Minneapolis is starting to examine a slew of tenants’ rights policies, following the submission of a report by city staff at the Tuesday meeting of the City Council’s Committee of the Whole.
The presentation and report were requested by the City Council at its Oct. 31, 2023, meeting, The council asked city staff members to compile analyses of national and local municipal policies relating to renter protections, such as application reconsideration, pre-eviction notification and anti-displacement policies.
The report was split into three sections: one focused on rental protection, another on eviction diversion and prevention and the final on anti-displacement programs.
Some of the policies included in the report are ones that Minneapolis has considered before. One section examines the various forms of advance notice of sale policies, called Community Opportunity to Purchase or Tenant Opportunity to Purchase, which would essentially allow either a community organization like a nonprofit developer or a group of tenants to put forward a bid on a project before other firms can.
Ward 5 Councilmember Jeremiah Ellison has put forward an ordinance that would implement this policy in the past and has said staff is examining this policy. In an interview with Finance & Commerce in February about the topic, Ellison said he wanted to see the policy acted on this year, if it felt appropriate.
Cecil Smith, the president of the Minnesota Multi Housing Association, has said that he believes such a policy would slow down markets, disincentivize “good operators” and make the market illiquid.
“It’s lost on me how this enables housing stability, even if you get the deal done, which I have yet to see a successful example of this,” Smith said.
The report also examines changing the mandatory relocation assistance. Minneapolis has a “ReLo” policy, but it’s only for when a rental license is revoked, denied or canceled. Seattle, on the other hand, uses it to prevent steep rent hikes.
“The report explores options for amending mandatory relocation assistance,” Sarah Renner, a staff member who presented on the report, said. “Three cities are highlighted in the report for using mandatory relocation assistance to try and prevent rent price spikes. The cities require landlords to pay relocation assistance to tenants who must move out due to rent increases of 10% or higher.”
In an email statement, Ward 2 Councilmember Robin Wonsley said she is in favor of expanding Minneapolis’ ReLo program.
“The city’s current policy has a much more narrow scope and doesn’t help renters who are economically displaced,” she said. “While our current program has been helpful to over 40 families, the city could be supporting many more residents who are experiencing housing instability by expanding this right.”
The report also examines taking action to prevent corporate ownership of single-family homes that are converted into rentals. Citing the Federal Reserve Bank of Minneapolis, the report says 6.1% of all single-family homes in the city are owned by investors, but that they are concentrated in areas populated by Black and Indigenous people. Actions include increasing taxes on large corporate owners of single-family homes, strengthening disclosure requirements and preventing the expansion of corporate owners who have properties that repeatedly commit violations.
Right now, most policies in Minneapolis and other large cities are dependent on a complaint-based system to enforce the rights. Wonsley said she hoped to have further conversations about alternative methods for enforcement. Money to hire staff to enforce the rights will be a budget priority of Wonsley’s.
“We need to seriously look at our enforcement mechanisms and see where the gaps are,” she said.
There are no concrete timelines for introducing any of the policies listed in the report. Andrew Hawkins, a manager for the city auditor policy and research division said next steps could include more presentations about specific policies and creating more detailed implementation plans.
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