AGENDA #4g

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Update on the Rental Licensing Program

 

DATE:             January 24, 2005

 

The purpose of this memorandum is to provide the Council with a status report on the Rental Licensing Program. 

 

BACKGROUND

 

·         The Town’s Comprehensive Plan, adopted on May 8, 2000, includes a provision 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 June 12, 2000, the Council established a Rental Licensing Task Force and charged the Committee to provide the Council with recommendations about whether to enact a system of licensing the rental of residential dwelling units in Chapel Hill, and what form such a system would take.

 

·         On March 26, 2001, the Rental Licensing Task Force presented recommendations for the Council’s consideration. 

 

·         On January 14, 2002, we provided the Council with a report that evaluated the recommendations of the Task Force and the Council approved a process for implementing a rental licensing program.

 

·         On January 23, 2002, the Council held a public hearing to receive citizen comments on a proposed rental licensing program.

 

·         On April 8, 2002, the Council adopted a resolution that established guidelines for the Rental Licensing Program, and adopted an ordinance (attached) to establish a program for the licensing of residential rental properties.

 

·         On June 23, 2003, we provided the Council with an update on the first year operation of the program.

 

·         On August 25, 2003, the Council adopted a resolution that exempted non-profit organizations that offer low-income subsidized rental housing from the rental license fee, but not from the other requirements of the Rental Licensing Program.

 

·         On January 12, 2004, we provided the Council with an update on the second year operation of the program.

 

·         In April, 2004, the Council received a report from students in the School of Government Masters of Public Administration Program regarding the effectiveness of the Rental Licensing Program.

 

DISCUSSION

 

The 2004-05 Inspections Department budget authorized costs of $75,000.00 for the Rental Licensing Program with expected revenues of $75,000.00. 

 

In April 2004, there were 7,620 units registered in compliance with the Rental Licensing Program.  As of January 10, 2005, licenses have been obtained for 7,353 and fees collected to date for those licenses total $73,530.00.  Late notices will be mailed to delinquent license holders in February 2005.

 

We believe that continued property record review, field survey, and reports by citizens provide an accurate inventory of rental units.  We continue to monitor public records, review advertising of rental units, and make field surveys.

 

RENTAL LICENSE RECORDS TOTALS

 

LICENSED

Owners

Rental Dwelling Units

June, 2003

774

7,508

January, 2004

812

7,840

*January, 2005

626

7,353

 

 * Figure prior to mailing delinquent notifications scheduled for February, 2005

 

COMPLAINTS REGISTERED 2002 THROUGH 2004

 

Inspections Department

Complaint Case Files

Per Calendar Year

Total*

Rental Specific

Percentage

specific to the

Rental Licensing Program

2002:  Year Prior to the Program

191

78

41%

2003

165

61

37%

2004

188

73

39%

* not including right-of-way signs removed 

 

CONCLUSION

 

On April 8, 2003, the Council, following the appointed Rental Licensing Task Force recommendations, upon adopting the rental licensing ordinance determined that it would appoint a committee in three years to evaluate the effectiveness of the complaint-driven program and determine whether to consider implementing a mandatory system of inspections for all rental units.  The Rental Licensing Program is scheduled to expire June 30, 2000, absent other action by the Council (see attached ordinance). 

 

We recommend that the Council adopt the attached resolution to establish a Rental Licensing Committee.  We also recommend inviting members of the original Rental Licensing Task Force that developed the program to participate again and to review the data collected on the Town of Chapel Hill Rental Licensing Program.  The Rental Licensing Committee would report to the Council in May 2005, their recommendation as to whether the program should continue or be abolished. 

 

ATTACHMENTS

 

1.      April 8, 2002, Council Adopted Ordinance Revising Chapter 9 of the Code of Ordinances to Establish a Program for the Licensing of Residential Rental Properties (p. 5).

2.      January 12, 2004, Council Update on the Rental Licensing Program (p. 16).

 

A RESOLUTION INITIATING A COMMITTEE TO REPORT ON THE EFFECTIVENESS OF THE RENTAL LICENSING PROGRAM (2005-01-24/R-6)

 

 

WHEREAS, on April 8, 2002, the Town Council enacted an ordinance revising Chapter 9 of the Code of Ordinances of the Town of Chapel Hill to establish a program for the licensing of residential rental properties; and

 

WHEREAS, the above ordinance includes that the program will expire June 30, 2005, barring further action by said Council; and

 

WHEREAS, at the time the Town Council enacted the rental licensing program, the Council determined that it would appoint a committee to evaluate the effectiveness of the program;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is directed to solicit applications for appointment to a Rental Licensing Committee, including inviting members of the original Committee that developed the program to participate again.

