related service, regardless of whether or not the lodging and service are provided at the same location, pursuant to a written agreement effective for the life of the individual or for a period in excess of one year, which is conditioned upon the payment of an entrance fee in excess of $100 and the payment of regular periodic charges for the care provided. Subd. 2a. "Life care" means "continuing care" as defined in subdivision 2. Subd, 3. Repealed, 1981 c 135 s 14 Subd. 4. "Entrance fee" means the total of any initial or deferred transfer to or for the benefit of a provider of a sum of money or other property made or promised to be made as full or partial consideration for acceptance or maintenance of a specified individual as a resident in a facility. Subd. 5. "Facility" means the place in which a person undertakes to provide continuing care to an individual. Subd. 6. "Living unit" means a room, apartment, cottage or other area within a facility set aside for the exclusive use or control of one or more identified individuals. Subd. 7. "Provider" means a person undertaking to provide continuing care in a facility. Subd. 8. "Resident" means an individual entitled to receive continuing care in a facility. Minnesota Health & Housing Alliance Second Edition 2-6 Subd. 9. "Minimum deposit" means a deposit equal to or greater than five percent of the entrance fee. Subd. 10. "Person" means any individual, corporation, business trust, trust, partnership, unincorporated association, two or more of any of the foregoing having a joint or common interest or any legal or commercial entity. Subd. 11. "Affiliate of another person" means any person directly or indirectly controlling, controlled by or under common control with such other person. Subd. 12. "Offer" includes every inducement, solicitation or attempt to encourage a person to enter into a subscription or residency agreement. HIST: 1980 c 516 s 2,4; 1981 c 135 s 2,3 80D.03 REGISTRATION. Subdivision 1. ^ provider shall not enter into a contract that requires or permits the payment of an entrance fee in consideration for a promise to provide continuing care in the facility, if the facility is or will be located in this state, or if the provider or a person acting on the provider's behalf solicits the contract within this state and the person to be provided with continuing care under the contract resides within this state at the time of the solicitation, unless the provider h_as filed in the office of the county recorder of the county in which the facility is or will be located, a current disclosure statement which meets the requirements of section 80D.04, a verified statement of the escrow agent to the effect that the escrow required by section 80D.05 or 80D.06 has been established, and a filing fee in the amount of $100 has been paid. Subd. 2. A contract to provide continuing care is solicited in this state if, during the 12-month period preceding the date the contract is signed or accepted by either party, information concerning the facility or availability of the contract is given: (a) By personal, telephone or mail contact or other communication directed to and received by a person at a location in this state; or (b) In a paid advertisement published or broadcast from within this state other than in a periodical more than two-thirds of the circulation of which is outside this state. Subd. 3. Repealed, 1981 c 135 s 14 Subd. 4. Repealed, 1981 c 135 s 14 HIST: 1980 c 516 s 5; 1981 c 13.5 s 4 Minnesota Health & Housing Alliance Second Edition 2-7 80D.04 DISCLOSURE STATEMENT. Subdivision 1. Generally. Before the execution of a contract to provide continuing care, or before the transfer of any money or other property to a provider by or on behalf of a prospective resident, whichever occurs first, the provider shall deliver a disclosure statement to the person with whom the contract is to be entered into or, the person's legal representative, the text of which shall contain, to the extent not clearly and completely set forth in the contract for continuing care attached as an exhibit thereto, at least the following information: (a) The name and business address of the provider and a statement of whether the provider is a partnership, corporation, or other type of legal entity; (b) The names of the officers, directors, trustees, or managing or general partners of the provider, and any person having a ten percent or greater equity or beneficial interest in the provider, and a description of the person's interest in or occupation with the provider; (c) With respect to the provider, any person named pursuant to paragraph (b) and the proposed manager of the facility if the facility will be managed on a day to day basis by a person other than the provider, (1) A description of the person's business experience, if any, in the operation or management of similar facilities; (2) The name and address of any professional service, firm, association, trust, partnership or corporation in which the person has, or which has in the person, a ten percent or greater interest and which will or may provide goods, leases, or servi~s to the facility of a value of $500 or more within any year, including a description of the goods, leases, or services and the probable or anticipated cost thereof to the facility or provider or a statement that the cost cannot presently be estimated; and (3) A description of any matter in