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HomeMy WebLinkAboutOrdinance No. 2019-06 Amending Chapter 10 Concerning Rental LicensingORDINANCE NO. 2019-06 AN ORDINANCE AMENDING CHAPTER 10 OF THE EDINA CITY CODE CONCERNING RENTAL LICENSING THE CITY COUNCIL OF EDINA ORDAINS: Section 1. Chapter 10 of the City Code is amended by adding Article XVIII to read as follows: Article XVIII - Rental Licensing 10-720. Purpose: The purpose of this Article is to protect the public health, safety and welfare of the residents of rental dwellings in the City of Edina and to ensure that rental housing in the city is safe, sanitary and operated and maintained not to become a nuisance to the neighborhood and community. 10-721. Intent: The intent of this Article is that a permanent mode of protecting and regulating the living conditions of citizens of the city be established; and that uniform standards be established and applicable for all rental dwellings in the city; and to provide a means for imposing license fees to help the City defray the costs necessary for housing inspections and enforcement of this section. This section does not supersede or limit any other applicable ordinance or law. This section applies to all rental dwellings whether or not a valid license is in effect. 10-722. Definitions: For the purpose of this section, the following definitions apply unless the context clearly indicates or requires a different meaning. APARTMENT BUILDING. Apartment building means a residential building having not less than three dwelling units in a single building with at least one dwelling unit occupying a different story than other dwelling units in the same building. (Edina zoning code definition) CITY MANAGER. The City Manager or the City Manager's designated agent DWELLING UNIT. Dwelling unit means one or more rooms connected together, but which is or are separated from all other rooms in the same building, which room constitutes, or rooms constitute, a separate, independent unit with facilities for cooking, sleeping and eating, and used for residential occupancy. A room or rooms shall be deemed to be a dwelling unit if it contains or they contain facilities for cooking, sleeping and eating, if it or they can be separated from all other rooms in the same building, if access can be gained without entering or passing through any living space of another dwelling unit, and if it is or they are used for residential occupancy. If a dwelling unit has 1 200377v1 an attached garage, then the attached garage is deemed a part of the dwelling unit. (Edina zoning code definition) LET FOR OCCUPANCY or TO LET. To permit possession or occupancy of a dwelling or living unit by a person who is not the legal owner of record thereof, pursuant to a written or unwritten lease, or pursuant to a recorded or unrecorded agreement whether or not a fee is required by the agreement. OCCUPANT. Any person living or sleeping in a dwelling; or having possession of a space within a dwelling. OPERATE. To let for occupancy or to let. OPERATOR/MANAGER. Any person who has charge, care or control of a structure or premises which is let or offered for occupancy. OWNER/LICENSEE. Any person, agent, operator, firm or corporation having a legal or equitable interest in the property; or recorded in the official records of the state, county or municipality as holding title to the property; or otherwise having control of the property, including the guardian of the estate of any such person, and the executor or administrator of the estate of such person if ordered to take possession of real property by a court, or any person representing the actual owner. PERSON. An individual, corporation, firm, association, company, partnership, organization or any other group acting as a unit. RENT. To let for occupancy or to let. RENTAL DWELLING. Any apartment building or dwelling unit let for occupancy. Rental Dwelling does not include hotels, motels, hospitals and homes for aged. STRUCTURE. Structure means anything built or constructed, an edifice or building of any kind, or any piece of work composed of parts joined together in some definite manner, and including, without limitation, towers, poles and fences except parking lots and driveways. 10-723. License Required: It is unlawful to operate a rental dwelling in the city without first having obtained a license from the City Manager. Licenses are renewed on an annual basis and are valid from May 1 to April 30. 10-724. Fees: License fees are in the amount set in City Code Section 2-724. 10-725. Application: 200377v1 2 (A) Applications for licenses must be made in writing to the City Manager by the owner or operator. Failure to complete a license application may result in delay or suspension of the application process and civil and criminal penalties. In cases where the owner of a rental dwelling lives outside a 50-mile radius of the rental dwelling, the owner must name an operator living within the 50-mile radius of the rental dwelling. (B) All applications must include: (1) Owner's name, address and telephone number. In cases where the owner is an individual, one of the following is required: driver's license number, state identification number, or date of birth. (2) Operator's name, address, phone number and driver's license number or state identification number or date of birth. (3) Signature of owner or operator. (4) Name, address and phone number of Management Company, manager or managing officer. (5) Legal address of the rental dwelling. (6) Number and type of living units within the rental dwelling. (7) Date of the most recent certificate of compliance. (8) Owner or Operator E-mail address. 10-726. Rental History: The City may consider the applicant's rental property management history when making the determination to issue or renew a rental license. An applicant that has a majority ownership interest or management role in other rental properties that are, or have been in the preceding five years, suspended, or revoked, will be ineligible for new or additional rental licenses for a period of five years from the suspension, or revocation. At the end of that five-year period of license ineligibility, upon re-application the applicant must demonstrate to the issuing authority and the Housing Inspector that the applicant is willing and able to manage the property in a manner that is consistent with the public health, safety and welfare and in compliance with all applicable laws. An applicant who is denied a rental license will receive written notice of the denial, the reasons therefore and the procedure by which the applicant may request a hearing before the City Council. 