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HomeMy WebLinkAbout2021-054 Rental Inspection ProgramsDate: August 6, 2021 Report No. 2021-054 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide information on rental housing registration, licensing, and inspection programs. BACKGROUND: During the City Council retreat on February 12, 2021, City Council discussed priorities and work plans items for FY20-21. One work plan item that gained consensus was to produce an informal staff report with research and more information on rental programs. The following report provides an overview of some rental programs for informational purposes. DISCUSSION: Municipalities implement code enforcement programs to ensure the safety and welfare of their residents. To address the issue of substandard housing, municipalities adopt ordinances for housing codes that establish minimum standards for safety, sanitation, and human habitation ensuring safe and healthy housing, preserving housing stock, protecting vulnerable tenants, and maintaining neighborhood property values. Types of Rental Programs In response to the increasing prevalence of substandard rental properties and that rental housing is more likely to be in substandard condition than owner-occupied housing, municipalities may also adopt targeted rental housing registration, licensing, and inspection programs.  Rental Registration – A rental registration program provides information on what rental properties exist and who owns them. The most common way to collect this information is to require owners to register their rental properties or units.  Rental Licensing – As an alternative to a registration requirement, some municipalities require property owners to obtain a certificate or license before renting a housing unit. Licensing typically includes an initial inspection comparable to a certificate of occupancy program.  Rental Inspection – The goal of a rental inspection program is to preserve safe and healthy rental housing. Periodic inspections of rental units requiring landlords to make needed repairs can help ensure that the rental housing stock is maintained and that residents live in healthy conditions. It encourages preventative maintenance, which is more cost-effective than deferred maintenance, and thereby helps landlords to maintain their properties. Inspections occur before rental and/or intermittently, usually every few years, to ensure that the housing is adequately maintained. Date: August 6, 2021 Report No. 2021-054 Complaint – v – Proactive Rental Inspection Programs  A complaint-based rental inspection program is in response to a resident complaint about a substandard housing condition. A code enforcement officer conducts a housing inspection and, if the complaint is substantiated, the officer begins enforcement actions. Limits of Complaint Only Rental Inspections: o Tenants may be unaware that they have a right to safe and habitable housing. o Tenants may have language barriers or disabilities that make it difficult to navigate the code enforcement system. o Tenants may be afraid to complain about their housing for fear of increased rent or retaliation (such as eviction).  In a proactive-based rental inspection program, a municipal code enforcement officer periodically inspects all covered rental housing to ensure that all rental properties are safe and habitable rather than wait for a complaint to inspect housing. Limits on Proactive Rental Inspection: o Tenants may be wary of government inspectors, have privacy concerns, or even not understand why an inspector has to come to the residence. o The City cannot devote all the resources necessary to inspect every unit in the city (ie. multi-unit buildings). o Landlords increase rents as a result of fees, fines, repairs, etc. (Affordable Housing) o There is a cost of relocation and risk of displacement resulting from code enforcement efforts, including housing instability and homelessness. City of Denton Rental Inspection Program City of Denton Code Enforcement currently has a rental inspection program that handles rental property maintenance complaints and performs interior inspections of rental units by request at no cost. These complaints refer to problems inside the building under sections 17-154 thru 17-179 of the Denton Property Maintenance Code (DPMC) that include, but are not limited to infestations, damaged walls, mold, leaking sinks/toilets, broken air conditioners or heaters, damaged or missing appliances, etc. Common complaints addressed by rental inspections include mold testing, heating and air conditioning issues, no hot water, sanitary sewage blockage, or rodent/insect infestation. Enforcement of dangerous structures is administered through the City’s Building Inspectors and cases may involve a public hearing before the Health and Building Standards Commission (HaBSCo). Due to the number of rental properties in Denton and increasing complaints from tenants, Code Enforcement performs interior inspections of rental units by request. A trained and experienced officer addresses all interior tenant complaints. The officer maintains positive relationships with local landlords, property managers, and leasing agents throughout Denton to ensure tenants and Date: August 6, 2021 Report No. 2021-054 their families have a safe and clean place to live and address non-compliant properties to protect public health and safety. If residents have a complaint or would like to request a Rental Inspection, they can contact Community Improvement Services Officer Donnie Denny at (940) 349-7480 or Donnie.Denny@cityofdenton.com. New or Expanded programs If there is interest in a new or expanded program, Community Services staff would need to conduct a thorough analysis to evaluate and develop options for consideration. The scope of analysis required:  Assessment of the workload impact created by the guidelines/codes for which team is solely responsible as well as those created by the guidelines/codes for which team shares responsibility with other City business units. o Number of Units. Units owned that would require registration/licensing/inspection, ie.  