Sauk Rapids halts rental property permits due to overconcentration, neighborhood impact

SAUK RAPIDS — As St. Cloud faces a housing crisis, Sauk Rapids puts a 12-month ban on new residential rental permits.

The Sauk Rapids City Council on Monday night unanimously approved an interim moratorium on accepting these permit applications, which applies to both short- and long-term residential rental properties. According to the moratorium, both single or multi-family homes are subject to the halted application process.

Sauk Rapids’ decision comes as it experiences a considerable uptick in rental applications, Community Development Director Todd Schultz said. He said these properties are starting to congregate in the city’s south side, which could create problems, especially considering the increased trend of older homes being put up for rent.

“What you see with rental homes isn’t the same in terms of investment isn’t what a regular single-family home gets,” Schultz said. “So they tend to get a little bit more rundown in time, and so if you have a lot of those homes in one neighborhood or one area, it can really drag down that neighborhood.”

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The city is pausing these applications until it completes a study regarding its rental property ordinance. Sauk Rapids would like to consider additional elements, such as population density and public health, going forward.

“We wanted to make sure our performance standards in the ordinance accurately reflect the needs of the neighborhood, making sure that public health and safety is met as well as the livability of the neighborhood as well,” City Attorney Ashley Bukowsk said. “(The study may) consider any density standards as well so that one area of the city isn't overly concentrated with particular rentals.”

City Council member Nick Sauer said having too many buildings in one spot that aren’t kept up well can impact its neighbors' property values. He also said the cost of renting is increasing and would like to see that issue addressed as well.

“A lot of the rental (prices) I've seen online are higher than what a mortgage would be, so it would make something more difficult for someone to live there,” Sauer said.

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Sauk Rapids’ decision comes as neighboring St. Cloud explores new housing opportunities as it struggles to provide enough housing for its growing population. St. Cloud’s 2024 comprehensive housing study states the city needs more than 17,000 new housing units in the next 15 years.

Councilmembers Jason Ellering and Ellen Thronson were not present to take a vote.

The 12-month ban will apply to property owners applying for a permit from the city to rent out their properties, not tenants applying to landlords to rent individual housing units. Properties already possessing a permit will not be impacted.

Corey Schmidt covers local government for the St. Cloud Times. He can be reached at cschmidt@gannett.com.

This article originally appeared on St. Cloud Times: Sauk Rapids halts rental property permits due to overconcentration, neighborhood impact