Northside renters might win David and Goliath battle with corporate landlord
Shanika Henderson addresses reporters following a city council vote that forces Front Yard Residential to be accountable for conditions of its rental properties. Photo by David Pierini
By David Pierini, Editor
A corporate landlord with more than 200 homes in North Minneapolis has agreed to upgrade dangerous conditions plaguing its properties after the city threatened to revoke its rental license.
The Minneapolis City Council today voted to accept a two-year agreement with Front Yard Residential, which is facing mounting code violations, charges of neglect and a lawsuit filed by the state Attorney General.
It was a major victory for tenants of the formerly named HavenBrook Homes, which organized and campaigned for safe living conditions.
“I am very excited about today,” said Shanika Henderson, who rents a home on Girard Avenue North. “We appreciate the city holding this private equity landlord accountable.”
At one point last year, city records showed 378 open violations among the 215 North Minneapolis homes owned by Front Yard Residential, part of the portfolio of Pretium Partners, a hedge fund based in New York. It is the second largest property owner in the country with more than 55,000 rental homes.
In January 2022, North News reported on some of the tenants’ efforts to get repairs made and hold property owners accountable for the conditions under which they lived. The following month, Attorney General Keith Ellison sued the owners for keeping its properties “uninhabitable” for tenants.
Tenants reported a wide range of problems, including mold, leaking roofs, shoddy flooring, going days without heat, pest infestations and crumbling foundations. Some described getting served unnecessary fees and rent increases. Their calls to property managers went unanswered.
So they organized with the help of Inquilinxs Unidxs Por Justica. Tenants kept records of their requests for repair and calls to 311. Some put their rent in escrow, held news conferences and attended meetings where they could corner some of Pretium’s investors.
“We had to hit them hard where the money is,” Henderson said.
The offensive started to work. There was an uptick in inspections, court-ordered repairs and Ellison’s lawsuit.
This past December, lawyers for Front Yard Residential signed the agreement that was adopted by Council members and went into effect today. Representatives of Front Yard Residential could not be reached for comment.
The three-page agreement keeps the homes now managed by Progress Residential on a strict respond-and repair schedule as determined by city inspectors. The company must respond to problems with heating, ventilation, air conditioning and water leaks within 24 hours. It must also maintain a 24/7 maintenance telephone line.
Progress Residential agrees to allow tenants to move out without a lease penalty if life-safety issues are not resolved by the due date. The management company must also pay relocation assistance to renters if a property is condemned.
Front Yard Residential can not purchase additional properties until it shows it has consistently met the conditions of the agreement consistently for six months. The city can revoke the rental license on individual properties or the entire portfolio.
“Oftentimes, the critical issues are not addressed by the due date set by inspectors, including broke fire alarms, dirty air vents, missing floor joists in the basement…cracking foundation and caving ceilings,” said Angela Bonfiglio, an organizer with Inquilinxs Unidxs Por Justica. “Many renters took matters into their own hands and got better results through legal action.”