AGENDA #1
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Preliminary Recommendations for a Rental Licensing Program
DATE: January 23, 2002
The purpose of tonight’s public hearing is to receive citizen comments on preliminary recommendations for a rental licensing program.
SUMMARY OF PRELIMINARY RECOMMENDATIONS
We propose a self-certifying and complaint driven rental licensing program consistent with the recommendations presented by the Rental Licensing Task Force that would include the following components:
· Require each rental unit to have a rental license.
Exception: License not required if the owner were temporarily living out of Town and renting their unit with the intent of returning within twelve months.
· Require each rental license to be renewed annually
· Require rental licensing fees to be paid annually.
· Adopt the following fee schedule during the 2002-2003 budget process:
Dwelling Units Proposed
Owned License Fee (per unit)
1 to 4 $12
5 to 19 $ 8
20 or more $ 5
· Establish a “Rental License Application Form” and a “Rental Duties Information Sheet”
We also recommend hiring a full-time Zoning Enforcement Officer, a part-time Administrative Clerk (twenty hours per week) and a temporary Administrative Clerk (twenty hours per week) for the first six months of the program to assist with the initial implementation.
BACKGROUND
The Town’s Comprehensive Plan adopted by the Council on May 8, 2000 recommends that the Council implement a rental licensing program as a tool that “could help to protect the character and the stability of the Town’s residential neighborhoods, while assuring renters that licensed rental units meet minimum housing standards.”
On March 26, 2001, the Rental Licensing Task Force presented five recommendations for the Council’s consideration. The Task Force recommends that the Council consider a program that would:
1. Require each rental unit in Town to be licensed;
2. Amend the Housing Code to establish a Rental Licensing Ordinance to increase the duties of the Building Inspector to include maintenance of a data base;
3. Require property owners to complete an initial application and then annually certify that their property meets the Town’s Minimum Housing Code;
4. Create a database that would include contact information for property owners and/or the registered agent; and
5. Develop a fee schedule for licenses. As recommended by the Task Force, the fee should not exceed the cost of implementing a licensing program; a graduated fee should be considered for licensees of multiple units.
On January 14, 2002, the Council adopted a resolution to: (1) schedule tonight’s public forum to receive citizen comments on preliminary recommendations for a rental licensing program; (2) refer the preliminary recommendation to the Housing and Community Development Advisory Board and the Planning Board for review; (3) return to the Council on February 25, 2002, for consideration of an ordinance (Please see Attachment 1). Notices for tonight’s public hearing were sent to the rental licensing mailing list.
DISCUSSION
We believe that there are four main goals of a rental licensing program: (1) to raise community standards; (2) to develop a greater sense of responsibility by renters; (3) to maintain and improve the quality of rental housing; and (4) to improve communication among the Town, property owners and renters regarding compliance with Town regulations.
Below are preliminary recommendations for a rental licensing program:
1. Applicability
· All owners of rental property, including the Town, would be required to obtain a rental license for each rental unit.
· Licenses would be renewed annually and owners would annually pay the license fee.
· Proposed Exception: If an owner was temporarily living out of Town and renting his/her unit with the intent of returning within twelve months. We believe that this exception may accommodate citizens that leave Town temporarily but intend to return to their home within a year.
· Additional Option: The Council could also choose to exempt owners of accessory apartments from the rental licensing program. The Town’s Development Ordinance defines an accessory apartment as, “a dwelling or combination of dwellings on a single zoning lot consisting of two dwelling units, provided the floor area of one of the dwelling units does not exceed 50% of the floor area of the other dwelling unit, nor is greater than 750 square feet and further provided the dwelling’s exterior design and entry locations give the dwelling the appearance of a single family dwelling”.
2. Amendment to Housing Code
· Amend the Housing Code to include a Rental Licensing Ordinance that requires property owners to obtain a rental license.
3. Application Form and Rental Duties Information Sheet
· The application would:
Ø Require owners to submit contact information including name, address and telephone number.
Ø Request that the owners provide the name, address and telephone number of any registered agent empowered to act for the owner. Additional contact information would be requested (i.e. cellular phone number, pager number, email address) and would be made available to the tenants and the public if provided, but this additional information would not be required.
Ø Require annual self-certification from property owners that their property meets the Town’s Minimum Housing Code.
· The Town would distribute a Rental Duties Information Sheet to owners of rental property.
