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HomeMy WebLinkAbout2025.09.16 HCAPHOUSING COMMISSION CITY OF BROOKLYN CENTER REGULAR MEETING September 16, 2025 Optional public access to the Webex meeting is below: Online: logis.webex.com | Phone: (312) 535-8110 Meeting Number (Access Code): 2870 208 7052 Passcode: JgpAPxK8M33 1.Call to Order — 7 p.m. 2.Roll Call 3.Approval of Agenda a.Motion to Approve Regular Meeting Agenda for September 16, 2025 4.Approval of Meeting Minutes a.Motion to Approve June 17, 2025 Meeting Minutes 5.New Neighbor Bags Updates From Commissioners 6.All Commissioner Appreciation Night 7.Tenant Protections Update Presentation 8.Adjournment 06/17/25 -1-DRAFT MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION JUNE 17, 2025 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Commissioner O’Connor at 7:05 p.m. MEETING ATTENDEES Vice Chair Natalie O’Connor Commissioner Alyssa Kuglin Commissioner Jamal Said Commissioner Landon Straub City Staff present: Associate Planner Krystin Eldridge APPROVAL OF AGENDA There was a motion by Commissioner O’Connor and seconded by Commissioner Straub to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES There was a motion by Commissioner O’Connor and seconded by Commissioner Straub to approve the March 18, 2025, minutes as submitted. The motion passed. NEW CHAIR ELECTION Associate Planner Krystin Eldrige explained that Chair Florence Williams would have to be removed as Chair due to moving, and then a new Chair could be elected. She asked Commissioner O’Connor if she would like to fill the Chair role. The Commission decided to wait until the next meeting to elect a Vice Chair if Commissioner O’Connor became the Chair. There was a motion by Commissioner Straub and seconded by Commissioner Kuglin to nominate Commissioner O’Connor as the Chair. The motion passed. There was a motion by Commissioner Straub and seconded by Commissioner Kuglin to close the election. The motion passed. There was a motion by Commissioner Straub and seconded by Commissioner Kuglin to accept the results of the election of Chair for 2025. The motion passed. 06/17/25 -2-DRAFT NEW NEIGHBOR BAGS DISCUSSION Ms. Eldridge explained there is a packet of things that is shared with the community when they go out door-knocking or to hang the bags on doors. She stated that some of the things in the bags are outdated and that a business outreach needs to be done to see which companies would like to give coupons. She stated that names needed to be updated as well. If anyone had anything that they would like included in the bags, then they could let her know. Ms. Eldridge shared that some of the things included in the bags would be the permit process, how high fences could be, how residential contractors work, the building permit process for contractors, and different city ordinances that the community may find useful. Chair O’Connor suggested including a list of licensed contractors, plumbers, etc, that live in Brooklyn Center, so neighbors can use their neighbors for things. She is willing to help with this list. She suggested that the City send out a letter to residents who may want to be included on the list. Ms. Eldridge stated that the City has a policy that it cannot promote or make recommendations for different contractors. She was unsure if the Housing Commission would be able to have a list of businesses to use, but she is willing to ask. Chair O’Connor asked who does the outreach for businesses that are included in the packets, such as those who give coupons. Ms. Eldridge stated that she does a lot of the outreach to businesses. Ms. Eldrige shared that they would go out in July and August with the bags. There are about 250 homes that are mapped out where they would bring bags. Commissioner Said asked who the bags go to. Ms. Eldridge stated that they are new homeowners. Ms. Eldridge explained that the homes are all over; she tried to break it up and is hoping to go out in groups, but it can also be done individually. She is thinking that if there were three teams, that would be about 85 per team, and that would be over two visits, so just over 40 in one night. Chair O’Connor felt it would be fun to go in pairs. She also asked if they could put a flyer in the bags that said they are compiling a list of our neighbors' businesses, please email us if you are interested. Commissioner Straub suggested that it be more like a Next-Door group and be driven rather than the City dispensed. Ms. Eldridge stated that she would see if she could be the name on the flyer; otherwise, she asked Chair O’Connor if she was willing to be the name on the flyer. Commissioner Said suggested that other businesses be included as well, such as cleaners. Ms. Eldridge stated that she has the list of addresses for the Commissioners when they take the bags out, and there are no names on them, just addresses. 06/17/25 -3-DRAFT Chair O’Connor asked what they looked like. Ms. Eldridge stated that they are reusable blue totes, which hold all the information for the residents. Ms. Eldridge explained that included in the bags is information on burglary prevention, and she is thinking about adding driveway information because there are many questions about expanding or changing driveways. There is also a map called Shop, Meet, Eat in the bag, which is being updated to show all the restaurants and public city buildings. Commissioner Kuglin asked if there was anything about when permits are needed in the bag. Ms. Eldridge stated that there is some information about permits, but not everything, because there are so many different things that need permits. Commissioner Straub stated there is a flyer titled Permit Information for Home Improvement. Ms. Eldridge shared that there is information about recruiting block captains, who are accountable to officers around what is happening in their neighborhood. Chair O’Connor asked about National Night Out and how block captains relate to that. Ms. Eldridge stated that National Night Out is done in the blocks, and the block captains work with the police officers to make it work. The City also hosts an event at the government building. Commissioner Straub stated that he has a neighbor who hosts a block party every year for National Night Out, and many times, the police officers will be present with other activities as well. Commissioner Said stated that if you contact the City before National Night Out, the police and fire will put you on a list to come to your neighborhood’s block party. Chair O’Connor asked when National Night Out is. Ms. Eldridge stated that it is the first Tuesday in August. Chair O’Connor asked if there is a list of those who have block parties. Ms. Eldrige explained that she did not know, but she could ask Chris Stein, the crime prevention specialist, if he has a list. Commissioner Straub stated that he was not sure if it was approved by the City for his neighborhood, but that he just gets a flyer every year from one of his neighbors. Ms. Eldridge stated that she thinks anybody can host an event on National Night Out. The point of the event is to interact with the people around you and let them know that you are all looking out for each other. Commissioner Said added that many associations in Brooklyn Center host events such as National Night Out. Commissioner Said stated that there is an event run by the City, where they go to different parks and there is a free meal along with it, that families can attend and meet their neighbors. Ms. Eldridge stated that the bags would be handed out at the July and August meetings, but if that did not work, then they could pick a different day as well. This would be done instead of the meetings. She added that she would be putting the bags together in the next month. She asked if there were questions or if they wanted to pick teams now to go out with. Chair O’Connor stated they could wait until the next meeting to decide who to go with, when more people are present. Ms. Eldridge shared the map that they would be going out to and stated that she would come up with a good idea of where everyone would go. 06/17/25 -4-DRAFT COMMUNITY DEVELOPMENT UPDATES Ms. Eldridge stated that Icon Beauty is now open. They are a beauty supply store. Commissioner Said asked if they were new or had just moved locations. Ms. Eldrige stated that this would be their second store, as they already have a store by Wingstop and the car wash. Ms. Eldridge explained that they are working with the owner to remove the blacked-out windows, as they were not put up with permission from the City. The City is trying to have pedestrian-facing businesses not have blackout windows on Xerxes. Commissioner Said asked if they had filled the space because it was quite large. Ms. Eldridge stated that when she was last in the store, it seemed like it would be quite full. Ms. Eldridge explained that Micholandia has moved out of their space, and Mi-Michoacana moved in. It seems to be the same concept, but with more options. Chair O’Connor asked if Micholandia had trouble with traffic or what the reason was for moving out. Ms. Eldridge stated that she was not sure why they moved out; they just quietly vacated the space. Ms. Eldridge stated that the City just got done presenting Oh Pretty! Events and Rentals, which will be located in the Humboldt Shopping Center. They will host birthdays and weddings, along with catering food. Ms. Eldridge shared that Community Development is working with a coffee lounge that will go in Humboldt Shopping Center; however, they are still going through permitting, state plumbing, and the health department. Commissioner Said asked how the City is helping the coffee lounge through the process. Ms. Eldridge stated that the City is helping them go through the permit process and making sure that they meet their deadlines, and construction is going as planned. Ms. Eldridge explained that ACER, African Career Education and Resources, is going for a grant to expand and redevelop the Shingle Creek Center in August. This is still in the early stages of happening. Ms. Eldridge stated that the Brooklyn Boulevard Dental clinic is going to be doing some updates: they are expanding and giving the building a facelift. Ms. Eldridge explained that Capi is expanding. They are moving their services to Shingle Creek Center. She stated that there will be more traffic in the area because of it. Ms. Eldridge noted that the City is working with the residents who have two houses on Brooklyn Boulevard, where there should only be one structure on the parcel. So, the city is working to correct this in the records, and contractors were brought in to finish out the parking lots. The parcel needs to be replatted and taken through the city process. Commissioner Said asked if the City would move one of the properties from the lots. Ms. Eldrige stated that it was not the plan, 06/17/25 -5-DRAFT but that the lot lines would be changed. Chair O’Connor asked if they had put in the services already. Ms. Eldridge stated that there are water utilities. Chair O’Connor asked if the plan was for six units. Ms. Eldridge stated that she thinks it is seven units. Ms. Eldridge explained that the City is working on cannabis ordinances. This includes temporary events, and how to regulate cannabis, such as no smoking and signage. She added that a lottery will have to be held to choose who gets to have stores, which will probably take place at a City Council meeting because it needs to be public. Chair O’Connor asked if they are being limited to an area, and if there is room for three businesses. Ms. Eldridge stated that the state minimum is three, and that is what the City capped it at. There are many vacant stores that they could go into. Chair O’Connor asked if there was anything new on the Sears building. Ms. Eldridge stated there was not. Commissioner Said stated he did not want to see it become apartment buildings. OTHER BUSINESS FUTURE DISCUSSION ITEMS FOR HOUSING COMMISSION There was no other business addressed by the Commission. ADJOURNMENT There was a motion by Chair O’Connor and seconded by Commissioner Said to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:09 p.m. __________________________________ Chair O’Connor MEMORANDUM TO: Brooklyn Center Housing Commission FROM: Jesse Anderson, Community Development Director DATE: September 16, 2025 SUBJECT: Summary of Brooklyn Center Rental License Program and Tenant Protections This memo provides a high-level overview of the Brooklyn Center Rental License Program and tenant protections. City Council has directed staff to review these programs. Staff have already held recent discussions with Property Owners and Tenants. We will be having a discussion with the Housing Commission to provide feedback. That feedback will be provided to the City Council for their upcoming discussion. 1. Rental License Program Overview The City of Brooklyn Center has operated a rental license program since the 1970s, evolving into a performance-based system in 2010 to encourage proactive property management. The current program assigns one of four license types based on property code violations per inspected unit: Licenses are approved by the City Council only after a property passes a full inspection of all units and is current on all utility bills and property taxes. 2. Options for Program Adjustments The presentation outlines several options for the Commission to consider: • Eliminate Training and Requirements: Removing the Crime Free Housing Training and Crime Prevention Through Environmental Design (CPTED) requirement. • Revise License Requirements: Eliminating the Action and Mitigation Plan requirements for Type III and IV licenses, which can often be a barrier to achieving a higher license type. • Adjust Inspection System: Modifying the point system to allow more violations for each license type. • Revert to a Two-Year Cycle: Returning to a standard two-year license for all properties, regardless of performance. 3. Tenant Protections In addition to the licensing program, the city has adopted several tenant protections since 2018. • 2018 Protections: Included requirements for property owners to provide notice to both the city and tenants of a sale, as well as notification for material changes to a lease such as rent increases or non-renewals. • 2021 Protections: Instituted a 30-day pre-eviction notice and a "just cause" non-renewal ordinance, limiting lease non-renewal to specific reasons. • Recent State Protections: The State of Minnesota has also passed new tenant protections, including a 14-day notice for non-payment of rent evictions, mandatory fee disclosure, a minimum heat requirement, and the right to move-in/out inspections, among others. These state-level protections are privately enforceable by tenants in district court. Also, attached to this memo is the Council Packet and Housing Commission minutes form 2023 where the City Council and the Housing Commission reviewed the ordinances. As well as the original memo originally provided during the initial adoption. MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION July 18, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Enger at 7:03 p.m. MEETINGATTENDEES Chair Gretchen Enger Vice Chair Michael Donnelly Commissioner Lori Best-Deyoe Commissioner Laura Freund Commissioner Jerry Gayflor Commissioner Elizabeth Riel — not present Commissioner Florence Williams — (joined via WebEx at 7:12 p.m.) City Staff present: Community Development Director and Staff Liaison Jesse Anderson and City Associate Planner Krystin Eldridge. City Clerk Barb Suciu joined the meeting via WebEx at 7:13 p.m. Also present: Marty McDonough, Director of Government Affairs with Minnesota Multi Housing Association (MHA), City Councilmember Dan Jerzak, and Eric Falkman, COO with Soderberg Apartments. WELCOME AND INTRODUCTION The members of the Commission introduced themselves to one another. Commissioner Best-Deyoe asked if Brooklyn Center is 20 percent rental properties. Staff Liaison Jesse Anderson stated he doesn't know offhand. City Planner Krystin Eldridge noted it was about 40 percent rental properties when she last looked at the statistics. Commissioner Best-Deyoe asked if group homes count in that percentage. Mr. Anderson explained group homes or other rental properties are only counted as a rental if a rental license is needed. If the homeowner also lives on site, there is not a need for a rental license. Commissioner Best-Deyoe noted part of the reason she wanted to join the Housing Commission is because of all of the rentals and group homes on her street. APPROVAL OFAGENDA There was a motion by Chair Enger and seconded by Vice Chair Donnelly to approve the agenda as submitted. The motion passed. 7/ 18/23 -1- APPROVAL OF MINUTES: APRIL 18, 2023 AND MAY 16, 2023 There was a motion by Chair Enger and seconded by Commissioner Gayflor to approve the minutes for the April 18, 2023 and May 16, 2023 Housing Commission meetings The motion passed. NEWNEIGHBOR PROGRAM HOUSING COMMISSIONER TO PROVIDE FEEDBACK ON PACKETS Staff Liaison Jesse Anderson stated the packets are still being put together by Staff. He explained the New Neighbor Program is a hand -delivered bag from a Housing Commissioner to any new residents of Brooklyn Center. There is a hope to deliver in early August, and the deliveries are most successful on weekday evenings. 41212023-21112023 (245 NEW NEIGHBORS) None. 512112021-313112022 (120NEWNEIGHBORS) None. SELECT DELIVERYDATES Chair Enger suggested folks discuss availability. Commissioner Florence Williams joined the meeting through WebEx at 7:12 p.m. Mr. Anderson noted the next Housing Commission meeting is August 15, 2023, so the delivery date should be before then. Chair Enger stated she would be unavailable to attend the August 15 meeting. She offered to attend virtually. Mr. Anderson pointed out Commissioners cannot participate virtually anymore. City Clerk Barb Suciu joined the meeting through WebEx at 7:13 p.m. The consensus of the Housing Commission was to deliver some packets on August 8, 2023. They will meet in the parking lot to pick up packets and assign addresses for delivery. The hope is to leave to start deliveries by 6:00 p.m. Chair Enger asked who was available on August 10, 2023 for delivery. Vice Chair Donnelly suggested only delivering once per week and offered the date of August 15, 2023. Mr. Anderson pointed out August 15, 2023 is a Housing Commission meeting with a full agenda. The consensus of the Housing Commission was to deliver more packets on August 16, 2023. They will meet in the parking lot to pick up packets and assign addresses for delivery. The hope is to leave to start deliveries by 6:00 p.m. Chair Enger asked for availability for deliveries on August 22, 2023. Commissioner Best-Deyoe stated people move out of Brooklyn Center so fast it is impossible to get to know neighbors. 7/18/23 -2- The consensus of the Housing Commission was to deliver more packets on August 22, 2023. They will meet in the parking lot to pick up packets and assign addresses for delivery. The hope is to leave to start deliveries by 6:00 p.m. PRESENTATION ON NEW CONSTRUCTION MULTI FAMILY LICENSE AND REPEAT TYPE 4 LICENSE Staff Liaison Jesse Anderson gave an overview of the history of discussions on the topic. In January 2023, City Council requested Housing Commission to review Licensing for New Construction Rental Properties. In February 2023, the Housing Commission had an agenda item for New License. There were only 2 Commissioners in attendance and no meeting was held. In March 2023, the Housing Commission had an agenda item for New License. There were only 3 Commissioners in attendance and no meeting was held. In April 2023, the Housing Commission had discussion regarding the Initial Rental License Type. There was direction to staff to have 3 scenarios reviewed by the City Attorney. Then in June 2023, the Housing Commission were provided the feedback from the City Attorney on the 3 scenarios reviewed by the City Attorney. The Commission continued the discussion for the next meeting. Mr. Anderson stated there has been a rental licensing program since the 1970s. Mr. Anderson explained system was last modified in 2010, and it is intended to promote quality assurance. Additionally, it is meant to reward landlords for quality rental services and to provide extra attention to lower -performing rentals. Staff Liaison Jesse Anderson explained there is a four -tier structure of licensing in Brooklyn Center. A license is required when a unit is not owner -occupied. After a license is granted, there is a required inspection. The tiered structure is performance -based, and each tier has different requirements. A license cannot move up to another tier unless they meet all of the current tier's requirements, have no violations, and successfully complete an inspection in a particular timeline. Mr. Anderson stated the ordinance covers length of license, application, revocation, definition of a valid police call, and tenant protection ordinance. Mr. Anderson stated after the inspection, Staff reviews police service calls. He showed a list of valid calls. Different amounts of validated police calls count against license levels in different ways. The validated police calls haven't impacted properties in a while, mostly because those with several validated police calls are already at the 6-month license level. Staff Liaison Jesse Anderson stated each license level correlates with a different level of crime - free housing requirements. He showed a slide with information on the various licensure tiers. If the property owner doesn't fulfill the requirements, then they are not eligible to move up to a higher license tier. The license repeats as a six-month license if the crime -free housing requirements are not met or if there are a high number of qualified police calls. Mr. Anderson showed a slide with the distribution of the various license types. The lowest tier is only eight percent of the units in Brooklyn Center. The tiers do not reflect the size of the residence. 7/18/23 -3- Staff Liaison Jesse Anderson showed some of the numbers Council used to make changes in 2018. At that time, 44 percent of type four rentals were repeats. 38 percent of the repeats were due to violations. In 2022, there were 76 repeats, 60 percent of which were only due to failing to meet requirements. Staff Liaison Jesse Anderson stated of the type four licenses issued in the 2015-2018 period, 86 percent of them improved from the previous inspection. Since 2018, that percentage has increased. The percentage is lower for 2023, but it is early in the year and Staff has been stricter on rental licensing lately. Mr. Anderson noted the Commission has also been asked to consider new construction licensure. The ordinance is written somewhat weirdly, and the current City Attorney agrees. As it stands, new construction houses can't get higher than a tier one license. Mr. Anderson stated Sonder House has gotten a lot of attention. There are 127 units, and their license expired May 31, 2023. At that time, there were zero violations. They have recently paid the renewal fee. A full inspection was conducted on April 26, 2023 and 168 property maintenance code violations. A majority of the units had few or no violations, and the common areas were well - maintained. Several units had multiple property code violations, which resulted in the large total number. A follow-up inspection is scheduled. Mr. Anderson explained Sonder Point, a senior living facility, recently had an inspection and received zero violations. The Sanctuary is also a senior living facility. After two years of operating the facility, there were 27 violations and six police calls for service, neither of which impacted the license type. Maranatha is an older rental, and they have done well with inspections over the years. Most recently, their inspection showed 16 violations and allowed them to maintain their license type. Mr. Anderson noted the City Attorney reviewed some licensure options. The first suggestion was new developments can only qualify for a Type 3 license and require an action plan. This would require the fewest number of changes to the existing City Code and the Rental License Category Criteria Policy. As it stands, new licenses start at Type 2. Type 3 requires an action plan, so this requirement would automatically be in place. The language of the City's form Rental License Plan would have to be tweaked because it assumes that the property has been placed in the Type 3 category for known nuisances and calls. Staff Liaison Jesse Anderson stated the City Attorney had a response to the second option, which was that a new license could quality for a Type 2 license, but it will be reviewed at the one-year mark; if their license changes based on code violations or validated nuisance police calls for service, it would be change to that new license type. This would require a few more additions and changes to the City Code. If the goal is a one-year review, rather than saying that a new license qualifies for Type 2, the City Attorney recommends a one-year provisional/probationary license that will be reviewed at one year, and at that time, placed in the proper category. It may be confusing for a licensee if they think they have a two-year Type 2 license, with everything that comes with that, but it's not really a two-year license. It seems like it would be cleaner to just say it's a one-year license. 