Bill No. 2018-11
BILL NO. 2018-11
AN ORDINANCE ADOPTING A NEW CITY CODE SECTION 409 RELATING TO THE
SALE OF AFFORDABLE RENTAL HOUSING AND ESTABLISHING NOTICE AND
RELOCATION ASSISTANCE REQUIREMENTS FOR NEW OWNERS
THE CITY OF RICHFIELD DOES ORDAIN:
SECTION 1.
The Richfield City Code is amended by adding a new Section 409 as
follows:
SECTION 409. – SALE OF AFFORDABLE RENTAL HOUSING; NOTICE AND
RELOCATION ASSISTANCE REQUIREMENTS
409.00. – Purpose
. It is the purpose of this Section to provide housing stability and
protection to tenants in affordable rental housing who are facing displacement by
providing for notice to the City and tenants when transitions from current affordable
housing uses are planned, and providing tenant relocation assistance when affordable
housing is converted and tenants are required to move without adequate time to find new
housing.
409.01. – Definitions.
Subdivision. 1.
The following definitions apply in this Section:
(a) “Affordable housing building” means an apartment house as defined in
407.03 having three or more dwelling units, where at least 20% of the units
rent for an amount that is affordable to households at or below 60 percent of
area median income, as median income was most recently determined by
the United States Department of Housing and Urban Development for the
Minneapolis-St. Paul-Bloomington, Minnesota- Wisconsin Metropolitan
Statistical Area, as adjusted for household size and number of bedrooms.
(b) “Affordable housing unit” means a rental unit in an affordable housing
building that rents for an amount that is affordable to households at or
below 60 percent of area median income, as median income was most
recently determined by the United States Department of Housing and Urban
Development for the Minneapolis-St. Paul- Bloomington, Minnesota-
Wisconsin Metropolitan Statistical Area, as adjusted for household size and
number of bedrooms.
(c) “Cause” means the tenant or a member of the tenant’s household
materially violated a term of the lease or rental agreement, or violated an
applicable federal, state, or local law or regulation.
(d) “Relocation assistance” means a payment in the amount equal to three
months of the current monthly contract rent.
Bill No. 2018-11
(e) “Tenant protection period” means the period that commences on the date
when written notice of the transfer of ownership is sent to each affordable
housing unit tenant pursuant to subsection 409.03 and ends on the last
day of the third full calendar month following the date on which the notice
was sent pursuant to subsection 409.03.
(f) “Transfer of ownership” means any conveyance of title to an affordable
housing building, whether legal or equitable, voluntary or involuntary,
resulting in a transfer of control of the building, effective as of the earlier of
the date of delivery of the instrument of conveyance or the date the new
owner takes possession.
409.03. – Transfer of Ownership.
Subdivision 1.
Notice. Within thirty (30) days after the transfer of ownership of an
affordable housing building, the new owner shall give written notice to each affordable
housing unit tenant of the building that the property is under new ownership. The notice
must include the following information:
(a) The name, mailing address, and telephone number of the new owner.
(b) The following statement: Richfield City Code Section 409 provides for
a three-month tenant protection period for affordable housing unit tenants
after an affordable housing building is transferred to a new owner. Under
Section 409, affordable housing unit tenants are entitled to relocation
assistance from the new owner if, during the tenant protection period, the
new owner:
(1) Without cause, terminates or does not renew the tenant’s rental
agreement;
(2) Raises the rent and the tenant submits a written notice of
termination of their rental agreement; or,
(3) Requires existing affordable housing unit tenants to comply with
new residency screening criteria and the owner or tenant terminates
or does not renew the tenant’s rental agreement.
(c) Whether there will be any rent increase during the tenant protection period,
the amount of the rent increase, and the date the rent increase will take
effect.
(d) Whether the new owner will require existing affordable housing unit tenants
to comply with new residency screening criteria during the tenant protection
period and, if so, a copy of the new screening criteria.
