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1992-705 , . ... ORDINANCE NO. 92-705 AN ORDINANCE REQUIRING INSPECTIONS OF RESIDENTIAL HOUSING UPON SALE OR TRANSFER THE CITY COUNCIL OF THE CITY OF HOPKINS DOES ORDAIN: 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. 406.0l.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 required fee as established by resolution from time to time by the City Council. 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) or more persons related by blood, marriage, adoption, or foster care, or a group of not more than four persons not so related maintaining a common household and using common cooking sanitary and sanitary facilities. 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. -1- \ .. . 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. Subd. 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. "Truth-in-Housing Zoning Report". The written and signed zoning evaluation by the City Zoning Administrator made on a form containing the zoning information required in Section 406.02 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 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. -2- , . ~ Subd. 3. No certified valuator 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. 4. Resale of dwellings. A new truth disclosure report shall be required for each ownership or time of sale. in housing change 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 provisions 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 -3- ~ occupancy is claimed, such nonconforming use shall be verified by the City Zoning Administrator in writing. The form shall also requir 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 an annual fee as established by resolution from time to time by the City Council, 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. certified with the telephone Residency or mailing requirements. Any person under this Chapter shall cause to keep registered city, his current residency, or mailing address and 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 -4- .. . 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 as established by resolution from time to time by the City Council, shall be required with each valuation 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 Items when discovered by as Hazardous and listed report. hazardous items. The the evaluator shall be in the Truth in Housing 1 . Gas appliance piping remaining after the disconnection of an that has not been properly plugged or capped. 2. Water that are opening combustion the common enclosure. heaters and furnaces in a tight, confined space not provided with proper combustion air by an or openings in the enclosure. The open area of the air intake shall not be any less than the area of flue or flues of the appliances within the 3. Water pressure piping to within heaters and hot water or temperature relief for this valve is either 18" of the floor." boilers without an operable valve, or where the drain undersized, or not extended 4. Gas provided exhibiting draft hood. fired appliances, with a draft back spillage water heaters, and furnaces not hood (diverter) or which are of products of combustion at the 5. Any free standing space heaters located in bedrooms or bathrooms which take their combustion air from the room in which they are located. 6. Any heating equipment that safety controls. plant has ,water heater or other fuel burning missing or visually defective required 7. A vent system for any fuel burning appliance that has rust holes, 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. -5- ~ 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 -6- . . .. 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 th 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. First Reading: Second Reading: Date of Publication: February 2, 1992 March 2, 1992 April 29, 1992 Date of Ordinance Takes Attest: