JUST CAUSE NOTICE BULLETIN - City of Saint Paul
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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
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