Proposed Ordinance Establishing Housing, Property Maintenance and Rental Code Sept 30, 2014 City of...

Proposed OrdinanceEstablishing

Housing, Property Maintenance

and Rental Code

Sept 30, 2014 City of Virginia

Buildings and Grounds CommitteeLittlewolf, Sipola, Baranzelli

Overview

1. Research and Process

2. Public Health and Safety

3. Rental Registry & Responsible Parties

4. Expected Outcomes

5. Proposal Details

6. Next Steps

Research and Process

• Building and Grounds Committee, first discussion on “rental code/ordinance” in 2011

• Starting in 2013, the committee actively identified issues, gathered information, and enlisted outside expertise to discuss the possibility of rental code to meet Virginia’s unique needs

Research and Process cont.

• Input and Testimony (Organizations) :– Duluth Community Police officer: Rental Code and

Crime-free Housing Education Program– Duluth Life Safety Division, City of Duluth Fire

Department, Rental Property Inspector– City of Brooklyn Park Rental Property Inspector– Virginia Housing & Redevelopment Authority– Eveleth Chief of Police– Legal Aid of Northeastern MN– Advocates for Family Peace


Input and testimony (City of Virginia):– Finance Director– Chief of Police– Fire Chief and EMS– City Attorney– City Engineer– City Administrator– Public Works– Blight Officer


• Input and Testimony (Community)– Community members– Landlords – Tenants– Including three facilitated community dialogues


• Documents:– Online crime mapping and statistics– Code Information from Oakdale, Bloomington,

Orano, Brooklyn Park, Duluth– Essentia-Virginia Hospital reports– Crime-free Housing Manual– International Property Maintenance Code


Lack of residential property maintenance:

a) Fosters blight and neighborhood deteriorationb) Creates a disincentive for neighborhood

reinvestmentc) Attracts unseemly behaviord) Property values fall e) Increase in neighborhood crime f) Neighborhoods adversely change


City of Virginia receives complaints:

Some private residential units are unsafe, unsanitary, and substandard to live.

Some rental units are substandard, unsafe, and unsanitary in Virginia, including from “inspected” properties.

Both non-rental and rental residential properties contribute to the problem

Non-rental examplePrivate owners, contract for deed, owner address unknown

owing $514 in blight fees

Rental Examples

Example 1: Single Family home gutted for remodel, wood stove, rented to 14 people, 10 children under 12.

Example 2: Apartment building fire, main floor closet under stairwell being used as a bedroom, smoke detectors not being used properly, police could not evacuate second floor due to smoke, high potential for multiple fatalities

Rental Example cont.

Example 3: Fire in a Duplex that had power disconnected, renters still occupying apartments burning candles for light and heat (fire origin under investigation). Structure termed “substandard housing” by Fire Chief. Ownership of building or responsible party unknown after fire, in foreclosure.

Research and Process cont.The City of Virginia does not have a residential property inspector

The City does have a contracted commercial inspector who will inspect residential for “condemnation” purposes.

There is no “minimum requirement” for residential property maintenance or rental


Rental units comprises 43% of all residential housing stock in Virginia

Average rents $500-700/ month= $10-15 million industry in Virginia

Police/Fire/Ambulance/Blight Depts. do not know who owns the rental property overall

Inclusive Residential Policy:

The Housing and Property Maintenance portion of the proposed code will affect all residential buildings in Virginia.

The Rental Code portion will affect all residential rental units available to the public for rental purposes by tenants, except:– rental units let to tenants who are directly related

to the owner – Suites and sleeping rooms let for short periods of

time, such as hotels, motels

Public Health and Safety

Tenants and neighbors should experience crime free and safe enjoyment of their homes and neighborhoods

Public Health and Safety cont.

Fire and EMS

• Rental vs. Owner-occupied Residences (Jan. 1- Aug. 30, 2014)

– 49 Fire Department calls – 9 to owner occupied residential property– 40 to residential rental property• 85% of Fire Department calls go to 43% of the

total housing stock (which is rental).


Police Services–75-80% of police calls to residential

property are to rental units• Virginia “scored” high crime in online searches,

has over 12,000 police calls per year, and more crime than any northern MN community• Multiple repeat calls to the same rental address

City-Data.com

www.bestplaces.net

59 crime records Virginia Aug 7-14crimemap.com

300 Crimes Records Duluth Aug 7-14crimemap.com


• Virginia population 8,700• Duluth population 87,000• 59 crimes reported in Virginia, 300 crimes

reported in Duluth• Duluth is ten times bigger than Virginia, yet

Virginia has double the crime records reported “per capita” compared with the same time period in Duluth(projected 590 vs. 300)

Southside VirginiaNote Crime density east of 6th avenue Jan 1-Aug 30, 2014 www.crimemap.com

Northside VirginiaNote Crime density east of 9th Ave. N Jan 1-Aug 30, 2014 www.crimemap.com


Virginia business owners, neighbors and residents

express fear for their safety in some high density rental areas.


