IV.10. Second Reading: Ordinance Amending Chapter IV of the Hopkins City Code Pertaining to the Sale of Affordable Rental Housing; YoungquistMEMO
To: Honorable Mayor and City Council
From: Jan Youngquist, Community Development Coordinator
Date: May 7, 2019
Subject: Second reading of Ordinance 2019-1141, An Ordinance Amending Chapter
IV of the Hopkins City Code Pertaining to the Sale of Affordable Rental
Housing
Staff recommends that the City Council approve the following motion: Move that the
Hopkins City Council approve Ordinance 2019-1141 for the second reading and publication.
Overview:
The proposed Tenant Protection Ordinance was discussed at City Council work sessions on
October 9 and January 2. Staff discussed the proposed ordinance at the Hopkins Apartment
Managers’ Association meeting on February 13 and sent the proposed ordinance and a
Frequently Asked Questions information sheet to local affordable housing advocates and
multi-family rental property owners and managers. The draft ordinance has been reviewed
by the City Attorney.
The City Council held a public hearing on the proposed Tenant Protection Ordinance at its
meeting on April 16. Five individuals testified and were supportive of the proposed
ordinance. A representative from the Minnesota Multi Housing Association (MHA) requested
that the proposed effective date of May 16 for the ordinance be extended in case there are
any pending sales of affordable rental buildings. The City Council directed staff to bring a
revised effective date as part of the second reading of the ordinance. After communicating
with staff from the building and inspections department as well as with MHA, community
development staff recommends an effective date of July 1 for the ordinance.
Attachment:
Ordinance 2019-1141
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2019-1141
AN ORDINANCE AMENDING CHAPTER IV OF THE HOPKINS CITY CODE
PERTAINING TO THE SALE OF AFFORDABLE RENTAL HOUSING
THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
Section 1. That Chapter IV of the Hopkins City Code is amended by adding Section 460 as follows:
Section 460 – Sale of Affordable Rental Housing Building
460.00 Purpose.
It is the purpose of this Section to provide housing stability and protection to tenants in affordable
rental housing units who are facing displacement when there is a transfer of ownership of an
affordable housing building. This Section requires, upon such a transfer, notice to the tenants and
the City and the payment of tenant relocation assistance when affordable housing is converted and
tenants are required, through direct or indirect means, to move without adequate time to find new
housing. This Section is to be interpreted broadly to ensure the tenants of affordable housing units
are afforded the protections intended by this Section.
460.01 Definitions
The following definitions apply in this Section 460 of the Code.
Subd. 1. Affordable Housing Building: A multi-family rental housing building having three or
more housing units, where at least 15 percent (15%) of the units rent for an amount that is
affordable to households at or below 60 percent (60%) of area median income, as median
income was most recently determined by the United States Department of Housing and Urban
Development for the Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan
Statistical Area, as adjusted for household size and number of bedrooms.
Subd. 2. Affordable Housing Unit: A rental unit in an affordable housing building that rents for
an amount that is affordable to households at or below 60 percent (60%) of area median
income, as median income was most recently determined by the United States Department of
Housing and Urban Development for the Minneapolis-St. Paul-Bloomington, Minnesota-
Wisconsin Metropolitan Statistical Area, as adjusted for household size and number of
bedrooms.
Subd. 3. Cause: The tenant or a member of the tenant’s household materially violated a term of
the lease or rental agreement, or violated an applicable federal, state, or local law or regulation.
Subd. 4. Relocation Assistance: A payment in the amount equal to three months of the current
monthly contract rent.
Subd. 5. Tenant Protection Period: The period that commences on the date when a real estate
closing transfers ownership of an affordable housing building and ends on the last day of the
third calendar month following the date in which written notice of the transfer is sent to each
affordable housing unit tenant pursuant to subsection 460.02.
Subd. 6. Transfer of Ownership: Any conveyance of title to an affordable housing building
resulting in a transfer of control of the building, effective as of the earlier of the date of delivery
of the instrument of conveyance or the date the new owner takes possession.
