This bill, H.F. No. 1854, from the Minnesota House of Representatives, aims to protect tenants when landlords receive government assistance for renovating rental units. It introduces a new section, 504B.267, to Minnesota Statutes, Chapter 504B, with the following key provisions:

1. Tenant Protection from Nonrenewal – If a landlord receives federal, state, or local funding (including funds from housing redevelopment authorities or nonprofits) to renovate a rental unit for a tenant’s health, safety, or disability accommodations, the landlord must allow the tenant to continue living in the unit. Any nonrenewal of a lease in violation of this provision is considered void.

2. Tenant Compensation for Violations – If a landlord violates this rule, they are liable for any costs incurred by the tenant, including attorney fees and other costs.

3. Evictions Still Allowed – The bill clarifies that it does not prevent landlords from pursuing evictions that are legally justified under existing landlord-tenant laws.

4. Protection from Excessive Rent Increases – If a court determines that a rental increase is unreasonable or disproportionate, it may be considered a constructive nonrenewal, which would be a violation of this new tenant protection rule.

In summary, the bill ensures that tenants benefiting from rental unit renovations funded by government assistance cannot be forced out through nonrenewal of leases or excessive rent increases while still allowing landlords to pursue legitimate eviction actions.