Page 24 - AAGLA-MAY 2022

Multifamily News
Controversial St. Paul, Minn. Rent Control Law May Get a “Re-Do”
The collapse in new development quickly followed St. Paul’s voter approval of a very strict, vaguely written rent control ordinance. As a result, city and state officials are scrambling over how best to fix the new law. The voter-approved ordinance that caps annual rent increases at 3% and which includes none of the typical exemptions or allowances for new construction, vacant units, or inflation, is set to take effect on May 1, 2022.
The ordinance’s strict provisions have seen developers leave the city almost immediately after its passage in November 2021. Thousands of planned new housings units have been put on hold or canceled, and the number of new multifamily building permits issued by the city has plunged leading to potential further housing shortages. Census Bureau data showing that new multifamily building permits had fallen 80 percent year-over-year in the months after St. Paul passed rent control.
A St. Paul, Minnesota City Council meeting is expected to review a pair of ordinances intended to clear up ambiguities in the new law and provide some certainty for property owners and tenants. The first ordinance would establish basic definitions for terms like “rent” and “rental unit.” The other would direct St. Paul’s Department of Safety and Inspections to articulate what a reasonable rate of return for landlords will be and establish a uniform process for requesting exemptions.
Legislature Passes Assembly Bill 2179 to
Extend State’s Eviction Protections
On Thursday, March 31, 2022, the California Legislature passed Assembly Bill 2179 authored by Assembly Member Grayson, which extends the statewide eviction moratorium from April 1, 2022, until June 30, 2022, and preempts certain local eviction moratoriums from being extended. Previously, eviction protections afforded tenants under Assembly Bill 832 were set to expire on March 31, 2022. Rental housing providers subject to the City of Los Angeles’ and City of Beverly Hills’ (and quite possibly, Pasadena’s) moratoriums on evictions and rent increases are not impacted by this latest extension (these Cities’ moratoriums are not preempted by Assembly Bill 2179). The purpose in passing the bill is to give California more time to distribute rental assistance funds through the “Housing is Key” rent assistance program.
Under this latest extension, ONLY those renters who have applied for rental relief by the March 31, 2022, deadline will be eligible for eviction protections beyond March 31, 2022, while their application for relief is pending, and protections will
MAY 2022
24 MAY 2022 • WWW.AAGLA.ORG
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