 

BE IT FURTHER RESOLVED that the Town Manager is directed to bring a proposed charge and timetable for this Committee to the Town Council on February 14, 2005, so that the charge can be adopted and appointments can be made in a timely manner.

 

BE IT FURTHER RESOLVED that the proposed timetable for discussions by and recommendations from this new Committee is as follows:

 

Committee begins meeting in March, 2005, and is requested to report to the Council in May, 2005.

 

This the 24th day of January, 2005.

 

 

 ATTACHMENT 1

 

Minutes from April 8, 2002 Council Meeting

Adoption of the Rental Licensing Ordinance

 

 

Assistant Town Manager Sonna Loewenthal said she was going to try to encapsulate four years of work by Loryn Barnes, Community Development Planner, and a year of work by Lance Norris, Director of Inspections, and eleven months by Maggie Bowers, Enforcement Officer.  She said the establishment of a rental licensing program began in 1998 with concerns regarding the effects on neighborhoods close to campus of the conversion or owner-occupied residence to rental properties and the impact on the quality of life for residents.  She said noise, front-yard parking, and overcrowding were often cited.  Ms. Loewenthal added that the Comprehensive Plan envisioned establishing a rental licensing program as an integral component of a broader approach to coordinate Town actions affecting the quality of life in existing neighborhoods, and to meet housing standards.  She said a multi-faceted strategy was recommended in the Comprehensive Plan to address these issues, including:

·        Enforce existing regulations;

·        Inform property owners and renters regarding these regulations;

·        Implement a rental licensing and inspection program to help maintain units in compliance with code requirements, to provide a mechanism for periodic inspection and enforcement of related regulations;

·        Initiate communications with student residents;

·        Develop design guidelines; and

·        Establish a “First Option Fund.”

 

Ms. Loewenthal said that the rental licensing program presented to the Council this evening would apply to all owners of rental units, with two exceptions:

·        If an owner were temporarily living out of Town and renting his/her unit with the intent of returning within twelve months.

·        For rental properties that are accessory apartments within owner occupied houses.

 

Ms. Loewenthal continued, stating the application would include:

·        Require owners to submit contact information, including the owner’s name, mailing address, fax, and telephone number.

·        Require annual certification from property owners that no more unrelated people live in a dwelling unit than is allowed by the Development Ordinance.

·        Require payment of an annual fee.

 

Rental Duties and Tenant Information:

·        The Town would distribute a Rental Duties Information Sheet to owners of rental property that would:

·        Describe the requirements of the Minimum Housing Code and include a copy of the code.

·        Describe the Town regulations regarding neighborhood parking, front-yard parking, the number of unrelated persons allowed to inhabit a single dwelling unit, the noise ordinance, regulations regarding solid waste collection, and regulating trash and debris and dilapidated vehicles, by which tenants would be expected to abide.

·        Provide suggestions regarding how to inform one’s tenants of these requirements.

·        Develop means of distributing information directly to tenants.

 

Creation of a Data Base

·        The information provided by applications would be organized into a data base that would be accessible through the Town’s website.

 

Ms. Loewenthal said a Fee Schedule would be set at $10 per unit, and after the first six months there would be a better sense of the number of rental units in Town. She said this would determine how much would be needed to collect in fees using a graduated fee schedule to cover program expenses. She said the $10 per month would pay for the program, which would be less than a dollar a month if passed on to the renters. She said this would generate the $92,000 for its budget for the coming year.

 

Proposed 1st year costs:

·        Zoning Enforcement Officer

·        Part-time Administrative Clerk

·        Temporary Contract Administrative Clerk (to set up data base)

·        Reserve for Legal Expenses

·        Database System Development (software)

·        Computer Equipment

·        Office Furniture

·        Vehicle Expense

 

Ms. Loewenthal said the staff proposed to hire personnel this summer (2002-2003) and use the first six months to develop a data base and educational materials and publicity.  She said the program would go into effect in January 2003, and after two full years of operation there would be a full evaluation of the program (January 2005) and an expiration date of June 30, 2005, which could be amended by the Council.

 

Ms. Loewenthal said that some disadvantages to the program were:

·        Diminishes the privacy of owners and agents of owners of rental units.

