SF726 (Legislative Session 94 (2025-2026))
Exception repeal allowing local government to control rents if approved by the voters
AI Generated Summary
Purpose
Explain and limit how local governments can influence rents. The bill would remove the existing option for cities, counties, and towns to impose or renew rent control on private residential properties, and keep only a few narrow allowances for local governments.
Main provisions
- Prohibition on rent control: No local government (city, county, or town) may adopt or renew any law or ordinance to control rents on private residential property.
- Narrow allowed activities (still permitted): The bill preserves four limited authorities for local governments: 1) Manage or control property in which the government has a financial interest through a housing authority or similar agency. 2) Contract with a property owner. 3) Act as required or authorized by federal or state laws or regulations. 4) Mediate between property owners and tenants for the purpose of negotiating rents.
- Repeal of the voter-approved exception: The bill repeals the existing subdivision that allowed rent control if approved by voters, removing the mechanism for local governments to adopt rent control by voter referendum.
- Tax classification note: The bill clarifies that low-income rental property can still be classified as class 4d for tax purposes under a separate statute (section 27313, subdivision 25).
- Effective date: The bill includes a section for when it would take effect, but the specific date is not shown in the excerpt provided.
Significant changes to existing law
- Ends local rent control authority: Local governments can no longer pass or renew rent control ordinances or follow a voter-approved path to impose rent control.
- Keeps limited exceptions: Local governments can still engage in targeted activities listed above (housing authorities, contracts with owners, compliance with laws, and mediation) within the scope of rent-related matters.
- Maintains tax classification option: Keeps the ability to classify certain low-income rental properties as class 4d for tax purposes.
Practical implications
- For residents and tenants: Reduced likelihood of new local rent control policies being enacted; rent stabilization at the local level would not be created through typical city or county ordinances, aside from the narrow exceptions.
- For local governments: They would need to rely on the specified limited tools (e.g., housing authorities or mediation) rather than broad rent-control powers.
- For property owners: Potentially less regulatory risk from new local rent control measures, but still subject to the existing federal/state laws and the allowed mediation process.
Effect on tax classification
- Low-income rentals can still be classified as class 4d for property tax purposes, per the bill’s wording.
Effective date
- An effective date is provided in the bill, but the exact date is not shown in the excerpt.
Relevant terms rent control; private residential property; statutory or home rule charter city; county; town; ordinance; housing authority; mediate; negotiating rents; voter approval; Minnesota Statutes 2024 section 4719.996; subdivision 1; subdivision 2; repealer; class 4d; section 27313; subdivision 25; low-income rental property; local government.
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 27, 2025 | Senate | Action | Introduction and first reading | ||
| January 27, 2025 | Senate | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [
"Explicit enumerated exceptions to the rent-control ban: (1) to manage or control property through a housing authority or similar agency; (2) to contract with a property owner; (3) to act as required or authorized by laws or regulations of the United States government or Minnesota state government; (4) to mediate between property owners and tenants for the purpose of negotiating rents."
],
"removed": [],
"summary": "Prohibits local governments from adopting or renewing rent control on private residential property, except as provided in subdivision 2. preserves certain rights for housing authorities, contracts with property owners, compliance with federal/state law, and mediation between owners and tenants.",
"modified": [
"Amends subdivision 1 to codify a prohibition on rent control by local governments and to spell out explicit permissible activities."
]
},
"citation": "Minnesota Statutes 2024 section 4719996",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [
"Repeals the voter-approved exception to rent control in subdivision 2."
],
"summary": "Repeals subdivision 2, which previously provided a voter-approved exception to the rent-control prohibition.",
"modified": [
"The prohibition is now without the voter-approved exception due to the repeal."
]
},
"citation": "Minnesota Statutes 2024 section 4719996",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-references the classification of low-income rental property as class 4d under Minn. Stat. § 273.13, subd. 25.",
"modified": [
"Affirms or references that low-income rental property is classified as class 4d under Minn. Stat. § 273.13, subd. 25."
]
},
"citation": "Minnesota Statutes 2024 section 273.13",
"subdivision": "subdivision 25"
}
]Progress through the legislative process
In Committee