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Percent of Code Compliance (2008 - present) Numberunits Rental units with compliance issues 5715.3% Number of all residential properties with compliance issues 7396.9% NEP cases for rentals 92.4% NEP for all residential properties 3403.2% N EXT STEPS From two years of data, we now have a better understanding of how many and where our rental units are, especially single-family homes. It appears that only a small amount of single-family homes (2%) are actually being rented. Continuing the rental registration program will help the City in tracking if there is an increase in single-family rentals. We also know that rented single-family homes have higher incidences of code violations. The information gathered as part of the rental registration program has proved to be helpful in getting into contact with the property owners of problem rental properties. Based on the data collected so far and looking at the typical characteristics of rental single-family homes, staff has done some modeling to determine where conditions are ripe for single-family areas of the city to become more rental occupied. Attachment B shows the results of the analysis. Specifically, it appears that the area around Lydia Ave. east of Snelling is an area that could see more rentals in the future. There also is a potential pocket of future rentals along B-2 from Lexington to Rice Street. The area of Western Avenue north of County Road C also have attributes that could lead to more rentals. Generally speaking, the homes along the major arterials through the City also will be susceptible to conversion to rental based on our analysis. Staff will continue to monitor these areas. Potential actions for the HRA to consider in those areas is targeted code enforcement and/or loan programs to assist home owners and/or property owners maintain the structures. In regards to rental registration itself, staff feels that the City should continue rental registration as it has proven to be beneficial to staff in enforcing code and gives the City a better understanding of the scope and magnitude of rental properties in the community. At this point, Staff does not recommend going to rental licensing. From Staff’s review of the data, it does not appear that there is a huge number or concentration of rental units, especially in regards to single-family homes. Licensing and the subsequent inspections by City staff of rental properties are typically done to ensure that the properties meet minimum standards. The information we have gathered so far does not indicate that there overwhelming need for licensing and inspection. It also should be noted that going to licensing and inspection will require the allocation of dollars to pay for the new program, which would include the hiring of new staff. Staff does feel that, however, there is a need to do some enhanced code enforcement activity on rental properties. Our current Neighborhood Enhancement Program (NEP) views every residential property on a three year schedule. Given the higher incidence of code violations for rental Rental Registration (04-20-10) - Page 3 of 4