Affordable Housing Developers Want Exemptions From St. Paul’s Rent Control Law
August 01, 2022 by The implementation of St. Paul’s strict rent control law, voted in by residents with the aim of limiting rent hikes to 3%, encountered immediate challenges and controversies. Dominium, a corporate landlord managing affordable housing in the city, successfully obtained an exemption from the new regulations. The exemption allows them to raise rents by up to 8% without the need for extensive justification. This exemption sparked outrage among tenants, particularly low-income seniors, who were facing significant rent increases and potential displacement. Tenants argued that Dominium, despite receiving substantial public funding, including Low Income Housing Tax Credits, should not be granted such exemptions that exacerbate housing insecurity for vulnerable residents. However, Dominium argued they should have greater leeway as their profit margins are already thin as an affordable housing project. The City Council is trying to balance corporate interest while providing residents rent control measures they voted for. The situation underscores broader issues of affordability and tenant rights in the face of rising housing costs and corporate interests.