Eden Prairie, Minn., City Code ch. 13 § 13.05

Subd. 1. Findings. In addition to the findings expressed in Section 13.01 , Subdivision 1, the City Council finds and declares the following:
A. In the Twin Cities metro area, approximately 1,300 affordable housing units are annually losing their affordability after a property sale.
B. Suburban Twin Cities communities are losing more affordable units than urban communities, accounting for 90% of the lost units in the Twin Cities metro area.
C. Affordable units in higher rent communities such as Eden Prairie are more likely to lose their affordability after a property sale.
D. There is a need to encourage and assist in the preservation of existing affordable housing, including naturally occurring affordable housing (NOAH), in Eden Prairie.
E. Existing tenants in fully or partially affordable rental properties can be vulnerable to changes in ownership when such changes result in new rules, higher rental rates, or displacement.
F. There is a need to provide certain benefits and protections to vulnerable rental tenants where City preservation efforts are not possible to help them avoid temporary or permanent homelessness, dislocation from schools and jobs, and disruptions in community.
Subd. 2. Purpose. The purpose of this Section is to implement protections to further the City's goal of protecting existing tenants of certain affordable properties that have changed ownership from being rescreened, subjected to rent increases during an existing lease period, or threatened with eviction without just cause.
Subd. 3. Definitions. For purposes of this Section, the following terms, phrases, words, and their derivations have the meanings given in this subdivision.
Affordable rental project means a multifamily property that: (1) has three or more housing units, where at least 20 percent of the units are affordable rental units; (2) was originally developed with public subsidy that required the provision of affordable rental units; and (3) is no longer subject to the original affordability requirements. An affordable rental project does not include a project that is currently required to provide affordable units pursuant to a contract with the City or the State.
Affordable rental unit means a rental unit in a NOAH project or an affordable rental project that rents for an amount that is affordable to households at or below 80 percent of area median income, as affordability was most recently determined by the Multifamily Tax Subsidy Projects Income Limits set by the HUD and promulgated by the Minnesota Housing Finance Agency and as median income was most recently determined by HUD for the Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for household size and number of bedrooms.
Cause means the tenant or a member of the tenant's household materially violated a term of the lease.
Naturally occurring affordable housing project or NOAH project means a privately owned, unsubsidized affordable rental project that: (1) contains at least 50 units; (2) was built in or before 1990; (3) is considered Class B or C property; (3) at least 20% of units are affordable rental units and/or are occupied by households earning 80% or less of the area median income; and (4) due to its age, condition, and lack of amenities cannot command typical market rate rents.
Tenant protection period means the period that commences on the date the City approves a new owner's rental license application pursuant to Section 5.72 , and expires three (3) calendar months following the month in which written notice of the transfer is sent to each affordable rental unit tenant pursuant to subdivision 5 of this Section.
Subd. 4. Relocation Assistance.
A. During the tenant protection period, if the new owner of a NOAH project or an affordable rental project terminates or refuses to renew any affordable rental unit tenant's lease without cause, the new owner must pay relocation assistance to the tenant, no later than the day upon which the tenant vacates the unit, in an amount equal to three months of the current monthly rent amount for that unit.
B. During the tenant protection period, if a rent increase goes into effect on any affordable rental unit, or the new owner of a NOAH project or an affordable rental project raises any affordable rental unit tenant's rent, or rescreens an existing affordable rental unit tenant such that the tenant no longer qualifies for tenancy, and the tenant gives written notice to the new owner to terminate the lease in accordance with its terms, the new owner must, within thirty (30) days of receiving tenant's written notice of termination of the lease, pay relocation assistance to the tenant in an amount equal to three months of the current monthly rent for that unit.
Subd. 5. Notice of Transfer. Whenever ownership of a NOAH project or an affordable rental project transfers, the new owner must, within thirty (30) days of the date on which the City approves the new owner's rental license application pursuant to Section 5.72 , give written notice to each affordable rental unit tenant of the project that the property is under new ownership stating:
A. The name, mailing address, and telephone number of the new owner.
B. That Eden Prairie City Code Chapter 13 , Section 13.05 provides a tenant protection period for affordable rental unit tenants and that under Section 13.05 , affordable rental unit tenants may be entitled to relocation assistance from the new owner if the new owner terminates or does not renew the tenant's rental agreement without cause during the tenant protection period. Affordable rental unit tenants may also be entitled to relocation assistance from the new owner if the owner raises the rent or initiates a tenant rescreening process during the tenant protection period and the tenant terminates their rental agreement or no longer qualifies for tenancy as a result.
C. Whether there will be any rent increase within the tenant protection period, the amount of any rent increase, and the date the rent increase will take effect.
D. Whether the new owner will require existing affordable rental unit tenants to be rescreened to determine compliance with existing or modified residency screening criteria during the tenant protection period and if so, a copy of the screening criteria.
E. Whether the new owner will terminate or not renew rental agreements without cause during the tenant protection period and if so, notice to the affected affordable rental unit tenants whose rental agreements will terminate and the date the rental agreements will terminate.
F. Whether the new owner intends to increase rent, require existing affordable rental unit tenants to be rescreened to determine compliance with existing or modified residency screening criteria, or terminate or not renew affordable rental unit rental agreements without cause on at any time following the tenant protection period.
The written notice must be made available in multiple languages consistent with City's Limited English Proficiency policy. The written notice must also be posted at the main entrance(s) of the NOAH project or affordable rental project building(s) for the duration of the tenant protection period. The new owner must provide a copy of the notice required by this subdivision to the City at the same time notice is provided to the tenants. The new owner of a NOAH project or an affordable rental project may not terminate or not renew a tenant's rental agreement without cause, raise rent, or rescreen existing tenants during the tenant protection period without giving the notice required by this subdivision.
Subd. 6. Penalty for Violation.
A. A violation of this Section is a misdemeanor as provided in Section 13.99 . A violation as to each affordable rental unit constitutes a separate offense.
B. A violation of this Section also constitutes grounds for suspension or revocation of the rental license for the affordable rental project pursuant to Section 5.72 , subd. 7.