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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/09/2016 - RENTAL LICENSINGDATE: STAFF: February 9, 2016 Ginny Sawyer, Policy and Project Manager Tom Leeson, Director, Comm Dev & Neighborhood Svrs WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Rental Licensing. EXECUTIVE SUMMARY The purpose of this item is to discuss potential benefits/merits of a rental licensing program and to better define the desired outcomes should the City pursue rental licensing. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What are the desired outcomes of a rental licensing program? 2. Is there additional information Council would like to see? 3. Does Council want to pursue a rental licensing program? BACKGROUND / DISCUSSION During the 2015 Council retreat, rental licensing was identified as a potential means to address and improve neighborhood livability. Numerous communities have rental licensing or rental registration programs. Fort Collins last considered a licensing program in 2004-05. In preparation for this item, staff has provided information and data related to rental housing in Fort Collins, including:  Research into other communities  Housing data  Rental inspection data  Nuisance code data  Public Nuisance Ordinance data  Existing educational programs  Vacancy information Best Practice Research In reviewing other communities, staff went reviewed the original research list from 2004 and followed up with three communities, then added an additional eight communities from the current peer cities list. (Attachment 1) New information is shown in red on the Attachment. The two most common themes amongst these communities include:  Programs were typically designed to address substandard, older, modified or unsafe housing.  Most programs have gone through multiple iterations with changes to costs, scope, and inspection changes. February 9, 2016 Page 2 Fort Collins Housing The most recent data from the 2013 Census Bureau American Community Survey (ACS) shows Fort Collins has approximately 25,336 rental units which represent roughly 45.5% of total housing units. Rental housing tends to be concentrated near Colorado State University (CSU) but exists throughout the city in a variety of housing types, including multifamily complexes. Distribution is shown in Attachment 2. Substandard or Unsafe Housing The City of Fort Collins adopted rental housing standards in Chapter 5, Article VI, Division 2 of the City Code in 1972. These standards govern the use, occupancy, location and maintenance of rental housing and supplement the City Building and Land Use Codes. The code has been amended and updated numerous times over the years. Fort Collins has always responded to rental housing complaints. Since 2012 the Building Department has been tracking rental housing inspections. From October 2012 through December 2015, the City has performed approximately 150 onsite inspections. (Attachment 3) Issues have ranged from sewage back-ups and deficient furnaces to lack of egress windows and smoke alarms. In addition to the onsite inspections, building inspectors also work over the phone with landlords and tenants to resolve minor issues. Tenants in Fort Collins can call and request a housing inspection anytime. Whether an inspection is performed is dependent upon the severity of the complaint, whether the tenant is still in the unit, and the responsiveness of the landlord. To date, the Building Department reports this process to be effective at resolving safety issues and ensuring compliance with building codes while also avoiding being drawn into a lease dispute. The ability to request an inspection is known and appropriately recommended by staff at the City and CSU, including Off Campus Life and Student Legal Services. Information is provided verbally, included on websites and in the Off-Campus Life Student Handbook, and discussed during educational programs and presentations. Staff from these departments has history of working well together. Poudre Fire Authority also performs periodic (annual to bi-annual) inspections on multifamily complexes, including common areas, entry ways, corridors, exits, mechanical areas, laundry areas, pools, clubhouses and any shared public space in these complexes. They also perform confidence tests of any fire suppression systems. Nuisance Complaints and Exterior Property Maintenance Nuisance and exterior maintenance issues are typically inspected by and routed through Neighborhood Services on both a complaint and a proactive basis. In a review