Minneapolis City Council Committee Tackles Algorithmic Rent Setting and Encampment Closures

The Minneapolis City Council’s Business, Housing & Zoning Committee meeting delved into issues, including the introduction of an ordinance to ban algorithmic rent setting and discussions surrounding encampment closures. The committee aimed to address concerns about housing affordability and homelessness, with a focus on promoting fair rental practices and improving the city’s response to unsheltered homelessness.

19:21At the forefront of the meeting was a proposed ordinance introduced by Vice Chair Jeremiah Ellison, aimed at prohibiting the use of algorithmic tools in setting rental rates. This measure seeks to prevent landlords from employing AI-driven systems that prioritize profit over fair market competition. The ordinance responds to worries about inflated rents and dwindling competition, echoing actions taken by other cities like San Francisco and Philadelphia.

Councilmember Ellison explained that the ordinance would amend city codes to explicitly ban such practices, outlining enforcement processes and penalties for noncompliance. The ordinance proposes education for landlords and a complaint-based system for tenants to report violations. The measure aims to give landlords ample time to adjust before taking effect in 2026. The committee’s discussion highlighted the need for tenants to have legal recourse to address violations, stressing the importance of accountability in rental practices.

38:12Raymond, a resident of Ward Three, criticized how these algorithms, often used by large investment firms, artificially inflate rents, harming tenants. Shelare, representing the University of Minnesota Twin Cities, emphasized the ordinance’s role in enhancing transparency and curbing market manipulation, particularly affecting students.

Questions arose about the software implicated in market manipulation, with Real Page cited as a notable offender. Councilmember Cashman inquired about evidence supporting claims of market manipulation, referencing ongoing lawsuits and investigations. The committee discussed potential enforcement challenges, with regulatory services explaining reliance on tenant complaints to identify violations.

1:20:00The meeting also addressed the city’s approach to encampment closures, with Director Enrique Velasquez outlining the city’s strategy. The report detailed 17 encampment closures, affecting 227 individuals, with engagement efforts connecting with 169 people, though only nine accepted shelter. The closures incurred over $330,000 in costs, highlighting the financial burden on city resources.

1:40:13Council members expressed concerns about the lack of resources available during closures, particularly in addressing issues like chemical dependency. The need for improved coordination between city and county agencies was emphasized, alongside calls for a more comprehensive approach to engage with unsheltered individuals.

1:59:41The committee discussed the challenges of managing encampments on city-owned and other government-owned lands. Members highlighted the importance of coordinated efforts with agencies like MNDOT, noting the financial implications of managing these operations.

1:40:13A recurring theme was the impact of encampment closures on individuals and staff, with members acknowledging the traumatic nature of these operations. The committee stressed the need for better data and communication regarding closures, as well as more effective service provision. Concerns about inadequate storage options for personal belongings during closures were raised, with suggestions for improvements to make the transition process less disruptive.

1:59:41The emphasis was on creating a more humane and effective approach to homelessness, with a vision of achieving “functional zero” homelessness in the community.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.

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