SAUK RAPIDS – As St. Cloud faces a housing crisis, Sauk Rapids is imposing a 12-month ban on the issuance of new residential rental permits.
The Sauk Rapids City Council on Monday night unanimously approved a temporary moratorium on the acceptance of these permit applications, which applies to both short-term and long-term rental properties. According to the moratorium, both single-family and multi-family properties are affected by the suspended application process.
Sauk Rapids’ decision comes as the number of rental applications there is increasing significantly, said Todd Schultz, director of community development. He said those properties are increasingly concentrated in the south of the city, which could cause problems, especially given the growing trend of offering older homes for rent.
“With rental properties, the investment is not the same as with a regular single-family home,” Schultz said. “So they tend to get a little deteriorated over time, and if there are a lot of those in a neighborhood or area, it can really drag that neighborhood down.”
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The city is pausing these applications until it completes a study of its rental housing ordinance. Sauk Rapids plans to consider other elements such as population density and public health in the future.
“We wanted to make sure that our performance standards in the ordinance accurately reflect the needs of the neighborhood and ensure that public health and safety and the quality of life of the neighborhood are met,” said City Attorney Ashley Bukowsk. “(The study may) also take into account any density standards so that an area of the city is not too concentrated with certain rental properties.”
City Council member Nick Sauer said that having too many buildings in one location that are not well maintained could hurt neighbors’ property values. He also said that rental costs are rising and that he would like to address that problem as well.
“Many of the rents I’ve seen online are higher than a mortgage. That would make it harder for someone to live there,” Sauer said.
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Sauk Rapids’ decision comes as neighboring St. Cloud explores new housing options as it struggles to provide enough housing for its growing population. According to St. Cloud’s 2024 Comprehensive Housing Study, the city needs more than 17,000 new housing units over the next 15 years.
Council members Jason Ellering and Ellen Thronson were not present to participate in a vote.
The 12-month ban applies to property owners who apply to the city for a permit to rent their properties, not to tenants who apply to landlords to rent individual units. Properties that already have a permit are not affected.
Corey Schmidt covers local affairs for the St. Cloud Times. Reach him at [email protected].
This article originally appeared in the St. Cloud Times: Sauk Rapids imposes one-year ban on residential rental permits
