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![handle is hein.sag/sagmn0089 and id is 1 raw text is: HOUSING AND REDEVELOPMENT AUTHORITY: LATE FEES: Statutory cap applies to
each overdue rent payment once and may not be applied to a cumulative total of overdue rent that
includes rent for which a late fee has previously been assessed. Recalculation of late fee on a
partial payment is not required. Minn. Stat. § 504B.177
430
The Office of
SMinnesota Attorney General Keith Ellison
helping people afford their lives and live with dignity and respect - wwwag.state-mn.us
June 30, 2021
VIA EMAIL: bengblom@duluthhousing.com
Brandon Engblom, Esq.
General Counsel
Duluth Housing and Redevelopment Authority
222 East 2nd Street, P.O. Box 16900
Duluth, MN 55816-0900
Re: Request for Opinion Concerning Minn. Stat. § 504B.177(a)
Mr. Engblom:
Thank you for your correspondence requesting an opinion regarding Minn. Stat.
§ 504B. 177(a), which prohibits landlords from charging a late fee that exceed[s] eight percent of
the overdue rent payment. You ask whether a late fee may be imposed each month on the
cumulative total of past due rent payments under this statute. Based on the facts presented, we
conclude that a landlord may impose a late fee only once on each past due rent payment, and not
on the cumulative total. We also conclude that the statute does not require recalculation of the late
fee upon partial payment of past due rent.
BACKGROUND
Section 504B.177(a) states in part:
A landlord of a residential building may not charge a late fee if the rent is paid after the due
date, unless the tenant and landlord have agreed in writing that a late fee may be imposed.
The agreement must specify when the late fee will be imposed. In no case may the late fee
exceed eight percent of the overdue rent payment.
You provided an example lease used by the Housing and Redevelopment Authority of Duluth
(HRA), which provides that late fees are calculated and charged on the unpaid rent on the sixth
day of each month. The lease provision states:
445 Minnesota Street, Suite 1400, St. Paul, MN 55101-2131
Office: (651) 296-3353 - Toll Free: (800) 657-3787 - Minnesota Relay: (800) 627-3529
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