Purpose

• Create a new redemption option in eviction cases for nonpayment of rent.
• Clarify how rent payment is proven and change how payments can fix or avoid eviction.
• Allow rental assistance funds to be used to support landlords when a tenant redeems.

Main Provisions

• Eviction action for nonpayment

  • A landlord may file an eviction for nonpayment of rent even if the lease does not have a right of reentry clause.
  • Such an eviction action is treated as a demand for rent.
  • There is a rebuttable presumption that rent is paid if the tenant provides money orders or receipts showing rent was paid, with dates near when rent was due and payable to the landlord.
  • The landlord can still present other evidence to show nonpayment.

• Redemption option (how a tenant can stay in the home)

  • In an eviction action for nonpayment, the tenant may redeem before possession is delivered by:
  • Paying the arrears with interest, the costs of the eviction action, and an attorney’s fee up to a specified cap, and
  • Fulfilling any other lease covenants.
  • This redemption can be guaranteed by a written guarantee from:
  • A federal agency, state agency, or local unit of government, or
  • A qualifying nonprofit organization (tax-exempt under 26 U.S.C. §501(c)(3)) that runs a government rental assistance program and has funds available.
  • The guarantor must promise that funds will be provided to the landlord as agreed, under penalty of perjury.

• Partial payment and costs

  • If the tenant has paid the arrears but cannot pay the interest and attorney fees required for redemption, a court may allow the tenant to pay those amounts into court and be restored to possession within the same period if the court stays the order to vacate.
  • Before or after filing, the parties can write an agreement that partial payment of arrears accepted by the landlord can be applied to the balance due, and that such payment does not waive the eviction action.

• Application of payments

  • Rental payments must first be applied to past-due rent in the complaint before applying to rent for the current period, unless the court finds that past-due rent has been waived.

Significant Changes to Existing Law

• Introduces a formal redemption process in eviction actions for nonpayment of rent, giving tenants a path to stay in their home by paying arrears (and related costs) and meeting lease covenants.
• Establishes a clear framework for using government or nonprofit rental assistance guarantees to support redemption.
• Creates a presumption framework for rent payment tied to money orders/receipts, with the landlord allowed to present counter-evidence.
• Adds specific rules about how payments are applied (past-due first, then current) and allows partial payments to be applied without waiving the eviction action.
• Allows the court to pause or stay the eviction order to enable redemption payments to be completed.

How It Works (Plain Language Summary)

• If a landlord sues for nonpayment, tenants can try to redeem if there’s no separate lease-violation eviction involved.
• The tenant must pay what’s owed (arrears), plus interest, costs, and an attorney fee cap, and follow the lease.
• The tenant can use a guarantee from a government agency or a charitable organization that runs rental assistance to ensure funds will be paid to the landlord.
• If the tenant has paid arrears but can’t cover the extra costs, the court may allow paying those costs into court and keep possession for a limited time.
• Any partial payments can be agreed to in writing and won’t automatically end the eviction case.
• Past-due rent must be paid before current rent, unless a court says past-due amounts have been waived.

Potential Effects

• Tenants gain a clearer path to stay in their homes by accessing rental assistance guarantees.
• Landlords gain a mechanism to recover costs and still receive rent, with protections and a defined process.
• Courts gain clearer rules on how to handle redemption and payment applications.

Relevant Considerations

• The bill ties redemption to whether a separate lease violation is alleged; this may affect when redemption is allowed.
• The exact cap on attorney fees is stated as “not to exceed 5” in the text; the precise unit (percent, dollars) is not specified in the excerpt.

Relevant Terms - eviction action for nonpayment of rent - redemption - money orders - receipts - presumption rent is paid - landlord - tenant - interest - costs - attorney fees - cap (not to exceed 5) - written guarantee - federal agency - state agency - local unit of government - 501(c)(3) - government rental assistance program - penalty of perjury - stay of order to vacate - 504B.345 (order to stay/evict) - 504B.285 subdivision 5 (material lease violation) - prior rents vs current rents - partial payment of arrears - application of payments (past due first)