1.1.................... moves to amend H.F. No. 1394 as follows:
1.2Page 1, delete section 1, and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 463.251, subdivision 2, is amended to
1.4read:
1.5    Subd. 2. Order; notice. (a) If in any city a building becomes vacant or unoccupied
1.6and is deemed hazardous due to the fact that the building is open to trespass and has not
1.7been secured and the building could be made safe by securing the building, the governing
1.8body may order the building secured and shall cause notice of the order to be served upon
1.9the owner of record of the premises or the owner's agent, the taxpayer identified in the
1.10property tax records for that parcel, the holder of the mortgage or sheriff's certificate, and
1.11any neighborhood association for the neighborhood in which the building is located that
1.12has requested notice, by delivering or mailing a copy to the owner or agent, the identified
1.13taxpayer, the holder of the mortgage or sheriff's certificate, and the neighborhood
1.14association, at the last known address. Service by mail is complete upon mailing.
1.15    (b) The notice under this subdivision must include a statement that:
1.16    (1) informs the owner and the holder of any sheriff's certificate of the requirements
1.17of subdivision 3 and that costs may be assessed against the property if the person does
1.18not secure the building;
1.19    (2) informs the owner and the holder of any sheriff's certificate that the person
1.20may request a hearing before the governing body challenging the governing body's
1.21determination that the property is vacant or unoccupied and hazardous; and
1.22    (3) notifies the holder of any sheriff's certificate of the holder's duty under section
1.23582.031, subdivision 1, paragraph (b), to enter the premises to protect the premises from
1.24waste and trespass if the order is not challenged or set aside.

1.25    Sec. 2. Minnesota Statutes 2008, section 463.251, subdivision 3, is amended to read:
2.1    Subd. 3. Securing building by city; lien. If the owner of the building or the holder
2.2of the sheriff's certificate of sale fails to either comply or provide to the governing body a
2.3reasonable plan and schedule to comply with an order issued under subdivision 2 or to
2.4request a hearing on the order within six 14 days after the order is served, the governing
2.5body shall cause the building to be properly secured and the cost of securing the building
2.6may be charged against the real estate as provided in section 463.21. In the metropolitan
2.7area, as defined in section 473.121, subdivision 2, the governing body may work with
2.8neighborhood associations to develop and implement plans to secure vacant buildings in
2.9a timely and cost-effective fashion. The city may use rehabilitation and revitalization
2.10funds in implementing this section.

2.11    Sec. 3. Minnesota Statutes 2008, section 504B.151, subdivision 1, is amended to read:
2.12    Subdivision 1. Limitation on lease and notice to tenant. (a) Once a landlord has
2.13received notice of a contract for deed cancellation under section 559.21 or notice of a
2.14mortgage foreclosure sale under chapter 580, 581, or 582, the landlord may only enter
2.15into (i) a periodic residential lease agreement with a term of not more than two months
2.16or the time remaining in the contract cancellation period or the mortgagor's redemption
2.17period, whichever is less or (ii) a fixed term residential tenancy not extending beyond the
2.18cancellation period or the landlord's period of redemption until:
2.19    (1) the contract for deed has been reinstated or paid in full;
2.20    (2) the mortgage default has been cured and the mortgage reinstated;
2.21    (3) the mortgage has been satisfied;
2.22    (4) the property has been redeemed from a foreclosure sale; or
2.23    (5) a receiver has been appointed.
2.24    (b) Before entering into a lease under this section and accepting any rent or security
2.25deposit from a tenant, the landlord must notify the prospective tenant in writing that the
2.26landlord has received notice of a contract for deed cancellation or notice of a mortgage
2.27foreclosure sale as appropriate, and the date on which the contract cancellation period or
2.28the mortgagor's redemption period ends.
2.29    (c) This section does not apply to a manufactured home park as defined in section
2.30327C.01, subdivision 5 .
2.31EFFECTIVE DATE.This section is effective June 1, 2009, and applies to leases
2.32entered into on or after that date.

2.33    Sec. 4. Minnesota Statutes 2008, section 504B.178, subdivision 8, is amended to read:
3.1    Subd. 8. Withholding rent. No tenant may withhold payment of all or any portion
3.2of rent for the last payment period of a residential rental agreement, except an oral or
3.3written month to month residential rental agreement concerning which neither the tenant
3.4nor landlord has served a notice to quit, or for the last month of a contract for deed
3.5cancellation period under section 559.21 or a mortgage foreclosure redemption period
3.6under chapter 580, 581, or 582, on the grounds that the deposit should serve as payment
3.7for the rent. Withholding all or any portion of rent for the last payment period of the
3.8residential rental agreement creates a rebuttable presumption that the tenant withheld the
3.9last payment on the grounds that the deposit should serve as payment for the rent. Any
3.10tenant who remains in violation of this subdivision after written demand and notice of this
3.11subdivision shall be liable to the landlord for the following:
3.12    (1) a penalty in an amount equal to the portion of the deposit which the landlord
3.13is entitled to withhold under subdivision 3 other than to remedy the tenant's default in
3.14the payment of rent; and
3.15    (2) interest on the whole deposit as provided in subdivision 2, in addition to the
3.16amount of rent withheld by the tenant in violation of this subdivision.
3.17EFFECTIVE DATE.This section is effective June 1, 2009, and applies to
3.18cancellations of contracts for deed or mortgage foreclosures commenced on or after that
3.19date.