7/18/23 -4- City Clerk Barb Suciu noted the audio is going in and out. Staff Liaison Jesse Anderson added the third option was offering a six-month licensure and requiring a mitigation plan with police calls for service as part of the review. As discussed, six months seems like a pretty short period of time for the initial license period and may not necessarily be representative of a longer period of time. With the mitigation plan requirement, this would effectively be a Type 4 provisional license from the outset and would be particularly restrictive for potential landlords. Of the three options, this is the only one that pose some concerns with regard to the legal impact and a potential claim that it is too restrictive. Mr. Anderson noted a fourth option was added to keep current licensing ordinance that provides for a 2-year license maximum for initial rental license at New Construction. Chair Enger explained the goal is to determine which option the Housing Commission would like to recommend to the Council. She asked for each Commissioner to share their opinion to find a consensus. Commissioner Florence Williams asked if she would be able to vote. Mr. Anderson asked Ms. Suciu, but she did not respond. Mr. Anderson stated typically someone cannot vote remotely, but this is just a recommendation to the Council. Commissioner Gayflor stated his initial impression was in support of the first option. However, one year is a little tight for inspection, and he now prefers option two. Commissioner Freund noted she prefers option four. Vice Chair Donnelly agreed that he supports option four. Commissioner Best-Deyoe stated her preference is option two. Chair Enger agreed she prefers option two. Commissioner Williams stated she also prefers option two. There was a motion by Chair Enger and seconded by Commissioner Gayflor to recommend the City Council consider that a new license can qualify for a Type 2 two-year license but will be reviewed at the one-year marls and if their license changes based on code violations or validated nuisance police calls for service, it would be change to that new license type. Commissioner Williams stated the current system isn't working, so the fourth option is pointless. Then the first option is too short of a timeline for a new construction. Mr. Anderson stated it is hard to determine if the current process is working or not. There isn't an evaluation at the one-year mark, which could be helpful to address issues with a poorly performing property. Vice Chair Donnelly asked if there is an example of that. Mr. Anderson stated there is not an example. 7/18/23 -5- Chair Enger stated there has been minimal construction in Brooklyn Center since the 1970s. Part of the reason the Commission is discussing the licensing process is because of the upcoming new development planned in the City. Vice Chair Donnelly asked if the recommendation would impact the first phase of the Opportunity Site. Chair Enger stated Wangstad Commons would be the first building impacted by any licensing changes. Commissioner Williams stated Sonder House is in the process of obtaining new licensure. Mr. Anderson stated they are in the renewal process for the first time. It currently looks like they will obtain a two-year license. Commissioner Williams asked if the recommendation would impact Sonder House. Mr. Anderson stated Sonder House is past the point of first -round licensure, and the recommendation only impacts the first-time licensing. Staff Liaison Jesse Anderson added if the recommendation were implemented, it is unlikely it would impact Wangstad Commons or the Opportunity Site, Vice Chair Donnelly and Commissioner Freund voted against the same. Chair Enger, Commissioner Best-Deyoe and Commissioner Gayflor voted in favor of the motion. Commissioner Williams was in attendance virtually and expressed that she supported the motion. The consensus of the Housing Commission was to recommend the City Council consider that a new license can qualify for a Type 2 two-year license but will be reviewed at the one-year marls and if their license changes based on code violations or validated nuisance police calls for service, it would be change to that new license type. There was a motion by Vice Chair Donnelly and seconded by Commissioner Freund to recommend the City Council consider keeping current licensing ordinance that provides for a 2 year license maximum for initial rental license at New Construction. Chair Enger, Gayflor, and Best-Deyoe voted against the same. Motion failed. Staff Liaison Jesse Anderson noted he would relay details of the discussion to the Council and that Commissioner Williams participated remotely when the recommendation is presented. CITY CO UNCIL LIAISON REPORT This item was considered after Future Meeting Topic Schedule — July 18, 2023 — Presentation on Tenant Protection Data and invite property owners/representatives. FUTURE MEETING TOPIC SCHEDULE JULY 18, 2023 — PRESENTATION ON TENANT PROTECTION DATA AND INVITE PROPERTY OWNERSIREPRESENTATIVES Staff Liaison Jesse Anderson explained there was direction from Council for the Housing Commission to consider the Tenant Protection Ordinance. At a future meeting, tenants and 7/18/23 -6- advocacy groups will be invited. Chair Enger pointed out she would be unable to attend the August meeting, but she would like to participate virtually. Mr. Anderson stated he would confer with City Clerk Barb Suciu to determine their options. Staff Liaison Jesse Anderson stated there are two main components to the tenant protection ordinance. First, there is a 30-day pre -eviction notice requirement. Second, there is a requirement that non -renewals have just cause. This establishes requirements that prevents a property owner or property manager from non -renewing an existing tenant's lease without just cause. Options of just cause include the non-payment of rent, material non-compliance, tenant nomenewal, occupancy by property owner of family member, building demolishing or conversion, rehabilitation or renovation, complying with a government order to vacate, occupancy conditioned on employment. Mr. Anderson explained in 2018-2019, the City first looked at adopting a tenant protection ordinance regarding the sale of an affordable housing property. In conversation with City Council on housing policies, the Council wanted Staff to look at additional tenant protections in 2021. Staff reviewed ordinances and met with staff from the City of St. Paul. Due to the lawsuit against the City of St. Paul, City of Brooklyn Center decided to only bring forward a few sections for tenant protections. The proposed ordinance was brought to the Housing Commission on October 19, 2021. The Housing Commission heard from housing advocacy groups and numerous tenants throughout the process. Mr. Anderson stated the proposed ordinance was brought to City Council on November 8, 2021 for a discussion and first reading. During the council meeting, staff presented the two proposed tenant protections. It was brought back to City Council at the December 13, 2021 meeting. There was public comment from property owners, tenants, and tenant advocacy organizations. The City Council continued the discussion for the meeting in January 2022. Staff Liaison Jesse Anderson noted during the City Council meeting on February 14, 2022, the Council continued the tenant protection conversation with three proposed changes: adding a provision for landlords to track non -renewals of leases and report them to the City when request: reduction of the pre -eviction notice from 30 days to 14 days, and addition a provision that would allow property owners to give a 90-day notice for non -renewal without giving a reason. The Council requested that the proposed changes be reviewed by the Housing Commission. Mr. Anderson stated at the February 28, 2022 City Council Meeting, Staff presented and reported on the February 15, 2022 Housing Commission meeting. The Housing Commission preferred a 30-day pre -eviction notice but would consider a 14-day notice as a good compromise. The Commission was split on the 90-day non -renewal notice without just cause. The Commission agreed that the property owners should be required to document and report non -renewals. Public comment was heard regarding the proposed changes. Council had a discussion about the changes and voted to approve Resolution No. 2022-30 which included the 30-day pre -eviction notice, just 7/18/23 -7- cause non -renewal, and tracking and reporting of non -renewals. Mr. Anderson pointed out in January 2023, City Council requested an update on the Tenant Protection Ordinance related to the landlords' non -renewals documentation. Staff sent out a survey to all property owners and managers on April 5, 2023. The survey was sent via GovDelivery and to 350 emails including single family and multifamily owners/managers. Another email was sent on April 24, 2023 directly to large property owners/managers in the City. Staff also directly called managers to request the survey be completed. A total of 27 responses were received. Mr. Anderson summarized the results of the landlord survey. 95 percent of landlord participants stated their property is considered affordable housing. 23 landlords sent out less than 5 evictions while two sent out 6-10 evictions and another two sent out 30-60 evictions. The eviction filings were for a number of reasons. 11 landlords stated evictions were for non-payment of rent, three were for abandonment, and two for lease violations. Mr. Anderson stated there was a question on how long the landlord waiting for an eviction hearing with Hennepin County. 13 landlords did not file an eviction, six waited 5-8 weeks, five waited 0- 4 weeks, and three waiting more than 9 weeks. As for results of the hearing, 10 were issued a write of recovery, five resulted in a mutual termination, and three ended up in mediation. Mr. Anderson added there was a question about how many lease non -renewals were issued in 2022. 18 issued 0-5 non -renewals, four issued 6-10 non -renewals, one issued 11-15 non -renewals, and two issued more than 15 non -renewals. 61.5 percent of non -renewals were for late rent and 38.5 percent were for material lease violations such as property damage, smoking, non -cooperation with pest control, and unsanitary conditions. Mr. Anderson noted 77 percent of landlords stated that the tenant protection ordinance did not impact their decision to issue an eviction. 70 percent of landlords stated that the tenant protection ordinance did not impact their decision to issue a non -renewal. Mr. Anderson added the Council was also interested in the feedback received by Minneapolis and Saint Louis Park after implementing their tenant protections. Both cities have not received or are not aware of any complaints regarding violations of the ordinance. Minneapolis stated that they had originally proposed 30 days based off feedback from their public hearing, but after feedback from the property managers and owners, the City lowered it to 14 days. Saint Louis Park originally proposed 10 or 14 days for a notice, but after the owners opposed the length, they lowered it to seven. Both cities have been unable to determine the effectiveness of the program due to the eviction moratorium. Eric Falkman, COO with Soderberg Apartments, explained they own and manage about 2200 units around the Metro, with about 785 units in Brooklyn Center. The tenant protection ordinance came up in a unique time as they were coming out of COVID-19 restrictions and civil unrest. Currently at the State level, they are working on a comprehensive tenant protection ordinance. Brooklyn Center has some of the most severe tenant protection ordinances in the State. Marty McDonough, Director of Government Affairs with Minnesota Multi Housing Association 7/18/23 -8- MHA), agreed Brooklyn Center has some of the most severe tenant protection ordinances in the State. He stated the Association is comprised of about 2200 members serving over 600,000 renters throughout the State. The membership includes small-scale landlords, apartment management companies, developers, common interest communities, and providers of related products and services. Mr. McDonough pointed out Saint Louis Park was the first City that wanted some sort of protection ordinance for tenants should a rental facility come under new ownership. From there, other cities followed suit. Mr. McDonough explained something unique about Brooklyn Center was defining affordable units as those under 80 percent area median income (AMI), while every other city has their definition at 60 percent AMI. 80 percent AMI for an efficiency apartment is $1,468 per month, a one - bedroom is $1,574, a two -bedroom is $1,889, and so on. That definition includes almost all units in Brooklyn Center. The majority of cities chose the definition of 60 percent AMI for consistency as renters may move around or as property owners may operate units in multiple cities. Mr. McDonough stated there is a section of law in Minnesota, called 504B, with extensive information defining the roles and responsibilities of landlords and tenants. Some cities don't even have a rental licensing program. For example, Eagan is just starting a rental license process. Mr. McDonough stated there has been an assumption for quite some time that a tenant is aware of the cost they are agreeing to upon signing a lease and when it is due. However, the ordinance in Brooklyn Center requires the landlord to notify the tenant of their nonpayment at or after the due date before they are able to start any eviction process. It then takes on average six weeks for the case to get a court hearing, during which time the landlord won't be receiving any payment. The issue only compounds on itself from there. Mr. McDonough noted Minneapolis has a 14-day notification period and St. Louis Park has a seven-day notice. However, Brooklyn Center is at a 30-day notice. There is a new Statewide requirement of a 14-day notice since Brooklyn Center created their ordinance. St. Louis Park will likely eliminate their ordinance all together and just abide by the State's requirements. Minneapolis' timeline is the same, but they have different reporting requirements. MHA is working with Minneapolis to get the requirements more in line with the State. Mr. McDonough explained the States requirements have a lookback period of only three years for evictions. Also, pending evictions will no longer be public. There is an option for tenants to request an inspection of the unit bcf'ore moving in, and there is a tenant remedies portion to report non -working elements such as air conditioning, refrigerators, or elevators. There are provisions about breaking leases for health issues, required disclosure of any non -optional fees, and 24-hour notice before entry. Mr. McDonough added just cause non -renewals can be dangerous for cities to do. For example, there could be a problem tenant who is causing other tenants to leave, but the reason isn't only the list of just causes. Brooklyn Ccntcr is the only City to have a just cause non -renewal component. 7/18/23 -9- The only other city that has tried is has had it repealed. Mr. Falknian stated his company ('eels the same way. It is ultimately for the ease of the renters because Brooklyn Center has unigric rules that don't apply elsewhere, Soderberg Apartments has fielded numerous questions and concerns from tenants trying to move into or out of Brooklyn Center due to the tenant protection ordinance. There are similar issues in Saint Louis Park. Overall, Soderberg Apartments has great relationships with tenants, and they want to maintain those relationships. Mr. Falkman shared examples of problem tenants that caused other tenants to leave and couldn't be removed due to just cause. The problems couldn't be substantiated such as smoking or creepy behaviors. An eviction is the last resort for landlords, and non -renewals are a valuable tool to work together with tenants. The ordinance forces landlords to start the eviction process much sooner than they would like because of the additional time constraints. They would prefer to work together with the tenant. Chair Enger asked where they can find information cited by the presenters. Mr. McDonough agreed the information is difficult to find and was part of a Bill with other random topics such as gun control. Mr. Anderson confirmed he would send out the information on the Bill and how to access it. He noted he previously sent out I lomcl,inc's summary of the new regulations. Mr. Falkman added there has been a serious increase in stolen identities in the State, which is another concern for landlords. Councilmcmber Jerzak agreed there are issues created for the victim of the stolen identity, the neighboring tenants, and the landlords. It is virtually impossible to chase down the criminals, and law enforcement doesn't have the capacity to handle such concerns. Commissioner Gayflor explained Brooklyn Center is unique to most other cities in Minnesota. There may need to be certain regulations to protect its diverse community. She asked why this topic is a priority and how consistency matters. Mr. McDonough stated consistency is important for both landlords and tenants. Both sides can expect similar processes for applications, inspections, leases, non -renewals, evictions, and the like. It is easier to teach and train employees and also makes it easier for tenants to know their rights. Mr. Falkman noted the discrepancy can cause conflict. He pointed out Brooklyn Center already has one of the strictest rental licensing programs he has ever encountered. The City has strong tools in their licensing to support tenants. I. andlords may see it as burdensome, but he sees it as a benefit as it raises the standard of housing and prevents bad actors from renting units in Brooklyn Center. Commissioner Williams asked what the purpose of the presentation is. Chair Enger stated it is educational and the Commission N•vill hear from tenants and tenant advocacy groups in a fixture meeting. Then there will be a future discussion to determine if any recommendations should be 7/18/23 -10- made to the Council. Commissioner Laura Freund pointed out 70 to 77 percent of landlords were not impacted by the ordinance, according to the survey. She asked what brought up the topic. Mr. Anderson asked for feedback on the ordinance from the Housing Commission, Mr. Falkman added many housing providers don't understand the ordinance and aren't sure on how to implement it. Chair Enger noted only 27 responses were received from 350 survey requests. The lack of response may also reflect the lack of understanding by landlords. Mr. Falkman stated landlords were solicited for feedback during the process. Landlords didn't even know about the potential ordinance until the second reading. Housing providers in the community feel as though their opinion is unimportant or not valued, and that may have resulted in fewer survey responses. Councilmember Jerzak pointed out parr ol'tlhe process for the ordinance required that there be a survey of landlords after the ordinance was in place for a while. Since the ordinance process began, there is a new Mayor and two new Councilmembers. Also, there weren't any State regulations in place when the ordinance development began. The inspectors have been caught in the middle of the issue as well, and that is not their role. Commissioner Williams stated Brooklyn Center isn't trying to be different and may not have an issue with becoming consistent with the Stalc regulations, There needs to be further discussion before universal claims are made, Commissioner Gayflor stated the lacl< o I' survey responses from landlords show that landlords don't really care. Chair Enger thanked Mr, Falkman and \/Ir. N/1cDonough for their time. Mr. Falkman noted he left his card if anyone wanted to speak further, AUGUST IS 2023 — PRESI.N71 1 T%ON ON TENANT PROTECTION AND INVITE TENANTSANDADVOC11 CY GROUP None. SEPTEMBER 19 2023 — UI_I IIOUS[AfG REPORTPRI:SENTATION None. CITY COUNCIL LIAISON REI'OR7' Chair Enger stated this item will no( he addressed as Council Liaison Councilmember Kris Lawrence -Anderson was not present. OTHER B USINESS Chair Enger showed a documeni that she lound on the City website related to the ULI Housing 7/18/23 Report. There are short- and long-term ideas of things to implement. She suggested there be a presentation on the topic and why the document was created. Mr. Anderson stated he sent it out previously to the Commission, but he cam rescnd it. The presentation is scheduled for September. Commissioner Best-Deyoe stated the housing market in Brooklyn Center is slowing down. Chair Enger added there is a Council agreement that the Councilmembers follow during their meetings. She explained she put together a similar document that could ensure the Housing Commission is working as a collective and all parties feel equal. She provided a copy of the document to the present Commissioners. Mr. Anderson proposed the item be a discussion topic at a future meeting. Commissioner Freund asked where Chair Eiigcr found the methodology. Chair Enger stated she learned it from the Council and modeled it iI'm, the Council norms. Councilmember Jerzak noted Commissions tend to have a set of bylaws or code of conduct that the Staff Liaison could provide to the Commission. Mr. Anderson stated the bylaws were provided to each member of the Commission, but review of the bylaws can be added to the agenda. ADJOURNMENT There was a motion by Commissioner Gaynor and seconded by Commissioner Donnelly to adjourn the meeting. The motion passed. 'I'Iic Brooklyn Center Housing Commission adjourned at 9:08 mm. 7/18/23 -12- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION SEPTEMBER 19, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Enger at 7:42 p.m. MEETINGATTENDEES Chair Gretchen Enger Vice Chair Michael Donnelly (Absent) Commissioner Lori Best-Deyoe Commissioner Laura Freund Commissioner Jerry Gayflor Commissioner Elizabeth Riel (Excused) Commissioner Florence Williams (Absent) City Staff present: Community Development Director and Staff Liaison Jesse Anderson and Associate Planner Krystin Eldrige. Also present: Brian Bosire, ACER; Samuel Spaid, HOME Line; Jessica Szuminski, Housing Justice Center; Pastor Paul Bushey; Trent Grammer, ACER; Crest Resident Khadija Hardin; New Crest Resident; WELCOME AND INTRODUCTION The Commissioners and Staff introduced themselves. APPROVAL OFAGENDA Chair Enger suggested amending the agenda to reflect the accurate date of the October Housing Commission meeting. There was no objection by the rest of the Commission. There was a motion by Commissioner Freund and seconded by Commissioner Gayflor to approve the agenda as amended. The motion passed. APPROVAL OFMINUTES There was a motion by Commissioner Freund and seconded by Commissioner Best-Deyoe to approve the minutes for the July 18, 2023 Housing Commission meeting as submitted. The motion passed. PRESENTATION ON TENANT PROTECTION HISTORY AND FEEDBACIC FROM TENANTSAND ADVOCACY GROUPS 9/ 19/23 -1- Community Development Director and Staff Liaison Jesse Anderson gave an overview of the history of tenant protection in the City. The most recent ordinances require a just cause for non - renewal of a lease and create a 30-day notification requirement for eviction. Mr. Anderson stated the City first considered tenant protection ordinances in 2018 with a 90-day notice of lease changes. In 2021, a Fair Housing Policy was adopted. Following the eviction moratorium and a legal case in St. Paul regarding tenant protection rights, the City began working on the just cause non -renewal and eviction notification timeline. The Housing Commission submitted the proposals for the two items in November 2021. Following that, there were some public hearings and discussions where the Council heard from tenants and landlords. There was some discussion regarding alternative timelines to the 30-day eviction notification and other compromise attempts. Mr. Anderson noted there has been some changes in State legislation that impact tenant protection rights, so the Council requested the Housing Commission review the tenant protection ordinances. BRIAN BOSIRE —ACER INC Brian Bosire thanked the Commission for their service to the City. He introduced himself as an organizer and Brooklyn Center resident. He explained social justice includes housing justice. The process for eviction and just cause non -renewals need to include equitable outcomes for both parties. Mr. Bosire pointed out many tenants and landlords are still unaware of the new regulations surrounding non -renewals. The City could be doing more in terms of community education on housing rights. As he has educated residents about the ordinances, the tenants are consistently excited. Mr. Bosire noted some people have concerns about differences in regulations between various cities. However, Brooklyn Center has the opportunity to continue to lead in the Twin Cities. Tenants still cite lack of accountability for landlords. He encouraged the Housing Commission to uphold the tenant protection rights previously based by the Commission. Chair Enger asked which method Mr. Bosire recommends to connect with more people in the community. Mr. Bosire stated the communication channels have to include multiple strategies to meet people where they are at. Some examples include social media, radio, and television. Communication can also be a collaboration with local community organizations, such as ACER. SAMUEL SPAID — HOME LINE Samuel Spaid introduced himself as an attorney with HOME Line, which is a statewide organization that provides free legal advice to tenants among other things. It has been a little over a year since the ordinances were passed, and HOME Line continues to support them. The ordinances allow people to stay in their homes and promote stability. The eviction timeline requirements allow tenants to seek out legal advice or learn about their options. The protection offered in the just cause requirement for non -renewals is vital to protecting tenants from retaliation or other biased non -renewals. 