which the person has been convicted of a felony or pleaded nolo contendere to a felony charge, or been held liable or enjoined in a civil action by final judgment if the felony or civil action involved fraud, embezzlement, fraudulent conversion or misappropriation of property; or is subject to a currently effective injunctive or restrictive order of a court of record, or within the past five years has had any state or federal license or permit suspended or revoked as a result of an action brought by a governmental agency or department, arising out of or relating to business activity or health care, including without limitation actions affecting a license to operate a foster care facility, nursing home, retirement home, home for the aged, or facility subject to this section or a similar act in another state; (d) A statement as to whether or not the provider is, or is affiliated with, a religious, charitable or other nonprofit organization; the extent of the affiliation, if any; the extent to which the affiliate organization is responsible for the financial and contract obligations of the provider; and the provision of the federal internal revenue code under which the provider or affiliate is exempt from the payment of income tax, if any; (e) Ihe location and description of the physical property of the facility, existing or proposed; and to the extent proposed, the estimated completion date or dates, whether or not construction has begun and the contingencies subject to which construction may be deferred; (f) The goods and services provided or proposed to be provided under contracts for continuing care at the facility, including the extent to which medical care is furnished. The Minnesota Health & Housing Alliance Second Edition 2 - 8 disclosure statement shall clearly state which goods and services are included in basic contracts for continuing care and which goods and services are made available at or by the facility at extra charge and whether they are provided by an affiliate; (g) A description of all fees required of residents, including the entrance fee and periodic charges, if any. The description shall include: (1) A statement of the fees that will be charged if the resident marries while at the facility, and a statement of the terms concerning the entry of a spouse to the facility and the consequences if the spouse does not meet the requirement for entry; (2) The circumstances under which the resident will be permitted to remain in the facility in the event of possible financial difficulties of the resident; (3) The terms and conditions under which a contract for continuing care at the facility may be canceled by the provider or by the resident; and the conditions under which all or any portion of the entrance fee will be refunded in the event of cancellation of the contract by the provider or by the resident or in the event of the death of the resident prior to or following occupancy of a living unit; (4) The conditions under which a living unit occupied by a resident may be made available by the facility to a different or new resident other than on the death of the original resident; and (5) The manner by which the provider may adjust periodic charges or other recurring fees and the limitations on these adjustments, if any. If the facility is already in operation, or if the provider or manager operates one or more similar facilities within this state, there shall be included tables showing the frequency and average dollar amount of each increase in periodic rates at each facility for the previous five years or for whatever period that the provider or manager has operated the facility if this period is less than five years; (h) The health and financial conditions required for an individual to be accepted as a resident and to continue as a resident once accepted, including the effect of any change in the health or financial condition of a person between the date of entering a contract for continuing care and the date of initial occupancy of a living unit by that person; (i) The provisions that have been made or will be made to provide reserve funding or security to enable the provider to fully perform its obligations under contracts to provide continuing care at the facility, including the establishment of escrow accounts, trusts or reserve funds, together with the manner in which the funds will be invested and the names and experience of persons who will make the investment decisions; (j) Financial statements of the provider which shall be prepared in accordance with generally accepted accounting principles and audited by an independent certified public accountant who shall express an opinion thereon and shall include a balance sheet as of the end of the most recent fiscal year and income statements for the three most recent fiscal years of the provider or for whatever period the provider has operated the facility if this period is less than three years. If the provider's fiscal year ended more than 90 days prior to the date the application is filed, interim financial statements as ora date not more than 90 days prior to the filing shall be included, but need not be certified; (k) If operation of the facility has not yet commenced, a statement of the anticipated source and application of the funds used or to be used in the purchase or construction of the facility, including: Minnesota Health & Housing Alliance Second Edition 