St. Paul Mayor Melvin Carter has established a “Rent Stabilization Stakeholder Group” to “identify considerations on improving and enhancing rent stabilization in Saint Paul.”
According to the mayor’s office, the new group is composed of 41 individuals from different careers and backgrounds. They will work together to produce a report by the end of the summer.
Earlier this month, St. Paul voters chose 53%-47% to impose a 3% cap on rent increases per year. Despite the rule not activating until May 22, developers already are pausing and pulling out of projects.
The cap is strict: it doesn’t account for inflation, small or large landlords, new or old buildings, “regardless of change of occupancy.” The goal is to obtain stable, affordable housing prices, but there are also wide-reaching unintended consequences.
Pre-election, Mayor Melvin Carter said he supported the initiative.
Twin Cities landlords are asking voters to oppose rent control on the November ballots. The landlords say that rent controls would create more issues within an already struggling housing market.