460.02 Notice
Subd. 1. Within thirty (30) days after the transfer of ownership of an affordable housing
building, the new owner shall give written notice to each affordable housing unit tenant of the
building that the property is under new ownership. The notice must include the following
information:
1. The name, mailing address, and telephone number of the new owner.
2. The following statement: “Hopkins City Code Section 460 provides for a tenant
protection period for affordable housing unit tenants after an affordable housing
building is transferred to a new owner. Under Section 460, affordable housing unit
tenants may be entitled to relocation assistance from the new owner if, during the tenant
protection period, the new owner:
a. Terminates or does not renew the tenant’s rental agreement without cause;
b. Raises the rent and the tenant submits a written notice of termination of their
rental agreement; or,
c. Requires existing affordable housing unit tenants to comply with existing or
modified residency screening criteria and the owner or tenant terminates or does
not renew the tenant’s rental agreement.”
3. Whether there will be any rent increase within the tenant protection period, the amount
of the rent increase, and the date the rent increase will take effect.
4. Whether the new owner will require existing affordable housing unit tenants to comply
with existing or modified residency screening criteria during the tenant protection
period, and if so, a copy of the screening criteria.
5. Whether the new owner will terminate or not renew rental agreements without cause
during the tenant protection period and if so, the date the rental agreement will
terminate and the amount of relocation assistance that will be provided.
6. The date the tenant protection period will expire.
7. Whether the new owner, on the day immediately following the tenant protection period,
intends to: increase rent, require existing affordable housing unit tenants to be comply
with existing or modified residency screening criteria, or terminate or not renew
affordable housing unit rental agreements without cause.
8. Each notice required by this subsection shall contain an advisory that reads as follows:
“This is important information about your housing. If you do not understand it, have
someone translate it for you now, or request a translation from your landlord.” This
advisory must be stated in the notice in the following languages: Spanish and Somali.
Upon request by a tenant, the owner must provide a written translation of the notice in
the tenant’s native language.
Subd. 2. The new owner shall provide a copy of the notice required by this subsection to the
City at the same time notice is provided to the tenant or tenants. The new owner of an
affordable housing building shall not terminate or not renew a tenant’s rental agreement
without cause, raise rent, or require existing affordable housing unit tenants to comply with
existing or modified residency screening criteria without giving the notice required by this
subsection.
460.03 Relocation Assistance
Subd. 1. When required: A new owner of an affordable housing building must pay relocation
assistance to affordable housing unit tenants when, during the tenant protection period, the new
owner:
1. Terminates or does not renew the tenant’s rental agreement without cause;
2. Raises the rent and the tenant submits a written notice of termination of their rental
agreement; or,
3. Requires existing affordable housing unit tenants to comply with existing or modified
residency screening criteria and the owner or tenant terminates or does not renew the
tenant’s rental agreement.
Subd. 2. When paid: The new owner must pay the relocation assistance to the tenant within
thirty (30) days after receiving tenant’s written notice of termination of the rental agreement or
within thirty (30) days after the owner notifies the tenant that the rental agreement will be
terminated or not renewed.
460.04 Penalty
Subd. 1. A violation of subsection 460.03 is an administrative offense that may be subject to
an administrative citation and civil penalties as provided in City Code Section 355.
Notwithstanding any provision of City Code Section 355, the penalty for a violation of
subsection 460.03 shall be the sum of the applicable amount of relocation assistance plus
$500.
Subd. 2. A violation of subsection 460.02 is an administrative offense that may be subject to
an administrative citation and civil penalties as provided in City Code Section 355.
Subd. 3. A violation of this ordinance as to each dwelling unit shall constitute a separate
offense.
460.05 Payment by City to Displaced Tenant
Within 30 days after a person pays the penalty provided for in subsection 460.04, subd. 1 to the
City, the City shall pay the applicable amount of relocation assistance to the displaced tenant of
the affordable housing unit for which the violation occurred.
Section 2. This ordinance shall take effect July 1 , 2019.
First Reading: April 16, 2019
Second Reading: May 7, 2019
Date of Publication: May 16, 2019
Date Ordinance Takes Effect: July 1 , 2019
By: __________________________
Jason Gadd, Mayor
ATTEST:
______________________
Amy Domeier, City Clerk