Memo 2nd Reading - Truth In Housing
CITY OF HOPKINS
MEMORANDUM
DATE:
February 26, 1992
FROM:
Hanorable M~~~nd City Council
Tom HarmeninJ, Community Development Director
TO:
SUBJECT:
SECOND READING - TRUTH IN HOUSING ORDINANCE
On 2/18/92 the City Council appraved the first reading af the
Truth in Housing Ordinance. Questians were raised as a part of
appraving the first reading which staff was asked to examine
further priar to the approval af the second reading of the
Ordinance. These questions were as follows:
A. A question was raised regarding the confidentiality of
a Truth in Housing Report and who might be eligible to
receive a copy of such a report.
B. A question was raised regarding whether Sectian 406.02
Subdivision 13 was sufficient regarding outlining all
of those items which the City may cansider hazardous.
Staff has discussed these questions with the City Attorney.
Attached is a memorandum from Jerre Miller, City Attorney which
camments on the questians raised. Mr. Miller is recommending
that no changes be made to the ordinance, with the exception of
same minor typographical carrections.
Staff recommends adoption of the Second Reading of the Truth in
Housing Ordinance.
T/TH02262A
HOUSING
Through the Comprehensive Housing Affordability Strategy (CRAS) of the
Hennepin Housing Consortium~Urban Hennepin County has set out strategies and
priorities for the use of available public and private resources to meet the
housing needs of low and moderate in~ome persons, particularly those with
special needs. The Urban Hennepin County CDBG program is one of these
resources and consistent with the CRAS is intended for use in achieving the
following objectives:
Encourage multi-community cooperation in housing development and rehab-
ilitation programs.
Support the development of new owner/renter housing affordable to low and
moderate income households.
..
Support the rehabilitation of existing rental units and single-family
dwellings.
Support the development of transitional housing facilities for persons
who are homeless or at risk of becoming homeless.
NEIGHBORHOOD REVITALIZATION
As an intergovernmental effort, Urban Hennepin County includes a broad range
of communities and neighborhoods, some of which, due to the age of their
structures, are in need of assistance for infrastructure rehabilitationj
installation.-
/
Maintain and preserve viable neighborhoods and neighborhood commercial
service centers through concentrated community development activities.
PUBLIC FACILITIES AND IMPROVEMENTS
The provision and improvement of public facilities represents a significant
cost to the community and the individual user (particularly those of low and
moderate income).
Imprave existing and assist in the development of new public facilities
which benefit low and moderate income persons. Included in this objec-
tive are those public andjor nonprofit facilities designed for providing
shelter for persons with special needs.
ECONOMIC DEVELOPMENT
Within the context of the Community Development Block Grant Program economic
development must relate to the creation or retention of long-term employment
opportunities for low and moderate income individuals.
Provide financial assistance to for-profit or non-profit business
operations which will provide or retain permanent employment oppor-
tunities for low and moderate income persons, at a ratio of at least one
full-time job created or retained for each $10,000 of program funds used.
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.
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8. "Truth-in-Housing Disclosure Report". The written and
signed evaluation by a certified evaluator, made on a form
described in Section 406.02(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. 1l. "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. l. 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 as described in Section 406.01(9)
and a Truth-in-Housing Disclosure Report as described in Section
406.01(8) 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.
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Subd.
report
sale.
4. Resale of dwellings. A new truth in housing disclosure
shall be required for each change of ownership or time of
Subd. 5. Availability of Documents. No person licensed by the
State of Minnesota to sell real estate shall offer for sale by
exhibiting or showing anyone, two, three or four-family
dwelling, condominium 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 which they
pertain at all times that such dwelling is being offered for
sale.
Subd. 6. Exemptions. The prov1s1ons of the Chapter shall not
apply to the sale or conveyance of any single, or two-family,
three-family, or four-family dwelling to a public body nor to
any newly constructed dwelling when title is transferred to the
first owner.
Subd. 7. Forms. The city shall prepare or authorize the use of
form or forms as it may deem appropriate to constitute a
disclosure under section 406.02. The form shall provide
information concerning 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 condition 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 facilities and installations
that are not viewed are adequate, based on the functional
operations of the facilities and installations and the condition
of the equipment that is viewed. No warranty is expressed or
implied.In completing the form, the evaluator shall be governed
by and follow the code of ethics and guidelines of procedure for
evaluators as amended from time to time by the city Council. The
form shall also include 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, such
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.
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Subd. B. 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
Items when discovered
as Hazardous and
report.
of hazardous items. The
by the evaluator shall be
listed in the Truth in Housing
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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. L" '.~' . '"
r
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
missing
heater or other fuel burning
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.
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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
filings.
office
owner or
Certificates: reports: truth in housing reports
Reports, certificates, and filings shall be kept in
of the housing inspector. A copy may be furnished to
other authorized person upon request.
and
the
the
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
Approved this
day of
, 1992
, 1992
Mayor
Attest:
City Clerk
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