·        Requires landlords to spend time on paperwork and to pay a fee annually.

·        Requires Town to add one and one-half new position and to implement another program.

 

She said the advantages to owners, neighbors and tenants outweighed all the disadvantages, and the staff believed the program was worth evaluating.

 

Advantages:

·        Provides contact information for neighbors of rental units whose tenants do not comply with Town ordinance requirements.

·        Informs landlords of their responsibilities regarding the Minimum Housing Code and encourages compliance by requiring the owner’s annual affirmation that to the best of their knowledge their rental units meet that code.

·        Informs landlords of their responsibilities.  

·        Informs tenants of the Minimum Housing Code.

·        Informs tenants of their responsibilities to meet Town ordinances regarding residential parking permits, front yard parking, noise, residential garbage collection, limits on the number of unrelated people residing in one dwelling unit, dilapidated vehicles and accumulation of trash and debris.

·        Provides revenue to balance the costs of implementing the program.

·        Increases the likelihood that units meet the Minimum Housing Code.

 

Ms. Loewenthal said the staff believed it was worth trying.

 

Tracy Dudley, Housing and Community Development Advisory Board, requested that the Council grant exemption to the Chapel Hill Housing Department, which had supported the proposal not realizing that the Housing Department would have to pay for the privilege of doing what HUD and the Town already required them to do.  She said the fees were not known by the Planning Department, when the proposal was directed to the Housing Department.  Ms. Dudley said that she was surprised that fees would not be given to accessory apartments, but would be assessed to the Housing Department, for those people least able to pay.  She asked that the Housing Department be exempt from licensing fees.

 

Lee Conner, Rental Licensing Task Force member, said he would have no problem with exemption for the Housing Department.  He said the fee would not kill affordable housing in the Town, and the program would help the staff in coordinating enforcement efforts, and renters and landlords were being told what their responsibilities and their rights were.  Mr. Conner said that the landlords were running a business and would have to sacrifice some privacy, and the paperwork was not that much, and the program would pay for itself.  He said communication would help everyone.  Mr. Conner said that the assumption that if the landlord living at the rental house did not preclude anything bad happening was erroneous, and asked that the owner-occupied exemption not be allowed.

 

Lawrence Berry, regional property manager, and President of the Property Manager Association, speaking for the Association, asked that the Rental Licensing Program not be adopted.  There are 72,000 apartment homes in the market which are represented by the Association, he said, which has determined that these programs usually do not work.  He said there had been alternatives offered and these had been ignored, and he hoped that the Council would accept these offers from the professional managers.

 

Dorothy Bernholz, member of the Rental Licensing Task Force, said that the Task Force did include many landlords and considered fairly all the proposals offered, adding that she also was a landlord.  She said she spoke against the exemption of owner-occupied accessory apartments.  Ms. Bernholz said it was a business proposition, and the tenants should have the right to privacy.  She said everyone had to adhere to the Comprehensive Plan, whether in a large apartment complex or a private home.

 

Ruby Sinreich said the rental licensing fee proposal did provide for communication, which was missing at the present time, and a well-designed data base would provide for privacy.  She said the fees should be on a sliding scale, and random inspections should be allowed.  Ms. Sinreich said she felt the program would benefit the whole town.

 

Council Member Kleinschmidt said the privacy issue and the data base needed to reveal violators, not all renters in the Town.  He said he would be willing to go either way on owner-occupied rentals exceptions and that privacy should be protected.

 

COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY MAYOR PRO TEM EVANS, TO ADOPT RESOLUTION 10 WITH AN AMENDMENT TO #6 TO READ ”EXCEPT THAT THE FEES FOR RENTAL DWELLINGS AND UNITS OWNED BY THE TOWN OF CHAPEL HILL SHALL BE $0 PER RENTAL UNIT.”

 

COUNCIL MEMBER STROM OFFERED A “FRIENDLY” AMENDMENT FOR REMOVAL OF 1D FOR ACCESSARY APARTMENTS.

 

He said the standard was the exchange of money.

 

The “friendly” amendment was not accepted by Mayor pro tem Evans, the seconder.

 

COUNCIL MEMBER STROM MOVED, SECONDED BY COUNCIL MEMBER WIGGINS, TO ADOPT AN AMENDMENT TO RESOLUTION 10 TO REMOVE 1D.

