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Saint Paul rent appeal hearings test the 3% cap's exceptions

Saint Paul rent appeal hearings test the 3% cap's exceptions

Rule Changes Saint Paul, MN local

Landlords and tenants clash over 'fair return' claims five years after voters capped hikes

August 6th, 2026: August appeal hearings scheduled for three properties

Overview

Updated Aug 26

Saint Paul voters capped annual rent increases at 3% in 2021. Five years later, a wave of appeal hearings will test how far the ordinance's exceptions let landlords push past that limit.

Three properties face August hearings. Owner Robert Fox wants his 14.8% increase raised to 23.12% on a calculation dispute; tenant Carli Valez wants the same ruling cut. Each decision adds precedent to an appeal process that has produced only a handful of rulings so far.

Why it matters

If these exceptions hold, Saint Paul's 3% cap becomes a ceiling landlords can pierce with tax and maintenance claims. Tenants carry the cost.

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Key Indicators

3%
Annual cap on rent increases
Voter-approved limit on yearly increases for most residential units.
14.8%
Appealed increase at 200 Winthrop St. S.
Owner Robert Fox appeals this; tenant Carli Valez appeals the same ruling.
23.12%
Owner's claimed proper increase
Fox argues a calculation dispute raises the allowed figure from 14.8%.
6.36%
Appealed increase at 1507 Seventh St. W.
Matthew and James Lindquist appeal this determination for their building.
17.97%
Increase rejected in Michael Smith appeal
City Council upheld the tenant's appeal in July 2025, a key precedent.

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People Involved

Robert Fox
Robert Fox
Property owner, 200 Winthrop St. S.
Appealing a 14.8% increase; argues for 23.12%
 Carli Valez
Carli Valez
Tenant, 200 Winthrop St. S.
Appealing the same determination, seeking a lower increase
 Matthew and James Lindquist
Matthew and James Lindquist
Property owners, 1507 Seventh St. W.
Appealing a 6.36% increase
 Marcia Moermond
Marcia Moermond
Legislative Hearing Officer, City of Saint Paul
Will conduct the August hearings and recommend decisions to the City Council
 Michael Smith
Michael Smith
Tenant, Portland Avenue, Saint Paul
Won appeal against a 17.97% increase in July 2025
 Abbie Hanson
Abbie Hanson
Attorney, Housing Justice Center
Represented Michael Smith in his successful appeal

Organizations Involved

SP
Saint Paul City Council
Municipal Legislature
Final decision-maker on rent cap appeals

The elected body that votes on hearing officer recommendations for rent increase exceptions.
SP
Saint Paul Department of Safety & Inspections
City Agency
Makes initial determinations on rent increase exception applications

City agency that reviews landlord financial records and issues determinations on exceptions to the 3% cap.
Housing Justice Center
Housing Justice Center
Nonprofit legal advocacy
Represents tenants in rent appeals

Saint Paul-based nonprofit providing free legal help to tenants in rent stabilization appeals.
HOME Line
HOME Line
Nonprofit tenant advocacy
Provides legal resources and advice to Minnesota tenants

Nonprofit offering free and low-cost legal help to tenants statewide, including on rent cap issues.

Timeline

November 2021 August 2026

6 events Latest: August 6th, 2026 · 1 month ago
Tap a bar to jump to that date

  1. August appeal hearings scheduled for three properties

    Latest Hearing

    Fox, Valez, and the Lindquists appeal DSI determinations on increases at three Saint Paul buildings.

  2. Ashland Ave tenants testify on 28-50% hikes

    Hearing

    Residents cite mold, foundation issues, and unsafe wiring while contesting large increases.

  3. Council upholds Smith's appeal, rejects 17.97% hike

    Decision

    City Council votes unanimously to block the increase, a major tenant precedent.

  4. Michael Smith's appeal hearing held

    Hearing

    Tenant argues poor maintenance does not justify a 17.97% increase at his building.

  5. First exception appeal hearings begin

    Legal

    Landlords and tenants air initial process concerns as appeals of cap exceptions get underway.

  6. Saint Paul voters approve 3% rent cap

    Election

    Residents pass a rent stabilization ordinance capping annual increases at 3%.

Scenarios

1

Council upholds rent cap exceptions, hikes stand

Likely Resolves by End of 2026

Discussed by: City staff and landlord representatives, who argue the financial records justify the increases

The hearing officer endorses the Department of Safety & Inspections determinations. The council votes to approve. The 14.8% and 6.36% increases stand, and the bulk internet charge at The Haven of Battle Creek is upheld. This would reinforce the pattern from the Ashland Avenue cases, where full or partial exceptions were granted.

2

Tenant appeals cut Saint Paul rent hikes at August hearings

Possible Resolves by End of 2026

Discussed by: Housing Justice Center and HOME Line attorneys

Following the Michael Smith precedent, the council rejects increases where habitability issues or calculation errors surface. Carli Valez's appeal on the Winthrop property succeeds, cutting the 14.8% increase. The Lindquist appeal is partially granted. This would tighten the exception process and signal that tenants can successfully challenge determinations.

3

Saint Paul rent appeal ruling heads to Ramsey County court

Uncertain Resolves by Q2 2027

Discussed by: Housing attorneys watching the appeal process

After the council's decision, either a landlord or tenant challenges the administrative ruling in district court. A judge would review whether the city applied its 'reasonable return' standard correctly. This would be the first court test of the ordinance's exception machinery since it took effect.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June 1974 - present

New York City rent stabilization (1974-present)

NYC's rent stabilization system caps annual increases but lets landlords raise rents for capital improvements and individual apartment improvements (IAIs). The IAI loophole drove rent spikes across the city for decades.

Then

Landlords used IAIs aggressively, pushing rents far above the cap, especially in rent-stabilized buildings.

Now

The loophole became a political flashpoint, leading to 2019 state reforms that limited IAI increases and required more documentation.

Why this matters now

Shows how exceptions to a rent cap can become a loophole that undermines the cap. Saint Paul's appeal process is the same battleground.

February 2019

Oregon's statewide rent control (2019)

Oregon became the first state with statewide rent control, capping increases at 7% plus inflation. Landlords found workarounds, including vacancy decontrol that reset rents on turnover.

Then

The cap generated ongoing legal and political fights over enforcement and exemptions.

Now

The law remains in place but its exception machinery continues to be tested by both landlords and tenant advocates.

Why this matters now

Another recent cap whose exception and enforcement machinery is still being worked out, closely paralleling Saint Paul's situation.

January 2020

California's statewide rent cap (2020)

California capped annual rent increases at 5% plus inflation, with a maximum of 10%, under AB 1482. Exemptions covered buildings under 15 years old and single-family homes.

Then

Implementation saw landlords test the cap's boundaries, and tenant groups pushed for stronger local laws in cities like Los Angeles and San Francisco.

Now

The cap coexists with local ordinances, creating a patchwork where the exception categories are still being litigated.

Why this matters now

A relatively new cap with exceptions showing how the exception categories get contested in the first years after passage.

Sources

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City of Saint Paul Legistar City of Saint Paul KSTP 5 Eyewitness News MinnPost Pioneer Press City of Saint Paul Legistar City of Saint Paul Legistar City of Saint Paul Legistar City of Saint Paul Legistar City of Saint Paul Legistar