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Home My WebLink AboutItem C: Rental Housing Code Program Update ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Rental Housing Code Program Update Meeting Date: October 8, 2007 Agenda Item Number: C Department: Planning and Development Staff Contact: Rachelle Nicholas www.eugene-or.gov Contact Telephone Number: 682-5495 ISSUE STATEMENT This work session provides an opportunity for the Mayor and City Council to review the first two years of the Rental Housing Code program and direct staff on the future of the program. BACKGROUND The Eugene Rental Housing Code was adopted by the City Council in 2004. The City of Eugene has not had a housing code since 1983. The code is modeled after a housing code in place in Corvallis. 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 ordinance is currently scheduled to sunset December 31, 2008. Funding The Rental Housing Code Program is funded with a $10.00 per rental unit fee paid each year. There were 5,188 parties responsible for 27,602 units identified during the first year of the program and 5,167 parties responsible for 27,365 in the second year. Program revenue has supported expenses for fiscal year 2006 and fiscal year 2007. (See Attachment A for financial details.) Bills are sent out at the beginning of each fiscal year. If payment is not made within 30 days, a $20 late penalty is applied to the account. This continues on a 30-day cycle until the account with the cumulative late penalties is forwarded for collections by an outside agency to close out each fiscal year. There were 52 accounts flagged for collections for fiscal year 2006. Staff continually updates the database as they track a significant number of changes in ownership and management of properties. Program Overview The Rental Housing Code addresses four areas of habitability: structural integrity, plumbing, heating and weatherproofing. Dangerous buildings (e.g., faulty electrical systems) are dealt with through existing Eugene administrative rules and authority. Staff in the Rental Housing Program has been responding to inquiries and complaints since the program went live July 1, 2005. During the first two years of the program staff logged 4,541 telephone calls. Of those, 815 callers were identified as tenants. The Rental Housing Code prescribes a process that ensures a renter notifies the owner of their concerns before they may file a complaint with the City. When an issue is not resolved by the owner after he or she receives notice from a tenant, a complaint may be made to the City. In two years there have been 78 legitimate complaints filed with the City. Six of the properties had additional safety concerns beyond the scope of the Rental Housing Code and were posted as a dangerous building (e.g., faulty electrical systems, inadequate exit way, structurally unsound). Civil penalties were assessed to encourage compliance on five of the complaints due to lack of owner response. Outreach Staff continues outreach efforts to both property owners and tenants in the City of Eugene. Staff has made contact with various community partners; distributed informational brochures and posters, developed informational door hangers and mailed out postcards to single family dwelling tenants. Rental housing brochures are distributed at various locations throughout the City including the Eugene Llibrary and branches, community centers, non-profit housing agencies, social service agencies, and other community service agencies. Staff attended various community meetings including West University Neighborhood Association (WUNA), South University Neighborhood Association (SUNA), Rental Owners Association (ROA), Neighborhood Leaders Council, Community Resource Group, Multi-Family Council and the Housing Policy Board. Tenants may submit complaints online and via fax. Additionally, Oregon Legal Aid, Associated Students of the University of Oregon and Oregon Housing and Community Services make referrals to Eugene staff and have access to complaint forms at their offices. Forms can be filled out at these locations and faxed directly to City staff. RELATED CITY POLICIES Chapter III, Existing Housing Supply and Neighborhoods, Policy A.25 of the Eugene-Springfield Metropolitan Area General Plan 2004 update: Conserve the metropolitan area’s supply of existing affordable housing and increase the stability and quality of older residential neighborhoods, through measures such as revitalization; code enforcement; appropriate zoning; rehabilitation programs; relocation of existing structures; traffic calming; parking requirements; or public considerations. These actions should support planned densities in these areas. COUNCIL OPTIONS The ordinance is currently scheduled to sunset December 31, 2008, if no action is taken by the council. To continue the Rental Housing Code, the council can direct the City Manager to modify the ordinance to remove or change the sunset provision as well as make other changes. 1.Direct the City Manager to modify the ordinance to remove or change the sunset provision. 2.Direct the City Manager to modify the ordinance with specific enhancements or changes and return to council. 3.Take no action allowing the program to end December 31, 2008. CITY MANAGER’S RECOMMENDATION The City Manager recommends that the City Council direct the City Manager to prepare an ordinance to remove the sunset date to continue the current program. SUGGESTED MOTION Move to eliminate the sunset date from the City Rental Housing Code. Direct the City Manager to initiate changes necessary to remove the provision of the Eugene Code, 1971, that repeals the City Rental Housing Code at midnight, December 31, 2008. ATTACHMENTS A. Rental Housing Code Program Financial Statement for FY06 and FY07 FOR MORE INFORMATION Staff Contact: Rachelle Nicholas Telephone: 682-5495 Staff E-Mail: rachelle.d.nicholas@ci.eugene.or.us Rental Housing Program Financial Statement Attachment A FY06 and FY07 July 1, 2005 thru June 30, 2007 FY06FY07 Revenue: Unit Fees @ $10/unit$265,145.00$275,675.00 Late Fees @ $20/month$16,887.00$16,775.00 Revenue Total$282,032.00$292,450.00 Expenses: Salary & Fringe (2 FTE)$150,262.66$187,138.92 Printing$5,329.80$2,335.21 Postage$9,707.69$3,357.68 Vehicle Charges (1/2 of total maint costs)$3,858.00$3,858.00 Telephones (new equipment & monthly costs)$1,934.10$1,994.88 Computers (new equipment & maint)$6,204.00$4,609.00 Building Rent$6,363.00$4,755.00 General Liability Insurance$0.00$1,438.00 Training$210.00$717.00 Advertising (employment)$0.00$707.52 Public Education$519.40$0.00 Professional Services$149.50$1,091.00 City Attorney Fees$3,839.80$0.00 Office Furniture & Supplies$5,827.10$632.44 Tools & Minor Equipment$228.13$3,204.00 Miscellaneous Supplies$445.67$660.77 Database design, development, maintenance$59,293.00$0.00 Reimburse start-up costs from FY05$13,455.00$0.00 Expense Total$267,626.85$216,499.42 $14,405.15$75,950.58 Net Revenue to Expense: