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
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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.
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Mic ael C. Van Milligen
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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
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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.