4. Creation of a Database
· Create a database that would include all of the information obtained from the applications and that would track complaints.
· Purchase a software program that would allow us to establish and maintain the necessary data for a rental licensing program. Once the database is established, the Town’s existing system could annually generate a bill to remind property owners to renew their license and re-certify the compliance of their units with the Town’s Minimum Housing Code. The Inspections Department would be responsible for regularly updating the database.
· The Town-maintained database would be accessible to the public via the Town’s web site, and hard copies would be made available at Town Hall and the Library.
5. Fee Schedule
· Fees would cover the cost of implementing the program.
· The cost for implementing the program would be reviewed annually.
· Rental licensing fees would be due upon submittal of rental license application or receipt of the rental license renewal statement.
· Projected Revenue
Ø The fee schedule below is based on a sliding scale and is designed to cover administrative cost of implementing the program.
Number of Dwelling Estimated
Dwelling Units Proposed Number of Projected
Owned Town-wide License Fee (per unit) Rental Units Revenue
1 to 4 $12 4,270 $51,240
5 to 19 $8 4,475 $35,800
20 or more $5 1,420 $ 7,100
Total 10,165 $94,140
We recommend a 2002-2003 fiscal year budget allocation of approximately $92,000 to add a Zoning Enforcement Officer, a part-time Administrative Clerk (twenty hours per week), and a temporary Administrative Clerk (twenty hours per week). A Zoning Enforcement Officer would inspect rental property on a complaint basis to ensure compliance with the Town minimum housing code and zoning ordinance, notify owners of corrective actions necessary to comply, issue violation notices and take other measures necessary to ensure compliance. The person in this position would also work with neighborhood organizations and property managers to improve communication with the Town and understanding of relevant codes. This person would also work with the Town Attorney to facilitate court action if legal action were required.
A part-time Administrative Clerk would provide information to the public about the licensing program and services, and assist with the maintenance of the rental licensing database and with code enforcement procedures. This person would also work with the temporary employee to enter data from the rental license applications. A temporary contract Administrative Clerk would provide data entry services during the first six months of program implementation, particularly related to the creation of the database.
Year 1 Costs
Zoning Enforcement Officer $38,000 (salary and benefits)
1 Part-time Administrative Clerk $16,500 (salary and benefits)
1Temporary Contract Administrative Clerk $ 7,800 ($15 per hour, 4 hrs per day for 26 weeks)
Legal Expenses $10,000
Database System Development (software) $ 8,000
Computer Equipment (two computers) $ 5,000
Office Furniture $ 3,000
Vehicle Expense $ 4,000
Total $92,300
Year 2 Costs
Zoning Enforcement Officer $38,000 (salary and benefits)[1]
1 Part-time Administrative Clerk $16,500 (salary and benefits)1
Legal Expenses $10,000
Web Access Implementation $ 7,000
Computer Equipment $ 1,700
Vehicle Expense $ 4,000
Total $77,200
6. Evaluation
· If a rental licensing program is approved, we recommend that in three years the Council appoint a committee to evaluate the effectiveness of the program.
PROGRAM IMPLEMENTATION
If the program were approved as part of the Town’s 2002-2003 budget, and a Zoning Enforcement Officer, part-time Administrative Clerk and temporary contract Administrative Clerk were hired, the proposed start date for the rental licensing program would be January 2003. Between July and December 2002, we would develop an inventory of rental properties and notify the property owners of the Rental Licensing Ordinance. We would also be developing educational materials for both landlords and renters. We would send rental property owners a copy of the Rental Licensing Ordinance, the Town’s Minimum Housing Code, an application form, rental duties information sheet, information about Town policies and ordinances relevant to trash collection, noise control and parking. We would also inform property owners that we would expect them to comply with the new Ordinance within 3 months.
Upon receipt of the application, the property owner would list the address of the property, the number of tenants living in the dwelling, the number of parking spaces provided, on-site and through on-street permits, and contact information. Landlords would certify the distribution of a copy of the “rental duties” information sheet to each tenant. The Inspections Department would make this information available to the public at Town Hall and/or via the Town’s website.
Property owners would be required to apply annually to renew their rental license and self-certify that their property meets the Town’s Minimum Housing Code. Fees would also be paid annually.
NEXT STEPS
After tonight’s hearing, we propose to consider citizen and Council comments we may receive and present a final recommendation to the Council on February 25, 2002.
ATTACHMENTS