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
Research and Process cont.
• Documents:
– 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
üExample 1: Single Family home gutted for
remodel, wood stove, rented to 14 people, 10
children under 12.
üExample 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.
üExample 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
City-Data.com
City-Data.com
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 6th avenue Jan 1-Aug 30, 2014 www.crimemap.com
Northside Virginia
Note Crime density east of 9th 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 6th 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 9th 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 6th and 9th 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 9th Ave N
and East of 6th Ave)
• These two high density rental areas in Virginia account for 711% 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
Ø 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
Ø 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….
ü More rental housing
ü More calls and more crime
ü More Police officers
ü More Firefighter/Paramedics
ü 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.
2.
3.
4.
A nuisance event as described in City Code Sec 10.37
A violation of City Code, State or Federal law: firearms
Illegal drug related activity, including synthetics
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
– 2nd 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.
– 3rd 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.
• 2nd and 3rd 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