Group offers recommendations for St. Paul rent stabilization

In another step towards implementing rent stabilization policies in St. Paul, the City Council received an almost 300-page report from a working group Wednesday that was tasked with making policy recommendations.

St. Paul voters approved a rent stabilization ordinance last November that capped most annual rent increases at 3 percent. Some property owners have blamed the new policy for slowing new construction in the city.

The 41-member stakeholder group was made up of residents, real estate professionals and advocates for renters or affordable housing, among others.

The report recommends the city institute the 3 percent cap on annual rent increases, a 15-year exemption from the policy for new construction and a just-cause provision requiring landlords to cite a reason when terminating a lease. The group is also recommending that the city allow landlords to “bank” increases in years where they require rental increases of less than 3 percent.

The city council still needs to adopt any measures. St. Paul Mayor Melvin Carter has said in the past that he’d like to see new construction be exempt from the policies for 15 years.

Advocates for renters are pushing for the city of St. Paul to adopt the “just cause” provisions in their rent stabilization program. The policy would prevent landlords from terminating a lease without a good reason, said Tram Hoang, the director for policy and research for the Housing Justice Center.

”If you know what your lease is, and most people do because they read their lease before they move in, and you break it, you can expect that if you are asked to move, that is the reason,” Hoang said. “Or if you have not been paying rent or have late rent too many months in a row, those are some common reasons that cities and states have listed as just cause so people actually know why they’re being removed from their home.”

Some property owners argue that the rent stabilization measure is the strictest in the nation, and that it’s slowed construction projects in the city. Property owners argued in a lawsuit filed last month that the rent stabilization policy is unconstitutional.

The Minnesota Multi Housing Association, which opposed the rent stabilization ballot question, called for a “full repeal of rent control.”

“The St. Paul Rent Stabilization Stakeholders Group report fails to provide clear guidance to City policymakers, property owners, and renters,” according to the group’s statement. “The group’s process and their product are woeful, and will only cause further delay in building more housing.”

Rent stabilization supporter and renter Debra Howze said at a press conference organized by supporters of rent stabilization policies that people in the city need ways to combat skyrocketing prices.

"I don't think that anyone has seen wage increases that keep up with these rent hikes," she said.

The working group was appointed by the mayor in February, and has met 15 times to discuss proposals.

In November, Minneapolis voters approved a charter amendment allowing the city to enact rent stabilization or rent control measures. A Minneapolis City Council committee earlier this week moved forward the creation of a working group to analyze and recommend rent stabilization policies in Minneapolis.

• The rising price of paying the national debt is a risk for Trump’s promises on growth and inflation
• Minnesotans break their own record with $37 million donated to local nonprofits on Give to the Max Day
• SEC Chair Gary Gensler, who took aim at crypto industry, to step down in January
• House passes bill that would allow Treasury to target nonprofits it deems to support terrorism