Only apartments that have been repaired and passed inspection can be occupied at the troubled Country Village Apartments in Burnsville after Jan. 1.
The City Council approved a provisional rental license for Lindahl Properties Tuesday after more than two hours of discussion.
The license had been suspended in October after inspectors found dozens of code violations and squalid living conditions.
Council members, who learned during the hearing that inspectors continue to find new violations at the complex, stopped short of a blanket revocation of the rental license Tuesday out of concern for the residents who would be forced to move.
"I don't want to penalize the innocent in this process," said Council Member Dan Kealey.
Paul Lindahl told the council his Minnetonka-based firm has spent more than $400,000 so far and has had contractors at the complex doing structural repairs since early December. "I believe we are on track now," Lindahl said.
He declined to comment after the council's decision, as did his attorney, Jason Hutchison.
In October, inspectors reported that despite months of effort to force repairs, ceilings sagged with water damage and one family had no working shower, just a pipe sticking out of the wall that they used to fill a bucket. Residents also reported infestations of mice and cockroaches.