HomeMy WebLinkAboutItem 4 - PH on Housing StandardEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Public Hearing: An Ordinance Concerning Rental Housing; Adding Sections 8.400,
Through 8.440, and Section 8.995 to the Eugene Code, 1971; and Providing for a
Delayed Enforcement Date
Meeting Date: November 8, 2004 Agenda Item Number: 4
Department: Planning and Development Staff Contact: Marsha Miller
www. cl. euget~e, or. us Contact Telephone Number: 682-5224
ISSUE STATEMENT
This is a Public Hearing to consider an ordinance that would adopt rental housing standards in the city of
Eugene. The Public hearing provides an opportunity for Council and the public to review the proposed
City Rental Housing Code and provide direction to staff.
BACKGROUND
In 1983, the City Council eliminated Eugene's Housing Code and Housing Program as part of large
budget cuts in the organization. In 1994, the council directed staff to prepare a scoping report on general
housing conditions in Eugene. In March 1995, the scoping report was presented to the council. In June
1995, the council directed staff to establish a department advisory committee to develop a housing code.
In February 1996, the council requested a delay of the housing code work due to staff work load.
In July 1996, the council directed staff to prepare an ordinance adopting the State housing code on an
interim basis. In November 1996, the council directed staff to continue work with the department
advisory committee and expand the scope of the project to include tenant behavior. A draft housing
code was presented to the council in November 1997 that included three options for adoption and
implementation. The council referred the issue to the Council Committee on Infrastructure and Planning
Services (CCIPS). In June and September 1998, the CCIPS discussed options for a housing code and
determined there was no funding available to adopt housing standards.
On May 24, 2004, the council held a work session to review existing code provisions related to housing.
The council directed staff to create draft ordinance language similar to Corvallis and schedule a work
session prior to summer break. On August 11, 2004, the council held a second work session to review
the draft ordinance and directed staff to proceed with setting a public hearing.
RELATED CITY POLICIES
Should the City of Eugene adopt local housing standards for rental properties in the City of Eugene?
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The City Council goal that relates to this issue is: Healthy Natural and Built Environment - A
community that conserves and enhances the natural environment and provides an attractive and healthy
place to live.
COUNCIL OPTIONS
The council can provide direction on one or more of several options:
1. Adopt the City Rental Housing Code as presented.
2. Suggest changes to the drafted City Rental Housing Code.
3. Direct staff to prepare a supplemental budget request to fund a rental housing program.
4. Provide direction on alternatives.
Public Input
Many community members have submitted comments regarding this issue. Copies of the
correspondence can be viewed in the Council Office.
Funding
Assuming a housing program has the potential to be self-supporting over time, initial seed money from
General Fund resources would be needed to implement the program in Eugene until a stable fee base is
established, as was the case in Corvallis. In order to fund the program at the level we are anticipating, a
$10/unit per year fee is proposed. General Fund resource needs would be dependent on implementation
options.
Timing
If the council takes action on November 22, 2004, to adopt the City Rental Housing Code, a
supplemental budget for FY05 would need to be prepared in early 2005 unless the Council wants to
incorporate the program implementation funding package into the FY06 budget process and begin the
program in July 2005.
If the council adopts a rental housing code, staff would propose phasing implementation. Phase 1 could
include program start-up and collection of fees from multi-family units only. Multi-family units are
easier to identify, which could allow a program to be implemented as early as July 2005. Enforcement
would begin during Phase 1
Phase 2 could expand the program to include fees for single-family dwelling units which are more
difficult to identify as rental units. The funding mechanism for single-family dwellings will take longer
to establish. The information below outlines the implementation of a housing program for Eugene:
FY05 FY06 FY07 and beyond
Jan-Jun05 Jul-Dec05 I Jan-Jun06 On-going
Program Implementation - Phase 1
Program Implementation- Phase 2 $~ 05000
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Program Implementation: Advertising, public outreach, rental housing inventory, database creation,
rent, vehicle, equipment, printing and postage, 1 FTE and associated costs
in FY05, equipment maintenance charges, rent, hearings official, annual
billing to landlords. Limited enforcement would be available in the later
phase of implementation.
On-going with 2-3 FTE: 2 - 3 FTE and associated costs, equipment maintenance charges, rent,
hearings official, annual billing to landlords.
