Tenants provided with a right to repair violations in a residential rental unit, notice required, and tenant permitted to make deductions from rent.

A bill for an act

relating to landlord and tenant; providing tenants with a right to repair violations

in a residential rental unit; requiring a notice; permitting a tenant to make deductions

from rent; proposing coding for new law in Minnesota Statutes, chapter 504B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin

[504B.386] TENANT RIGHT TO REPAIR TO REMEDY VIOLATIONS.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Right to repair.

new text end

new text begin

In lieu of a rent escrow action under section 504B.385,

a tenant may pay for the repairs in a residential rental unit after notice and an opportunity

to repair has been provided to the landlord as provided in this section. The tenant may

subtract the cost of the repairs from the tenant's future rent or receive a reimbursement as

provided in this section.

new text end

new text begin

Subd. 2.

new text end

new text begin

Noticed required.

new text end

new text begin

(a) Before contracting for repairs and paying for a repair to

the residential rental unit, the tenant must:

new text end

new text begin

(1) provide a written notice to the landlord at the address where the tenant sends rent;

new text end

new text begin

(2) call, text, or send an email or rental portal communication to the landlord, if the

telephone number or email address is known; and

new text end

new text begin

(3) notify the landlord of the repair that is needed and of the tenant's intent to deduct the

cost of the repair from the tenant's rent.

new text end

new text begin

(b) Except as provided under paragraph (c), the tenant must provide the notice required

under this subdivision at least 14 days before making any repairs.

new text end

new text begin

(c) For a violation as defined in section 504B.001, subdivision 14, clause (1), the

residential tenant must include a copy of the written notice of the code violation as provided

in section 504B.185, subdivision 2, if an inspection has occurred. The tenant must inform

the landlord of the tenant's intent to use the tenant's future rent to pay for the repairs when

the notice is provided.

new text end

new text begin

(d) For a violation as defined in section 504B.001, subdivision 14, clause (2) or (3), the

tenant must include in the written notice to the landlord information specifying the violation.

new text end

new text begin

Subd. 3.

new text end

new text begin

Opportunity to dispute.

new text end

new text begin

If the landlord disputes that a repair is required, the

landlord must send written notice to the tenant within 14 days of the tenant's notice and

arrange for a building official to inspect the property. If a landlord does not respond to the

tenant's notice within 14 days, the landlord waives the right to claim that a repair is not

required. If the inspection confirms that the repair is required or if an inspection does not

occur within 30 days of the landlord's written notice of dispute, the tenant retains the right

to initiate the repair.

new text end

new text begin

Subd. 4.

new text end

new text begin

Tenant contracting repairs; bids; notice.

new text end

new text begin

(a) If the landlord has not provided

the tenant with a scheduled repair date or the violation is not corrected within 14 days of

the tenant providing written notice under subdivision 2, the tenant may contract for repairs.

A tenant may contract for repairs under the same process in this section for necessary repairs

in a common area of a residential building if the repair is necessary for the safety and

operation of the building for tenants.

new text end

new text begin

(b) A tenant contracting for repairs under this section must obtain bids from two different

contractors or servicers that routinely repair or specialize in making the type of repair that

is needed and must choose the contractor or servicer with the lower bid. The tenant must

notify the landlord of each bid received within 24 hours of receiving a bid and must notify

the landlord of any scheduled repairs within 24 hours of scheduling the repair date.

new text end

new text begin

Subd. 5.

new text end

new text begin

Deduction; reimbursement.

new text end

new text begin

(a) The tenant must provide a payment receipt

to the landlord before subtracting the amount paid for repairs from the rent. The tenant may

reduce the rent for each rental payment owed until the total amount of the repair has been

paid. Any deductions made by a tenant under this section is limited to an amount equal to

rent payment for two months within a 12-month period. If the tenant's rent is subsidized in

whole or in part by a governmental agency, the deduction limitation of two months' rent

shall mean the fair market rent for the dwelling and not the rent that the tenant pays.

new text end

new text begin

(b) As an alternative to a tenant's deduction of rent, a landlord may directly reimburse

the tenant for the cost of repairs listed on a payment receipt.

new text end

new text begin

(c) A landlord must reimburse a tenant for any outstanding payments made by a tenant

under this section if the lease terminates before the tenant is able to deduct costs from future

rent.

new text end

new text begin

(d) Notwithstanding a tenant's payment for repairs that are deducted from rent under

this subdivision, nothing in this subdivision relieves a landlord from the requirements of

United States Code, title 26, section 6041, paragraph (a).

new text end

new text begin

Subd. 6.

new text end

new text begin

Retaliation prohibited.

new text end

new text begin

A landlord must not take adverse action against a

tenant who exercises the tenant's rights under this section if the adverse action is intended

as a penalty for the residential tenant's exercise of rights under this section. Adverse actions

include but are not limited to filing an eviction, issuing a notice of nonrenewal, increasing

monthly rent, increasing tenant's obligations under a lease, or decreasing services under a

lease. No person or tenant who complies with this section may be evicted for nonpayment

of rent because the person or tenant has elected to deduct the cost of work from rental

payments.

new text end

new text begin

Subd. 7.

new text end

new text begin

Private right of action.

new text end

new text begin

The tenant may bring an action against a person who

violates this section and the court may award to a prevailing tenant:

new text end

new text begin

(1) a rent reduction or rescission of the lease;

new text end

new text begin

(2) up to a $500 civil penalty for each violation; and

new text end

new text begin

(3) reasonable attorney fees.

new text end

new text begin

Subd. 8.

new text end

new text begin

Liability; rights to property.

new text end

new text begin

(a) A contractor or servicer who enters the

premises to make repairs under this section is liable to the landlord for any damage to

property.

new text end

new text begin

(b) Any new appliance acquired pursuant to this section is the property of the landlord.

new text end

new text begin

Subd. 9.

new text end

new text begin

Exemption.

new text end

new text begin

This section does not apply to:

new text end

new text begin

(1) emergency repairs under section 504B.381; and

new text end

new text begin

(2) short-term rental property, as defined in section 273.13, subdivision 25, paragraph

(b).

new text end