2-9 ( I ) An estimate of the cost of purchasing or constructing and equipping the facility including such related costs as financing expense, legal expense, land costs, occupancy development costs, and all other similar costs that the provider expects to incur or become obligated for prior to the commencement of operations; (2) A description of any mortgage loan or other long term financing intended to be used for the financing of the facility, including the anticipated terms and costs of the financing; (3) An estimate of the total entrance fees to be received from residents at or prior to commencement of operation of the facility; and (4) An estimate of the funds, if any, that are anticipated to be necessary to fund start- up losses and provide reserve funds to assure full performance of the obligations of the provider under contracts for the provision of continuing care; (1) Pro forma annual income statements for the facility for a period of not less than five fiscal years, including: (1) A beginning cash balance consistent with the certified income statement required by clause (j) or, if operation of the facility has not commenced, consistent with the statement of anticipated source and application of funds required by clause (k); (2) Anticipated earnings on cash reserves, if any; (3) Estimates of net receipts from entrance fees, other than entrance fees included in the statement of source and application of funds required by clause (k), less estimated entrance fee refunds, if any. A description of the actuarial basis and method of calculation for the projection of entrance fee receipts shall be included; (4) An estimate of gifts or bequests to be relied on to meet operating expenses and the basis therefor; (5) A projection of estimated income from fees and charges other than entrance fees, showing individual rates presently anticipated to be charged and including a description of the criteria used for calculating the estimated occupancy rate of the facility and the effect on the income of the facility of government subsidies for health care services to be provided pursuant to the contracts for continuing care; (6) A projection of estimated operating expenses of the facility, including a description of the assumptions used in calculating the expenses, and separate allowances, if any, for the replacement of equipment and furnishings and anticipated major structural repairs or additions; and (7) An estimate of annual payments of principal and interest required by any mortgage loan or other long term financing; and (m) Other material information concerning the facility or the provider that is required by the commissioner or that the provider wishes to include. Subd. 2. Cover page disclosures. The cover page of the disclosure statement shall state, in a prominent location and in boldface type, the date of the disclosure statement, the last date through which that disclosure statement may be delivered if not earlier revised, and that delivery of the disclosure statement to a contracting party before the execution of a contract for the provision of continuing care is required by sections 80D.01 to 80D. 16 but that the disclosure statement has not been reviewed or approved by any government agency or representative to insure accuracy or completeness of the information set out. Minnesota Health & Housing Alliance Second Edition :2- 10 Subd. 3. Contract forms. A copy of the standard form or forms of contract for continuing care used by the provider shall be attached as an exhibit to each disclosure statement. Each contract shall provide that: (a) The party contracting with the provider may for any reason rescind the contract within ten days following the later of the execution of the contract or the receipt of the disclosure statement, in which event any money or property transferred to the provider shall be returned in full. The resident to whom the contract pertains is not required to move into the facility before the expiration of the ten day period; and (b) Ifa resident dies before occupying a living unit in the facility, or if on account of illness, injury or incapacity would be precluded from occupying a living unit in the facility under the terms of the contract for continuing care, the contract is automatically canceled and the resident or legal representative of the resident shall receive a refund of all money or property transferred to the provider, less (a) those costs specifically incurred by the provider or facility at the request of the resident and described in the contract or an addendum thereto signed by the resident; and (b) a reasonable service charge, if set out in the contract, not to exceed the greater of $350 or two percent of the entrance fee. Subd. 4. Plain language. The disclosure statement required by this section shall be written in language easily readable and understandable by a person of average intelligence and education. Subd. 5. Acknowledgment. The last page of the disclosure statement shall consist of a detachable "acknowledgment of receipt" which shall be signed and dated by the prospective resident and a copy of which shall be kept on file in the office of the provider for four years from the date of the acknowledgment. Subd. 6. Waivers of liability prohibited. (a) A contract between a facility and resident or resident's representative must not include a waiver of facility liability for the health and