Staff would recommend using a mix of limited-duration employees, contract services, and full-time
employees for start-up and staffing this service. A limited-duration employee is a temporary employee,
limited to two years. Long-term staffing will be determined as the program stabilizes and the service
demands are better understood.
CITY MANAGER'S RECOMMENDATION
Timing: Staff recommends the phased implementation plan that would enable the City to apply the
housing code to multi-family dwellings first and expand the program to single-family
dwellings.
Funding: Staff recommends preparing a supplemental budget request for FY05 to fund the six-month
start-up costs for implementation of Phase 1 of the program.
Rental Housing Ordinance: Staff recommends incorporating the proposed changes in Section 8.440 (2)
referenced in the memo from John VanLandingham, chair of the Housing
Policy Board.
SUGGESTED MOTION
None, this is a public hearing only.
ATTACHMENTS
A. City Rental Housing Ordinance
B. October 27, 2004, memo from John VanLandingham
FOR MORE INFORMATION
Staff Contact: Marsha Miller, Building and Permit Services Manager
Telephone: 682-5224
Staff E-Mail: marsha.a.miller~ci.eugene.or.us
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ATTACHMENT A
ORDINANCE NO.
AN ORDINANCE CONCERNING RENTAL HOUSING; ADDING
SECTIONS 8.400 THROUGH 8.440, AND SECTION 8.995 TO THE
EUGENE CODE, 1971; AND PROVIDING FOR A DELAYED
ENFORCEMENT DATE.
The City of Eugene does ordain as follows:
Section 1. Sections 8.400 through 8.440 are added to the Eugene Code, 1971, to
provide:
8.400 Rental Housinq - Title. Sections 8.405 through 8.440 of this code
constitute the "City Rental Housing Code," and may be referred to as
such.
8.405 Rental Housinq - Purpose. The purpose of this City Rental Housing
Code is to provide minimum habitability criteria to safeguard health,
property and public wellbeing of the owners, occupants and users of
rental housing and is intended to supplement rather than conflict with
the habitability standards of the State of Oregon Residential Landlord
and Tenant Act.
8.410 Rental Housinq - Applicability.
(1) Except as provided in subsection (2) of this section, the standards
provided in section 8.425 of this code shall apply to all rental
housing.
(2) The following living arrangements are excluded from the
application of sections 8.405 through 8.440 of this code:
(a) Occupancy in transient lodging;
(b) Occupancy in hospitals and other medical facilities;
(c) Occupancy in residential care facilities licensed by the State;
(d) Occupancy of a dwelling by its owner, including one where a
portion of the dwelling is rented to another person for
occupancy;
(e) Occupancy in institutions providing educational, counseling,
religious or similar service, but not including residence in off-
campus, non-dormitory housing;
(f) Occupancy in a dwelling occupied for no more than 90 days
by a purchaser prior to the scheduled closing of a real estate
sale or by a seller following the closing of a sale, as permitted
under the terms of an agreement for sale of a dwelling unit or
the property of which it is a part;
Ordinance- 1
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(g) Occupancy by a member of a fraternal or social organization
in a structure operated for the benefit of the organization;
(h) Occupancy in a dwelling by a squatter;
(i) Occupancy in a vacation dwelling;
(j') Occupancy in a dwelling by an employee of a landlord whose
right to occupancy is conditional upon employment in and
about the premises;
(k) Occupancy by an owner of a condominium unit or holder of a
proprietary lease in a cooperative; and
(I) Occupancy in premises rented to be used by the occupant
primarily for agricultural purposes.
8.415 Rental Housinq - Definitions. For purposes of sections 8.400 through
8.440 of this code, the following words and phrases mean:
Agent. A person authorized to act on behalf of another person.
Building code. The currently adopted edition of the State of Oregon
Structural Specialty Code or Oregon Residential Specialty Code.
City Manager. The city manager or the manager's designee.
Dwelling unit. A building or portion of a building that is used as a
home, residence or sleeping place by one or more persons who
maintain a household. For purposes of this City Rental Housing Code,
where portions of a residential building are occupied under separate
rental agreements, but tenants share eating, cooking, and/or sanitation
facilities, each portion under a separate rental agreement shall be
considered a dwelling unit.
Habitable room. Any room used for sleeping, living, cooking or dining
purposes, but excluding closets, pantries, bath or toilet rooms,
hallways, laundries, storage spaces, utility rooms and similar spaces.
