JUST CAUSE NOTICE BULLETIN - City of Saint Paul

Page created by Freddie Clarke
 
CONTINUE READING
E1    SAINT PAUL
      MINNESOTA
                                                              Stable, Accessible, Fair, & Equitable Housing
                                                                               (S.A.F.E.) Housing Saint Paul

 ORD 20-14 -- SECTION 193.05
 POLICY BULLETIN
 FOR LANDLORDS
 EFFECTIVE DATE: MARCH 1, 2021

 JUST CAUSE
 NOTICE
                                                    Table of Contents
 BULLETIN
                                                    Overview........................................................................................ 1

 POLICY PURPOSE:                                    Just Cause Notice
 The Just Cause Notice policy increases housing
 stability by ensuring Landlords provide Just       Summary......................................................................................... 2
 Cause for nonrenewal of Lease or Termination
 of Tenancy at the time notice is given.            Detail ............................................................................................... 2

                                                    Exceptions and Enforcement ....................................................... 4
 INTENDED AUDIENCE:
 The City of Saint Paul is providing this guid-
 ance to Landlords to support compliance with
 these new regulations.                             Additional Information

 APPLICABILITY:                                     Definitions....................................................................................... 5
 This section (193.05) applies to all rental
                                                    Frequently Asked Questions ........................................................ 6
 properties located within the City of Saint Paul
 and to all Lease agreements whether written        Policy Context................................................................................. 6
 or oral.

 CONTACT:
 For more information or to ask a question,
 please visit the City of Saint Paul S.A.F.E.
 Housing page.

 S.A.F.E. HOUSING SAINT PAUL DOCUMENTS:
 • Tenant Screening Guidelines Bulletin
 • Advance Notice of Sale Bulletin
 • Security Deposit Limitations Bulletin
 • S.A.F.E. Housing At A Glance
 • StPaul.gov/SAFE

     Page. 01
                                                                                                                                          V.1 MARCH 1, 2021
Just Cause Notice
When Terminating a Tenancy through Lease nonrenewal, Landlords
                                                                                             NEW REQUIREMENT:
must establish Just Cause and provide Just Cause Notice. This
                                                                                             All residential Tenant Leases must now
means Landlords must:
                                                                                             include this Just Cause Notice language:
         Identify the basis for the Just Cause nonrenewal or
 1                                                                                           The Landlord under this Lease shall
         termination. Landlords may not issue a notice terminating
                                                                                             not unilaterally terminate or attempt
         Tenancy unless they are able to establish Just Cause (defined
                                                                                             to terminate the tenancy of any Tenant
         on pages 2 and 3.)
                                                                                             unless the Landlord can prove in court
                                                                                             that Just Cause exists. The reasons for
         Provide Just Cause Notice to the impacted Tenant(s) in writing
2        and include the following information:
                                                                                             Termination of Tenancy listed in the
                                                                                             City of Saint Paul’s Just Cause Notice (Sec.
           a. Just Cause: the reason(s) for the termination; and
                                                                                             193.05), and no others, shall constitute
           b. The facts in support of the reason(s)
                                                                                             Just Cause under this provision.
         See the Just Cause Notice template for guidance.

          » This section does not prevent or prohibit the Landlord
            from initiating a lawful formal Eviction.

          » This Section does not prevent or prohibit the Landlord                           REMINDER:
            and Tenant from agreeing to a Mutual Lease Termination.
                                                                                             Landlords must deliver Just Cause
          » This section identifies reasons you may choose to non-                           Notice language to Tenants with any
            renew the Lease or Terminate the Tenancy but does not                            notice of termination required by law,
            establish a requirement to non-renew or Terminate the                            except for instances of Rehab and
            Tenancy for cause.                                                               Renovation, in which case the Landlord
                                                                                             must issue a 90 day notice.
          » Landlords must provide written notice to vacate in
            accordance with the terms of the Lease agreement
            and state law requirements. Click here for MN Attorney
            General guidance on ending the tenancy.

                                                                     FOR A LIST OF DEFINED TERMS, REFER TO PAGE 5.

          Allowable Just Causes
Any of the 10 reasons listed below and no others:

     JUST CAUSE                          DETAILS

          NON-PAYMENT                    The Tenant fails to pay rent after receiving a Non-Payment notice from the
     1
          OF RENT                        Landlord, and the Landlord does not pursue a valid Non-Payment Eviction action
                                         but decides to Terminate Tenancy

                                         The Tenant repeatedly makes Late Payments of rent, no fewer than five times in a
     2 REPEATED
          LATE PAYMENT                   12-month period.
          OF RENT                          • The Landlord must provide the Tenant with notice following a Late Payment
                                             that a another Late Payment may be grounds for Termination of Tenancy.

