Proposed Ordinance Establishing Housing, Property Maintenance and Rental Code Sept 30, 2014 City of Virginia Buildings and Grounds Committee Littlewolf, 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
Research and Process cont. 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
Research and Process cont. Input and Testimony (Community) Community members Landlords Tenants Including three facilitated community dialogues
Documents: Research and Process cont. 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
Research and Process cont. Lack of residential property maintenance: a) Fosters blight and neighborhood deterioration b) Creates a disincentive for neighborhood reinvestment c) Attracts unseemly behavior d) Property values fall e) Increase in neighborhood crime f) Neighborhoods adversely change
Research and Process cont. 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 example Private 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
Research and Process cont. 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).
Public Health and Safety cont. 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
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www.bestplaces.net
59 crime records Virginia Aug 7-14 crimemap.com
300 Crimes Records Duluth Aug 7-14 crimemap.com
Public Health and Safety cont. 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 Virginia Note Crime density east of 6 th avenue Jan 1-Aug 30, 2014 www.crimemap.com
Northside Virginia Note Crime density east of 9 th Ave. N Jan 1-Aug 30, 2014 www.crimemap.com
Public Health and Safety cont. Virginia business owners, neighbors and residents express fear for their safety in some high density rental areas.
Public Health and Safety cont. 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 6 th 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 9 th 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 6 th and 9 th 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 9 th Ave N and East of 6 th 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
Rental Registry & Responsible Party cont. 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
Rental Registry & Responsible Party cont. 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%)
Rental Registry & Responsible Party cont. 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
Rental Registry & Responsible Party cont. 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
Rental Registry & Responsible Party cont. 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 Outcomes 1. 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
Expected Outcomes cont. 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
Expected Outcomes cont. 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 Details Section 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 Details Section 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 Details Section 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 Details Section 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
Proposal Details Section 2 Rental Licensing cont. 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
Proposal Details Section 2 Rental Licensing cont. 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
Proposal Details Section 2 Rental Licensing cont. Provides for enforcement Administrative citation Other civil action Declaratory judgment Restraining order Permanent injunction Revocation of license and order for vacation Misdemeanor
Proposal Details Section 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 reinspections, license transfer, failure to appear for reinspection, 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 10.37 2. A violation of City Code, State or Federal law: firearms 3. Illegal drug related activity, including synthetics 4. 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
Proposal Details Section 4 Crime Free Housing Program cont. Definitions Cont. 6. Act prohibited by smoking policy of premises 7. 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
Proposal Details Section 4 Crime Free Housing Program cont. 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
Proposal Details Section 4 Crime Free Housing Program cont. 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 Authority 1. License procured by misrepresentation 2. Misstatements accompanying application 3. Applicant failed to comply with conditions set forth in any other rental license 4. Activities of applicant create or have created danger to the public 5. Rental unit contains conditions that might endanger the public
Proposal Details Section 4 Crime Free Housing Program cont. Revocation, Suspension, Declination Cont. 6. Failure to pay application, penalty, or reinstatement fees 7. Failure to correct violations of the code in the time specified 8. 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
Proposal Details Section 4 Crime Free Housing Program cont. 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 2 nd 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
Proposal Details Section 4 Crime Free Housing Program cont. 3 rd 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
Proposal Details Section 4 Crime Free Housing Program cont. 2 nd and 3 rd 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
Proposal Details Section 4 Crime Free Housing Program cont. 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
Proposal Details Section 4 Crime Free Housing Program cont. 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
Proposal Details Section 4 Crime Free Housing Program cont. 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
Proposal Details Section 4 Crime Free Housing Program cont. 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
Proposal Details Section 4 Crime Free Housing Program cont. 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
Next Steps: Proposed Work Plan 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.
Next Steps: Proposed Work Plan 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.
Next Steps: Proposed Work Plan 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.
Next Steps: Proposed Work Plan 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
Next Steps: Proposed Work Plan 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 Plan No 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 Ordinance Establishing Housing, Property Maintenance and Rental Code Sept 30, 2014 City of Virginia Buildings and Grounds Committee Littlewolf, Sipola, Baranzelli