Bill No. 2018-11
(e) Whether the new owner will, without cause, terminate or not renew the
tenant’s rental agreement during the tenant protection period, and if so, the
date the rental agreement will terminate and the amount of relocation
assistance that will be provided.
(f) The date the tenant protection period will expire.
(g) Whether the new owner, on the day immediately following the tenant
protection period, intends to: increase rent; require existing affordable
housing unit tenants to comply with new residency screening criteria; or,
without cause, terminate or not renew affordable housing unit rental
agreements.
Subd. 3.
Copy of notices to City. The new owner shall provide a copy of the notices
required by this subsection to the City at the same time notice is provided to the tenant or
tenants.
Subd. 4
. Copy of Rent Roll to City. If the new owner claims the property or the unit
does not meet the definition of Affordable Housing Building or Affordable Housing Unit,
upon request, the owner shall provide a copy of the rent roll, including the amount of
contract rents paid by tenants, to the City.
Subd. 5.
Language requirement. Each notice required by this subsection shall
contain an advisory that reads as follows: “This is important information about your
housing. If you do not understand it, have someone translate it for you now, or request a
translation from your landlord.” This advisory must be stated in the notice in the following
languages: Spanish, Somali, and Hmong. Upon request by a tenant, the owner must
provide a written translation of the notice into the tenant’s native language.
409.05. – Relocation Assistance.
Subdivision 1.
When required.A new owner of an affordable housing building must
pay relocation assistance to affordable housing unit tenants when, during the tenant
protection period, the new owner:
(a) Without cause, terminates or does not renew the tenant’s rental
agreement; or,
(b) Raises the rent and the tenant submits a written notice of termination of
their rental agreement; or
(c) Requires existing tenants to comply with new residency screening
criteria and the owner or tenant terminates or does not renew the tenant’s rental
agreement.
Subd. 2.
When paid. The new owner must pay the relocation assistance to the
tenant within 30 days after receiving tenant’s written notice of termination of the
Bill No. 2018-11
rental agreement or within 30 days after the owner notifies the tenant that the rental
agreement will be terminated or not renewed.
409.07. — Penalty.
Subdivision 1. A violation of subsection 409.05 is an administrative offense
that may be subject to an administrative citation and civil penalties as provided in
City Code Section 325. Notwithstanding any provision of City Code Section 325,
the penalty for a violation of subsection 409.05 shall be the sum of the applicable
amount of relocation assistance plus $500.
Subd. 2. A violation of subsection 409.03 is an administrative offense that may
be subject to an administrative citation and civil penalties as provided in City
Code 325.
Subd. 3. A violation of this Section as to each dwelling unit shall constitute a
separate offense.
409.09. — Payment by City to Displaced Tenant. Within 30 days after a person pays
the penalty provided for in subsection 409.07, subd. 1, the city shall pay to the displaced
tenant of the affordable housing unit for which the violation occurred, the applicable
amount of relocation assistance.
SECTION 2. This Ordinance shall take effect January 1, 2019.
Adopted this 25th day of September, 2018, by the City Council of the City of
Richfield.
Pat Elliott, Mayor
ATTEST:
�, BMJ
Eliza eth VanHoose, ity Clerk
Bill No.2018-11
AFFIDAVIT OF PUBLICATION CITY OF RICHFIELD suant to subsection 409.03. property or the unit does not meet
BILL NO.2018-11 (t) "Transfer of ownership" the definition of Affordable Hous-
STATE OF MINNESOTA AN ORDINANCE means any conveyance of title to ing Building or Affordable Housing
COUNTY OF HENNEPIN )SS ADOPTING A NEW an affordable housing building, Unit,upon request,the owner shall
CITY CODE SECTION whether legal or equitable, volun- provide a copy of the rent roll, in-
409 RELATING TO THE tary or involuntary, resulting in a eluding the amount of contract
Darlene MacPherson being duly sworn on an SALE OF AFFORDABLE transfer of control of the building, rents paid by tenants,to the City.
