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Implementation was funded with general fund money and cost approximately $120,000, over three years (approximately $40,000 per year). The code has been in effect for about two years. Corvallis has approximately 10,500 rental units. The Corvallis Housing Code covers four habitability standards: structural integrity, plumbing, heating, and weatherproofing. It is important to note that the Corvallis code does not cover some of the issues that have been raised in the press lately, such as peeling paint, mold or vermin. If the City Council chooses to include such additional items, the result would be an extended time frame for implementation and a more expensive program likely involving more legal review and support. In addition, these types of issues are much more difficult to evaluate and enforce. The State Residential Landlord and Tenant Act does not cover conditions like mold, peeling paint, or vermin. In order for the City of Corvallis to investigate a complaint about habitability standards regulated by the Housing Code, a number of criteria must be met. The complainant must be a tenant and have a current rental agreement. The tenant also has to supply documentation that he or she has informed the landlord of the situation and has given the landlord 10 days to correct the problem prior to filing the complaint with the city. The program is funded with rental housing fees, currently $8 per unit per year, which funds .75 FTE of a housing program specialist. That specialist handles an estimated 35 calls a month about housing standards and investigates an average of 12 cases per year. Most of the housing specialist's time is spent talking to tenants and landlords, providing public outreach and coordinating with legal services at Oregon State University. When the program began about two years ago, staff anticipated the majority of calls would be from students. The first year that was the case with approximately 55 percent of the calls coming from students and 45 percent from non- students. Now, two years into the program, those numbers have changed. So far this fiscal year, 25 percent of the calls are from students, 22 percent from landlords, and 53 percent from non-student renters. Timing If the council directs staff to move forward with development of a new housing program, a supplemental budget for FY05 would need to be prepared in the fall. OPTIONS Staff is seeking direction on whether to proceed with development of a housing code. The council has several options: 1. Direct staff to develop a housing code and housing program modeled after Corvallis's Housing Code. 2. Direct staff not to do any additional work on pursuing a housing code in Eugene. 3. Provide direction on alternatives. For example, funding alternative programs such as mediation services. Assuming a housing program has the potential to be self-supporting over time, initial seed money from the General Fund would be needed to implement the program in Eugene until a stable fee base is established, as was the case in Corvallis. Other communities, such as Portland, use a combination of general fund, fine revenues, and fees to support housing programs. In implementing the Corvallis program, City of Corvallis staff required nearly three years to adopt standards, compile databases for owners and tenants, conduct public outreach, organize staffing and L:\CMO\2004 Council Agendas\M040524\S040524B.wpd