safety or personal property of a resident while the resident is under the facility's supervision. A contract must not contain a provision that the facility knows or should know to be deceptive, unlawful, or unenforceable under state or federal law, nor any provision that requires or implies a lesser standard of care or responsibility than is required by law. (b) This subdivision applies to new admissions to facilities on and after October 1, 1989. This subdivision does not require the execution ora new admission contract for a resident who was residing in a facility before August 1, 1989. However, provisions of the admission contract that are inconsistent with or in conflict with this subdivision are voidable at the sole option of the resident. Residents must be given notice of the changes in admission contracts according to this subdivision and must be given the opportunity to execute a new contract that conforms to this subdivision. HIST: 1980 c 516 s 6; 1981 c 135 s 5; 1989 c 285 s 1 Minnesota Health & Housing Alliance Second Edition 2-11 80D.05 ENTRANCE FEE ESCROW. Subdivision 1. Escrow account; release of fees. Prior to soliciting or entering into any contract for the provision of continuing care, the provider shall establish with a bank or trust company having its principal place of business in this state, as an escrow agent, an entrance fee escrow pursuant to which the provider shall deposit with the escrow agent, within 72 hours of receipt by the provider, each entrance fee or portion of an entrance fee received by the provider from or on behalf of a resident prior to the date the resident is permitted to occupy a living unit in the facility, subject to release as follows: (a) If the entrance fee applies to a living unit that has been previously occupied in the facility, the entrance fee shall be released to the provider at the time the living unit becomes available for occupancy by the new resident, or shall be returned to the resident or the resident's personal representative under the conditions described in section 80D.04, subdivision 3, if the escrow agent has received written demand for return of the entrance fee prior to the release thereof to the provider; (b) If the entrance fee applies to a living unit which has not previously been occupied by any resident, the entrance fee shall be returned to the resident or the resident's legal representative under the conditions described in section 80D.04, subdivision 3, if the escrow agent receives written demand for return of the entrance fee prior to release thereof to the provider, or the entrance fee shall be released to the provider at the time all of the following conditions have been met: (1) The facility has 65 percent of its units reserved as determined by signed written agreements and minimum deposits received; or if the written agreement requires a minimum deposit of more than one-third of the entrance fee, then the facility may have 50 percent of the units reserved and 50 percent of the facility must be completely constructed; and (2) The sum of entrance fees received or receivable by the provider pursuant to binding contracts for continuing care, plus the anticipated proceeds of any first mortgage loan or other long-term financing commitment, plus funds from other sources in the actual possession of the provider, equals or exceeds the sum of 90 percent of the aggregate cost of constructing or purchasing, equipping and furnishing the facility plus 90 percent of the funds estimated in the statement of anticipated source and application of funds submitted by the provider as part of its permit application, to be necessary to fund start-up losses of the facility plus 90 percent of the amount of the reserve fund escrow, if any, required to be maintained by the provider pursuant to section 80D.06; and (3) A commitment has been received by the provider for any permanent mortgage loan or other long term financing described in the statement of anticipated source and application of funds included in the current disclosure statement on file pursuant to section 80D.04, and any conditions of the commitment prior to disbursement of funds thereunder, other than completion of the construction or closing of the purchase of the facility, have been substantially satisfied; and (4) If construction of the facility has not been substantially completed, all governmental permits or approvals necessary prior to the commencement of construction have been obtained; and a maximum price contract has been entered into between the provider and a general contractor responsible for construction of the facility; a bond covering the faithful performance of the construction contract by the general contractor and the Minnesota Health g Housing Alliance Second Edition 2 - 12 payment of all obligations arising thereunder has been issued by an insurer authorized to do business in this state with the provider as obligee; a loan agreement has been entered into by the provider for an interim construction loan in an mount which, when combined with the amount of entrance fees then held in escrow under the provisions of this section plus the amount of funds from other sources then in the actual possession of the provider, will equal or exceed the estimated cost of constructing, equipping and furnishing the facility; not less than ten percent of the amount of the construction loan has been disbursed by the lender