VII.1. First Reading Ordinance Repealing Chapter 20, Article II of the Hopkins City Code regarding Truth in Housing; KearneyDecember 15, 2020 Council Report 2020-099
ORDINANCE REPLEALING CHAPTER 20, ARTICLE II
OF THE HOPKINS CITY CODE REGARDING TRUTH IN HOUSING
Proposed Action
Staff recommends adoption of the following motion: Move to adopt for first reading Ordinance 2020-
1161 An Ordinance Repealing Chapter 20, Article II of the Hopkins City Code Regarding Truth in
Housing.
Overview
Staff has been reviewing process improvements over the past year and evaluating the cost benefit of
various services. One area there is an opportunity for efficiency with minimal impacts is by eliminating
Truth in Housing Inspection requirements.
Truth in Housing Evaluations are required for the sale of residential buildings with one, two, three or
four dwelling units (including condos and townhouses). Private evaluators licensed by the city do the
evaluations and internal staff support to assist with the inspection. These evaluations provide
prospective buyers with information about the condition of the house and garage. Completed
evaluation reports must be filed with the city along with a filing fee of $35.00 per evaluation. Reports
are valid for one year from the date of the evaluation and are non-transferable. A new evaluation must
be conducted for each sale. Any “Repair” or “Replace” items on the evaluation have to be corrected.
Once the corrections are made, a City Inspector goes out to verify the work was done.
These inspections have a cost to the homeowners of approximately $200 - $500 per inspection. The
inspections can be stressful for both the seller, buyer of the property and staff since they can hold up
home sales and are often overlooked as closing requirements. The City receives $35 per evaluation or
approximately $11,000/year to supplement the cost of this service. Staff estimates the internal cost of
these services to be roughly 0.7 FTE (split among multiple employees) or approximately $67,000/year.
Staff has proposed temporary staffing reductions in the inspections division related to rental
inspections being suspended due to COVID-19. The elimination of Truth in Housing will allow us to
be able to redistribute work related to those reductions internally and better manage the impact of the
temporary staffing reductions. Beyond the workload efficiencies, there will be a cost savings to
homeowners during the home sale process.
Staff believes the service impact to homeowners will be minimal since almost all homebuyers have a
private home inspection prior to purchase. Staff will continue to monitor for any quality impacts, if
any, on the City’s housing. Based on these factors, Staff is recommending removing Truth in Housing
requirements outlined in City Code Chapter 20 Article II at this time.
The draft ordinance has been reviewed by the City Attorney.
Supporting Documents
Proposed Ordinance 2020-1161
Christopher Kearney, Building Official
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2020-1161
ORDINANCE REPLEALING CHAPTER 20, ARTICLE II
OF THE HOPKINS CITY CODE REGARDING TRUTH IN HOUSING
THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
SECTION 1. Hopkins City Code Chapter 20, Article II is repealed in its entirety.
SECTION 2. The effective date of this ordinance shall be the date of publication.
First Reading: December 15, 2020
Second Reading: January 5, 2021
Date of Publication: January 14, 2021
Date Ordinance Takes Effect: January 14, 2021
BY THE CITY COUNCIL
Jason Gadd, Mayor
ATTEST:
____________________________
Amy Domeier, City Clerk