HomeMy WebLinkAboutItem A: On-Site Management for Multi-Unit Rental HousingECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: On-Site Management for Multi-Unit Rental Housing
Meeting Date: November 28, 2012 Agenda Item: A
Department: Planning and Development Staff Contact: Nan Laurence
www.eugene-or.gov Contact Telephone Number: 541-682-5340
ISSUE STATEMENT
The work session is an opportunity to share information about on-site management
concepts for multi-unit rental housing, and for council consideration and direction on these
issues.
BACKGROUND
The concept of requiring on-site management for multi-unit rental properties surfaced
during the council’s consideration of the Capstone student housing project. On May 9,
2012, the council approved a multi-unit property tax exemption (MUPTE) for the Capstone
project, which included a requirement that Capstone provide on-site management of the
property. The council directed staff to conduct research on how property managers and
other communities are managing the impacts of larger rental housing developments
including on-site management requirements, and to bring this item back for council
consideration by the end of the year.
To address the council’s requests, staff contacted property managers and conducted an
informal survey of 10 other communities to find out how they were protecting community
livability and preventing undesirable behavior for larger multi-unit rental properties. The
property managers who specialize in student rental housing stated that they used on-site
live-in management and wrote lease provisions to cover tenant behavior. Conversely,
property managers specializing in non-student rental housing preferred on-site property
management but not live-in resident management. They explained that a live-in manager
resulted in unintended consequences, such as decreased project revenue by dedicating a
unit and limiting who might apply for the position. Both types of property managers
agreed, however, that effective management of the property is crucial.
The survey of 10 communities indicated several techniques were used to address the
impact of larger rental housing developments. A summary of staff’s research is available in
Attachment A. In general, communities addressed the issue of promoting appropriate
behavior in four different ways: 1) establishing occupancy limits; 2) developing
informative materials/programs for tenants and property managers; 3) specifically
applying nuisance ordinances to rental housing; and 4) creating incentives for property
owners to better manage their properties.
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These approaches focus on clarifying desired behavior and shifting the burden and cost of
problematic tenants to the property owner and away from public services. The regulating
mechanisms typically included ordinances, policies, and incentives that ensure both the
property owner and the tenant are well-informed of their responsibilities.
The goal of developing an appropriate mechanism for Eugene’s larger multi-unit properties
is not an isolated issue. The council is currently considering an ordinance to address unruly
gatherings by holding the party hosts and property owners accountable and exacting fines.
Accordingly, staff intends to coordinate across departments as requirements for multi-unit
rental properties are developed. Based on council discussion at this work session and
future action on the social host ordinance, staff will bring options for multi-unit
management requirements back for council review and action.
RELATED CITY POLICIES
The adoption of requirements for on-site management of large multi-unit rental housing
would be consistent with numerous planning and policy documents. Examples include:
Growth Management Policies
Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to
increase density and use on existing vacant land and under-used land within
the boundary more efficiently.
Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development.
Policy 3 Encourage a mix of business and residential uses downtown using incentives
and zoning.
Eugene Downtown Plan
Downtown development shall support the urban qualities of density, vitality,
livability and diversity to create a downtown, urban environment.
Actively pursue public/private development opportunities to achieve the vision for
an active, vital, growing downtown.
Stimulate multi-unit housing in the downtown core and on the edges of downtown
for a variety of income levels and ownership opportunities.
Envision Eugene
Provide affordable housing for all income levels
Promote compact urban development and efficient transportation options
Protect, repair, and enhance neighborhood livability
Provide for adaptable, flexible, and collaborative implementation
Eugene Counts
A greater sense of safety, especially downtown, and better police and community relations
are two of the desired outcomes identified under the Council Goal of Safe Community.
Eugene-Springfield Metropolitan Area Plan
Metropolitan Goal: Environmental Design
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Secure a safe, clean, and comfortable environment which is satisfying to the
1.
mind and senses.
Encourage the development of the natural, social, and economic environment
2.
in a manner that is harmonious with the area’s natural setting and maintains
and enhances quality of life.
Create and preserve desirable and distinctive qualities in local and
3.
neighborhood areas.
Policy E.6 Local jurisdictions shall carefully evaluate their development regulations to
ensure that they address environmental design consideration, such as, but
not limited to, safety, crime prevention, aesthetics, and compatibility with
existing and anticipated adjacent uses (particularly considering high and
medium density development locating adjacent to low density residential).
