A bill for an act
relating to landlord and tenants; providing tenants with remedies related to new
construction delays; proposing coding for new law in Minnesota Statutes, chapter
504B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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For purposes of this section, "new
construction" means a new building, rehabilitation, modification, reconstruction, any physical
changes altering the use of occupancy, or an addition to a building.
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(a) If a new construction for rental occupancy is not available for
occupancy on the move-in date established in the lease agreement, the tenant may select
one of the three following remedies:
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(1) alternative housing provided by the landlord that is reasonably equivalent to the unit
described in the lease agreement until the unit may be lawfully inhabited;
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(2) reimbursement by cash or check from the landlord of the total rent paid by the tenant
each month, as 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
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(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.
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(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.
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(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.
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(d) A violation of this section by a landlord is a violation of sections 504B.161 and
504B.375. The remedies available under this section are in addition to any other remedies
available at equity or law.
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This section shall be liberally construed for the protection of
tenants.
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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.
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This section is effective August 1, 2024, and applies to all leases
entered into on or after that date.
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