oath, states or affirms that he/she.is the RENTAL HOUSING AND effective as of the earlier of the date Subd. 5. Language Publisher's Designated Agent of the news a- reauire-
ESTABLISHING NOTICE AND of delivery of the instrument of con- Ment, Each notice required by this
g p RELOCATION ASSISTANCE veyance or the date the new owner subsection shall'contain an•advi-
per(s)known as: REQUIREMENTS FOR takes possession. sory that reads as follows: "This is
NEW OWNERS 409.03. - Transfer of Owner- important information about your
SC Richfield THE CITY OF RICHFIELD ship. housing. If you do not understand
DOES ORDAIN: Subdivision 1. Notice. Within it, have someone translate it for
SECTION 1,The Richfield City thirty(30)days after the transfer of you now, or request a translation
with the known office of issue being located Code is amended by adding a new ownership of an affordable housing from your landlord." This advisory
in the county of: Section 409 as follows: building,the new owner shall give must be stated in the notice in the
HENNEPIN written notice to each affordable following languages: Spanish,with additional circulation in the counties of: So-
SECTION 409. -SALE housing unit tenant of the building mali,and Hmong.Upon request by
OF AFFORDABLE RENTAL that the property is under new own- a tenant,the owner must provide a
HENNEPIN HOUSING;NOTICE AND ership.The notice must include the written translation of the notice into
and has full knowledge of the facts stated RELOCATION ASSISTANCE following information: the tenant's native language. •
below: REQUIREMENTS (a)The name, mailing address, 409.05. - Relocation Assis-
and telephone number of the new tante.
(A)The newspaper has complied with all of
409.00. - Purpose. It is the owner. Subdivision 1. When required.
the requirements constituting qualifica- purpose of this Section to provide (b) The following statement: A new owner of an affordable hous-
tion as a qualified newspaper as provided housing stability and protection to Richfield City Code Section 409 ing building must pay relocation as-
by Minn. Stat.§331A.02. tenants in affordable rental hous- provides for a three-month tenant sistance to affordable housing unit
(B)This Public Notice was printed and pub- ing who are facing displacement protection period for affordable tenants when, during the tenant
by providing for notice to the City housing unit tenants after an afford- protection period,the new owner:
fished in said newspaper(s) once each and tenants when transitions from able housing building is transferred (a)Without cause,terminates or
week, for 1 successive week(s); the first current affordable housing uses are to a new owner,Under Section 409, does not renew the tenant's rental
insertion being on 10/04/2018 and the last planned,and providing tenant relo- affordable housing unit tenants are agreement;or,
cation assistance when affordable entitled to relocation assistance (b)Raises the rent and the tenant .
insertion being on 10/04/2018.
housing is converted and tenants from the new owner if, during the submits a written notice of termina-
are required to move without ade- tenant protection period, the new tion of their rental agreement;or
MORTGAGE FORECLOSURE NOTICES quote time to find new housing. owner: (c) Requires existing tenants to
Pursuant to Minnesota Stat. §580.033 409.01.-Definitions. (1)Without cause,terminates or comply with new residency screen-
Subdivision. 1. The following does not renew the tenant's rental ing criteria and the owner or tenant
relating to the publication of mortgage definitions apply in this Section: agreement; - terminates or does not renew the
foreclosure notices: The newspaper complies (a) "Affordable housing build- (2) Raises.the rent and the tenant's rental agreement.
with the conditions described in §580.033, ing"means an apartment house as tenant submits a written notice of Subd. 2. When paid. The new
subd. 1, clause (1) or(2). If the newspaper's defined in 407.03 having three or termination of their rental agree- owner must pay the relocation
more dwelling units,where at least ment;or, assistance to the tenant within 30
known office of issue is located in a county 20%of the units rent for an amount (3) Requires existing affordable days after receiving tenant's written
adjoining the county where the mortgaged that is affordable to households at housing unit tenants to comply with notice of termination of the rental
premises or some part of the mortgaged or below 60 percent of area medi- new residency screening criteria agreement or within 30 days after
premises described in the notice are located, an income,as median income was and the owner or tenant terminates the owner notifies the tenant that
most recently determined by the or does not renew the tenant's rent- the rental agreement will be termi-
a substantial portion of the newspaper's United States Department of Hous- al agreement. nated or not renewed.
circulation is in the latter county. ing and Urban Development for the (c)Whether there will be any rent 409.07.-Penalty.