for physical construction or site preparation work completed; and orders at firm prices have been placed by the provider for not less than 50 percent in value, including installation charges if applicable, of items necessary for equipping and furnishing the facility in accordance with the description set forth in the disclosure statement required by section 80D.04; or If construction or purchase of the facility has been substantially completed, an occupancy permit covering the living unit has been issued by the local government having authority to issue these permits. Subd. 2. Limitation. The aggregate amount of entrance fees which may be released to the provider pursuant to subdivision 1, clause (b) prior to the date on which any reserve fund escrow under section 80D.06 is established shall not exceed the aggregate amount of entrance fees then received or receivable by the provider pursuant to binding contracts for continuing care less the amount of the entrance fees received or receivable which will be required to be initially maintained in the reserve fund escrow; Subd. 3. Fee returned after 36 months. If an entrance fee to which subdivision 1, clause (b) applies is not released pursuant thereto within a period of 36 months bom receipt of the entrance fee by the provider or within a greater time that has been specified by the provider in the disclosure statement delivered, pursuant to section 80D.04, to the person with whom the contract for continuing care to which the entrance fee pertains was made, then the fee shall be returned by the escrow agent to the persons who had paid them to the provider. Subd. 4. Nonrefundable application fees. Nothing in this section requires the escrow of any nom'efundable application fee that does not exceed two percent of the entrance fee and is clearly designated as such in the contract for continuing care. Subd. 5. Accrued interest. Interest accrued on entrance fees or deposits held in escrow is the property of the provider only if the funds are ultimately released to the provider. Subd. 6. Resident copy of escrow agreement. The provider shall provide each prospective resident who has signed a contract for continuing care with a copy of the escrow agreement referred to in subdivision 1, which agreement shall set forth the name, address, and telephone number of the escrow agent. HIST: 1980 c 516 s 7; 1981 c 135 s 6 Minnesota Health & Housing Alliance Second Edition 2-13 80D.06 RESERVE FUND ESCROW. Subdivision 1. Escrow account; release of funds. At the time a facility is first occupied by any resident and thereafter, the provider shall establish and maintain on a current basis, in escrow with a bank or trust company having its principal place &business in this state, as an escrow agent, a portion of all entrance fees received by the provider in an aggregate amount of up to the total of all principal and interest payments due during the next 1:2 months on accoum of any first mortgage loan or other long term financing of the facility. The funds in thc escrow account may be invested with the earnings thereon payable to the provider. If the provider requests and sets forth its reasons in writing, thc escrow agent shall release up to 1/12 &the original principal balance of thc escrow account. A release of funds shall not be made more than once during any calendar month, and then only after the escrow agent has given written notice of the release and the reasons therefor to any resident or association of residents, or the legal representative of a resident or association of residents, that has requested it at least ten days prior to the release. Any person or affiliate of any person that controls any part of the reserve escrow fund comprised in part or totally of funds removed from the provider's resources, is liable for the debts of the provider up to the amount of the provider's contribution to the fund plus any prorated interest the fund may earn. Subd. 2. Facilities established prior to 1975. In those instances where a provider has been offering continuing care in a facility since prior to January 1, 1975, the following shall apply. The provider shall establish a reserve escrow fund and shall contribute to it 15 percent of each new entrance fee received by the provider a/~er December 31, 1981. The funds thereby received shall be permitted to accumulate until there is in the reserve fund an amount equal to the total of all principal and interest payments due during the next 12 months on account of any first mortgage loan or other long term financing obligation of the facility. HIST: 1980 c 516 s 8; 1981 c 135 s 7 80D.07 ENTRANCE FEE REIMBURSEMENT AFTER OCCUPANCY. Any resident may terminate the residency agreement at any time after assuming residency. A residency agreement may not require more than 120 days written notice by any resident desiring to terminate; nor require any additional fees for termination of residency. The termination terms and provisions for reimbursement shall be stated in the residency agreement. HIST: 1980 c 516 s 9; 1986 c 444 80D.08 LIEN ON BEHALF OF RESIDENTS. Effective at the time a faciliw is first occupied by any resident, there shall exist a lien on thc real and personal property of the provider or facility to secure the obligations of thc provider pursuant to existing and future contracts for continuing care. A lien under this Minnesota Health & Housing Alliance Second