Medical personnel are overwhelmed at the ER– The ER is seeing 13,572 patients per year

(up 8% 2014)– The ER maximum design capacity is 35 per day• current average: 38 per day

– Longer wait times result in delayed care and patients leaving without being seen

Public Health & Safety cont.

Visits to the Emergency Room Snapshot

• East of 6th Ave (excludes high rises and large apt buildings)– 47 addresses with 5-9 per yr.– 16 addresses with 10-19 per yr.– 10 addresses with 20-29 per yr.73 addresses account for 675-1017 ER Visits per yr.

• East of 9th Ave N– 20 addresses with 5-9 per yr.– 6 addresses with 10-19 per yr.26 addresses account for 160-304 ER Visits per yr.

• West of 6th and 9th Ave N 23 addresses 5-9 /yr.

Public Health & Safety cont.

Visit to the ER in one year

• 99 addresses in the “Rental Cores” account for 835-1321out of 13,572 Emergency Room visits per year. (East of 9th Ave N and East of 6th Ave)

• These two high density rental areas in Virginia account for 7-11% of all Essentia-Virginia Emergency Room visits per year from an service area of 500 square miles, including all other NE MN cities combined.

• 81% of Excess Emergency Room Visits city-wide • The ER is operating at 108% capacity (on average)

Rental Registry & Responsible Party

The City does not track rental property, nor does it know where it exists, or who is responsible for it

Determining a responsible party for a rental prop is time and labor intensive

Rental Registry & Responsible Party cont.

When a rental property is identified through the assessors office, often the owner lives more than 25 miles away– 50% of Virginia Rental Units are absentee owned

(>25 mi)– 50% are local or within 25 miles– 42 cities from Andover to Woodbury – 27 states from Bluffton, SC to Woodland Park, CO


It is estimated by HRA/AEOA there are 1,800 occupied rental units in Virginia – 701 units are “subsidized” by a third party and are

inspected at varying frequencies, by varying agencies, using varying criteria, and only if the units is receiving a subsidy, as these units go in and out of programs regularly

– 1116 may not be subject to inspections (61%)– This total comprises 739 buildings. There may be

more than one building on a parcel


Many rental properties are unknown to the assessor and simply classified as “non homestead parcels”.

– Assessor can only identify 1609 parcels as rental– From Tax records of known rental properties (small)

• 186 single family units per parcel• 162 two family units• 47 three family units• 23 four family units

418 locations of 743 “small” rental units (46%)– From Tax records of known rental properties (large)

42 locations of 5-156 family units per parcel 42 locations = 866 “large” rental units (54%)


Professional landlords are often aware of regulations, state law, and Federal law concerning rights of tenants and responsibilities of landlords

Amateur Landlords often have no formal landlord training (“learn as they go”)

There is no uniform “venue” to keep all landlords current on new rules:

• Violence Against Women Reauthorization Act of 2013• MN Stat. 504B amended 2013


Landlord Concerns Identified– Do not routinely inspect their properties or know rights

regarding ability to inspect– Are unfamiliar with background checks, rights of tenants

or responsibilities of landlords – Are unfamiliar with applicable city codes affecting

operation and maintenance as well as disorderly behavior occurring in their units.

– Can become helpless when trouble starts

Rental Registry & Responsible Party cont. • Landlord Concerns Identified Cont.

– Can get taken advantage of by savvy tenants– Tend to be reactive and not proactive, often too

late to affect positive change– Lack knowledge of landlord support services – Property damage or other significant adverse

outcomes can force some to “get out of the business”


Absentee landlords often have no local responsible party to oversee their property or respond in a timely manner to tenant complaints or behavior issues identified by Police or Emergency personnel – If they do, it is not known to Emergency Personnel

or Code officials

Expected Outcomes1. Reduction in blight, level of unkempt, poorly

maintained residential properties and further deterioration.

2. Improved safety of tenants, neighbors, neighborhoods, and citizens

3. Reduced Police and Emergency calls for disorderly behavior to rental property– Crime decreased 56% in Duluth identified

neighborhoods

Expected Outcomes cont.

