Minnesota attorney general sues hedge fund-owned landlord over maintenance problems

Minnesota Attorney General Keith Ellison announced Thursday that his office has filed a consumer-protection lawsuit against HavenBrook Homes, a hedge fund-owned landlord accused of failing to maintain its properties.

The lawsuit alleges that HavenBrook and its owner, New York-based Pretium Partners LLC, did not keep its Minnesota properties habitable, deceived tenants about maintenance practices and failed to take lead-based paint safety precautions, in violation of state law. HavenBrook also violated the statewide pandemic eviction moratorium by sending eviction and non-renewal notices to dozens of tenants, said Assistant Attorney General Katherine Kelly.

"It's shameful for landlords to treat people that way, and it's particularly shameful when most landlords are doing the right thing," Ellison said. "But when some don't, we've got to stand up and we've got to take action."

In a statement, a Pretium spokesperson said the company is reviewing the attorney general's lawsuit.

"We are committed to providing the highest-quality rental housing experience possible by offering consistent, dependable and attentive service for all residents in Minnesota and across the country," the statement said. "In fact, in the first year under new ownership, we have doubled our local maintenance team and continue to invest significantly to support renovations and maintenance repairs for residents to address pre-existing conditions and enhance the resident experience, and continue to do more every day."

Pretium owns more than 600 single-family rental properties in the Twin Cities metro, according to the Attorney General's Office. Tenants reported problems including lack of heat, backed-up sewer systems, mold, doors and windows that didn't close and live wild animals, Ellison said. Though HavenBrook claimed to offer 24/7 service for emergency repairs, some tenants waited years for help, he said, and when maintenance did happen, the work was often shoddy.

Anna Crockett said she lived in a HavenBrook property for about four years, and it took about two years to get issues fixed, including bathroom light installation and mold — a big problem for her son, who has asthma. She said she also received an eviction notice during the moratorium.

"These are the types of things that HavenBrook had us dealing with," Crockett said.

Pretium owns 70,000 rental properties across the country, according to the Attorney General's Office. Ellison and Kelly said they're not aware of similar lawsuits against HavenBrook in other states.

"Let me just say this," Ellison said. "I talk with my colleagues in other states all the time, and I do plan on talking to them about this lawsuit, so we'll see."