Mechanical code. The current edition of the State of Oregon Mechanical
Specialty Code or Oregon Residential Specialty Code.
Plumbing code. The current edition of the State of Oregon Plumbing
Specialty Code or Oregon Residential Specialty Code.
Rental agreement. Ail written or oral agreements concerning the use
and occupancy of a dwelling unit and premises. "Rental agreement"
includes a lease.
Rental housing. A legal dwelling unit which is the subject of a rental
agreement.
Ordinance - 2
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Transient lodging. A room or suite of rooms which is occupied not as a
principal residence by persons for periods of less than 30 consecutive
days.
8.420 Rental Housinq - Danqerous Buildinqs. Conditions which constitute a
dangerous building and procedures for abating them are provided in
Section 8.005(25) of this code.
8.425 Rental Housinq - Standards.
(1) Structural Inteqrity. Roofs, floors, walls, foundations and all other
structural components shall be capable of resisting loads
prescribed by the building code in effect at the time of
construction.
(2) Plumbinq. Plumbing systems shall be maintained in a safe and
sanitary condition and shall be free of defects, leaks and
obstructions.
(3)Heatinq.
(a) A permanently installed heat source able to provide a room
temperature of 68 degrees Fahrenheit three feet above the
floor, measured in the approximate center of the room, in all
habitable rooms. Portable space heaters shall not be used to
achieve compliance with this section.
(b) Ail heating devices or appliances shall conform to applicable
law at the time of installation.
(c) Ventilation for fuel-burning heating appliances shall be as
required by the Mechanical Code at the time of installation.
(4) Weatherproofinq.
(a) Roof, exterior walls, windows and doors shall be maintained
to prevent water leakage into living areas which may cause
damage to the structure or its contents or may adversely
affect the health of an occupant.
(b) Repairs must be permanent rather than temporary and shall
be through generally accepted construction methods.
(5) Interpretations.
(a) The city manager is empowered to render interpretations of
sections 8.400 through 8.440 of this code.
(b) Such interpretations shall be consistent with the purpose of
this code.
8.430 Rental Housinq - Enforcement.
(1) Authority. The city manager may enforce all the provisions of
sections 8.400 through 8.440 of this code.
(2) Complaint.
(a) A complaint must be in writing and may be filed in person or
by mail or fax.
Ordinance - 3
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(b) A person who files a complaint must be a party to the current
rental agreement covering the property in question or an
agent of the party.
(c) A complaint must include the following: 1. Name of person filing the complaint and, if different, the
name of the affected tenant. Complaints may not be
submitted anonymously;
2. Name of the owner or the owner's agent;
3. Address of the dwelling unit with the alleged violation;
4. A complete description of the alleged violation; and
5. A copy of the written notice of the alleged code violation
that has been sent by the tenant to the owner or the
owner's agent
(d) Complaints shall be processed by the city manager. The city
manager shall adopt rules pursuant to section 2.0~9 of this
code that specify the procedure to be followed in processing
complaints. Before initiating an investigation under
subsection (3) of this section, the city manager shall:
Confirm that the complainant has standing to file a
complaint;
2. Confirm that the subject of the complaint could be a
violation of this code;
3. Confirm that the owner or the owner's agent has had ten
days since mailing of the written notice by the tenant to
respond to the complaint; and
4. Provide notice to the owner or the owner's agent of the
complaint per written procedures.
(3) Investiqations.
(a) The city manager shall initiate investigations only after
completion of the process in subsection (2) of this section.
(b) The city manager shall conduct an investigation to confirm
the validity of the complaint.
(c) If the city manager determines that the complaint is not valid,
the case shall be closed and all parties notified.
(d) If the city manager determines that the complaint is valid, the
city manager or the manager's designee shall issue a notice
and order pursuant to subsection (5) of this section.
(4) Inspection and Riqht of Entry. When it may be necessary to
inspect to enforce the provisions of sections 8.400 through 8.440
of this code, the city manager may enter the building or premises
at reasonable times to inspect or to perform the duties imposed
therein, provided that if such building or premises be occupied
that credentials be presented to the occupant and entry requested.
If such building or premises be unoccupied, the city manager shall
first make a reasonable effort to locate the owner, the owner's
agent, or other person having charge or control of the building or
premises and request entry. If entry is refused by the owner, the
Ordinance - 4
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city manager shall have recourse to every remedy provided by law
to secure entry, including issuance of administrative search
warrants. If entry is refused by the tenant, the complaint may be
dismissed and the case closed.
