Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
HF 685 is being drafted right now in the MN House with the following description:
"Corporate entities, developers, and contractors prohibited from converting single-family home into rental property unit." https://www.revisor.mn.gov/bills/bil...5&ssn=0&y=2023
It sounds like they might still be able to do it as long as it can be classified as affordable housing.
That said this could have significant implications for MN housing market and possibly others if a similar law gets adopted in other states.
It would also affect a lot of smaller businesses though. For example, there is a neighborhood in Minneapolis called Marcy Holmes where 82% of the homes are renter occupied (near the University of MN) and most of the neighborhood is SFH. Many of owners of SFHs in this neighborhood are small to medium sized corporations.
Yep, it'll take multiple court cases to establish case law for this kind of restriction. Furthermore, in its attempt to keep BigBadCorp, Inc. from being an absentee landlord for 10,000 houses, it'll prevent Mom and Pop form forming a small corporation to control risk for their three rental properties that they personally manage.
I believe legislators are less able to evaluate "unintended consequences" than the homeless guys down the street.
Yep, it'll take multiple court cases to establish case law for this kind of restriction. Furthermore, in its attempt to keep BigBadCorp, Inc. from being an absentee landlord for 10,000 houses, it'll prevent Mom and Pop form forming a small corporation to control risk for their three rental properties that they personally manage.
I believe legislators are less able to evaluate "unintended consequences" than the homeless guys down the street.
Apparently can't rep you now, but I agree with this 100%.
Yep, it'll take multiple court cases to establish case law for this kind of restriction. Furthermore, in its attempt to keep BigBadCorp, Inc. from being an absentee landlord for 10,000 houses, it'll prevent Mom and Pop form forming a small corporation to control risk for their three rental properties that they personally manage.
I believe legislators are less able to evaluate "unintended consequences" than the homeless guys down the street.
There have always been a lot of socialist undertones in MN. They should have learned their lesson, when the undesirables from Chicago came for all the "free stuff."
I wouldn't be so quick to defend large corporations which own hundreds or even thousands of single-family homes and rent them out. In effect, they are turning a neighborhood that is zoned for single-family homes into a business neighborhood because they are in fact operating a business in the neighborhood.
The thing that differentiates large corporations from small "mom and pop" owners is size/magnitude/scale. It's the exact same situation as differentiating between a guy who occasionally buys a car, fixes it up, and then resells it several months later and a car dealership that has a couple hundred used cars on their lot for sale. One is an individual whose actions are not detrimental to the neighborhood while the other is clearly operating a business which IS detrimental to the neighborhood and its R1 single-family zoning.
Another comparable situation is the differentiation between an individual who legally owns guns and occasionally sells a gun from his collection versus a person who is engaged in the business of buying and selling guns. If a person lives in a single-family residential neighborhood and legally purchases and occasionally sells a firearm, no FFL license is required. OTOH, if a person is constantly buying and selling firearms, then he is in the business of being a Firearms Dealer and must have a FFL license. Further, he can't operate a firearms dealership out of a R1 residential neighborhood. Size, magnitude, and scale are the differentiating factors.
I wouldn't be so quick to defend large corporations which own hundreds or even thousands of single-family homes and rent them out. In effect, they are turning a neighborhood that is zoned for single-family homes into a business neighborhood because they are in fact operating a business in the neighborhood.
The thing that differentiates large corporations from small "mom and pop" owners is size/magnitude/scale. It's the exact same situation as differentiating between a guy who occasionally buys a car, fixes it up, and then resells it several months later and a car dealership that has a couple hundred used cars on their lot for sale. One is an individual whose actions are not detrimental to the neighborhood while the other is clearly operating a business which IS detrimental to the neighborhood and its R1 single-family zoning.
Yes, and the above is exactly why I said that if this bill passes, there will be many litigations to determine what are allowable limitations and what are not. it might be 20 years before the whole thing settles down. While this might have the effect of causing large property-owning corporations to pause investment in Minnesota, it'll also have the effect of causing small landlords to hesitate before investing, and combined with other nonsense like squatters' rights, it may well cause a lot of those small landlords to pull out. When they pull out, there'll be some big corporations (the less scrupulous ones that are more heavily lawyered and ready for a fight) to come in and scoop up still more houses.
The devil's in the details and in the unintended consequences and so far in the 50 years I've been following US politics I have almost never seen an ability in legislators to evaluate said unintended consequences. Let's face it, they're not the sharpest knives in the drawer.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
