In February, St. Paul Mayor Melvin Carter formed a group of stakeholders, including tenants, landlords, developers and advocates, to find ways to improve the rent ordinance. The group consisted of 41 people in total.
Edward Goetz, a professor at the University of Minnesota, is part of the group presenting two recommendations to the St. Paul City Council on Wednesday.
The first is a set of ideas that includes a 3% rent cap, some eviction protections for tenants, and even the ability for landlords to earn a “reasonable rate of return.”
Another key issue is exempting new builds from rental caps for 15 years. Mayor Carter announced last February that he supported an exemption for new construction.
The group’s second recommendation relates to increases in rental rates once a unit or property becomes vacant.
There are fears that “partial deconstruction of vacant units”, as it is called, could lead to rent increases well above 3%.
Housing advocates say they applaud the group’s recommendations, but say city council needs to define them clearly.