CR 92-42 Truth In Housing
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council Report No. 92-42
February 10, 1992
TRUTH IN HOUSING
Proposed Action. Staff recommends adoption of the following
motion: Move to approve for first readina Ordinance # 92-705
which would establish a Truth in Housing code for the City of
Hopkins.
This action will adopt for first reading a new ordinance
establish~ng a Truth in Housing code for the city of Hopkins.
Overview.
The City Council and Staff have been discussing a Truth in
Housing code since the summer of 1990.
The City Council at the January 21st 1992 meeting, requested
staff to complete drafting the ordinance with several recommended
changes and bring it back to council for a first reading.
The city Attorney has made all of the changes requested by the
council. In addition, language that would delay implementation
until August 1st was added to allow for a public education
period. We have also listed in the ordinance the hazardous items
requiring correction by the home owner before sale.
The staff has sent letters to the Hopkins neighborhood
association presidents and to local Realtors notifying them of
the first reading and briefly describing the program. We have
also requested the Sailor print a short notice of the meeting.
The fees associated with this new program are not included in the
draft ordinance, but will be brought to the city Council
separately at a later date. It is anticipated $50.00 Will cover
certification of evaluators, and $20.00 will be recommended as a
fil'ing fee for a Truth in Housing disclosure report.
Supportinq Information.
o January 15th memo from Tom Anderson giving background.
o Ordinance # 92-705
Alternatives
o Approve the staff recommendation.
o Approve the staff reqommendation with changes.
o continue action for further information
'0 Do not adopt a Truth in Housing code.
'~7/1/Ut..U(1./VI d tA..4LgJ/ f)F
Thomas Anderson I (j
city Building Official
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CITY OF HOPKINS
MEMORANDUM
DATE
January 15, 1992
TO:
Mayor, and city council
FROM:
Tom Anderson
SUBJECT:
Truth in Housing Code
PURPOSE:
The purpose of this .report is to advise the council of staff's
progress on studying the issues pertaining to a Truth in Housing
Ordinance. staff is requesting further direction from the city
Council to be used in the continued development of the draft
ordinance.
BACKGROUND:
The city council and staff met in the summer of 1990, to discuss
ways to improve the inspection department's image in the
community. We also discussed the various codes the department.
enforces, and as a result of the discussions, the City council
requested the department look into the preparation of a Truth in
Housing Ordinance similar to Minneapolis to be applied to all one
and two family dwellings sold in the city. .
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A draft Truth in Housing Code was prepared and brought back to
the city Council in December of 1990. This plan included
combining the existing certificate of occupancy inspection
program, rental registration ordinance, and the Minneapolis Truth
in Housing Code into one new city code called the "Rental
Registration and Truth in Sale Code". The city Council provided
specific direction to the staff and the ordinance was re-drafted
to reflect that direction.
The staff took the newly drafted proposal to the community to
solicit input. An article was run in the local newspaper and the
Southwest Community 'News carried a story requesting public'
comment. The staff also presented the draft to the Hopkins
Business Council, and two public .meetings were held. Invitations
were sent to the local Realtors and to the City neighborhood
association presidents inviting there comments. An article
requesting comment was also published in the Realtors magazine.
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Mayor, and City Council
Page 2
January 15, 1992
The staff has taken the comments received from _the public and
city attorney and re~drafted the Truth in Housing Ordinance.
The current draft of the Truth in Housing Code no longer contains
the provisions of the Certificate of Occupancy inspection program
or the Rental Registration program. Those documents continue to
stand alone and will be brought forward separately for their
further revision. This was done-because of comments both from the
public and from the City Attorney that confusion was created by
the mixing of the-separate ordinance provisions.
The new Truth in Sale draft has not changed drastically, except
for the separation of the ordinances. The new Truth in Sale draft
stands alone and contains the following provisions:
o Persons o~ning and wishing to sell a one, two, tbree, or
four family dwelling, including condominiums and
townhouses, within the City of Hopkins, would be
required to hire a certified, 3rd party housing
evaluator. This certified housing evaluator would be
required to provide to the City, prior to the sale, a
Truth in Housing Disclosure Report Form and a Truth in
Housing Zoning Report.
o The ordinance still contains a 30+ page certified
evaluator guideline document. This document sets forth
the information that must be provided by the certified
evaluator and assists him in determining whether items
he identifies in the dwelling meet the City requirements,
do not meet the/City requirements, or are determined to
be hazardous.
o The new draft still requires that items marked as haz-
ardous by the certified evaluator, be corrected prior to
sale. New language, requested by the public, was added
that would allow the buyer of the property to accept the
responsibility for making correction of the hazardous
items. The buyer could accept responsibility for making
the repairs, provided the building remains vacant
until the items are corrected and upon receiving the
written consent of the housing inspector. Under this
circumstance, the buyer would be required to provide a
financial guarantee and evidence of a reasonable
completion date acceptable to the. Inspection Department.
o The new draft also includes a warranty disclaimer clause
on behalf of the City stating the City does not warrant
or guarantee the safety, fitness, or stability of any
building in the City.