of Neighborhood Services data staff reports the following: Code Compliance Violation Notices - January-December 2015 (1-year) Includes weeds, rubbish, dilapidated fences, snow, unscreened trash, inoperable vehicles, outdoor storage. Owner Occupied Properties 3482 41% Rental Properties 5049 59% Total Code Compliance Violation Notices 8531 100.0% Excludes 147 notices sent to owners of undeveloped lots. Distribution map shown in Attachment 4. Voluntary vs. Involuntary Compliance - January-December 2015 (1-year) Total Voluntary Involuntary Owner Occupied Properties 3482 95% 5% Rental Properties 5049 93% 7% February 9, 2016 Page 3 Public Nuisance Ordinance (PNO) Cases - January to December 14, 2015 (1-year) For repeated civil violations at one address (3 violations in 2 years or 5 violations in 3 years). Includes violations for code compliance issues noted above, animal control violations, noise or nuisance violations ticketed by Police Services. Owner Occupied Properties 80 24% Rental Properties 251 76% Total PNO Cases 331 100.0% PNO distribution map shown in Attachment 5. Mediation Cases - January-December 2015 (1-year) Rental Housing Related 151 44% All Other Mediation Cases 196 57% Total Mediation Cases 347 100% Current Education Programs Since 2006 the City has offered an 8-hour Landlord Training program. The program covers best practices, rental housing standards, occupancy requirements, crime prevention techniques, fair housing practices, and tools and resources available for landlords. To date almost 550 local landlords have completed the training. The City also has a Community Liaison in partnership with CSU. This position focuses on educating students who live off-campus to both be good neighbors and to know their rights and be educated tenants. To achieve this, CSU provides a variety of educational opportunities to students, parents, neighbors, landlords, property managers, and apartment complexes. In addition to education programs that promote neighborhood livability the City also utilizes the following:  Occupancy regulations  Public Nuisance Ordinance  Nuisance gathering ordinance  Community Mediation Program  Neighborhood Traffic Mitigation Program Historical Rental Vacancy Rate data for Fort Collins 2013 Census Bureau American Community Survey (ACS) Date US Colorado Fort Collins, CO 2013 6.49% 5.26% 4.05% 2012 6.77% 5.69% 3.01% 2011 7.40% 5.63% 2.77% 2010 8.17% 6.72% 4.56% 2009 8.43% 8.00% 7.05% 2008 7.86% 7.45% 4.78% 2007 7.87% 8.63% 5.00% 2006 7.70% 8.36% 5.12% 2005 7.74% 9.35% 8.32% February 9, 2016 Page 4 Like other communities nationwide, vacancy rates have varied over time but have been very low in recent years. Low vacancy rates tend to result in an increase in housing costs. Anecdotally, staff reports that tenants are hesitant to report housing issues when they are concerned about the possibility of having to find alternative housing. Rental Program Depending on the desired outcome of a rental program, elements could range from voluntary registration to mandatory licensing with annual renewal and periodic housing inspections. Obviously, a more intensive program will require additional staff resources and would take time to fully implement. Should individual inspection of all multi-family units be included, additional staffing would be needed. PUBLIC OUTREACH Staff did minimal outreach prior to the work session in anticipation of conducting more thorough outreach once Council direction is given. Staff contacted:  ASCSU Director of Community Affairs  Northern Colorado Rental Housing Association  Board of Realtors Staff also met with the Affordable Housing Board at their January meeting for the purpose of providing information. No formal action was requested or received. ATTACHMENTS 1. Research Matrix (PDF) 2. Owner Occupied Tract Reference Map ACS 2013 (PDF) 3. Rental Inspections (PDF) 4. Owner-Rental Code Violations 2015 (PDF) 5. Owner-Rental Public Nuisance Violations (PDF) 6. Powerpoint Presentation (PDF) City, State University Population Rental Program/ start date What was the problem program was focused on Fees # of inspectors Occupancy addressed? Parking Addressed? Inspection required? How often? Additional info Revocation for bad behavior Notes Boulder, CO (95,000) Yes (26,000) Licensing 1996 Program was looking to address public safety issues that were associated with rental housing. Established minimum standards for equipment and facilities associated with rental properties. Yes, variable Currently considering changing fees from per building to per unit. Have also increased the fees. Currently looking into program to determine if new fees are needed. 