 

Mayor pro tem Evans said the exception needed to be included because it was a huge issue of privacy and there was no handle of how many accessory apartments there were in Town, but they usually happen in larger homes.  She said she supported the exemptions of accessory apartments and if this did not work in the future it could be changed.

 

Council Member Bateman said she would support the exemption and would not support the amended resolution.

 

Council Member Ward said the accessory apartments were good for the Town and he wanted to know if there were ways that the Town could limit exposure as a landlord.  Mr. Karpinos said the information gathered in the Inspections Department is a matter of public record

 

Council Member Verkerk asked if the large apartment complexes were the culprits and part of the problem.

 

Ms. Bernholtz said that all of the rental properties had some problems, and even if the apartments were professionally managed, there were still problems and one could not generalize.

 

Council Member Verkerk asked if public access to the Town’s data base was made for violations of other ordinances.  She asked if the Town advertised violators of other ordinances.  Ms. Bernholtz said the Task Force relied on the current Housing Code which requires the Housing Inspector to keep a data base of those houses that are not in compliance, but that does not happen now because the Town could not afford it.  Mr. Horton said the only information that would be posted, other than basic information, would be whether or not the owner complied with the minimum Housing Code, which would be done only if the owner had refused to comply after being notified.  Mr. Karpinos said the information about any ordinance is a matter of public record and violations could be checked by any one interested.  He said these other violations were not posted on the web at this time.

 

THE MOTION WAS ADOPTED BY A VOTE OF 5-4, WITH MAYOR FOY, COUNCIL MEMBERS KLEINSCHMIDT, STROM, VERKERK AND WIGGINS VOTING AYE, AND MAYOR PRO TEM EVANS, COUNCIL MEMBERS BATEMAN, HARRISON, AND WARD VOTING NAY.

 

 

 

A RESOLUTION ESTABLISHING GUIDELINES FOR A RENTAL LICENSING PROGRAM (2002-04-08/R-10)

 

WHEREAS, the Town’s Comprehensive Plan adopted 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”; and

 

WHEREAS, on June 12, 2000, the Council charged the Rental Licensing Task Force to provide the Council with recommendations about whether to enact a system of licensing the rental of dwelling units in Chapel Hill, and what form such a system would take; and

 

WHEREAS, on March 26, 2001, the Rental Licensing Task Force presented recommendations for the Council’s consideration; and

 

WHEREAS, on January 23, 2002, the Council held a public hearing to receive citizen comments on a proposed rental licensing program;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the following guidelines are established for a rental licensing program:

 

1.      The operator and/or owner/operator of every dwelling, dwelling unit, or rooming unit leased for consideration shall be required to obtain a rental license. 

a.       Each rental license must be renewed annually.

b.      Each rental license fee must be paid annually.

c.       Exception: If an owner was temporarily living out of Town and renting his/her unit with the intention of returning within twelve months.

2.      The Town Code will be amended to include a rental licensing ordinance.

3.      An Application Form must be completed by all owners of rental properties.

4.      The Town will make available a Rental Duties Information Sheet to owners of rental property.

5.      A database will be created to include all of the information obtained from the applications that would track complaints.

6.      For the period of January 1, 2003 through June 30, 2003, the fee for a rental license will be $10 per rental unit; except that the fee for rental dwellings and units owned by the Town of Chapel Hill shall be $0 per rental unit. 

7.      In two years, the Council will appoint a committee to evaluate the effectiveness of the program.

 

This the 8th day of April, 2002.

 

 

Council Member Bateman asked if the Task Force had talked about the consequences for people who were consistently out of compliance, by putting them in the data base and that they would not be able to renew their license.

 

Council Member Strom said it had been talked about quite frequently and the fine system would put some teeth into the ordinance.

 

Council Member Wiggins said she would not want to close a rental business, but would like to see some work done to bring the property into compliance.

 

Council Member Strom said that given the fact that the program would be reviewed in two years, the program would be changed and adjusted as the program went along.

 

Mayor pro tem Evans asked if the citations for noise and other abuse would be for administrative use, so would not be included.  Mr. Horton said ordinarily the noise ordinance would be used for somebody on the property and the owner would not have to be cited.

 

Mayor pro tem Evans said she hoped that the only things put on the web site would be violators, but that non-compliance of the Housing Code would be on the site.

 

Council Member Wiggins said when the committee began, it was largely by neighbors complaining about renters, and the committee included members of the University. She said the committee realized that there could also be improved living for renters. She said by exempting owner-occupied rental units it would not give the renters the same assurance.  She said there were many instances of violations.