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Mayor, and city council
Page 3
January 15, 1992
o The new draft still contains a requirement that the
certified evaluator carry a current unexpired Certificate
of Competency card as issued by the city of Minneapolis
or st. Paul. It further requires that the evaluator
provide proof of general liability insurance in the
minimum amount of $250,000 general aggregate and per
occurrence. The evaluatior must also carry errors and
omission insurance with a minimum liability of $250,000,
which may include a deductible of not .more that $5,000.
The City must be included as a named insured on the
insurance policy.
o Fees are not included in this draft, and will be brought
forth at a later date. It is. anticipated that the fee for
filing of a Truth in Sale Report will be somewhere in the
neighborhood of $15-$25.
Supportino Information
o Copy of.draft Ordinance.
ORDINANCE NO. 92-705
Purpose. For the benefit of the community, the City of
Hopkins has deemed it necessary and appropriate to maintain,
preserve and improve residential housing by providing an
orderly and effective way to insure compliance with housing
codes and provide an inspection system applicable to
increased concerns for the health, safety and protection of
its citizens.
406.01.Definitions. Subdivision 1. For the purpose of this
chapter, the following terms shall mean:
Subd. 2. "Certified Evaluator" means an individual who holds
a current Certified Evaluator Certificate as issued by the
city of Hopkins and has proved competency by having a current
and unexpired certificate of competency as issued by the City
of Minneapolis or the City of St. Paul, and who has a current
insurance certificate in force as required in section 405.08
Subd. 8, and has paid the fee set forth in chapter X.
Subd. 3. "Dwelling unit" means a single family,
private, independent living space or quarters consisting of at
least facilities for bathing, food preparation and
consumption, sleeping and other related purposes.
Subd. 4. "Family" means an individual or two (2)
persons related by blood, marriage, adoption, or
care,or a group of not more than four persons not so
maintaining a common household and using common
sanitary and sanitary facilities.
or more
foster
related
cooking
Subd. 5. "Owner" or "person" means a person who owns
occupies or operates by deed or other instrument of
conveyance any premises; the term includes a person employed
for the purpose of selling or otherwise conveying or managing
such premises, including a guardian, administrator, executor,
trustee or other agency acting for the owner; the term
includes a person or committee supervising, policing or
maintaining any cooperative or other common building area,
dwelling units, or any condominium unit owners association.
Subd. 6. "Purchase agreement" means an agreement deed,
contract for deed or any other instrument of transfer or
conveyance of residential or commercial premises; the term
does not include the transfer of a document made solely for
perfecting title.
Subd. 7. "Time of Sale". The time when a written purchase
agreement is executed by the buyer, or, in the absence of a
purchase agreement, prior to the execution of any document
providing for the conveyance of a single, two-family, three,
or four family dwelling.
8. "Truth-in-Housing Disclosure Report". The written and
signed evaluation by a certified evaluator, made on a form
described in Section 405.07 Subd. 7, representing to the actual
buyer of the dwelling evaluated that said person has utilized
the care and diligence reasonable and ordinary for one meeting
the code of ethics and procedural guidelines for evaluators as
established by the city, and has found no instances of
non-compliance with the items contained on said form as of the
date thereon except as specifically designated thereon.
Subd.9.
signed
on a
406.02
"Truth-in-Housing Zoning Report". The written and
zoning evaluation by the City Zoning Administrator made
form containing the zoning information required in Section
Subd. 7.
Subd. 10. "Residential premises" means any buildings and any
ancillary structures in connection therewith intended or used
for residential purposes including single or two family
dwellings, condominiums, multiple residential dwellings,
cooperative residential units.
Subd. 11. "Single or Two Family dwelling" means any building
containing one or two dwelling units, regardless of whether they
are owner or Non-owner occupied.
406.02.Truth in housing disclosure. Subd. 1. Required. No owner
or agent of the owner shall sell by conveyance or contract for
conveyance a single family, two-family, three or four family
dwelling, including condominiums and townhouses, within the city
without providing to the buyer, prior to the time of sale, a
truth in housing zoning report and a Truth-in-Housing Disclosure
Report as described in Section 406.02 Subd. 9 relating to said
dwelling or premises, issued within one (1) year preceding the
time of sale.
