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CR 95-71 First Reading Rental Registration Code \ y ,-' ,~ ~ April 28, 1995 o '" Council Report No. 95-071 . p ~ \ FIRST READING RENTAL REGISTRATION CODE Proposed Action. staff recommends the following motion: Move to approve first readinq of ordinance number 95-764 an ordinance amendinq section 405 of the Hopkins City Code Rental Property Reqistration. Approval of this motion will approve a first reading of an ordinance that will amend the city's Rental Registration Program allowing registration of all rental property in the city, allowing for inspection by policy and establishing penalties for non compliance. OVerview. The Inspections Division undertook a total review of the city Housing Code Program in 1994, including the Rental Registration Program. In reviewing the current program it was determined that the current Rental Registration Program should be updated to include registration of all rental properties. Providing a method of regular inspection of rental properties containing two or more dwelling unit. This is desirable to insure property values are maintained and provide for a safe healthful . environment for renters. The proposed ordinance provides for inspection of all rental units by policy. It also Provides for a revocation of the rental registration certificate by the city council for due cause. The Staff discussed this proposed ordinance with Council at the February 14th council Workshop. The content of the proposed ordinance remains basically unchanged since that discussion. The inspection policy recommendations have been revised to include all rental properties with the exception of condominiums and townhouses. The staff has taken the proposed ordinance to the Hopkins Apartment Managers Association, the Neighborhood Advisory Board and the Hopkins Business and civic Association. We have received support from all of these groups. prima:r:v Issues to consider. 0 Should the city register all rental properties? 0 What rental properties should be inspected? 0 Should the fees be increased? Supportinq Information. 0 Proposed Ordinance 95-764 0 Ordnance Overview 0 Ho ing 'I Breakdown e / y ----- . CR 95-071 e Page 2 Primary Issues to consider. 0 Should the city register all rental properties? The City's Strategic Plan for Economic Development identifies the need to examine, improve and aggressively enforce our housing maintenance codes. The City1s Housing study also identifies the need to evaluate our rental inspection program and the housing maintenance codes. The Inspections Division undertook a total review of the city Housing Code Program in 1994. This review was precipitated buy the desire to maintain property values and the housing stock of the community and to improve the communities enforcement effort as identified in the city's strategic Plan for Economic Development. The city of Hopkins has had rental registration requirements in the code since the early 1970's. These provisions were developed for the sole purpose of maintaining a list of the non-owner occupied dwellings and the persons responsible for the units. This list is used by police, fire and housing for emergencies and code complaints. . The Inspections Division over the years started inspecting all of the major residential rental structures on a regular basis under the authority granted in the housing code, but no correlation was ever made to the registration program. As staff reviewed the housing program it became apparent that the rental properties in the community are those that need the most attention. Most of the Housing Code related complaints received by the Division come from the rental properties. Many times when complaints are received from the neighborhoods the dwelling is a rental property. The major rental properties are being inspected regularly ever three to four years but the properties that contain four or less units are inspected by complaint only. The proposed ordinance if adopted will tie the Rental Registration Program to housing maintenance inspections. It will allow the Inspection Division, by policy, to inspect all rental units on a periodic schedule to insure compliance with the Housing Code. It will further allow Inspection Division staff with concurrence of the city council to revoke a registration certificate for failure to comply with orders issued by the Division. Registering all rentals will provide the Division with an inventory of the rental properties that will allow inspection personnel to monitor these properties. The fees collected will help defray the city's costs e associated with the maintenance of the program. CR 95-071 Page 3 . 