9/19/23 -2- Mr. Spaid noted several landlords cited Brooklyn Center as having the most severe tenant protection ordinances in the State. The landlords with that belief don't seem to support tenant protections or promoting safe and stable housing. Brooklyn Center should continue to promote safe and stable housing. Mr. Spaid added Brooklyn Center's ordinances are more detailed than the State's upcoming legislation. The legislation also allows for cities to pass their own ordinances to further protect tenants. OTHER GROUPS Trent Grammer, graduate student in public policy partnering with ACER, explained he has been looking at statewide eviction data. There are significant health and educational impacts on people who have experienced evictions. Some research has been done on just cause non -renewals in California, which has shown positive impacts of such policies. Mr. Grammer provided a handout to the Commissioners. The handout showed a summary of eviction trends over time. Causal inference is difficult, but the information is still descriptive of the experiences in Brooklyn Center. Mr. Grammer explained Brooklyn Center and Brooklyn Park are very similar demographically. The two cities had very similar eviction rates up until the end of February 2022. Since then, the Brooklyn Park eviction rates increased while Brooklyn Center's remained flat. Since the time the tenant protection ordinances were adopted, there was a decrease of 2.9 weekly evictions per 10,000 renter -occupied housing units. Mr. Grammer noted the Statewide context for the timing was following the cessation of the eviction moratorium. Most places have had an increase in evictions after the moratorium, but Brooklyn Center's flat statistic is a good indicator that the tenant protection ordinances have been successful. Pastor Paul Bushey agreed a number of local organizations are more than willing to provide educational information regarding tenant protections. He explained he lived in The Crest Apartments for more than a decade. The building's long-term renovation during that time had dire impacts on residents, particularly for disabled tenants. For 35 days, one tenant was told he was unable to use the kitchen nor unpack his things during his apartment's renovation. Brooklyn Center should consider additional tenant protection ordinances. Kadija Hardin noted her agreement with the comments made by Pastor Bushey. In her eight years living at The Crest, there have been eight different managers. She experienced similar issues during apartment renovations as cited by Pastor Bushey. After 7.5 years in one unit, she was forced to move to a new unit. She stayed in her unit for six weeks unable to use her kitchen. Ms. Hardin explained she was the last of the tenants who received reimbursement for food reimbursements, but all tenants were made the same promises. Hotels were provided for two of the 13 floors of the building, and two floors of the building along with five or so residents on her floor received any financial compensation. Later on, management claimed the check recipients where committing a form of fraud. 9/19/23 -3 Ms. Hardin stated The Crest Apartment recently had an afternoon shooting in the parking lot. Nothing was done by management. She stated she doesn't feel safe in her apartment anymore, and management is not doing anything to respond to safety concerns. Ms. Hardin added many tenants are receiving notices that their rent is unpaid, although that is not the case. She has approached management multiple times regarding the issue. She has been fined for random things without explanation or just cause. Jessica Szuminski, attorney with the Housing Justice Center, explained her organization provides advocacy and legal support all over the State. They are attempting to promote similar ordinances in other jurisdictions. The ordinances make the rental process more predictable and creates time for tenants to seek out assistance when faced with an eviction. The ordinances also empower tenants to advocate for better living environments without fear of retaliation. Additionally, long- term housing stability is made available to minority groups by addressing long-standing systemic issues. Since tenants are unable to negotiate leases, it is vital that entities such as Housing Commissions and City Councils advocate for renters in their communities. Ms. Szuminski pointed out the statistics related to decreased evictions are compelling. However, they don't begin to address undocumented forms of evictions. There is a low vacancy rate in the City, so when tenants are displaced, it makes it even harder for them to stay in their home communities. There is also a lack of affordable housing available throughout the Metro. The 30- day eviction notice requirement allows the tenant to look into legal options, financial support opportunities, or find another place to live. Plus, alternatives to evictions save the time and money for both tenants and landlords. On behalf of the Housing Justice Center, she urged the Commission to preserve the ordinances. New Crest Resident explained she is newer to the Brooklyn Center community and lives in the new Crest Apartments. The advertisements and promises made about the building and its amenities are false. Even though the building was new, the elevator was broken the day she moved in and has since been broken multiple times. New Crest Resident noted she is disabled, and it is not physically possible for her to use stairs. Management never shows up to work on time, and some days no one shows up. The fobs are inconsistent, and she has yet to be able to access the promised heated garage. Also, the exercise room is used for nothing but storage. New Crest Resident noted the main manager is difficult to work with and not a people -person. She doesn't answer questions asked by tenants. New Crest Resident explained she needs a help bar near the toilet and in the shower. Her disability advocate did the paperwork with the main manager in July 2023. The manager claimed this never happened. New Crest Resident and her advocate's supervisor met the manager in person. The manager finally acknowledged that she made a mistake, but there are still no help bars installed. New Crest Resident added there is a security guard that is there only to protect the staff from tenants. The main level has random people in it at all hours, which is unsafe. She also shared experiences with a previous apartment in Minneapolis. 9/19/23 -4- Chair Enger thanked the commenters for sharing their experiences with the Commission. NEW NEIGHBOR BAGS Mr. Anderson stated some of the new neighbor bags are ready. He offered for the Commissioners to grab the bags divided by neighborhoods to distribute on their own. Also, some badges are ready. Chair Enger suggested wearing Brooklyn Center shirts to have more success with delivering bags. Mr. Anderson stated he would work with Communications Staff to see if they have available t- shirts. FOLLOW UP OCTOBER 17, 2023 — TYPE IV REPEAT RENTALS, TENANT PROTECTION_FOLLOW UP Staff Liaison Jesse Anderson explained the meeting will go into more depth on Type IV repeat licenses, and that will be combined with other license categories for the Council to consider. Also, there will be an opportunity to discuss the commentary fiom the present meeting. Mr. Anderson added the Opportunity Site needs some discussion. The Council has developed an infrastructure guide for the redevelopment, and there is a Master Plan for the site. The planning could be reviewed by the Housing Commission. Alternatively, there could be discussion about another topic of interest for the Commission. For example, there could be a presentation on the new tenant protection legislation beginning in 2024. Chair Enger stated she would like a presentation on new tenant protection legislation beginning in 2024. Mr. Anderson stated HOME Line has good resources on the topic, and they could invite Mr. Spaid to present at that time. There are some strong additions like a required eviction timeline. However, there is nothing about a just cause non -renewal. Mr. Anderson added previous Commissions have considered repercussions for landlords that provide false maintenance charges or deny renters based on their income. NOVEMBER 21, 2023 — THANKSGIVING BREAK? MEET WEEK BEFORE OR AFTER Mr. Anderson stated the date of the meeting also needs to be discussed because of its proximity to Thanksgiving. Chair Enger stated she was available on November 21, 2023 for a meeting. There was a consensus by the Commission to keep the meeting on November 21, 2023. Chair Enger asked what management company handles The Crest Apartments. Mr. Anderson stated Aeon manages The Crest, and they tend to focus on low-income housing. It's a nonprofit, mission -based organization. Staff has worked with the Fire Department regarding the broken elevator. The elevator cable broke sooner than the organization had budgeted for. Since they are a non-profit organization, they have been raising funds to replace the cable. Mr. Anderson added the nonprofit grew immensely in a short amount of time. The goal was to prevent developers from turning the buildings into market -value units and to preserve affordable housing. They have good intentions, but they grew too quickly. 9/19/23 -5- ADJOURNMENT There was a motion by Chair Enger and seconded by Commissioner Best Defoe to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:02 p.m. 9/19/23 -6- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION OCTOBER 17, 2023 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Enger at 7:10 p.m. MEETINGATTENDEES Chair Gretchen Enger Commissioner Lori Best-Deyoe Commissioner Laura Freund Commissioner Jerry Gayflor Commissioner Florence Williams Vice Chair Michael Donnelly was absent and excused. Commissioner Elizabeth Riel was absent. City Staff present: Community Development Director and Staff Liaison Jesse Anderson, Associate Planner Krystin Eldridge, and City Council Liaison Kris Lawrence -Anderson. Also present: None. APPROVAL OFAGENDA There was a motion by Commissioner Best-Deyoe and seconded by Commissioner Freund to approve the agenda as submitted. The motion passed. APPROVAL OFMINUTES: SEPTEMBER 19, 2023 There was a motion by Commissioner Best-Deyoe and seconded by Commissioner Freund to approve the minutes of the September 19, 2023 meeting as submitted. The motion passed. LANDLORD/TENANT ORDINANCE FEEDBACK DISCUSSION Commissioner Enger summarized the general discussion of the feedback heard from the landlords and tenants regarding the Tenant Protection Ordinance. She mentioned comments made by Marty and Eric from the Landlord Housing Commission Meeting; the commenters expressed the difficulty evict troubled tenants with the 30-day notification requirement in place. They added the Ordinance presents burdens to the landlords to manage the different expectations throughout different jurisdictions. Overall, the preference of the landlords is for the City to adopt an Ordinance in -line with the State's recommended 14-day pre -eviction notice timeline. Commissioners expressed confusion about the timeline and process around pre -eviction and actual eviction notices. There were questions about how much time a tenant has when an actual 10/17/23 -1- DRAFT eviction notice is received by a tenant. Chair Enger also relayed a summary of feedback from the session with Crest Residents, Tenant Advocates, and HOME Line. During the meeting, Samuel Spaid, Housing Attorney with HOME Line pointed out how rates of eviction climbed significantly in other cities compared to Brooklyn Center. The Commissioners also asked questions about the meaning of just cause non -renewals. Commissioner Williams explained she works within the shelter system. She stated that many of the shelter habitants list non -renewal of their lease as their reason for needing shelter. Commissioner Williams expressed her support of the 30-day ordinance. City Council Liaison Kris Lawrence -Anderson explained that the undue burden the City places on landlords to evict tenants. She noted if landlords cannot evict problematic tenants, then they may not want to continue supporting the Brooklyn Center rental market. City Council Liaison Lawrence -Anderson stated she supports the option for a 14-day ordinance within Brooklyn Center to promote a business -friendly environment and avoid the burden of vacant buildings in the City. City Council Liaison Kris Lawrence -Anderson noted the hardship of balancing business owner interests and renter interests. There is a wholistic view that needs to be considered when the evaluating City dynamics. Property taxes should also be considered when evaluating these ordinances as well. Commissioner Williams added she is concerned about property taxes as well. She stated she is experiencing the same increases and would prefer to have lower taxes. However, she would prefer tax dollars be used to support the community members rather than landlords. Commissioner Gayflor stated he is unsure about which eviction timeline he supports due to the lack of data for how each timeline impacts renters. Community Development Director and Staff Liaison Jesse Anderson explained the data may be unavailable as it is not information renters nor landlords report. Commissioner Freund noted she is generally in support of the 30-day timeline ordinance because of the power imbalance between renter and landlord. The Commission should consider the social dynamics of discrimination within the system when drafting the Ordinance. She added she would support even stricter tenant protections on landlords. Commissioner Williams and Chair Enger both consider equitable outcomes for both Landlord and Tenant regarding the Tenant Protections Ordinance and Commissioners Williams, Gayflor, and Freund expressed their support of upholding the current Ordinance. 10/17/23 -2- DRAFT There was a motion by Chair Enger and seconded by Commissioner Williams to recommend the City Council uphold the current Tenant Protection Ordinance. The motion passed. 7100 BROOKLYNBOULEVARD — HOUSING PRESENTATION Associate Planner Krystin Eldridge presented the Planning Commission application proposed for 7100 Brooklyn Boulevard. 7100 Brooklyn Boulevard will be a 17-unit multi -family residential property. It would be a conversion from office to residential. It was originally a credit union. In its location to the North Brooklyn Center United Methodist Church and to the south are office condos. To the West are single family residentials and a stormwater pond directly to the West. Planning Commission was not in support of the project and neighbors surrounding the property were not in support either. Chair Enger asked about feedback from surrounding properties and the minutes and recording fiom the meeting. She also asked how long the building was vacant and what the prior use was. Ms. Eldridge explained the other business tenants would prefer the business district be maintained and expressed concern about increased traffic. Additionally, the church at the north end of the development requested installation of a fence along the property line. Developers were receptive to installing a fence and noted a fence was already proposed for the project. A simple extension of the fence would appease the church's request. Commissioner Freund and Williams noted their support of more housing and diversity of housing choice within Brooklyn Center. FOLLOW UP NOVEMBER 21, 2023 —REPEAT RENTALS —TYPE IV Staff Liaison Jesse Anderson stated the following Housing Commission meeting would address repeat rentals. ADJOURNMENT There was a motion by Commissioner Williams and seconded by Commissioner Best-Deyoe to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:45_ p.m. Chair Enger 10/17/23 -3- DRAFT C ouncil R egular M eeng DAT E:5/22/2023 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :J esse A nders on, I nterim C ommunity D evelopment D irector BY:X iong Thao, H ous ing and Community S tandards S upervis or S U B J E C T:Tenant P rotec0ons U pdate Requested Council A con: - S taff is providing an update on the tenant protecon ordinance. No council acon is required. B ackground: I n 2018-2019 the City first looked at adop0ng a tenant protec0on ordinance regarding the s ale of an affordable housing property. This ordinance provided no0ce to tenants of the sale and any material lease changes, including rent rate changes. I n the ordinance if the ow ner did not provide sufficient no0ce per the ordinance the tenant w ould then be allowed to receive re-loca0on as s is tance. This ordinance w as adopted in January of 2019. I n further conversa0on with C ity C ouncil on hous ing policies , the council w anted S taff to look at addi0onal tenant protec0ons beginning the early part of 2021. S taff received direc0on from City Council to look at tenant protec0ons that the C ity can adopt to give tenants /residents addi0onal protec0ons in addi0on to the S tate s tatutes . S taff review ed the adopted tenant protec0ons by the C ity of S t. Paul and then met with C ity of S t. Paul staff to dis cus s the adopted tenant protec0ons . The adopted tenant protec0ons by City of S t. Paul w as challenged in court and City of S t. Paul ul0mately rescinded the ordinance. D ue to the lawsuit agains t the City of S t. Paul, C ity of Brooklyn C enter decided to only bring forward a few tenant protec0ons . The C ity had s everal convers a0ons w ith landlords /property owners, tenants , tenant rights organiz a0ons , and M N M ul0-H ous ing A ssocia0on to discuss the proposed tenant protec0ons in hopes of bringing together a compromis e. D uring the mee0ngs, s taff w as able to hear both s ides expres s their concerns for adop0ng the ordinance as is , the proposed changes to the ordinance, and the City doing nothing to further tenant protec0ons in the City. The propos ed ordinance w as brought to the H ousing Commission on O ctober 19, 2021. The H ousing Commission heard from hous ing advocacy groups and numerous tenants and w as as ked to approve the proposed ordinance. The H ous ing C ommis s ion unanimous ly approved recommenda0on to approve the proposed ordinance. The propos ed ordinance w as brought to C ity C ouncil on November 8, 2021 for a discussion and first reading. D uring the council mee0ng, staff presented the tw o proposed tenant protec0ons. · P re-Evic0on F iling No0ce: This w ould provide tenants a 30 no0ce that the property ow ner intends to file an evic0on for non-payment of rent or a material breach of leas e. · J us t Caus e Non-Renew al: This w ould prevent a property owner or manager from non-renewing an exis0ng tenant ’s leas e without jus t cause and provide tenants a reas on as to why their leas e was being non- renewed by the property ow ner. o Non-payment of rent o M aterial non-compliance of the leas e o Refus e to renew a lease agreement o O ccupancy by the property owner or family member o Building demolishing or convers ion o Rehabilita0on or renova0on o C omplying with a G overnment order to vacate o O ccupancy condi0oned on employment · Waiver is not allowed by a tenant to w aive their rights under the new ordinance · P rivate enforcement – A tenant or former tenant of an affordable housing harmed by an ow ner in viola0on of this ordinance may bring an ac0on against the ow ner in dis trict court I t was brought back to City Council at the D ecember 13, 2021 mee0ng for a public hearing and approve a res olu0on adop0ng the second reading and to publish a s ummary of the ordinance. S taff also provided addi0onal informa0on on the current housing s tatus in Brooklyn C enter and explained each of the new proposed tenant protec0on in further detail. There w as public comment from both property ow ners , tenants , and tenant advocacy organiza0ons. The discussion among Council members agreed to con0nue the tenant protec0ons at the next council mee0ng in January 2022. D uring the City Council mee0ng on February 14, 2022 the Council con0nued the tenant protec0on conversa0on there w ere three proposed changes. F irst, an added provision that w ould require property ow ners to track and report to the City any non-renewals of leas es and the reas on for nonrenew al. The s econd change w ould reduce the pre-evic0on no0ce from 30 days to 14 days. The third change would be to add a provis ion that would allow property ow ners to give a 90 day no0ce for non-renew al without giving a reason. P ublic comment w as heard and C ouncil Members had a lengthy dis cus s ion about the proposed changes. The C ouncil w anted to hear from the H ousing Commission about the propos ed changes s o it w as as ked that the agenda be brought back to the February 28, 2022 council mee0ng. D uring the Council mee0ng on February 28, 2022 staff presented and reported the February 15, 2022 H ousing Commission mee0ng dis cus s ion about the three propos ed changes . The H ousing Commission preferred a 30 day pre-evic0on no0ce but w ould cons ider a 14 day no0ce as a good compromise. The Commission was s plit on the 90 day non-renew al no0ce without jus t cause and finally the Commission agreed that the property owners should be required to document and report non-renewals . A gain, public comment w as heard regarding the propos ed changes . C ouncil had an ac0ve dis cus s ion about the changes and voted to approve Res olu0on No. 2022-30 which included the 30 day pre-evic0on no0ce, just caus e non-renew al, and tracking and repor0ng of non-renew als. S taff s end out a s urvey to all property owners and managers on A pril 5, 2023. The s urvey w as sent via G ov D elivery and emailed to all property ow ners approximately 350 emails. The G ov D elivery and email w ent out to both single family and mul0-property owners/managers . A nother email w as sent on A pril 24, 2023 to the large property owners /managers in the C ity. A total of 27 res pons es were received. The survey was nine ques 0ons and asked s pecifically about evic0ons and non-renewals . Res pons es were aggregated s o no individual property ow ner could be iden0fied. A summary of the survey results: 1. I s your property cons idered an affordable housing unit? a. 95% stated their property is considered affordable housing 2. H ow many evic0ons did you file in 2022? a. 23 owners filed 0-5 evic0on; 2 filed 6-10 evic0ons ; and 2 filed 30-60 evic0ons 3. W hat w ere the evic0on filings for? a. 11 filed for non-payment of rent; 3 s kipped/abandonment; 2 leas e viola0on 4. O n average, how many days /weeks did you wait for an evic0on hearing with H ennepin County courts? a. 13 did not file an evic0on; 6 waited 5-8 weeks ; 5 waited 0-4 weeks ; and 3 w aited 9+ weeks 5. W hat w ere the res ults of the evic0on hearing? a. 10 was is s ued a w rit of recovery; 5 w as mutual termina0on; and 3 res ulted in media0on 6. H ow many lease non-renewals did you issue in 2022? a. 18 issued 0-5 non-renewals ; 4 issued 6-10; 1 issued 11-15; and 2 is s ued 15 or more non-renew als 7. W hat w ere the leas e non-renew als for? a. 61.5% w ere for exces s ive late rent; 5 for material lease viola0ons; and 3 for mutual termina0on 8. D id the tenant protec0on no0ce of evic0on impact your decis ion to file an evic0on? a. 77% stated that the tenant protec0on ordinance did not impact their decis ion to is s ue an evic0on. 9. D id the tenant protec0on of leas e non-renew al impact your decis ion to is s ue a leas e non-renew al? a. 70% stated that the tenant protec0on ordinance did not impact their decis ion to is s ue a non-renew al B udget I ssues: There are no budget is s ues to consider. I nclusive C ommunity Engagement: A nracist/Equity Policy Effect: S trategic Priories and Values: Resident Economic S tability, S afe, S ecure, S table C ommunity AT TA C H M E N TS : D escrip0on U pload D ate Type A pril 2023 Tenant protec0on survey results 5/2/2023 Cover Memo 02-28-2022 C ouncil Memo 5/16/2023 Backup M aterial Tenant Protection Survey 1 / 9 92.59% 25 7.41% 2 Q1 If your unit rents at or below the rates in the chart, your property is considered affordable. Is your property considered an affordable housing unit? Answered: 27 Skipped: 0 TOTAL 27 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No ANSWER CHOICES RESPONSES Yes No Tenant Protection Survey 2 / 9 Q2 How many evictions did you file in 2022? Answered: 27 Skipped: 0 # RESPONSES DATE 1NONE 4/25/2023 3:32 PM 2Zero 4/24/2023 4:13 PM 30 4/16/2023 4:15 PM 45 4/12/2023 11:41 AM 51 4/11/2023 11:18 PM 6None 4/11/2023 11:15 AM 70 4/11/2023 10:27 AM 80 4/11/2023 9:33 AM 99 4/10/2023 4:39 PM 10 none 4/10/2023 3:24 PM 11 2-3 4/10/2023 2:24 PM 12 0 4/10/2023 11:17 AM 13 two 4/10/2023 10:58 AM 14 30 4/10/2023 8:03 AM 15 60 4/9/2023 11:01 PM 16 none 4/8/2023 2:44 PM 17 0 4/8/2023 1:46 PM 18 0 4/8/2023 11:43 AM 19 5 4/8/2023 7:37 AM 20 0 4/8/2023 1:38 AM 21 2 4/7/2023 8:35 PM 22 0 4/7/2023 7:29 PM 23 0 4/7/2023 7:01 PM 24 5 4/7/2023 4:55 PM 25 0 4/7/2023 4:17 PM 26 6 4/7/2023 3:58 PM 27 0 4/7/2023 3:58 PM Tenant Protection Survey 3 / 9 84.62% 11 7.69% 1 23.08% 3 15.38% 2 Q3 What were the evictions filings for? Answered: 13 Skipped: 14 Total Respondents: 13 # IF YOU CHECKED LEASE VIOLATION PLEASE STATE THE REASON BELOW DATE 1 under the just cause eviction it is nearly impossible to evict for lease violation, how do I prove somone is dealing drugs? 