Saint Paul rent appeal hearings test the 3% cap's exceptions
Rule ChangesLandlords and tenants clash over 'fair return' claims five years after voters capped hikes
August 6th, 2026: August appeal hearings scheduled for three propertiesNew here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
Overview
Updated 2 hours agoSaint 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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People Involved
Organizations Involved
The elected body that votes on hearing officer recommendations for rent increase exceptions.
City agency that reviews landlord financial records and issues determinations on exceptions to the 3% cap.
Saint Paul-based nonprofit providing free legal help to tenants in rent stabilization appeals.
Nonprofit offering free and low-cost legal help to tenants statewide, including on rent cap issues.
Timeline
November 2021 August 2026
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August appeal hearings scheduled for three properties
Latest HearingFox, Valez, and the Lindquists appeal DSI determinations on increases at three Saint Paul buildings.
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Ashland Ave tenants testify on 28-50% hikes
HearingResidents cite mold, foundation issues, and unsafe wiring while contesting large increases.
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Council upholds Smith's appeal, rejects 17.97% hike
DecisionCity Council votes unanimously to block the increase, a major tenant precedent.
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Michael Smith's appeal hearing held
HearingTenant argues poor maintenance does not justify a 17.97% increase at his building.
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First exception appeal hearings begin
LegalLandlords and tenants air initial process concerns as appeals of cap exceptions get underway.
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Saint Paul voters approve 3% rent cap
ElectionResidents pass a rent stabilization ordinance capping annual increases at 3%.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
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.
Landlords used IAIs aggressively, pushing rents far above the cap, especially in rent-stabilized buildings.
The loophole became a political flashpoint, leading to 2019 state reforms that limited IAI increases and required more documentation.
Shows how exceptions to a rent cap can become a loophole that undermines the cap. Saint Paul's appeal process is the same battleground.
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.
The cap generated ongoing legal and political fights over enforcement and exemptions.
The law remains in place but its exception machinery continues to be tested by both landlords and tenant advocates.
Another recent cap whose exception and enforcement machinery is still being worked out, closely paralleling Saint Paul's situation.
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.
Implementation saw landlords test the cap's boundaries, and tenant groups pushed for stronger local laws in cities like Los Angeles and San Francisco.
The cap coexists with local ordinances, creating a patchwork where the exception categories are still being litigated.
A relatively new cap with exceptions showing how the exception categories get contested in the first years after passage.