10-727. License Transfer: No licensee has the right to transfer a license to any other person or property. 3 200377v1 200377v1 10-728. Display of License: Rental licenses must be posted in every rental dwelling. The license for each apartment building must be conspicuously posted at or near the front entrance, a public corridor, hallway or lobby of the apartment building for which it is issued. 10-729. Tenant Register: Licensees must, as a continuing obligation of a license, maintain a current register of tenants and other persons who have a lawful right to occupancy of rental dwellings within an apartment. In its application, the licensee must designate the person or persons who will have possession of the register and must promptly notify the City Manager of any change of the identity, address or telephone numbers of such persons. The register must be available for inspection by the City Manager at all times. 10-723. Point of Conversion Inspection: Whenever a dwelling is converted to a rental unit, the dwelling shall be licensed and inspected for compliance with the minimum standards set forth in this code. The fee for the conversion required by this section shall be in the amount set in City Code Section 2-724. This fee shall be in addition to the annual rental license fee. This provision shall not apply to buildings containing more than two dwelling units. 10-724. Conduct on Rental Property: (A) It is the responsibility of the owner/licensee to see that persons occupying a rental dwelling conduct themselves in such a manner as not to cause the premises to be disorderly. For purposes of this section, a rental dwelling is disorderly when any of the following types of conduct occur under any of the following provisions: (1) Sec. 8-241 and Chapter 23, Article II of this code (animal noise and public nuisances). (2) Sec. 22-123 of this code (noisy parties). (3) Sec. 22-164 of this code (unlawful possession, delivery or purchase) or violation of laws relating to the possession of controlled substances as defined in M.S. §§ 152.01 et seq. (4) Sec.22-49 — 22-52 of this code (disorderly conduct) or laws relating to disorderly conduct as defined in M.S. § 609.72. (5) Sec. 22-49 — 22.52 of this code (unlawful sale of intoxicating liquor or 3.2 malt liquor) or laws relating to the sale of intoxicating liquor as defined in M.S. §§ 340A.701, 340A.702 or 340A.703. (6) Laws relating to prostitution or acts relating to prostitution as defined in M.S. § 609.321, Subdivision 9 and 609.324, housing individuals engaged in prostitution. 4 (7) Sec.22-78 — 22-80 of this code (weapons) or laws relating to unlawful use or possession of a firearm as defined in M.S. §§ 609.66 et seq., on the licensed premises. Laws relating to assault as defined in M.S. § 609.221, et seq. Laws relating to contributing to the need for protection or services or delinquency of a minor as defined in M.S. § 260C, et seq. M.S. § 609.33, relating to owning, leasing, operating, managing, maintaining or conducting a disorderly house or inviting or attempting to invite others to visit or remain in a disorderly house. (11) M.S. § 609.50 which prohibits interference with a police officer. (12) M.S. § 609.713 which prohibits terroristic threats. (13) M.S. § 609.715 which prohibits presence of unlawful assembly. (14) M.S. § 609.71 which prohibits riot. (15) M.S. §§ 609.226 and 347.56, relating to dangerous dogs. (16) M.S. § 609.78 which prohibits interfering with "911" phone calls. (17) M.S. §§ 609.75 through 609.76, which prohibits gambling. (18) M.S. § 243.166 (Predatory Offender Registration). (19) M.S. § 609.229 (Crime committed for benefit of a gang). (20) M.S. § 609.26, subdivision 1(8) (causing or contributing to a child being a runaway). (21) M.S. § 609.903 (Racketeering). (B) Conduct enforcement. The City Manager is responsible for enforcement and administration of this article. (C) Upon determination by the City Manager that a rental dwelling was used in a disorderly manner, as described in paragraph (A) of this section, the City Manager must give notice to the owner/licensee of the violation and direct that steps be taken to prevent further violations. 5 200377v1 (D) If a second instance of disorderly use of a rental dwelling occurs within the 12- month period following an incident for which a notice in paragraph (C) of this section was given, the City Manager must notify the owner/licensee of the violation and must also require the owner/licensee to submit a written report of the actions taken, and proposed to be taken to prevent further disorderly use. This written report must be submitted to the City Manager within ten business days of receipt of the notice of disorderly use and must detail all actions taken by the owner/licensee in response to all notices of disorderly use within the preceding 12 months. (E) If a third instance of disorderly use of a rental dwelling occurs within the 12- month period following any two previous instances of disorderly use for which notices were given, the City Manager must notify the owner/licensee of the violation and must also require the owner/licensee to submit a written report of the actions taken, and proposed to be taken, to prevent further disorderly use. The 12-month period begins on the date of the police report generated in response to the first instance of disorderly use. The written report must be submitted to the City Manager within ten business days of receipt of the notice of disorderly use and must detail all actions taken in response to all notices of disorderly use within the preceding 12 months. (F) After the third instance of disorderly use, the City Manager may deny, revoke, suspend or not renew the license for the premises. Before such an action, the City Manager must give to the owner/licensee written notice of a hearing before the City