 

COUNCIL MEMBER KLEINSCHMIDT MOVED, SECONDED BY COUNCIL MEMBER WARD, TO ADOPT ORDINANCE 3, WITH AN AMENDMENT TO #3 (D), WHICH WOULD REMOVE “AN ELECTRONIC COPY” AND READ “AND A HARD COPY RECORD OF THE REGISTRATION. . .”

 

Council Member Bateman said she believed this was one of the strengths of the Ordinance, and would enable the neighbors to have it accessible in order to hold landlords responsible.

 

Council Member Kleinschmidt said he felt he needed to stand up for the renter’s privacy, and there just needed to be compliance to the Housing Code.

 

Council Member Strom said a renter would not be listed. He said the standard was the exchange of money to keep the landlords in the system to keep track of and to enforce the codes.

 

Council Member Wiggins said she could access the information regarding the owners on the GIS, and she asked if additional information was necessary. She said there was a lot of information available to the public.

 

Council Member Kleinschmidt said the problem was an enforced, Town-maintained Apartment Guide.  He said the calls would have to be made to the renters for trash, cars, noise, and the other violations.  Mr. Horton said the critical point of not keeping an electronic copy would not be possible in this day, because it would involve hand typing and paper work.

 

Mr. Karpinos said the proper way would be to add the language in 3 (d) “To keep an electronic copy (not available via the internet), and a hard copy record of the registration…” He said the information would be kept electronically, but not on the internet.

 

THE MOTION WAS ADOPTED AS AMENDED BY THE ATTORNEY’S LANGUAGE, BY A VOTE OF 6-3, WITH MAYOR FOY, MAYOR PRO TEM EVANS, HARRISON, KLEINSCHMIDT, WARD, AND WIGGINS VOTING AYE, AND COUNCIL MEMBERS BATEMAN, STROM, AND VERKERK VOTING NAY.

 

 

 

COUNCIL MEMBER WARD MOVED, SECONDED BY COUNCIL MEMBER KLEINSCHMIDT, TO ADOPT ORDINANCE 3 WITH A SECOND AMENDMENT TO 2 (B), WITH THE DELETION OF #2. THE MOTION WAS ADOPTED 8-1, WITH MAYOR FOY, COUNCIL MEMBERS BATEMAN, HARRISON, KLEINSCHMIDT, STROM, VERKERK, WARD, AND WIGGINS VOTING AYE, AND MAYOR PRO TEM EVANS VOTING NAY.

 

Council Member Harrison said he had been a renter for many years, and he supported the ordinance.

 

Council Member Ward asked how long the name would be posted on the internet as a violator. Mr. Horton said once the violation was cited and corrected, the name would be removed.

 

ORDINANCE 3, AS AMENDED, WAS ADOPTED BY A VOTE OF 6-3, WITH MAYOR FOY, MAYOR PRO TEM EVANS, COUNCIL MEMBERS HARRISON, KLEINSCHMIDT, WARD AND WIGGINS VOTING AYE, AND COUNCIL MEMBERS BATEMAN, STROM, AND VERKERK VOTING NAY.

 

 

AN ORDINANCE REVISING CHAPTER 9 OF THE CODE OF ORDINANCES OF THE TOWN OF CHAPEL HILL TO ESTABLISH A PROGRAM FOR THE LICENSING OF RESIDENTIAL RENTAL PROPERTIES (2002-04-08/O-3)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:

 

Section 1.  Findings and Purposes.

 

The Town Council does hereby find that:

1)                             A systematic method of collecting information on leased property would assist the Town, residents of rental properties, owners of rental properties, and owners/residents of non-rental properties in the exchange of information pertaining to the requirements of the Chapel Hill Housing Code, other regulations of the Town and the State affecting rental properties, and the names of owners or managers of rental properties where there appear to be infractions of code standards.    

2)                             It would be consistent with the public health, safety and welfare and would be a benefit to all Town citizens to require the licensing of persons who lease any dwelling, dwelling unit, and/or rooming house that is subject to regulation under the Chapel Hill Housing Code.

3)                             A licensing program for rental residential properties would facilitate the enforcement, on a complaint basis, of the minimum standards of fitness for housing by requiring the dissemination of information on the Minimum Housing Code to residents.

4)                             The maintenance and offering for rent of residential properties is a business activity which is subject to regulation by the Town in order to promote the public health, safety and welfare, in particular, the health, safety and welfare of residents of the rental residential properties and of residents of other properties surrounding rental residential properties. 

