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HomeMy WebLinkAboutMemo - Read Before Packet - 6/20/2023 - Memorandum From Marcy Yoder And Meaghan Overton Re: Read-Before Memo For Item #23 – Items Relating To Housing Strategic Plan Implementation: Rental Housing Registration ProgramCi Fort of Planning, Development & Transportation Services Community Development & Neighborhood Services 281 North College Avenue P.Q. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov. com MEMORANDUM DATE: June 20, 2023 TO: Mayor and City Council Members THRU: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager 1 . FROM: Marcy Yoder, Neighborhood Services Manager Meaghan Overton, Housing Manager RE: Read -before Memo for Item #23 Items Relating to Housing Strategic Plan Implementation: Rental Housing Registration Program This memo is to clarify several issues or questions from the First Reading of the Rental Housing Program. This information will be a part of the presentation from staff this evening. 1) Additional context to the requested amendment which exempts owner -occupied units and Mobile Home Park rental units. 2) Consideration of rental complaints up to two weeks after moving out. 3) City Manager's authority to set fees and address low-income applicants. 4) Public Access to records regarding rental registrations and violations. 5) Additional responses to questions from Councilmember Peel (via email 06.19.23). Amendment Ordinance No. 086,2023 included the following amendment to Code Section 5-283 (in gray): Sec. 5-283. Registration required. (a) An owner of a long-term residential rental dwelling unit shall register it with the City and comply with the requirements pursuant to this Division. (b) Long-term residential rental units described in one or more of the following paragraphs are exempted from the registration requirements of this Article: (1) A long-term residential dwelling unit occupied by the owner; and (2) A mobile home rental unit in a mobile home park, as defined and described in Chapter 18 of this Code. Additional context and consideration for these two exemptions include the following: • The City does not know how many owner -occupied units are being rented. The three scenarios heard most often are: City of Fort Collins Planning, Development & Transportation Services Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov. com a Resident that needs to rent a part of their home to maintain ownership and/or age in place. o Resident willing to rent part of their home at a reduced rent to assist another person transitioning into a house of their own. (i.e. person experiencing homelessness or a recent immigrant or refugee) o Parent purchasing a house in their student's name and renting to 2 other roommates. o These are not typically business opportunities but rather a way to maintain stable housing for the owner. • Tenants can continue to request a complaint -based rental inspection if there were concerns about the unit not meeting minimum health and safety standards or request mediation services based on the situation. • The estimated number of mobile homes for rent in Fort Collins is 242 of the approximately 38,000 rental units (less than 1%). • Mobile home units cannot be purchased with a mortgage loan but can be purchased with a personal loan or cash like those used to purchase vehicles. • There are additional protections and resources at both State and local levels for mobile home residents' rights. Move -out Inspection This program proposes an internal policy change to allow Rental Inspectors to contact property owners regarding permission for a complaint -based "move -out inspection" initiated by a former tenant up to two weeks following the end of the tenancy. Tenants would need to provide both detailed descriptions and video or photographic evidence of potential violations. City Staff would contact the property owner to request entry or documentation that the potential violation was corrected. Reduced fees Council does not need to act on this issue. The Code (Section 5-284(c)) directs the City Manager to establish a fee schedule for initial and renewal registrations. The amount of administrative fees set by the City Manager permits the City Manager to consider distinctions among feepayers and other relevant factors. (Section 7.5-2) Therefore, this fee scale may be modified as information is gathered during the life of this Rental Housing Registration program. Most property owners discussed as having this need have been exempted through the amendment. Staff will continue to monitor the need for reduced fees for low-income landlords during education and outreach. Public access to records More details will be available as the software module is designed. The assumption is that it will be like what can be found on the Citizens Access Portal currently for building permits and City of Fort Collins Planning, Development & Transportation Services Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov. com violations. Residents currently can type an address into the website and view information on building permits and/or violations. Registrations will likely be similar to building permits and violations found during a compliant -based rental inspection would also be displayed as outstanding or resolved. Responses to follow-up questions from Council 1. Why do we need a rental registry if Utilities (and other providers) have a database of rental properties? Is there an issue that precludes us from sharing databases? The only data available from the Utilities database is the aggregate estimate of rental unit information (pulled from both utility records and the county assessor). There are legal requirements that protect the Utilities database, therefore other city departments cannot access individual records of ownership, addressing, etc. 2. If we exclude MH parks and CSU and owner -occupied, are we not excluding the people we are trying to help? The people who would be affected most by an imbalance of power? CSU housing is exempt as the city does not regulate activities on its property. The concern from the community was that requiring registration for mobile homes and owner -occupied was a risk of displacing the tenants in these types of units. Tenants will still have access to mediation services and can request complaint -based rental inspections. 