County District Court File No. 19HA-CV-16-3772
Phaedra J. Howard, Hellmuth & Johnson, P.L.L.C., Edina,
Minnesota (for appellant)
Strom, Sam Khoroosi, Robins Kaplan LLP, Minneapolis,
Minnesota (for respondent)
Considered and decided by Connolly, Presiding Judge; Ross,
Judge; and Schellhas, Judge.
termination of occupancy and membership in a housing
cooperative, a housing-cooperative member has no right to
redeem occupancy of premises or housing-cooperative
membership under Minnesota Statutes chapters 308A and 504B.
challenges the judgment in an eviction action that allows
respondent an opportunity to cure her defaults and redeem her
occupancy and membership in a housing cooperative. We affirm
the district court's judgment to appellant for recovery
of respondent's dwelling unit but reverse and remand for
immediate issuance of a writ of recovery and order to vacate.
Rolling Meadows Cooperative is a Minnesota nonprofit
cooperative corporation formed under Minnesota Statutes
chapter 308A to manage the affairs of a cooperative housing
community. When formed, Rolling Meadows executed a mortgage
and regulatory agreement and received financing from the
United States Department of Housing and Urban Development
(HUD). In May 2009, respondent Diane MacAtee entered into a
subscription agreement for the purchase of a membership in
Rolling Meadows. The subscription agreement entitled MacAtee
to occupy the premises under an occupancy agreement, approved
by the cooperative's board of directors and signed by the
parties. The subscription agreement required MacAtee to sign
the occupancy agreement and comply with its terms. MacAtee
signed the occupancy agreement in May 2009. The occupancy
agreement contained a lease term of one year, renewable for
successive one-year terms.
the HUD financing was in effect, Rolling Meadows was subject
to a HUD regulatory agreement, and HUD partly subsidized
MacAtee's and other members' housing. In 2015,
Rolling Meadows paid off its HUD loans and was released from
the regulatory agreement. HUD therefore no longer subsidized
members' monthly carrying charges.Rolling Meadows
consequently amended its bylaws to reflect the cessation of
HUD oversight and it increased members' monthly carrying
charges. MacAtee's monthly carrying charge increased from
$542 to $567 and, in April 2016, increased to $577. MacAtee
refused to pay any increase, refused to sign Rolling
Meadows's amended occupancy agreement, refused to pay
related assessed fines, and refused to pay other fines
assessed as a result of violating Rolling Meadows's
landscaping rules. Rolling Meadows sent MacAtee multiple
notices of delinquency.
August 2016, after MacAtee refused to sign an amended
occupancy agreement, Rolling Meadows provided MacAtee
30-days' notice of termination if she did not cure her
defaults. On September 30, after MacAtee failed to cure,
Rolling Meadows sent her written notice of the termination of
her month-to-month tenancy, along with notification that
Rolling Meadows intended to terminate her cooperative
membership effective October 15. Rolling Meadows also
notified MacAtee of her right to request a hearing before
Rolling Meadows's board of directors prior to termination
of her membership.
Meadows's board of directors scheduled a hearing at
MacAtee's request and then rescheduled the hearing at the
request of MacAtee's legal counsel. Before the hearing
date, Rolling Meadows received a letter from another
cooperative member, purportedly on behalf of MacAtee and
other cooperative members, informing Rolling Meadows that the
members declined Rolling Meadows's
"invitation/request to attend . . . a meeting/hearing on
November 22, 2016 for this purpose any time."
December 5, 2016, Rolling Meadows informed MacAtee that her
cooperative membership was terminated, that she must
surrender her cooperative membership certificate in
accordance with the second amended and restated bylaws of
Rolling Meadows, and that she must vacate her dwelling unit.
When MacAtee failed to vacate her dwelling unit, Rolling
Meadows commenced an eviction action.
January 20, 2017, after an evidentiary hearing, the district
court granted judgment to Rolling Meadows "for recovery
of the premises." But the court stayed the issuance of
the writ of recovery of premises and order to vacate until
February 24 and allowed MacAtee to "cure the instant
default and avoid the issuance of the Writ" by signing a
"current Occupancy ...