The Department of Regulatory Services in Minneapolis is proposing changes to rental licensing and associated penalties. Currently, the most severe penalty to a landlord happens only after two rental licenses are revoked within five years, at which point he or she loses all rental licenses within Minneapolis for a five-year period. In theory, the way this works is that a landlord loses one license, and then is on a short leash for all the other properties. In practice, slumlords like Mahmood Khan (who owns the property photographed above) lose rental licenses and have those losses overturned in court before the second revocation can kick in. (Search 2906 Emerson Ave N on the city's website for an example of that) Or in the Folger case, a landlord suddenly loses all of his licenses, and the tenants are the ones who suffer.
The issue communities have been facing is that in spite of attempts to contain and then decrease problem properties, notorious slumlords like Khan, Moghul, and Reitman seem to continue adding to their empire. The proposed changes would put a stop to that by...
...making it so that if a landlord has one revocation of a rental license, they cannot add to their rental portfolio for three years. It wouldn't stop slumlords from buying property; there's not much we can do about THAT. It would, however, limit the properties they can legally rent out if they have license revocations.
The proposals list standards that could result in revocations:
- Unpaid required license fees
- Unpaid fines & fees owed to the City of Minneapolis
- Unpaid taxes owed to the County
- Licensee must satisfy judgments arising out of the operation of a rental property business
- Unpaid water bills owed to the City of Minneapolis
- Licensee must have a current & complete rental license application
- Rental application fees taken by landlords from prospective tenants requirements
- The Licensee must maintain a current register of tenants
- The Licensee must submit the numbering scheme of the units along with their applications
- A licensee must inform prospective tenants of pending mortgage foreclosure involving the licensed property
- Licensee shall provide recycling services in licensed properties containing more than two (2) dwelling units
- Dwellings shall not exceed maximum number of dwelling units by the Zoning Code
- Dwellings cannot be over-occupied or illegally occupied
- Dwellings cannot be converted to rooming units in violation of the Zoning Code
- Licensee cannot have repeated nuisance violations at the license properties
- Licensee rental property shall not be in substandard conditions
- The Licensee shall allow Regulatory Services to perform a rental license review inspection
- Licensee shall not have violations of unpermitted work at their license properties
- Adverse license action may be based on good cause