0 What rental properties should be inspected? The Inspections Division inspects all of the major residential rental structures on a regular basis for compliance with the Housing Code and Fire Code under the authority granted in these documents. Regular inspections of rental structures have increased over the past eight to ten years to the current level which is as follows: . All major rental buildings containing more than 5 units are inspected every three to four years. . All other rental units are inspected on a complaint basis. Complaints are generated from various sources including, tenants, neighbors, city staff and Mayor/Council. The Division would like to begin regular inspections of all rental properties in the community. We feel that all rental properties with the exception of Condominiums and Townhouses should be inspected every five years. Condominiums and Townhouses do no generate many complaints and it is felt that these could be handled on a spot check and complaint basis. The division has one inspector who is dedicated to housing related issues but only 20% of his time is spent inspecting these structures for housing and fire code violations. The balance of the inspectors time is spent in nuisance abatement inspections, answering junk car complaints and in enforcement of the Truth in Housing Program. With the current . prioritization of the housing inspectors time it is possible to do regular inspections of all rental properties with the exception of Condominiums and Townhouses every five years. If the Council wishes Condominiums and Townhouses could be inspected regularly. This would require the time frame for inspections be increased, the time spent on other programs modified or additional personnel provided. It is estimated that to inspect the 883 condominiums and townhouses currently in Hopkins, more staff time would be required to inspect and follow up on these units than will be expended in inspecting all of the other rental units. It is staffs opinion the expenditure of time would out weigh the benefits to the community. By inspecting all rental properties with the exception of Condominiums and Townhouses, we will be maximizing staff resources to those properties that generate the most complaints. o Should the fees be increased? At this time the Inspection Division does not see the need to make any changes to the current fee schedule. We feel the fees are adequate to cover the cost of enforcement. We anticipate generating an additional $20,000 in revenue by registering all rental dwellings. The new program will require over 1000 dwelling units not currently registered to do so. ~ The current fees are: Multiple Dwellings $2.50 per unit ($20.00 min.) Two Family Dwellings $20.00 Single Family Dwellings $20.00 Rooming Houses $2.50 per unit ($20.00 min.) CR 95-071 e Page 4 Alternatives. a Approve a first reading. staff recommends this course of action. a Table and request further information from staff. a Do not approve first reading. Following this course of action will maintain our current rental registration program. . . , ... ORDlNANCE NO. 95 -764 . An Ordinance relating to Rental Registration; replacing Section 405.21 through 405.31 of Chapter IV of the Hopkins City Code. mE CITY COUNCIL OF THE CITY OF HOPKINS DOES ORDAIN: 407.01. Preamble. The City believes that providing for public health, safety and welfare to its citizens mandates the existence of a residential rental premises registration and maintenance program which corrects substandard conditions and maintains a standard for residential rental premises. 407.02. Scope. This Section applies to all premises which are rented in whole or in pU11 as a dwelling unit. It includes accessory structures such as garages and storage buildings and appurtenances such as sidewalks and retaining walls, which are on the premises. This Section does not apply to Minnesota Deparonent of Health licensed rest homes, convalescent care facilities, nursing homes, hotels or motels licensed by the City. 407.03. Registration. Subd.1. Required. No person shall operate, let or cause to be let, a rental dwelling unit which has not been properly registered with the City of Hopkins in the manner required by this Ordinance. Upon receipt of the properly-executed application for registration, the Code Official and/or his or her designated agent may cause an inspection to be made of the premises to . determine whether it is in compliance with Section 405, other Hopkins ordinances and the laws of the State of Minnesota. Every premises may be reinspected after a renewal application is filed to determine if it still confonns to all applicable codes and ordinances. Subd. 2. Application Filed. A registration application shall be submitted to the Code Official on forms furnished by the City of Hopkins and must contain the following infonnation: (a) Name and address of the owner of the premises. (b) Name and address of a person in addition to the owner who shall be responsible for compliance with this and any other Code requirement pertaining to the premises; such person shall reside in the metropolitan area. (c) Name and address of any owner's agent responsible for the management of the premIses. (d) Name and address of all partners if the owner is a partnership. (e) Name and address of all officers of a corporation if the owner is a corporation. (f) Name and address of all vendors lli1d of all vendees, if the premises is being sold . pursuant to a contract for deed. c: \file lhopcivil\rentreg2,ord 1 - . (g) Name and address of any assignees of either the vendor or the vendee in any such contract for deed. (h) Legal address of the premises. (i) Number and type of dwelling units (one (1) Bedroom, Two (2) Bedroom, etc. . . .) within each of the premises. Subd. 3 Agent for Emergency Repair Required. No registration shall be issued or renewed for a nonresident owner of the premises unless such