HomeMy WebLinkAboutItem C - Ord.on Housing StandrdEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Action: 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 22, 2004 Agenda Item Number: C
Department: Planning and Development Staff Contact: Marsha Miller
www. cl. eugette, or. us Contact Telephone Number: 682-5224
ISSUE STATEMENT
The City Council is being asked to adopt an ordinance that would amend the Eugene Code and establish
rental housing standards in the City of Eugene.
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. That report was presented to the council in March 1995. In June of that
year, 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. On November 8, 2004,
City Council held a public hearing on the proposed rental housing ordinance.
RELATED CITY POLICIES
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.
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COUNCIL OPTIONS
The council can provide direction on one or more of several options:
1) Adopt the City Rental Housing Code ordinance as presented.
2) Adopt the City Rental Housing Code with amendments.
3) Not adopt the City Rental Housing Code.
During the public hearing on November 8, several suggestions for amendments to the proposed rental
housing code were made. Attachment B includes suggested motions for the council' s consideration.
Public Input
Many community members have submitted comments regarding this issue. Copies of correspondence
can be viewed in the Council Office.
Funding
Start-up costs will be borne by the General Fund. On-going program expenses will be covered by a
charge assessed per unit, per year unless exempted from payment in the ordinance. A fee of $10/unit
was calculated to cover anticipated operational costs.
Timing
If the council adopts the City Rental Housing Code, a supplemental budget for FY05 will be prepared in
early 2005. An inventory of rental units will be started immediately by current staff. Staffing for the
new program will be identified in Spring 2005. Housing complaints will be investigated as soon as the
program is in place but no later than July 2005.
CITY MANAGER'S RECOMMENDATION
Staff recommends adopting the rental housing ordinance, with the council-approved amendments.
SUGGESTED MOTION
Move to adopt 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.
ATTACHMENTS
A. City Rental Housing Ordinance
B. Motions for City Council consideration
C. Memorandum from John VanLandingham, comparing remedies in Oregon State Law with the
proposed ordinance
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
(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
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
(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 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
Ordinance - 4
premises and request entry. If entry is refused by the owner, the
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:
1. 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.
(6) 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.
Ordinance - 5
(1) Ail rental housing not excluded under 8.410(2) shall be registered
with the city on a form and in a manner to be determined by the
city manager.
(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 Iow 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.
Ordinance - 6
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
herein or in other provisions of the Eugene Code, '197'1, 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
ATTACHMENT B
POSSIBLE AMENDMENTS
Motion 1:
I move to amend the Ordinance by adding a new Section 5 and amending the
caption, to provide as follows:
AN ORDINANCE CONCERNING RENTAL HOUSING; ADDING SECTIONS
8.400 THROUGH 8.440, AND SECTION 8.995 TO THE EUGENE CODE, 1971;
AND PROVIDING A DELAYED ENFORCEMENT DATE AND SUNSET
PROVISION.
Section 5. Unless otherwise extended by action of the City Council, this
Ordinance and the provisions of Sections 8.400 through 8.440, and Section
8.995 of the Eugene Code, 1971 added herein are repealed effective midnight,
December 31, 2008. Notwithstanding the prior sentence, any enforcement
actions commenced to enforce those provisions prior to December 31, 2008 may
continue to be pursued, and the provisions related to such enforcement actions
shall remain in effect with respect to those actions. In addition, any fees owed to
the City under the provisions of this Ordinance remain due and owing, and all
provisions related to those fees and their collection shall remain in effect with
respect to those fees.
Motion 2:
I move to amend Section 8.430(3) as set forth in Section 1 of the Ordinance, by
adding a new Subparagraph (e) thereto, to provide as follows:
(e) For purposes of determining whether a complaint is valid, the city
manager shall consider whether the violation of the standard in section
8.425 was the result of damage caused by the tenant.
Motion 3:
I move to amend Section 8.430(4) as set forth in Section 1 of the Ordinance, by
adding a final sentence thereto, to provide as follows:
The city shall mail written notice to the owner or owner's agent at least seven
days prior to a scheduled inspection of the premises in order to afford the owner
or landlord the opportunity to be present during the inspection.
Motion 4:
I move to amend Section 8.430(5)(a)4 as set forth in Section 1 of the Ordinance,
to provide as follows:
4. A deadline for completing repairs of ten days, unless the city
manager determines that the necessary repairs cannot be
completed within the ten day period. If the city manager makes
such a determination, the owner or owner's agent shall submit a
compliance schedule acceptable to the city within ten days.
