Dakota County District Court File No. C10214264
Considered and decided by Toussaint, Chief Judge, Lansing, Judge, and
1. A landlord who receives tax credits under 26 U.S.C. § 42 (2002) need only show "good cause" before terminating a tenancy.
2. Where a tenant commits numerous lease violations over the period of the tenancy, the "good cause" standard for eviction under 26 U.S.C. § 42 is met.
The opinion of the court was delivered by: Huspeni, Judge*fn1
Appellants Cynthia Washington and Clyde Penny challenge the district court's grant of a writ of recovery.*fn2 Respondent Cimarron Village, which is federally subsidized under 26 U.S.C. § 42 (2002), sought to evict appellants due to numerous lease violations throughout their tenancy. The district court found that the lease violations, considered in their totality, provided Cimarron Village with good cause to terminate appellants' tenancy. In challenging the grant of the writ of recovery, appellants argue that (1) the findings are insufficient to support an eviction because there is no finding of material noncompliance with the lease, and (2) the record does not support a finding that good cause existed to terminate appellants' tenancy. Because a finding of material noncompliance is not required when a tenancy is terminated pursuant to 26 U.S.C. § 42, and because the record supports a determination of good cause, we affirm.
In November 1997, appellant Cynthia Washington signed a lease with respondent Cimarron Village for the rental of an apartment at the Kidder Park Townhomes (Kidder Park) in Rosemount, Minnesota. The complex is federally subsidized under 26 U.S.C. §á42 (2002) (section 42).*fn3 Under the lease, Washington agreed to reside at the unit with her three children and was informed of the numerous policies that Kidder Park residents must follow, including those set out in a document entitled "Community Policies."
The lease agreement provides, in relevant part, that (1) only persons listed as residents can live in the apartment, (2) residents will not allow other persons to occupy the apartment without approval from management, and (3) residents are responsible for the conduct of their guests or visitors on the property. The Community Policies provide, in relevant part, that (1) guests must use only the visitor parking area, (2) parking permits may be used only by leaseholders, and (3)
[i]f any household receives 3 or more lease violations, they will be asked to leave Kidder Park [regardless of] the level or seriousness of the violation.
Under the terms of the lease, the tenancy can be terminated for (1) violations of the terms of the lease or the Community Policies; (2) police calls to an apartment for noise disturbances, domestic disputes, illegal substances, and other non-medical reasons; (3)áallowing unauthorized people to reside in the apartment; and (4) "failure to pay the rent or late payment history."
Cimarron Village informed Washington in August 1998 that it did not intend to renew her lease. Washington challenged this decision, arguing that because her lease was for a federally subsidized housing unit, it could not be terminated without "good cause." This court agreed, reversed the district court's grant of summary judgment to Cimarron Village, and remanded for further proceedings. Cimarron Village Townhomes, Ltd. v. Washington, No. C3-99-118, 1999 WL 538110 (Minn. App. July 27, 1999).*fn4 In doing so, this court noted that 26 U.S.C. § 42(h)(6)(B)(i), with its reference to 26 U.S.C. ...