Housing & Redevelopment Auth. of Duluth v. Lee

Minn. Stat. 504B.177 generally places a limitation on late fees for residential housing tenants at eight percent of the overdue rent payment. In this case, Respondent, a tenant living in federally subsidized housing, failed to pay late fees assessed by the Housing and Redevelopment Authority of Duluth (HRA) under his lease. The HRA filed this eviction action for nonpayment of rent. The total amount in arrears was $50. At issue before the district court was whether the monthly $25 late fee provided in the parties’ lease violated section 504B.177. The district court entered judgment for the HRA, concluding that federal law preempts the state limitation on late fees with respect to public housing authorities. The court of appeals reversed. The Supreme Court affirmed, holding (1) the eight percent limitation on late fees in section 504B.177(a) is not preempted by federal law and does not conflict with a federal statute, regulation, or handbook under section 504B.177(b); and (2) therefore, the HRA was subject to the eight percent limitation. View "Housing & Redevelopment Auth. of Duluth v. Lee" on Justia Law