Edition 2 - 14 section is effective for a period of ten years. The lien may be foreclosed upon the liquidation of the facility or the insolvency or bankruptcy of the provider, and in that event the proceeds shall be used in full or partial satisfaction of obligations of the provider pursuant to contracts for continuing care then in effect. HIST: 1980 c 516 s 10; 1981 c 135 s 8 80D.09 REVISED DISCLOSURE. Annually within 120 days following the end of the provider's fiscal year, the provider shall file with the county recorder of the county in which the facility is or will be located a revised disclosure statement setting forth, as of the end of the fiscal year, information meeting the requirements of section 80D.04, and pay a $100 filing fee. The revised disclosure statement shall include a narrative describing any material differences between (a) the pro forma income statements filed in response to section 80D.04, subdivision 1, clause (1) as a part of the disclosure statement filed most immediately subsequent to the start of the provider's most recently completed fiscal year and (b) the actual results of operations during the fiscal year together with the revised pro forma income statements being filed as a part of the revised disclosure statement. A provider may, upon payment of a $100 filing fee, revise its disclosure statement on file with the county recorder at any other time if, in the opinion of the provider, revision is necessary to prevent the disclosure statement from containing a material misstatement of fact or omitting to state a material fact required to be stated therein. Only the most recently filed disclosure statement with respect to a facility, and in any event only a disclosure statement dated within 120 days prior to the date as of which the determination is made, shall be deemed current for purposes of sections 80D.01 to 80D. 16 or be delivered pursuant to section 80D.04. In addition, the provider shall make the revised disclosure statement available for inspection by residents during regular business hours. HIST: 1980 c 516s 11; 1981 c 135 s 9 80D.11 REHABILITATION OR LIQUIDATION. Subdivision 1. Appointment of trustees. If (a) a portion of a reserve fund escrow required under section 80D.06 has been or is proposed to be released, or (b) a provider has been or will be unable, in a manner as may endanger the ability of the provider to fully perform its obligations pursuant to contracts for continuing care or to meet the pro forma income or cash flow projections previously filed by the provider, or (c) a provider is bankrupt or insolvent or has filed for protection from creditors under any federal or state bankruptcy or insolvency law, then any resident or association of residents, or the legal representative of a resident or association of residents, may apply to a district court of this state, or to the federal bankruptcy court which may have previously taken jurisdiction over the provider or facility for an order directing the appointment of a trustee to rehabilitate or liquidate a facility. Minnesota Health & Housing Alliance Second Edition 2-15 Subd. 2. Rehabilitation. An order to rehabilitate a facility shall direct the trustee to take possession of the property of the provider and to conduct the business thereof, including the employment of such managers or agents as the trustee may deem necessary, and to take steps as the court may direct toward removal of the causes and conditions which have made rehabilitation necessary. Subd. 3. Termination of rehabilitation; return of facility to provider. If the court finds, upon petition of the trustee or the provider, or on its own motion, that the objectives of an order to rehabilitate a provider have been accomplished and that the facility can be returned to the provider's management without further jeopardy to the residents of the facility, creditors, owners of the facility, or to the public, the court may, upon a full report and accounting of the conduct of the facility's affairs during the rehabilitation and of the facility's current financial condition, terminate the rehabilitation and by order return the facility and its assets and affairs to the providers management. Subd. 4. Liquidation. If, at any time, the trustee determines that further efforts to rehabilitate the provider would be useless, it may apply to the court for an order of liquidation. Subd. 5. Rehabilitation attempt not necessary prior to liquidation. An order to liquidate a facility may be issued whether or not there has been issued a prior order to rehabilitate the facility. The order shall appoint a trustee to marshall and liquidate all of the provider's assets located within this state. Effective upon the entry of an order to liquidate a facility, no additional contracts for the provision of continuing care at that facility shall be made by any person. Subd. 6. Consideration of welfare of residents. In connection with an application for an order to rehabilitate or liquidate a facility, a court shall give due consideration to the manner in which the welfare of persons who have previously contracted with the provider for continuing care may be best served. In furtherance of this objective, the proceeds of any lien pursuant to section 80D.08 may be used in full or partial payment of entrance fees, on behalf of residents ora facility being liquidated, to other facilities then in compliance