5)                             An enhanced program of enforcement of the minimum housing code through implementation of a rental licensing program would promote the public health, safety and welfare.  .

 

Section 2.  Chapter 9, Articles I and II, of the Town of Chapel Hill Code of Ordinances are revised by making the following amendments:

 

      1.  Section 9-1 Finding; purpose. is hereby revised by adding a third paragraph to read as follows:

 

“In order to establish and facilitate the enforcement of minimum standards of fitness for the initial and continued occupancy of all rental housing, this chapter establishes a system of rental licensing for all dwellings, dwelling units, and/or rooming houses leased for consideration.”

 

2.      Section 9-15. Duties of building inspector. is hereby revised by deleting the current paragraph (c) which reads as follows:

 

“(c) To keep a record of the results of inspections made under this chapter and an inventory of those dwellings that do not meet the minimum standards of fitness herein prescribed; and”

 

and replacing it with the following language: 

 

“ (c) To keep an electronic and hard copy record accessible via the Internet and by the public upon demand of the results of inspections made under this Chapter and an inventory of those dwellings that do not meet the minimum standards of fitness prescribed herein; and”

 

3.  Section 9-15. Duties of building inspector.  is hereby revised by adding the following additional paragraphs:

 

“(d)To keep an electronic copy (not available via the internet), and a hard copy record of the registration of all licensed operators and operator/owners of all dwellings, dwelling units, and rooming units that are leased for consideration that will contain the following information:

 

(1)     The identification of the dwelling unit by location;

(2)     The name, address, fax and telephone numbers of the owner and operator (if applicable) who has charge, care or control of a building or part thereof in which the dwelling units are leased for consideration;

(3)     An acknowledgement  by the licensee that he has complied with Sec. 9-3 of the Chapel Hill Housing Code;

(4)     An acknowledgment by the licensee that he has provided each occupant of a dwelling unit with a Rental Duties Information Sheet provided by the Town of Chapel Hill;

(5) An acknowledgement that the dwelling unit is in compliance with the limits in the Chapel Hill Development Ordinance on the number of unrelated individuals.

  

(e) To provide each licensee with two (2) copies of a Rental Duties Information Sheet containing the following information:

 

(1)    A recital of the duties imposed upon landlords and tenants pursuant to the North Carolina Residential Rental Agreements Act;

(2)   Information regarding Town of Chapel Hill policies and ordinances relevant to trash collection, noise control and parking;

(3)   Information regarding the option of resolving any dispute prior to filing a complaint with the Town of Chapel Hill through mediation conducted by the Chapel Hill Dispute Settlement Center.”

 

(f) To provide each licensee with a copy of the Chapel Hill Minimum Housing Code. 

 

4.      Section 9-15, current subparagraph (d) is renumbered as paragraph (g).

 

5.      A new Section 9-18 is hereby added to read as follows:

 

“Sec. 9-18.  License required for Leased Residential Properties.

 

(a)  The operator of every dwelling, dwelling unit, or rooming unit leased for consideration shall pay an application fee in accordance with the schedule of fees adopted by the Chapel Hill Town Council for each fiscal year, based on the criteria established in that schedule, to obtain a license to comply with the duties imposed pursuant to Sec. 9-3 of the Chapel Hill Housing Code and each person so licensed shall provide the following information to the building inspector:

(1) The identification of the dwelling unit by location;

(2) The name, address, telephone and fax number of the operator and/or owner/operator who has charge, care or control of a building or part thereof in which the dwelling units are leased for consideration;

(3) An acknowledgement by the licensee that he has complied with Sec. 9-3 of the Chapel Hill Housing Code;

(4) An acknowledgment by the licensee that he has provided each occupant of a dwelling unit with a Rental Duties Information Sheet provided by the Town of Chapel Hill.

(5) An acknowledgement that the dwelling unit is in compliance with the limits in the Chapel Hill Development Ordinance on the number of unrelated individuals. 

 

            (b)  Notwithstanding the foregoing paragraph 9-18 (a), a license shall not be required for the rental of property under the following condition:

                        1.  The temporary rental of an owner’s principal dwelling for a period of one year or less while the owner is temporarily living out of Town. (The purpose of this exemption is to accommodate, for example, faculty of the University who have left Town on sabbatical with the intent of returning to their home within a year.)