3 for everything House inspections contracted out Inspection program is now privatized. Landlords are now responsible for hiring a City of Boulder licensed inspector. No. Complaints done through City, State University Population Rental Program/ start date What was the problem program was focused on Fees # of inspectors Occupancy addressed? Parking Addressed? Inspection required? How often? Additional info Revocation for bad behavior Notes Provo, UT (116,00) Birmingham Univ. (30,000) Rental Dwelling Licensing Program Community Development/ Zoning has jurisdiction over the program. The problem being addressed was properties that were originally being built as single-family homes were being converted into multiple units, owners did not obtain permits or inspections and units were substandard. Yes- $20 per year for one rental unit and $60 per year for multiple units. No additional fees are associated with the program. 4 zoning officers, an administrator, and 2 building inspectors Yes Yes Not required unless there are health and safety concerns or complaints. City, State University Population Rental Program/ start date What was the problem program was focused on Fees # of inspectors Occupancy addressed? Parking Addressed? Inspection required? How often? Additional info Revocation for bad behavior Notes Cedar Rapids, IA (128,000) Multiple schools Registration Program- Landlords and Properties The problem being addressed was the older housing stock and the problems attached with having older homes. Complaints were not being properly addressed by the landlords. One time landlord licensing fee of $50 (per housing structure.) Annual registration fee (single family dwelling/ Owner occupied duplex- $30, Multiple dwelling- $25, rooming unit- $8) 5 inspectors for all rental inspections, 2 inspectors for nuisance complaints. The International property City, State University Population Rental Program/ start date What was the problem program was focused on Fees # of inspectors Occupancy addressed? Parking Addressed? Inspection required? How often? Additional info Revocation for bad behavior Notes Bellingham, WA (83,000) Western Washington University (15,000) Rental Registration & Safety Inspection Program 2015 Looking to address problems associated with many renters being forced by necessity into sub- standard housing and unresponsive landlords. If the number of units owned is between: 1-20: $10 per unit 21 or more: $8 per unit. Fee is calculated on individual property basis not based on entire rental property portfolio. Plan on hiring one full-time inspector specifically for the program and using existing inspectors as necessary. ATTACHMENT 2 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Sources: Esri, HERE, DeLorme, TomTom, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, MapmyIndia, © OpenStreetMap contributors, and the GIS User Community Code Compliance Violation Notices January 1, 2015 to December 14, 2015 CITY OF FORT COLLINS GEOGRAPHIC INFORMATION SYSTEM MAP PRODUCTS These map products and all underlying data are developed for use by the City of Fort Collins for its internal purposes only, and were not designed or intended for general use by members of the public. The City makes no representation or warranty as to its accuracy, timeliness, or completeness, and in particular, its accuracy in labeling or displaying dimensions, contours, property boundaries, or placement of location of any map features thereon. THE CITY OF FORT COLLINS MAKES NO WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE, EXPRESSED OR IMPLIED, WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA. Any users of these map products, map applications, or data, accepts them AS IS, WITH ALL FAULTS, and assumes all responsibility of the use thereof, and further covenants and agrees to hold the City harmless from and against all damage, loss, or liability arising from any use of this map product, in consideration of the City's having made this information available. Independent verification of all data contained herein should be obtained by any users of these products, or underlying data. The City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Printed: January 27, 2016 Renters Owners City Limits 0 0.5 1 1.5 2 GMA Miles Scale 1:58,408 © K:\ArcMapProjects\Neighborhood_Services\OwnerVRenterViolations\Maps\OwnerVRentalCodeViolations.mxd ATTACHMENT 4 Sources: NRCAN, GeoBase, Esri, HERE, IGN, DeLorme, Kadaster TomTom, NL, Ordnance Intermap, Survey, increment