owner designates in writing the name of his/her agent who is responsible for maintenance and upkeep and who is authorized to institute emergency repairs of the premises. The Code Official shall be notified in writing of any changes of such agent Subd.4. Changes in Registration or in Premises Registered. A registration is not assignable. If the name or address of any of the persons required to be provided changes, or if any changes occur in the ownership or management of the premises, the existing registration shall be amended within thirty (30) days to correspond to such changes and each such amendment shall be accompanied by a fee set by Chapter X. If changes are made in the number or type of units registered, such additional units shall be registered and shall be accompanied by the fee required to be paid for initial registration. Subd.5. Annual Registration. All residential rental premises shall be registered before being let, in whole or in parr. Registration tor each premises expires annually on October 31. The registration for each premises must be renewed annually before October 31. . Subd. 6. Registration Fee. The initial and renewal registration fees are set forth in Chapter X. These must accompany the registration application. The registration fee is doubled when an application is received more than thuty (30) days after it was due. Subd. 7. Record Retention. The registration application and all other documents pertinent to a premises shall be kept on file in the office of the Code Official. A copy shall be furnished to the owner or other authorized person upon request. 407.04. Posting. The owner of a premises shall post a copy of the "Occupancy Record Card" at the premises in a place and in a manner approved by the Code Official. 407.05. Inspection The Code Official may set up a schedule of periodic inspections to insure compliance widl this Chapter. The Code Official shall provide reasonable notice to the owner or the owner's agent as to the date and time of the inspection. Each occupant of a dwelling unit shall give the owner or the owner's agent access to any part of such dwelling unit at reasonable times for the purpose of effecting inspection, maintenance, repairs or alterations as are necessary to comply with the provisions of this Ordinance. If any owner, owner's agent or occupant of a dwelling unit fails or refuses to permit entry to the premises under hislher control for an inspection pursuant to this Ordinance, the Code Official may seek a Comt Order authorizing such inspection. . 407.06. Revocation. Subd.1. The City Council may revoke the registration of any premises. The bases for such revocation include, but are not limited to, the following circumstances: c:\file lhapcivil\rentreg2.ord 2 . , .. . (a) The registration was procured by misrepresentation of mateIial facts with regard to the premises or the ownership of the premises. (b) The applicant or one acting in hislher behalf made oral or written misstatements accompanying the application. (c) The applicant has failed to comply with any condition set fOlth in any other pelmits granted by the City of Hopkins. Cd) The activities of the owner/agent create or have created a serious danger to the public health, safety or welfare. (e) TIle premises contains conditions that might injure or endanger the safety, health or welfare of any member of the public. Subd.2. Notification. Before revoking a registration, the Code Official shall notify the owner or the owner's agent in writing of the basis for the revocation and the date upon which the City Council shall review the request to revoke the registration. The notice required by this section shall be served upon the owner or the owner's agent at least twenty (20) days before the City Council hearing. Service shall be deemed sufficient if the notice is sent to the owner or the owner's agent by fIrst class mail at the address provided in the registration application. The Code Official also shall post the notice in a conspicuous place at the premises at least seven (7) days before the City Council hearing. . Subd. 3. Hearing. The owner or the owner's representative, Code Official and any other person whose interests would be affected by revocation of the registration shall be given an opportunity to be heard. Subd. 4. The City Council shall issue a written decision regm'ding the request for revocation no later than the third regularly-scheduled City Council meeting following the date of the heming. 407.07. Effect of Revocation. If a registration is revoked by the City Council, it shall be unlawful for the owner or the owner's agent to thereafter permit the occupancy of the then-vacant or, thereafter vacated, dwelling units, until such time as a valid rental registration is obtained for the premises. Issuance of a new registration after revocation shall be made in the manner provided for in Section 405.06. 407.08. Posted to Prevent Occupancy. Whenever any premises has been denied initial registration, had its registration revoked, or is unfit for human habitation, it shall be posted by the Code Official to prevent fUliher occupancy. No person, otller than the Code Official or his representative, shall remove or alter any posting. The Code Official will post the date the premises shall be vacated and no person shall reside in, occupancy or cause to be occupied that premises until the Code Official permits it . 