Affordable housing and the overall rental housing marketplace continues to face issues all over the USA. Across the nation challenges in rental housing continue to grow exponentially. Demand continues to grow and, subsequently, so does cost to rent; thereby forcing parts of the population to become a greater risk for homelessness.
As rental housing becomes increasingly scarce, the cost to rent increases in a typical supply and demand scenario, but the real challenge is that families are getting squeezed out of housing and options are becoming limited.
The ordinance in Minneapolis seeks to limit the use of criminal records history and evictions records. In theory it is thought this practice will allow more individuals access to housing.
From StarTribune.com (Aug 29, 19):
The Minneapolis City Council’s Housing Policy and Development Committee approved moving the ordinance to the full council after the three-hour public hearing. The full council is expected to take it up next month.
The ordinance would limit how far back landlords can consider an applicant’s criminal and eviction histories, cap security deposits and limit how credit scores are used.
The public hearing caps a bitter summer long standoff between tenants and landlords that has put Minneapolis’ struggle to solve — or at least curb — the city’s affordable-housing crisis on full display. startribune.com/minneapolis-tenants-landlords-square-off-over-limits-on-screening-tenants/558625472/
The proposal will certainly affect landlords.
From StarTribune.com (Aug 29, 19):
The proposed rule would mean landlords can’t deny an applicant on the basis of a misdemeanor if the case is three-plus years old and seven-plus years old for felonies, and in certain cases of arson, assault or robbery more than 10 years old. Council members are also aiming to curb the effect of eviction judgments by not allowing them to be considered if they are more than three years old. The ordinance would also limit how credit screenings are used, including preventing landlords from denying an applicant because of insufficient credit history. The proposed ordinance would also cap the amount landlords can charge for a security deposit at a month’s rent. ibid
Opponents let their opinions be known as well, citing that safety could be compromised and the true cause of the housing crisis, lack of affordable housing, has not been addressed.
From MinnPost.com (Aug 28, 19):
The Minnesota Multi Housing Association (MHA), which advocates on behalf of some 1,900 property owners, disagrees. At the hearing, members of the group reiterated their argument that the council has embarked on a misguided effort to increase renters’ access to housing — one that could have unintended consequences for the city’s rental market and tenants’ safety
— while doing nothing to get at the root cause of the issue: a lack of affordable housing. minnpost.com/metro/2019/08/minneapolis-holds-first-public-hearing-on-controversial-tenant-screening-proposals/
The decision in Minneapolis has not been finalized and there is another month before the final vote is taken. But with housing an issue across the country many municipalities may look to Minneapolis as the road map of managing housing challenges.
In the end a best practice remains that landlords and property managers should work with a well-qualified third-party tenant screening agency in order to stay compliant with existing law as well as potential law.
To learn more about how new ordinances like the one in Minneapolis; if it becomes law would affect landlords and the overall tenant screening process, especially how criminal background records and eviction records can be used read recent TenantScreeningUSA.com press release: Proposed Rule Change in Minneapolis Points to Challenge in Rental Housing