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HomeMy WebLinkAbout1E, Draft Rental Registration Ordinance DATE: May 11, 2009 Agenda Item 1.E ~ ~HILLS MEMORANDUM TO: Mayor & City Council FROM: James Lehnhoff, Community Development Director SUBJECT: Draft Rental Registration Ordinance Back2:round At the October 20, 2008, work session, the City Council reviewed and discussed a number of potential projects to help address code compliance con~erns in the City. Together, these projects are part of an overall community enhancement program. As part of that discussion, the Council came to a consensus to investigate and work toward implementing the following community enhancement programs: 1. Develop and distribute educational materials for property owners and tenants regarding City regulations; - ongoing 2. Review commonly violated City regulations to increase clarity and enforceability while meeting City goals; - ongoing 3. Review and update the nuisance regulations and develop an accelerated abatement procedure for certain types of ongoing nuisances; - completed 4. Develop a formal code compliance response policy; - completed 5. Review and work toward implementing a rental registration program - subject of this memorandum 6. Continue investigation of an administrative fine program. - part of 2009 work plan In accordance with the work plan, staff and the City Attorney have prepared a rental registration ordinance. The primary purpose of this ordinance is to track rental patterns in the City, educate renters on City regulations, and to provide staff with the necessary contact information for non- owner occupied properties. City of Arden Hills City Council Work Session for May 18, 2009 \\Metro-inet.us\ardenhills\Admin\Council\Agendas & Packet Information \2009\05-18-09 Worksession\Packet Information \051809 - CC Memo- Rental Registration. doc Page 1 of 4 Draft Rental Re2:istration Ordinance Review · Who is required to register? Since the City has just one traditional apartment building, one condo building, and a senior housing building, this program is directed toward structures with four or fewer units. Ifmore multi-family buildings are constructed in the future, this ordinance can be amended to include additional types of residential buildings. On-campus student housing, off-campus student housing operated by a college or university in structures with more than four dwelling units, nursing home units, and hotels/motels are also exempt under this proposed ordinance. If for some reason a college or other institution purchased a dwelling to rent out, they would be require to register. If a property is occupied by the owner but a room is rented out, the owner would be required to register if the tenant is not related to the owner. However, registration would not be required if the tenant is related to the owner. A related tenant is defined as a tenant residing in a dwelling unit who is cohabitating with the owner or is related to the owner of the dwelling by blood, marriage, or adoption as either a parent, child, sibling, grandparent, grandchild, step-parent, step-child, step-grandparent, or step-grandchild. · What information is required to register? A primary reason for adopting this ordinance is to have up to date contact information for the property owners so that the City can contact them if needed. Therefore, the property owner is required to provide their name, address, phone number, birth date, and driver's license/identification number. If the property is owned by a business (i.e. LLC, corporation, partnership), the business must appoint an agent and provide the same information listed above. In reviewing other example ordinances, a number of cities also require the contact person, whether the owner or agent, to reside within the seven country metropolitan area. Should the property owner live outside the metropolitan area, the owner would be required to appoint an agent that resides within the metropolitan area and provide the necessary contact information. Additional information requirements include: the property address, number of bedrooms, size of the bedrooms, number of bathrooms, and the number of occupants. For privacy and security reasons, the city will not be keeping a list of the names of the tenants on file at the City. Cities are advised against keeping a list of names on file because it can cause problems in cases where the tenants require privacy due to domestic abuse or other similar issues. The property owner is still required to provide a list to the City upon request. City of Arden Hills City Council Work Session for May 18, 2009 1 \Ahdocs1 \ah\AHdata\Planning\Community Development\Community Enhancement Program\Rental Regulation 1051809 - CC Memo - Rental Registration. doc Page 2 of 4 The draft ordinance lists the minimum requirements. The City can require additional pertinent information on the application without having to change the ordinance. · Will there be inspections prior to issuing a registration? As discussed with the