4. Improve the average “quality” of renters• Required “pre-rental” background checks • Published “rules of conduct” to continue rental

occupancy anywhere in Virginia

5. Level the landlord playing field to create a healthy rental environment

6. Discourage landlords from deliberately providing substandard rental housing at below market rates to maximize profit

Expected Outcome cont.

7. Increase the level of responsibility a landlord has to their property and its use by tenants

8. Improve absentee landlords response to complaints, problems, tenant or neighbor concerns

9. Improve the average quality of available rental housing stock in the city


10. Provide assistance to landlords in dealing with troublesome tenants, setting minimum acceptable behavior limits, enforcing those limits uniformly across the city

11. Offer landlord training to assist them in limiting crime, operating their property more profitably, understand and comply with City Code, State and Federal rules and laws affecting this industry, and tenant and landlord legal rights and responsibility's


12. Landlords and tenants will share responsibility for the conduct of the rental property

13. Generally: “improve the public health, safety and welfare of all citizens in Virginia to enjoy the normal activities of life in surroundings that are safe, secure, sanitary and free from criminal activity and nuisances.”

If we do nothing….

More rental housing More calls and more crime

More Police officers More Firefighter/Paramedics

More Taxes!(Est 4% increase in property taxes to add 1 Police Officer)

Proposal Details

AN ORDINANCE CREATING SECTION 10.39, CHAPTER 10,

TO ESTABLISH A HOUSING, PROPERTY MAINTENANCE AND RENTAL CODE

The Code has 4 sections:– 1. General– 2. Rental Licensing– 3. Emergency Remedies in Residential Rental

Property– 4. Crime Free Housing Program

Proposal DetailsSection 1 General

“It is the purpose of this Ordinance to ensure that all residential units in the city are decent, safe, sanitary and operated and maintained in a manner that avoids the creation of a nuisance to the neighborhood, an influence that fosters blight and deterioration, or creates a disincentive for neighborhood reinvestment.”

Proposal Details Section 1 General cont.

“The council finds that providing for the public health, safety and welfare of its citizens occupying rental units requires a program that not only corrects substandard housing conditions and enforces a minimum habitability standard for rental units, but that also provides for the quiet enjoyment of the normal activities of life for occupants of rental properties, and for the neighborhoods in which such rental properties are located.”

Proposal Details Section 1 General cont.• Adopts the 2012 International Property

Maintenance Code • Applies to dwellings, rental units, residential

buildings and premises located in the city– Except short term such as hotels/motels

• Allows for inspections with notice, during reasonable hours, requires owner to give access, requires occupant to give access for repairs

Proposal Details Section 1 General cont.

• Provides for notice of violations• Reasonable timeframe & correction deadline• Allows Building Official emergency action• Provides for appeals by aggrieved property

owner to the Building Appeal Board, then the City Council

Proposal DetailsSection 2 Rental Licensing

• Definitions: – Dwelling– Multiple Residential Building– Rental Unit – Tenant

• License Required for all residential rental units • License must be visibly posted in unit

Proposal DetailsSection 2 Rental Licensing

• License application, procedure, type– Requires inspection by Building Official/designee– Renewal considered same as new application– Requires responsible contact person within 25 miles– Creates Short Term Rental License (12 months)

• Professional, • educational, • medical,• military call up

Proposal DetailsSection 2 Rental Licensing cont.

• Provides for fees to be set by the council–Not prorated, not transferable, no

refund• License term shall be 3 years: same rate

per unit for multi-unit as single unit rental property


• Sets License Conditions– Cannot be transferred to another unit– Notice required at principal entrance identifies

name, email, and phone number of Landlord/Responsible Party

– Provides for transfer of license, if property sold– Requires offered “off street” parking be clear of

snow


• Describes Inspection procedure– Provides for inspections at reasonable times– Provides for notice of violations

• Establishes reasonable time for repair• Provides for repairs not made and property not vacated

• Defines violations as a public nuisance– Unlicensed rental occupancy– Refuse entry to inspector– Fail to comply with order of code official– Advertising for rental of an unlicensed unit


• Provides for enforcement– Administrative citation– Other civil action• Declaratory judgment• Restraining order• Permanent injunction

– Revocation of license and order for vacation– Misdemeanor

Proposal DetailsSection 2 Rental Licensing cont.• Proposed Rental License Fee: $4 per month per unit,

or $150 for a 3 year license per unit

• Rental License Fee covers City administrative costs, including landlord training, initial (or renewal) inspection, and one follow-up re-inspection

• Additional administrative fees for second or third re-inspections, license transfer, failure to appear for re-inspection, inspection resulting from citizen/occupant complaint, reinstating a revoked license would apply, as applicable

