St. Paul rent-control ballot initiative: How would it work?

Frederick Melo, Pioneer Press, St. Paul, Minn.
·2 min read

Sep. 24—On Nov. 2, St. Paul voters will determine whether to enact a new "rent stabilization" mandate that caps annual rent increases at 3 percent. Here are the details:

Ballot language

"Should the city adopt the proposed ordinance limiting rent increases? The ordinance limits residential rent increases to no more than 3 percent in a 12-month period, regardless of whether there is a change of occupancy. The ordinance also directs the city to create a process for landlords to request an exception to the 3 percent limit based on the right to a reasonable return on investment. A 'yes' vote is a vote in favor of limiting rent increases. A 'no' vote is a vote against limiting rent increases."

Exceptions

While the process for seeking an exemption has yet to be determined, the city council and city staff would be expected to create a system where St. Paul landlords can seek an exception to the cap if they are investing in a major remodel of their apartments, among other situations that might warrant temporary relief.

Proponents

Organizations such as the Alliance, TakeAction Minnesota, the Frogtown Neighborhood Association and the West Side Community Organization have formed the Housing Equity Now St. Paul (HENS) coalition. They note that rents have climbed faster than wages and sometimes faster than inflation, and tenants are vulnerable to predatory practices such as sudden price hikes. St. Paul City Council members Mitra Jalali and Nelsie Yang have canvassed in support of the ballot initiative.

Key quote

"A growing number of corporate and predatory landlords have chosen profit over people, spiking rents to make more money and forcing our neighbors who rent out of their homes," reads a statement from the HENS. "Rent stabilization is a proven policy that protects tenants from unreasonable rent spikes, accounts for the operating expenses of landlords and is cost effective for our city and taxpayers."

Proponent website: housingequitystp.org

Opponents

At least four city council members are opposed. Council President Amy Brendmoen, Chris Tolbert, Dai Thao and Jane Prince have all expressed concern that developers will limit maintenance and production of new units, undermining affordability. Members of the St. Paul Area Association of Realtors and the Minnesota Multi Housing Association point to the examples of New York and San Francisco, where rent control has limited tenant turnover. With few existing tenants willing to give up a rent-controlled apartment, newcomers to those cities must compete for a limited number of available units, which helps keep prices high.

Key quote

"Rent control in other cities is restricted to certain buildings or tenants," reads a statement from the Minnesota Multi Housing Association's Sensible Housing Ballot Committee. "But this measure covers all tenants, regardless of income, and all rental units in St. Paul, regardless of building size or number of units. This measure goes too far. No one knows how much it will cost or how it will be enforced."

Opponent website: ThinkTwiceStPaul.com