     3 MATERIAL                          After receiving a written notice to stop an action that is in violation of the lease
          NON-COMPLIANCE                 terms from the Landlord, the Tenant continues, or fails to Cure the Deficiency,
                                         that is a Material Breach of the Lease. The Landlord does not pursue a valid
                                         Eviction action but decides to terminate tenancy.

     4 REFUSAL                           The Tenant refuses to renew or extend the Lease after the Landlord requests in
          TO RENEW                       writing that the Tenant do so.
                                           • For leases with automatic renewal language: The 15–30-day notice period
                                              as required by Minn. Stat. 504B.145 for Leases with automatic renewal
                                              provisions still applies.

Page. 02                                                                                                                          V.1 MARCH 1, 2021
Allowable Just Causes
Any of the ten (10) reasons listed below and no others:

   JUST CAUSE                         DETAILS

   5 OCCUPANCY BY                     The property owner seeks to recover possession of the dwelling unit so that
       PROPERTY OWNER OR              the property owner or a Family Member may occupy the unit as that person’s
       FAMILY MEMBER                  principal residence.
                                        • Occupancy time frame required: The property owner or Family Member
                                          must move into the unit within 90 days from the Tenant’s vacation.
                                        • If a Substantially Equivalent Replacement Unit is vacant and available, that
                                          unit must be made available to the Tenant at a Substantially Similar Rental
                                          Rate as the Tenant’s current Lease.

   6 BUILDING                         The Landlord decides to:
       DEMOLISHMENT                     • demolish the building; or
       AND DWELLING UNIT                • convert the building to a cooperative; or
       CONVERSION                       • convert the building or unit to nonresidential use; or
                                        • recover the unit to sell it in accordance with a condominium conversion; or
                                        • convert the dwelling unit to a unit subsidized under a local, state or federal
                                          housing program and the Tenant does not qualify to rent the unit under that
                                          program.

   7 REHAB AND                        The Landlord seeks to recover possession of the dwelling unit to complete
       RENOVATION                     a rehabilitation or renovation that will render the unit uninhabitable for the
                                      duration of the work.
                                        • Extended Notice required: The Landlord must provide 90 days’ written
                                          notice to the Tenant.
                                        • Relocation Assistance required: The Landlord shall provide Relocation
                                          Assistance to the Tenant upon delivery of the written notice.
                                        • If a Substantially Equivalent Replacement Unit is vacant and available in the
                                          building, that unit may be made available to the Tenant at a Substantially
                                          Similar Rental Rate as the Tenant’s current Lease.

   8 COMPLYING WITH                   The Landlord is complying with a government agency’s order to vacate, abate, or
       A GOVERNMENT                   any other order that necessitates the vacating of the dwelling unit as a result of a
       ORDER TO VACATE                violation of Saint Paul city codes or any other provision of law.
                                        • Relocation Assistance required: The Landlord must provide Relocation
                                           Assistance to the Tenant upon delivery of the written notice.
                                        • If a Substantially Equivalent Replacement Unit is vacant and available in the
                                           building, that unit may be made available to the Tenant at a Substantially
                                           Similar Rental Rate as the Tenant’s current Lease.

   9 OCCUPANCY                        The Tenant’s occupancy of the unit is conditioned upon employment on the
       CONDITIONED ON                 property and the employment relationship is terminated.
       EMPLOYMENT                       • The Landlord and Tenant do not choose or are unable to continue the
                                          tenancy after the employment relationship ends.

  10 EXCEEDING                        The Tenant exceeds the occupancy standards for the unit. City of Saint Paul
       OCCUPANCY                      occupancy code. 34.13
                                        • No Tenant may be Evicted, denied a continuing tenancy, or denied a renewal
                                          of a lease on the basis of familial status started during the tenancy unless:
                                               • one year has elapsed from the start of the familial status change, and
                                               • the Landlord has given the Tenant 6 months prior notice in writing of
                                                 the termination or nonrenewal.
                                               • MN Statutes familial status changes. 504B.315

