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HomeMy WebLinkAbout02-16-2017 Item 01 - Rental Housing Inspection Program Workshop Meeting Date: 2/16/2017 FROM: Michael Codron, Community Development Director Prepared By: Teresa L. Purrington, Code Enforcement Supervisor SUBJECT: SPECIAL MEETING REGARDING RENTAL HOUSING INSPECTION PROGRAM RECOMMENDATION Conduct a facilitated workshop designed to enable a diverse group of participants to engage in an open exchange of ideas, define problems, and propose solutions for the Rental Housing Inspection Program. WORKSHOP OVERVIEW The City of San Luis Obispo is hosting a facilitated workshop at the Veterans Hall on February 16, 2017, beginning at 6:00 PM. The agenda involves:  The Mayor and Council Members welcome the community and share their expectations for the workshop.  For information and context, staff provides a brief history of RHIP, outlines current data, and highlights alternative programs used in other communities.  Community engages in facilitated small and large group structures designed to enable a free flow of thoughtful, robust, and innovative discussions with the goal of creating workable solutions.  Community proposes solutions to council for consideration and questions. A brief public comment period to capture individual input.  Time at the conclusion of the meeting for the City Council to consider the proposals and comments, and provide direction to staff on next steps. Facilitators The City has engaged two facilitators to design a process that would support a full discussion of issues and support an open exchange of ideas. Samson Blackwell is a practitioner of both Lean and Liberating Structures approaches. He has facilitated successful small and large-scale change efforts in healthcare, education, and other industries. Scott Radovich is a local attorney who has mediated over 1,500 disputes. BACKGROUND Between 2003 and 2017 various City Councils have identified Neighborhood Wellness as a budget priority with a variety of expected outcomes, including improved safety, improved maintenance and appearance, and improved relationships between neighbors. These work efforts have involved significant cross-departmental collaboration at the City, and enabled increased dialogue between long-term residents and short-tenure residents, such as Cal Poly and Cuesta students. (Agenda Reports for each of the meetings that City Council has discussed the need for Packet Pg. 3 1 a RHIP are available in the Council Reading File, Attachments A - E) Over this same period, the trend of converting single-family, owner-occupied homes to rental units has continued. During past goal setting processes, residents expressed concerns about the impacts this situation has had on the overall quality of life of the City’s neighborhoods, the condition of the City’s housing stock, and resident safety. In the 2013-15 Financial Plan the City Council approved a Major City Goal work program that included a more detailed focus on developing an inspection program. Staff undertook a comprehensive study of various programs throughout California and beyond in an attempt to provide information on best practices for the Council to consider. Another resource used in the development of the current program was “A Guide to Proactive Rental Inspection Programs,” written by Change Lab Solutions, which is based on extensive research on proactive rental inspection programs (Attachment F). The current Rental Housing Inspection Program (RHIP) was implemented last year (the first inspections took place in April 2016). Program Objectives and Public Concerns The objective of the RHIP 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 State Housing Law, State Building Standards, and local property maintenance and zoning standards. However, leading up to and during the implementation of the program, many community members expressed their concerns regarding program cost and invasion of privacy due to the mandatory nature of inspections. The City Council adopted the program with legal requirements and resident concerns about privacy in mind and the program has been implemented consistent with applicable law, based on the following principles in implementing the regulations: 1. The City recognizes that lawful entry for inspections requires either consent by the property owner and/or tenant or a court issued inspection warrant; 2. The Council adopted the program with that awareness and there have never been and will not be any inspections conducted without consent or a court issued warrant. 