Item 5: Ordinance on Rental Housing Code

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Rental Housing Standards; Amending Section 8.425 of the Eugene Code, 1971; and Repealing Section 5 of Ordinance No. 20239 Meeting Date: May 19, 2008 Agenda Item Number: 5 Department: Planning and Development Staff Contact: Rachelle Nicholas www.eugene-or.gov Contact Telephone Number: 682-5495 ISSUE STATEMENT The proposed amendments would add mold, security and smoke detectors to the rental housing standards and remove the program sunset provision. BACKGROUND The Eugene Rental Housing Code was adopted by the council in 2004. 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 Rental Housing Code currently addresses four areas of habitability: structural integrity, plumbing, heating and weatherproofing. At the October 8, 2007, work session, council provided direction to add mold, security, and smoke detectors to the ordinance and remove the sunset provision. The ordinance is currently scheduled to sunset December 31, 2008. Program Overview The code provides a service to Eugene residents not provided by any other agencies. In the absence of the rental housing code there are few options for tenants to achieve resolution of repair disputes. One option is to sue the landlord in Circuit Court to obtain a court order. If an owner fails to make a repair in accordance with a court order the tenant would have to return to court to enforce the court order. The court process can delay dispute resolution and may increase attorney costs and court fees. Funding The program is funded with a $10 fee assessed annually for each dwelling unit. The number of units and corresponding revenue varies each year. We anticipate over-collecting approximately $59,000 in unit fees before enhancements. In previous years the program has collected approximately $16,500 in late fees. The Rental Housing Code Program budget has not been developed with dependence on late fee revenues and anticipates a significant reduction in late fees. Staff is implementing administrative changes to the program to provide additional notice and opportunity to pay. Staff received two questions during the April 23 work session. The first question was in regards to the City’s liability as a result of including regulation of mold in the City's rental housing code. A response to this question is attached (Attachment C). The second question was regarding the potential of reducing the unit fee from $10 to $8. With no changes to the program, an $8 per unit fee would over-collect by approximately $4,000. Late fees are in addition to this amount. A brief unit fee comparison is attached (Attachment B). Y:\CMO\2008 Council Agendas\M080519\S0805195.doc