4/24/2023 4:13 PM 2 Various 4/9/2023 11:01 PM 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Non-payment of rent Lease violation Skip/Abandonmen t If you checked lease violat... ANSWER CHOICES RESPONSES Non-payment of rent Lease violation Skip/Abandonment If you checked lease violation please state the reason below Tenant Protection Survey 4 / 9 Q4 On average, how many days/weeks did you wait for an eviction hearing with Hennepin County courts? Answered: 27 Skipped: 0 # RESPONSES DATE 1 IT TOOK 3-4 MONTHS FOR OUR OTHER PROPERTIES 4/25/2023 3:32 PM 2 6 weeks ( evictions were at other properties ) 4/24/2023 4:13 PM 3N/A 4/16/2023 4:15 PM 44 weeks 4/12/2023 11:41 AM 54 4/11/2023 11:18 PM 6N/A 4/11/2023 11:15 AM 7 no one was evicted 4/11/2023 10:27 AM 80 4/11/2023 9:33 AM 945 days 4/10/2023 4:39 PM 10 0 4/10/2023 3:24 PM 11 3-4weeks 4/10/2023 2:24 PM 12 N/A 4/10/2023 11:17 AM 13 I waited a few months.4/10/2023 10:58 AM 14 Approximately 7 weeks 4/10/2023 8:03 AM 15 8 weeks 4/9/2023 11:01 PM 16 0 4/8/2023 2:44 PM 17 N/A 4/8/2023 1:46 PM 18 0 4/8/2023 11:43 AM 19 6 4/8/2023 7:37 AM 20 n/a 4/8/2023 1:38 AM 21 90 days 4/7/2023 8:35 PM 22 n/a 4/7/2023 7:29 PM 23 0 4/7/2023 7:01 PM 24 12-14 4/7/2023 4:55 PM 25 15 days 4/7/2023 4:17 PM 26 8 weeks 4/7/2023 3:58 PM 27 n/a 4/7/2023 3:58 PM Tenant Protection Survey 5 / 9 100.00% 10 30.00% 3 50.00% 5 Q5 What were the results of the eviction hearing? Answered: 10 Skipped: 17 Total Respondents: 10 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Writ of recover was... Recommend mediation Mutual lease termination... ANSWER CHOICES RESPONSES Writ of recover was issued Recommend mediation Mutual lease termination approved by the Court Tenant Protection Survey 6 / 9 Q6 How many lease non-renewals did you issue in 2022? Answered: 27 Skipped: 0 # RESPONSES DATE 18 4/25/2023 3:32 PM 2 you cant do this ???4/24/2023 4:13 PM 3N A 4/16/2023 4:15 PM 415 4/12/2023 11:41 AM 51 4/11/2023 11:18 PM 6N/A 4/11/2023 11:15 AM 70 4/11/2023 10:27 AM 80 4/11/2023 9:33 AM 911 4/10/2023 4:39 PM 10 0 4/10/2023 3:24 PM 11 0 4/10/2023 2:24 PM 12 N/A 4/10/2023 11:17 AM 13 two 4/10/2023 10:58 AM 14 Approximately 2 dozen 4/10/2023 8:03 AM 15 10 4/9/2023 11:01 PM 16 none 4/8/2023 2:44 PM 17 0 4/8/2023 1:46 PM 18 0 4/8/2023 11:43 AM 19 7 4/8/2023 7:37 AM 20 n/a 4/8/2023 1:38 AM 21 6 4/7/2023 8:35 PM 22 2 4/7/2023 7:29 PM 23 0 4/7/2023 7:01 PM 24 2 4/7/2023 4:55 PM 25 2 4/7/2023 4:17 PM 26 0 4/7/2023 3:58 PM 27 0 4/7/2023 3:58 PM Tenant Protection Survey 7 / 9 61.54% 8 38.46% 5 23.08% 3 38.46% 5 Q7 What were the lease non-renewals for? Answered: 13 Skipped: 14 Total Respondents: 13 # IF YOU CHECKED MATERIAL LEASE VIOLATION PLEASE STATE THE REASON. DATE 1 UNSANITARY LIVING CONDITIONS, DID NOT COOPERATE WITH PEST CONTROL, PROPERTY DAMAGE,. SETTING OFF BOTTLE ROCKETS INSIDE BUILDING HALLWAYS 4/25/2023 3:32 PM 2 Many reasons, mostly smoking violations and not payment of rent 4/12/2023 11:41 AM 3N/A 4/10/2023 2:24 PM 4n/a 4/8/2023 1:38 AM 5 Excessive damage to property 4/7/2023 8:35 PM 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Excessive late rent payment Material lease violation Mutual agreement If you checked material lea... ANSWER CHOICES RESPONSES Excessive late rent payment Material lease violation Mutual agreement If you checked material lease violation please state the reason. Tenant Protection Survey 8 / 9 22.22% 6 77.78% 21 Q8 Did the tenant protection notice of eviction impact your decision to file an eviction? Answered: 27 Skipped: 0 TOTAL 27 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No ANSWER CHOICES RESPONSES Yes No Tenant Protection Survey 9 / 9 29.63% 8 70.37% 19 Q9 Did the tenant protection notice of lease non-renewal impact your decision to issue a lease non-renewal? Answered: 27 Skipped: 0 TOTAL 27 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No ANSWER CHOICES RESPONSES Yes No C ouncil R egular M eeng DAT E:2/28/2022 TO :C ity C ouncil F R O M:D r. Reggie Edwards, City Manager T H R O U G H :M eg Beekman, C ommunity D evelopment D irector BY:J esse A nders on, D eputy D irector of Community D evelopment S U B J E C T:A n O rdinance A mending C hapter 12 of the City Code of O rdinance Regarding Tenant P rotec0ons and A pprove a Resolu0on to allow a S ummary P ublica0on of the O rdinance Requested Council A con: - Motion to approve a resolution approvi ng of the second reading of an ordi nance amendi ng Chapter 12 of the Ci ty of ordi nances regardi ng tenant protecti on and summary publ icati on of the ordi nance. B ackground: Overview B ased on f eedback from the City Council, staf f have prepared and attached a draft resolution and ordinance that includes the 30 day pre-eviction notice and removes the 90 day notice of non- renewal without just cause provision. February 15, 2022 – T he Housing C ommission met and discussed the different version of the ordinance. T hey passed a mo0on sta0ng the following: A tenant protec0on ordinance is needed. The commission would prefer a 30 day pre-evic0on no0ce, but w ould cons ider the 14 day 0me period to be a good compromis e. The commission was s plit on w hether or not to include the 90 day non-renewal no0ce w ithout just caus e. (3 Commissioners preferred to remove the 90 day non-renew al without jus t cause and 2 Commissioners preferred to keep it in the ordinance) The commission agrees that the property ow ners /managers should be required to document and report non-renewals . The H ous ing C ommis s ion passed the following mo0on: C ommissioner H ester moved and C ommissioner Oman seconded to provide feedback to the C ity C ouncil that the H ousing C ommission agrees there is a need for a tenant protecon ordinance, favors the 30-day pre-evicon noficaon but can compromise with the 14-day pre-evicon noficaon, is split on the just cause non-renewal provision, and supports the data collecon provision. The moon passed. February 14, 2022 - T he C ity C ouncil met and discussed a revised version of the ordinance. T he C ouncil suggested addi0onal feedback from the Housing C ommission and it was requested that staff return with an ordinance including the 30 day pre-evic0on no0ce and no 90 day renewal without just cause. January 19, 2022 – An email went out to the property owners/managers who a<ended the public hearing or A R M Mee0ng, tenant Advocacy groups, and the Housing C ommission with a copy of the revised ordinance. January 12, 2022 - J anuary 12, 2022 staff met with rental owners, property managers, and tenant advocacy representa0ves. Staff met with rental owners, property managers, and tenant advocacy representa0ves. Generally, the majority of landlords spoke against the ordinance as a whole and would prefer that no version of an ordinance be adopted. T he suggested compromise by landlords was to reduce the no0ce period for the pre- evic0on no0ce to 7 or 5 days and to adopt a renewal no0ce period rather than a just cause non-renewal. January 6, 2022 - staff met with approximately 20 landlords at the A R M Mee0ng and discussed the proposed ordinance. T he feedback from landlords was consistent with the feedback provided at the public hearing. December 13, 2021 - T he C ity C ouncil met and held the public hearing on this item. A@er the public hearing and C ouncil discussion, the vote on the second reading of the ordinance was delayed un0l J anuary 24, 2022. N ovember 8, 2021 – T he C ity C ouncil met and approved the first reading and called for a public hearing for D ecember 13, 2022. October 19, 2021 - T he B rooklyn C enter Housing C ommission meet on and discussed the proposed tenant protec0on ordinance. T he Housing C ommission unanimously approved a recommenda0on to approve the proposed ordinance. Feedback from the C ity of M inneapolis City s taff received the follow ing feedback from the City of Minneapolis regarding their tenant protec0on ordinance. H as the city received complaints from residents about not receiving the no0ce? We have not yet received a complaint regarding this ordinance yet H ow does the city handle complaints ? Enforcement is on a complaint bas is only right now We rely on complaints coming from renters through our 311 call center, a case is created and s ent to myself and a team of liais ons We have a group of Renter H ous ing L iaisons who will do research and follow up to as k for documenta0on and other suppor0ng evidence to confirm there was a viola0on. I f a viola0on is found we have a proces s for issuing a viola0on no0ce and possible cita0ons – the cita0ons are adminis tra0ve and can be put on a property as a special as s essment if not paid by the end of the year H ow has the courts help or hurt this ordinance? To my knowledge w e haven’t had any is s ues with the courts on this ordinance. We w ere very mindful of talking with our City A<orneys to ensure we could pass an ordinance that would be able to be held up O ther info? We are only able to enforce this if we get a complaint right aw ay and are limited to s ending viola0on no0ces and cita0ons or fees – w e rely on partners like H omeLine and other external s takeholders w ho w ould repres ent a renter if they had to go to court to fight an evic0on or use the pre-evic0on filing no0ce ordinance as a defens e if 14 day no0ce was not given. We created a template for no0ce as a s ample for ow ners to us e in cas e they had ques0ons , we have it on our w ebsite – h<ps://w w w 2.minneapolis mn.gov/busines s -s ervices /licens es- permits/rental-licens es/renter-protec0ons /renter-no0fica0on-requirements/ A n important thing to note is that w e pas s ed this ordinance during the evic0on moratorium so w e implemented it during a 0me that evic0ons for non-payment of rent weren’t really happening. D o you guys get feedback on w hether the 14 days w as too long / too short? W hen I talked w ith S t. L ouis Park they did 7 days and w e knew that w ould probably be too s hort. We pres ented the 14 day no0ce and w e got feedback at our public hearing that we s hould look at 30 days . We aligned our 14 days with the provis ion of emergency as s is tance and the involved 0meframes for acces s ing and obtaining assistance. A gain, this was pre<y early on before issues w ith RentH elpM N and long wait 0mes, but it w orked for us to align it to s omething exis 0ng. Ordinance Summary The propos ed ordinance amendment summary: Pre-Evic0on Filing N o0ce requires an owner of an affordable housing unit to provide a 30 day wri<en no0ce to a tenant prior to filling an evic0on. J ust C ause N on-Renewals establishes requirements that prevents a property owner or property manager from non-renewing an exis0ng tenant lease without just cause. N on-Payment of Rent Material N on-compliance Refusal to Renew O ccupancy by property owner of family member B uilding D emolishing or C onversion Rehabilita0on or Renova0on C omplying with a Government order to vacate O ccupancy condi0oned on employment (90 day non-renewal no0ce w ithout just caus e removed) Waiver is not allowed by a tenant to waive their rights under the new ordinance. Private E nforcement – A tenant or former tenant of an affordable housing united harmed by an owner in viola0on of this ordinance may bring and ac0on again the owner in district court. Require property managers to track and report to the city any non-renewals of leas es, and the reason for the ac0on. Added Separability and Severability statement Background City staff have had multiple discussions with the City C ouncil relating to af f ordable housing policies and programs. T he City is currently working with the C enter for Urban and Regional Affairs (C UR A ) and R esearch in A ction (R I A ) on a citywide housing study. T hat work has completed its engagement phase, and the Housing A dvisory C ouncil is being reconvened to begin reviewing that work and identif ying policy recommendations for the C ity. T he housing study is anticipated to be completed in early 2022. T he deliverables from the study will be used to complete a Housing P olicy A ction Plan to address the housing priorities in the city. Staff is anticipating moving forward with programs and polices based on the results of that study. However, while that work is wrapping up, B rooklyn Center and the Twin Cities region are continuing to experience ongoing and extreme low vacancy rates. According to a recent 2020 C ensus Report (https://www.census.gov/library/stories/2021/08/united-states-housing-vacancy-rate-declined-in- past-decade.html), Minneapolis has the lowest vacancy rate among the 30 largest U.S. cities. I n addition to a significant and sustained housing shortage, the state legislature recently repealed the eviction moratorium. The state has created an of f -ramp process to step back from the moratorium, but already B rooklyn Center has seen increased calls about evictions, and is seeing an increasednumber of f ilings. W ith the lifting of the eviction moratorium, landlords can once again get rid of unwanted tenants through non-renewals, avoiding the eviction process altogether. S taff has been meeting regularly with residents to talk about issues related to tenant protections and to understand the concerns and increased issues they are f acing as a result of compounding regional and national housing shortage trends. A s a result of extensive input from community, S taff have been working with the City A ttorney’s office to draf t an ordinance relating to tenant protections. T his ordinance was to include multiple areas of concerns from tenants. · J ust Cause Non-renewal · P re-eviction Notices · Maintenance Fees · Damage Deposits · Material changes to the lease · Discrimination relating to public assistance status B ased on the current low vacancy rates and the urgency created by the phasing out of the E viction Moratorium, staff thought it to be necessary to expedite the ordinance relating specif ically to items addressing evictions and non-renewals. Putting anti-displacement measures into ef f ect sooner rather than later is intended to get ahead of a growing problem, and provide renters with more leverage in negotiations with landlords. Housing and the policy issues related to housing have become some of the most pressing and important matters facing communities today. F or most suburban communities, housing comprises a significant majority of a cities land use and tax base. Maintaining and preserving a safe, quality, and desirable housing stock is critical to a community's long term economic health and resiliency. Further, a diverse housing stock which of f ers a wide range of housing choices and price points ensures that a community can be resilient through economic ups and downs as well as provide housing options f or a diverse population throughout their lives. I n addition to maintaining a quality and diverse supply of housing, communities are more and more becoming f ocused on concerns regarding livability and accessibility of housing. Brooklyn Center’s Current Rental Housing The result of the regional trends facing the Twin C ities are being felt in B rooklyn C enter. Vacancy rates in the community remain lower than the regional average, hovering around 2 percent. T his is common in communities with more affordable rental units. T hirty-seven percent of Brooklyn Center's housing stock is comprised of rental units. Nearly 100 percent of the multi-f amily housing in B rooklyn Center are one and two bedroom units built between 1961 and 1971, and nearly all of it is naturally occurring affordable housing (NO A H). Average rents in B rooklyn Center are naturally occurring affordable because the market rents, based on the age and condition of the units make them af f ordable at around 50 percent A MI in the metropolitan area. Rents in B rooklyn C enter are lower than the regional average. W hile NO A H properties are affordable, they can be at risk of being lost as market demand increases and rents continue to go up. T hey can also experience disinvestment over time, causing deterioration, loss of value, and most importantly poor quality or unsafe living situations if they are not properly inspected and maintained. The City's 2040 Comprehensive Plan identifies several broad housing goals 2040 Housing & Neighborhood Goals: P romote a diverse housing stock that provides safe, stable, and accessible housing options to all of B rooklyn Center’s residents. Recognize and identif y ways to match B rooklyn Center’s housing with the C ity’s changing demographics. E xplore opportunities to improve the C ity’s housing policies and ordinances to make them more responsive to current and future residents. Maintain the existing housing stock in primarily single-family neighborhoods through proper ordinances, incentive programs and enforcement. E xplore opportunities to incorporate new af f ordable housing into redevelopment areas that promote safe, secure and economically diverse neighborhoods. I n addition to these goals, the 2040 Comprehensive P lan identifies implementation strategies as well as resources and tools for achieving its housing goals. B udget I ssues: There are no budgetary issues to cons ider at this 0me. I nclusive C ommunity Engagement: S taff has been working clos ely w ith hous ing advocacy groups, and met regularly with residents to gather informa0on regarding the need for this ordinance. S taff held an A R M Mee0ng on J anuary 6, 2022 at city hall. A ll licens ed landlords/property ow ners w ere invited to a<end. Feedback w as provided and a s ummary is a<ached. A dis cus s ing was held with advocacy groups and rental landlords on J anuary 12th, 2022. A s ummary of that discussion is a<ached. A nracist/Equity Policy Effect: Renters in Brooklyn C enter are dis propor0onately more likely to be people of color than home ow ners . O ver 50 percent of Brooklyn Center renters pay more than 30% of their incomes on rent and are cons idered low income. L ow income renters have the fewes t hous ing choices and are more likely to experience retalia0on by landlords , evic0ons and displacement. The purpos e of this ordinance is to provide protec0ons for primarily low -income and renters of color in Brooklyn Center. S trategic Priories and Values: S afe, S ecure, S table C ommunity AT TA C H M E N TS : D escrip0on U pload D ate Type Res olu0on 2/22/2022 Resolu0on Le<er Tenant P rotec0on O rdinance 2/22/2022 O rdinance Tenant P rotec0on O rdinance - Redlined Version 2/22/2022 Backup M aterial 10-19-2021 D ra@ H ousing Commission M inutes 10/25/2021 Backup M aterial 2-18-2022 D ra@ H ousing Commission M inutes 2/18/2022 Backup M aterial J anuary 12 Joint M ee0ng Recap 1/14/2022 Backup M aterial J anuary 6 A R M Mee0ng Recap 1/18/2022 Backup M aterial Member introduced the following resolution and moved its adoption: RESOLUTION NO. 2022-____ CITY OF BROOKLYN CENTER, MINNESOTA A RESOLUTION APPROVING THE SECOND READING OF AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCES REGARDING TENANT PROTECTION AND SUMMARY PUBLICATION OF THE ORDINANCE WHEREAS, the City of Brooklyn Center (“City”) previously amended the City Code to establish certain protections for tenants of affordable housing units and now desires to expand those protections; and WHEREAS, City staff developed a proposed ordinance titled “An Ordinance Amending Chapter 12 of the City Code of Ordinances Regarding Tenant Protections” (“Ordinance”), which amends Sections 12-201, 12-912D and 12-1401 of the City Code; and WHEREAS, the City Council discussed this issue at several work sessions and the proposed Ordinance was presented to the City Council to conduct a first reading on November 8, 2021 in accordance with Section 3.04 of the City Charter; and WHEREAS, the proposed Ordinance was presented to the City Council to conduct a public hearing and a second reading on December 13, 2021 in accordance with Section 3.04 of the City Charter; and WHEREAS, the City Council continued the second reading from December 13, 2021 to February 28, 2022, and the City Council acted at its meeting on February 28, 2022 to adopt the above-referenced Ordinance; and WHEREAS, Minnesota Statutes, section 412.191, subdivision 4 allows publication of adopted ordinances by title and summary in the case of lengthy ordinances or those containing maps or charts; and WHEREAS, the City Council determines publishing the entire text of the Ordinance is not in the best interests of the City as the Ordinance is readily available to the public on the City’s website and by contacting City Hall; and WHEREAS, the City Council determines the following summary clearly informs the public of the intent of Ordinance and where to obtain a copy of the full text. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn Center as follows: 1. A second reading has been conducted and the Ordinance is hereby adopted. 2. The City Clerk is hereby authorized and directed to publish the following notice and summary of the Ordinance, which is hereby approved, once in the City’s official newspaper: City of Brooklyn Center AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCES REGARDING TENANT PROTECTION Please take notice that the City Council of the City of Brooklyn Center has adopted an ordinance to amend Chapter 12 of the City Code by amending Section 12- 912D to expand the protections provided to tenants of affordable housing units. The ordinance establishes new requirements for landlords to provide tenants a notice at least 30 days before filing an eviction action, to provide notice explaining the basis of a just cause nonrenewal of a lease, and to provide for filing a private enforcement action in district court for a violation of the tenant protections under the section, including the seeking of an award of attorney’s fees. A copy of the full ordinance is available on the City’s website. 