Esri Japan, P Corp.METI, , GEBCO, Esri China USGS, (Hong FAO, Kong)NPS,, swisstopo, MapmyIndia, © OpenStreetMap contributors, and the GIS User Community Public January Nuisance 1, 2015 to Ordinance December 14, Cases 2015 CITY GEOGRAPHIC These and were map OF not products FORT designed and INFORMATION COLLINS or all intended underlying for general data SYSTEM are use developed by members MAP for use PRODUCTS of the by the public. City The of Fort City Collins makes for no its representation internal purposes or only, warranty dimensions, as to contours, its accuracy, property timeliness, boundaries, or completeness, or placement and of location in particular, of any its map accuracy features in thereon. labeling or THE displaying CITY OF FORT COLLINS PARTICULAR MAKES PURPOSE, NO WARRANTY EXPRESSED OF MERCHANTABILITY OR IMPLIED, WITH OR RESPECT WARRANTY TO THESE FOR FITNESS MAP PRODUCTS OF USE FOR OR THE UNDERLYING FAULTS, and assumes DATA. Any all responsibility users of these of map the use products, thereof, map and applications, further covenants or data, and accepts agrees them to hold AS the IS, City WITH harmless ALL from made and this against information all damage, available. loss, Independent or liability arising verification from any of all use data of contained this map product, herein should in consideration be obtained of by the any City's users having of these liability, products, whether or direct, underlying indirect, data. or consequential, The City disclaims, which and arises shall or not may be arise held from liable these for any map and products all damage, or the loss, use thereof or by any person or entity. Printed: January 27, 2016 Renters Owners City Limits 0 0.5 1 1.5 2 Miles GMA Scale 1:58,408 © K:\ArcMapProjects\Neighborhood_Services\OwnerVRenterViolations\Maps\OwnerVRentalPublicNuisance.mxd 1 Ginny Sawyer Tom Leeson City Council Work Session February 9, 2016 Rental Licensing Questions/Direction Sought 1. What are the desired outcomes of a rental licensing program? 2. Is there additional information Council would like to see? 3. Does Council want to pursue a rental licensing program? 2 Rental Licensing Staff focus has been on compiling data: § Researching other communities § Housing data § Rental inspection data § Nuisance code data § Public Nuisance Ordinance data § Existing educational programs § Vacancy information 3 Peer Cities Peer City Review: § Boulder, CO § Asheville, NC - no program § Lawrence, KS § Palo Alto, CA - no program § Bellingham, WA § Santa Barbara, CA - no program § Provo, UT § Chapel Hill, NC – program ended § Eugene, OR § Tacoma, WA 4 Peer Cities The two most common themes when asked about existing programs: § Programs were typically designed to address substandard, older, modified or unsafe housing. § Most programs have gone through multiple iterations with changes to costs, scope, and inspection changes. 5 Housing § Fort Collins has approximately 25,336 rental units (includes apartments). § Represents roughly 45.5% of total housing units. § Rental housing tends to be concentrated near Colorado State University (CSU) but exists throughout the city in a variety of housing types. 2013 Census Bureau American Community Survey 6 Rental Housing Standards § The City of Fort Collins has rental housing standards in Chapter 5, Article VI, Division 2 of the City Code. First adopted in 1972, numerous updates since. § From October 2012 through December 2015, the City has performed approximately 135 onsite rental housing inspections. § Poudre Fire Authority inspects common areas, entry ways, corridors, exits, mechanical areas, laundry areas, pools, clubhouses and any shared public space in apartment complexes. (Annual-biannual) 7 Rental Housing Standards § Tenants can call and request a housing inspection anytime. § The ability to request an inspection is known and appropriately recommended by staff at the City and CSU, including Off Campus Life and Student Legal Services. 8 Nuisance Complaints Owner Occupied Properties 3,482 41% Rental Properties 5049 59% Total Code Compliance Violation Notices 8,531 100.0% 9 Code Compliance Violation Notices (Jan-Dec 2015) Includes weeds, rubbish, dilapidated fences, snow, unscreened trash, inoperable vehicles, outdoor storage. Nuisance Complaints 10 Voluntary vs. Involuntary Compliance (Jan-Dec 2015) . Total Voluntary Involuntary Owner Occupied Properties 3,482 95% 5% Rental Properties 5,049 93% 7% Public Nuisance Violations Public Nuisance Ordinance Cases – (Jan-Dec 2015) For repeated civil violations at one address (3 violations in 2 years or 5 violations in 3 years). Includes violations for code compliance issues noted above, animal control violations, noise or nuisance violations ticketed by Police Services. 