Page. 03                                                                                                                     V.1 MARCH 1, 2021
Process for Establishing
       and Notifying Tenants of
       Just Cause                                                         -
                                                                  EXCEPTIONS:
                                                                  1.   Required Notice Period for Just Cause #7: If the basis
                                                                       for the nonrenewal or termination is Just Cause #7:
                                                                       Rehabilitation or Renovation, then the notice to
                                                                       vacate must be provided to the Tenant(s) at least 90
                                                                       days in advance.
  1 ESTABLISH JUST CAUSE
••         1   Is the reason for the non-renewal or termination
               one of the 10 allowable Just Causes?
                    1. Yes - Proceed to step 2
                0 2. No - Do not proceed.
                                                                  2.   Conflict: Whenever local, state, or federal funding
                                                                       or loan requirements conflict with any portion of
                                                                       Chapter 193, those funding or loan requirements will
                                                                       take precedence over only those portions in conflict.
                                                                       Conflict should be read to mean that adhering to
                                                                       a requirement of Chapter 193 will result in the
                                                                       owner and/or property being out of compliance
                                                                       with a specific local, state, or federal funding or loan
                                                                       requirement.

                                                                  3.   State licensed residential facilities: If the property
                                                                       is operating as a State-licensed residential facility,
                                                                       the Landlord is not required to include the Just Cause

•2 DETERMINE HOW MUCH
       NOTICE YOU MUST PROVIDE
       TO THE TENANT
                                                                       Notice language in the Lease.

                                                                          - ------
           •
           1   To identify the timing requirements for the
               notice to vacate, please review the Lease
               agreement and MN Statutes 504B.147.
                                                                  ENFORCEMENT:
                                                                  1.   Legislative Code: Chapter 193 of the Legislative
               Click here for MN Attorney General                      Code (Title XIX) pertaining to Tenant Protections will
               guidance on ending the tenancy.                         be monitored and enforced by the City of Saint Paul
                                                                       Office of Financial Empowerment and the Department

           •
           2   For all notices to vacate under Just Cause
               #7, the notice period must be at least 90
               days.
                                                                       of Human Rights and Equal Economic opportunity
                                                                       a. If a violation of an ordinance occurs, then the
                                                                             Landlord is subject to Section 1.05 of the
                                                                             Legislative Code. Section 1.05 provides that a
                                                                             violation of any provision of the Legislative code
                                                                             is a misdemeanor, punishable by a fine not
                                                                             to exceed seven hundred dollars ($700.00) or
                                                                             imprisonment for a term not to exceed ninety 90
                                                                             days, or both. Click here for more information

•
                                                                  2.   Private Right of Action Created: Any Tenant
 3 PROVIDE WRITTEN NOTICE                                              aggrieved by a Landlord’s noncompliance with Chapter
       TO VACATE WITH JUST CAUSE                                       193 has the right to file a lawsuit in court.

       LISTED                                                     3.   Damages for violation of 193.05, Just Cause: If a
                                                                       Landlord Terminates a Tenancy under Sec. 193.05,

           •
           1   Include and/or retain supporting
               documentation, see FAQs for guidance.
                                                                       citing one or more of the ten 10 Just Causes as the
                                                                       grounds for the termination and fails to fulfill or carry
                                                                       out the stated reason for or condition justifying the

           •
           2   Verify: Is Relocation Assistance required?

                   1.   Include and/or retain supporting
                        documentation. See FAQs on pg. 6
                                                                       termination, the Landlord may be found liable in a
                                                                       private right of action for damages equal to Relocation
                                                                       Assistance, costs of suit or arbitration, and reasonable
                                                                       attorney’s fees.
               0        for guidance
                   2.   If not, send all other                    4.   No “Just Cause” as lawful defense: In any action to
                        documentation and notices                      non-renew or to otherwise Terminate a Tenancy, the
                                                                       absence of Just Cause may be used as a defense to the
                                                                       action.

Page. 04                                                                                                           V.1 MARCH 1, 2021
Additional Information

       DEFINITIONS
        For the purposes of this bulletin, the terms referenced below have the following meaning.