Minneapolis-St.Paul-Bloomington, increase during the tenant protec- Subdivision 1. A violation of
Minnesota- Wisconsin Metropol- tion period,the amount of the rent subsection 409.05 is an administra-
itan
n/`�' fi
Statistical Area, as adjusted increase,and the date the rent in- tive offense that may be subject to
By, 'V for household size and number of crease will take effect. an administrative citation and civil
Designated Agent bedrooms. (d)Whether the new owner will penalties as provided in City Code
(b) "Affordable housing unit" require existing affordable housing Section 325. Notwithstanding any
means a rental unit in an affordable unit tenants to comply with new provision of City Code Section 325,
Subscribed and sworn to or affirmed before housing building that rents for an residency screening criteria during the penalty for a violation of sub-
me on 10/04/2018 by Darlene MacPherson. amount that is affordable to house- the tenant protection period and, section 409.05 shall be the sum of
holds at or below 60 percent of area if so,a copy of the new screening the applicable amount of relocation
median income,as median income criteria. • assistance plus$500.
was most recently determined by (e)Whether the new owner will, Subd.2.A violation of subsec-
the United States Department of without cause,terminate or not re- tion 409.03 is an administrative
Housing and Urban Development new the tenant's rental agreement offense that may be subject to an
for the Minneapolis-St. Paul- during the tenant protection period, administrative citation and civil
Bloomington, Minnesota-Wiscon- and if so,the date the rental agree- penalties as provided in City Code
sin Metropolitan Statistical Area, ment will terminate and the amount 325.
Not Public as adjusted for household size and of relocation assistance that will be Subd.3.A violation of this Sec-
a number of bedrooms. provided. tion as to each dwelling unit shall
(c)"Cause"means the tenant or (f) The date the tenant protec- constitute a separate offense.
a member of the tenant's house- tion period will expire. 409.09.- Payment by City to
,s — �. .. — - ♦ hold materially violated a term of (g) Whether the new owner, on Displaced Tenant.Within 30 days
,7 Jessica L Crabb the lease or rental agreement,or vi- the day immediately following the after a person pays the penalty
=-aW 'A= Notary Public )• olated an applicable federal,state, tenant protection period, intends provided for in subsection 409.07,
Minnesota O. or local law or regulation. to: increase rent; require existing subd. 1, the city shall pay to the
r,y. (d) "Relocation assistance" affordable housing unit tenants to displaced tenant of the affordable
�" �.MyCommission Expires January31,2023
.. ., +' r
.,, ,,,,,,;, Xpl means a payment in the amount comply with new residency screen- housing unit for which the violation
equal to three months of the current ing criteria; or, without cause, ter- occurred,the applicable amount of
monthly contract rent. minate or not renew affordable relocation assistance.
(e) "Tenant protection period" housing unit rental agreements. SECTION 2. This Ordinance
Rate Information: means the period that commences Subd. 3. Copy of notices to shall take effect January 1,2019.
on the date when written notice of City.The new owner shall provide Adopted this 25th day of Sep-
(1)Lowest classified rate paid by commercial users the transfer of ownership is sent to a copy of the notices'required by
for comparable space: each affordable housing unit tenant this subsection to the City at the
$34.45 per column inch pursuant to subsection 409.03 and same time notice is provided to the
ends on the last day of the third full tenant or tenants.
Ad ID 863253 calendar month following the date Subd. 4. Copy of Rent Roll to
on which the notice was sent pur- City. If the new owner claims the
tember, 2018, by the City Council
of the City of Richfield.
Pat Elliott
Mayor
ATTEST: Elizabeth VanHoose
City Clerk
Published in the
Richfield Sun Current
October 4,2018
863253