Subd. 2. Owner disclosure. The Truth-in-Housing Disclosure
Report, shall contain a statement signed by the owner as to any
damage to the dwelling or its contents by flooding, or sewer
backup due to flooding, and also any evidence of chronic water
seepage of which the owner has experience or knowledge. The Truth
in Housing Disclosure Report is not deemed valid without the
aforementioned signed statement. Further, no owner or agent of
the owner shall sell such dwelling without providing to the
buyer a statement of the nature, extent and cause of any water
seepage or flooding of any portion of the property within the
knowledge of the owner.
Subd. 3. No certified evaluator shall allow said certification
to be used by another person. No person shall fill out a
Truth-in-Housing Disclosure Report on the form prescribed in
Section 406.02 Subd. 7 of this chapter to be used as a
disclosure document as set out in Section 406.02 Subd. 1 without
first obtaining and maintaining a Certified Evaluator
Certificate from the city as provided for in this chapter.
Subd.
report
sale.
4. Resale of dwellings. A new truth in housing disolosure
shall be required for each ohange of ownership or time of
Subd. 5. Availability of Documents. No person lioensed by the
State of Minnesota to sell real estate shall offer for sale by
exhibiting or showing anyone, two, three or four-family
dwelling, oondominium or townhouse, within the City without
first having obtained the documents as set out in Section 406.02
Subd. 1. The report as set out in Section 406.02 Subd. 1, shall
be made available for inspection at the premises for whioh they
pertain at all times that suoh dwelling is being offered for
sale.
Subd. 6. Exemptions. The provisions of the Chapter shall not
apply to the sale or conveyanoe of any single, or two-family,
three-family, or four-family dwelling to a publio body nor to
any newly construoted dwelling when title is transferred to the
first owner.
Subd. 7. Forms. The oity shall prepare or authorize the use of
form or forms as it may deem appropriate to constitute a
disolosure under section 406.02. The form shall provide
information ooncerning code requirements applicable to existing
single, two-family, three family, four-family dwellings,
condominiums and townhouses which, when not complied with,
constitute a major structural defect or an immediate danger to
the health and safety of the occupant. The information provided
shall indicate whether the oondition meets City requirements, is
below City requirements, or is deemed to be hazardous at the
time and date of the evaluation. In making the evaluation, it
shall be assumed that any concealed faoilities and installations
that are not viewed are adequate, based on the functional
operations of the facilities and installations and the oondition
of the equipment that is viewed. No warranty is expressed or
implied.In oompleting the form, the evaluator shall be governed
by and follow the code of ethios and guidelines of procedure for
evaluators as amended from time to time by the city Council. The
form shall also inolude the signed statement by the owner or
agent of the owner as to whether or not there are housing orders
pending regarding the property issued by the Department of
Inspections, City of Hopkins. The form shall also include a
determination whether the present occupancy is conforming or
nonconforming, and shall also show the present zoning of the
dwelling. If nonconforming occupancy is claimed, suoh
nonconforming use shall be verified by the City Zoning
Administrator in writing. The form shall also require disclosure
by the owner of the dwelling's homestead classification in
regard to real estate taxes payable. The owner shall provide a
copy of such written verification to the buyer prior to the
closing or finalization of transfer of ownership or the buyer's
signing of any contract for deed. Nothing in said report shall
indicate, or shall be deemed to indicate, that said dwelling
meets all minimum housing standards.
Subd. 8. Certified Evaluator Certificate. No Certified Evaluator
Certificate shall be issued or renewed by the City of Hopkins
without application on the approved form and proof that the
applicant has a current unexpired certificate of competency as
issued by the City of Minneapolis or the City of St. Paul.The
applicant shall also show proof of general liability insurance
insuring the applicant with a minimum limit of liability of two
hundred fifty thousand dollars ($250,000) general aggregate and
per occurrence and errors and omissions insurance with a minimum
limit of liability of two hundred fifty thousand dollars
($250,000) which may include a deductible not exceeding five
thousand dollars ($5,000) and the evaluator shall maintain
insurance continuously in force thereafter and no Certification
of evaluator shall be deemed to be in effect when such insurance
is not in effect. The city shall be included as a named insured
on the insurance required herein at the expense of the
evaluator. The evaluator shall furnish the city with a
certificate of insurance which meets the city requirements. The
applicant shall also pay the fee as set forth in chapter 10.
Subd. 9. Fees for certificates and renewals. The holder of a
Certificate of Competency and proof of insurance as set forth in
this chapter shall, upon payment of a renewal fee as set in
chapter X annually, have said certificate renewed for the
ensuing year. A holder of a certificate shall not allow said
certificate to be used by another person.
Subd. 10. City employees not to be certified. No employee of
the City shall be certified under this Chapter.
Subd 11. Residency or mailing requirements. Any person
certified under this Chapter shall cause to keep registered with
the city, his current residency, or mailing address and
telephone number.