Proposal Details Section 3 Emergency Remedies in Residential Rental Property

• Provides tenants an effective remedy against loss of heat, water, electricity, gas, security or basic fire and life safety including operable dead bolt locks and smoke detectors

• Investments must be made in substandard housing to insure a “minimum habitability standard”

• If landlord fails to repair or correct in timely manner, building official can authorize tenant to make repairs or corrections and deduct from rent

Proposal Details Section 4 Crime Free Housing Program

• Statement of Program Purpose“Property owners and managers are responsible for taking such reasonable steps as are necessary to ensure that the citizens of the city who occupy rental units may pursue the quiet enjoyment of the normal activities of life in surroundings that are safe, secure, sanitary and free from criminal activity and nuisances.”

Proposal Details Section 4 Crime Free Housing Program cont.

• Definitions– Disorderly behavior described

1. A nuisance event as described in City Code Sec 10.372. A violation of City Code, State or Federal law: firearms3. Illegal drug related activity, including synthetics4. Any violation of City Code Ch 10

a) Refuse, Animals licensing, Disorderly behavior, Abandon motor vehicle, Public nuisances, Overuse of police services

5. Act that jeopardizes health, safety, or welfare of landlord or guest of tenant


• Definitions Cont.

6. Act prohibited by smoking policy of premises7. Exceptions- emergency call as defined in the

Domestic Abuse Act or Violence against Woman Acts

– Guest of a tenant define– Licensed premise defined– Tenant defined– Smoking policy disclosure defined


• Requires “Crime Free Housing” and “smoking policy” disclosures in all new rental agreements with some exceptions

• Describes Landlord duties and required rental agreement terms in leases– Tenant is responsible that all tenants and guests do

not engage in disorderly behavior– Requires landlord to commence unlawful detainer or

other eviction proceedings after 3 disorderly behavior instances within 12 months


• Requires landlord to provide written notice of the definition of “disorderly behavior” to tenant prior to new rental term commencement, and retain written acknowledgment signed by lessee(s) acknowledging receipt

• Prior to any new tenant rental, cause a criminal background check on all prospective adult tenants

Proposal Details Section 4 Crime Free Housing Program cont.• Provides for the Revocation, Suspension,

Declination or Denial of a license and gives Authority1. License procured by misrepresentation2. Misstatements accompanying application3. Applicant failed to comply with conditions set

forth in any other rental license4. Activities of applicant create or have created danger

to the public5. Rental unit contains conditions that might endanger

the public


• Revocation, Suspension, Declination Cont.6. Failure to pay application, penalty, or reinstatement

fees7. Failure to correct violations of the code in the time

specified8. Failure to commence unlawful detainer or evictions

proceedings following a third instance of disorderly behavior, with one exception

9. Violation of any regulation or law applicable to the license

10. Failure to continuously comply with any condition required for approval, or maintenance of the license


• Disorderly Behavior Notice and Procedure–1st instance of Disorderly Behavior notice is sent to

responsible party and tenant directing steps be taken to prevent more

–2nd instance (in 12 mos) same notices are sent, requires Landlord written report of actions taken since first notice and plan to prevent further disorderly behavior• Landlord/responsible party required to take “Crime Free Housing”

training at their expense


–3rd instance of disorderly behavior (in 12 months) same notices sent, code official shall revoke, suspend, or reject an application for renewal within 15 days• Some exceptions, including if the code official

determines the landlord has taken appropriate measures which will prevent further instances including a failed eviction process despite diligent pursuit of same


• 2nd and 3rd instances of disorderly behavior shall be those which:– Occur at the same rental unit– Involve guests of the same rental unit– Involve guests of the tenant at the same unit– Involve guests of the same tenant– Involve the same tenant


• Disorderly behavior at a rental unit:–Determined by preponderance of the

evidence–Not necessary for actual criminal charges–Dismissal or acquittal of criminal charges

shall not bar adverse license action


• Code Official shall notify, in writing, licensee of revocation, suspension, denial, or nonrenewal–Notice shall be posted on the rental unit–Notice shall indicate date rental unit be

vacated–Only the Code Official may remove or alter

any posting


• Violations; penalty– Provides for penalty as a misdemeanor with fine

not to exceed $1000, or imprisonment for not more than 90 days, or both according to existing City code Ch. 10, Section 10.37, Subd. 11.

