Sellers should make sure that potential buyers are aware of the ordinance either directly or through their broker.
If you are planning on selling a multiple-family rental housing building having 5 or more dwelling units where at least 20 percent of the units rent for an amount that qualifies as “affordable” in Ramsey County, additional requirements will apply. Please contact the Community Development Department for more details.
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Properties containing 5 or more rental housing units at the time of sale must provide notice to all tenants and the City that a transfer of ownership has occurred. Once notice is provided, a three-month “tenant notification period” begins. During the 90-day period, the new owner may be required to pay relocation benefits to a tenant if the owner issues a non-renewal without cause or non-renewal due to rescreening. The new owner could also be subject to paying relocation assistance if they increase the rent, re-screen existing residents, or implement a material change to the lease resulting in a tenant giving notice to terminate their lease.
Upon sale of a property, tenants in Roseville are no longer be subject to immediate changes to their rental terms that could impact their housing. Renters are given a minimum of 90 days grace time before changes can be made by a new owner. If the required grace time is not provided by the new owner, a tenant may be entitled to relocation assistance in the amount of three months’ rent.
The City is concerned about the displacement of tenants residing in properties that have been sold to a new owner. The ordinance created a 90-day period of time in which residents can work with housing support resources and seek alternative housing if they are facing lease non-renewals without cause, unaffordable rent increases, new screening criteria requirements, or other material changes to their rental agreement that force a move.
The ordinance applies when a rental housing property with 5 or more rental units transfers ownership.
The new property owner must notify all tenants and the City of Roseville. The 90-day grace period begins upon receipt of the notice.
No, the ordinance would apply to all rental buildings with 5 or more rental units regardless of the amount of rent charged or the tenant’s income.
No. Provided the qualifying event triggering relocation assistance occurs within the 90-day notice period, relocation fees must be paid in accordance with the ordinance.
No, the ordinance only applies if the ownership of the property transfers.
A new owner would be required to pay relocation assistance if during the three-month tenant notification period the new owner:
Relocation assistance may also be required if material changes to lease terms are implemented by new ownership in the first 30 days immediately following the end of three-month tenant notification period IF such changes were not disclosed in the notice.
If it is an actual transfer of ownership title that was not previously in place, it would be considered a sale and the ordinance would apply.
Yes, all rental properties with 5 or more rental units transferring ownership through the sale of the property would be required to comply with the ordinance. In the case of a foreclosed property, the three month notification period will begin when the redemption period has expired and the new owner has taken possession of the property.
If the property has 5 or more rental units, a new owner is required to comply with the requirements of the Roseville Tenant Notification Ordinance.
New building owners are also responsible for obtaining a new rental license for the property regardless of whether the present owner has a license for the current year.
If you need any help understanding the ordinance or your next steps as a new owner, please contact the Community Development Department. City staff wants to ensure all of your questions are answered well in advance of any sale.
This ordinance does not prohibit a new owner from taking the actions listed above. However, the owner would be required to pay resident relocation benefits if they issue lease non-renewals (without cause or due to re-screening), or take any of these actions during the 90-day tenant notification period and the resident gives notice to move as a result.
If the new owner intends to increase rent, require existing tenants to be rescreened, terminate or not renew housing unit rental agreements, or impose a material change in the terms of the lease within the 30 days immediately following the end of three-month tenant notification period, the owner must disclose this information to tenants within the required notice. Failure to do so may subject the owner to penalties as outlined in the ordinance. After that time, the Roseville Tenant Notification Ordinance would no longer apply and owners can manage the property in accordance with their preferred management practices.
You can renew the lease, but any rent increases must be effective following the expiration of the 90-day tenant notification period or the owner may be subject to paying relocation benefits.