AGENDA #5b

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Update on the Rental Licensing Program

 

DATE:             June 23, 2003

 

The purpose of this report 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 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 to establish a program for the licensing of residential rental properties. Please see Attachment 1: Recommendations for the Rental Licensing Program.

 

DISCUSSION

 

The 2002-03 Inspections Department budget authorized costs of $92,300 for the new Rental Licensing Program with expected revenues of $90,000-$100,600. The Council authorized a full-time code enforcement officer position and a part-time administrative clerk position to assist operating the program. 

 

We have limited costs in 2002-03 to remain within revenues; costs for 2002-03 are expected to total $68,000 and revenues $77,000.  Revenues are lower than originally estimated, because the number of rental units is lower than originally predicted.  For 2003-04, the budget authorizes $75,000 in expected revenues and we will limit costs to remain within expected revenues.

 

Based on the 2000 census, we estimated the number of rental units to be between 9,000 and 10,000.  As of May 5, 2003, 7,508 units have been registered in compliance with the Rental Licensing Program; licenses and late fees collected total $77,000. 

 

We believe that a combination of property record review, field survey, and reports by citizens has provided an inventory of rental units that is more accurate than the estimate made on the basis of census data.  We will continue to monitor public records, advertising of rental units, and make field surveys, but believe that the number of rental units will change little except as units are constructed, converted, or demolished.

 

RENTAL UNITS

 

Rental License Records Detail	Total
Licensed Owners	774
Rental Dwelling Units	7,508

 

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

 

COMPLAINTS

 

Inspections Department Classification	2nd & 3rd Quarter ‘01-‘02   Total	2nd & 3rd Quarter ‘01-‘02   Rental Specific	Percentage specific to Rental Licensing Program
Private Property (Minimum Housing/ Weeds/ Trash/ Debris/ Dilapidated Vehicles)	19	14	74%
Zoning (business use of residential property, etc.)	39	20	51%
Signs (including right-of-way)	194	125	61%
Total	252	159	61%

The program has been operating during a period of time when the Department customarily receives the fewest Housing and Town Code complaints. Most annual residential leases begin and end in August, and most residents move out in May.  The typical Housing Code complaints are related to trash and debris in yards, abandoned and dilapidated vehicles, high grass and weeds, and deficient building conditions.  The Inspections Department receives the bulk of its complaints related to the Housing Code, during May, June, July, and August.

 

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 will make another status report in January 2004.

 

ATTACHMENTS

 

1. April 8, 2002 Recommendations for the Rental Licensing Program (p. 4).