• Enforcement alternatives– Not exclusive, city may take any action authorized

in City code or state law


• Retaliation; waiver prohibited– Landlord shall not bar or limit tenants right to call

for police or emergency assistance– Tenant may not waive their right to call for police

or emergency assistance – Any such waiver contained in a rental agreement

shall be null and void and unenforceable


• Appeal– The act of the code official to revoke, suspend,

deny an application for rental license or deny a renewal is subject to appeal.

Next Steps

Proposed Work Plan:The success of this program will require the support and coordinated efforts of several city staff and departments including: Engineer’s Office, Police Department, Fire Department, Public Works, Public Utilities, City Assessor, City Attorney, City Administrator, Blight Officer and City Council & Mayor

Next Steps: Proposed Work plan

• The City Engineer’s Office– will be designated “Code Official” and will have

authority over the implementation of the code– will accept applications and fees for rental licenses,

including managing the Rental Registry – will receive the certificate of compliance from the

landlord, and issue the rental license– will coordinate city support for the designated

inspector such as fire, police, health, or other responsible parties as needed

– will notify of license expiration in timely manner

Next Steps: Proposed Work plan

• The City Engineer’s Office:– will receive written landlord abatement reports and

mitigation plans– will contact the owner or responsible party of

record regarding issues affecting their property or violations of the code

– may revoke or suspend a current license, deny a new rental license, or decline to renew a rental license unless the landlord provides evidence they have taken appropriate measures to prevent further instances.

Next Steps: Proposed Work Plan

• The City Engineer’s Office – shall receive complaints from citizens, tenants or

other landlords and make preliminary inquires if the complaint is legitimate and requires a formal inspection or action

– will receive disorderly behavior police reports to rental property and communicate each visit to the owner or responsible party of the property


• The City Engineer’s Office will contract for rental inspections from State-licensed and experienced property inspector(s) to determine compliance the 2012 International Property and Maintenance Code (IPMC) criteria for each rental unit and issue a certificate of compliance, or correction orders.


– “The IPMC is a maintenance document intended to establish minimum maintenance standards for exterior, light, ventilation, occupancy limits, heating, sanitation, basic equipment and fire safety.”

– “Responsibility is fixed among owners, operators and occupants for code compliance.”

– “The IPMC provides for the regulation and safe use of existing structures in the interest of the social and economic welfare of the community.”


• The City Attorney will prosecute violations of the code pursuant to City Code CH 10, “Public Nuisances”, as a misdemeanor with a fine not to exceed $1000, or imprisonment for not more than 90 days, or both.


• Appeals of any act of the “Building Official” by an aggrieved party may be made to the “Building Appeal Board” (City Attorney, Engineer (ex officio), Administrator, Assessor and Building and Grounds Committee Chair)

• Appeals of the “Building Appeal Board” decisions can be made to the City Council


Landlord Training will include:– Building Official or designated inspector

• City Rental code and IPMC

– Virginia Police Department• Crime Free Housing Program

– Virginia Public Utilities • Conservation, programs for LL, funding for energy improvements

– Legal Aid of Northeastern Minnesota• Changing legal requirements and current updates• Landlord and tenants right• Leases• Eviction Process

Next Steps: Work PlanNo “General Fund” dollars shall be required; the program is designed to be revenue neutral.

City Staff support and existing technology will be utilized.

Rental License fees will cover inspection costs.

Next Steps: 2015 Proposed Timeline

• Application Process finalized • Create 3 year city-wide “Roll Out” Map- – 1/3 of the city per year by map or ownership– Multiunit owners can get 1/3 prop per year for

budgeting purposes• Landlord training classes scheduled• Affected property owners notified

Next Steps: 2015 Proposed Timeline

• Process Opens and Begins• Inspections conducted, repairs made • 2015 Licenses issued– Initial license required by the end of the year– Required 1/3 of city rental property is licensed – After 3 years all rental units in the city limits will

require licensing, and renewals will start

Next Steps: Process to Finalize

• City Council will review the proposed draft ordinance and final edits

• IPMC reviewed and final edits• Public Hearing on the final draft• First reading at City Council meeting and vote• Second reading at City Council meeting • Publication in paper, effective 15 days later

What we learned:

1. Research and Process

2. Public Health and Safety

3. Rental Registry & Responsible Parties

4. Expected Outcomes

5. Proposal Details

6. Next Steps

Proposed OrdinanceEstablishing

Housing, Property Maintenance

and Rental Code

Sept 30, 2014 City of Virginia

Buildings and Grounds CommitteeLittlewolf, Sipola, Baranzelli

Proposed Ordinance Establishing Housing, Property Maintenance and Rental Code Sept 30, 2014 City of...

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