Large turnout for rent-stabilization and tenant-protections hearings; council continues both measures to May 7

St. Paul council chambers were filled on April 2 as the City Council held extended public hearings on two linked items: a proposed amendment to the city’s rent-stabilization ordinance and a proposed tenant-protections ordinance.

The rent-stabilization amendment (ordinance 25-29) would alter the city’s “new construction” exemption by adopting a fixed date: residential buildings that received their certificate of occupancy in 2005 or later would remain exempt. Staff presented analysis showing that the vast majority of St. Paul rental housing (by certificate-of-occupancy date) was built before 2005 and therefore would remain covered by the ordinance; staff also said the fixed-date approach provides financing certainty for developers. Supporters of the amendment — including housing developers, several business groups and development advocates — argued the change is necessary to encourage new housing production, attract private investment and grow the tax base. Opponents — tenant advocates, organizers and some residents — said the change effectively exempts future housing from long-term tenant protections and risks eroding the promise made by voters in 2021. Multiple speakers urged a time-limited exemption (for example 20–30 years) rather than a permanent, open-ended cutoff.

The tenant-protections proposal (ordinance 25-31, Chapter 193) would, if adopted, introduce several changes the city previously had and later repealed: a security-deposit and prepaid-rent cap equal to one month’s rent (with limited exceptions), clearer tenant-screening rules that either use a published uniform criteria or an individualized assessment process (including limitations on considering older or expunged criminal convictions), a requirement that landlords provide at least 30 days’ written notice before filing an eviction for nonpayment, notice-of-sale protections and a relocation-assistance requirement for affordable housing buildings that change ownership (three months’ rent), and an administrative enforcement path through the Department of Safety and Inspections (DSI). The proposed ordinance also requires landlords to disclose screening criteria and to allow applicants an opportunity to submit supplemental information.

City staff (Angie Weese, Director of Safety and Inspections; Melanie McMahon, Deputy Director of Planning and Economic Development) walked the council and public through background, the intent of the changes, and technical definitions (for example, how the ordinance would define an “affordable housing building” and the certificate-of-occupancy approach used to measure the new-construction exemption). Staff said the city will provide materials in Limited English Proficiency languages through the Office of Financial Empowerment and that DSI will administer the tenant-protections ordinance if the council adopts it.

Public testimony lasted multiple hours. Supporters of the rent-exemption amendment argued it would unlock private capital, accelerate projects such as Highland Bridge and produce more units that — over time — help lower rents by increasing supply. Supporters of the tenant-protections ordinance emphasized the 30-day notice for nonpayment, screening transparency and security-deposit limits as essential to household stability. Opponents of the rent-exemption argued that the voter-approved 2021 ordinance should not be weakened and that exempting new development forever could permit tear-downs of existing control-covered housing.

After hearing hours of testimony the council voted to continue both matters and keep the public hearings open until May 7 to allow additional written and in-person comments and for staff to respond to questions raised during the hearing. Councilmembers said they wanted more time to review the extensive public testimony and written materials submitted to the record.

Key clarifications from staff: - The proposed rent-exemption change uses the certificate-of-occupancy date (2005 and after) to define buildings that would remain exempt; staff emphasized the change largely preserves coverage for older rental stock while increasing predictability for financing of new construction. - The tenant-protections draft caps security deposits and prepaid rent at one month, allows an exception when a landlord’s screening standards would otherwise exclude an applicant (the landlord may require an additional month in narrowly defined circumstances), and requires a 30-day pre-eviction notice for nonpayment of rent so tenants can seek rental-assistance resources. - The tenant-protections draft specifies categories of criminal-history information that cannot be used as an automatic bar (for example, arrests without conviction, expunged records, certain older convictions) and sets look-back windows for some felony/misdemeanor categories; the ordinance allows individualized assessment where landlords rely on different criteria.

Next steps: Both matters remain under consideration with the public hearing open through May 7. Staff committed to follow-up memos that respond to technical and implementation questions raised at the hearing.