Committee imposes 12‑point conditions on 22 rental licenses tied to unpaid taxes and repeated code violations

The Business, Housing and Zoning Committee voted on March 4, 2025 to impose new conditions on 22 rental dwelling licenses held by Hussain (Hussain) Khan and Mir Ali after staff presented findings from an administrative hearing.

Assistant City Attorney Joe Jensen summarized the hearing officer’s findings and the city’s case: the license holders owe at least $156,697.90 in delinquent Hennepin County property taxes; owe at least $18,037.91 to the City in unpaid administrative citations, reinspection fees and nuisance abatements; and the record showed multiple operational failures at their properties, including 223 code violations over two years, 32 nuisance or snow abatements, 26 administrative citations, 14 reinspection fees, 42 late fees, five court actions on behalf of tenants, and three instances in 2024 of renting units in buildings later condemned, plus 45 open violations as of the start of the process.

The hearing officer recommended a package of conditions intended to secure compliance. The committee adopted the hearing officer’s recommendation; conditions include (summary): compliance with rental licensing standards and state landlord obligations (chapter 504B), resolving open violations prior to new occupancy, allowing in‑person inspections with the owner present (with a possible 18‑month relaxation to permit photo evidence if compliance is sustained), attending an owner workshop, submitting a written management plan within 30 days, ensuring any temporary housing has an active license and no open violations, and payment or negotiated resolution of delinquent taxes/assessments within 90 days. The hearing officer recommended the measures remain in effect for 36 months; the department asked the committee to impose conditions as recommended. Appellant Hussain Khan requested a modification to a 12‑month period and asked the city to accept county payment arrangements (for example, a confession of judgment) as satisfying the tax requirement.

Vice Chair Ellison moved to follow staff recommendation and impose the conditions; the committee voted by voice and the motion carried. Several council members spoke in support of the department’s approach, citing the scale of violations and the need to protect tenants. Council members also noted the city could still initiate tenant relocation assistance (TRA) in future cases if conditions are breached and displacement risk arises.

The committee’s action does not revoke licenses but requires the owner to meet the specified conditions. Staff will monitor compliance and may return with enforcement actions if the licensees fail to meet the conditions.