Advance Notice of Sale Ordinance to Protect Affordable Multi-Housing
By Eric Myers on Monday, November 12th, 2018
The Minneapolis City Council approved a provision designed to preserve affordable rental housing. Provisions amending title 12 chapter 244 of the Minneapolis Code of Ordinances referred to as Advance Notice of Sale requires the owners of certain multifamily properties to give the city a 60-day notice prior to making an ‘Affordable Housing Building’ available for sale.
This provision targets buildings that have five or more units with 20% or more of these units affordable to households earning 60% of the area median income or less. The goal is to support the market for preservation buyers and keep these units affordable, doing what we can to prevent displacement and keep rising rents in check. “Right now, tenants as well as buyers interested in keeping those units affordable, lack the time and resources to do so. Or, worse yet, they’re completely unaware these sales are happening. This ordinance will help to change that,” said Councilmember Schroeder.
This provision also includes protections for tenants. Owners are required to notify residents of plans to sell a property through postings in buildings’ common areas. Then, after a sale happens, tenant protections – including relocation assistance — will be in effect for 90 days. “Preservation is our most cost-effective pathway to safeguard existing affordable housing, said Schroeder.”
The ordinance has an April 1, 2019 effective date. REALTORS® are advised to be aware of this ordinance when assisting Sellers of Multi-Family Affordable Housing Buildings, as the ordinance’s notice requirement will impact the available or ‘on-market date’ timeline.
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