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Landlord's Priority Category Owner/Agent Guidesheet Copyrighted February 18, 2019 City of Dubuque Consent Items # 9. ITEM TITLE: Landlord's Priority Category Owner/Agent Guidesheet SUMMARY: City Manager providing information on a Landlord's "Priority Category" designation and a recently created guide sheet. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type Priority Category Designation Policy Guide Sheet-NNM City Manager Memo Memo Staff Memo Staff Memo Priority Category Policy Guidesheet Supporting Documentation Tered Inspection Policy Guidesheet Supporting Documentation THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Priority Category Designation Policy Guide Sheet DATE: February 13, 2019 Housing and Community Development Director Alexis Steger is providing information on a Landlord's "Priority Category" designation and a recently created guide sheet. �laJ�'�u� [�w�.��/�„"�_� Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alexis M. Steger, Housing and Community Development Director Dubuque Housing and Community Development TxE ciTY oF ��1 Assisted Housin Pro ram u��Americ�cib � g g D�� � �����r � 350 W. 6�' Street, Suite 312 Dubuque, IA 52001 Masterpiece on the Mississippi 20°7�2°'� �oP oR uNs'r"Y Office (563) 589-4230 wii�zoi, TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director DATE: February 12t", 2019 RE: Priority Category Designation Policy Guide Sheet DISCUSSION The tiered inspection program was adopted and implemented July 1, 2018. The "priority category designation" is a separate from the tiered inspection program and has been in place for some time, but has not been used by the City of Dubuque in the past. A priority category designation can be used when a property owner or agent has received 3 of any of the following in a 12-month period: • Suspension of Rental License(s) • Revocation of Rental License(s) • Issuance of citation(s) for property maintenance code violations • Failure to perform criminal background check • Prolonged failure to comply with orders To provide additional information, a guide sheet was created and is attached. This provides information on how to be removed from the priority category designation, how long the monitoring period is for, and any other pertinent information a property owner or agent may need to understand what it means to be designated as a priority category property owner or agent. Highlights of the policy include: • 2-year minimum of extensive monitoring • Additional 5-year minimum of annual self-inspections and reporting • No new rental licenses will be approved in a 2-year period • New rental license applications in year 5-7 require approval from the Housing Code Official • All new violations re-set the timeline for priority category designation • Not eligible for reduced penalties • Designation will not be removed for a minimum of 7-years RECOMMENDATION This policy is already in effect. This Guide Sheet was created to make the policy clear, concise and understandable to all property owners and agents. No action is required. PRIORITY CATEGORY POLICY GUIDESHEET Basis used to designate a property owner or agent as "Priority Category' A property owner or agent will be designated as "Priority Category" when in a twelve (12) month period, the property owner or agent has had three (3) instances of any of the following occurrences: • Suspension of License(s) • Failure to perform criminal background check • Revocation of Rental License(s) • Prolonged failure to comply with orders • Issuance of citation(s) for property maintenance code violations Notice Notice of the designation must be provided to the designee in writing with a description of the basis for the designation and must inform the designee of all appeal rights and that failure to appeal will constitute a waiver of all rights to an appeal Inspection of properties owned by priority category Inspection requirements for properties owned/operated by a priority category owner/manager will be determined by the Housing & Community Development Department Director with input from the Licensing & Inspections Supervisor. Notices of inspection will be provided to the priority category designee along with an overall inspection/compliance plan. Designation status REMOVAL OF PRIORITY CATEGORY DESIGNATION PRIORITY CATEGORY - EXTENDED MONITORING PERIOD PRIORITY CATEGORY DESIGNATION - PRIORITY CATEGORY After a minimum of two years of intensive For five (5) years following the designation, the property An intensive property assessment will be performed DESIGNATION STATUS monitoring and a minimum of 5 years of self- owner will be required to perform annual self-inspections by staff and a plan of action with inspection inspections and reporting or 7 years after of all properties owned/managed. Documentation of schedule will be determined following the designation, a priority category may appeal to the self-inspections including results must be provided each designation. The priority category designation will Housing Board of Appeals to have the designation year along with the rental license renewal. Failure to remain in effect for a minimum of two (2) years removed. submit required self-inspection documentation will result following the designation. in municipal infractions and re-setting priority category designation. RESTRICTIONS PLACED ON No restrictions Application for rental licenses will require approval from No new rental licenses will be issued to the priority OWNER/MANAGER WHILE IN the Housing Code Official. The Code Official may reject an category owner/manager. STATUS application for any legitimate concern. The Board of Appeals has the authority to review rejected applications. Properties currently owned by the priority category that are not currently licensed may be licensed if an approved agent is designated. PRIORITY CATEGORY Standard workflow/process Any citation issued in accordance with Housing Municipal infraction/Citations will be issued in INSPECTION/PENALTY POLICY Department policies will result in resetting the timeline accordance with Housing Department policies. Any for priority category designation. The designation cannot citation issued to a priority category property