Council last October, this registration program does not include an inspection component. This program is meant to locate rental units to help with education, maintain contact information, and track rental trends. If, in the future, inspections are needed, the program can be modified to required internal and/or external inspections. · What happens if a registration is reiected" suspended" or revoked? While it would be against City ordinance to lease a residential property without a rental registration in good standing, a city does not have the power to evict a tenant if the property is in violation of the ordinance and the registration is denied, suspended, or revoked. The attached letter from the City Attorney provides additional information on enforcement. When there is a violation, the City would need to file a lawsuit against the property owner to require them to come into conformance with the ordinance and resolve whatever violations led to the registration being denied, suspended, or revoked. Residential Rental Properties Of the nearly 2,900 ,dwelling units in the City, approximately 220 were classified as non- homestead in April 2009. There is, however, another classification of homesteaded properties called "relative homestead." A relative homestead allows a property owner to homestead a property through a relative that lives at the property, but the property owner does not actually live at the property. Unfortunately, relative homesteads are not tracked separately from traditional homesteads in the Ramsey County property database. However, based on a comparison of the owner names to the homesteaded names, staff estimated between 60 and 70 relative homestead properties in the City. Since this is a new program, it will take time to locate and educate property owners on the registration requirements. Re2:istration Fee A registration fee is intended to cover the cost of implementing and maintaining the program. PermitWorks, the recently purchased permit software, can be expanded to include a rental registration/business licensing module. Including the database software, staff time, City Attorney time, mailings, postage, and educational materials, the estimated cost of the first year implementation and maintenance is $10,200, though staff is still finalizing those numbers. The costs will fluctuate depending on the final number of rental properties and the responsiveness of the property owners. Staff contacted the City of Roseville to determine how much time they have spent on their recently adopted rental registration program to help estimate the budget. City of Arden Hills City Council Work Session for May 18, 2009 \ \Ahdocs 1 \ah \AHdata\Planning\ Community Development\ Community Enhancement Program \Rental Regulation \051809 - CC Memo - Rental Registration. doc Page 3 of 4 Staff is proposing a registration fee of$35-$40 per dwelling unit to cover the cost of the program. A final fee recommendation will be prepared once the budget numbers are finalized. Roseville charges $25 per dwelling unit, but their initial evaluation has indicated that the fee may be short in covering the program costs. This fee can be adjusted up or down in subsequent years to ensure that the program costs are being covered by the fee, including enforcement. Education As noted previously, educating property owner and tenants on city regulations is a primary component of this program. Staffwill be preparing an educational pamphlet and an update to the website to facilitate this process and educate property owners. The educational materials will be distributed with every rental registration. This topic could also be covered in the City newsletter. Implementation Depending on the results of the work session, the draft ordinance could be brought back to the Council for official action at the June 8 or June 29 regular City Council meeting. The ordinance provides 120 days for existing properties to register after the adoption of the ordinance. Thereafter, the registration would expire at midnight on June 30 of each year. Staff chose a date mid-year so as to spread out the work from the business licensing program, which requires renewals at the end of each year, and because a mid-year date is more in line with student rental timeframes. Attachment A. May 13, 2009, Letter from the City Attorney B. Draft Rental Registration Ordinance City of Arden Hills City Council Work Session for May 18, 2009 \ \Ahdocs1 \ah \AHdata\Planning\ Community Development \ Community Enhancement Program\Rental Regulation \051809 - CC Memo - Rental Registration. doc . Page 4 of 4 ~ Attachment A May 13, 2009, Letter from the City Attorney May 18, 2009, City Council Meeting Warren E. Peterson Jerome P. Filla Daniel Witt Fram Glenn A. Bergman John Michael Miller Michael T. Oberle Steven H. Bruns. Paul W. Fahning- Sonia R. Ortiz Amy K. L. Schmidt Ben I. Rust Jonathan R. Cuskey Jared M. Goerlitz P~ERSQ\J, FAAM - BERGMAN PROFESSIONAL ASSOCIATION Suite 800 55 East Fifth Street st. Paul. MN 55101~1718 (651) 291.8955 (651) 228-1753 facsimile www.pfb-pa.com (651 )290-6907 ifilI a(ci)pfb-pa.com May 13, 2009 James Lehnhoff Director of Community Development City of Arden Hills 1245 West Hwy 96 Arden Hills, MN 55112 VIA EMAIL Re: Rental Unit Certificates Our File No.: 10450.08-11 James: You have asked me to comment on the enforcement provisions of the proposed Residential Rental Unit regulations (proposed City Code Sections 335.05-335.07). When a violation occurs, the City has the following options: 1. It can issue a criminal citation against the offending property owner. In Ramsey County it could be nine (9) months from the date that the citation is filed until the matter is tried to a jury. The maximum fine for a misdemeanor violation is $1,000 or 90 days in jail, or some combination thereof. The court does not have the authority to enforce compliance but usually will suspend all or part of a sentence .if the property owner complies with the City's regulations within a specific time. 2. The City can commence a civil suit against the offending property owner. Since this type of case would usually involve non emergency matters, it could take up to nine (9) months from the date on which the civil complaint is filed until the court trial. The City would be asking the court to issue an order requiring the offending property owner to either comply (ie, register the property) with the City's regulations within a specific time; or issue an order which prevents the offending property owner from renting property until the property owner complies with the City's regulations. The City would request its fees and costs. 3. The City could conduct a hearing to suspend or revoke the rental unit certificate. · ALSO ADMITTED IN WISCONSIN James Lehnhoff May 13, 2009 Page 2 If the property has been rented, it will continue to be rented unless a court order requires the property owner to evict tenants, which is unlikely. The City does not have the authority to evict the tenants. However, depending upon the circumstances, the City could enforce other City regulations involving its zoning code, building code, or fire code, as well as other state statutes (ie, disorderly conduct, parking, noise, nuisance) against.the offending property owners or tenants. JPF/jmt If you have any questions, please contact me. cc: Ron Moorse F:\users\Jessica\Jerry\Arden Hills\Correspondence\Lehnhoff Ltr 5.12.09.doc Attachment B Draft Rental Registration Ordinance May 18, 2009, City Council Meeting DRAFT Ordinance 2009-00X Section 335 Residential Rental Unit Registration 335.01 Purpose and Scope. The City recognizes a need for an organized registration program for residential rental properties with four units or less in order to identify and quantify rental units and to provide information and a method to enforce standards to meet City and State safety, health, fire, and zoning codes. The implementation of a rental regulation program is a mechanism to help ensure that rental housing will not become a nuisance to the neighborhood; will not foster blight and deterioration; and/or will not create a disincentive to reinvestment in the community. Furthermore, the operation of rental housing entails certain responsibilities. Owners of rental housing are required to take the reasonable necessary steps to ensure that the citizens who occupy rental housing units may pursue the quiet enjoyment of the normal activities of life in the surrounding area that are: safe, secure, and sanitary; free from crimes and criminal activity, noise, nuisances or annoyances; free from unreasonable fears about safety of persons and security of property; and suitable for raising children. 335.02 Definitions. For the purpose of this Chapter, the following terms shall be defined as set forth below. Subd I. Agent. A person designated In writing by the Owner as the Owner's representative. Subd 2. City Administrator. The City Administrator or the City Administrator's designated agent. Subd 3. Dwelling Unit. Any residential building or portion thereof that contains living facilities, including provisions for sleeping, eating, and sanitation. Subd 4. Occupant. A person(s) who lives or sleeps in a dwelling unit; Subd 5. Owner. A person who is the record owner of the dwelling unit. Subd 6. Rent. To permit occupancy of a dwelling unit or portion of a dwelling unit by a person other than the legal Owner thereof, pursuant to a written or unwritten agreement, whether or not a fee is required by the agreement. Subd 7. Rental Unit. A residential dwelling unit which has been leased by the owner to a tenant. Subd 8. Tenant. Any person granted temporary use of a rental dwelling pursuant to a lease with the owner of the dwelling unit. Subd 9. Related Tenant. A tenant residing in a dwelling unit who is cohabitating with the owner or is related to the owner of the dwelling unit by blood, marriage, or adoption 1 as either a parent, child, sibling, grandparent, grandchild, step-parent, step-child, step- grandparent, or step-grandchild. 