407.09. Penalties. A person who violates the provisions of Section 407 is guilty of a misdemeanor. Each day that a violation continues shall be deemed a separate offense. The Code Official may post c;\fi!e 'hopcivil\fentreg2.ord 3 - ~ , . the prerrrises by appropliate signs or notices prohibiting occupancy, and may act to cause the premises to be vacated or remain vacant until the Code violations are cOlTected. 407.10. No Warranty by City. By enacting and undertaking to enforce this Ordinance, neither the City nor its Council, agents or employees warrant or guaranty the safety, fitness or suitability of any dwelling in the City. Owners and occupants should take whatever steps they deem appropliate to protect their interests, health. safety and welfare. This Ordinance is effective subject to the following: First Reading: Second Reading: Date of Publication: Effective Date of Ordinance: Charles D. Redepenning, Mayor Attest: . James A. Gene1lie. City Clerk e c: \file lhopcivil\rentreg2.ord 4 . Overview Proposed Rental Registration Ordanance The city of Hopkins has had rental registration requirements in the code since the early 1970's. These provisions were developed for the sole purpose of maintaining a list of the non-owner occupied dwellings and the persons responsible for the units. This list is used by police, fire and the housing inspector for emergencies and code complaints. The current city Housing Ordinance requires that nonowner occupied dwellings containing 2 or more rental units be registered. The proposed ordinance differs as follows: . The new ordinance would require all dwelling units that are rented, whether owner occupied or not, including single family homes, condominiums and townhouses, be registered annually. . No Fee increase is proposed for registration of units. However, those units that are not now required to be registered will be required to pay a $20.00 fee. . The new ordinance would allow the Inspection Division, by . policy, to inspect all registered rental units on a periodic schedule to insure city-wide compliance with the Housing Code. Currently the Inspection Division is inspecting the larger rental units (5 units and larger) on a regular basis, but the others are done by complaint only. Due to the current prioritization of the housing inspectors time it would be possible to do regular inspections of all rental properties with the exception of condominimums and townhouses every five years. The condominimums and townhouses would be done by spot check and complaint. . The Inspection Division under the new ordinance would also have the authority to investigate complaints related to any rental dwelling or dwelling unit. Any correction orders issued by the Inspection Division to the owner, agent or occupant, will be 1n writing, allowing a reasonable time to correct the violations, and will allow for an appeal to the city council. . A rental registration certificate will (as is currently done) be issued yearly and will be required to be posted. The proposed ordinance will give the Inspections Division the added ability to suspend or revoke a rental certificate, following a hearing before the City Council. The possible reasons for suspension or revocation would be: . I. The registration was acquired by fraudulent information. . 2. The applicant failed to comply with conditions in any other permits or orders issued by the city. 3. The activities of the owner/agent create a serious danger to the public health, safety, or welfare. 4. The owner/agent fails to comply with this ordinance including orders issued under the housing code. . In the event that a rental registration certificate 1S suspended or revoked by the city Council, the owner/agent would be prohibited from renting any currently vacant or thereafter vacated units, until such time that the rental registration is restored. It would not require the entire building be vacated. . . . CITY OF HOPKINS RENTAL HOUSING UNITS Buildings Rental Units Single Family...............,..,..,..,....................,..,......,.................,.....,..,............. .72...,..,..,.............72 Townhomes.,.,......................,..,........................,..,..,..,....................,..,..,..... .123.........., ,...... .123 Condos........,...........................,..............................,..,...,...................,......... 760............. .,....760 Owner Occupied Doubles. ...,...,.,. .,.... .... ......... .....,... ... ......... ... ... ..... ... .,..,... ...... ....... ... ...... .,.. ...123. ... .......... .... ...123 SUB- TOT AL 1078 1078 Non-Owner Occupied Doubles,....................................................................................................... ] 21................... .242 . T ri p lexes.. . .. . .. . .. .. .. . .. . . .. . .. .. . . .. . .. .. .. .. . . . . . . . . . . .. . .. . .. .. . .. . .. . .. . .. . . . . .. . . . . . . . .. . . .. .. . .. . . . . . . .. . .6. .. . . . . . . . . .. . .. . .. ., 1 8 Apartments,. .... ...... .... ... ...... .,.. ..... ... .... ..... ... .,. .,... ............... ... ... ... .... ..... .... ....100... ..,.... ... .... ..4178 SUB- TOTAL 227 4438 TOTAL 1305 5516 .