Restrict corporate conversion of single-family homes into rental units

 

Prohibit corporations from owning more than five single-family homes for the purpose of renting them out.

Exceptions: governments, nonprofits, land trusts, housing developers, group homes, employers renting to employees, and

mortgage note holders.

 

Corporate ownership of single-family homes contributes to the housing crisis. Oftentimes, rent prices are highly

inflated, despite most renters being low-to-middle income. Prohibiting excess corporate ownership encourages citizen

home ownership, allowing families increased access to homeownership in Minnesota.

 

Corporate ownership: means any partnership, corporation, limited liability company, pension or investment fund, or trust

in possession of a single-family home.

Affordable housing: at least two-thirds of its units are rented to an individual or family with an annual income of up

to 50 percent of the area median income as determined by the United States Department of Housing and Urban Development,

adjusted for family size, that is paying no more than 30 percent of annual income on rent.

Investment fund: a mutual fund; a life insurance company separate account; a common trust of a bank or other trustee

established for the investment and reinvestment of money contributed to it; a real estate investment trust; or an

investment company.

 

N/A

 

If the attorney general has reason to believe that a corporation, real estate developer, or residential building

contractor is violating this section, the attorney general shall call a trial in the district court. If the court finds

that the property in question is being held in violation of this act, it shall be declared. The corporation shall have a

period of one year from the date of the order to divest itself of the property. Any property not divested within the

time prescribed shall be sold at public sale in the manner of a foreclosure or end of a mortgage. Any current renters

will be given priority in the sale of the home and may be entitled to compensation from the corporation as determined in

a seperate district court trial.

 

January 1st, 2035 — provides ten years for a corporation in violation of the statute to come into compliance.