335.03 General Registration Provisions. Subd I. Residential Rental Unit Registration Required. Except as hereinafter provided, it is unlawful for any person to let to another person for occupancy any dwelling unit unless such dwelling unit has been issued a rental unit certificate registered pursuant to this Chapter. The following uses shall be exempt from the registration requirement: A. Structures with more than four dwelling units (i.e. apartment buildings). B. On-campus student housing, off-campus student housing operated by a college or university in structures with more than four dwelling units, nursing home units, and hotels/motels. C. Owner occupied dwelling units where the owner files an affidavit with the City identifying the tenant(s) as a related tenant(s). Owner shall notify the City of any change in tenant relationship within thirty (30) days of such a change. Subd 2. Registration Application. The owner of a rental unit shall file an application for a rental unit certificate on forms provided by the City Administrator. The form shall include at least the following information: A. Name, address, phone number, birth date, and driver's license/identification number of the property owner. If the owner is not a natural person (i.e. a partnership, corporation, or other similar business entity), the name, address, phone number, and drivers license/identification of a designated agent for the owner shall be provided. B. Owners who do not reside within the counties of Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey, Scott, or Washington Counties (the "Metropolitan Area") must appoint an agent who resides within the Metropolitan area to be responsible for maintenance of the structure and property, receipt of violation notices, receipt of compliance orders, institution or remedial action to effect such orders, and acceptance of all service of process pursuant to law. The name, address, phone number, birth date, and driver's license/identification number of the agent shall be provided. C. The street address of the rental property. D. The number and type or rental units on the property (sleeping room(s), single family, duplex, triplex, or fourplex). 2 E. Number of bedrooms, bedroom size in square feet, and bathrooms in each dwelling unit F. The number of people living in the rental unit. If the rental unit is occupied by the owner and rooms are rented to people not exempted under 335.03 Subd 1.C, the number of people renting and rooms being rented shall be provided. Subd 3. Registration of Existing Rental Units. An owner of an existing rental unit must apply for a rental unit certificate pursuant to this Chapter no later than 120 days following the effective date of this Chapter. Subd 4. Duration of Rental Unit Certificate. All rental unit certificates shall expire on midnight of June 30 of each year unless otherwise suspended or revoked prior thereto. Subd 5. Fees. Registration fees and penalty fees shall be prescribed by ordinance by the City Council. The required fees shall be submitted along with the application for a new or renewal rental unit certificate. Subd 6. Renewal of Registration. An Owner or its Agent may continue to rent a dwelling unit after the expiration date of the rental registration provided that the Owner or its Agent has filed with the City Administrator, on or before the expiration date, the appropriate renewal registration application and fee. Subd 7. Changes in Ownership and Amended Unit Certificate. A rental unit certificate shall not be transferable to another person, to another rental unit, or to a new property owner. Any changes occurring in the ownership of a rental unit shall require a new rental unit certificate. The new owner must obtain a new rental unit certificate within thirty (30) days of acquiring the property. The fee paid for the new rental unit certificate shall be the fee required for an initial rental unit certificate. If any changes occur in any information required on the registration application, the owner must submit an amended registration application to the City within thirty (30) days of the chang~. 335.04 Conditions of Use. The registration approval shall be contingent upon the following: Subd 1. Conformance to Laws. Owners of registered dwelling units shall comply with applicable City Codes, including but not limited to Chapter 14, Property Maintenance. Subd 2. Real Estate Taxes and Utility Bills. The real estate taxes and municipal utility bills for the property shall be in good standing prior to issuing a rental registration certificate. Real estate taxes will not be considered to be due and payable for the purposes of this Chapter while a proper and timely appeal of such taxes is pending and is diligently pursued to completion by the registrant. Subd 3. Inspections. The Building Official, Building Inspector, Fire Department personnel, law enforcement officers and their respective representatives are authorized 3 to make inspections reasonably necessary to enforce this Chapter and its subsections. All authorized