3. What is the rationale behind appealing a denial to just one person? Why wouldn't there be multiple layers to an appeal? The City Manager is the designated appointee under our Code to hear administrative appeals in accordance with Chapter 2, Article VI. Administrative decisions of this sort are subject to judicial review similar to the review of other quasi-judicial decisions by City officials. 4. Why do we need such extensive penalties? Couldn't we just do outreach to have people comply? Offer incentives? Maybe a deadline with a late fee that goes up like parking tickets? This program is designed for voluntary compliance and that is the focus of the efforts staff is describing. We are confident the education and outreach efforts and resources devoted to the program will yield a high percentage of compliance. However, there may be some circumstances in which property owners are unaware, unresponsive or unwilling to meet the City's adopted codes. In those cases, the potential penalties for the failure to register a rental are the same as for any civil infraction under the Code. Similar to parking tickets, there is an escalating fine schedule that would apply before going beyond a financial penalty. The language in the rental program code mirrors enforcement language for many other city regulations. These penalties are set out in the Code and what penalties apply are determined through proceedings in Municipal Court. 5. Why are we taking a punitive approach instead of a collaborative approach? This program is designed for collaboration among landlords, tenants and the city, and voluntary compliance is the focus. We are confident the education and outreach efforts and resources City of Fort Collins Planning, Development & Transportation Services Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com devoted to the program will yield a high percentage of collaboration and compliance. The code outlines enforcement actions, only if compliance is not reached. This is similar to our current nuisance code, and we would expect the same results of over 90% voluntary compliance. 6/20/2023 Fort of dal Hqysingfrogramiapond.Beading Housing Strategic Plan Implementation Meaghan Overton. Housing Manager, Sustaina iliiy Services Marcy Ydder, Neighborhood Services Manager 6-20-23 1 Fort S Background + Policy Alignment • Strategy 20 - Explore the option of a mandated rental license/registry program and pair with best practice rental regulations. OUR CLIMATE FUTURE Big Move 7: Healthy, Affordable Housing • HAH6: Explore mandated rental license/rental registry 2 1 6/20/2023 Fort ins Background + Policy Alignment by are we looking at a rental registration program? • Greatest Challenge #7: Housing policies have not consistently addressed housing stability and healthy housing, especially for people who rent • Community engagement: a desire to proactively ensure healthy, safe units and maintain neighborhood quality of life Increase Accessibility (2) Preserve Existing Affordable Housing (S) Increase Housing Supply & Affordability (12) Key Outcomes Improve housing equity (11) Increase Housing Diversity / Choice (12) Increase Stability I Renter Protections ) (11) 3 -Fort Collins Background + Policy Alignment 4 Purpose of a rental registration program • Track and manage data about rental properties to better understand housing needs and trends • Increase education, outreach, and mediation resources for both tenants and landlords • Improve systems and implementation of complaint -based inspections • Ensure rental properties meet minimum health and safety standards on a complaint basis 4 2 6/20/2023 Fort Collins Additional Information Medaation Education & Outreach Complaint - Based System Improvement 5 ,For Collins Additional Information Additional information requested re►ardins: • Amendment that could exempt owner - occupied and mobile home rental units. • Allowing complaint -based rental inspections up to two weeks after vacating the unit. • Possibility of reduced fees or sliding fees for low-income landlords. • Privacy considerations and public access to rental registrations and violations. Enhanced Mediation Rental Registration u u Education & Outreach Complaint - Based System Improvement 6 3 6/20/2023 Fort Collins Amendment Rental Propert Registration Amendment Ordinance No. 086,2023 included the following amendment to Code Section 5-283 (in gray): Sec. 5-283. Registration required. (a) An owner of a long-term residential rental dwelling unit shall register it with the City and comply with the requirements pursuant to this Division. (b) Long-term residential rental units described in one or more of the following paragraphs are exempted from the registration requirements of this Article: (1) A long-term residential dwelling unit occupied by the owner; and (2) A mobile home rental unit in a mobile home park, as defined and described in Chapter 18 of this Code. 7 Fort�ns Move — Out Inspections Complaint -Based Inspections • Complaint -based rental inspections could be requested within two weeks of vacating the rental unit. • Detailed descriptions and either video or photographic evidence of the potential violations would need to be submitted. 8 4 6/20/2O23 Gty of _Fort Collins Fee Schedule Reduced Fees for Lower -Income Landlords • Council does not need to act on this issue. • City Manager establishes fee schedules and can permit considerations of distinctions among feepayers and other relevant factors. 9 city0 Fort Collins Public Access 10 Public Records • Subject to Colorado Open Records Act (CORA) request processes and practices • Software design dictates information available to the public outside of a CORA request • Current software design for Building Services: • Accessible through Citizen's Access Portal by address • Permit types and history • Building violation types and history 10 5 6/20/2023 THANK YOU! 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