be removed until the property owner/manager has not owner/manager will not be eligible for reduced received a citation for property maintenance code penalties. violations for 7 consecutive years. A 2"d/subsequent offense citation will be issued for every re-inspection following a court's order where any of the ordered repairs are not completed. Tier 1 — Standard+ Tier 2 — Standard Tier 3 — Hi�h risk QUALIFICATIONS FOR TIERS 1-3 Size of properties 12 units or more on a single site *(condo Any Any (#of units) buildings eligible only if all units in structure are owned by one business entity) Management Professional management as defined by lowa Professional or independent Any code(5438)NOTE: Requires Real Estate management Brokers License Citations/MI issued for No municipal infractions for IPMCviolations No municipal infractions for IPMC Municipal infraction(s)filed in conjunction code violations issued to property owner/agent forqualifying violations previous 3 years with inspection orcomplaint for IPMCor property Nuisance code(Title 6, Chapter4)violation. NOTE: Not required to result in court orders to be labeled tier 3. *Appealable to HBoA Rental license In good standing(no overdue fees, conflicting Valid license Valid license or inaccurate information on license/application) Complaint history No verified complaints year prior to inspection Any—not resulting in the issuance Any of a citation/municipal infraction INSPECTION SCHEDULE/CYCLE Cycle of inspections 5-year from date last passed 5-year from date last passed 1-year from date last passed or as deemed necessary by Code Official Self-inspection & Self- Opportunity to self-inspect and self-certify up N/A, however routine self- Required annual self-inspections during certification to 80%of units at reduced rate of$20.00/unit. inspection of all rental property is period when property is in tier 3 and Contingent on 20%of units selected at recommended annually for 5 years following move to tier 2 random achieving a passing result with no NOTE: Documented proof of self- significant life safety violations found as inspections must be submitted to Housing determined by the assigned inspector. Code Official MOVEMENT BETWEEN TIERS Opportunity for N/A + Opportunity for 12+ unit + Upon achieving passing results on two positive reclassification buildings to reclassify to tier 1 if all subsequent routine annual inspections a conditions of tier 1 are met property will be reclassified to tier 2. Action resulting in - Failure to meet all qualifications for tier 1 will -Will be reclassified to tier 3 if MI - Revocation of rental license negative result in reclassification to tier 2. is issued for IPMC violations - Condemnation of structure/unit reclassification -- Issuance of MI for IPMC violations will result - Additional enforcement through court in reclassification to tier 3 and/or other city departments Desired Outcomes • Achieve 5-year cycle of inspections for all properties • Increase efforts and resources devoted to properties in need of assistance (i.e. deteriorated, nuisance, unsafe, unsanitary, unlawful) • Reduce inspection workload on larger professionally managed properties typically found to comply • Incentivize professional property management and maintenance on larger properties • Incentivize cooperation and code compliance on all properties Notable Policv Distinctions • Condo developments may contain more than 12 dwelling units on a single contiguous site, however if all units are not represented by a single owner/agent, the maintenance and management of the units may vary beyond an acceptable range to allow for self-inspection and self-certification. • Professional Management—State code (543B) requires anyone performing acts or transactions related to real estate have a real estate brokers license or be working under a licensed real estate broker • Inspection costs o Dwelling units • Routine cycled inspections cost$50.00/dwelling unit(regardless of cycle or tier placement) • Certification of self-inspected units cost$20.00/dwelling unit o Rooming units • Routine cycled inspections cost$30.00/rooming unit • Certification of self-inspected rooming units or Fire Department inspected dorm rooms cost$15.00/rooming unit • Only IPMC and/or nuisance code (6-4)violations resulting in citations/MI's will result tier 3 classification o NOTE: A property will be reclassified to tier 3 upon filing of a citation/MI related to IPMC violations (web q/a generated by legal & potential for nuisance property designation) o A property owner may appeal the tier 3 designation to the Housing Board of Appeals within 180 days of citation/MI being served on them • Legitimate appeals may include: If citation/MI does not result in court issuing order because of incorrect code interpretation or similar grounds for dismissal • Illegitimate appeal may include: citation/MI dismissal on technical grounds and not merit(i.e. typographical error on citation) • Licensing violations resulting in citation/MI will not result in tier 3 classification. Examples of licensing violations include: o Failure to pay licensing and/or inspection fees o Operating non-licensed rental property o Failure to provide notice of change in license (sale,transfer, agent address change,etc.) • NOTE: Licensing violations indicate a failure to meet obligations of the city's ordinance, however they do not necessarily indicate that a property or unit is not safe or requires additional inspection. • A property designated as tier 3 that continues to fail inspections with no improvement may result in revocation of rental license, condemnation of structure/unit,and/or additional enforcement through all applicable codes and ordinances. o Continued non-compliance may additionally result in evaluation for petition for title in accordance with lowa Code 657A • Coinciding with tiered inspections policy and other enhancements in code enforcement to include revocation of rental licenses, an anti-displacement policy will be adopted. The anti-displacement policy will require that staff exhausts available options for enforcement without displacement whenever possible and when required,the City will develop a fund to provide direct assistance to those displaced due to code enforcement.