Subd.12. Report filing and filing fees. Each Truth-in-Housing
Evaluator shall submit to the city housing inspector an exact
duplicate or copy of each Truth-in-Housing Disclosure Report
within ten (10) days after the evaluation inspection has been
made. The exact duplicate or copy required by this section shall
be of the final report, either type written or legibly printed
in ink, as furnished to the seller. A filing fee of as set in
chapter X, shall be required with each evaluation report so
submitted to the inspector.
When said Truth-in-Housing Disclosure Report is not filed, or
the required filing fee therefore is not paid, within the ten
(10) daytime limit set forth in this section, then the fee for
such filing of the required report shall be doubled. Further,
failure to comply with the provisions of this section within the
aforesaid time limitations may be just cause for the to revoke
the Certification of the evaluator.
Subd. 13.
following
identified
Disclosure
Mandatory correction of hazardous items. The
Items when discovered by the evaluator shall be
as Hazardous and listed in the Truth in Housing
report.
1 . Gas
appliance
piping remaining after the disconnection
that has not been properly plugged or capped.
of
an
2. Water heaters and furnaces in a tight, confined space that
are not provided with proper combustion air by an opening or
openings in the enclosure. The open area of the combustion air
intake shall not be any less than the area of the common flue or
flues of the appliances within the enclosure. in the walls or
doors equal to 1/2 square inch for each 1,000 BTU per hour of
input. If not the evaluator shall mark it as hazardous.
3. Water heaters and hot water boilers without an operable
pressure or temperature relief valve, or where the drain
piping for this valve is either undersized, or not extended to
within 18" of the floor."
4. Gas fired appliances, water heaters, and furnaces not
provided with a draft hood (diverter) or which are exhibiting
back spillage of products of combustion at the draft hood.
5 . Any free standing
bathrooms which take
which they are located.
space heaters located in bedrooms or
their combustion air from the room in
6. Any heating
equipment that
safety controls.
plant
has
,water heater or other fuel burning
missing or visually defective required
7. A
holes,
vent system for any fuel burning appliance that has rust
or open joints.
8. A vent system or fuel burning appliance that visually does
not have sufficient clearance to combustibles such that in the
opinion of the evaluator an imminent fire hazard exists.
9. Ungrounded metal electrical fixtures located within reach of
persons while such person is in contact with grounded plumbing
fixtures.
10. Any room being used as a bedroom that does not have an
approved emergency egress door or window.
11. Any other condition where in the opinion of the evaluator a
distint imminant life threatning hazard to the occupants of the
structure exists.
Items marked as hazardous by the certified evaluator shall be
corrected promptly by the owner. The owner shall obtain all
necessary permits from the city building inspector and the
premises shall be subject to inspection prior to sale and
occupancy of the dwelling. The buyer, designated in a Purchase
Agreement, may elect to make the corrections necessitated by the
report of the evaluator. Such corrections may be undertaken by
a buyer only upon the written consent of the City Housing
Inspector and subject to such terms and conditions as may be
required by the Inspection Department.
Such terms shall include but are not limited to a signed
agreement on behalf of the City from the buyer accepting the
responsibility of correction of the hazardous items, reasonable
completion dates acceptable to the Inspection Department and
financial evidence of ability to preform the corrections, but in
either event, the property shall remain unoccupied until such
violations are corrected and an inspection conducted by the
housing inspector.
406.03 Certificates: reports: truth in housing reports and
filings. Reports, certificates, and filings shall be kept in the
office of the housing inspector. A copy may be furnished to the
owner or other authorized person upon request.
406.04. Appeals. A person aggrieved by a truth in housing
disclosure report may appeal from the action of the evaluator or
inspector to an appeals board, appointed by the council and
consisting of three members of the city council. The decision and
order of the appeals board shall be binding on all parties.
406.05. Penalties. A person who violates any of the terms of
this code or who fails to comply with any order issued by the
housing inspector pursuant to this code is guilty of a
misdemeanor. Each day the owner fails to comply with any such
order shall constitute a separate offense. The inspector may
post the premises by appropriate signs on notices prohibiting
occupancy and may, by appropriate action, cause the premises to
be and remain vacant until such code violations are remedied and
an approval certificate is issued.
406.06. Warranty Disclaimer on behalf of the city. By enacting
and undertaking to enforce this section, neither the City nor
its council, agents or employees warrant or guarantee the
safety, fitness or suitability of any dwelling in the city, and
any representation to the contrary by any person is a
misdemeanor. Purchasers or occupants should take whatever steps
they deem appropriate to protect their interests, health, safety
and welfare prior to purchase or occupancy of the dwelling.
The effective date for compliance of this Ordinance shall
be August 1, 1992.
Adopted this
day of
, 1992
, 1992
Approved this
day of
Mayor
Attest:
City Clerk