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Rental Licensing and Inspection Program UpdateMemorandum To: Mayor Eugene J. Maxwell and City Council Members From: Christopher P. Kearney, Building Official Date: June 11, 2013 Re: Rental Licensing and Inspection Program Update Rental Licensing and Inspection Program Update Inspection staff did it. Every licensed rental property in the City of Hopkins has been inspected at least once. It took just under five years to get into every licensed rental property. Inspection staff has worked diligently to reach this goal. This meets the purpose of the program which is to assure rental housing in the City of Hopkins is decent, safe, sanitary and maintained as not to become a nuisance or blight. New Housing Inspector Susan Zasada was hired in September 2012 as a Rental Housing Inspector and has played a vital role in the department. She brings an excellent work ethic and professionalism to the department. One of Susan's first tasks was to go through the data base and make a list of the rental properties that we had not inspected since we started the revamped program in 2008. Along with routine rental inspections, she also handles all the pre -rental inspection of properties getting licensed for the first time. Inspector Laptop Field Computers Since the last update the Housing Inspectors have stepped into the technology age. Inspectors now use Toughbooks computers in the field to record inspection results. They are able to generate an inspection report in the field, have the property owner or manger sign it on the laptop screen and email it to the owner when they get back to the office. This paperless application has made the entire routine rental process more efficient. Category Findings After the inspection process, properties are scored and put in a category of A, B or C. Category A properties are inspected on a 3 year cycle, Category B on a 2 year cycle and Category C every year. In the chart below you will find the type and number of dwellings inspected, and the percentage of each category properties fell into since the last update. As you can see in the chart below, the number of units inspected has increased substantially since the first full year of the new inspection program in 2009. 2011 Rental Inspections Dweling Type # Inspected Category A Category B Category C Single Family 57 19% 39% 42% Duplex 100 33% 27% 40% Triplex/Fourplex 6 17% 33% 50% Condo 181 51% 31% 18% Townhome 46 35% 18% 47% Apartment 322 81% 16% 3% Total Units Inspected 826 2012 Rental Inspections Dweling Tvae # Inspected Category A Category B Category C Single Family 44 32% 32% 36% Duplex 85 23% 33% 44% Triplex 2 100% 0% 0% Condo 177 50% 21% 29% Townhome 58 62% 24% 14% Apartment 352 80% 19% 1% Total Units Inspected 807 2009 Rental Inspections Dweling Type # Inspected Category A Category B Category C Single Family 48 38% 42% 20% Duplex 68 25% 54% 21% Condo 52 71% 19% 10% Townhome 31 29% 45% 26% Triplex 4 0% 25% 75% Fourplex 2 0% 0% 100% Apartment 186 46% 52% 2% Total Units Inspected 473 Revenue vs. Expenditures The Rental Licensing and Inspection Program is now generating enough revenue to offset expenditures. In 2012 revenue exceeded expenditures by $6,700. Numbers so far in 2013 show we will have about the same results as 2012. Answers to Questions Raised by the City Council at the Work Session with the Hennepin County Assessors. Some questions came up at a work session with the Hennepin County Assessor regarding building improvement projects in the high rental area in South West Hopkins. Listed below are building improvement projects Since 2007 in the area in question. Peace Valley Townhomes • All new siding • All new windows and doors Meadow Creek Condominiums • All new roofs • All new exterior doors in the common laundry room areas of each building • Replacement of some front doors and some boilers • Upgrade of exterior lighting Westbrooke Patio Homes • Many new patio doors, windows, water heaters, and HVAC units • Building permit application is in for new outdoor swimming pool and pool house Westbrooke North • All new roofs Westbrooke West • Garage roofs and repairs made Park Valley Condominiums • All new siding, soffit and fascia Another question that came up at the work Session with the Hennepin County assessor was, is the number of rental properties increasing? The answer to that question is in the chart below. Rental #'s Type of Rental 2006 2013 Single Family & Condo 696 716 Townhouse Units 108 163 Duplex 146 199 Apartment Units 4181 4209 Total 5131 5287 Possible Rental Ordinance Additions 1. "In all cases where the owners of a rental dwelling lives outside a 50 -mile radius of the rental dwelling, the owner must name an operator living within the 50 -mile radius of the rental dwelling" Having a local manger will make it easier for scheduling, getting the routine rental inspection completed and the property in compliance. A local manger also gives the tenant a contact to call when issues arise. 2. "Licensee shall provide proof of criminal background checks on tenants within seven days of request by Building Official" At this time, we ask the property owner to check a box on the license application stating that they have done criminal background checks on tenants. Staff feels this additional language will actually let us see proof of the background checks being done when requested. 3. "Licensee shall post current rental license on premises in the immediate area of front entry" Staff feels this addition would benefit Police and other City employees as they enter a rental property they will know immediately it rental and it has a current license. Staff believes the program is working. Life safety and health issues such as illegal bedrooms in basements, missing fire separation walls between garage and dwelling units, unsanitary conditions, lack of smoke detectors and C.O. alarms, as well as other life safety issues are being corrected.