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
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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
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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.
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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.
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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
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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
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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.
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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.
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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
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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.
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(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,
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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.
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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
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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.
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(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
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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
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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
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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
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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.
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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,
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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
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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:
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(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
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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.
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(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
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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.
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(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:
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(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:
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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
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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.
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(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.
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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
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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.
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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.
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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.
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(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.
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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
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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.
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(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.
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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:
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(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
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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
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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
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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.
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Sec. 76. [EFFECTIVE DATE.[
This article is effective July I, 1999.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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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
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1111111
· II.
REGISTRATION AND
DISCLOSURE
REQUIREMENTS FOR
RESIDENTIAL SETTINGS
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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
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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
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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
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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
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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;
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(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.
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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;
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(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
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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
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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.
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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
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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
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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:
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( 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.
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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
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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
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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
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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
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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.
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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
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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
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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
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