3. The only potential for prosecution by the City pursuant to the ordinance would be for willful non-compliance with a validly issued court warrant permitting inspection; even in that instance, the City would attempt to work with property owners and/or tenants to identify other workable alternatives to achieve compliance (prosecution as a last resort following obtaining a warrant is reflected in the program flow chart presented to Council prior to program adoption) Attachment G contains an expanded legal analysis regarding the Fourth Amendment and RHIP. Other notable concerns were that the program would reduce the number of bedrooms and units available for rent, and that landlords would simply pass program costs onto tenants, thereby driving up the cost of housing in the City. Attached is current information regarding the results of the inspections that have occurred to date (see Attachment H). Packet Pg. 4 1 Program Alternatives To provide ideas of alternative approaches, a sample of successful programs or program elements from other cities is included below: 1. Allow self-certification (for all initial registrations; or, for all residential units that have received permits and had approved construction within a specified period, e.g. 3 years, prior to the registration date). (City of Santa Cruz and City of Sacramento) 2. Eliminate the mandatory nature of the inspection program (e.g. Safe Housing Certification with voluntary inspection and/or incentives for program participation). (City of Berkeley) 3. Implement an expanded education program for tenant support. (Cal Poly San Luis Obispo) 4. Create an inspection upon sale program to replace generally applicable inspections. (City of Santa Barbara) 5. Consider different programs adopted by other jurisdictions that would be a good fit for the City of San Luis Obispo. Attachments: a - Council Reading File - 03/01/2005 Council Agenda Report - Rental Property Inspection Program b - Council Reading File - 09/29/2009 Council Agenda Report - Strategies To Reduce Neighborhood Noise and Party Disturbance c - Council Reading File - 12/16/2014 Council Agenda Report - Rental Housing Inspection Program d - Council Reading File - 05/05/2015 Council Agenda Report - Rental Housing Inspection Program e - Council Reading File - 05/17/2016 Council Agenda Report - Annual Report Regarding Rental Housing Inspection Program g - Council Reading File - Fourth Amendment Review f - Council Reading File - Change Lab Solutions Proactive Rental Inspection Programs Guide h - Council Reading File - Update on Registation and Inspection for RHIP Packet Pg. 5 1 Page intentionally left blank. Packet Pg. 6 1 3/27/2017 1 Rental Housing Inspection Program Special Meeting - February 16, 2017 Presentation Overview Neighborhood Wellness Background What We’ve Learned from Conducting 915 Inspections Alternative Programs/Approaches to Consider 3/27/2017 2 Neighborhood Wellness 2003-05: Improve Neighborhoods… including consideration of a rental inspection ordinance 2005-07: Continue neighborhood services programs … move forward with Neighborhood Wellness/Community Participation Plan 2007-09: Increase building and zoning code enforcement to promote neighborhood wellness and community appearance 2011-13: Embrace and implement pro-active code enforcement and Neighborhood Wellness Policies 2013-15: Continue to support proactive code enforcement, pursue a residential rental inspection program 2015-17: Improve neighborhood wellness… increase public safety, code compliance, and collaborative solutions Rental Housing Inspection Program Purpose To safeguard the public and preserve the city’s neighborhoods and housing stock Insure that rental units are maintained in a safe and sanitary condition Proactively identify substandard and unsafe residential rental units Ensure rehabilitation or elimination of unsafe conditions 3/27/2017 3 Properties Inspected Inspection Results 915 Inspections performed 152 No corrections needed 422 Corrections completed 341 Corrections outstanding 3/27/2017 4 Inspection Results Most common corrections required… Electrical Smoke Detectors Carbon Monoxide Detectors Water Heaters Electrical Panels Alternative Approaches Within the context of a proactive inspection program… Allow self-certification for all initial registrations (Santa Cruz) Use inspection upon sale approach instead of generally applicable inspections (Santa Barbara) Within the context of a complaint-based code enforcement program… Refocus code enforcement program on priorities to be defined by the City Council with public input Implement an expanded education program for tenants 3/27/2017 5 Alternative Approaches Within the context of an incentive based program. Offer safe housing certificates for property owners that elect to participate (Berkeley) Offer one-stop shop assistance for property owners that are interested in adding bedrooms or making other investments in their properties City Council Questions for Staff Fact sheets are provided to share information learned Staff is available to answer questions for participants during small group discussions