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HomeMy WebLinkAbout2024.04.16 HCMMINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION APRIL 16, 2024 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chair Enger at 7:10 p.m. (recording started late) MEETING ATTENDEES Chair Gretchen Enger Vice Chair Florence Williams Commissioner Lori Best-Deyoe Commissioner Laura Freund (excused) Commissioner Elizabeth Riel City Staff present: Community Development Director and Staff Liaison Jesse Anderson and Associate Planner Krystin Eldridge. Also present: Mike Vraa, HOME Line, APPROVAL OFAGENDA (0:15) There was a motion by Commissioner Williams and seconded by Commissioner Best- Deyoe to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES (0:40) There was a motion by Commissioner Williams and seconded by Commissioner Best- Deyoe to approve the March 19, 2024 minutes as submitted. The motion passed. HOMELINE MIKE VRAA — LEGISLATIVE UPDATES Mike Vraa, representative of HOME Line, explained there has never been a year in Minnesota's history related to landlords and tenants as there was in the recent session. Minnesota's landlord and tenant laws are old. There were laws from before the Civil War that remained untouched until recently, though there were some updates in the 1970s and 1980s. Mr. Vraa pointed out, the democrats control the Minnesota government. Landlord and tenant protections are considered progressive. Mr. Vraa stated there is now a State -level pre -eviction filing requirement. Brooklyn Center's ordinance is still the gold standard. The State requires 15 days of notice eviction due to nonpayment, which is a large majority of the reasons for evictions. Brooklyn Center has a 30-day notice. The cities' lead on the pre -eviction ordinances showed the State their usefulness. 4/16/24 -1- DRAFT Mr. Vraa pointed out the single biggest hurdle for a prospective tenant is a recent eviction on their record. Hennepin County has a housing court, and it is almost entirely for evictions. However, they are experts on all things housing, such as expungements. Other counties aren't as familiar with the eviction expungement process. Expungements used to be very discretionary, but the new law makes the expungement process very clear for judges. Commissioner Williams asked what the trends are in expungements. Mr. Vraa noted there is a limited history with the new laws because they were only enacted in January. It is easier to get an expungement at a court hearing now. Associate Planner Krystin Eldridge asked if expungements allow the eviction to be completely erased. Mr. Vraa stated expungements remove evictions from public record, but the courts will still have knowledge and records of the evictions internally. Mr. Vraa added there has been an increased prevalence in landlords charging random fees. Pet fees can be optional, but there may be "required" fee such as an administrative fee. All advertisements and the lease must now include the fees be listed. Community Development Director and Staff Liaison Jesse Anderson explained a landlord may charge a fee for maintenance. He asked if that can still be charged. Mr. Vraa stated it is still legal for a landlord to charge the tenant if something breaks due to misuse such as breaking a window with a baseball. However, there are no mandatory or recurring fees allowed without notice. Chair Enger asked if landlords are likely to use the legislative changes regarding fees as a reason to increase rent. Mr. Vraa stated landlords are likely to raise the rents as much as the market can bear. Mr. Vraa explained there used to be a law where the landlord couldn't go into the tenant's unit without reasonable notice. The law was vague. It now requires 24 hours of notice. There are also some restrictions about the hours, but the tenant can waive the hour restrictions if they so choose. There is also an increased financial penalty. The new law applies to any leases signed after January 1, 2024. Mr. Vraa added it used to be difficult for landlords to be sued, but a shift in the law makes suing more accessible. Previously, the person had to be an active tenant to sue the landlord. Commissioner Williams asked what the timeline is for suing a landlord. Mr. Vraa stated there is about a two-year time frame where a tenant can sue a landlord, regardless of if they are still a tenant with the landlord. Mr. Vraa noted it is difficult to get out of a lease, but there are exceptions such as joining the military, dying, domestic violence, medical reason, disability, and more. The new laws clarified these reasons. Mr. Vraa added there is a new heat code. From October through April, a landlord must provide heat of at least 68 degrees. Ms. Eldridge stated it was surprising the temperature rule wasn't 4/18/24 -2- DRAFT Statewide previously. Mr. Vraa stated there was some pushback at the State level, but it was passed. Mr. Vraa stated there was clarity added regarding the services that must be provided by the landlord urgently such as a working elevator, toilet, air conditioning, and so on. The list used to be more vague but specifics were added. The court fee was also reduced for filing such a case. Mr. Anderson asked what the process is for a tenant to file a case. Mr. Vraa stated a tenant would file an