AGENDA #3a(2)
Triangle Apartment Association
3739 National Drive, Suite 202
Raleigh, NC 27612
January 20, 2005
Town Council Members
City of Chapel Hill
Re: Evaluation of the Rental Licensing Program
As members of the Triangle Apartment Association, we would like to take the opportunity to express to you our continued concerns regarding the Rental Licensing Program.
In an effort to “address the effects on neighborhoods of the conversion of owner-occupied residences to rental properties”, the town of Chapel Hill implemented the Rental Licensing Program in June 2002. The concerns of the Chapel Hill residents included “housing affordability, front-yard parking and effects on the physical character of the neighborhoods.” As a result, a complaint-driven system was established requiring owners to license all rental property for an annual fee of $10 per unit. Furthermore, the Rental Program Licensing Task Force recommended that the Chapel Hill Town Council reconvene in January 2005 to evaluate the effectiveness of the complaint-driven program. We would like to offer additional feedback from the multi-family industry that this program is impacting.
The Rental Licensing Program does not specifically address the concerns of the Chapel Hill residents. The town of Chapel Hill hoped to proactively address the issue of the conversion of owner-occupied residences to rental properties. Obviously, professionally managed apartment communities fall outside the scope of this goal. Although exemptions have been offered to home owners renting accessory apartments within their homes and owners renting their homes that have the intention of returning within 12 months, no exceptions have been offered to owners of large apartment communities with a professional, on-site management team. Many of these communities have had little to no complaints; however, they continue to have fees imposed on an annual basis regardless of their continued compliance with the current housing codes this program hopes to enforce. Essentially, this system is being funded by a group of large landlords with on-site management that are already in compliance, which has fallen short of the original intention.
We have received a copy of the Spring 2004 MPA Team study results. This study attempted to measure changes in the areas of concern as identified by Chapel Hill residents. The original areas identified before the program began were “housing affordability, front-yard parking and effects on the physical character of the neighborhoods.” However, the scope of this study supplied changes in the number of noise and inspection complaints and sanitation violations. We are uncertain why there is an obvious deviation from the original complaints voiced by the residents.
January 20, 2005
Page 2
Rental housing noise complaints, inspection complaints and sanitation violations comprise 34.2%, 16.3% and 33.7% respectively. In all cases, the majority of complaints are arising from housing other than rental property. This is a matter of code enforcement. “The physical character of the neighborhoods” is being negatively impacted by the private home owners. Furthermore, we fail to see how this program does anything to improve these areas. The complaint-driven code enforcement would take place regardless of a rental licensing program.
Finally, the current plan has done nothing to improve housing affordability. If anything, the fee-based structure to all rental property is one of the highest in the nation. In addition, a program that charges the same fees to all owners regardless of whether or not they are in compliance is simply not equitable and does little to promote compliance. More importantly, it does nothing to improve housing affordability in the town. Landlords are essentially forced to impose rent increases to help offset these costs.
I hope that you will seriously consider the lack of impact that the Rental Licensing Program has had on the town. This program has simply not effectively addressed the concerns of the Chapel Hill residents. Please withdraw your support for this program. We would welcome the opportunity to address the Council on January 24, 2005 regarding this issue.
Sincerely,
Legislative Committee
Triangle Apartment Association