Home News Property owners file lawsuit challenging St. Paul’s rent control law

Property owners file lawsuit challenging St. Paul’s rent control law

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Two companies based in Bloomington and Minnetonka filed a federal proceeding against St. Paul on Thursday, claiming that the city’s new rent management ordinance violates their constitutional due process and property rights. did.

In a complaint on page 59, a Loft lawyer at Woodstone Limited Partnership and Farmers Market LLC asked the court to stop the city from taking effect. 3% annual limit for voters to raise housing rents approved last fall..

Woodstone Limited Partnership is interested in building an apartment in the Highland Park district of St. Paul. Meanwhile, Lofts at Farmers Market LLC owns an apartment building in Lowertown.

The complaint states that the damages that both companies suffered as a result of the law include a loss of income and a loss of ability to execute the lease and seek relief in court.

“Affordable housing is a community-wide problem, and real estate owners like plaintiffs are forced to subsidize and bail out, not the entire community,” the complaint said and the law amended Article 5. Claimed to be in violation of.

He also claims that the ordinance violates Article 14 of the Constitutional Amendment because it has nothing to do with inflation. In addition, the proceedings characterize the city’s process of seeking exemptions by real estate owners as complex and arbitrary, claiming that St. Paul does not have sufficient staff and resources to handle the request. ..

The complaint contains six counts against the city, including allegations of a state constitutional violation, and requires a jury trial.

“The purpose of the ordinance is to create more affordable homes for the people of St. Paul, which … has the opposite effect,” real estate owner lawyer Joseph Anthony said in an interview on Friday. ..

St. Paul’s City Council, Mayor Melvin Carter, and Safety Inspection Director Angie Wiese were also nominated as defendants.

Carter spokesman Kamal Baker said the city had not been filed as of Friday afternoon.

In a statement, Baker said, “The city is working to enforce this ordinance in response to the wishes of St. Paul’s voters, supporting safe, stable and affordable housing options for all residents. We are still working on that. “

landlord Successful challenge Another St. Paul’s policy aimed at protecting tenants in federal court last year saw the 2020 law passed by the city council to limit the background checks of potential lessees as unconstitutional. It’s time to be done.

The St. Paul’s Rent Management Ordinance is considered one of the toughest policies of its kind because it does not allow landlords to raise rent when a renter moves out, does not exempt new construction, and is not tied to inflation. ..

However, the change may be imminent. Earlier this year, Carter convened a committee of 41 stakeholders to discuss possible legislative changes. The final report from that group is expected in the coming weeks.

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