(5) Notices and Orders.
(a) For valid complaints, the city manager shall issue an order to
the owner or the owner's agent. The notice and order shall
include the following:
Address and unit number if applicable;
2. A statement that the city manager has found the
premises to be in violation of section 8.425 of this code
as alleged in the complaint;
3. A description of the violation;
4. A deadline allowing a reasonable time to make the
repairs required to bring the dwelling unit into
compliance with the provisions of this code;
5. A statement advising the owner or the owner's agent
that if the required repairs are not completed by the
deadline stated in the notice and order, the city manager
may:
a. Issue an administrative civil penalty, or initiate a
prosecution in municipal court, or both; and
b. Initiate action to recover all city costs associated
with the processing of the complaint,
investigation and the resolution of the issue.
6. A statement that the owner or the owner's agent may
appeal the notice and order as specified in section 8.435
of this code; and;
7. The date after which a reinspection will be scheduled.
(b) The city manager shall mail the order, and any amended or
supplemental notice and order, to the tenant and to the owner
or the owner's agent by first class mail.
(5) Failure to Comply. Failure to comply with the notice and order
issued under subsection (5) of this section by the specified date
shall constitute a violation subject to the penalties contained in
section 8.995 of this code.
8,435 Rental Housinq - Appeals, Any owner or owner's agent upon whom an
order is served under section 8,430 of this code shall have the right to
appeal within the time and in the manner provided in section 2,021 of
this code, The appeal must include the applicable fee,
8,440 Rental Housinq - Re,qistration and Fees.
(1) All rental housing not excluded under 8,410(3) shall be registered
with the city on a form and in a manner to be determined by the
city manager,
Ordinance - 5
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(2) For the purpose of offsetting the costs to the city associated with
the enforcement of this code, the city manager, using the process
contained in section 2.020 of this code, shall set an annual fee for
each dwelling unit covered by a rental agreement.
(3) The following unit types, while subject to the standards,
enforcement procedures, and other requirements established in
sections 8.400 through 8.440 of this code, shall be exempt from
the fee payment requirements:
(a) Rentals with a recorded deed restriction requiring the units to
be rented affordably to households at or below 50% of the
Area Median Income;
(b) Rentals under contract with a public agency for which the
contract requires the rental to be inspected at least annually,
and where the public agency or its agent verifies that the
dwelling is rented to a low income household; and
(c) Rentals designated as senior or disabled housing by a public
agency.
(4) The owner or the owner's agent shall be responsible for paying
the annual fee. The total annual fee shall be paid for any dwelling
unit which is covered by this Rental Housing Code for any portion
of that calendar year.
(5) For each month in which the annual fee is not paid by the date
specified in the written notice of payment, a penalty shall be
assessed to the owner or the owner's agent. The amount of the
penalty shall be set by administrative rule by using the process
contained in section 2.020 of this code.
(6) The city manager may initiate appropriate action to collect the fees
due. Ail costs associated with these actions, including attorney
fees, may be assessed to the owner or the owner's agent.
Section 2. Section 8.995 is added to the Eugene Code, 1971, to provide:
8.995 Penalties- Specific..
(1) A person who fails to comply with a notice and order issued under
subsection (5) of section 8.430 of this code shall be subject to:
(a) An administrative civil penalty issued under section 2.018 of
this code; and/or
(b) A fine imposed by municipal court in an amount not to
exceed $250 per violation.
(2) Each day that a violation exists constitutes a separate violation for
which an additional penalty may be assessed under subsection (1)
of this section.
Section 3. The City Recorder, at the request of, or with the concurrence of the
City Attorney, is authorized to administratively correct any reference errors contained
Ordinance - 6
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herein or in other provisions of the Eugene Code, 1971, to the provisions added,
amended or repealed herein.
Section 4. Sections 8.400 through 8.435 of this Code shall take effect as
provided in Section 32 of the Eugene Charter of 2002, except that the City Manager's
obligation to take enforcement action under Section 8.430 of this Code shall not take
effect until July 1, 2005, or until the City Manager's adoption of an administrative order
declaring that adequate staff is employed to handle enforcement actions, whichever is
earlier. The annual fee for the 2005 calendar year shall not be due until 30 days after
the City Manager has adopted an administrative order establishing the amount of the
annual fee, at which time the annual fee shall be due for the entire 2005 calendar year.