3. City staff and consultants are authorized to take such other actions as may be needed to incorporate the Ordinance into the City Code and to otherwise carry out the intent of this Resolution. February 28, 2022 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 1 CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 13th day of December, 2021, at 7:00 p.m. or as soon thereafter as the matter may be heard to consider an ordinance related to tenant protections. City Council meetings are being conducted by electronic means under Minnesota Statutes, section 13D.021 and information on how to connect to the meeting is provided on the City’s website. Please notify the City Clerk at 763-569-3306 if there are any questions about how to connect to the meeting. ORDINANCE NO. ________ AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCES REGARDING TENANT PROTECTION THE CITY OF BROOKLYN CENTER DOES ORDAIN: Article I. Legislative Findings. The City Council of the City of Brooklyn Center hereby finds and determines as follows: a. Tenants of affordable housing units have an income of 80% or less, and in some case much less, of the area median income and so have few resources to fight predatory practices, unjustified repair fees, retaliation, or other practices that exploit tenants within affordable housing buildings; b. Vacancy rates in the City, at approximately 2%, are very low and are even lower than the Twin Cities regional average; c. In addition to a significant and sustained housing shortage, the residential eviction moratorium enacted in Minnesota in response to the COVID-19 pandemic has nearly been entirely phased out, and with only very limited exceptions, tenants are able to be evicted; d. The City Council regularly receives complaints at its meetings from residents of affordable housing units regarding how they are treated by the owners and the resulting negative emotional and financial impacts of those interactions; e. The City's 2040 Comprehensive Plan identifies several broad housing goals, including (1) promoting a diverse housing stock that provides safe, stable, and accessible housing option to all of the City’s residents, (2) recognition and identification of ways to match the City’s housing with the City’s changing demographics, (3) exploring opportunities to improve the City’s housing policies and ordinances to make them more responsive to current and future residents, (4) maintaining the existing housing stock in primarily single-family neighborhoods through proper ordinances, incentive programs and enforcement, and (5) exploring opportunities to incorporate new affordable housing into redevelopment areas that promote safe, secure and economically diverse neighborhoods; 2 f. In addition to these goals, the 2040 Comprehensive Plan identifies implementation strategies as well as resources and tools for achieving its housing goals; g. The City Council previously adopted Section 12-912D to establish certain tenant protections for those living within affordable housing units as an initial step to address the exploitation of these tenants, and the City is currently working with the Center for Urban and Regional Affairs and Research in Action on a citywide housing study; h. However, in light of the current housing shortage, the reversal of the eviction moratorium, and in response to complaints from tenants of affordable housing units in the City, the City Council determines it is necessary to expand the initial protections in order to promote housing stability and protect the health, safety, and welfare of those living within affordable housing units; and i. The tenant protections adopted as part of Section 12-912D are intended to be part of the health and safety covenants in Minnesota Statutes, section 504B.161, subdivision 1(a)(4) and as additional conditions provided for by ordinance as acknowledged in subdivision 4 of the same statute. Article II. Brooklyn Center City Code, Section 12-201 is amended by adding the following definition and renumbering the subsequent definitions as needed: __. Just Cause – any of the bases listed under Section 12-912D(5) upon which an owner of an affordable housing building may terminate tenancy. Article III. Brooklyn Center City Code, Section 12-912D is amended by adding subsections 12- 912D(4), 12-912D(5), and 12-912D(6) as follows, and renumbering the subsequent subsections as needed: 4. Pre-Eviction Filing Notice. Except as provided otherwise in this subsection, an owner of an affordable housing unit shall provide at least 30 days’ written notice to a tenant prior to filing an eviction action on the basis of either: (a) an alleged non-payment of rent; or (b) an alleged material breach of a lease. a. Notices for Non-payment of Rent. For an allegation of any non-payment of rent, the notice shall, at a minimum, include the following information: (1) The name, mailing address, and telephone number of the person authorized to receive rent and fees on behalf of the owner; (2) The total amount of money due and owing to the owner by the tenant; (3) A specific accounting of the money due and owing to the owner by the tenant, including any past due rents, any late fees, and any other charges; and 3 (4) The deadline by which the total amount due and owing to the owner by the tenant shall be paid to avoid an eviction action, which shall be no earlier than 30 days from the date on which the notice is delivered. b. Notices for Material Breach of a Lease. For an allegation of a material breach of a lease, the notice shall, at a minimum, include the following information: (1) The name, mailing address, and telephone number of the owner; (2) A description of the specific conduct that the owner alleges is a violation of the lease, including the dates of the violations and the persons who committed the alleged violations; (3) Identification of the specific clause of the lease alleged to have been violated; (4) Notification that the tenant has the right to correct the alleged breach; (5) Notification of how the tenant may correct the alleged breach; (6) The deadline by which the alleged breach shall be corrected to avoid an eviction action, which shall be no earlier than 30 days from the date on which the notice is delivered; and (7) A copy of the lease attached to the notice. c. Exception for Expedited Eviction Actions. For an expedited eviction action filed pursuant to Minnesota Statutes, section 504B.321, subdivision 2, the owner shall provide the notice required by Section 12-912D(4)(d) at least three days in advance of filing the eviction action. d. Additional Notice Requirements. All notices under this subsection shall also include the following information: (1) Notification that the tenant may be evicted if they do not pay the past due rent or correct the alleged breach of lease by the deadline, as applicable; (2) Information about accessing rental assistance by calling 211 or visiting https://www.211unitedway.org/; and (3) Information about accessing legal help by visiting the Law Help Website at https://www.lawhelpmn.org/. e. Delivery of Notice. The owner, or an agent for the owner, shall deliver any notice required by this subsection personally or by first-class mail to the address of the affordable housing unit. Such notice may, in addition to but not in place of personal 4 delivery or delivery by first-class mail, be delivered to any email or other electronic means to the tenant at the tenant’s email address or electronic account. f. Enforcement. In addition to any other remedy available at equity or law, failure to comply with the provisions of this subsection may result in adverse rental license actions, the imposition of administrative fines, or other penalties as provided in law. g. Waiver Not Allowed. The parties to a written or oral lease of an affordable housing unit shall not waive or modify the requirements imposed by this subsection. Any such waiver provision that may exist in a lease is not enforceable. 5. Just Cause Notice of Nonrenewal of Lease to Tenants. a. Just Cause Notice. An owner of an affordable housing unit shall not issue a notice of nonrenewal of tenancy, refuse to renew, or issue a notice to quit unless the owner is able to establish one or more of the following grounds for such action: (1) Non-payment of Rent. The tenant fails to pay all monies owed to an owner after receiving a written notice of non-payment from the owner; (2) Material Non-Compliance. The tenant fails to cure a material breach of the lease after receiving a written notice from the owner; (3) Refusal to Renew. The tenant refuses to renew or extend the lease after the owner requests in writing that the tenant do so; (4) Occupancy by Property Owner or Family Member. The owner, in good faith, seeks to recover possession of the unit so that the owner or a family member may occupy the unit as that person’s principal residence; (5) Building Demolishment or Conversion. The owner either: (i) Elects to demolish the building in which the affordable housing unit is located, convert it to a cooperative, provided the owner complies with the provisions of Minnesota Statutes, chapter 515B, or convert it to non-residential use, provided that the owner shall obtain all permits necessary to demolish or change the use before terminating any tenancy; (ii) The owner seeks, in good faith, to recover the unit to sell it in accordance with a condominium conversion, provided the owner complies with the provisions of Minnesota Statutes, chapter 515B; or (iii) The unit is being converted to a unit subsidized under a local, state, or federal housing program and the tenant does not qualify to rent the unit under that program; 5 (6) Rehabilitation and Renovation. The owner seeks, in good faith, to recover possession of the unit that will render the unit uninhabitable for the duration of rehabilitation or renovation; (7) Complying with a Government Order to Vacate. The owner is complying with a government agency’s order to vacate, order to abate, or any other order that necessitates the vacating of the unit as a result of a violation of City Code or any other provision of law including, but not limited to, Section 12-911 related to conduct, disorderly activities, or nuisances; or (8) Occupancy Conditioned on Employment. The tenant’s occupancy is conditioned upon employment on the property and the employment relationship is terminated. b. Owner Responsibilities. Any lease for an affordable housing unit shall include just cause notice language as follows: “The landlord under this lease shall not unilaterally terminate or attempt to terminate the tenancy of any tenant unless the landlord can prove that just cause exists. The reasons for termination or nonrenewal of tenancy listed in the City of Brooklyn Center’s Just Cause Notice (Section 12-912D(5)), and no others, shall constitute just cause under this provision.” c. Nonrenewal Notice Requirements. An owner providing a notice of nonrenewal of a tenancy to a tenant of an affordable housing unit shall: (1) comply with all notice requirements under the lease and applicable law; (2) include in such notice a written statement of the reasons for the nonrenewal and the facts in support of those reasons, and (3) maintain documentation totaling the number of notices of nonrenewal issued by the owner. d. City Right to Inspection of Nonrenewal Notices. Within ten days of any request by the City, the owner of an affordable housing building shall provide to the City copies of its documentation totaling the number of notices of nonrenewal issued by the owner. e. Application. This Section applies to every lease, written or oral, for an affordable housing unit. f. Waiver Not Allowed. The parties to a written or oral lease of an affordable housing unit shall not waive or modify the requirements imposed by this subsection. Any such waiver provision that may exist in a lease is not enforceable. 6. Private Enforcement of Tenant Protection Ordinance. Any tenant or former tenant of an affordable housing unit harmed by an owner’s violation of this Section 12-912D may bring an action against the owner in district court. Such person shall be entitled to all remedies available at law or in equity including, but not limited to, damages and injunctive relief. Any plaintiff that prevails in such action may be awarded reasonable attorney’s fees and expenses. 6 Article IV. Brooklyn Center City Code, Section 12-1401 is amended by adding the double- underlined language and deleting the stricken language as follows: Section 12-1401. SEPARABILITY. Every Section, provision, or part of this Ordinance Chapter is declared separable from every other Section, provision, or part to the extent that if any Section, provision or part of the Chapter shall be held invalid, it shall not invalidate any other Section, provision or part thereof. Article V. Severability. Should any section or part of this ordinance be declared by a court of competent jurisdiction to be invalid, such decision will not affect the validity of the ordinance as a whole or any part other than the part declared invalid. Article VI. Effective Date. This ordinance shall become effective after adoption and upon thirty days following its legal publication. Adopted this 28th day of February, 2022. _______________________________ Mike Elliott, Mayor ATTEST: _________________________ City Clerk Date of Publication Effective Date (Strikeout indicates matter to be deleted, double underline indicates new matter.) CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 13th day of December, 2021, at 7:00 p.m. or as soon thereafter as the matter may be heard to consider an ordinance related to tenant protections. City Council meetings are being conducted by electronic means under Minnesota Statutes, section 13D.021 and information on how to connect to the meeting is provided on the City’s website. Please notify the City Clerk at 763-569-3306 if there are any questions about how to connect to the meeting. ORDINANCE NO. ________ AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCES REGARDING TENANT PROTECTION THE CITY OF BROOKLYN CENTER DOES ORDAIN: Article I.Legislative Findings. The City Council of the City of Brooklyn Center hereby finds and determines as follows: Tenants of affordable housing units have an income of 80% or less, and in some case mucha. less, of the area median income and so have few resources to fight predatory practices, unjustified repair fees, retaliation, or other practices that exploit tenants within affordable housing buildings; Vacancy rates in the City, at approximately 2%, are very low and are even lower than theb. Twin Cities regional average; In addition to a significant and sustained housing shortage, the residential evictionc. moratorium enacted in Minnesota in response to the COVID-19 pandemic has nearly been entirely phased out, and with only very limited exceptions, tenants are able to be evicted; b.The City Council regularly receives complaints at its meetings from residents of affordabled. housing units regarding how they are treated by the owners and the resulting negative emotional and financial impacts of those interactions; The City's 2040 Comprehensive Plan identifies several broad housing goals, including (1)e. promoting a diverse housing stock that provides safe, stable, and accessible housing option to all of the City’s residents, (2) recognition and identification of ways to match the City’s housing with the City’s changing demographics, (3) exploring opportunities to improve the City’s housing policies and ordinances to make them more responsive to current and future residents, (4) maintaining the existing housing stock in primarily single-family neighborhoods through proper ordinances, incentive programs and enforcement, and (5) exploring opportunities to incorporate new affordable housing into redevelopment areas that promote safe, secure and economically diverse neighborhoods; 1 In addition to these goals, the 2040 Comprehensive Plan identifies implementation strategiesf. as well as resources and tools for achieving its housing goals; c.The City Council previously adopted Section 12-912D to establish certain tenantg. protections for those living within affordable housing units as an initial step to address the exploitation of these tenants, and the City is currently working with the Center for Urban and Regional Affairs and Research in Action on a citywide housing study; d. TheHowever, in light of the current housing shortage, the reversal of the evictionh. moratorium, and in response to complaints from tenants of affordable housing units in the City, the City Council determines it is necessary to expand thosethe initial protections in order to promote housing stability and protect the health, safety, and welfare of those living within affordable housing units; and e.The tenant protections adopted as part of Section 12-912D are intended to be part of thei. health and safety covenants in Minnesota Statutes, section 504B.161, subdivision 1(a)(4) and as additional conditions provided for by ordinance as acknowledged in subdivision 4 of the same statute. Article II. Brooklyn Center City Code, Section 12-201 is amended by adding the following definition and renumbering the subsequent definitions as needed: __.Just Cause – any of the bases listed under Section 12-912D(5) upon which an owner of an affordable housing building may terminate tenancy. Article III. Brooklyn Center City Code, Section 12-912D is amended by adding subsections 12-912D(4), 12-912D(5), and 12-912D(6) as follows, and renumbering the subsequent subsections as needed: 4.Pre-Eviction Filing Notice. Except as provided otherwise in this subsection, an owner of an affordable housing unit shall provide at least 30 days’ written notice to a tenant prior to filing an eviction action on the basis of either: (a) an alleged non-payment of rent; or (b) an alleged material breach of a lease. Notices for Non-payment of Rent. For an allegation of any non-payment of rent, thea. notice shall, at a minimum, include the following information: The name, mailing address, and telephone number of the person authorized to(1) receive rent and fees on behalf of the owner; The total amount of money due and owing to the owner by the tenant;(2) A specific accounting of the money due and owing to the owner by the tenant,(3) including any past due rents, any late fees, and any other charges; and 2 The deadline by which the total amount due and owing to the owner by the(4) tenant shall be paid to avoid an eviction action, which shall be no earlier than 30 days from the date on which the notice is delivered. Notices for Material Breach of a Lease. For an allegation of a material breach of ab. lease, the notice shall, at a minimum, include the following information: The name, mailing address, and telephone number of the owner;(1) A description of the specific conduct that the owner alleges is a violation of the(2) lease, including the dates of the violations and the persons who committed the alleged violations; Identification of the specific clause of the lease alleged to have been violated; (3) Notification that the tenant has the right to correct the alleged breach; (4) Notification of how the tenant may correct the alleged breach; (5) The deadline by which the alleged breach shall be corrected to avoid an eviction(6) action, which shall be no earlier than 30 days from the date on which the notice is delivered; and A copy of the lease attached to the notice.(7) Exception for Expedited Eviction Actions. For an expedited eviction action filedc. pursuant to Minnesota Statutes, section 504B.321, subdivision 2, the owner shall provide the notice required by Section 12-912D(34)(d) at least three days in advance of filing the eviction action. Additional Notice Requirements.All notices under this subsection shall also included. the following information: Notification that the tenant may be evicted if they do not pay the past due rent or(1) correct the alleged breach of lease by the deadline, as applicable; Information about accessing rental assistance by calling 211 or visiting(2) https://www.211unitedway.org/; and Information about accessing legal help by visiting the Law Help Website at(3) https://www.lawhelpmn.org/. Delivery of Notice. The owner, or an agent for the owner, shall deliver any noticee. required by this subsection personally or by first-class mail to the address of the affordable housing unit. Such notice may, in addition to but not in place of personal 3 delivery or delivery by first-class mail, be delivered to any email or other electronic means to the tenant at the tenant’s email address or electronic account. Enforcement. In addition to any other remedy available at equity or law, failure tof. comply with the provisions of this subsection may result in adverse rental license actions, the imposition of administrative fines, or other penalties as provided in law. Waiver Not Allowed. The parties to a written or oral lease of an affordable housingg. unit shall not waive or modify the requirements imposed by this subsection. Any such waiver provision that may exist in a lease is not enforceable. 5.Just Cause Notice of Nonrenewal of Lease to Tenants. Just Cause Notice. An owner of an affordable housing unit shall not issue a notice ofa. nonrenewal of tenancy, refuse to renew, or issue a notice to quit unless the owner is able to establish one or more of the following grounds for such action: Non-payment of Rent. The tenant fails to pay all monies owed to an owner after(1) receiving a written notice of non-payment from the owner; Material Non-Compliance. The tenant fails to cure a material breach of the lease after(2) receiving a written notice from the owner; Refusal to Renew. The tenant refuses to renew or extend the lease after the owner(3) requests in writing that the tenant do so; Occupancy by Property Owner or Family Member. The owner, in good faith, seeks to(4) recover possession of the unit so that the owner or a family member may occupy the unit as that person’s principal residence; Building Demolishment or Conversion. The owner either:(5) Elects to demolish the building in which the affordable housing unit is located,(i) convert it to a cooperative, provided the owner complies with the provisions of Minnesota Statutes, chapter 515B, or convert it to non-residential use, provided that the owner shall obtain all permits necessary to demolish or change the use before terminating any tenancy; The owner seeks, in good faith, to recover the unit to sell it in accordance with a(ii) condominium conversion, provided the owner complies with the provisions of Minnesota Statutes, chapter 515B; or The unit is being converted to a unit subsidized under a local, state, or federal(iii) housing program and the tenant does not qualify to rent the unit under that program; 4 Rehabilitation and Renovation. The owner seeks, in good faith, to recover possession(6) of the unit that will render the unit uninhabitable for the duration of rehabilitation or renovation; Complying with a Government Order to Vacate. The owner is complying with a(7) government agency’s order to vacate, order to abate, or any other order that necessitates the vacating of the unit as a result of a violation of City Code or any other provision of law including, but not limited to, Section 12-911 related to conduct, disorderly activities, or nuisances; or Occupancy Conditioned on Employment. The tenant’s occupancy is conditioned upon(8) employment on the property and the employment relationship is terminated. Owner Responsibilities. Any lease for an affordable housing unit shall include justb. cause notice language as follows: “The landlord under this lease shall not unilaterally terminate or attempt to terminate the tenancy of any tenant unless the landlord can prove that just cause exists. The reasons for termination or nonrenewal of tenancy listed in the City of Brooklyn Center’s Just Cause Notice (Section 12-912D(5)), and no others, shall constitute just cause under this provision.” Nonrenewal Notice Requirements. An owner providing a notice of nonrenewal of ac. tenancy to a tenant of an affordable housing unit shall: (1) comply with all notice requirements under the lease and applicable law;and (2)include in such notice a written statement of the reasons for the nonrenewal and the facts in support of those reasons, and (3) maintain documentation totaling the number of notices of nonrenewal issued by the owner. City Right to Inspection of Nonrenewal Notices. Within ten days of any request byd. the City, the owner of an affordable housing building shall provide to the City copies of its documentation totaling the number of notices of nonrenewal issued by the owner. d.Application. This Section applies to every lease, written or oral, for an affordablee. housing unit. e.Waiver Not Allowed. The parties to a written or oral lease of an affordable housingf. unit shall not waive or modify the requirements imposed by this subsection. Any such waiver provision that may exist in a lease is not enforceable. 6.Private Enforcement of Tenant Protection Ordinance.Any tenant or former tenant of an affordable housing unit harmed by an owner’s violation of this Section 12-912D may bring an action against the owner in district court. Such person shall be entitled to all remedies available at law or in equity including, but not limited to, damages and injunctive relief. 5 Any plaintiff that prevails in such action may be awarded reasonable attorney’s fees and expenses. Article IV.Brooklyn Center City Code, Section 12-1401 is amended by adding the double-underlined language and deleting the stricken language as follows: Section 12-1401. SEPARABILITY. Every Section, provision, or part of this Ordinance Chapter is declared separable from every other Section, provision, or part to the extent that if any Section, provision or part of the Chapter shall be held invalid, it shall not invalidate any other Section, provision or part thereof. Article V.Severability. Should any section or part of this ordinance be declared by a court of competent jurisdiction to be invalid, such decision will not affect the validity of the ordinance as a whole or any part other than the part declared invalid. Article VI.Effective Date. This ordinance shall become effective after adoption and upon thirty days following its legal publication. Adopted this 1328th day of DecemberFebruary, 20212022. _______________________________ Mike Elliott, Mayor ATTEST: _________________________ City Clerk Date of Publication Effective Date (Strikeout indicates matter to be deleted, double underline indicates new matter.) 