AGENDA #11

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Suggested Process for Rental Licensing Discussion

DATE: March 27, 2000

This memorandum suggests a process for continuing community discussion of a Rental Licensing proposal.

BACKGROUND

On February 9, 2000, the Council conducted a Work Session on the topic of establishing a Rental Licensing requirement. The Council received a staff report introducing the topic and outlining options, then heard from citizens in attendance, then discussed the issues that had been raised. At the conclusion of the Work Session the Council asked the Town Manager to bring back a report in March suggesting possible next steps in this dialogue. A copy of our February 9 memorandum is attached.

At the hearing a group of students and landlords presented a set of ideas. The group had formed informally to discuss issues related to the rental of dwelling units in Chapel Hill, and offered a proposal as an alternative to Rental Licensing.

Exploration of the feasibility of a Rental Licensing program is one of the recommendations in the draft Comprehensive Plan. (Please see related item on tonight’s agenda) The Council, in calling the February Work Session, had decided to begin discussions now rather than wait for final action on the Comprehensive Plan.

It was clear from the Work Session, both from citizen comments and from Council discussion, that there is no immediate consensus regarding whether or not to pursue this idea, or in what form to pursue it. The informal Student-Landlord group announced its intention to meet again to discuss a proposed alternative to Rental Licensing, and the Council directed the Town Manager to provide logistical support in setting up this meeting. That group met on March 3, 2000.

PROCEDURAL SUGGESTION

We note that the circumstances surrounding discussion of this idea resemble, in many respects, the circumstances surrounding Council consideration of Home Occupation regulations a few years ago. We believe that the model used for community discussion in that situation was successful, and may be applicable again now.

In that case, the Council asked two of its members to convene a Work Group. The Council also invited citizens to apply for appointment to this time-limited Work Group, and the Council members served as co-chairs. Initially, Town staff provided logistical support. Facilitation of discussion was provided, under contract, by the Dispute Settlement Center. After a series of meetings, Town staff took the assembled ideas and structured them in the form of an ordinance that was then presented to the Council.

We believe a similar effort could be productive here. We suggest that a Work Group be assembled to discuss the Rental Licensing proposal, along with the alternative proposal that has been put forward by the Student-Landlord group. We would suggest a “focus-group” format for initial meetings. Steps in assembling this Work Group would be as follows:

March 27: Council directs that process be initiated; applications for appointment to Work Group are solicited through newspaper ads and mailings.

April 24: Council appoints Work Group, including 2 Council members to serve as co-chairs; Council adopts resolution with charge and timetable, and authorizes funds for a facilitator.

Appointees to Work Group should represent a variety of points of view on this issue; membership should include but not be limited to:

Students Homeowners in key neighborhoods

Landlords Renters in key neighborhoods

Real Estate Professionals Managers of large apartment projects

Historic District Commission Representatives of small apartment owners

University Representatives

Timetable would call for a series of 4 meetings: in May, June, September, and October. A report could be presented to the Council with recommendations in November.

We would suggest that the change to this Work Group be (1) to compile a list of the issues and concerns that have been raised; (2) to develop a list of ideas and options for actions that could address the concerns; and (3) to make recommendations to the Council.

We note that, at the last Town Council meeting on March 20, Council members asked for a listing of all major projects for which the Council has requested staff work this spring. (This request was made in the context of a desire to have additional staff work on affordable housing before summer break). In keeping with this desire for work on affordable housing initiatives, an alternate timetable might be for this Rental Licensing Work Group to begin work in September rather than in May.

RECOMMENDATION

We recommend that the Council adopt the attached resolution, initiating a Rental Licensing Work Group. We offer two possible timetables for the Council’s consideration:

(1) Start in May, report to Council in November;

(2) Start in September, report to Council in February.

ATTACHMENTS

February 9, 2000 Manager’s Memorandum (with attachments)

A RESOLUTION INITIATING A COMMUNITY DISCUSSION ON RENTAL LICENSING (2000-03-27/R-22)

WHEREAS, the Town Council has indicated its interest in establishing a Rental Licensing requirement for Chapel Hill; and

WHEREAS. this topic would benefit from community discussion of advantages, disadvantages, and alternatives;

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 Work Group.

BE IT FURTHER RESOLVED that the Town Manager is directed to bring a proposed charge and timetable for this Work Group to the Town Council on April 24, so that the charge can be adopted and appointments can be made.

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

(1) Work Group begins meeting in May 2000, and is requested to report to the Council in November, 2000.

- or -

(2) Work Group begins meeting in September 2000, and is requested to report to the Council in February, 2001.

This the 27^th day of March, 2000.