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HomeMy WebLinkAboutStudy Session Packet 09-24-12SPECIAL STUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE , COLORADO 7500 W . 29 th Ave. Wheat Ridge CO September 24, 2012 Upon adjournment from City Council Meeti ng Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer. Administrative Services Director at 303~235-2826 at least one week in advance of a meetmg if you are interested in participating and need inclusion assistance. PUBLIC COMMENT ON AGENDA ITEMS APPROVAL OF AGENDA .1 Mu lti-fa mily Housing Inspection/Registration P rog ra m ADJOURN TO EXECUTIVE SESSION .1 City Manager Annu al Eva lu ation ~ I .( 4 .. City of ff Wheat~rTe ...?'c"oMMUN I TY 0EVELOJ>M[NT ~ TO : THROUGH: FROM: DATE: SUBJECT: UPDATE : Memorandum Mayor and City Council (\ 1 Patrick Goff. City Manager 1~ Ken Johnst one, Community Development Director ~~ September 24, 20 J 2 City Council Study Session 0 Multi-Fan1ily Property Inspection/Registration Program On March I 5, 20 I 2. City Council held a study session on the topic of MF property maintenance and the potential for a registration/inspection program being initi ated. All members of City Council were in attendance. A summar y of th e direction provided by Council is provided later in this memo. Based on this direction and some addit ional research and work by s taff, we have drafted a brief outline oft he proposed multi-family rentaJ property regi strat ion/inspection program. We have aJso completed some analysis of resource needs to administer the described program, which are discussed later in thjs memorandum. For next steps, we anticipate doing outreach to affected interest groups, including the Denver Metro Association of Realtors and tenant advocacy groups. We are still in the process of finalizing that Ji st of interest groups to reach out to in the next several months. With direction from City Council and budget authorization, we are prepared to implement lhc program in 2013. As with any new program such as this. it will be important to have a public educatio n campaign to get the word out on the new program. Following is a summary of City Council direction to date. Prooertv Maintenance Codes: City Council directed staff to cons1der adoption of locaJiy amended version of20 12 TPMC. Local amendments would focus on exterior property maintenance (aesthetics and lifelsafetylhcalth) and interior property maintenance (life/safety). We are intending to consider adoption of all of the 20 12 lntemational Codes in 2013, so we propose to include the necessary LPMC amendments during that process. In the interim. the 2003 version of the IPM C is still in place and it can be enforced in the appropriate manner, as described in our program descriptjon. Types of properties to include in registration/inspection program: Council's consensus was to include l 0+ unit complexes in registration and programmatic inspection program. City Council still had some interest in regi stering smaJ ier unit rental properties, perhaps in a vol untary or inccntivized registration program. As noted previously, buildings with I 0+ units constitute approximately 1/3 of our rental housing stock. Nearly 25% of rental housing in the City is one and two-family homes. The balance of the rental housing, nearly 40% is in buildings with three to nine units. To be most effective and address some of the more poorly maintained rental housing, staff believes there is merit in expanding the program to include smaller unit buildings: however. it might be appropriate to consider such an expansion after the initial implementation of the program in 2013. Interior vs. Exterior: City Council directed that the probrram should address both. with the caveat that the inspection program design will affect the extent to which we are conducting programmatic inspection of the interiors of some rental properties. It was undecided whether mandatory registration/inspection of larger projects (I 0+) would include interior inspections. For nine-unit complexes and less. interior inspections would likely be complaint based. Many of the life/safety issues relate to interior building issues. We would recommend that the program be structured to include interior inspections for the larger buildings (I 0+ unit buildings). Registration requirements: City Council's preliminary direction was that at a minimum the mandatory registration wou1d apply to I 0+ unit complexes. As discussed above, we are still considering whether nine-unit complexes and less may ha"e a voluntary registration requirement. We arc proposing an annual base fee of$25 for each property. which includes the first rental unit. and a $5 fee for each additional unll. For a I 0-unit building. that would represent a S70 annual fee. We estimate revenue generation of approximately S I 0.000 based on 1.873 residential units in buildmgs wtth I 0+ units. Program Implementation: At the time of the March study session. it was stiJI undetermined whether the pro&rram would be best implemented through the Community Development Department or Po lice Department. The Police Depart ment's Community Service Team currently does all other field code enforcement work. However. given the technical nature of the building code issues. particularly those pertaining to plumbing. electrical and mechanical systems, we have determined this new program would be best housed in the Building Division of the Community Development Department. To soften the impact of the program. in1plementation will need to be phased and incentivized and include extensive public outreach to both the renter and landlord interest groups. In the attached program description. we have provided our general approach to incentivize early participation in the program during the first ~of 2013. Inspection fees are estimated to generate approximately $20.000 in annual revenues. Resource needs: It is estimated that one full time building/housing inspector will be needed along with a 0.5 FTE administrative position. There will also be additional resource needs in tem1s of vehicle. clothing, equipment. etc. It is estimated that the program will cost approximately $100,000 to $125,000 annually. 