JPH: //1 Manager s Report //1 nd Reading Tabled /1/1 nd Reading As Amended on September, 01 THIS ORDINANCE MAY BE CITED AS VILLAGE ORDINANCE NUMBER 1--C- AN ORDINANCE AMENDING CHAPTER, BY ADDING ARTICLE XIV, PERTAINING TO THE LICENSING FOR THE RENTAL OF MULTI-UNIT RESIDENTIAL BUILDINGS AND SECTION -, PERTAINING TO CRIME FREE LEASE PROVISIONS, OF THE SKOKIE VILLAGE CODE 1 1 1 1 1 1 1 1 1 0 1 WHEREAS, this Ordinance pertains to licensing of multi-unit residential buildings. Licensing of rental properties is one of the systemic tools used by municipalities for the maintenance and regulation of the business of renting residential property. This Ordinance is designed to ensure property management and supervision of the rental of multi-unit residential buildings; and WHEREAS, in 00, the Village adopted an ordinance relating to regulation of property which utilized the concept of declaring a property a nuisance to address certain problems. The 00 ordinance created a Nuisance Intervention and Prevention Committee (hereinafter NIP Committee ) within the Village and required all landlords of rental property to include a crime free lease addendum to their leases; and WHEREAS, the NIP Committee has engaged and worked with landlords in the Village, in order that they may better manage their rental properties; and WHEREAS, due to the effort and experiences of the NIP Committee, the Village recently began a review of Illinois municipalities that have established a licensing program for rental properties; and WHEREAS, the Village of Skokie s Public Safety Commission held two hearings on April 1 and May 1, 01, on the proposed licensing program which were well attended by property owners and the public; and WHEREAS, on May 1, 01, the Public Safety Commission voted to recommend to the Village Board that the proposed licensing program be adopted; and WHEREAS, on July 1, 01, the Assistant Village Manager stated in a presentation of the proposed licensing program to the Village Board that residential rental licensing is a proactive and preventative program that strengthens communication and the partnership between landlords and the Village. This initiative is designed to ensure that rental buildings are maintained in a safe and secure manner and adds a law enforcement perspective, as an additional resource; and Page 1 of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program
1 1 1 1 1 1 1 1 0 1 0 1 WHEREAS, in his presentation, the Assistant Village Manager emphasized that the program will have the following components: (i) licensing for the rental of multi-unit residential property; (ii) training and education of property owners and managers and (iii) inspections by Property Standards and Police personnel; (iv) enforcement of the crime free lease addendum requirement; WHEREAS, property owners who manage and supervise their property are able to adequately control the activity occurring on their property. Among the property management practices that contribute positively to neighborhoods are property owners or managers who require tenants to obey laws as a condition of leases, enforcement of existing lease provisions, responding to and taking affirmative actions to address complaints by tenants and surrounding property owners and maintaining their property in compliance with Village Codes; and WHEREAS, the expenditure of public funds results, in part, from the fact that certain property owners or managers fail to adequately manage and control their property; and WHEREAS, the provisions will assist in deterring property owners and managers from adopting inadequate management practices, thus benefiting current and future residents and property owners; and WHEREAS, crime free lease addendums are a vital part of an effort to reduce illegal activity in multi-unit residential rental buildings. A lease addendum is a civil contract between a landlord and tenant whereby the rental applicant agrees, prior to tenancy, to abide by the rules of the property and not to participate in or allow criminal activity to occur within their sphere of influence; and WHEREAS, the rental single-family attached and detached dwellings are not regulated by this Ordinance, but will be inventoried during the first year of licensing; and WHEREAS, the Village Manager recommended to the Mayor and Board of Trustees that Chapter of the Skokie Village Code be amended by adding Article XIV, and Chapter, Section -, be amended accordingly; and WHEREAS, the Mayor and Board of Trustees at a public meeting duly held on July 1, 01, concurred in the aforesaid recommendation of the Village Manager; and NOW, THEREFORE, BE IT ORDAINED, by the Mayor and Board of Trustees of the Village of Skokie, Cook County, Illinois; Section 1: The primary purpose of Chapter, Article XIV is to promote the health, welfare and safety of the residents of the Village of Skokie and to encourage property owners of multi-unit residential rental buildings to maintain and improve the quality of rental housing within the Village. Section : That Chapter of the Skokie Village Code be and the same is hereby amended by adding Article XIV in the manner hereinafter indicated. ARTICLE XIV. RENTAL PROPERTY LICENSING Page of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program
1 1 1 1 1 1 1 1 0 1 0 1 Section -00. Rental Property License. No person shall engage in the business of renting a residential unit in a multi-unit residential building within the Village without first having obtained a Rental Property License (hereinafter RPL ) issued by the Village. A RPL is necessary for each residential unit to be rented in such building. Section -01. Exceptions. (a) A RPL shall not be required for owner-occupied units in a multi-unit residential building. (b) A RPL shall not be required for residential units in a multi-unit building organized and owned pursuant to the Illinois Condominium Act ILCS 0 or organized pursuant to a residential cooperative agreement. (c) A RPL shall not be required for any residential townhouse or townhome. (d) A RPL shall not be required for residential units in a multi-unit building owned by a governmental entity. Section -0. Application. (a) A RPL shall be issued only upon written application to the Village, signed by the legal title