11 Owner Occupied Properties 80 24% Rental Properties 251 76% Total Public Nuisance Ordinance Cases 331 100.0% Mediation Cases 12 2014 2014 2015 2015 Rental Housing Mediation Cases 245 53% 151 44% All Other Mediation Cases 217 47% 196 57% Total Mediation Cases 462 100% 347 100% Mediation Cases Education & Other Programs & Tools § Occupancy Regulations § Public Nuisance Ordinance § Nuisance Gathering Ordinance § Community Mediation Program § Community Liaison Programming § Landlord Education Training § Neighborhood Enforcement Team § Neighborhood Traffic Mitigation Program 13 Historical Vacancy Date US Colorado Fort Collins, CO 2013 6.49% 5.26% 4.05% 2012 6.77% 5.69% 3.01% 2011 7.40% 5.63% 2.77% 2010 8.17% 6.72% 4.56% 2009 8.43% 8.00% 7.05% 2008 7.86% 7.45% 4.78% 2007 7.87% 8.63% 5.00% 2006 7.70% 8.36% 5.12% 2005 7.74% 9.35% 8.32% 14 2013 Census Bureau American Community Survey (ACS) Rental Licensing Programs have a variety of components: § Voluntary Registration § Self-Certify Safety Checklist § Inspection upon Complaint (or other trigger) § Regular/Periodic Inspections 15 Questions/Direction Sought 1. What are the desired outcomes of a rental licensing program? 2. Is there additional information Council would like to see? 3. Does Council want to pursue a rental licensing program? 16 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Sources: Esri, HERE, DeLorme, TomTom, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, MapmyIndia, © OpenStreetMap contributors, and the GIS User Community City of Fort Collins Rental Inspections (10/2012 - 12/2015) CITY OF FORT COLLINS GEOGRAPHIC INFORMATION SYSTEM MAP PRODUCTS These map products and all underlying data are developed for use by the City of Fort Collins for its internal purposes only, and were not designed or intended for general use by members of the public. The City makes no representation or warranty as to its accuracy, timeliness, or completeness, and in particular, its accuracy in labeling or displaying dimensions, contours, property boundaries, or placement of location of any map features thereon. THE CITY OF FORT COLLINS MAKES NO WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE, EXPRESSED OR IMPLIED, WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA. Any users of these map products, map applications, or data, accepts them AS IS, WITH ALL FAULTS, and assumes all responsibility of the use thereof, and further covenants and agrees to hold the City harmless from and against all damage, loss, or liability arising from any use of this map product, in consideration of the City's having made this information available. Independent verification of all data contained herein should be obtained by any users of these products, or underlying data. The City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Printed: January 27, 2016 ! Rental Inspections City Limits GMA 0 0.5 1 1.5 2 Miles Scale 1:58,408 © K:\ArcMapProjects\Neighborhood_Services\OwnerVRenterViolations\Maps\RentalInspections_11x17.mxd ATTACHMENT 3 Owners have the option to use a City of Bellingham inspector or a qualified private inspector (private inspector will be required to take a training course pertaining to the program.) Occupancy is not addressed. Only time they envision occupancy coming up is if at the time of inspection they find people using spaces for bedrooms that don’t meet the requirements (however, treated as an issue of safety.) Parking is not addressed. Once every three years and on complaint basis. Rental properties containing up to 20 units, no more than 4 total units will be inspected every 3 years. For properties containing more than 20, no more than 20% of the total number of units (no more than 50 units) will be inspected every 3 years. A City of Bellingham inspection fee of $100 (per unit) is associated with the program while private inspectors maintain their own prices. When using a private inspector, the owner will be required to pay an administrative fee to the city of $41. Owners required to register their property with the city every year and post a certificate of registration in each rental unit. Exemptions (2): exempt from the entire program- units outside city limits, accommodations for transient guests, retirement and nursing homes, mobile/ manufactured homes, shelters for transitional housing exempt from the registration fee and safety inspection (registration