3.20    Sec. 5. Minnesota Statutes 2008, section 580.021, subdivision 1, is amended to read:
3.21    Subdivision 1. Applicability. This section applies to foreclosure of mortgages under
3.22this chapter and chapter 581 on property consisting of one to four family dwelling units,
3.23one of which the owner occupies as the owner's principal place of residency on the date of
3.24service of the notice of sale of the owner.
3.25EFFECTIVE DATE.This section is effective June 1, 2009, and applies to a
3.26foreclosure in which the notice under section 47.20, subdivision 8, is sent on or after
3.27that date."
3.28Page 2, line 15, before "the" insert "for mortgaged premises described in section
3.29582.032, subdivision 1,"
3.30Page 2, after line 24, insert:

3.31    "Sec. 7. Minnesota Statutes 2008, section 580.041, subdivision 1a, is amended to read:
3.32    Subd. 1a. Applicability. This section applies to foreclosure of mortgages under this
3.33chapter and chapter 581 on property consisting of one to four family dwelling units, one
3.34of which the owner occupies as the owner's principal place of residency on the date of
3.35service of the notice of sale on the owner.
4.1EFFECTIVE DATE.This section is effective June 1, 2009, and applies to a
4.2foreclosure in which the notice under section 47.20, subdivision 8, is sent on or after
4.3that date.

4.4    Sec. 8. Minnesota Statutes 2008, section 580.042, subdivision 1, is amended to read:
4.5    Subdivision 1. Applicability. This section applies to foreclosure of mortgages
4.6under this chapter and chapter 581.
4.7EFFECTIVE DATE.This section is effective June 1, 2009, and applies to a
4.8foreclosure in which the notice under section 47.20, subdivision 8, is sent on or after
4.9that date."
4.10Page 2, line 30, strike ", but is under no obligation to,"
4.11Page 3, delete lines 7 to 11 and insert:
4.12    "(b) (1) If the holder of the mortgage or sheriff's certificate knows that there is
4.13prima facie evidence of abandonment of the property, as described in section 582.032,
4.14subdivision 7, clauses (1) to (6), the holder:
4.15    (i) shall enter the premises and make reasonable periodic inspections, and install or
4.16change the locks on all doors and windows; and
4.17    (ii) may, to protect the premises from waste, trespass, or falling below minimum
4.18community standards for public safety and sanitation, enter the premises and board
4.19windows, doors, and other openings, install and operate an alarm system, and otherwise
4.20prevent or minimize damage to the premises from the elements, vandalism, trespass,
4.21or other illegal activity.
4.22    (2) Upon an installation or change of locks as required by this section, the holder of
4.23the mortgage or sheriff's certificate must deliver a key to the premises to the mortgagor or
4.24any person lawfully claiming through the mortgagor, upon request."
4.25Page 4, delete section 5, and insert:

4.26    "Sec. 11. Minnesota Statutes 2008, section 582.032, subdivision 4, is amended to read:
4.27    Subd. 4. Summons and complaint. In a foreclosure by advertisement, the party
4.28foreclosing a mortgage or holding the sheriff's certificate of sale or the political subdivision
4.29in which the mortgaged premises are located may initiate a proceeding in district court
4.30to reduce the mortgagor's redemption period under this section. The proceeding must be
4.31initiated by the filing of a complaint, naming the mortgagor, or the mortgagor's personal
4.32representatives or assigns of record, as defendant, in district court for the county in
4.33which the mortgaged premises are located. If the proceeding is initiated by a political
4.34subdivision, the party foreclosing the mortgage or holding the sheriff's certificate of sale
4.35must also be named as a defendant. If the proceeding is commenced after the foreclosure
5.1sale, the holders of junior liens and interests entitled to notice under subdivision 3 must
5.2also be named as defendants. The complaint must identify the mortgaged premises by
5.3legal description and must identify the mortgage by the names of the mortgagor and
5.4mortgagee, and any assignee of the mortgagee; the date of its making; and pertinent
5.5recording information. The complaint must allege that the mortgaged premises are:
5.6    (1) ten acres or less in size;
5.7    (2) improved with a residential dwelling consisting of less than five units, which is
5.8not a model home or a dwelling under construction;
5.9    (3) not property used in agricultural production; and
5.10    (4) abandoned.
5.11    The complaint must request an order reducing the mortgagor's redemption period
5.12to five weeks. When the complaint has been filed, the court shall issue a summons
5.13commanding the person or persons named in the complaint to appear before the court on a
5.14day and at a place stated in the summons. The appearance date shall be not less than 15
5.15nor more than 25 days from the date of the issuing of the summons. A copy of the filed
5.16complaint must be attached to the summons.

5.17    Sec. 12. Minnesota Statutes 2008, section 582.032, subdivision 5, is amended to read:
5.18    Subd. 5. Order to show cause. In a foreclosure by action, the plaintiff or the holder
5.19of the sheriff's certificate may make a motion to reduce the mortgagor's redemption period
5.20under this section. The political subdivision in which the mortgaged premises are located
5.21may intervene in the action and make a motion to reduce the redemption period. The
5.22motion must conform generally to the pleading requirements provided in subdivision 4.
5.23For purposes of the motion, the court has continuing jurisdiction over the parties and the
5.24mortgaged premises through the expiration of the redemption period. When the motion
5.25has been filed, the court shall issue an order to show cause commanding the parties it
5.26considers appropriate to appear before the court on a day and at a place stated in the order.
5.27The appearance date may not be less than 15 nor more than 25 days after the date of the
5.28order to show cause. A copy of the motion must be attached to the order to show cause."
5.29Page 7, line 5, delete "Possessor" and insert "Occupant" and delete ""Possessor""
5.30and insert ""Occupant""
5.31Page 7, line 26, delete "possessor" and insert "occupant"
5.32Page 8, lines 1, 2, 4, and 5, delete "possessor" and insert "occupant"
5.33Renumber the sections in sequence and correct the internal references
5.34Amend the title accordingly