6 Page 1 MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION OCTOBER 19, 2021 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Goodell at 7:00 p.m. The meeting was conducted virtually. MEETING ATTENDEES Chair Mark Goodell Commissioner Paul Oman Commissioner Michael Donnelly Commissioner Zarita Hester Commissioner Johnson Yang City Staff present: Staff Liaison Jesse Anderson, Community Development Director Meg Beekman, City Attorney Sam Ketchum, Planning Staff Olivia Boerschinger, and City Council Liaison Kris Lawrence-Anderson. Also present: Anab; Agnes; Leah DeGrazia; Lana Hamilton; Victoria Karmo; Madeleine Lerner, ACER; Fadumo Mohamed; Lovetee Polahn; Eric Hauge, HOME Line; Samuel Spaid, HOME Line; Tally; Shana Tomenes; Marie Vincent. APPROVAL OF AGENDA There was a motion by Commissioner Oman and seconded by Commissioner Donnelly to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES There was a motion by Commissioner Oman and seconded by Commissioner Donnelly to approve the minutes of the Housing Commission meeting on August 18, 2021. The motion passed. TENANT PROTECTION ORDINANCE DISCUSSION AND DRAFT ORDINANCE REVIEW Staff Liaison Jesse Anderson gave an overview of the proposed tenant protection Ordinance He added the City Council has held multiple work sessions regarding housing programs, and the City is currently undergoing a City-wide housing study, which will provide recommendations for City housing policies, housing priorities, and a housing action plan. Mr. Anderson stated there is urgency related to this issue created by the phasing out of the eviction moratorium as well as low vacancy rates. The proposed Ordinance addresses evictions, requiring a 30-day written notice as well as preventing landlords or property owners from not renewing an existing tenant lease without cause. He added some just cause reasons for non-renewal, as listed in the proposed Ordinance, are non-payment of rent; material non-compliance; refusal to renew; Page 2 conversion, demolition, rehab or renovation; compliance with a government order; or occupancy conditional upon employment. He noted the Ordinance also addresses evictions and non-renewal and provides support for tenants who have just cause to bring action against landlords. Mr. Anderson stated City Staff received feedback and recommendations from ACER, HOME Line and the Housing Justice Center to expedite the proposed Ordinance due to urgency related to evictions and non-renewals. He added representatives of community organizations have joined tonight’s meeting. He noted the proposed Ordinance will likely have its first reading at the November 8, 2021 City Council meeting, and second reading and public hearing scheduled for the City Council’s December 13, 2021 meeting, with the Ordinance going into effect in January 2022. Chair Goodell requested feedback and comments from the Housing Commissioners and guests. Commissioner Oman requested clarification regarding the timing of the Ordinance and actions that can be brought against landlords for something that has already happened. Mr. Anderson stated the Ordinance would go into effect in January 2022, so any violations could not have happened before that. City Attorney Sam Ketchum agreed with Mr. Anderson's assessment. He added the enforcement provisions would apply to evictions after the Ordinance goes into effect. A resident requested clarification regarding what control renters have with regard to friendly rental agreements. Chair Goodell stated he believes there has been some investigation into concerns about rental agreements, in terms of changes to a renewal or other limitations. Mr. Anderson stated the proposed Ordinance amendment relates to non-renewals and evictions. He added there are some areas of the Ordinance that have not been brought forward yet, that could provide limitations on changes to lease agreements, which may be discussed under a future Ordinance amendment. The resident stated he has been living at Georgetown for 11 years, and management does whatever they want, and imposes restrictions. He added he got a letter that they will not renew his lease and put him on a month-to-month lease. He added he is concerned and hopes the Commission can make some changes. He asked whether the Commission could go into people’s homes and find out how they live and how they are being treated. Chair Goodell thanked the resident for his comments. He added the Commission is interested in hearing about the issue of lease agreements, although tonight’s amendment relates to evictions and non-renewals. He added City Staff is researching these other important issues, and he appreciates the resident bringing his concerns to the Housing Commission’s attention. A resident, Tally, stated retaliation by landlords at Georgetown is not fair to tenants, and they are not allowed to have visitors. She added they are not being treated as though Georgetown is their home. She noted they have been towing cars and not giving any information about restrictions or when they can park their cars. Page 3 Another resident agreed, stating people do not speak up because they are afraid that they will get an eviction notice. She added she was given an eviction notice because she did not apply for rental assistance. She noted she told them her application was pending. Tally stated it is not fair to Georgetown residents. She said the landlord does not fix anything, but no one asks questions or asks for help. She added they are taking cars. Lovetee stated she has been a Georgetown tenant for 2-3 years. She added she is concerned about tenant protections. She asked what it will protect. She noted she has 6 living children , and the Ordinance cannot protect her from being evicted. She added her lease has not been renewed for no reason, and the landlord gave her 3 months to find a new home. Lovetee stated she went to the office to ask about why her lease cannot be renewed, and she was told she could not enter the office and she was not welcome. She added she is a tenant, and they have no reason for not renewing her lease. She noted this is an emergency and she asked the City for help. She noted the Ordinance needs to be passed now so their leases can be renewed. Lovetee tasked whether something can be added to the Ordinance about lease renewal. She added the only reason a lease should not be renewed is if a tenant does something crazy. She noted landlords should not be able to renew leases without a reason. Chair Goodell stated there are some serious issues with renewal of leases and evictions, and it is his understanding that this Ordinance amendment will address both lease renewals and evictions. He added the Ordinance would put restrictions on evictions and eviction notices, and a limit list of reasons why a lease cannot be renewed. He noted the Ordinance will directly affect the residents’ situations when it is passed. Chair Goodell stated the Housing Commission will not be passing the Ordinance, but rather making a recommendation to the City Council. He added the Commission is a board of volunteer citizens, and their job is to provide feedback and recommendations to the City Council. He noted he truly appreciates everyone’s comments and feedback. Sam Spaid, staff attorney for HOME Line, stated his organization supports the proposed Ordinance. HOME Line is a state-wide nonprofit organization providing free, confidential legal advice to residential tenants in Minnesota. He added the personal statements that are being expressed tonight are the same things that HOME Line staff hear on a daily basis from tenants in Minnesota. He noted the proposed Ordinance will address many of these issues – preventing non- renewal without cause and giving tenants time to solve the problem when there are eviction threats, and to seek legal advice to protect their interests. Mr. Spaid stated there are tenant protections under State law, but they fall short of providing solutions and do not help tenants as much as they should. He added tenant protections are extremely important especially now that Covid restrictions are being lifted. Madeleine Lerner, Organizing Manager at ACER, thanked the Housing Commission for the opportunity to address this issue. She added the proposed Ordinance is a critical first step in Page 4 instituting more comprehensive tenant protections in the City of Brooklyn Center. She n oted ACER staff continuously hears these same stories about evictions without notice, no direct contact from landlords, and insufficient notice period for eviction or non-renewal. Commissioner Zarita Hester stated she fully supports the Ordinance as there should be protection for renters, because there is protection for landlords. She asked whether the Ordinance addresses non-renewal of a lease if the property changes hands. She asked whether the Ordinance addresses leases that are reduced to month-to-month leases. Mr. Anderson stated there is an existing Ordinance on the books adopted 2 years ago that has a notification requirement of 120 days before the landlord can make any changes to a lease. Mr. Anderson stated the issue of month-to-month leases is not addressed and could be reviewed in a different revision of this Ordinance, and a future policy change. A resident asked whether there must be a specific cause for a landlord to change to a month -to- month lease. He added landlords are using month-to-month leases as a form of retaliation. Mr. Anderson stated just cause for non-renewals is included as a requirement in the Ordinance. The proposed Ordinance will make it more enforceable. Marie Vincent stated she has lived in Georgetown for 2 years. The lease renewal and eviction issues are very serious, and reasons for eviction should be revealed to the tenant. One neighbor stated that she could not go to the office and speak her mind because she was afraid of being evicted. Brooklyn Center should be a free place for people to live and speak their minds, but they are not able to do so at Georgetown. She asked for the Commission’s help with these issues. Chair Goodell stated the proposed Ordinance includes a limited list of items that could be a reason for eviction or non-renewal of lease, but notice needs to be given to the resident, and there must be facts to support it. Tally asked if the agreement could include information about when cars are going to be towed in Georgetown. She asked whether the City has anything in place for people with a low credit score to help them get a home, so they don’t have to go through this anymore. Chair Goodell stated he is unsure about the towing regulations at Georgetown. He added the proposed Ordinance being reviewed tonight does not address towing in particular. Mr. Anderson agreed, adding further discussions can be initiated with the City Attorney for this issue under future Ordinances, regarding regulations and enforcement. Mr. Anderson stated the City of Brooklyn Center has a down payment assistance program that provides up to $10,000 assistance for current Brooklyn Center renters who want to buy a home in Brooklyn Center. Chair Goodell agreed to post a link for the down payment assistance program in the chat function. Page 5 A resident asked what the Commission is doing to support townhomes and rental complexes as homes that people live in. He added people should not have their cars towed. He asked whether the Commission plans to do something to see how people are living. Chair Goodell stated he understands the resident is interested in having the Commission or City do a survey of rental properties to find out what conditions tenants are living in, and what their lives are like. He added there are concerns about towing. He noted the proposed Ordinance is related to evictions and just causes for lease changes, but there are many other areas that the City is looking at and these items can be included. Chair Goodell stated the Housing Commission is a volunteer board that makes recommendations to the City Council, with input from City Staff. He added the City will continue to look into these issues and he appreciates everyone sharing their stories and concerns. Eric Hauge, HOME Line, stated his organization has provided suggestions and recommendations regarding policies for immediate response to the end of the eviction moratorium. He added his organization hears about these kinds of issues regularly, and there has been inadequate response from the State legislature to address tenant and landlord issues. He noted HOME Line is committed to working with the City of Brooklyn Center to address these issues, recognizing that the majority of tenant/landlord law is at the State level, but cities like Brooklyn Center are taking important roles in regulating the businesses that operate in their City. Community Development Director Meg Beekman stated the City began a Housing Study in January 2021. An Advisory Council was formed, and the City contracted with CURA an d Research in Action to provide quantitative and qualitative analysis regarding housing stock and housing gaps. The Advisory Council, made up of residents, will provide recommendations focused on housing needs in the community, including anti-displacement and tenant protections, as well as housing choice and diversity. The recommendations of the Advisory Council are expected to be received by the City Council early in 2022. These recommendations will form the basis of City-wide Housing Policy Action Plan. Ms. Beekman stated tenant protection issues are important and extremely urgent, and some housing topics have been tabled until the Housing Study is completed, to form recommendations and implement solutions, so tenant protections can move forward more r apidly. She added City Staff have met with tenants of Georgetown multiple times, as well as ACER and HOME Line, to identify a broad collection of regulations pertaining to tenant protections, and to address concerns that have been voiced this evening, including repairs and maintenance, towing policies, and safety and security. Ms. Beekman stated, as part of this review, the City has looked at how other cities, particularly St. Paul, have addressed these issues. The City of St. Paul adopted a broad tenant protection Ordinance last year, which covers many of the provisions proposed in the draft Ordinance, including non-renewal without just cause. St. Paul was promptly faced with a lawsuit brought by landlords, and the city rescinded the Ordinance due to an injunction. This situation has been part of the City of Brooklyn Center’s consideration and discussions, and the provisions addressed in Page 6 the proposed Ordinance that is being reviewed tonight address urgent anti-placement concerns driven by the ending of the eviction moratorium. Ms. Beekman stated there will be many more discussions, and City Staff will continue to work with residents and community organizations. She added she wants to underscore that the City Council takes these issues very seriously and they have directed City Staff to focus on actively pursuing solutions. Chair Goodell stated, to underscore the urgency of the situation, the eviction moratorium ended on October 12, 2021. Sam Spaid, HOME Line, stated most protections ended October 12, but there is still protection for tenants who are behind on rent but have already applied for financial assistance through Rent Help. He added protection for tenants with pending applications is extended through June 2022. Meg Beekman stated these issues are not unique to Brooklyn Center. She added it has been a failing of the State legislature to leave cities to deal with these concerns. She noted no other cities have adopted a non-renewal without just cause Ordinance, and this is new territory, so the City wanted to be fairly cautious about how it is brought forward to address concerns within the authority of the City. Mr. Hauge stressed the importance of understanding that there is nothing that automatically stops an eviction from happening, which is why this Ordinance is so critically important. He added housing instability can happen even when there are protections in place. He expressed his agreement with Ms. Beekman that this is a unique and important protection that no other city in Minnesota has ever done and that the State of Minnesota has not provided support in these areas. Chair Goodell requested feedback from the Commissioners. Lovetee asked how strong the Commission is in its relationship with the City. She added the Commissioners have said they are a group of volunteers. She asked how much influence the Commission has over the City. She asked whether the City could have a meeting with landlords and tenants, to create a safe environment for renters and keep people safe in their homes. She added she wants the City to create an atmosphere in which landlords and tenants can be friendly and cooperative, so that non-renewals and evictions will stop. She noted she has lived in Brooklyn Park and Crystal where meetings were held with landlords to evaluate leases. Chair Goodell stated the Housing Commission is an advisory body comprised of citizens of Brooklyn Center, whose job it is to review issues related to housing and provide recommendations to the City Council. He added the Commission will provide a recommendation to the City Council regarding this Ordinance, and that will be part of their consideration, but the Commission does not pass Ordinances. He noted there have been questions in the past about improving relationships between landlords and tenants. Ms. Beekman stated the State law related to landlord/tenant relations is vague and untested, and what cities can and cannot do has not been addressed in State statute. She added some cities are Page 7 considering measures, including Minneapolis, which is looking into a Charter amendment via referendum that would circumvent State statute with regard to addressing these issues. She noted it is difficult to regulate mutual respect and common decency in landlord/tenant interactions, especially when there are underlyin g factors, although many landlords and property owners have positive relationships with their tenants. Ms. Beekman stated City Staff is exploring ways to clarify expectations for how residents should be treated, and what regulations are within the City’s authority to impose. She added the City does not regulate private contracts but has some leverage with rental housing licensing. She noted Type 3 and Type 4 rental license properties are required to enter into a mitigation plan, which includes demonstrating communication with tenants. Commissioner Oman stated the Ordinance should be passed as soon as possible, as it is well - written and concise, and addresses concerns raised by the community. There was a motion by Commissioner Oman and seconded by Commissioner Hester to recommend City Council approval of the Tenant Protection Ordinance. The motion passed. Chair Goodell stated he supports expediting this Ordinance as much as possible. Commissioner Donnelly asked whether the lawsuit regarding the St. Paul Ordinance affects this Ordinance in any way, and whether the City should be concerned about lawsuits. Ms. Beekman stated the City Attorney’s office drafted the proposed Ordinance and followed the proceedings in St. Paul very closely, although no decisions were made in that case. Mr. Spaid stated the proposed Ordinance is quite different from St. Paul’s Ordinance, as it focuses on two items – notice for non-renewal and evictions. He added there is always a risk for a lawsuit in this arena, but this Ordinance is taking a more targeted approach toward anti-displacement. Chair Goodell thanked everyone for their input, and for sharing their stories and concerns. He added it has been very moving and he appreciates all the comments. He noted the issue of tenant rights and protections is of primary concern to the City Council and Commissions, and there will be many more discussions on this issue. A resident thanked the Housing Commission for listening to them and expressed her appreciation for everything the City is trying to do for them. Another resident thanked the Housing Commission for listening. She added she is overwhelmed and hopeful that things will work out. She added the Commission and City Staff explained things well, and she hopes that the City will move as fast as possible so change can come, and they can be happy in their homes. Lovetee requested a recap of the timetable for the Ordinance. Mr. Anderson stated the first reading of the proposed Ordinance will be at the City Council’s November 8, 2021 meeting, at which they will call for a second reading and public hearing, to be held at the City Council’s December 13, Page 8 2021 meeting. He noted the earliest the proposed Ordinance would go into effect would be mid- January 2022. NEW NEIGHBOR WELCOME PROGRAM Chair Goodell stated there have been two deliveries of New Neighbor welcome bags since the Housing Commission’s last meeting, and they covered approximately 100 homes. He added there are 139 homes left on the list, and he would like to suggest a few weekend dates for deliveries. He noted, after the last meeting, he sent out a poll with potential dates, and he can do that again. The Commissioners agreed. City Council Liaison Kris Lawrence-Anderson requested that she be added to the email distribution list. Chair Goodell agreed. Chair Goodell thanked Commissioners Oman and Yang for delivering bags with him last time. He thanked Mr. Anderson for putting the welcome bags together. COUNCIL LIAISON REPORT City Council Liaison Lawrence-Anderson stated City Staff are updating the City calendar with links to Commission meetings. She requested that the Housing Commission meeting information be sent to City Clerk Barb Suciu to be added to the calendar. She added she would like to receive links to the Charter Commission meetings as well. City Council Liaison Lawrence-Anderson stated the City Council will be finalizing 2022 budgets at their first meeting in December. City Council Liaison Lawrence-Anderson stated the City is working to secure the safety of residents and City Staff in preparation for the trial of Kim Potter which starts on November 30, 2021. City Council Liaison Lawrence-Anderson stated she hopes to request a City Council review of the issue of solicitor’s licenses in terms of predatory practices. She added this could be related to tenant protections. Chair Goodell asked whether there has been any movement from the City Council on Commission re-appointments. He stated he received Commissioner Amdahl’s resignation recently, so there will be another opening. He added Commissioner Amdahl has been on the Housing Commission since 2008. City Council Liaison Lawrence-Anderson stated that is very sad, and she will reach out to Commissioner Amdahl. City Council Liaison Lawrence-Anderson stated the City Council reviewed several applications at our their meeting, and additional appointments will be reviewed at the next meeting in November. Page 9 Chair Goodell asked whether that will include re-appointments for Commissioners whose terms have expired. City Council Liaison Lawrence-Anderson confirmed this. CHAIRPERSONS REPORT Chair Goodell expressed his appreciation to the Commissioners at tonight’s meeting. He thanked City Staff for their hard work on the proposed Ordinance. OTHER BUSINESS There was no other business addressed by the Commission. ADJOURNMENT There was a motion by Commissioner Oman and seconded by Commissioner Yang to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:41 p.m. __________________________________ Chair Goodell 2/15/22 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION FEBRUARY 15, 2022 CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Goodell at 7:00 p.m. The meeting was conducted virtually. MEETING ATTENDEES Chair Mark Goodell Commissioner De’Ja ’Carter Commissioner Michael Donnelly Commissioner Zarita Hester Commissioner Paul Oman City Staff present: Staff Liaison Jesse Anderson, and City Council Liaison Kris Lawrence- Anderson. Also present: Adam; Alexander Koenig; Marty McDonough, MHA; Fadumo Mohamed, ACER; Lovetee Polahn. APPROVAL OF AGENDA There was a motion by Commissioner Oman and seconded by Commissioner Carter to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES There was a motion by Commissioner Oman and seconded by Commissioner Hester to approve the minutes of the Housing Commission meeting on January 18, 2022. The motion passed. VICE CHAIR ELECTION Chair Goodell explained they did not have full attendance at the least meeting, so it was decided to move the election to the February meeting. He noted the role of the Vice Chair is to run the meeting in the case the Chair is unavailable. He added people can nominate themselves or nominate another member of the Commission. Hearing no nominations, Chair Goodell stated the position would remain open for the time being. UPDATE ON TENANT PROTECTION ORDINANCE PROGRESS Staff Liaison Jesse Anderson explained the Tenant Protection Ordinance has been presented to the Council a few times. He noted the Ordinance was presented to the Commission and there was a first reading of the Ordinance in November 2021. The City Council met on December 13, 2021, and held the public hearing on this item. There was a lot of public comment at the hearing. After 2/15/22 -2- DRAFT the public hearing and Council discussion, the vote on the second reading of the ordinance was delayed until January 24, 2022. Mr. Anderson stated based on direction from the City Council in response to the public hearing, Staff held two meetings with landlords to discuss the proposed ordinance. Then based on the feedback received, and in discussions with both landlords and housing advocates, staff made three modifications to the proposed ordinance. The Council met on February 14, 2022 and requested additional feedback from the Housing Commission. Mr. Anderson stated there were three changes suggested and presented to the Council on February 14. First, there was an addition of a provision that would require property managers to track and report to the city any non-renewals of leases, and the reason for the action. Mr. Anderson stated the second change was to reduce the eviction notification period from 30 days to 14 days. The change would match Minneapolis' ordinance and would keep any actions to within a single rent cycle, which was the request of the landlords. Mr. Anderson added the last change to the Ordinance was to add a provision which would allow landlords the option of either following the non-renewal without just cause requirements in the ordinance or providing a 90-day lease termination notice without needing to give a reason. This would provide options to deal with the examples that property managers raised at the public hearing, but would still allow for a greater notice to renters than the existing 30-day notice period. Mr. Anderson noted there was an added separability and sever ability statement, which makes the Ordinance stronger legally. Mr. Anderson stated the first version has a 30-day eviction notice and only just cause non-renewal. The second version, which was the most recent version proposed to the Council, includes a 14-day eviction notice and just case non-renewal or a 90-day notice for non-renewal. Commissioner Hester asked if the 14-day notice would happen after the grace period landlords tend to give. Mr. Anderson stated the notice depends on the lease. They cannot provide notice of eviction if the tenant is not in violation of the lease. He added if the tenant wanted to avoid an eviction being filed on their record, they would have to leave within 14 days. However, if they went through eviction court, they could continue to live there through the court process. Commissioner Hester stated she has a concern with landlords who give people a grace period for late rent or for people that have to pay in increments. The Ordinance could change the landlord’s flexibility. She added there have been concerns brought by the public that the Ordinance could cause a long-term impact of increasing the rent. Mr. Anderson stated a landlord could file the notice, be it a 14-day or 30-day notice, but they would not be required to file the eviction paperwork just because they provided the tenant with notice. He added landlords have mentioned they would be less flexible with the proposed eviction notice period. 