Motion 5:
I move to amend Section 8.440(3) as set forth in Section 1 of the Ordinance, to
provide as follows:
(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 60 percent of the Area
Median Income;
(b) Rentals that have been approved by the city for an exemption from
property taxes pursuant to sections 2.910 to 2.922 and 2.937 to
2.940 of this code or that are recognized by the city as exempt from
property taxes pursuant to ORS 307.092.
ATTACHMENT C
MEMORANDUM
Subject: Comparison of Remedies for Residential Tenants Whose Landlords Fail to Make
Repairs
John VanLandingham
Lane County Law & Advocacy Center
376 East 11th Avenue, Eugene
November 10, 2004
A. Under OREGON STATE LAW - the Oregon Residential Landlord and Tenant Act, ORS
chapter 90 -- residential tenants have several remedies when a landlord fails to make a repair:
1. The tenant can terminate the tenancy and move
a. In a month to month tenancy, the tenant can give a 30 day written notice for no cause.
ORS 90.427(2)
b. In a fixed term tenancy (aka a lease), the tenant can give a 30 day written notice for
cause, giving the landlord 30 days to make the repair or, in the case of an essential service
(water, heat, plumbing, door locks), 7 days. ORS 90.360(1)
Problems: Threatening to move is unlikely to cause a recalcitrant landlord to make a
repair. And, except for an essential service, this is not quick.
2. The tenant can sue the landlord for a court order ("injunctive relief") requiring the
landlord to make a repair. ORS 90.360(2)
Problems:
a. Tenants cannot do this in Small Claims Court, which does not have authority to order
anyone to do anything.
b. To get injunctive relief, a tenant would have to sue the landlord in circuit court, which
essentially means that the tenant will need an attorney.
c. There are no attorneys in this community, other than Lane County Law & Advocacy
Center ("Legal Aid"), who will represent tenants unless they are paid up front. Even with
payment up front, there is only one experienced private attorney who will represent tenants on
these kinds of cases. Legal Aid has so few attorneys that it can handle only a small number of
cases, and has decided to focus on handling evictions and subsidized housing rights.
d. The court order alone may not be enough. If the landlord still does not make the repair,
the tenant would have to return to court to enforce the court order. Unlike with eviction lawsuits
filed by landlords, the sheriff does not enforce the court order. This means more delay and more
fees owed to your attorney.
3. The tenant can do "repair and deduct," in which the tenant hires someone to make the
repair and deducts the cost from the rent owed. ORS 90.365
Problems:
a. This is complicated. The tenant can only use this remedy if the landlord "intentionally
or negligently" fails to make the repair; the repair problem is of an essential service; the cost is
under $1,000 for repairs involving health threats or $500 otherwise; and, unless the repair is of
an essential service or stove/refrigerator, the tenant must give at least 7 days' notice first. And
there's a risk that the tenant will have to bear the cost of an imperfect repair, or at least fight over
that.
b. The tenant in essence must front the cost of the repair.
4. The tenant can withhold the rent until the landlord makes the repair. ORS 90.360 (2)
Problems: While this is the most effective of the tenant's remedies, and may not require
hiring an attorney, it is also the riskiest, because the tenant is at risk of being evicted for
nonpayment of the rent, the most common cause of evictions. Eviction lawsuits happen very
quickly, at least for the legal world - less than 2 weeks from the nonpayment notice to court. If
the landlord wins - and in most nonpayment evictions the landlord does win - the sheriff will
physically remove a tenant who does not voluntarily move out. The tenant has only 4 days from
the court order to the sheriff' s forcible removal. On the other hand, the law is written so that a
tenant who withholds rent over a repair failure and pays that rent into court should prevail. But
there is still a risk of eviction, and many tenants cannot afford that risk, financially or
emotionally, even with an attorney representing them.
Conclusion: These remedies are either ineffective (#1), require an attorney (#2 and #3), or
involve significant risk of being forcibly removed from your home (#4). Many people are not
able to take that risk, the risk of having to find another home, come up with the money to rent it,
packing up all your stuff and your kids, arranging new schools for your kids, and physically
moving - all within 4 days.
B. PROPOSED EUGENE RENTAL HOUSING CODE ENFORCEMENT PROGRAM:
The proposed Eugene ordinance offers an enforcement method which is not available in the state
law, that of having a neutral third party mediate a repair dispute. There are no attorneys involved,
no rent withheld, no evictions threatened or done, no one at risk of losing her home. The
Corvallis experience is that the mediation, by the city between the two sides, is generally all that
is needed. That is why we are getting reports that Corvallis landlords support the Corvallis
model. If the mediation does not work, in a few cases the city can bring an enforcement action,
again saving the tenant from the risk of losing her home in order to force repairs.
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