From slumlords to single families: New ownership for renovated rentals

Nonprofits taking over discarded rental properties

FOX 9?s Corin Hoggard has the story of single-family homeowners that are slowly filling the homes scooped up by a hedge fund accused of squeezing $40 million of wealth out of north Minneapolis.

MINNEAPOLIS (FOX 9) - Single-family homeowners are slowly filling the homes scooped up by a hedge fund accused of squeezing $40 million of wealth out of north Minneapolis.

Change is good

Slumlord millions:

The country’s largest landlord owned more than 600 homes in the Twin Cities just a few years ago, but now it’s gone.

From a financial perspective and from a health perspective, the change can have a big impact on the community.

FOX 9 toured one of about 220 homes Havenbrook owned in north Minneapolis alone, and it looks a lot better now as it heads back to single-family homeownership.

The "before" pictures on display Tuesday are the way neighbor Stefanie Anderson remembers this Folwell area home — shabby and rotting.

"I would say the last 10 years kind of started taking the nosedive, not very well taken care of, not necessarily by the tenants, but by the rental management," said neighbor Stefanie Anderson.

Scatological sorrow

Families owning more of old Havenbrook homes

Families are now moving into old Havenbrook homes after they have been renovated by nonprofits. FOX 9's Corin Hoggard has the story.

Under old ownership:

The home belonged to Havenbrook, a national landlord whose renters complained to FOX 9 about years of landlord neglect on everything from mold to water leaks and broken appliances.

The attorney general launched an investigation and discovered some terrible living conditions.

"We found no heat, backed up sewer systems, doors and windows that didn't close, mold, and even live wild animals in people's homes," said Minnesota Attorney General Keith Ellison.

The AG’s office sued Havenbrook and got about $2 million to pay renters who lived in bad conditions and $2 million more in rent forgiveness.

The company is gone from Minnesota now and about 345 of their homes went to local nonprofits, motivated to keep the homes full and well-maintained.

"If there's nobody in it, the thing is gonna fall into disrepair," said Minneapolis Mayor Jacob Frey. "It could become subject to crime. You could have all sorts of problems here. So, this is adding to the neighborhood."