SF3599

Purpose

This bill changes how eviction actions for nonpayment of rent work by adding a redemption option. It aims to allow tenants to regain possession after falling behind on rent by meeting certain conditions, while also clarifying how payments and rental assistance interact with the eviction process.

Main provisions

• Redemptive option in nonpayment eviction
  • A landlord may sue to recover possession for nonpayment of rent even if the lease has no reentry clause.
  • The action is treated as a demand for rent.
  • If the tenant provides evidence of payment (see below), there is a rebuttable presumption that rent has been paid.
  • The landlord can present other evidence to rebut that presumption.
  • The tenant may redeem and be restored to possession before the landlord gets possession, by paying the arrears, interest, court costs, and an attorney’s fee not to exceed 5 (amount not further specified), plus meeting other lease covenants.
  • Redemption can be supported by a written guarantee from an eligible government or nonprofit entity that administers a rental assistance program and has funds available.
• Evidence and presumption of payment
  • The presumption of payment applies if the tenant shows one or more money orders or original receipts totaling the rent due, with dates corresponding to when rent was due, and money orders payable to the landlord.
  • The presumption can be rebutted by the landlord using a business record showing the tenant has not paid.
• Guarantees and funding for redemption
  • The redemption amount may be guaranteed by:
  • A federal, state, or local government entity, or
  • A 501(c)(3) tax-exempt organization that administers a government rental assistance program.
  • The guarantor must have sufficient funds and commit to providing those funds to the landlord or a third party as agreed, and must certify under penalty of perjury that funds will be provided.
• Conditions for payment of arrears and court process
  • If the tenant has paid into court the arrears but cannot pay the required interest and attorney fees, the court may allow the tenant to pay those amounts into court and be restored to possession within the same period if the court stays the order to vacate.
  • Parties may agree in writing, before or after starting an eviction action, that partial payment of arrears accepted by the landlord can be applied to the balance due without waiving the eviction action.
  • Payments must be applied first to rent from prior rental periods before applying to rent claimed for the current period, unless the court finds that prior rents have been waived.

Significant changes to existing law

• Adds a formal redemption mechanism in eviction actions for nonpayment of rent, creating a path for tenants to regain possession by paying arrears, costs, and fees plus satisfying lease covenants.
• Introduces a presumption of payment based on money orders or receipts, with a landlord-facing rebuttal option through business records.
• Allows redemption to be funded or guaranteed by eligible government or nonprofit rental assistance programs, expanding access to funds beyond the tenant’s own payment.
• Permits partial payment arrangements to be applied to overall balances without automatically waiving the eviction action.
• Establishes a priority for applying rental payments to older arrears before current period rent, unless waived by the court.

Practical implications

• For tenants: More avenues to stay in or regain a residence if they can arrange arrears payment, secure guarantees from eligible funders, or use court-supported payment plans.
• For landlords: A structured path to recover arrears while potentially receiving guaranteed funds to cover rent through eligible agencies or organizations; still retains ability to challenge presumed payments with proper records.
• For courts: New procedures to manage redemption timelines, guarantees, and allocation of payments, and to consider stays of eviction orders when redemption payments are made.

Relevant terms eviction, nonpayment of rent, redemption, rent arrears, money orders, receipts, presumption of payment, landlord, tenant, business record, guarantee, federal agency, state agency, local unit of government, 501(c)(3), tax-exempt status, rental assistance program, penalty of perjury, funds, stayed order to vacate, section 504B.345, prior rental periods, current rental period, costs of the action, attorney’s fee, guardianship of funds (implied), partial payment.