Passed by the City Council this Approved by the Mayor this
~ day of ., 2004. ~ day of ,2004.
City Recorder Mayor
Ordinance - 7
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ATTACHMENT B
MEMO
To: Eugene City Council
From: John VanLandingham, chair, Housing Policy Board
Date: October 27, 2004
Subject: Housing Policy Board Position Regarding Exemptions from the
Proposed Eugene Rental Housing Code
1. HPB Recommendation: At its September 13, 2004, meeting, after a thorough
discussion among the HPB members and our affordable housing providers, the Housing
Policy Board voted to recommend to the Eugene City Council, with regard to the
proposed Eugene Rental Housing Code, the following:
a. That affordable housing units not be exempt from coverage of the proposed
code.
b. That affordable housing units be exempt from the annual fee.
c. That the fee exemption language in the draft proposed ordinance be amended.
2. Fee Exemption Language: The draft proposed ordinance already includes language
exempting some housing from the annual fee to be charged. The HPB recommends that
the Council amend that language, as follows:
"Section 8.440 (2) The following unit types, while subject to the standards, enforcement
procedures, and other requirements established in sections 8.400 through 8.440 of this
code, shall be exempt from the fee payment requirements:
(a) Rentals with a recorded deed restriction requiring the units to be rented
affordably to households at or below [50-%] 60 percent of the Area Median Income;
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(b) Rentals that have been approved by the city for an exemption from
property taxes pursuant to sections 2.910 to 2.922 of this code or that are recognized
by the city as exempt from property taxes pursuant to ORS 307.092.
3. Why Affordable Housing Should Be Exempt from the Fee: The Corvallis model,
which the draft proposed ordinance follows, makes affordable housing rental units
covered by the complaint and inspection program, but exempt from the annual fee which
pays for the program. The HPB, by a 4 (Cabell, Cuellar, Ralston, VanLandingham) to 2
(Hadley, Allen) vote, recommends that the Council follow Corvallis' lead on these two
issues, although with revised fee exemptions. The argument for exempting affordable
housing units from the fee is that these units will generally only be built with City support
and funding; charging these units the fee means either raising the rents or seeking
additional subsidy, including from the City. The tenants cannot afford higher rents, even
a small amount, and these units are typically owned by nonprofits or the housing
authority, so there is no owner profit from which to pay the fee. In a sense, the City
would be charging itself the fee.
4. Why the Draft Proposed Fee Exemptions Should Be Amended: The amendments
suggested in section 2 above reflect the following concerns, identified when several
members of the HPB and several of our local housing nonprofits and the housing
authority met with City staff in late August to review the proposal.
a. The proposed first exemption is apparently intended to cover affordable housing
projects built with federal low income housing tax credits. We agree that this is a good
idea. However, the FLIHTC is limited by federal law to projects that house people at 60
percent of median income, not 50 percent. We propose amending exemption (2)(a) to
reflect this. While HPB-sponsored projects typically house people whose incomes are
below 50 percent of median, generally closer to 30 or 40 percent, imposing a 50 percent
median income criteria risks conflicts with the federal rules, and complicates an already
over-complicated subsidy program.
b. The proposed second exemption is apparently intended to cover Section 8
voucher tenancies. The HPB recommends against this exemption. A Section 8 voucher is
a rent subsidy paid by the federal government through the housing authority to - typically
- a private landlord. The rationale for exempting affordable housing units stated above
does not apply to these private landlords. Moreover, Section 8 tenants can and do move,
and subsequent tenants may well not have a Section 8 voucher; this raises significant
administrative issues regarding tracking when these units should be exempt from the fee.
In addition, Congress and the Bush administration have recently proposed significant
changes to the Section 8 program, and it is possible that future changes could include
deletion of the current annual inspection requirement.
c. The proposed third exemption refers to senior and disabled units so designated
by a public agency. No public agency currently "designates" such units, so this is
unworkable. In addition, this exemption does not require that the residents of these units
be low income, which again conflicts with the rationale stated above for fee exemption.
d. Our proposed new second exemption takes advantage of existing City (EC
2.910 et seq.) and State (ORS 307.092 for housing authority owned properties) property
tax exemptions for low income housing. These exemptions are limited to rental units for
low income people and the units are easily identified.
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