Single-Family  Multi-Family (6+)  Duplex/Tri-Plex  Abandoned/Vacant o Unit Inspection type(s). What is the scope of an inspection, ie.  Exteriors of buildings;  Interior common areas; and/or  Individual units in a building. o Frequency of Renewal/Inspections. Options include Periodic, on Vacancy, Increased/Waived based on compliance including self-certification, etc. o Courts. Establishing either a Civil or Criminal Process  Conduct a staffing analysis to determine the appropriate staffing level needed to effectively implement the activity (i.e., enforce City codes.) o Number of Inspectors. How many are needed for implementing appropriate remedies for identified code violations (and when a property owner fails to make repairs). o Number of staff. What is the program and administrative staffing need to administer rental registration or licensing programs?  Feasibility assessment to determine how best to design/rollout out a new project. o Exempted Units. Owner Occupied, Government regulated or subsidized, New- Construction, Hotels & Motels, etc. o Enforcement. One of the essential elements of any inspection program is enforcement when violations are discovered. If a property fails inspection, enforcement measures are initiated. o Adequate tools. Tools needed such as case management software, mobile technologies, equipment, etc. Date: August 6, 2021 Report No. 2021-054 o Fees/Funding. Resources to implement the program. Does the program pay for itself, or does the general fund subsidized it?  Registration, license, and program fees  Inspection fees  Re-inspection fees  Self-certification fee  Other fees – Late Fees  Penalties/Fines for violation o Best practices. Performance metrics to streamline processes and monitor activities. o Evaluation. Suppose the outcome is to preserve housing stock, improve habitability for tenants, ensure that the locality receives property taxes, and be good stewards of public funds. In that case, it is vital to make sure that programs achieve desired outcomes:  evaluation of properties’ registration status (including details about any previously unidentified housing units that have been identified);  the number of inspections requested (complaint/proactive) and performed each month by the various types of inspectors;  property owners’ compliance in allowing inspections to be completed within an applicable timeframe;  the total number of violations identified through inspections;  the results of inspections where properties have a previous history of violations;  the number of exemptions requested and granted;  the number of violations prosecuted (or civil warrant process), number and of fines levied and monies collected;  whether the program fees reflect the program costs; and inspections;  an overall assessment of any audits and findings on the program and plans for improvements  Other Potential Costs o Seeking stakeholder input in the design of a program. o Training for code enforcement staff. o Education, Outreach, and Ongoing Support for Landlords and Tenants. o Tenant assistance programs help ensure that displacement resulting from code enforcement efforts does not result in housing instability and homelessness. o Financial assistance grants/programs for low-income landlords to make repairs. o Public access to code violation information. By providing tenants and the public with readily available registration status and code violation information about specific properties, the program can incentivize rental owners to comply with registration requirements and give the community tools for enforcement as well as critical information. Date: August 6, 2021 Report No. 2021-054 CONCLUSION: The City implements code enforcement programs to ensure the safety and welfare of City residents. To address the issue of substandard housing, the City has adopted sections 17-154 thru 17-179 of the Denton Property Maintenance Code (DPMC) that establish minimum standards for safety, sanitation, and human habitation. Rental programs such as the City of Denton Rental Inspection Program ensure safe and healthy housing, preserve housing stock, protect vulnerable tenants, and maintain neighborhood property values. If a new or expanded program is desired, staff would expect to conduct a thorough analysis on the impact of any new initiatives on City resources and operations. STAFF CONTACT: Dani Shaw, Community Services REQUESTOR: (List Council Member Name/Board, Commission or Committee/Staff Initiated) Mayor Pro Tem Meltzer PARTICIPATING DEPARTMENTS: N/A STAFF TIME TO COMPLETE REPORT: (Estimated amount of cumulative staff time to complete the report and associated analysis)  Report and Research: 5.5 hours  Projected Associated Analysis to expand or develop a new program: 80-100 hours.