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HomeMy WebLinkAboutO-1616 Rental Housing Inspection ProgramORDINANCE NO. 1616 (2015 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 15 OF THE MUNICIPAL CODE BY ADDING CHAPTER 15.10 AND ESTABLISHING A RENTAL HOUSING INSPECTION PROGRAM WHEREAS, California Health and Safety Code sections 17910 - 17998.3 establish minimum standards for the maintenance of housing units, authorizes local enforcement of state housing laws and adopted building codes, and specifically authorizes the adoption of proactive programs for housing inspections; and WHEREAS, the City Council of the City of San Luis Obispo has expressed its desire and intent to ensure the preservation of the city's neighborhoods as embodied in its adoption of the Major City Goal of Neighborhood Wellness; and WHEREAS, the proportion of the housing stock within the City of San Luis Obispo ( "City ") that is comprised of rental dwelling units has grown significantly over the past 30 years and is well above the statewide average; and WHEREAS, over the past several years, the City has experienced an increased level of complaints regarding the existence of substandard rental housing within the R -1 and R -2 zones; and WHEREAS, City Code Enforcement records indicate that a majority of health and safety related violations within the City are attributable to single family and duplex rental dwelling units. Specifically, in 2013, 79 % of all code enforcement violations within residential zones were attributable to rental units, 80% of which involve substandard, overcrowded and unsanitary conditions of single family and duplex units in the R1 and R2 zone districts; and WHEREAS, the City Council acknowledges that certain transient uses (hotels, motels and bed and breakfast establishments) and multifamily units in the R -3 and R -4 zone districts are currently subject to annual inspections by the City Fire Marshall, which, among other things, contributes to better awareness and maintenance of such units; and WHEREAS, the City Council finds that rental dwelling units within the R1 and R2 zone districts often lack proactive property management and other similar devices typically found in multi- family developments within the R -3 and R -4 zones such as CC &Rs, common areas or homeowners associations which help maintain property maintenance standards and mitigate the potential for substandard housing; and WHEREAS, deficient and substandard housing has many detrimental effects on the stability of the city's neighborhoods, is environmentally undesirable, creates unsafe living 01616 Ordinance No. 1616 (2015 Series) Page 2 conditions for tenants and neighbors, contributes to blight, negatively affects property values, and is otherwise detrimental to the health, safety and welfare of the community and its citizens; and WHEREAS, based on previous code enforcement activities and extensive community outreach, the City Council finds that tenants within the City are reluctant to report Building Code violations or other dangerous conditions to the City in fear of retaliation by their landlord despite state laws that make it unlawful for any retaliation to occur; and WHEREAS, the City's code enforcement program typically only inspects the interior of dwelling units upon the request of tenants and or complaints by neighbors that provide adequate information to initiate a complaint or to obtain an inspection warrant pursuant to California Code of Civil Procedure Sections 1822.50 through 1822.57; and WHEREAS, the City Council finds that there is a need for a proactive and systematic program to inspect rental housing units within the R1 and R2 zone districts in order to better identify, address and correct substandard living conditions within this part of the City's rental community; and WHEREAS, the City Council of the City of San Luis Obispo desires to provide for safe, livable and attractive neighborhoods and finds that the adoption and implementation of a rental housing inspection program will promote public health and safety of the community by the elimination of substandard housing conditions, and will promote community standards for the maintenance of properties and will otherwise further the City's goal of Neighborhood Wellness. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and incorporated herein by this reference as the findings of the City Council. SECTION 2. Environmental Determination. The proposed ordinance is exempt from environmental review per California Environmental Quality Act ( "CEQA ") Guidelines section 15061(b)(3) because the ordinance strengthens current provisions of the Municipal Code relating to code enforcement and housing and it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. The ordinance consists of the inspection of existing residential dwelling units, including single - family dwellings, duplexes, and second dwelling units, which are rented or leased and used for residential purposes. The ordinance does not involve any physical modifications to the environment. Additionally, the proposed ordinance is categorically exempt from environmental review pursuant to CEQA Guidelines sections 15308 (Protection of the Environment), 15309 (Inspections) as the proposed rental inspection program consists of regulatory action by the city authorized under state and local ordinance to assure that the maintenance of rental properties which are rented or leased and 01616 Ordinance No. 1616 (2015 Series) Page 3 used for rental residential purposes are in compliance with local and state laws. Lastly, the program is exempt pursuant to 15321 of the CEQA guidelines as it consists of enforcement and inspection actions by the City of San Luis Obispo to enforce building and zoning codes and standards and other applicable housing codes (Enforcement Actions). The project involves updates and revisions to existing regulations. The proposed code amendments are consistent with California law, specifically the California Health & Safety Code Sections 17920 - 17998. The proposed ordinance consist of regulatory enforcement actions and inspections that are intended to protect the health and safety of neighborhoods and it can be seen with certainty that the proposed ordinance will have no significant effect on the environment. SECTION 3. Action. Chapter 15.10 of the San Luis Obispo Municipal Code establishing a rental housing inspection program is hereby added to read as follows: Chapter 15.10 - RENTAL HOUSING INSPECTION 15.10.010 - Purpose and intent. The purpose and intent of this chapter is to safeguard the public and preserve the city's neighborhoods and housing stock by insuring that rental housing units are maintained in a safe and sanitary condition in accordance with the State Housing Law, State Building Standards, and local property maintenance and zoning provisions. The further purpose and intent of this chapter is to proactively identify substandard and unsafe residential rental units and to ensure their rehabilitation or elimination. This chapter is further intended to enhance the quality of life for all residents of the city, whether living in rental or owner - occupied dwelling units. 15.10.020 - Definitions. As used in this chapter: "Building, housing, and sanitation codes or ordinances" shall refer to: the current adopted codes specified in Title 15 of the San Luis Obispo Municipal Code, as modified. The phrase "building, housing and sanitation codes or ordinances" shall also refer to the City of San Luis Obispo Zoning Ordinance as codified in Title 17 of the San Luis Obispo Municipal Code, City of San Luis Obispo Subdivision Ordinance as codified in Title 16 of the San Luis Obispo Municipal Code, and all provisions of California statutory law and the San Luis Obispo Municipal Code pertaining to property- related sanitation, maintenance, health, safety and nuisance, as well as regulations promulgated pursuant to California statute, for which the city has enforcement authority. "Building Official" means the person designated as the Chief Building Official by the City Manager, or his or her designee. "Community Development Department" means the San Luis Obispo Community Development Department. "Director" means the Community Development Director. "Inspection Fee" means the amount charged for the inspection of each unit and includes an initial inspection and one subsequent inspection if required. 01616 Ordinance No. 1616 (2015 Series) Page 4 "Nuisance" shall have the same meaning as set forth in California Civil Code Section 3479, or any condition as defined in chapter 8.24 et seq. of this Code, or any condition declared and deemed by the City Council to constitute a nuisance, or any violation of the San Luis Obispo Municipal Code. "Owner" or "Owners" means the person, persons or entity identified and listed as having title to one or more Residential Rental Dwelling Unit(s) by the latest property tax assessment roll maintained by the San Luis Obispo County Tax Assessor. "Person" means an individual, corporation, partnership, association or other legal entity. "Registration Delinquency Fee" means a fee established by resolution of the City Council and imposed to Owners who fail to register each Residential Rental Dwelling Unit with the city and submit a completed Rental Registration Form and Rental Registration Fee pursuant to the requirements of this chapter. The Registration Delinquency Fee shall be in addition to the Rental Registration Fee(s) computed from the first date when the person engaged in the residential rental business in the city after the effective date of this chapter. The Registration Delinquency Fee shall add a penalty of twenty (20) percent of the Rental Registration Fee on the first day of the month following the due date and ten (10) percent for each month thereafter while the fee remains unpaid, provided that the amount of the penalty shall not exceed fifty (50) percent of the amount of the fee due. "Re- inspection Fee" means a fee established by resolution of the City Council and, except as provided in this chapter, is imposed on Owners who (1) fail to pass an initial inspection and one follow -up inspection for a Residential Rental Dwelling Unit, (2) fail to provide access for any scheduled inspection, or (3) re- inspection cannot be made to a Residential Rental Dwelling Unit by the Inspector due to a failure to provide access. "Rental Registration Fee" means the annual fee established by resolution of the City Council charged to the Owner(s) of each Residential Rental Dwelling Unit within the scope of this chapter, and intended to cover a portion the administrative costs of the rental inspection program. This fee is payable each and every year. "Residential Rental Dwelling Unit" means single- family dwellings, duplexes, and second dwelling units, which are rented, leased, or held out for rent or lease, or otherwise used for residential rental purposes, including any curtilage, structures or buildings on the property on which the Residential Rental Dwelling Unit is located within the San Luis Obispo City limits, except as otherwise exempted in this chapter. This definition excludes multifamily dwellings having three or more dwelling units within a structure and transient type occupancies (hotels, motels and bed - and - breakfasts). "Self- Certification Checklist" means a list developed by the Building Official to be used by an Owner enrolled in the self - certification program to evaluate a Residential Rental Dwelling Unit for compliance with applicable local and state laws. "Self- Certification Fee" means the fee established by resolution of the City Council an Owner shall pay if he or she wishes to apply for the self - certification program. This fee is payable upon application into the self - certification program once for each three (3) year cycle and is a flat fee for each Property with a Residential Rental Dwelling Unit. 01616 Ordinance No. 1616 (2015 Series) Page 5 "Substandard Dwelling" means a Residential Rental Dwelling Unit that is in violation of any building, housing, and sanitation codes or ordinances or any condition which is defined as constituting a substandard building or dwelling as defined by California Health and Safety Code Section 17920.3. 15.10.030 — Scope and Applicability. A. The provisions of this chapter shall apply to all Residential Rental Dwelling Units and any curtilage, structures or buildings on the property on which the Residential Rental Dwelling Unit is located within the San Luis Obispo City limits, except as otherwise exempted in this chapter. B. Provisions of this chapter shall be supplementary and complementary to all of the provisions of this code, State law, and any law cognizable at common law or equity, and nothing herein shall be construed, read, or interpreted in any manner so as to limit any existing right or power of the city to abate and prosecute any and all nuisances or to enforce any other conditions in violation of State or local codes, including, but not limited to, any building, housing, property maintenance and public nuisance violations. 15.10.040 - Inspections; Compliance with Applicable Codes and Standards. A. Inspections. The Building Official, or his or her designee, hereinafter referred to as the "Inspector," is authorized to periodically inspect all Residential Rental Dwelling Units to determine whether such Residential Rental Dwelling Units comply with applicable provisions of all building, housing and sanitation codes or ordinances. B. Compliance with Codes and Standards. When inspections are made under this chapter, Residential Rental Dwelling Units shall be required to be constructed in accordance with the code standard that was in effect at the time the Residential Rental Dwelling Unit was constructed, altered, remodeled, erected or converted pursuant to a validly issued permit. Unpermitted construction, additions and /or alterations must comply with current all building, housing and sanitation codes or ordinances adopted by the City, unless otherwise provided by law. C. If an inspection is scheduled and entry is thereafter refused or cannot be obtained, the inspector shall have recourse to every remedy provided by law to secure lawful entry and inspect the premises, including, but not limited to, securing an inspection warrant pursuant to California Code of Civil Procedure Sections 1822.50 through 1822.57. Notwithstanding the foregoing, if the Inspector has reasonable cause to believe that the Residential Rental Dwelling Unit is so hazardous, unsafe or dangerous as to require immediate inspection to safeguard the public health or safety, the Inspector shall have the right to immediately enter and inspect the premises and may use any reasonable means required to effect the entry and make an inspection. 15.10.050 - Registration, Application and Implementation. A. Beginning on January 1, 2016, it shall be the responsibility of the Owner of each Residential Rental Dwelling Unit within the city to register each unit with the Community Development Department on a form provided by the Community Development Department and pay the 01616 Ordinance No. 1616 (2015 Series) Page 6 Rental Registration Fee. For Residential Rental Dwelling Units acquired, constructed or converted into residential rental property on or after January 1, 2016, registration shall take place within sixty (60) days of the date the Residential Rental Dwelling Unit is acquired, constructed or converted into residential rental property; or within thirty (30) days of the date on which written notification is mailed to the Owner of Residential Rental Dwelling Units by the Community Development Department, whichever event occurs first. All registrations shall be subject to verification by the Inspector. All information on said registrations shall be submitted under penalty of perjury. Any person who makes a false statement in the registration or submits false information in connection with a registration shall be in violation of this chapter. B. If the Owner of a Residential Rental Dwelling Unit fails to register or reregister such units in compliance with this chapter, the Owner shall be subject to a Registration Delinquency Fee and the Building Official may register or reregister said units in the name of the Owner and set a date and time for initial inspection of said units, and shall send written notification to the Owner that the property has been so registered and advising of the date and time set for inspection. C. Initial implementation of inspections may be completed over a four (4) year period and priority shall be given to the inspection of Residential Rental Dwelling Units which have been found in violation of the any building, housing and sanitation codes or ordinances in the last five (5) years. Priority shall also be given to Owners that request an inspection. Following the initial inspection of a Residential Rental Dwelling Unit, it may be re- inspected upon proper notice if a complaint is received or if the Inspector has reasonable cause to believe that unit is in violation of any Building, housing and sanitation codes or ordinances. D. Thereafter, the inspection of each Residential Rental Dwelling Unit shall be scheduled on a three year cycle, unless a unit has been accepted into the self - certification program. 15.10.060 - Notification of Inspection and Inspection Procedures. A. The Building Official shall mail a notice of a scheduled inspection to the Owner of each Residential Rental Dwelling Unit to the address provided on the registration form. The Owner, or any authorized agent or legal representative thereof, shall permit an inspection of each Residential Rental Dwelling Unit by the Inspector upon thirty (30) calendar days' notice of the time and date of the scheduled inspection. An extension to a scheduled inspection may be granted by the Inspector. B. It shall be the responsibility of the Owner to provide actual notice to the individual tenants of the Residential Rental Dwelling Unit and to facilitate access to the units to be inspected. C. If an inspection is rescheduled by the Inspector, a notice shall be mailed to the Owner and tenant at least three (3) business days prior to the scheduled inspection date. D. An inspection may be rescheduled one time by the Owner without penalty or Re- inspection Fee upon written request three (3) business days prior to the date of inspection. Within ten (10) business days of the initial inspection date the Owner shall schedule a new inspection. E. An Owner shall be charged a Re- inspection Fee for failure to provide access to a Residential Rental Dwelling Unit for inspection. 01616 Ordinance No. 1616 (2015 Series) Page 7 F. The Owner or an authorized agent or legal representative of the Owner shall be present during the inspection. G. The Owner shall not be in violation of this section if the tenant or occupant refuses to allow the inspection by the City. The Owner shall provide proof, under penalty of perjury, that a request to inspect the Residential Rental Dwelling Unit was served by the Owner and inspection was not permitted by the tenant. 15.10.070 - Annual Rental Registration Fee. The Owner shall pay an annual non - refundable Rental Registration and Administration Fee. The fee is intended to cover a portion of the cost of administration of the rental housing inspection program for a fiscal year, exclusive of the costs covered by the Inspection, Re- inspection or Self- Certification Fees, and shall be billed and payable annually with the Business License Fee. Payment of a Business License Fee without payment of a Rental Registration Fee shall be deemed a violation of this chapter. 15.10.080 — Inspection and Re- inspection Fee. A. Upon notice to the Owner of a scheduled inspection, an Inspection Fee for the initial inspection shall be due prior to the date of that inspection. The Inspection Fee shall be established by resolution of the City Council and if not paid by the day of inspection shall be delinquent and shall add a penalty of twenty (20) percent of the Inspection Fee on the first day of the month following the due date and ten (10) percent for each month thereafter while the fee remains unpaid, provided that the amount of the penalty shall not exceed fifty (50) percent of the amount of the fee due. B. The Inspection Fee includes the cost of the inspection and one compliance re- inspection, if necessary. If the Owner fails to correct any violations by the first compliance re- inspection, the Owner shall pay a Re- inspection Fee for the second and subsequent compliance re- inspections. 15.10.090 - Exemptions. The following are specifically exempted from the provisions of this chapter: A. Mobile home units within mobile home parks regulated by the California Department of Housing and Community Development. B. HUD Section 8 Housing Units or equivalent housing units C. Dwelling units owned or managed by a government agency. D. Residential Rental Dwelling Units that are occupied by the registered Owner or Owners as recorded with the County of San Luis Obispo's Clerk- Recorder's Office. Additional information may be required by the Community Development Department to determine that the property is occupied by the registered Owner or Owners. 