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KI;�6_01SEN+h+E REQUEST FOR COUNCIL ACTION Date: 10/21/13 Item No.: 11. a Department Approval City Manager Approval Item Description: Review of drafted Multifamily Rental Licenses 908 BACKGROUND The RHRA created program guidelines that were reviewed by the City Council at the March 11, 2013, joint meeting. The guidelines were updated and then reviewed by the RHRA Board on April 16, 2013. The RHRA then directed staff to draft an ordinance. 6 In addition to the public meetings noted above, the RHRA Board received testimony from the 6 public regarding the guidelines on November 20, 2012, February 19, 2013, and August 13, 2013. 7 RHRA staff worked with the City's Building Codes officials and the City Attorney to draft 8 Ordinance 908 (Attachment A: Draft Ordinance 908), which was reviewed by the RHRA Board 9 on August 13, 2013. Public comment was taken and some modifications were made based upon 10 that meeting. 11 At their September 16, 2013, meeting, Council reviewed and recommended slight modifications 12 to the Draft Ordinance 908. The attached version reflects those recommendations. 13 14 Based upon testimony of rental property owners the following are highlights of the 15 implementation of Ordinance 908: 16 • The required licensing of Multi - family Rental properties will become effective 17 January 1, 2015. 18 • The inspections will be conducted by the Community Development Department 19 (CDD) staff and will be done by a seasonal code enforcement officer. 20 • The cost of the initial inspection will be included in the licensing fee the first year. 21 • The proposed fee for the first year is $20 /unit + $100 /building. 22 • All costs for the subsequent years of the program will come from the CDD budget. 23 • The first -year inspections are estimated to begin in May 2014 and are intended to 24 conclude in September 2014. 25 • One third of all rental units will be inspected unless the code enforcement officer 26 deems it necessary to inspect more of the units. 27 • The draft ordinance would require owners /managers of Multi - family Rental 28 Dwellings (MRD) to do criminal background checks on all renters, to include a 29 disorderly behavior lease addendum to all leases, to maintain a current occupancy 30 register of all renters, and to ensure that all maintenance /repairs have been completed. 31 • The ordinance would require that property owners have a management representative 32 located within the 7- county metro area. 33 34 While the RHRA staff has taken the lead to write the Ordinance and Implementation Plan, it is Page 1 of 2