emergency request which basically gives the landlord 24 hours to address the issue. The initial notification to the landlord doesn't have to be formal; if could be through phone or text, if that like of communication was previously established. If the landlord doesn't fix it, then the tenant may file a case with the courts. The judge could force the landlord to fix the issue, possibly reimburse the tenant for a hotel stay, or other remedies. Chair Enger asked if texts are preferred to phone calls because it is written proof. Mr. Vraa stated the best method, legally speaking, would be an email. Ms. Eldridge asked how the case can be filed with the court. Mr. Vraa stated it can be filed online or in -person. Any hearings would be in -person. However, the threat of the filing is rather effective. Ms. Eldridge asked if landlords have been required to tell tenants of their rights such as the opportunity to file a complaint with the court. Mr. Vraa stated there isn't a requirement for the landlord to disclose tenant rights. Mr. Vraa noted new legislation does not allow for a requirement for pets to be declawed or devocalized. The County or State could fine a landlord if violated. Mr. Vraa pointed out some laws were promoted by university students and subsequently passed. The main reason for first-time renters to call HOME Line is security deposits. The legislation requires a move -in inspection and a move -out inspection be offered. The move -out inspection is required a few days before the tenant moves out to point out any issues that need to be fixed. Then the tenant has a time to fix the issues. The new law only applies to leases signed after January 1, 2024. Mr. Vraa added another law promoted by university students from Duluth due to an imbalance of power in the rental market. In areas with a lot of college students, landlords commonly request signing the subsequent lease within weeks of the initial lease. The new legislation has created restrictions for this scenario. Mr. Vraa pointed out a new law cannot stop a tenant from possessing marijuana in a unit. Landlords can restrict a tenant having tobacco or alcohol legally. There is an unanswered question regarding federal housing because marijuana is not legal at a federal level. Chair Enger asked why so, many changes happened at one time. Mr. Vraa stated it is likely because of the democrat -heavy goverrunent in Minnesota. Also, landlord lobbying groups don't like to see changes because historically the laws have favored landlords. It is unique in American law for the 4/18/24 -3- DRAFT government to intervene in private contracts. More recently, the lobbying groups haven't been able to play as much defense. Commissioner Williams asked if the same changes would have been made if the government was primarily republican. Mr. Vraa stated it would not have happened at this time if there were more republicans in power. He provided an example regarding the number of paid applications a landlord may receive. People were afraid rentals would decrease, but that clearly didn't happen. Mr. Anderson asked if there are any recommendations for cities in relation to tenant protection ordinances. He also asked for an update on St. Paul's tenant protection ordinance. Mr. Vraa explained St. Paul had a just cause for nonrenewal ordinance that was dropped. He pointed out Brooklyn Center is the only City in the State to have such a protection in place. As for recommendations for Brooklyn Center, HOME Line submitted 75 pages of tenant protection right suggestions that the City could reference. Rent control is extremely contentious, but capping security deposits could be helpful. Commissioner Williams pointed out the deposits can be extremely expensive. Mr. Vraa added HOME Lille only hears about the worst of the worst landlords. He provided an example of how landlords can abuse the system through security deposits, interest, and small claims court. Minneapolis has an ordinance restricting the cost of security deposits. Mr. Vraa provided a timeline on the pending legislation. It isn't possible to know what will happen at the State. One pending consideration is the ability of a landlord to refuse Section 8 vouchers. Several cities allow refusal of the vouchers. A case from Minneapolis went all the way up to the Minnesota Supreme Court. Mr. Anderson noted Brooklyn Center has heard complaints from tenants about restricted office hours or inability to contact landlords. Also, there are complaints about issues not being repaired. Unfortunately, the tenants don't tend to report the issues for quite some time after the incident. Mr. Vraa stated not all cities have inspections, let alone good inspections. Also, it is not recommended for inspectors to look into mold issues because they are unlikely to report mold. Therefore, advertising inspections isn't a widespread fix. However, an individual city may find advertising inspections as beneficial. Mr. Anderson explained some tenants have reported issues with the ability to pay rent because the offices are always closed or because the online portal is inaccessible. Mr. Vraa stated that scenario would be well -received in the courts. There aren't any State requirements about the method of rent payment. Mr. Vraa shared examples of additional fees