holder (hereinafter Owner ) of the building. Said application shall contain information as required by the Village Manager or designee, and must be filed no later than thirty (0) days prior to the proposed date for rental of the unit. (b) An Owner may designate an Authorized Agent to act on his or her behalf, by submission of an executed Designated Authorized Agent form. Section -0. Property Standards. (a) Every licensed residential rental unit shall be owned, operated and maintained in full compliance with all Federal and State laws and the Village Code. (b) All exterior and common areas serving a licensed residential rental unit shall be owned, operated and maintained in full compliance with all Federal and State laws, and the Village Code. All exterior and common areas shall be subject to inspection by the Village. (c) All multi-unit residential buildings for which RPLs are necessary shall be subject to a public safety review by the Skokie Police Department. (d) Owner shall comply with the crime free lease requirements of Section -. (e) Owner must enforce the provisions of the crime free lease requirements of Section -. An Owner shall be considered in compliance if the Owner has initiated required eviction proceedings and diligently pursues such proceedings. Section -0. Owner Seminar. Page of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program
1 1 1 1 1 1 1 1 0 1 0 1 0 1 The Owner, or Owner s Authorized Agent, applying for a RPL shall have successfully completed the Skokie Residential Rental Property Landlord Seminar (hereinafter Seminar ), within six () months from the date of the issuance of a RPL. (a) An Owner, or Owner s Authorized Agent, of any multi-unit residential building, who has successfully completed prior professional training commensurate with the Village s Seminar may apply to the Village Manager or designee, may seek a waiver from the Seminar requirement. The Village Manager or designee, in his or her sole discretion, shall determine whether the applicant s prior professional training constitutes the substantial equivalent of the Village s Seminar. (b) An Owner or Authorized Agent who successfully completes the Village s Seminar shall not be required to attend and complete a Village Seminar following the issuance of any subsequent renewal RPL. (c) An Owner or Authorized Agent may be required to re-attend a Seminar, if the Village Manager or designee determines that re-attendance is required for good cause. Factors to be considered in determining whether or not to require a specific person to re-attend the seminar, shall consider the following: (1) Activities that have occurred on or in connection with the rental building; () Chronic criminal activity that has occurred on or in connection with the rental building, which Owner or Authorized Agent has failed to address; () History of Village Code violations in relation to multi-unit rental buildings; or () Owner or Authorized Agent has exhibited a lack of management or supervision of the multi-unit residential building. (d) A new Owner or Authorized Agent shall not be required to attend a Village Seminar, if it can be substantiated that the Owner or Authorized Agent meets the criteria in Section -0(a) or -0(b). -0. License Fee. (a) Each application for a RPL, or a renewal of an existing RPL, shall be accompanied by a fee as determined by the number of residential rental units in that building. The fee is $.00 per rental unit. (b) A RPL is not transferable. If the Ownership interest of a building changes by 0% or more, during the license year, a new RPL must be obtained for each residential rental unit. (c) The new Owner must file an application for a new RPL within ten () days of the change in ownership. The fee for the new RPL shall be determined on a prorated basis. No refund of any fees shall be made. -0. License Term and Expiration. Page of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program
1 1 1 1 1 1 1 1 0 1 0 1 0 1 Each RPL shall be effective on January 1 st and expire on December 1 st of each year. Notwithstanding any provision contained in this Article to the contrary, a RPL issued pursuant to this Article shall terminate upon the ownership interest of the building, for which the RPL pertains, a change of 0% or more. -0. Change of Ownership and or Information. Every Owner shall report to the Property Standards Supervisor, Community Development Department, any change in information on the required RPL application, within ten () days of such change, including, but not limited to, the removal or change of the Owner s Authorized Agent or a change in ownership interest is more than 0% of the multi-unit building. -0. Grounds for Denial or Suspension of an RPL. (a) The Village Manager or designee may deny an application for an RPL or refuse to renew an existing RPL, if any of the following circumstances exist at the time of application: (1) An Owner has not complied with the Village Code relating to the multi-unit residential rental building to which the RPL pertains, including, but not limited to, the provisions of Section -0; () An Owner fails to provide the required information on an application or provides fraudulent, false or misrepresentative statements, or has material omissions in the application for the RPL; () An Owner has outstanding fines, penalties or fees owed and past due to the Village; () If a RPL is suspended at the time of application due to a failure to enforce the crime free lease addendum provisions outlined in Section - (b); () If a RPL is suspended at the time of application due to a reason other than as outlined in Section -0(a)(),provided however, a tenant shall have the right to continue to occupy the unit for the balance of a valid lease term, but such lease shall not be renewed. (b) A RPL issued by the Village, unless otherwise provided, may be suspended by the Village Manager after notice and hearing as provided in this Article for any of the following causes: (1) An Owner has not complied with the Village Code relating to the multi-unit residential rental building to which the RPL pertains, including, but not limited to, the provisions of Section -0; () An Owner fails to provide the required information on an application or provides fraudulent, false or misrepresentative statements, or has material omissions in the application for the RPL; () An Owner has outstanding fines, penalties or fees owed and past due to the Village; Page of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program