2/15/22 -3- DRAFT Commissioner Donnelly asked when an eviction goes on someone’s record. If someone is only 14 days late on rent and receives an eviction on their record, it makes it more difficult for them to obtain housing later on. Mr. Anderson stated the effect of an eviction record depends on the type of application they are using. He added the eviction record would make it more difficult for the person to find housing. Commissioner Donnelly explained he doesn’t agree with the 14-day eviction notice as that would negatively impact the renter later on. Chair Goodell stated one of the comments was that 30 days of notice is extreme. He asked what other communities have for eviction notice. Mr. Anderson stated St. Louis Park has a 7-day notice and Minneapolis has a 14-day notice for evictions. No other cities in the State have an eviction notice period. He added Community Development Director Meg Beekman mentioned pending legislation that would require a 14-day notice, but that is early on. Commissioner Donnelly asked if there is any information about the differing effects on tenants between the 7-day notice in St. Louis Park and the 14-day notice in Minneapolis. Mr. Anderson stated a Councilmember asked for Staff to reach out to Minneapolis for information on the question, but housing advocacy groups would have better information on that as they are the ones working directly with renters. Commissioner Hester noted her agreement with the 30-day filing notice component because evictions can be difficult to get expunged or wait for the eviction to leave their record after seven years. Chair Goodell asked the Commission if they were open to hearing feedback from guests. Commissioner Donnelly stated he would like to hear from guests. There were no objections from Council. Fadumo Mohamed, Housing Organizer with African Career and Education Resource (ACER), explained ACER is a housing advocacy group based in the north suburbs. She asked if they could do a round of introductions to get to know one another better. Ms. Mohamed stated ACER worked with a Brooklyn Center tenant in 2021 who had an eviction filed against even though she didn’t know what she was doing wrong. The idea of the notice period is to give tenants time to fix the issue. If they are unable to fix the issue, a tenant would need to work with an attorney. Landlords have attorneys on retainer, but tenants would need to find an attorney. The Ordinance is meant to protect low income folks, and there are limited housing attorney resources available. Housing advocacy organizations take several weeks for the intake process and being assigned to an attorney. Tenants must also take time off work to attend eviction court hearings. Ms. Mohamed explained the 30-day notice would allow for the tenant to obtain resources to fight the eviction. Lovetee Polahn explained she is an organizer with Georgetown Apartments. She stated landlords are not doing maintenance work such as carpet. Tenants agree to pay rent if the facilities are being taken care of. Landlords are not doing their part. 2/15/22 -4- DRAFT Chair Goodell asked Mr. Anderson what action tenants can take if landlords are not maintaining their facilities. Mr. Anderson stated the City has a Code they enforce for rental properties. Carpet issues can be addressed through Code enforcement only if the carpet is a tripping hazard. He added City Staff have conversed with landlords regarding low interest loans to dedicate affordable units in a property. Chair Goodell stated renters can contact the City if they have concerns. City Council Liaison Lawrence-Anderson put a phone number into the chat feature for the City. Chair Goodell asked how long it takes for the City to respond to reports. Mr. Anderson stated they can have inspectors at a property within a day or two. If an inspector finds a violation, they would notify the landlord of the changes that need to be made. If the landlord does not address the changes, then the City would cite the landlord. Mr. Anderson noted it usually does not get to the point of citation. He added rental properties are inspected before licensing. Chair Goodell added some tenants have expressed concerns about retaliation through non- renewals. Mr. Anderson stated landlords have noted there are anti-retaliation policies in place that prohibit them from non-renewals as a form of retaliation. However, landlords currently don’t need to provide a reason for non-renewal. Therefore, the landlords are not retaliating in the eyes of the law. Ms. Mohamed stated the tenants she work with support the first draft of the Ordinance with the 30-day notice and just cause for non-renewals. It is easy for landlords to hide behind non-renewals currently. If landlords have concrete evidence for wrongdoing, then they go the route of eviction. Chair Goodell stated landlords have commented the just cause non-renewal requirement would prevent them from getting rid of bad tenants. He asked if anyone on the call has had the experience of a tenant moving out due to bad neighbors. Commissioner Hester stated she works in housing. She has not worked with tenants that have moved due to bad neighbors, but she has worked with landlords that have to file a lot of paperwork due to the population. There is an addendum to leases that require no drugs or criminal activity in rental units. Commissioner Hester stated if landlords are concerned about removing problematic tenants, then they could add an addendum for tenants to sign. Commissioner Hester noted one landlord stated people have moved out of their properties because of one nuisance neighbor. Being an annoying neighbor is not a viable excuse to push back on the Ordinance so much. Mr. Anderson stated one landlord gave an example of a tenant smoking marijuana. A neighbor moved out due to the smell, but the landlord was unable to remove the tenant who may have been smoking marijuana. Commissioner Hester explained someone could be using marijuana for medical practices and removing someone for medical marijuana use would be discriminatory. Landlords are just trying 2/15/22 -5- DRAFT to keep loopholes in place to benefit themselves. Renters are able to move if they do not like who they live next to. Commissioner Donnelly stated he did a quick google search, and an eviction notification would not count against a renter in the future. City Council Liaison Lawrence-Anderson stated the Council had a very lengthy discussion and she wanted the item to go to the Housing Commission for review. She stated they need buy-in from landlords and from tenants, so they need to compromise to create an Ordinance that almost everyone can agree on. City Council Liaison Lawrence-Anderson noted she is worried about the unintended consequences and long-term effects of the Ordinance. They want to make sure they have a livable City while maintaining housing stock. St. Paul was sued for their ordinance, but the Brooklyn Center City Attorney has worked to remedy some of the issues St. Paul had in their ordinance. If there isn’t a compromise, the Ordinance will go to court. No one wants an eviction to happen. City Council Liaison Lawrence-Anderson stated that non-renewal is the only option for landlords besides evictions. The second draft of the Ordinance would allow landlords to have the option of 90-day lease termination notice without needing to give a reason or to do a just cause non-renewal. The 14-day notice in question is not a 14-day notice for the person to move out. City Council Liaison Lawrence-Anderson stated she would have liked all parties to be present at the November 2021 meeting, similar to the meeting held in January 2022 because the meeting was very informative. She noted the area of just cause notification is where people are hung up, but the Council wants the best outcome for everyone. City Council Liaison Lawrence-Anderson added she is concerned the proposed Ordinance will not address the concerns expressed by the tenants. They need to consider what the City can and cannot do and make sure the City doesn’t take over the role of landlord. Ms. Polahn stated they staged a protest last year. The tenants had their cars broken into, and they requested security cameras from the landlord. Right after the protest, two tenants were evicted. She explained she has always paid her rent on time, but she is still facing retaliation. She asked how landlords can distinguish between problematic and non-problematic tenants. Chair Goodell clarified the first Ordinance requires a just cause for non-renewal, while the second Ordinance allows for a just cause non-renewal or for a 90-day eviction notification. Therefore, attending a protest would not be a reason for a just cause. Ms. Polahn thanked Chair Goodell for the clarification. Ms. Mohamed stated housing advocates are working to balance power. The fair thing to do would be to give renters protection. Home is more than four walls; it is where people do life. Some people view rentals as a way to make money while others view it as a foundation of their lives. 2/15/22 -6- DRAFT Ms. Mohamed added landlords are business owners. It is their job to attend meetings relevant to conducting their business. It is not fair to punish renters because landlords fail to attend meetings. It is not the role of the Council to ensure landlords attend certain meetings. Ms. Mohamed stated there are low vacancy rates, and it will take several years for the vacancy rates to level out. Housing instability leads to community instability. The entire community has a stake in the matter. Marty McDonough introduced himself as Director of Government Affairs for the Minnesota Multi Housing Association (MHA). He stated the Council meeting happened just last night, so Ms. Mohamed was not being fair to landlords with her comments. He added the item was on the Council’s agenda before landlords knew it was happening, so advocacy groups are behind when they are forced to respond to an ordinance. Mr. McDonough explained MHA has been trying to work with the Council. In short, a lease is a legal document. Tenants know the rules of the lease when they sign a lease. Currently, if a renter is late on their rent, the landlord reaches out on the third day or so to check in. After a couple of weeks of non-payment, the landlord will check in again. Forcing a 14-day or 30-day eviction notice period will push landlords to require the rent is due on the first day of the month and not have as much flexibility. From there, the landlord is in the position to file the 14-day or 30-day notice on the second day of the month. Filing the notification will create unnecessary stress in landlord to tenant relationships. Mr. McDonough stated it should be no surprise to tenants for being evicted for not paying their rent. Mr. McDonough added the current law states that non-renewal is the same time period for the tenant and the landlord. A landlord has to give 60 or 30 days’ notice if they are not going to renew the lease. A tenant has the same requirement if they are not going to renew the lease. It has been that way for a long time. There are times when a tenant may not be a good match for the property and may be receiving complaints from neighbors. Good neighbors are the ones that would have to suffer the effects of the bad neighbors. Mr. McDonough stated he believes they should start the process over. At the Council meeting, it appeared the Mayor and Councilmembers disliked both drafts of the Ordinance. The stakeholders should all get together to create something more people support. Chair Goodell added they had a discussion on the matter back in November and had community comment at the Housing Commission meeting at that time, so it is not a new topic for the Housing Commission to address. Commissioner Hester thanked Mr. McDonough for his comments. If the Ordinance goes into effect and the landlords change their practices, it is their choice. Landlords can continue to function the same way. The Ordinance is a protection for renters with landlords who do not do their jobs. There are plenty of landlords doing their jobs. The Ordinance gives a baseline for new landlords on how to function as a good landlord. 2/15/22 -7- DRAFT Commissioner Hester stated a renter is still a tenant until they move out. The should still be treated with respect by all parties while they remain a tenant. She explained she is pro-tenant, but that does not mean she is anti-landlord. She added giving landlords the wiggle room to choose the option of a 90-day eviction notice without cause does not hold landlords accountable. Mr. McDonough stated a 90-day non-renewal notice would be the last 90 days of the lease. A non-renewal only occurs at the end of a leasing period, and it is a business decision. The notice periods would cause the landlords to be out of even more rent money, which may be required for the landlords to afford mortgages. Commissioner Hester stated there may need to be another conversation about ways to help cover the expense of the landlords if they do not receive the money owed to them. Mr. McDonough noted his agreement with Commissioner Hester’s comment. Ms. Mohamed stated City Council Liaison Lawrence-Anderson’s comments about not swaying too far one way or another comes with the assumption that there is currently a fair balance. There is a power imbalance, and tenants have very little if any negotiating power with the current market. The Ordinance allows for landlords to remove bad tenants within the confines of the law. Commissioner Donnelly stated he would like more information on what reasons for just cause could be. He added even 90 days may not be enough time for a tenant to find another affordable housing unit. He asked for response on each of his comments. Mr. Anderson showed a slide with a list of just cause reasons. The reasons include non-payment of rent, material non-compliance, tenant non-renewal, occupancy by property owner of family member, building demolishing or conversion, rehabilitation or renovation, completing with a government order to vacate, and occupancy conditioned on employment. Commissioner Donnelly asked for further explanation of the material non-compliance just cause. Mr. Anderson stated any violation of the lease would be an example of material non-compliance. Potential forms of material non-compliance could be having a pet against the rules or property damage. Commissioner Donnelly asked what the differences would be for a landlord between a 90-day notice and a 30-day notice. Mr. McDonough stated behaviors are not covered on the list of just causes. Having large parties, smoking, or propping open doors are things that bother neighbors that would not be covered for the just cause non-renewal. Mr. McDonough stated the goal of the MHA is making property ownership a profession and keeping landlords out of trouble. He noted Brooklyn Center has good tenants in the community. In most situations, the landlord doesn’t have to give a reason for non-renewal just as the tenant doesn’t have to give a reason for non-renewal. He explained there was a circumstance where a tenant took pictures of children at the facility’s pool. It is not against the rules of his lease, so the just cause list would mean the landlord couldn’t do anything to protect the children. St. Paul’s tenant protection ordinance was rescinded after being ruled unjust by a federal judge. Ultimately, the just cause requirement will tie the hands of landlords from addressing behavioral issues. 2/15/22 -8- DRAFT Commissioner Donnelly asked what effects the 60-day notice would have in comparison to a 90- day notice. Mr. McDonough stated the MHA uses a the 60-day notice option in their leases. Even if a staff member were harassed, they would have to continue dealing with the tenant for the entirety of the notice period. Mr. McDonough added landlords do not issue non-renewals for good tenants. Chair Goodell stated people are worried about retaliation for protesting living conditions or landlords not maintaining the facilities. He asked if Mr. McDonough can understand that. Mr. McDonough stated he can understand that, but it is against the law for landlords to retaliate. Chair Goodell stated renters cannot prove retaliation if there is no reason for a non-renewal. Mr. McDonough stated renters can claim anything is retaliation. There are times when a renter is not a good fit for a property, and both the property owner and the tenant should have a right to act on that poor fit. Commissioner Carter noted her agreement with Mr. McDonough. There are times when a tenant may have poor attitudes or other issues that make them a poor fit for the living situation. She added 60 days is enough time for someone to find a new place to live. If a tenant is having issues with a landlord, they would not want to continue living there. Commissioner Hester stated she has no criminal background, a full-time job, and a decent credit score. However, it took her six months to find somewhere to live even before the pandemic. Having worked in housing, she has never been able to house someone within a month, but she may be able to house someone within three months if they are lucky. Commissioner Hester stated taking photos of children on private property, that is a safety concern, and there should be something in the lease that should speak to that. If someone is causing harm to other tenants, that should be addressed in the lease. Ms. Mohamed stated just case non-renewals has been approved by the United States Supreme Court, so it has judicial backing. The St. Paul ordinance covered a variety of items, so it is speculation to say the just cause portion caused it to be overturned. Ms. Mohamed added it is a good question to ask why a tenant would want to live somewhere where they have a problem with their landlord. She explained people live in certain places because of the communities, school districts, proximity to amenities, or other considerations. Moving a child to a new school district has long-term negative effects on the youth and the overall community. Commissioner Oman stated the 14-day notice is more than enough time for an eviction notification, and they are never going to find a solution that everyone likes. He added that the issue of landlords losing money is disingenuous because almost all leases require first and last month’s rent to be paid in advance. Commissioner Carter stated not every landlord requires first and last months of rent. Commissioner Oman stated the landlord does have the option to require first and last months of rent in the lease if they choose to protect themselves in that way. Commissioner Carter stated if a 2/15/22 -9- DRAFT landlord does not require first month’s rent, the last month’s rent, and a security deposit, it is better for the tenant. There aren’t many tenants who can afford to pay all of those expenses at one time. Chair Goodell asked if there is a requirement for a 30-day or 60-day non-renewal notice in leases or if that is a choice made by the landlords in their writing of the lease. Mr. McDonough stated the only requirement is that both the tenant and the landlord have the opportunity to not renew. Commissioner Donnelly noted his agreement with Commissioner Carter that collecting first month’s rent and last month’s rent does not guarantee the landlord will not lose money. Landlords may lose multiple months of rent in the process of removing a tenant, especially if the property owner is more flexible with the timeline of a tenant paying their rent. Chair Goodell noted his agreement with Commissioner Donnelly about losing money as a landlord. Chair Goodell noted he is a part-time landlord, and losing money is the cost of being a landlord. The Commission needs to balance the needs of the renters and the property owners. From the perspective of a landlord, they would want very little regulation. On the other side, the renter would like as much regulation as possible. Ultimately, the Ordinance needs to balance those two perspectives. Commissioner Donnelly stated he agreed with the comments of Chair Goodell. Being a business owner comes with risk, and they must be prepared for unprecedented circumstances with a financial cushion. Chair Goodell stated the Council is looking for feedback and a recommendation from the Housing Commission about the two versions of the Ordinance. He asked Mr. Anderson what the concerns of the Council were. Mr. Anderson stated there were questions from multiple Councilmembers regarding the success of the tenant protections in Minneapolis and other items. The Mayor seemed to prefer the first version of the Ordinance. Councilmembers have asked for more data and more discussion on the matter. Chair Goodell noted the original version of the Ordinance was recommended by the Housing Commission previously. Mr. Anderson confirmed he original version of the Ordinance was recommended by the Housing Commission previously. He added the Council is open to recommendations beyond the two options that have already been presented to them. Commissioner Hester stated she can appreciate the option for a 14-day eviction notice, but not without a just cause non-renewal requirement. The 14-day notice doesn’t go on the record, but it provides them the opportunity to resolve any issues with the landlord. Commissioner Donnelly noted his agreement with Commissioner Hester. He explained he would like to find a compromise between the two versions, but he does not have a specific preference either way. Commissioner Donnelly added he would like to hear from a landlord and a housing advocate as to which of the portions of the versions are most important. 