still required)- owner occupied containing 2 units, government ownership, rentals that receive government subsidies, accessory dwelling units attached to single family units. As long as owner is living at the property, no need to register. No, but would face penalties for non- compliance. Will begin with safety inspections first in 2016 while implementing a new permitting and inspection system to replace existing obsolete and unsupported software. The city will integrate rental inspections into the new permitting software system by dividing the city into thirds. Inspections are projected to start in the 2nd quarter of 2016. After safety inspections, inspections will be fairly random to protect themselves from allegations of targeting. If registration does not occur in a timely manner, the case will be sent to Code Enforcement and financial penalties will be assessed to the rental owner. Palo Alto, CA-No program Asheville, NC-No program Santa Barbara, CA- No program maintenance code addresses occupancy. Zoning department addresses parking. Currently on a 5 year cycle but want to lower it to a 3 year time frame. Have re-inspection fees of $100 and trip charges of $75 if someone does not meet them for an inspection. At the beginning of the program, all rentals were required to be registered and then it was complaint based as to which units were inspected first. Program requires a 4-hour landlord training class to help landlords be more prepared for the renting process and how to handle difficult situations. Do not outsource any of their work. Work with the local police department to create a point system. Once a certain threshold is met through specific criteria the unit becomes a nuisance property. The unit stays as a nuisance property for a year and if police have to visit the property its 94$ per officer. Enforcement: 35 days to correct violations after 1st notice. 2nd notice with 14 days period to correct. Final notice with 7 days to correct. If nothing has been done then Municipal infractions are filed and can be charged up to $750 per count. Suggestions: Make sure you are well prepared and know how you are going to enforce the program. In addition, be open to change because more than likely the program will need to change over time. Lastly, creating fees help to keep the program cost efficient. In particular higher fees around $100 annually per unit. Have started using the software EnerGov. It was expensive to change over. Try to work with all departments (Building, Police, Water, etc.). That way each department has a contact for registration. Tacoma, WA (203,000) Multiple schools Since 2004 The program was looking to address equality for both landlords and tenants. If annual gross rental income of $12,000 or greater there is an annual fee of $90, if gross rental income is less than $12,000 there is an annual fee of $25 6 inspectors total For provisional rental properties, owner is required to fix all issues and submit to the City a certificate of inspection by a qualified outside inspector. Yes Yes No, only if there is an issue between landlord and tenant. City will only inspect a property if a complaint is made to the City. If after this inspection a rental property is found to be in non- compliance then a Provisional Rental Property License is issued. The City does not actually inspect the rental properties. Residential rental property owners are required to self-certify on their business license renewal that the unit complies with the State Landlord Tenant Act. No Heavily inform the public to avoid confusion and have the program ready to address issues that emerge at the start of the program. The program is enforced through the provisional rental property license 6B.165. Use the software SAP (already had it) Do not outsource any of the work; inspections are performed by a zoning officer and a building inspector. The original program was amended by state legislation that created a law stating the program could not require any type of structural changes or certain changes that could be costly. Before, the program inspected any unit that was not being used as it was originally constructed and required each unit to be up to building code. At beginning of program, inspections were done on any property that was a conversion first (single family dwelling now being used as a duplex or multifamily.) No, but can cite owners violations which could end up as a criminal misdemeanor charge. Enforcement: Correction list is provided with completion deadline and if the deadline is not met or substantial work is