HF2687

Purpose of the Bill

This bill addresses housing issues in Minnesota by restricting corporate ownership of single-family homes, imposing higher deed taxes on such properties when sold to corporate owners, directing tax revenues to affordable housing programs, and creating a statewide landlord database.

Main Provisions

1. Corporate Ownership Restrictions:

   • Corporations, partnerships, or real estate investment trusts are restricted from owning more than 50 single-family homes.

2. Increased Deed Tax Rates:

   • A higher deed tax rate of 0.5% is applied when single-family homes are sold to corporate owners, with the revenue dedicated to the state’s workforce and affordable homeownership program.

3. Exceptions to Ownership Restrictions:

   • The restrictions do not apply to governmental units, land trusts, nonprofits focusing on affordable housing, homes classified as homestead properties, housing-focused corporations, or mortgage note holders owning homes through foreclosure.

4. Statewide Landlord Database:

   • Establishment of a public, no-cost database where landlords must annually report certain information about rental properties, including ownership details and contact information. This aims to increase transparency and assist tenants.

5. Tenant Protections:

   • Tenants can report landlords not listed in the database, triggering an investigation. Landlord retaliation against tenants reporting issues is prohibited.

6. Enforcement and Penalties:

   • Noncompliant corporate owners face penalties of $25,000 per excess home owned, and the commissioner has the authority to enforce these provisions.

Significant Changes to Existing Law

• The bill amends Minnesota Statutes 2024 to increase deed tax rates specifically for corporate ownership transfers and allocates the majority of the proceeds to affordable housing funding.
• It mandates a significant new requirement for landlords statewide to submit information to a publicly accessible database, which did not previously exist.

Relevant Terms

• Corporate ownership, single-family homes, deed tax, affordable housing, landlord database, nonprofit organizations, tenant rights, enforcement, penalty.