2/15/22 -10- DRAFT Ms. Mohamed stated both portions of the Ordinance are important. Ms. Polahn agreed with Ms. Mohamed. Ms. Mohamed added the notice and the just cause components are bare bones of tenant protections. City Council Liaison Lawrence-Anderson pointed out the 30 days and the 14 days refer to pre- eviction notices. Chair Goodell asked City Council Liaison Lawrence-Anderson to outline the process. City Council Liaison Lawrence-Anderson stated she does not understand the entirety of the process. City Council Liaison Lawrence-Anderson noted the purpose of the non-renewal currently is to avoid the eviction process. Landlords have expressed concerns that evictions would increase with a just cause non-renewal requirement. The 14-day notice and the 30-day notice would allow for a grace period to resolve concerns before an eviction were to be filed. City Council Liaison Lawrence-Anderson stated she was in the room with HOMELine, ACER, and other tenant advocacy groups at two meetings. At the December Council meeting, she suggested they get all affected parties in the room together to discuss the Ordinance. From there, MHA, Minneapolis Realtors, and various Brooklyn Center landlords joined the discussion. The landlords have said they want to make the Ordinance work, but they do not want the end result to be more harmful. City Council Liaison Lawrence-Anderson added there may be a third meeting incorporating all of the parties. It was her hope for that meeting to happen before presenting the Ordinance to the Council for a second time. Commissioner Oman stated the second version is a good compromise between the interested parties. Commissioner Hester noted she has concern about the language surrounding the 90-day non- renewal without just cause as that is too much of an open arena for landlords. Chair Goodell asked if she had an idea of a better time period for the non-renewal without just cause. Commissioner Hester stated they could do something close to 60 days, but she didn’t have a specific timeline in mind. She explained landlords can use the non-renewal without just cause to get rid of tenants, and the language did not sit well with her. Ms. Polahn stated when laws are made, it may affect people positively or negatively. Poor people are the ones who are more likely to be negatively impacted. Many landlords don’t live in the community, and they aren’t familiar with the suffering they experience. Just cause non-renewal would be fair for tenants. Ms. Mohamed explained the last meeting with landlords was very eye-opening for her. Landlords see property as a source of income rather than a life-or-death situation. Housing is crucially connected to health. One landlord said they put all of their tenants on a 60-day lease regardless of their history, which is an example of predatory behavior by landlords. The two portions of the Ordinance being asked for by tenants and housing advocates is a bare minimum to provide stability to renters. 2/15/22 -11- DRAFT Chair Goodell stated he has heard that the Housing Commission feels an ordinance is important. Commissioners Oman, Donnelly, and Hester stated they agree an ordinance is important. Chair Goodell added he is hearing there is not a consensus between the two options. Commissioners Oman, Donnelly, and Hester noted their agreement with that statement. Chair Goodell asked if there was consensus for the 14-day or 30-day pre-eviction notification. Commissioner Hester stated she would be okay with the 14-day pre-eviction notification, but she would prefer the 30-day pre-eviction notification. Commissioner Oman stated he would support the 30-day pre-eviction notification, but he could be okay with the 14-day pre-eviction notification. Commissioner Donnelly noted they need to find a compromise, and the pre-eviction notification seems easier to compromise on than the other portion of the Ordinance. Therefore, it would be a good compromise to allow for a 14-day pre-eviction notification rather than a 30-day eviction notification. Commissioner Oman stated a concern he has heard with the 90-day non-renewal just case requirement is already built into some leases so that both the landlord and the tenant would have the ability to not renew the lease with the same amount of time. If they require the 90-day non- renewal just cause portion of the Ordinance, they would take away that portion of the lease agreements. That is likely why the compromise was suggested, and it is reasonable. Chair Goodell stated the first proposal requires a just cause for all non-renewals, and the second proposed draft gives landlords the options of a just cause for a non-renewal or a 90-day notice for non-renewals without cause. He asked if that is a correct summary. Mr. Anderson confirmed Chair Goodell’s summary was correct. He added the first proposal would require a 30-day pre- eviction notice, and the second proposal would require a 14-day pre-eviction notice. Chair Goodell stated the lease can determine the notification for either side to choose not to renew the lease. If they pass the Ordinance to give landlords the options of a just cause for a non-renewal or a 90-day notice for non-renewals without cause, then there would be an imbalance for the landlords to provide longer notice than the tenants. Chair Goodell stated people have said they would prefer the 30-day eviction notification, but they would accept the 14-day pre-eviction notification as a point of compromise. He asked for comments regarding the just cause portion of the Ordinance. Commissioner Oman stated having 90 days of notice for a non-renewal without cause is a reasonable compromise. Commissioner Hester stated having 90 days of notice for a non-renewal without cause is not agreeable because there should be a reason for the landlord to not renew the lease. 2/15/22 -12- DRAFT Chair Goodell noted his agreement with Commissioner Hester considering the current housing climate. He asked if Commissioner Carter or Commissioner Donnelly had any additional comments. Commissioner Carter stated she would prefer the second version of the Ordinance where the landlords have the option of a just cause for a non-renewal or a 90-day notice for non-renewals without cause. Commissioner Donnelly added 90 days doesn’t seem to be enough time because of the limited housing options. Chair Goodell summarized the Housing Commission agrees there is a need for the ordinance, the Commission favors the 30-day pre-eviction notification but can compromise with the 14-day pre- eviction notification, and the Commission is split on the just cause provision. Commissioner Donnelly pointed out they had not discussed the provision requiring the tracking of data related to evictions and non-renewals. Commissioner Hester stated the data needs to be tracked. Commissioner Oman explained he has not heard any concerns about the data collection provision, so it is a reasonable portion of the Ordinance. Chair Goodell noted his agreement with the comments of other Commissioners. Mr. Anderson read the portion of the Ordinance related to data collection requirements. He explained the landlords do not have to report the data to the City unless requested. Chair Goodell asked if the City asks landlords for any metrics regularly. Mr. Anderson stated the City requests rent rolls occasionally, but not regularly otherwise. Chair Goodell thanked Commissioner Donnelly for mentioning the data collection portion of the Ordinance. He stated the consensus of the Commission is in favor of the data collection portion of the Ordinance. Commissioner Hester moved and Commissioner Oman seconded to provide feedback to the City Council that the Housing Commission agrees there is a need for a tenant protection ordinance, favors the 30-day pre-eviction notification but can compromise with the 14-day pre-eviction notification, is split on the just cause non-renewal provision, and supports the data collection provision. The motion passed. Chair Goodell thanked the Commissioners and the community members for their thoughtful discussion and comments regarding the Ordinance. UPDATE ON CDGB PROGRAMS Mr. Anderson stated the City Council reviews the allocation of the 2022 Community Development Block Grant (CDGB) funds. There is $258,000 available in the fund for 2022. In previous years, the City has allocated approximately $100,000 to Down Payment Assistance Program and the remaining $158,000 towards the Hennepin County Home Rehab Program. In 2021, they had four 2/15/22 -13- DRAFT loans close through the Down Payment Assistance Program. Mr. Anderson explained the down payment assistance program is not very productive as there are very few homes available in the City and it is a complicated process to get the loan. There is still around $215,000 in the down payment assistance fund. Mr. Anderson noted the Council recommended the 2022 CDGB funds be used entirely for the Hennepin County Home Rehab Program and for the $215,000 to be retained for the Down Payment Assistance Program. There is a contingency that the funds may be reallocated based on the outcome of the housing study. Mr. Anderson explained the Hennepin County Home Rehab Program isa forgivable loan for low- income homeowners to improve their homes. The Down Payment Assistance Program offers $10,000 for the purchase of the home and is forgiven after ten years. Chair Goodell noted the housing stock availability is not something the City can control. He asked if the City can do anything to make the application process less onerous. Mr. Anderson stated the City has partnered with the Center for Energy and Environment (CEE), which is the agency that processes the applications and PRG, which is an organization that helps people on the path towards home ownership. PRG helps folks prepare to own a house and CEE helps with the application. Chair Goodell asked how the City is advertising the programs. Mr. Anderson stated a mail flyer was sent out to every tenant in the City and reached out to businesses to encourage employees to consider the program. They also sent it to schools in the hopes they would send the information home with students for their parents. Because of those efforts, PRG saw a 34% increase in calls from Brooklyn Center. Mr. Anderson added they had two loans close through the Down Payment Assistance Program in January 2022. COUNCIL LIAISON REPORT City Council Liaison Lawrence-Anderson asked if they wanted a report from her due to the late hour. Chair Goodell stated City Council Liaison Lawrence-Anderson could share anything she thought was important. City Council Liaison Lawrence-Anderson stated the Tenant Protection Ordinance has been a focus of the Council’s. She added the Implementation Committee process is underway, and the Council will receive Committee recommendations at the next meeting. She stated they should fill the existing Commissions and address those who have been serving with expired terms before selecting the Implementation Committee. The Council has been negligent in making those appointments, and they need to take care of the existing business first. Chair Goodell thanked City Council Liaison Lawrence-Anderson for her report. CHAIRPERSONS REPORT Chair Goodell thanked Commissioners who have been able to attend the additional meetings and their efforts. 2/15/22 -14- DRAFT OTHER BUSINESS City Council Liaison Lawrence-Anderson thanked the Commission for their thorough discussion and the time they have spent serving the Housing Commission. ADJOURNMENT There was a motion by Commissioner Oman and seconded by Commissioner Donnelly to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:07 p.m. __________________________________ Chair Goodell Tenant / Landlord Tenant Protection Meeting Recap January 12, 2022 There were a total of 25 participants, 3 city staff, city attorney, and 2 council members. Staff provided a brief overview the current tenant protection ordinance stating that it applies to the transfer of ownership. Staff provided a brief recap of the concerns that were brought up at the ARM meeting. Those concerns were:  What is the definition of affordable housing, needed some clarification about affordable.  The city getting involved with a private contract between landlord and tenant, city getting involved with contract law.  Landlords calling the police for service would impact their license type.  If landlords are required to give a 30 day notice it would further delay their rent collection and could take as long as 90 days to get the unit back.  There were questions about the data used to come up with the ordinance.  State statutes give tenants’ rights such retaliation protection and tenant remedies act in the event that the repairs are not being done.  Possible compromise such as shortening the 30 day notice to 14 days and replacing just cause non-renewal with a notice period for just cause. Staff provided an explained the 30 day eviction notice. Minneapolis give a 14 day and St. Louis Park’s is 7 days. Staff cited that the city is open for a discussion. The concern regarding the 30 day windows is that it is too long to resolve the issue and would push it into another month of the tenant potentially being late again on rent. Landlords often work with tenants on resolving the matter and requiring a 30 day notice would mean that a notice would be given on the 2nd day requiring eviction which may case tenants to panic and break down the communication between landlord and tenant. The most common issues that cause late rent is car breakdown or medical bill. If the notice is 30 days, most landlords isn’t willing to do a payment plan beyond 30 days. Staff gave an example of issuing a code violation notice. Staff stated the notice is not a citation but the notice states the amount of time given and also includes language about an abatement or a citation. Once a payment plan is entered into and the tenant breaks that agreement, a Hennepin county judge will throw the case out and would require a new notice. The citation doesn’t pay the mortgage and a tenant who doesn’t pay impacts the landlord’s mortgage. Pushing the rent back 30 days would compound the amount of rent due making it more difficult for them to pay. Sam from Homeline stated that landlords who make payment arrangements and could extend for 30-60 and if the tenant defaults the arrangement could be held up in court. If the notice is sent with language stating that the tenant is behind on rent, and rent isn’t paid, another notice will be sent. The tenant would be behind on rent and before housing court, landlords have bent over backwards to assist landlords. Many landlords reach out and willing to work something out. A notice that states Eviction will cause a lot of stress, notices for noise violations already cause a lot of stress, and a notice stating eviction will further cause stress. Tenants don’t know that they can call the office to work out plan on how to pay the rent owed. If a notice is not given to tenants and do not get a heads up they might not know that there is issue. A suggestion was about crafting the notice so it is not threatening or intimidating. Regardless of the language in the notice, the 30 day requirement would still mean the notice is given on day 2. A concern about criminal would delay an eviction if a 30 day notice is required. It was stated that criminal activity is exempt from the ordinance and there are state statutes that would allow for expedited eviction. Another concern was about the different rules that each city has in implementing tenant protection laws. Staff stated that landlords should lobby MN Multi-Housing to lobby the legislature to pass laws that would be implemented state wide. Evictions take a long time and often times that tenants leave and landlords are not able to collect on the back rent. If there are a few bad landlords only, why implement ordinance that impact the entire rental property in the city. Further, the city already has a difficult rental license program and it is only compounding regulation. The cost of 30 days has impact on single family homes since there small margins on single family rentals and as large investment companies leave and new ones move in, the cost of rent will increase. The payment of rent language is in the lease and staff is willing to work with a date that will work with everyone. It was suggested that the notice is shorted to 7 days. 7 days is not enough time for tenants prepare and the more notice is preferred. Homeline suggested that the 30 day notice does not get changed. Staff stated that the courts have upheld Minneapolis and St. Louis Park’s ordinance so both dates would be acceptable. 30 days would be in conflict with state statute, state statue is 14 days for a tenant to file a rent abatement. Landlords don’t want to file an eviction and have built a relationship with tenants. Using the word eviction ruins the relationship. It was then stated that the relationship is a business relationship and not friendship relationship. An example of non-renewal just cause is a tenant who smokes marijuana but the landlord cannot evict because there isn’t enough evidence which causes good tenants to move out. If the tenants are not willing to testify, there is no way to get rid of the tenant. The only way would be to non-renew the tenant. BC police does not respond to calls for service for marijuana and the current language would require that the tenant is given an opportunity to correct the behavior. Staff stated that there are real concerns that the city has continued to hear from residents about maintenance and management practice and staff has to balance the interests of everyone. ARM Meeting Comments We have 13 people that signed in, however, there were about 20 people that showed up. Emails (where emails were provided) were sent to invite them back for the January 12 th meeting. Notes are not in any particular order of discussion. Let me know if there are additions to this that I may have missed. 1. Questions were asked about the use of the word affordable housing and what would be considered affordable housing. It was explained that affordable housing in the context of the ordnance would be the rent amount based at 80% of AMI. The AMI amounts were referenced in the ARM newsletter. It was suggested that the city adopt the state’s definition of affordable housing. 2. The owner stated that due to the rent in Brooklyn Center, 80% of AMI would mean all properties in the city are subject to this new ordinance since the rents are not more than the chart. 3. There were concerns about how the city is interfering with contract law since the contract is between a landlord and tenant not with the city. There was a follow up about enforcement. Staff explained that the ordinance would allow tenants to be more proactive and would be able to use the ordinance as a defense in court. The city would not be enforcing the ordinance. 4. A concern expressed if landlords are non-renewing because of police calls, they would need to call the police for service which would ultimately impact their license type. Staff showed the police calls for service chart and explained that not all calls for service would impact their license type. 5. Many owners/landlords/managers expressed that they are already working with tenants on rent issues and the ordinance would inhibit them to work with tenants since they would have to serve a eviction notice after the 1st of them month. 6. A question about the data used for the reason to come up with the non-renewals. Staff explained that the data for non-renewals do not exist however the data for eviction filings, vacancy rates, and housing costs exist which was used to craft the ordinance to prevent further displacement of low income families who lack housing options. Staff also cited the U of MN study which showed the housing issues. 7. There was concern that the city would be creating an ordinance that would be in conflict with state statutes around tenant rights. It was also expressed that retaliation is outlined in state statutes along with rent escrow procedures for repair or other issues. 8. Questions about why staff didn’t engage landlords in a conversation sooner and waited till it was about to be approved by city council. 9. Giving tenants a 30 day notice for eviction filing would mean that every tenant that does not pay rent on the 1st will be served a notice of eviction. Tenants would be upset and cause additional work for landlords. It would also further delay actual evictions up to 60 days and landlords would be without rent up to 3 months without rent collection. 10. It would deter landlords from working with tenants, most already do try to work something out if the tenants are behind on rent. 11. The city is allowing tenants who can’t pay rent to live rent free and not allowing the landlord to get the tenant out sooner. 12. Retaliation is already a right under MN statute and if a landlord is retaliating, the tenant has rights that they can utilize. 13. If landlord isn’t repairing things, the tenant can file a rent escrow which is protected under MN statute as well. 14. This ordinance is protecting bad tenants and allowing them to live in the unit while the good tenants are going to suffer. 15. This is going to drive out good tenants because landlords won’t be able to evict bad tenants quickly enough. 16. Just cause eviction would require that the landlords have enough evidence to prove in court which is often difficult to do such as smoking or marijuana smoking. 17. The city should consider looking at St Louis Park’s tenant protection ordinance and change it to 7 day notice vs 30 day notice. 18. Comments were made about RentHelpMN and questions were asked if the city is helping with tenants who need it. Staff stated that staff is not doing the technical assistance but referring to partnering agencies such as CEAP and other organizations that assist with application and in- person assistance. RentHelpMN is down to 30 days for 1 st time applicants and 2nd time applicants are as long as 5 months. Member introduced the following resolution and moved its adoption: RESOLUTION NO. 2022-____ CITY OF BROOKLYN CENTER, MINNESOTA A RESOLUTION APPROVING THE SECOND READING OF AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCES REGARDING TENANT PROTECTION AND SUMMARY PUBLICATION OF THE ORDINANCE WHEREAS, the City of Brooklyn Center (“City”) previously amended the City Code to establish certain protections for tenants of affordable housing units and now desires to expand those protections; and WHEREAS, City staff developed a proposed ordinance titled “An Ordinance Amending Chapter 12 of the City Code of Ordinances Regarding Tenant Protections” (“Ordinance”), which amends Sections 12-201, 12-912D and 12-1401 of the City Code; and WHEREAS, the City Council discussed this issue at several work sessions and the proposed Ordinance was presented to the City Council to conduct a first reading on November 8, 2021 in accordance with Section 3.04 of the City Charter; and WHEREAS, the proposed Ordinance was presented to the City Council to conduct a public hearing and a second reading on December 13, 2021 in accordance with Section 3.04 of the City Charter; and WHEREAS, the City Council continued the second reading from December 13, 2021 to February 28, 2022, and the City Council acted at its meeting on February 28, 2022 to adopt the above-referenced Ordinance; and WHEREAS, Minnesota Statutes, section 412.191, subdivision 4 allows publication of adopted ordinances by title and summary in the case of lengthy ordinances or those containing maps or charts; and WHEREAS, the City Council determines publishing the entire text of the Ordinance is not in the best interests of the City as the Ordinance is readily available to the public on the City’s website and by contacting City Hall; and WHEREAS, the City Council determines the following summary clearly informs the public of the intent of Ordinance and where to obtain a copy of the full text. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn Center as follows: 1. A second reading has been conducted and the Ordinance is hereby adopted. 2. The City Clerk is hereby authorized and directed to publish the following notice and summary of the Ordinance, which is hereby approved, once in the City’s official newspaper: City of Brooklyn Center AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCES REGARDING TENANT PROTECTION Please take notice that the City Council of the City of Brooklyn Center has adopted an ordinance to amend Chapter 12 of the City Code by amending Section 12- 912D to expand the protections provided to tenants of affordable housing units. The ordinance establishes new requirements for landlords to provide tenants a notice at least 30 days before filing an eviction action, to provide notice explaining the basis of a just cause nonrenewal of a lease, and to provide for filing a private enforcement action in district court for a violation of the tenant protections under the section, including the seeking of an award of attorney’s fees. A copy of the full ordinance is available on the City’s website. 3. City staff and consultants are authorized to take such other actions as may be needed to incorporate the Ordinance into the City Code and to otherwise carry out the intent of this Resolution. February 28, 2022 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted.