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HomeMy WebLinkAbout05-05-2015 PH1 Rosales.` UNC IL Mi..r_,TlNG: W�$ KJ 4 To: Mejia, Anthony Subject: RE: SLO Chamber of Commerce correspondence for May 5 From: Charlene Rosales [ mailto :charleneCa)slochamber.org] Sent: Tuesday, April 28, 2015 12:13 PM To: Ashbaugh, John; Carpenter, Dan; Christianson, Carlyn; Marx, ]an; Rivoire, Dan Cc: Lichtig, Katie; Johnson, Derek; Dietrick, Christine; Mejia, Anthony Subject: SLO Chamber of Commerce correspondence for May 5 Mayor Marx and City Council Members, RECEIVED APR 28 2015 5L O CITY CLERK Please find attached correspondence from the San Luis Obispo Chamber of Commerce regarding the rental housing inspection program. Thank you, Charlene Rosales Director of Governmental Affairs San Luis Obispo Chamber of Commerce 895 Monterey St., San Luis Obispo, CA 93401 p (805) 786 -2770 f (805) 543 -1255 www.slochamber.org : www.visitslo.com : www.slo- business.com facebook.com/slochamber: @ slochamber April 28, 2015 895 Monterey Street San Luis Obispo, CA 93401 -3278 Ermina Karim, President/CEO City Council City of San Luis Obispo 990 Palm St. San Luis Obispo, CA 93401 Subject: Rental Housing Inspection Program Dear Mayor Marx and Council Members: The San Luis Obispo Chamber of Commerce recognizes that the City appears to be moving forward with creating a new rental inspection ordinance and want to provide input to further the shared goal of ensuring the health and safety of tenants and neighbors, while at the same time, providing recommendations to consider in order to craft a program that is more economically sustainable and considers the needs of residents and property owners. The Chamber began studying the issue of a rental housing inspection program in April 2014, following the City Council's interest in exploring - and potentially - developing a new ordinance. The topic has since been studied most recently with our Issues Evaluation Committee in February of this year and at subsequent discussions at the subcommittee and Board of Directors level. All along, we have been supportive of the goals of health and safety in rental housing and have encouraged the City to develop a program that emphasizes tenant rights and responsibilities education and property-owner self - certification rather than proactive city- conducted inspections. We continue to believe that most property owners and managers in San Luis Obispo are responsible and maintain their rental properties to ensure compliance with City codes and the safety of their tenants. However, there are some property owners who fail to maintain rental properties to acceptable standards and those are the owners that a new inspection program should be focused on. A three -year inspection cycle of all properties in the City creates a tremendous investment in time and personnel costs. Such a program could become very costly to all rental property owners as it is proposed to have 100% cost recovery but no cost controls are in place to manage the program expense over the long- term. We urge you to create a e program centered around a self- certification process as a method to recognize responsible property owners and contain the costs of the program rather than mandatory inspections for all. We recommend that 10% of all self- certified properties could be inspected on a rotating basis each year to ensure compliance with the City health and safety standards. When these properties are inspected, they T 805.781.2670 F 805.543.1255 E slochamber @slochamber.org slochamber.org visitslo.com slo- business.com 895 Monterey Street San Luis Obispo, CA 93401 -3278 Ermina Karim, President/CEO would pay the full inspection fee for the services received. We believe that this program should focus on those with history of having violations in the last five years and significant complaints; re- inspection and fines could be levied on the subset of properties which are currently in violation on a graduating scale if the violations are not addressed. This is a more strategic and cost - effective approach to addressing the current challenges. We suggest that the program be designed to have a lower cost structure than is currently proposed, similar to the City of Sacramento which includes a small annual fee such as $16 per rental unit and $127 per each new rental unit inspected. Provided there are no violations found with the property within the previous five years, the owner would quality for self - certification. The re- inspection fees could be waived for proof that any violations have been corrected. The Chamber recommends that there be a standardization to the complaint and tracking processes. Complaints could include contact information, property address at issue, description of complaint, photos if possible, and steps attempted to resolve issue with property owner. Lastly, we encourage the development of proactive communication tools so new rental property owners are notified by the City that they must obtain a business license and allow inspection of a property to occur within six months. If a property owner is in compliance, they can enter the self- certification process. We support the creation of other methods of awareness for renters and property owners such as a "Residents' Rights and Responsibilities" that can be distributed through property management firms, on the City's website, through Cal Poly and Cuesta College and other distribution points to help strengthen owner /tenant education. Rather than burden all rental property owners with what is being proposed, we urge the development of a more simplified program that effectively targets the issue of substandard and unsafe conditions, and is a component of an overall approach for improved neighborhood wellness. Thank you for considering the recommendations we have submitted which are intended to provide more fairness, sustainability and cost effectiveness should a new rental housing inspection program be adopted. Sincerely, ovv� �"t Cheryl Cuming Chair of the Board 2015 T 805.781.2670 F 805.543.1255 E slochamber @slochamber.org slachamber.org visitalo.com slo- business.com