not completed then a notice of violation with a deadline of two weeks is sent. If no compliance, case is sent to the legal department. Suggestions: look at other cities and take the best from each. In addition, rewarding good behavior is usually more effective than focusing on bad behavior. For example, charging an amount and reducing it if the property and owner are in good standing. Fees should mitigate the cost of the program as well. Eugene, OR (159,000) University of Oregon (24,000) Rental housing code program…no licensing, 2004 The program was created to address basic living problems and create a quicker avenue for getting problems fixed (avoid legal hassles.) Yes-annual $10 fee per rental unit (when renting out by room, each room is one unit) No other fees 2 rental inspectors City staff manages and conducts all of the work related to the program with exception of a mailing service vendor who mails out billing statements. No, city zoning code addresses occupancy- single family homes can have no more than 5 unrelated adults No, has separate parking enforcement No, complaint driven only. Owners of all known rental units were contacted when the program launched, including a registration step to correct owner/unit information and/ or provide billing party information. Inspections are strictly complaint driven. The program has gone through 2 trial run periods and is going to have a third one due to push back, the program is still not considered permanent. Centered on the 6 basic habitable living standards: Heating, plumbing, weather resistance, structural integrity, smoke detectors, security- locks, (mold indirectly- added later, have to attribute it to under the code.) No, does levy fines though (increase in fine amount with each consecutive violation.) If violations of code standards are confirmed, an Order to Correct notice is sent with a deadline (typically 10 days). If repairs take longer the owner can submit a compliance schedule. If no effort to comply, daily penalties from $40- $2,000/day. Eugene had a lot of pushback from property owners because they believed this program overstepped the authority granted to local government. Students (tenants) played an important role in pushing this program forward (their support was necessary.) zoning dept. No, n'hood parking permit program in place. With license application (every 4 years; 2 if violations) and with change of ownership. Fire and building departments start annual inspection program with fraternities. Must name a local agent. Adopted SmartRegs ordinances- requires all rental housing to meet a basic efficiency standard by 2019. Will begin licensing short- term rentals in 2016. No, Nuisance Party ordinance in place. Increase enforcement, this can be in the form of enforcement officers, (many landlords will not voluntarily take on added expenses) and implement a Quality Assurance program (performed by a third party) to ensure the inspectors are completing safety checklists fairly and accurately. Lawrence, KS (80,000) Yes, UK (27,000) Licensing 2002 The program was modified in 2014 to encompass the entire city. Looking to solve issues surrounding a lack of maintenance (both exterior and interior) and absentee landlords that did not respond to tenant’s issues. Yes, $25 per unit Licensing fee, inspection fee and a “no show” inspection fee. 2 rental inspectors Yes, on complaint basis (no more than 3) No Yes, every 3 years With the expansion of the program, phased in over a 3 year period. License by last name per month, expecting 4 last name/ business entities each year. Inspect vacant units first to make it easier on the property owner and then do the oldest units next. Goal is to inspect dwelling units that are the oldest that often have the most issues. Only homes in residential zones need to be licensed; If owner occupied no license required; Local agent recommended not required. Have made substantially different changes to the original ordinance. Old ordinance had language that stated a private inspector could be hired but was removed due to no one pursuing that option and difficulty attached to monitoring inspections completed by someone outside the city. No. Disorderly House Nuisance Ordinance Have a good idea of startup costs; consider incentives for landlords, and implementation. Chapel Hill, NC (25,000) Yes (25,000) Licensing 2003 Yes. Variable. 2 for everything Yes (no more than 4) Permits required No, complaint basis Every tenant must be provided with a Rental Duties information Sheet No longer have a rental licensing program ATTACHMENT 1