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1. What is the Tenant Notification Ordinance?

Properties containing three or more rental housing units at the time of sale must provide notice to all tenants and the City that a transfer of ownership has occurred. Once notice is provided, a three-month "tenant notification period" begins. During the 90-day period, the new owner may be required to pay relocation benefits to a tenant if the owner issues a non-renewal without cause or non-renewal due to rescreening. The new owner could also be subject to paying relocation assistance if they increase the rent, re-screen existing residents, or implement a material change to the lease resulting in a tenant giving the notice to terminate their lease.

2. What does this mean for renters?

Upon sale of a property, tenants in New Brighton are no longer subject to immediate changes to their rental terms that could impact their housing. Renters will be given a minimum of 90 days grace time before changes can be made by a new owner. If the required grace time is not provided by the new owner, a tenant may be entitled to relocation assistance in the amount of three months' rent.

3. Why was this ordinance adopted?

The city is concerned about the displacement of tenants residing in properties that have been sold to a new owner. The ordinance creates a 90-day period of time in which residents can work with housing support resources and seek alternative housing if they are facing lease non-renewals without cause, unaffordable rent increases, new screening criteria requirements, or other material changes to their rental agreement that force a move.

4. When does the ordinance apply?

The ordinance applies when a rental housing property with three or more rental units transfers ownership.

5. Who needs to be notified?

The new owner must notify all tenants and the City of New Brighton. The 90-day grace period begins upon receipt of the notice.

6. Are there income restrictions that apply?

No, the ordinance applies to all housing buildings with three or more rental units regardless of the amount of rent charged or the tenant's income.

7. Does a tenant need to move out during the three-month tenant notification period to qualify for relocation assistance?

No. Provided the qualifying event triggering relocation assistance occurs within the 90-day notice period, relocation fees must be paid in accordance with the ordinance.

8. Does the ordinance apply if the management changes in the building?

No, the ordinance only applies if the ownership of the property transfers.

9. When does the new owner have to provide relocation benefits?

A new owner would be required to pay relocation assistance if during the three-month tenant notification period the new owner:

• Raises the rent and the tenant terminates his or her rental agreement due to the rent increase;
• Requires existing tenants to be re-screened or comply with new screening criteria and the owner or tenant terminates the tenant’s lease;
• Does not renew the tenant’s rental agreement without cause; or
• Imposes a material change in the terms of the lease and the owner or tenant terminates or does not renew the tenant’s lease.

Relocation assistance may also be required if material changes to lease terms are implemented by new ownership in the first 30 days immediately following the end of the three-month tenant notification period IF such changes were not disclosed in the notice.

10. Does a transfer of sale include an ownership transfer to an immediate family member? Or as the result of inheritance?

If it is an actual transfer of ownership title that was not previously in place, it would be considered a sale and the ordinance would apply.

11. Would the policy apply to bank-owned or foreclosed properties?

Yes, all housing properties with three or more rental units transferring ownership through the sale of the property would be required to comply with the ordinance. In the case of a foreclosed property, the three-month notification period will begin when the redemption period has expired and the new owner has taken possession of the property.