COUNCIL OPTIONS
The work session is an opportunity to provide information and listen to feedback from the
council on options regarding multi-family management requirements; no formal action is
requested.
CITY MANAGER’S RECOMMENDATION
The City Manager will use the feedback obtained at this work session to schedule future
work sessions and make recommendations regarding multi-family management
requirements.
SUGGESTED MOTION
No motion necessary at this time.
ATTACHMENTS:
A. Community Strategies for Regulating Behavior in Multi-Unit Properties
FOR MORE INFORMATION
Staff Contact: Nan Laurence
Telephone: 541-682-5340
E-mail: nan.laurence@ci.eugene.or.us
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ATTACHMENT A
Community Strategies for Regulating Behavior in Multi-unit Properties
1)Aurora, Illinois established a Crime Free Multi-Housing Program (CFMHP) through the Police
Department. CFMHP is a nuisance ordinance applied to rental properties in response to the
recurring problems related to rental properties. The CFMHP is meant to remedy situations
where a nuisance related to rental property occurs and the property owner is unaware or
unable to quickly and effectively resolve the matter. CFMHP requires that out-of-state property
owners register a local agent with the city and that the property owner or agent attend a
property management training class. The curriculum used was initially developed by the Mesa,
Arizona Police Department in 1992.
2)Boulder, Colorado has a Rental License Program to regulate habitability standards and to set
and enforce occupancy limits. This program requires that out-of-state property owners register
an agent with the city. Boulder is currently in the process of reviewing its land use code to help
mitigate community impacts related to the over consumption of alcohol. In 2004, Boulder City
Council adopted Resolution No. 960 which expressed the city’s recognition that it has a role in
addressing the overconsumption of alcohol as an important health, safety, and welfare issue in
the in community.
3)Bloomington, Indiana implemented the Quiet Nights program that funds night patrol officers
dedicated to enforcing the noise ordinance. Fines paid for violating the noise ordinance fund
the program.
4)Corvallis, Oregon has a rental housing code for establishing and enforcing habitability standards.
It also applies its chronic nuisance code (disorderly conduct, alcohol violations, etc.) to multi-
unit property in a specific section of that code. Of note, , a chronic nuisance determination may
be applied to the entire property when a Hearings Officer determines that the incidents
occurred in the common areas of the property or incidents continue to occur despite previous
intervention and the owner has demonstrated an inability or unwillingness to correct the issue.
5)Duluth, Minnesota has an Off-Campus Housing Listing Service Policy Agreement with landlords
through the University of Minnesota in Duluth. In the agreement, the University reserves the
right to de-list or refuse to list properties or landlords when the landlord has had too many
tenant complaints, inspection issues, municipal code violations, or misrepresents the property in
a listing.
6)Fort Collins, Colorado regulates rental housing developments through its nuisance and
occupancy codes. Currently, Fort Collins is developing a Student Housing Action Plan (SHAP) to
develop strategies that encourage and provide an adequate supply of quality student housing
while maintaining neighborhood quality and compatibility. The SHAP focuses on parking, traffic,
noise, scale, and use.
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7)Iowa City, Iowa has developed an Off-Campus Living Resources including the Being a Good
Neighbor guide book. At one point the city considered an on-site management and safety plan
requirement for rental housing developments. Instead the city uses a Code Compliance
Settlement Agreement process for “problem properties.” This process involves a meeting
between the city, the landlord and the tenants. Sanctions are mostly imposed on the landlord
but can also impact the tenant.
8)Madison, Wisconsin recently amended its code to require every owner of a rental dwelling to
keep on record with the city contact information of two or more persons located in the county,
by virtue of his or her ownership, employment, or delegation, can exercise control and care over
the property, and provide access to the property.
9)St. Paul, Minnesota released a Student Housing Zoning Study in May 2012. The study was part
of a one year moratorium on the conversion of single-family homes into rental properties in
specific neighborhoods. Recommendations from the study require the involvement of all
community partners (universities, neighbors, tenants, landlords, etc.) and focus on regulating
behavior through lease terms, education, outreach, and enforcement.
10)Tallahassee, Florida has a Rooming House Ordinance that regulates single-family houses that
have been converted into rental housing. This ordinance requires out-of-state property owners
to register an in-county agent with the city. Existing rooming houses in neighborhoods are
grandfathered under the ordinance. Grandfathered status may be revoked when the property
becomes the source of multiple complaints.
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