Minn. Stat. § 504B § 504B.153
NEW CONSTRUCTION DELAYS; TENANT REMEDIES.
Operative Text
Subdivision 1.Definition; new construction. For purposes of this section, "new construction" means a new building, rehabilitation, modification, reconstruction, any physical changes altering the use or occupancy of the dwelling units, or an addition to a building. Subd. 2.Requirements if landlord cannot deliver occupancy. (a) If a landlord is informed by a builder or otherwise knows that a new construction for rental occupancy will not be available for occupancy by the move-in date established in the lease agreement, the landlord must, within seven days and prior to the move-in date, notify every tenant affected and offer the following choices to the tenant to be accepted at the tenant's option: (1) alternative housing provided by the landlord that is reasonably equivalent in size, amenities, and location to the unit described in the lease agreement, unless otherwise agreed upon by the tenant, until the unit may be lawfully inhabited; (2) payment from the landlord to the tenant, equivalent to the cost of rent established in the lease agreement, to mitigate the costs of alternative housing secured by the tenant until the unit described in the lease agreement may be lawfully inhabited; or (3) termination of the lease agreement and a return to the tenant of all amounts paid to the landlord, including any rent, deposit, and other payments incurred in entering the lease agreement. (b) If a tenant exercises options under paragraph (a), clause (1) or (2), the landlord must provide the tenant with reimbursements related to security deposits, application fees, parking fees, pet fees, and any other fees reasonably associated with securing alternative housing. (c) Tenants exercising options under paragraph (a), clause (1) or (2), may terminate their lease agreement under paragraph (a), clause (3), if the new construction for rental occupancy is not available for tenant occupancy within 90 days of the move-in date established in the lease agreement. Subd. 3.Waiver. Any provision, whether oral or written, of any lease or other agreement, whereby any provision of this section is waived by a tenant, is contrary to public policy and void. Subd. 4.Remedies. (a) A violation by the landlord of subdivision 2 is a violation of section 504B.375. A tenant aggrieved by a violation by the landlord of subdivision 2 may elect the following remedy: (1) recovery under section 504B.231; or (2) recover the greater of one month's rent, $1,000, or actual damages, plus reasonable attorney fees and court costs. (b) The remedies available under this section are in addition to any other remedies available at equity or law.
Minn. Stat. § 504B.153 addresses situations where a landlord knows that a newly constructed or substantially renovated rental unit will not be ready by the agreed move-in date. Under this provision, the landlord must notify affected tenants within seven days and before the move-in date, then offer each tenant a choice: equivalent alternative housing provided by the landlord, a rent-equivalent payment to help cover the tenant's own alternative housing costs, or a full refund and lease termination. Any attempt to waive these protections in a lease is void as contrary to public policy.
Plain English — not legal advice.
Operators managing new construction or major rehabilitation projects covered by Minn. Stat. § 504B.153 generally track construction timelines closely so that, if a delay becomes known, they can issue written notice to every affected tenant within seven days and before the scheduled move-in date. Compliant operators present each tenant with all three statutory options—equivalent alternative housing, a rent-equivalent payment, or lease termination with full refund—and document the tenant's selection. When a tenant chooses alternative housing or the rent-equivalent payment, operators also reimburse associated costs such as security deposits, application fees, parking fees, and pet fees for the alternative unit, and they remain aware that if the unit is still unavailable 90 days after the original move-in date, the tenant may elect to terminate the lease entirely.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Minn. Stat. § 504B.153, tenants whose new-construction rental unit is not ready by the lease's move-in date have the right to choose among three options: landlord-provided equivalent housing, a landlord-paid rent-equivalent amount to offset the cost of housing the tenant finds independently, or full lease termination with a refund of all amounts paid. If the unit remains unavailable 90 days past the original move-in date, tenants who initially chose one of the first two options may still elect to terminate the lease and receive a full refund. A landlord who violates these requirements may be liable for the greater of one month's rent, $1,000, or actual damages, plus attorney fees and court costs; tenants experiencing such a situation may consider consulting a tenant-rights organization or reviewing the remedies available under section 504B.375 and 504B.231.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.