such as the January Fee or the Rent Processing Fee. Mr. Vraa asked the Commission what direction they are heading in. There was no response. CITY COUNCIL LIAISON REPORT 4/18/24 -4- DRAFT City Council Liaison Lawrence -Anderson was not present at the meeting. OTHER B USINESS FUTURE DISCUSSION ITEMS FOR HOUSING COMMISSION Mr. Anderson asked the Commission if there are specific items to add to future agendas. Chair Enger asked if there has been any progress implementing recommendations from the ULI report. Ms. Eldridge stated the tenant protections have been addressed. She noted the rental assistance recommendation was mostly related to the pandemic. (1:05:45) Ms. Eldridge asked Mr. Anderson for an update on the CURA housing study. Mr. Anderson stated we have not done a NOAH program. Mr. Anderson explained the recommendation related to Naturally -Occurring Affordable Housing (NOAH) has changed because of new legislation. Ultimately, the traction for NOAH has decreased in favor of building tax capacity for the City. Ms. Eldridge agreed the tax base is overburdened. Brooklyn Center is using Tax Increment Funding to incentivize development. Ms. Eldridge stated another recommendation is an information hub. Chair Enger stated she was planning to find all of the housing -related information on the City website so it can be consolidated. Ms. Eldridge pointed out she is in contact with an administrative person to remove outdated information and fix some broken links. Chair Enger asked when the Council's new priorities will be reflected online. Mr. Anderson stated it should be soon. Chair Enger stated there were a few things on the list she wanted to ask City Council Liaison Lawrence -Anderson about. For example, she was interested in the Opportunity Site and the small business incubator through that project. Mr. Anderson stated the Opportunity Site will be an upcoming discussion item. Chair Enger asked if the Opportunity Site Advisory Board is happening. Mr. Anderson stated it is a possibility. The Councilmembers have varying opinions. Mr. Anderson stated the Opportunity Site, which is a shared project with Resurrecting Faith World Ministries, Project for Pride in Living (PPL), and Alatus, are responsible for various pieces of the project. Unfortunately, Alatus is facing some financial constraints. The City is working for alternative funding sources to pay for the infrastructure and allow Resurrecting Faith and PPL to move forward with their portions of the project. Options for fielding include bonding against affordable housing funds, grant money, and a separate bonding bill with Representative Vang's support. Staff will be asking Council if they would like to pursue the debt option. Alatus is also seeking alternative funding options. Overall, it is a step in the right direction. (1:15:45) Chair Enger requested a housing SWOT analysis be on a future agenda for discussion. 4/18/24 -5- DRAFT Ms. Eldridge stated she plans to print out the Commission's bylaws for review. It will help to refine the scope of the Commission's discussions. Chair Enger asked if the Council has considered anything else related to housing. Ms. Eldridge noted group homes have come up in discussion with the Council a couple of times. Some cities are working together to discuss the disparity in group homes in certain areas of the Metro. Mr. Anderson added legislation is being considered that would impact even more of the City's control on rental housing and, ultimately, group homes. Mr. Eldridge summarized the City doesn't have any control over certain facilities such as sober housing and medical assistance homes. Chair Enger stated the City is looking for housing for families. She asked how the influx of group homes impacts the need for single-family homes for renters. Mr. Anderson agreed potential homeowners are losing out on opportunities because they cannot compete with cash offers from group homes. Ms. Eldridge stated the State requires an architectural code analysis. However, the owner can make changes under the single-family home code and be approved before declaring they are a group home. Chair Enger asked if the Housing Commission could discuss group homes. Mr. Anderson stated the City doesn't have much control over group homes. If there was a solution through ordinance, then the Commission could review the ordinance. Chair Enger requested the Commissioners review the Comprehensive Plan before the next meeting. Ms. Eldridge stated she would prepare the bylaws for discussion and review issues on the website. NEW NEIGHBOR BAGS Mr. Anderson pointed out the bags aren't all delivered yet. Commissioner Williams stated she has 13 or 14 to deliver. The better weather will help with deliveries. Mr. Anderson stated they won't make new bags until the current ones are distributed. Ms. Eldridge asked if the need for Housing Commissioners can be posted to the City's Facebook page along with the expectations for the role. Mr. Anderson stated some Commissioners will be appointed at the coming meeting, though he isn't sure for which Commission. ADJOURNMENT (1:25:40) There was a motion by Commissioner Best-Deyoe and seconded by Commissioner Williams to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:35 p.m. 4/18/24 -6- DRAFT V Chair En er 4/18/24 -7- DRAFT