with the provisions of sections 80D.01 to 80D. 16. HIST: 1980 c 516 s 13; 1981 c 135 s 10 80D.13 CIVIL LIABILITY. Subdivision 1. Any person who, as or on behalfofa provider, enters into a contract for continuing care at a facility without having first delivered a disclosure statement meeting the requirements of section 80D.04 to the person contracting for the continuing care, or enters into a contract for continuing care at a facility with a person who has relied on a disclosure statement that omits to state a material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they are made, not misleading, is liable to the person contracting for the continuing care for damages Minnesota Health g Housing Alliance Second Edition 2 - 16 and repayment of all fees paid to the provider, facility or person violating sections 80D.01 to 80D. 11, less the reasonable value of care and lodging provided to the resident by or on whose behalf the contract for continuing care was entered into prior to discovery of the violation, misstatement or omission or the time the violation, misstatement or omission should reasonably have been discovered, together with interest thereon at the legal rate for judgments, and court costs and reasonable attorney fees. Subd. 2. Liability under this section for any violation, misstatement or omission exists only if the provider or person liable knew or should have known of the violation, the misstatement or omission. Subd. 3. Nothing contained in sections 80D.01 to 80D. 16 shall be construed to limit the remedies a person has under any other law. HIST: 1980 c 516 s 15; 1981 c 135 s 11; 1987 c 384 art 2 s 1 80D. 16 CRIMINAL PENALTIES. Any person who willfully and knowingly violates any provision of sections 80D.03 to 80D. 16 shall upon conviction be fined not more than $20,000 or imprisoned not more than one year, or both. Nothing in sections 80D.03 to 80D. 16 limits the power of the state to punish any person for any conduct which constitutes a crime under any other statute. HIST: 1980 c 516 s 18:1981 c 135 s 12; 1984 c 628 art 3 s 11 80D.19 ANNUAL FINANCIAL STATEMENT REQUIRED. A provider shall prepare and distribute an annual financial statement to the residents of a facility. The statement shall be prepared in accordance with generally accepted accounting principles and shall be distributed within four months of the end of the provider's fiscal year. The statement must reflect all of the income and expense attributable to the facility for the fiscal year covered. The statement must account for all receipts and disbursements from whatever source derived, to whatever source paid, arising from the operation of the facility. All entrance and maintenance fees, actual interest received and paid, and loan proceeds received, and interest and principal paid thereon, must be accounted for whether or not included in separate accounts because of trust, escrow, or other requirements. Items of income and expense to be allocated between a facility and another accounting entity must be allocated in accordance with generally accepted accounting principles. The allocation must be noted in the statement. The statement must be in sufficient detail to be meaningful but must be easily readable by, and understandable to, a person of average intelligence and education. The statement must include comparable data for the fewer of: each of the last five years; or for each year since the first receipts or disbursements, arising out of the facility Minnesota Health & Housing Alliance Second Edition 2-17 project. If comparable data does not exist and cannot be created for a past year, the variation must be noted and explained in the statement. HIST: 1984 c 641 s 7 80D.20 RESIDENTS' REVIEW OF BUDGET; MONTHLY STATEMENTS. Subdivision 1. Formation of association. The residents of a facility may form a residents' association to deal with common interests related to their residency. The association may be organized in any way so long as each resident is given an equal opportunity to participate and an equal vote in the association's decisions including those delegating authority to the association's officers, board, and committees, if any. Subd. 2. Annual budget review. Upon notification to it of the existence ora residents' association, the provider must present its annual budget to the association for comment before its adoption. The budget must be in sufficient detail to be meaningful, but must be readable by, and understandable to, a person of average intelligence and education. The budget must reflect the projected collection and disbursement of receipts of any kind, for any purpose by the provider, or any person related in business to the provider, attributable to residents of the facility, including interest income, and trust assets, during the budget year. Subd. 3. Review of monthly expenditure statements. Throughout the budget year, the provider must give the association timely monthly statements of current income and expense showing year-to-date relationship to the annual budget, and explanations for a deviation from the budget. The association or its representative may comment on, or raise questions about, the monthly statements, to the provider. Subd. 4. The penalty provisions of section 80D. 16 shall apply to provider actions in Laws 1984, chapter 641, sections 2 and 3. HIST: 1984 c 641 s 8 Minnesota Health & Housing Alliance Second Edition 2-18