On Monday, the Minnesota Senate passed Senate File 1470. The legislation would create an orderly process for housing providers to handle residents who are deficient in their rent and restores basic property rights to housing providers whose renters meet minimum income thresholds.

The eviction moratorium was put into place to protect renters who were struggling as a result of the pandemic. Unfortunately, what we’ve seen is that some renters have abused this privilege for nefarious reasons. This legislation strikes a balance, protecting those harmed by COVID while giving property owners some freedom to deal with those who are taking advantage of the system.

The legislation states that 30 days after the date of enactment, non-renewal of leases is permitted for those with outstanding rent but who are ineligible for rental assistance through the COVID-19 emergency rental assistance program. Nearly $400 million is available in statewide rental assistance from the federal government and is designated to help with rent payments and utilities for renter households that have experienced financial hardship due to COVID-19 and can demonstrate a risk of experiencing housing instability. Eligible renters can receive help with rent and utility bills dated on or after March 13, 2020 (April 1 rent) and receive up to 15 months of assistance.

The bill addresses that the “off-ramp” will occur in a 30, 60, and 90 day step down:

• Thirty days after the date of enactment, evictions are permitted for material violations of the lease other than non-payment of rent. 
• Sixty days after the date of enactment, evictions are permitted for those with outstanding rent but who are ineligible for rental assistance through the COVID-19 emergency rental assistance program. 
• Ninety days after enactment of the bill, this step-down expires, with the exception of actions based on non-payment of rent against a tenant with a pending application for assistance through the COVID-19 emergency rental assistance program, which is prohibited until June 1, 2022. This allows renters who are enrolled in a relief program more time to get caught up with their rent.

This bill would also prevent the governor from issuing any order that prohibits or delays evictions for more than 30 days unless an extension to the order is approved by both parts of the legislature. If the legislature does not agree to an extension, the governor is prohibited from issuing a new order, delaying or prohibiting evictions.

For more information about rental assistance, please follow the link below: