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May 26th, 2026 St. Anthony Council Work Session - 2 should retain control over the ownership relationship between the tenant and the property owner. He noted that if the new owner of the home would like to continue renting to the current tenant, they are welcome to reapply for a rental license. Councilmember Elnagdy raised concerns about the renters’ rights. She noted that this language leaves the renter without any property rights if the homeowner decides to sell. Councilmember Elnagdy proposed adding an option, such as a non-disturbance agreement, to protect renters better and prevent them from being forced out of their homes without recourse. Councilmember Jenson noted that it is unlikely that a property owner would sell the home to another owner who has no say over the tenant living there. Councilmember Jenson noted that if there is a requirement that the property owner express intent to sell the home to the renter and inform them of the risks of renting the property if they choose to sell, there is no significant issue for the tenant. Councilmember Elnagdy agreed but asked whether there could be a simpler option for new homeowners than a full reapplication, if they are amenable to the current tenant staying in the ADU. Mayor Webster stated that she did not believe the City needed to fully mediate the tenant/landlord relationship and the transition between owners. Councilmember Elnagdy reminded the Council that the rental license follows the property owner, and the new owner would have to apply for a license if they wanted the tenant to stay, which could force the tenant to move out temporarily and then move back in. She expressed that this is complex and that there should be a simpler option for continuation if the new owner chooses. City Planner Grittman noted that this clause was written to prevent an unwanted tenant from living on the new owner's property. He suggested adding a line stating that the tenant may continue living in the ADU, provided the new owner wishes to do so, and the tenant is eligible for a rental license. Mayor Webster asked whether the individual purchasing the home could begin the rental license application before closing. Assistant City Manager Morello highlighted the complexities of facilitating a rental license handover, given the timelines for moving and questions about when an individual acquires property rights during the closing process. She noted that rental licenses must be updated annually and that terminating the previous owner’s license was a logical step. Councilmember Jenson questioned whether Assistant City Manager Morello was suggesting that the renter would have to move. She stated that this is a risk renters take on. Councilmember Jenson agreed that this is a reasonable risk but emphasized the need for clear communication of this risk when the lease is signed, and the homeowner is considering moving. Councilmember Doolan asked whether the sale of a traditional rental home could also result in termination of the rental agreement. Assistant City Manager Morello stated that she believed it could, and that the City requires rental licenses to be updated every year so that an inspection can be performed to ensure the rental dwelling is livable. Councilmember Jenson stated that if a rental company purchases the home and attempts to rent out both the ADU and the main dwelling, this could be done only if the area where the homes are located has fewer rental units than allowed. Councilmember Doolan noted that the ADU does not count as a second count toward the limit; the ADU and the main dwelling are considered one unit.