                 

6.      Section 9-37 is hereby revised as follows:

 

A.      By adding (a) at the beginning of the first paragraph.

 

B.     By inserting a new second paragraph to read as follows:

 

            “(b)  It shall be unlawful for an operator and/or owner/operator of any dwelling unit, dwelling, or rooming unit leased for consideration to fail to obtain a license as provided by Sec. 9-18 of this Chapter.”

 

            C.  By adding (c) at the beginning of the next (now third) paragraph.

 

D.     By changing the period at the end of the third paragraph to a semi-colon and adding the following language:

 

 “provided, however, that for the first year after the effective date of the “Ordinance to Establish a Program for the Licensing of Residential Rental Properties,”(Ordinance No. 2002-4-8/O-3) , an owner/operator of any unlicensed rental property or properties who, within 30 days of notice of violation of 9-37(b), obtains the required license(s) and pays  a fee equivalent to twice the otherwise applicable fee for the license(s) under Sec. 9-18  shall not be subject to additional penalties for failure to obtain the required license(s).”  However, if the required license(s) is/are not obtained before the expiration of this 30 day time period, an owner/operator shall be subject to other penalties and fines as provided by this Chapter.”

 

a.       By adding a new fourth paragraph to read as follows:

 

            “(d) The violation of any provision of this Chapter shall also subject the offender to a civil penalty of fifty dollars ($50.00).  Each day that any violation continues shall constitute a separate violation and a separate offense for the purposes of imposition of penalties.  In addition to the penalties and other remedies provided, the Town Manager may institute any appropriate action or proceedings to prevent, restrain, correct or abate a violation of this Chapter.”

 

Section 3.  This Ordinance shall be effective January 1, 2003 and shall expire June 30, 2005.

 

This the 8th day of April, 2002.

 

 

ATTACHMENT 2

 

AGENDA #5b

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Update on the Rental Licensing Program

 

DATE:             January 12, 2004

 

 

The purpose of this memorandum is to provide the Council with a status report on the Rental Licensing Program. 

 

BACKGROUND

 

 

 

 

 

 

 

 

 

 

DISCUSSION

 

The 2003-04 Inspections Department budget authorized costs of $75,000 for the Rental Licensing Program with expected revenues of $75,000. 

 

In May 2003 there were 7,508 units registered in compliance with the Rental Licensing Program; license fees totaled $77,000.  As of December 30, 2003 licenses have been renewed for 6,678 and fees collected to date total $66,783.00.  Late notices will be mailed to delinquent license holders January 15, 2004.

 

We believe that continued property record review, field survey, and reports by citizens provide an accurate inventory of rental units.  We continue to monitor public records, advertising of rental units, and make field surveys, and believe that the number of rental units will change little except as units are constructed, converted, or demolished.

 

RENTAL LICENSE RECORDS DETAIL TOTALS

 

  Billed Owners November ‘03

805

Owners (Jan. 7, 2004)

812

Billed Dwelling Units November ‘03

7,508

Dwelling Units (Jan. 7, 2004)

7,840

Dwelling Units Paid/Licensed  (Jan. 7, 2004)

6,678

 

 

The table below displays the types and numbers of complaints received by the Inspections Department, including those that are rental housing specific, during the first year that the Rental Housing Program has been in operation.

 

 

RESIDENTIAL COMPLAINTS RECEIVED JULY 1, 2002–JUNE 30, 2003

 

Inspections Department

Complaint Classification

Total

Rental Specific

Percentage specific to Rental Licensing Program

Private Property

77

42

54%

Zoning

42

14

33%

Signs

310

208

67%

Total

429

264

62%

 

CONCLUSION

 

The Rental Licensing Task Force recommended that the Council reconvene the Task Force in three years to evaluate the effectiveness of the complaint-driven-program and determine whether to consider implementing a mandatory system of inspections for all rental units.  The Rental Licensing Program is scheduled to expire June 30, 2005, absent other action by the Council.  We have contacted the UNC Master of Public Administration Program and submitted a proposal to request that a group of students evaluate the effectiveness of the Rental Licensing Program.  If the Rental Licensing evaluation proposal is accepted the results of the students’ study will be available to Council prior to our next status report in January 2005.

 

ATTACHMENTS

 

  1. April 8, 2002 Recommendations for the Rental Licensing Program (p. 4).
  2. June 23, 2003 update on Rental Licensing Program (p. 30).
  3. August 25, 2003 Memorandum to Council (p. 33).