Loading...
HomeMy WebLinkAboutItem 5: Ordinance on Rental Housing Code ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Rental Housing Standards; Amending Section 8.425 of the Eugene Code, 1971; and Repealing Section 5 of Ordinance No. 20239 Meeting Date: May 19, 2008 Agenda Item Number: 5 Department: Planning and Development Staff Contact: Rachelle Nicholas www.eugene-or.gov Contact Telephone Number: 682-5495 ISSUE STATEMENT The proposed amendments would add mold, security and smoke detectors to the rental housing standards and remove the program sunset provision. BACKGROUND The Eugene Rental Housing Code was adopted by the council in 2004. 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 Rental Housing Code currently addresses four areas of habitability: structural integrity, plumbing, heating and weatherproofing. At the October 8, 2007, work session, council provided direction to add mold, security, and smoke detectors to the ordinance and remove the sunset provision. The ordinance is currently scheduled to sunset December 31, 2008. Program Overview The code provides a service to Eugene residents not provided by any other agencies. In the absence of the rental housing code there are few options for tenants to achieve resolution of repair disputes. One option is to sue the landlord in Circuit Court to obtain a court order. If an owner fails to make a repair in accordance with a court order the tenant would have to return to court to enforce the court order. The court process can delay dispute resolution and may increase attorney costs and court fees. Funding The program is funded with a $10 fee assessed annually for each dwelling unit. The number of units and corresponding revenue varies each year. We anticipate over-collecting approximately $59,000 in unit fees before enhancements. In previous years the program has collected approximately $16,500 in late fees. The Rental Housing Code Program budget has not been developed with dependence on late fee revenues and anticipates a significant reduction in late fees. Staff is implementing administrative changes to the program to provide additional notice and opportunity to pay. Staff received two questions during the April 23 work session. The first question was in regards to the City’s liability as a result of including regulation of mold in the City's rental housing code. A response to this question is attached (Attachment C). The second question was regarding the potential of reducing the unit fee from $10 to $8. With no changes to the program, an $8 per unit fee would over-collect by approximately $4,000. Late fees are in addition to this amount. A brief unit fee comparison is attached (Attachment B). Y:\CMO\2008 Council Agendas\M080519\S0805195.doc The Rental Housing Code Program is self-supported. The program is not requesting funding or additional staffing. The program was originally budgeted for three staff although the current duties are carried out by the equivalent of two positions with work distributed to multiple individuals. The program is financially self-supporting with the current $10 unit fee. Without experience in the regulatory area of mold, security and smoke alarm enforcement, staff estimate additional program costs. Staff believes the fee is adequate to fund the enhancements without adjustment at this time. Both a small savings from previous years and late fees collected will be applied to operation costs. Excess revenues are rolled to the next year’s budget. Revenue is tracked with this program from year to year and any savings or excess is not returned for common use in the general fund. 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 City Council may consider the following options: 1.Approve the proposed ordinance. 2.Approve the proposed ordinance with modifications. 3.Take no action allowing the program to end December 31, 2008. CITY MANAGER’S RECOMMENDATION This is scheduled for a public hearing only. Following the City’s receipt of all testimony, the City Manager will make a recommendation to be included in the council packet for action on May 27, 2008. SUGGESTED MOTION No motion is proposed as this item is scheduled for a public hearing. ATTACHMENTS A.Proposed Rental Housing Code Ordinance B.Financial Statement Showing Revenue Unit Fee Comparisons C.Memorandum: City Attorney Opinion FOR MORE INFORMATION Staff Contact: Rachelle Nicholas Telephone: 682-5495 Staff E-Mail: rachelle.d.nicholas@ci.eugene.or.us Y:\CMO\2008 Council Agendas\M080519\S0805195.doc ATTACHMENT A ORDINANCE NO. __________ AN ORDINANCE CONCERNING RENTAL HOUSING STANDARDS; AMENDING SECTION 8.425 OF THE EUGENE CODE, 1971; AND REPEALING SECTION 5 OF ORDINANCE NO. 20239. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Subsection (5) of Section 8.425 of the Eugene Code, 1971, is renumbered to (8), and new Subsections (5), (6), and (7) are added thereto, to provide as follows: 8.425Rental Housing – Standards . (5) Mold. Dwelling unit interior spaces shall be maintained so as to prevent visible mold. (6) Security. Doors and windows leading into a dwelling unit must be equipped with locks and shall be maintained in a condition so as to restrict access into the dwelling unit. (7) Smoke detectors. Every dwelling unit shall be equipped with an approved and properly functioning smoke alarm or smoke detector installed and maintained in accordance with the state building code, ORS 479.270, 479.275, and 479.285, and applicable rules of the State Fire Marshal. (5) 8 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. Section 2. 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, 1971, to the provisions added, amended or repealed herein. Section 3. Section 5 of Ordinance No. 20239 passed by the City Council on November 22, 2004, and which provided for the automatic sunset and repeal of Ordinance Ordinance 20239 and the Rental Housing Code (Sections 8.400 – 8.440, 8.995) added to the Eugene Code, 1971 by that Ordinance on December 31, 2008, is hereby repealed. Passed by the City Council this Approved by the Mayor this ____ day of ______________, 2008 ____ day of _______________, 2008 _____________________________ ______________________________ City Recorder Mayor Ordinance ATTACHMENT B Financial Statement Showing Actual Revenue Unit Fee Comparisons FY06 FY07 Unit fee @ $10 Unit fee @ $8 Unit fee @ $10 Unit fee @ $8 Unit Fee Revenue $265,145 $212,116 $275,675 $220,540 Expenses $267,627 $267,627 $216,499 $216,499 Net Revenue to Expenses -$2,482 -$55,511 $59,176 $4,041 ATTACHMENT C Planning & Development Building & Permit Services City of Eugene th 99 West 10 Avenue Eugene, Oregon 97401 (541) 682-5086 (541) 682-6806 FAX www.eugene-or.gov M EMORANDUM Date: May 19, 2008 To: Mayor Piercy and City Council From: Rachelle Nicholas, 682-5495 Code Enforcement Supervisor Subject: City Attorney Opinion Regarding City Liability in the Area of Additional Code Language Staff received a question about the potential for City liability as a result of including regulation of mold in the City's rental housing code. After conferring with the City Attorney's Office, staff is able to provide the following response. The proposal does not make significant changes to existing liability risks. The proposed regulation of mold also does not have the City assuming an affirmative obligation to protect renters against mold, which could expose the Cit to risks for failing to reasonably undertake the y obligation. Instead, the regulation has the City responding to complaints and directing remedies for identified problems. (For example, the City is not certifying rental units to be free from mold, but are responding to complaints about mold and then requiring landlords to remedy any identified problems.) In general, City employees in the rental housing program have an obligation to perform their duties without exposing others to foreseeable harm that could give rise to a negligence claim. The new regulation of mold does not necessarily increase the City's liability as compared to any existing potential negligence claims that arise from the City's inspection of other rental housing complaints. To the extent the proposal adds a new avenue for complaints against rental housing units; the proposal does add the potential for liability in that the City will need to pursue such complaints without doing so negligently. But this is generally the same sort of liability the City risks with any new regulation it undertakes. Other cities including City of Portland and City of Gresham have code language in their rental housing ordinance to address visible mold. Please contact me @682-5495 or via e-mail rachelle.d.nicholas@ci.eugene.or.us if you have questions or need additional information.