15.10.100 - Self - Certification Program. A. Residential Rental Dwelling Units found to be in compliance with all applicable building, housing, and sanitation codes or ordinances, pass an initial inspection, do not have a record of other code violations within the past three (3) years, and have no outstanding unpaid code 01616 Ordinance No. 1616 (2015 Series) Page 8 violation fines or pending code enforcement actions, are eligible for the self - certification program during the next three (3) year inspection cycle. Upon receipt of the request to participate in the self - certification program, the Director shall determine if the Residential Rental Dwelling Unit(s) qualifies for the self - certification program and shall notify the Owner of such determination in writing. If the Residential Rental Dwelling Unit(s) qualifies for the self - certification program the Owner shall pay the Self- Certification Fee. If the Director determines that a Residential Rental Dwelling Unit does not qualify, the Owner will be assessed the Inspection Fee and the Residential Rental Dwelling Unit will be inspected. B. If eligible, the Building Official shall mail the Self - Certification Checklist to the Owner sixty (60) days prior to a due date. The Owner shall perform a physical inspection of the interior and exterior of the Residential Rental Dwelling Unit, any accessory buildings or structures, complete the checklist, certify that it is complete and accurate, and return it and to the Community Development Department within forty -five (45) days of receipt of a request by the city to complete a Self - certification checklist. The failure of an Owner to submit a Self-Certification Checklist within forty five (45) days shall be a violation of this chapter and shall be grounds for the removal of the Residential Dwelling Unit from the self - certification program. The Owner shall correct any violations of any building, housing, and sanitation codes or ordinances and obtain any planning and building permits if required that are identified on the Self- Certification Checklist within thirty (30) days of the inspection or make a request in writing to the Inspector for additional time to make corrections if needed. The Owner shall correct any and all deficiencies by the due date determined by the Inspector. A final checklist shall be submitted by the Owner within ten (10) days of correcting any such violations. C. The Building Official may cause up to ten (10) percent of Residential Rental Dwelling Units that are enrolled in the self - certification program to be randomly inspected in a given year. The Owner shall not be charged an Inspection Fee for the inspection if violations of any building, housing, and sanitation codes or ordinances are not discovered as a result of the inspection, however, an Inspection Fee shall be charged if violations are discovered as a result of the inspection. D. Any Residential Rental Dwelling Unit that participates in the self - certification program may be removed from the program for a period of three (3) years, if at any time the Residential Rental Dwelling Unit is determined to be in violation of any applicable building, housing, and sanitation codes or ordinances. If a Residential Rental Dwelling Unit is removed from the self - certification program, the difference between the Self - Certification Fee and the Inspection Fee shall be immediately due and payable. E. The Self- Certification Checklist shall be submitted under penalty of perjury. Any person who makes a false statement in the Self - Certification Checklist or submits false information in connection with a Self - Certification Checklist shall be in violation of this chapter. F. The Owner shall not be in violation of this section if the tenant or occupant refuses to allow the Self- Certification inspection by the Owner. The Owner shall provide proof, under penalty of perjury, that a request to inspect the Residential Rental Dwelling Unit was served by the Owner and inspection was not permitted by the tenant. 01616 Ordinance No. 1616 (2015 Series) Page 9 15. 10.110 - Violations. A. Any violation of the provisions of this chapter by any person is a misdemeanor and is punishable as provided in Chapter 1. 12, of this code. Any violation of the provisions of this chapter by any person is also subject to administrative fines as provided in Chapter 1.24 of this code, which may be appealed pursuant to the procedures in that Chapter 1.24.. B. Violations of this chapter are hereby declared to be public nuisances. C. In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the city attorney, including but not limited to administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. SECTION 4. Review by City Council. After the implementation of this chapter has been in effect for (1) year, the Director shall provide a report to the City Council regarding the administration and efficacy of the program. Thereafter, the Director shall provide annual reports to the City Council for the next four (4) years. Fees shall be reviewed one (1) year after implementation and periodically thereafter and adjusted to insure compliance with California Government Code section 66014 and to insure that the program is self - supporting and revenue neutral. SECTION 5. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the city's rules and regulations. It is the city's express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 6. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this city. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. A copy of the full text of this ordinance shall be on file in the Office of the City Clerk on and after the date following introduction and passage to print and shall be available to any member of the public. SECTION 7. Effective Dates. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. 01616 Ordinance No. 1616 (2015 Series) Page 10 INTRODUCED on the 5th day of May 2015, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 19th day of May 2015, on the following roll call vote: AYES: Council Member Christianson, Vice Mayor Ashbaugh and Mayor Marx NOES: Council Members Carpenter and Rivoire ABSENT: None Mayor " I Marx ATTEST: r Christine D €ctri City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this '_ day of VA Zn 1,0 City Clerk 01616