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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/15/2010 - FIRST READING OF ORDINANCE NO. 075, 2010, AMENDING DATE: June 15, 2010 STAFF: Beth Sowder FORT COLLINSCOUNCIL First Reading of Ordinance No. 075, 2010, Amending Section 5-265 of the City Code Relating to Occupancy Disclosure Statements. EXECUTIVE SUMMARY This Ordinance amends the City Code requirement for occupancy disclosure statements and will require notarized signatures or electronic verification only on lease transactions, not on sales. BACKGROUND / DISCUSSION On May 4, 2010, Council adopted amendments to the Occupancy Ordinance Disclosure Statement requiring that all disclosure statements for sale and lease transactions need to be notarized by a notary public or, as an alternative to notarization, an electronic record may be used to verify the date that the disclosure statement was signed by the parties. Enforcement data indicates that this added requirement is specifically needed for lease situations, and the added burden is not necessary for sale situations. Staff recommends City Code be amended so that the new requirements apply only to lease situations. FINANCIAL/ ECONOMIC IMPACTS This Code amendment will lower the financial impact of sale situations since the added requirements would not apply. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. PUBLIC OUTREACH This Code amendment is the result of feedback from stakeholders. Members of the Fort Collins Board of Realtors (FCBR) expressed concern that this added requirement was not intended to apply to sales of property and is not needed for sales, as opposed to leases. Staff agrees that the added burden for sale situations is not necessary for the enforcement issues identified. Public outreach has been conducted and will continue for the new Occupancy Ordinance Disclosure Statement requirements. If Council adopts this Ordinance, staff will work with the FCBR to ensure that realtors are aware that the new requirements apply only to leases and not sales. ORDINANCE NO. 0751 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 5 -265 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO OCCUPANCY DISCLOSURE STATEMENTS WHEREAS , Section 5 -265 of the City Code requires that any person selling or leasing a dwelling unit in the City give advance notice of the applicable occupancy restrictions for the unit by using a form provided by the City (the "Occupancy Disclosure Statement"), and it further requires that the form be signed by all parties to the transaction; and WHEREAS , on May 4 , 2010, City Council adopted Ordinance No . 042 , 2010, amending Section 5 -265 of the City Code to require, among other things, that the signatures on the Occupancy Disclosure Statement either be notarized or verified by electronic means ; and WHEREAS , subsequent to the passage of Ordinance No , 042, 20101 City staff was contacted by stakeholders who participated in discussions with City staff between first and second reading concerning the notarization or electronic verification options ; and WHEREAS , the stakeholders requested that the City consider whether the additional burden placed on the parties to a real estate sales transaction of having the signatures notarized or verified electronically is necessary, given that the City ' s enforcement concerns regarding Section 5 -265 are focused primarily on lease transactions ; and WHEREAS , to address the stakeholders ' concern, City Council believes that in the context of a real estate sales transaction, the requirement of having the signatures on an Occupancy Disclosure Statement notarized or verified electronically can be eliminated without having a significant effect on the City ' s enforcement of the occupancy restrictions . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 5 -265 of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 5-265. Posting ; inspection of books and records ; disclosure. (a) Any certificate of occupancy for a boarding or rooming an extra occupancy rental house specifying the number of allowable tenants must be posted on the back of the front door of the dwelling. (b) Whenever reasonable cause exists to believe that a violation of the Code or Land Use Code has occurred at any rental dwelling unit, the owner and property manager, if any, of said unit shall, immediately upon request, make available to the City all lease, rental payment and tenant information pertaining to the unit, together with the written disclosure statement required by Subsection (c) of this Section. (c) Any person selling or leasing a dwelling unit shall forthwith provide all purchasers, lessees or sublessees of such unit with a written disclosure statement, on a form provided by the City, specifying the maximum permissible occupancy of such unit under Section 3 . 8 . 16 of the Land Use Code . Such disclosure statement shall be signed and dated by all parties to the transaction immediately upon execution of any deed, contract for purchase and sale, or lease pertaining to such unit. In the case of a lease, the following shall apply: ( 1 ) All signatures on such disclosure statement shall be notarized by a notary public or, as an alternative to notarization, an electronic record may be used to verify the date that the disclosure statement was signed by the parties . (2) in the case of a , The disclosure statement shall be attached to a copy of the fully executed lease agreement and retained at the leased premises by the owner of the unit and the property manager, if any. If an electronic record is used to verify the date that the disclosure statement was signed, then documentation evidencing the electronic record shall also be attached to a copy of the lease agreement. (3) In the case of a multi-family building with an on-site manager, the lease-and, the disclosure statement, and any documentation evidencing electronic verification may be retained in the office of the property manager for the unit. ff an electronic record is used to verify the date that the disclosure statement was signed, then documentation evidencing the electronic recor shall also be attached to a copy of the fally executed lease agreement. (d) Notwithstanding the foregoing, a new disclosure statement need not be provided upon renewal of a written lease agreement if all parties to such renewal agreement executed a disclosure statement at the time of execution of the original lease agreement. (e) It shall be a violation of this Section for any person to rent a dwelling unit, or portion thereof, to any person who has failed or refused to sign the disclosure statement required by Subsection (c) of this Section. (f) It shall be a violation of this Section for any person to occupy a dwelling unit pursuant to a lease or sublease unless such person has signed the disclosure statement required by Subsection (c) of this Section. -2- Introduced, considered favorably on first reading, and ordered published this 15th day of June, A.D . 2010, and to be presented for final passage on the 6th day of July, A.D . 2010 . Mayor ATTEST : City Clerk Passed and adopted on final reading on the 6th day of July, A.D . 2010 . Mayor ATTEST : City Clerk -3 -