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HomeMy WebLinkAbout045 - 05/05/2009 - AMENDING SECTION 5-261 OF THE CITY CODE RELATED TO FEES FOR RENTAL HOUSING AND ESTABLISHING AN INCEN ORDINANCE NO. 045, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 5-261 OF THE CODE OF THE CITY OF FORT COLLINS RELATED TO FEES FOR RENTAL HOUSING AND ESTABLISHING AN INCENTIVE PROGRAM WITH REGARD TO THE PAYMENT OF SUCH FEES FOR RENTAL DWELLING UNITS NOT PREVIOUSLY RECORDED WITH OR APPROVED BY THE CITY WHEREAS, sanitary and safe housing for all Fort Collins residents is one of the City Council's highest priorities; and WHEREAS, to help ensure the provision of such housing, the City Council adopted Ordinance No. 108, 2008, on October 21, 2008, updating minimum health and safety standards for rental housing (the "Rental Housing Standards"); and WHEREAS, on that same date, the City Council also adopted Ordinance No. 109, 2008, which, among other things, added language to Section 5-260 of the City Code stating that no building containing two or more rental dwelling units in the City can be offered for rent unless a certificate of occupancy has been issued for such building; and WHEREAS,there are numerous unrecorded and/or unapproved rental dwelling units in the City,that is,housing units that were created or converted without required City inspections,permits or certificates; and WHEREAS, City staff has no way of determining just how many rental dwelling units actually exist in the City, much less how many of those units may present a health or safety risk to their occupants or may otherwise fail to comply with the Rental Housing Standards; and WHEREAS,to address this problem,the City Council has directed staff to develop financial incentives that would encourage the owners of unrecorded/unapproved rental dwelling units to obtain certificates of occupancy and comply with the Rental Housing Standards; and WHEREAS, City staff and community stakeholders, have jointly recommended to the Council a twenty-five month incentive program during which the owners of unrecorded/unapproved rental dwelling units.will be able to apply for certificates of occupancy for their dwelling units and also apply for such building permits as may be necessary to bring such units into compliance with the Rental Housing Standards, without having to pay the impact fees and plant investment fees that would normally be payable upon the issuance of building permits for construction or conversion of the rental dwelling units; and WHEREAS,the application fee for such certificates of occupancy during the incentive period would increase during this period of time, starting at $200, increasing to $300, and ultimately to $400; and WHEREAS,the City Council believes that such incentive program would:(1) help eliminate health and safety risks in existing substandard rental housing;(2) encourage widespread compliance with the Rental Housing Standards; (3) allow a reasonable period of time for all rental property owners to become aware of the incentive program, and (4) be in the best interests of the health, safety and welfare of the residents of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 5-261 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 5-261. Fees. Whenever a building permit or certificate of occupancy is required under this Chapter or under any other provision of the City Building Codes, all applicable City fees and taxes shall be paid by the property owner. Section 2. That the following incentive program is hereby approved by the Council: a. Notwithstanding any provision of the City Code or Land Use Code to the contrary, the owner of any dwelling containing two (2) or more dwelling units that was constructed or converted to use as a two-family or multi-family dwelling on or before December 31,2008,and that, according to the records of the Building Official, has not previously received a certificate of occupancy or other written evidence of approval from the City, may be issued a certificate of occupancy for such dwelling and, if such certificate of occupancy is issued, be relieved of the obligation to pay the impact fees that would normally be payable under Chapter 7.5,Article 11, I11, V,and VI of the City Code or the utility plant investment fees that would normally be payable under City Code Sections 26-120, 26-283, 26-472, and 26-512 for the construction or conversion of said dwelling units, as long as the following conditions are met: (1) If the use of the dwelling as a two-family or multi-family dwelling is not currently allowed under the zoning regulations of the Land Use Code, the owner of the dwelling must produce clear and convincing evidence that the dwelling was first used as a two-family or multi-family dwelling at a point in time when such use was permitted in the zone district in which the dwelling is situated; and (2) The owner's application for such certificate of occupancy must be filed with the City no later than June 15, 2011, and the owner must pay an application fee as specified herein. Prior to June 15, 2010, said application fee shall be in the amount of Two Hundred Dollars ($200); between June 16, 2010, and December 15, 2010, said fee shall be in the amount of Three Hundred Dollars($300);and between December 16, 2010, and June 15, 2011, said fee shall be in the amount of Four Hundred Dollars ($400). -2- b. After June 15, 2011, the owner of any such dwelling shall pay all fees and taxes applicable at the time the owner applies for a certificate of occupancy, unless the owner came into ownership of such unit on or before December 31,2008,and demonstrates to the satisfaction of the Building Official or the Building Review Board, prior to June 15, 2012, that he or she could not reasonably have known about the incentive program established by this Section 2, in which event the owner's application for a certificate of occupancy shall be processed as if it had been received prior to June 15, 2011. C. Nothing herein shall relieve the owner from obtaining such.building permits and inspections as may be required to bring a rental dwelling unit into compliance with the requirements of the City Code and Land Use Code, and paying all associated fees, excluding only those fees specified in Section 2(a) above. Introduced, considered favorably on first reading, and ordered published this 21st day of April, A.D. 2009, and to be presented for final passage on the 5 a of May, A.D. 2009. Mayor ATTEST-- City Clerk Passed and adopted on final reading on the 5th day of May, A.D. 2009. May ATTEST: City Clerk-