Loading...
2019-1141 Amending Chapter IV of the Hopkins City Code Pertaining to the Sale of Affordable Rental Housing A 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 B��ason Ga d, Mayor ATTEST: Amy Domeier, City Clerk