Cure the Deficiency: A Tenant          Just Cause: Any of the reasons        Non-Payment: A payment for               Substantially Equivalent Re-
pays all monies rightfully owed,       listed in Sec. 193.05(a) upon         rent under the contract that has         placement Unit: A dwelling unit,
or fully complies with an order        which a Landlord may terminate        not been received following the          which is decent, safe and sani-
to correct a Lease violation or        tenancy.                              Landlords written request for            tary, contains at least the same
notice to cease an activity that is                                          payment.                                 number of bedrooms and other
in violation of a Lease.               Landlord: The property owner or                                                living areas as the Displacement
                                       agent of the property owner.          12-month period: The total               Dwelling Unit, and is available
Displacement Dwelling Unit:                                                  of twelve consecutive months             at a Substantially Similar Rental
The dwelling unit from which a         Late Payment: A payment               including the months in which            Rate within the neighborhood
Tenant was displaced pursuant          received and accepted by the          the 1st AND 5th or final (if more        district of the Displacement
to Sec. 193.05(5) or (7).              Landlord after the date rent was      than 5) violations occur. See            Dwelling Unit. Perfect compara-
                                       due and payable.                      example below                            bility is not required.
Eviction: A summary court
proceeding to remove a Tenant          Lease: An oral or written agree-      Relocation Assistance: A                 Substantially Similar Rental
or occupant from, or otherwise         ment creating a tenancy in real       payment in an amount equal to            Rate: The Displacement Dwelling
recover possession of, real            property.                             three times the rental housing           Unit rental rate plus five percent
property by the process of law,                                              affordability limit at sixty 60 per-     (5%) or minus ten percent (10%)
pursuant to Minn. Stat. Ch. 504B.      Material Breach: A contract law       cent of the Area Median Income           of the contract rate for a Single
                                       term which refers to a failure of     for the Twin Cities metro area as        Month Rent.
Family Member: A property              performance under the contract        published by the Metropolitan
owner’s child, step-child, adopted     which is significant enough to        Council. See chart below.                Tenant: An authorized occupant
child, foster child, adult child,      give the aggrieved party the right                                             of a residential rental build-
spouse, sibling, parent, step-par-     to sue for breach (violation) of      Annually updated payment                 ing under a Lease or contract,
ent, mother-in-law, father-in-law,     contract Lease                        calculations can be located on           whether oral or written.
grandchild, grandparent, or                                                  the Met Council’s website: 2020
registered domestic partner as         Mutual Termination: Both              Affordability Limits or Ownership        Termination of Tenancy: The
defined by Saint Paul Code of          the Landlord and Tenant have          and Rental Housing                       end of a tenancy following a writ-
Ordinances section 186.02 and          agreed to end the Lease for any                                                ten notice given by a Landlord to
any individual related by blood or     reason, where both the Landlord                                                a Tenant requiring the Tenant to
affinity whose close association       and Tenant each reLease the oth-                                               move, including nonrenewal of
with the property owner is the         er for the Lease commitment.                                                   Lease.
equivalent of a family relation-
ship

   12-MONTH PERIOD CALCULATIONS:
   ■ = month in which the late payment occurred.
   CASE #1: Just Cause Reached (5 or more Late payments in a 12-month period)

     MONTH     JAN       FEB     MAR      APR     MAY       JUNE     JULY    AUG      SEPT      OCT       NOV       DEC     JAN

     MISSED
    PAYMENT             1ST               2ND     3RD                                 4TH                 5TH
      DATE

   CASE #2: Just Cause NOT Reached (less than 5 Late payments in a 12-month period)

     MONTH     JAN       FEB     MAR      APR     MAY       JUNE     JULY    AUG      SEPT      OCT       NOV       DEC     JAN

     MISSED
    PAYMENT    1ST               2ND                                                  3RD       4TH                         5TH
      DATE

                                                                                RELOCATION ASSISTANCE AMOUNT
              # BEDROOMS                                Efficiency          1 Bedroom           2 Bedrooms            3 Bedrooms           4 Bedroom

              2020 RELOCATION ASSISTANCE                 $3,258              $3,492                $4,185                 $4,856              $5,400

Page. 05                                                                                              See definitions for more details on calculations
Additional Information