inspectors have the authority to enter any rental unit at all reasonable times. Each occupant shall give the owner, the owner's agent or authorized City official access to any part of such rental unit at reasonable times for the purpose of inspection, maintenance, repairs or alterations as ar~ necessary to comply with the provisions of this Chapter. If any owner, owner's agent or occupant of a rental unit fails or refuses to permit entry to a rental unit for an inspection pursuant to this Chapter, the inspector may seek an administrative search warrant authorizing such inspection. Subd 4. Tenant Register. The Owner or its Agent shall keep or cause to be kept, a current register of occupancy for each dwelling unit which shall be made available to the City upon request. 335.05 Registration Suspension or Revocation. A rental unit certificate may be suspended or revoked by the City Council as provided herein Prior to suspension or revocation, the Owner or its Agent shall be notified in writing at least seven (7) days prior to the City Council's consideration of such action. In the event that a rental unit certificate is suspended or revoked by the City Council, it shall be unlawful for the Owner or its Agent to thereafter permit any new occupancies for vacant, or thereafter vacated rental units, until the rental unit certificate has been reinstated. Issuance of a new rental unit certificate after suspension or revocation shall be made in the manner provided for obtaining an initial registration. A rental unit registration certificate may be suspended or revoked for any of the following reasons: Subd 1. Failure of Owner or its Agent to operate or maintain the rental units In compliance with the provisions of the City's regulations. Subd 2. The registration was procured by misrepresentation of material facts, by fraud, by deceit or by bad faith. Subd 3. The Owner or its Agent made oral or written misrepresentations of material facts in or accompanying the application. Subd 4. The Owner or its Agent has failed to comply with any condition set forth in any other permits granted by the City for the property. Subd 5. The activities of the Owner or its Agent create or have created a serious danger to the public health, safety or welfare. Subd 6. The Owner or its Agent manages and operates the dwelling unit in a manner that creates a public nuisance; creates a nuisance affecting health, safety and welfare; or violates any of the following rules or regulations: A. Violation of laws relating to the possession of controlled substances as defined in Minnesota Statute 152.01 et seq. B. Violation of laws relating to disorderly conduct as defined in Minnesota Statutes 609.72. 4 C. Violation relating to the sale of intoxicating liquor as defined In Minnesota Statutes. 340A.701, 340A.702 or 340A.703. D. Violation of laws relating to prostitution or acts relating to prostitution as defined in Minnesota Statutes 609.321, Subdivision E. Violation of laws relating to unlawful use or possession of a firearm as defined in Minnesota Statute 609.66 et seq., on the registered premises. F. Violation of laws relating to assault, including domestic assault as defined in Minnesota Statute 609.2242. G. Violation of laws relating to contributing to the need for protection or services or delinquency of a minor as defined in Minnesota Statute 260C, et. seq. H. Violation of laws which prohibit gambling as defined in Minnesota Statute 609.75 through 609.76 335.06 Violation. Except as provided in Section 335.03 Subd. I A-C, any person that maintains a rental unit without having the required rental unit certificate, or after the rental unit certificate for the property has been revoked or suspended, or who permits new occupancy in violation of this Chapter is guilty of a misdemeanor. 335.07 Authority. Nothing in this Chapter shall prevent the City from taking action under any applicable rule, standard, statute or ordinance for violations thereof and to seek either injunctive relief or criminal prosecution for such violations as therein provided. 335.08 No Warranty by the City. By enacting and undertaking to enforce this Ordinance, neither the City, its designees, the City Council, or its officers, agents or employees warrant or guarantee the safety, fitness or suitability of any dwelling in the City. Owners or occupants should take whatever steps they deem appropriate to protect their interests, health, safety and welfare. A warning in substantially the foregoing language shall be printed on the face of the rental registration. 335.09 Severability. If any provision of this Chapter or amendment thereto, or the application thereof to any person, entity or circumstance, is held invalid or unconstitutional by a court of competent jurisdiction, the remainder of this Chapter shall remain in full force and effect and the application thereof to other persons, entities or circumstances shall not be affected thereby. F:\users\Tessica\Terry\Arden Hills\Residential Rental Unit Registration.v4.doc 5