1 1 1 1 1 1 1 1 0 1 0 1 0 1 () Failure of an Owner to amend existing leases to include the crime free lease addendum or to incorporate the crime free lease addendum in new leases effective June 0, 01; () Chronic violations of the Village Code effecting the Owner s multiunit residential buildings, which remain outstanding after sufficient time for correction. -0. Enforcement. (a) If, upon inspection of any multi-unit residential rental building, conditions or practices exist which are in violation of the Village Code, the Village shall serve the Owner or Owner s Authorized Agent with a warning letter outlining the violation(s). Such a warning letter shall identify the specific violation(s) and indicate that unless corrected within the time specified, the Owner shall be issued a citation and the RPLs associated with that building may be suspended. The warning letter shall be sent by First Class U.S. mail or hand delivered to the Owner or Owner s Authorized Agent. (b) If it is determined through a re-inspection that the conditions have not been corrected, or they are not in the process of being corrected, the Village may issue citations or a Notice to Suspend the appropriate RPL. (c) The Village shall provide notice of any criminal arrest that takes place in a residential multi-unit building, or on the common elements of such building, to an Owner or Owner s Authorized Agent. Such notice will include the name and address of the arrested individual and the offense charged, unless the charged individual falls within the jurisdiction of the Juvenile Court Act. -. Tenancy after suspension of a RPL. If a RPL is suspended or an application for RPL renewal is denied, an Owner or Owner s Authorized Agent shall not: (a) Lease the unit if the unit is vacant; (b) Renew a lease for the unit provided, however, a tenant shall have the right to continue occupancy for the lease term. -. Hearings. (a) The Village Manager or designee shall send notice of the Village s intent to suspend or revoke a RPL issued under this Article to the Owner. A RPL shall not be suspended unless the Owner, or Owner s Authorized Agent, has had an opportunity to present evidence to the Village Manager. The Owner or Owner s Authorized Agent may either submit written evidence to the Village Manager, and/or submit a written request for a hearing on the matter. (b) Any submission or request for a hearing must be received by the Village Manager or designee, within ten () business days of the date of the Notice of Intent to Suspend. If a request for a hearing is received within the time allowed, a hearing shall be held within thirty (0) days of the Village s Page of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program
1 1 1 1 1 1 1 1 0 1 0 1 0 1 receipt of the request for hearing. If, within ten () days of the Notice, the Owner or Owner s Authorized Agent does not submit any evidence or request a hearing in writing, the RPL shall be suspended. (c) Subsequent to a submittal of evidence by the Owner or Owner s Authorized Agent, or a hearing, the Village Manager shall issue a written Order which shall include his or her findings and decision, within five () business days. (d) In the event that the Village Manager should suspend a RPL subsequent to a hearing, such suspension shall be for an indeterminate amount of time. (e) In addition to the provisions contained in this article, the Village Manager shall have the authority to establish rules and regulations for the conduct of a hearing relating to the suspension of a RPL. -1. Reinstatement. The Owner may, at any time, request reinstatement of a suspended RPL. The request must be filed in writing to the Village Manager, detailing corrective action taken or circumstances that indicate compliance with the Village Code. Section : That Chapter of the Skokie Village Code be and the same is hereby amended in the manner hereinafter indicated. The new material is highlighted in bold. Sec. -. Crime free lease provisions; Obligations of landlords and tenants to commit to crime free tenancies. (b) In the event the criminal activity occurs that would constitutes (i) any class of felony, or (ii) a Class A misdemeanor, at least twice in one year, then a property owner, or authorized agent, shall initiate eviction proceedings against the tenant participating in the criminal activity as specified in the Illinois Code of Civil Procedure, ILCS /-1 et seq. A tenant that was a non-culpable victim or was not participating in criminal activity shall not be evicted for the reason of the criminal activity. In the event the property owner, authorized agent, or tenant, believes that the circumstances are such that eviction should not be undertaken, then they shall file a written request detailing the circumstances with the Nuisance Intervention and Prevention Committee, (hereinafter NIP Committee ) NIP Committee and request a determination of whether eviction is inappropriate. The NIP Committee may, at its discretion, meet with the property owner, authorized agent, and any other person, including the tenant, that may have relevant information regarding the circumstances. The NIP Committee shall render a written determination on the question of whether eviction inappropriate and may deliver it via first class mail. The NIP Committee may consider, but is not limited to, the following factors: 1. The activity itself,. The age of the participants involved in the activity,. Whether the tenant was a non-culpable victim of the activity, or Page of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program
. Any other factors the NIP Committee deems relevant. Section : That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law. ADOPTED this day of, 01. Ayes: Nays: Absent: Attested and filed in my office this day of, 01; and published in pamphlet form according to law from, 01 to, 01. Village Clerk Approved by me this, 01. Mayor, Village of Skokie day of Village Clerk Page of VOSDOCS-#00-v1-Ordinance Code_Amendment Chapter Multi-Unit_Rental_Licensing_Program