Admin Order 53-22-08-F -- Amended Rental Housing Code Fee

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Exhibit B to Administrative Order No. 53-22-08-F Findings -- Page 2 of 5 d) The revenue needs of the city as determined by the adopted city budget Response: The FY23 budget was reviewed through public process and approved by Council prior to Council’s direction to amend the Rental Housing Code and, as such, only contained allocation for the historic program costs. There is insufficient funding or revenue at the current fee to support this expansion, necessitating a fee change. Conclusion Council’s adoption of Ordinance No. 20670 on July 11, 2022 amending the Rental Housing Code is anticipated to add significant cost to address the new code requirements. The proposed $10 increase would increase revenue to offset the costs related to expanded services. RESPONSES TO PUBLIC COMMENTS ● One commenter noted that the proposed fee adds about $1 per month to break even and asked if tenants welcome the additional cost. Response: The $10 increase to the annual fee (for a total annual fee of $20 per unit) equates to approximately an additional $0.84 per month per unit. Tenants and tenant advocates spoke in favor of the increase in the fee to pay for the new services at the June 21, 2022 public hearing on Ordinance 20670. No changes are being made to the fee order as a result of this comment. ● Four commenters stated they object to the increased fee. They stated they do not believe that landlords should be paying for public services to support low-income and very-low-income residents. They commented that they should not be responsible for the minority of citizens who need special assistance with housing. The commenters said the City should be supporting landlords and requested that the City increase supply by encouraging and incentivizing builders to build new supply. One of these commenters requested that the door fee be abolished as the commenter believes that it is a slush fund to police and punish decent property owners. Response: The services provided by the increase in the fee will support tenants and landlords and will include a new Rental Housing Navigator position within the Planning and Development Department, expanded enforcement through the rental housing code program in Building and Permit Services, and tenant/landlord support programs such as a tenant hotline, risk mitigation funding, and eviction diversion. The Housing Navigator position is a critical component of realizing the current needs for improved local rental housing data metrics; coordinating with local organizations to strengthen opportunities for persons with disabilities to access rental housing; collaborating with code enforcement; providing simplicity, efficiency, and options for tenants and landlords; and overseeing the success of the renter protections program areas. The Housing Navigator position will provide services to both landlords and tenants by serving as a subject matter expert on landlord tenant relationships. The position will develop resources and training materials designed to provide information on the local rental housing code, statewide legislation,