Item C: Rental Housing Code Program Update

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Rental Housing Code Program Update Meeting Date: October 8, 2007 Agenda Item Number: C Department: Planning and Development Staff Contact: Rachelle Nicholas www.eugene-or.gov Contact Telephone Number: 682-5495 ISSUE STATEMENT This work session provides an opportunity for the Mayor and City Council to review the first two years of the Rental Housing Code program and direct staff on the future of the program. BACKGROUND The Eugene Rental Housing Code was adopted by the City Council in 2004. The City of Eugene has not had a housing code since 1983. The code is modeled after a housing code in place in Corvallis. The purpose of the Rental Housing Code is to provide minimum habitability criteria to safeguard health, property and public well-being of the owners, occupants and users of the rental housing. The ordinance is currently scheduled to sunset December 31, 2008. Funding The Rental Housing Code Program is funded with a $10.00 per rental unit fee paid each year. There were 5,188 parties responsible for 27,602 units identified during the first year of the program and 5,167 parties responsible for 27,365 in the second year. Program revenue has supported expenses for fiscal year 2006 and fiscal year 2007. (See Attachment A for financial details.) Bills are sent out at the beginning of each fiscal year. If payment is not made within 30 days, a $20 late penalty is applied to the account. This continues on a 30-day cycle until the account with the cumulative late penalties is forwarded for collections by an outside agency to close out each fiscal year. There were 52 accounts flagged for collections for fiscal year 2006. Staff continually updates the database as they track a significant number of changes in ownership and management of properties. Program Overview The Rental Housing Code addresses four areas of habitability: structural integrity, plumbing, heating and weatherproofing. Dangerous buildings (e.g., faulty electrical systems) are dealt with through existing Eugene administrative rules and authority. Staff in the Rental Housing Program has been responding to inquiries and complaints since the program went live July 1, 2005. During the first two years of the program staff logged 4,541 telephone calls. Of those, 815 callers were identified as tenants. The Rental Housing Code prescribes a process that ensures a renter notifies the owner of their concerns before they may file a complaint with the City. When an issue is not resolved by the owner after he or she receives notice from a tenant, a complaint may be made to the City. In two years there have been 78