St. Paul Security Deposit Rules: What the S.A.F.E. Housing Tenant Protections Ordinance Adds to Minnesota Law

A landlord in St. Paul has to satisfy two sets of rules at once: the Minnesota statute, Minn. Stat. § 504B.178, and the city's own S.A.F.E. Housing Tenant Protections Ordinance (Saint Paul Legislative Code § 193.02). The state law sets the 21-day return deadline after termination of the tenancy and receipt of the tenant's mailing or delivery address; the local ordinance adds rules on deposit cap, relocation assistance and rent cap. Where the two overlap, the landlord has to meet the stricter one.

What the S.A.F.E. Housing Tenant Protections Ordinance adds

• Deposit cap: Security deposits and separately prepaid rent are each capped at one month's rent, with one additional month allowed only for applicants who could otherwise be denied under the screening rules. (193.02(a)-(c))
• Relocation assistance: A buyer of an affordable housing building who, within the three-month tenant protection period, non-renews without cause, raises rent, imposes new screening or materially changes terms must pay affected tenants three months' rent within 30 days. (193.06)
• Rent cap: Rent increases are limited to 3% in any 12-month period unless the landlord obtains an exception for reasonable return; new construction with first certificate of occupancy after Dec. 31, 2004 and deed-restricted affordable housing are exempt. (193A.04, 193A.08)

Who it covers: Ch. 193 applies to residential rental agreements in Saint Paul (Ord. 25-31, May 7, 2025); relocation assistance applies only to 'affordable housing' buildings (20%+ units renting at or below 1/3 of 60% AMI). Ch. 193A rent stabilization (eff. Jan. 1, 2023) applies to residential rental property except the 193A.08 exemptions (newer construction, subsidized/deed-restricted affordable housing, Housing Support Act amounts).
Worth knowing: Deposit interest and the return deadline follow Minn. Stat. 504B.178. Landlords must tell prospective tenants when a unit is exempt from the 3% rent cap.

What Minnesota law already requires

• Return deadline: 21 days after termination of the tenancy and receipt of the tenant's mailing or delivery address.
• Detail: Five days if the tenant had to leave because of condemnation.
• Itemized deductions: required in writing.
• Forwarding address: the tenant should give one in writing; it affects the deadline or the remedy.
• Penalty for wrongful withholding: A landlord who fails to return or itemize on time owes the amount withheld plus interest, plus a penalty equal to the amount wrongfully withheld; bad-faith retention adds punitive damages of up to $500.
• Interest: Simple interest at 1% per year.
• Small claims limit: $20,000.
• Statute: Minn. Stat. § 504B.178.

Using both rules together

1. Read the lease for the deposit amount, the move-in date, and any clause that mentions the ordinance.
2. Check the local rule first: deposit cap under Saint Paul Legislative Code § 193.02, then relocation assistance and rent cap.
3. Count the Minnesota deadline of 21 days from termination of the tenancy and receipt of the tenant's mailing or delivery address.
4. A written demand that cites both Minn. Stat. § 504B.178 and Saint Paul Legislative Code § 193.02 carries more weight than one that cites either alone. A landlord who fails to return or itemize on time owes the amount withheld plus interest, plus a penalty equal to the amount wrongfully withheld; bad-faith retention adds punitive damages of up to $500.

Frequently Asked Questions

Q: Does St. Paul require interest on security deposits?
A: The S.A.F.E. Housing Tenant Protections Ordinance does not add an interest rule, so Minnesota law governs. Simple interest at 1% per year.

Q: Is the St. Paul deposit return deadline different from Minnesota law?
A: No. The S.A.F.E. Housing Tenant Protections Ordinance does not change the return deadline, so the Minnesota rule applies: 21 days after termination of the tenancy and receipt of the tenant's mailing or delivery address under Minn. Stat. § 504B.178.

Q: Does the S.A.F.E. Housing Tenant Protections Ordinance apply to my unit?
A: Ch. 193 applies to residential rental agreements in Saint Paul (Ord. 25-31, May 7, 2025); relocation assistance applies only to 'affordable housing' buildings (20%+ units renting at or below 1/3 of 60% AMI). Ch. 193A rent stabilization (eff. Jan. 1, 2023) applies to residential rental property except the 193A.08 exemptions (newer construction, subsidized/deed-restricted affordable housing, Housing Support Act amounts). Check the section cited below for the full list of exemptions before relying on it.

Q: Can I sue my landlord in small claims court for my Minnesota deposit?
A: Yes. Minnesota small claims court hears claims up to $20,000, which covers most deposits plus the statutory penalty. A dated written demand that cites Minn. Stat. § 504B.178 is the usual first exhibit.

Sources Checked

• Saint Paul Legislative Code §§ 193.02, 193.06, 193A.04, 193A.08, S.A.F.E. Housing Tenant Protections Ordinance: code text, read 2026-09-20
• Minn. Stat. § 504B.178 (the Minnesota statute cited above)
• LeaseLenses Minnesota deposit data set, last reviewed 2026-09-19; the same data powers the Minnesota demand letter tool
• Minnesota landlord-tenant overview and the Minnesota deposit rules page

This page is general legal information for St. Paul, Minnesota, not legal advice. Local ordinances are amended more often than state statutes; read the current code text before relying on a figure in court.