FREQUENTLY ASKED QUESTIONS, SEC. 193.04 - TENANT SCREENING GUIDELINES

Do I have to go to court to give Just Cause           How is Just Cause different from evicting             How do I notify the Tenant about their Late
Notice?                                               someone?                                              Payment status or prove that a Tenant paid
No. Just Cause refers to nonrenewal or Lease          Though some of the Just Causes align with an          rent late?
terminations that happen outside of the court         allowable basis for a formal Eviction, not all do.    It is best practice to clearly identify what
process, not formal Evictions.                        This policy refers to processing a nonrenewal or      constitutes a Late Payment and any fees
                                                      Lease termination outside of the court process        associated with Late payments in the Lease.
What is covered under Material Non-                   and includes both tenancy and ownership               Additionally, it is best practice to notify a
Compliance?                                           related causes.                                       Tenant when a rent payment is received late,
Material Non-Compliance refers to any material                                                              and whether or not a late fee was added to
violation of the Lease terms you establish. The       What supporting documentation do I need to            their balance. In this notice the Landlord may
Lease agreement identifies what constitutes a         provide with my notice?                               also include language identifying that five or
violation of the contract.                            a. Depending on the basis for the Just Cause          more Late payments in a twelve-month period
                                                          Notice, the Landlord should include any           could result in Just Cause notice to vacate. The
What’s the difference between a Material                  communication(s) to the Tenant that               Landlord could also consider maintaining and
Breach and a non-Material Breach?                         preceded the notice to vacate or that             sharing a rent ledger or tally of Late payments to
Generally, a Material Breach is significant enough        support the determination that Just Cause         ensure the Tenant knows their status regarding
to permit an aggrieved party to treat the breach          has been achieved.                                Late payments.
as total, rather than partial, thus excusing that     b. For Just Cause (1), (2), (3), (4), (8), (9), and
party from further performance on the Lease               (10), this could include:                         How long does a Tenant have to Cure the
and affording that party the right to sue. The City       i.    Lease violation notices                     Deficiency?
recommends that an affected party contact a               ii. Late payment notices                          The length of time given to the Tenant to Cure
private attorney if there are questions regarding         iii. Nonpayment Notices                           the Deficiency should be included in the violation
whether a breach is material or non-material.             iv. Renewal notices                               notice. The amount of time should be reasonable
                                                          v. Proof of an unauthorized Tenant                based on the type and severity of the violation.
What is considered rehabilitation or                      vi. Employment termination notices                For example, this could be a certain timeframe to
renovation?                                               vii. Government orders to vacate or abate         move a piece of furniture or vehicle, or a notice
For the purposes of this section, rehabilitation      c.  For Just Cause (5) and (6) it is recommended      to immediately cease with a second violation
or renovation pertains to any projects that will          that the Landlord retain any documents that       indicating failure to cure.
render a unit uninhabitable during the course of          support the basis for the notice like:
work, including but not limited to projects that          i.    A new Lease agreement                       How do I pay Relocation Assistance for Just
impact the safe use of the unit, or prevent the           ii. Homesteading documentation                    Cause terminations or non-renewals?
use of essential unit functions like electricity,         iii. Application for condo conversion             Relocation Assistance for Just Cause (7) or (8) can
plumbing, heating. Rehabilitation or renovation           iv. Proof of change of use                        be paid directly to the Tenant when the Landlord
is not a temporary or short term suspension, like     d. For Just Cause under Sec. 193.05 (7) or            provides them with their notice to vacate. It is
a water shut off to repair a toilet, or treatment         (8), the notice must be accompanied by            recommended that the Landlord retain proof of
for pests.                                                Relocation Assistance.                            service and delivery of the Relocation Assistance
                                                                                                            to the Tenant.
What if the unit will need to be vacant               What if the Tenant disagrees with the notice?
temporarily?                                          If a Tenant disagrees with the Just Cause notice      Do I have to agree to a mutual Lease
If a Landlord needs the unit to be vacant             to vacate, the Tenant has several informal and        termination?
temporarily to complete a project or repair, the      formal remedies available, including requesting       A Mutual Lease termination indicates that
Landlord may consider offering the impacted           clarity from a Landlord, filing a complaint with      all parties involved agree to terminate the
Tenant a temporary solution such as a hotel or        the city, seeking legal advice, initiating a court    contract. If a Landlord or a Tenant does not
alternate unit.                                       action, or holding over. It is best practice to       agree to terminate a Lease, there would be no
                                                      maintain a record of all communication and            mutual agreement to terminate. Neither party is
                                                      supporting documentation with the Tenant to be        required to mutually agree to terminate a Lease.
                                                      prepared to respond to any allegations of non-
                                                      compliance.

                                                      POLICY CONTEXT:

                                                      The City of Saint Paul is a majority renter city with more than 57,000 households renting their homes.
                                                      On July 8, 2020, The City of Saint Paul passed S.A.F.E. Housing Saint Paul, a set of stable, accessible,
                                                      fair, and equitable policies geared at increasing housing access, decreasing housing displacement
                                                      and affirmatively furthering fair housing. Ordinance 20-14 creating Chapter 193 of the Saint Paul
                                                      Legislative Code (Title XIX) includes Tenant Rights and Responsibilities Information, Security Deposit
                                                      Limitations, Tenant Screening Guidelines, Just Cause Notice and Advance Notice of Sale provisions.
                                                      Please visit StPaul.gov/SAFE to learn more.

Page. 06                                                                                                                                   V.1 MARCH 1, 2021
You can also read