2 POL ICY DIRECTION: At the September 24 study sess ion, staff is req uesti ng to mo ve forward with program implementation for a rcmaJ hou sing in spectio n program as outlined in thi s memo and the attached program description. As is noted in the schedule on page tw o of the attached program description. we wou ld then conduct some targeted special interest group outreach and prov ide that feedback to City Council la ter thi s year. We are targeting a March I, 2013 program soft start date, with the progra m fully in effect in September 2013. One remaining policy question is whether to have mandatory implementa t ion o f the program on property with fewer than I 0 units. We request City Council di scuss ion and direction on that topi c at the study sessio n. Attac hme nts : l. MF Rental Housing Inspection/Regi stration Program Out li ne 3 Multi-fa mily Renta l Hous ing lnspecti on/R egi stration Prouam Septem ber 2012 DRAFT OUTLINE Prog ram purpose: The multi-fam ily re n tal housing inspection/registration program (insert catchy name here) was established by City Council in 20 I 2 to ensure the health and safety of tenants and to p rotect private property values. Applicable cod es: Wheat Ridge has adopted the 2006 editions of the International Codes and the 20 I 2 edition of the International Property Maintenance Code, with local amendments intended to focus on the most critical health and safety concerns in our rental housing stock. The property maintenance codes apply to both interior and exterior p roperty maintenance. Examples of th e types of items that a rc typica ll y reviewed during the inspectio n process include the fol1owing: • Heating systems. including the fuel delivery and exhaust systems (fuel leaks or exhaust leaks) • Water heater. including the fuel delivery and exhaust systems • Electrical service. outlets and electrical system generally • Smoke and carbon d ioxide detection and a larm systems • Any other fuel fired app lia nce fue l delivery and exhaust systems • Life safety items such as egress and hazardous window g lazing (non-tempered glass adjacent to a tub/s hower -for example) • General maintenance issues, including roof performance (leaks). plumbing system, working appliances, sealing and function of the exterior envelope (windows, screens, etc.) Reg is trat ion/li ce n sin g/fe es: Beginnjng on March I, 2013, all residentia l rental properties with I 0 or more units in one bui I ding or o n one parcel are required to register the property with the City of Wheat Ridge Building Division, Housing Inspection Program in order to obtain a Residential Renta l Property License. This is in addition to the need to obtain a City business license. Fees for the Residential Rental Property License are $25 for the initial unjL plus $5 for each additional u nit in the building or on the property. Licenses are renewed annually (mirror business license I contractor license requirements and process (notifications)). In sp ection procedures: Initia l inspect ion: All affected residential units a re requi red to have an initial inspection at the outset of the program. Property owners and/or their registered agents must request an inspection through the City's Building Division. It is the City's intent to inspect all units in a 3-year timeframe. To encourage early participation in the program, those affected property owners registering to obtain a license and requesting an initial inspection by August 31, 2013 will not be charged an initial inspection fee. Fees for initial inspections requested beginning September 1. 2013 will be $30 for the first unit and $1 0 for each additional unit in the project or on the 1 property. Revenues from inspections are estimated to be approximately $20,000 annually. ln the event a property owner requests an initial in specti on prior to September I. 2013 and the City is unable to schedule the inspection until after September 1, 2013. the a bove noted fe e waivers will continue to be honored. Upon receiving final inspection approvals from the Building Division, the property owner will be awarded a Certificate of Compliance. The cenificate shall be valid for a period of 3 years. Ongoing inspections: At the conclusion of the 3-year period. unless a valid complaint triggers an inspection of the property sooner. the property owner wi ll be notified ofthe need to request a renewal of their Cenificate of Completion. with associated inspections . The property owner will be required to be present during the in spection and the property owner will be responsible for all coordinat1on with the tenant(s) to minimize those impacts. FAQs: Will need to be developed once we have received final direction from Ci ty Counci l Program Jmple mcntati o n : 2012/13 Implementation prog ram : • 3rd quarter -study session with City Council (September 24, 2012) on detailed outline (tlus document) of the program • 3rd and 4 1h quarter -get input from stakeholder groups (BCAB, Tenant Advocacy organizations, Property manager associations)-September • 4 1h quarter -bring that input back to City Council for consideration and final direction on program • 41h quarter -evaluate resource needs during 20 13 budget cycle (staffing, space. vehicl es, other equipment , also consider outsou rci ng portions of the program) • Implement in 1'1 quarter 20 13 -soft opening to program in early 2013, public infom1ational outreach (need to thjnk more about what venues arc mos t appropriate) 2