Manager to consider such denial, revocation, suspension or non-renewal. Such written notice must specify all violations of this section, and must state the date, time, place and purpose of the hearing. The hearing must be held no less than ten days and no more than 30 days after giving such notice. (G) Following the hearing, the City Manager may deny, revoke, suspend or decline to renew the license for all or any part or parts of the rental dwelling or may grant a license upon such terms and conditions as it deems necessary to accomplish the purposes of this section. (11) The decision made by the City Manager to deny, revoke, suspend, decline to renew a license or the terms and conditions of approval may be appealed to the City Council by filling a notice of appeal with the City Clerk within 10 days after the Manager's decision. (I) No adverse license action shall be imposed where the instance of disorderly use occurred during the pendency of eviction proceedings (unlawful detainer) or within 30 days of notice given to a tenant to vacate the premises where the disorderly use was related to conduct by that tenant or by other occupants or guests of the tenant's unit. Eviction proceedings are not a bar to adverse license action, however, unless they are diligently pursued by the licensee. 6 200377v1 (J) A determination that a rental dwelling has been used in a disorderly manner as described in paragraph (A) of this section shall be made upon a fair preponderance of the evidence to support such a determination. It is not necessary that criminal charges be brought in order to support a determination of disorderly use nor does the fact of dismissal or acquittal of such a criminal charge operate as a bar to adverse license action under this section. (K) All notices given by the city under this section must be personally served on the owner/licensee, sent by certified mail to the owner/licensee's last known address or, if neither method of service effects notice, by posting on a conspicuous place on the rental dwelling. (L) Enforcement actions provided in this section are not exclusive, and the City Manager may take any action with respect to a licensee, a tenant, or a rental dwelling as is authorized by the city code, state or federal law. The City Manager may postpone or discontinue any enforcement action, including an action to deny, revoke, suspend, or not renew a license, if it appears that the owner/licensee has taken appropriate measures to prevent further instances of disorderly use. 10-725. Enforcement: (A) Responsibility. It is the responsibility of the owner and operator/manager to be in compliance with this section, other city ordinances and state laws. (B) Maintenance standards. Every rental dwelling must maintain the standards in the City Property Maintenance Code, Chapter 20, Article VI of this code, in addition to any other requirement of the ordinances of the city or special permits issued by the city, or the laws of the State of Minnesota. (C) Inspections and investigations. (1) The City Manager is authorized to make inspections to enforce this subchapter. (2) All designated agents authorized to inspect have the authority to enter, at all reasonable times, any rental dwelling. Prior to entering a rental dwelling, the designated agent must first present proper credentials and request entry. (3) Compliance orders must be written in accordance with Section 107 of the 2015 International Property Maintenance Code. (4) There is no fee charged for an initial inspection to determine the existence of a housing maintenance code violation, nor any fee for the first re- inspection to determine compliance with an order to correct a housing maintenance code violation. 7 200377v1 (a) A fee will be charged for each subsequent re-inspection occurring after the due date for compliance with an order, as determined by the City Manager. The amount of the re-inspection fee is set in City Code Section 2-724. (b) The re-inspection fees prescribed above are to be billed directly to the owner or operator/manager for the property upon completion of any re-inspection for which a fee is required. Failure to pay such fees is grounds for denial, revocation, suspension, or non-issuance of a rental dwelling license. This subdivision is not to be considered the exclusive method of collecting re-inspection fees and does not preclude collection by other lawful means. (c) Every notice of violation and order to correct housing code violations must contain a clear and conspicuous explanation of the policy in this section requiring re-inspection fees for subsequent re-inspection. (d) The City Manager may waive a re-inspection fee in case of error, mistake, injustice, or other good cause. (D) Revocation, suspension, denial or non-renewal of license. (1) The City Manager may revoke, suspend, deny or decline to renew any license issued under this subchapter for part or all of a rental dwelling upon any of the following grounds: (a) False statements on any application or other information or report required by this subchapter to be given by the applicant or licensee; (b) Failure to pay any application, penalty, re-inspection or reinstatement fee required either by this section or City Council resolution; (c) Failure to correct deficiencies in the time specified in a compliance order; (d) Failure to allow an authorized inspection of a rental dwelling; (e) Violation of an owner's duties under M.S. §§ 299C.66 to 299C.71 ("Kari Koskinen Manager Background Check Act"); (f) Any other violation of this subchapter. 8 200377v1 (2) Before the City Manager may revoke or suspend a license, written notice must be sent to the applicant or owner/licensee setting forth the alleged grounds for the potential action. The notice must also specify a date for a hearing before the City Council. The notice will be mailed by regular mail to the licensee at the most recent address listed on the license application. At the hearing, the owner/licensee may present witnesses in their defense. The City Council will make the final decision to revoke or suspend the license based upon the entire record. (3) A decision to revoke, suspend, deny or not renew a license or application will specify the part or parts of the rental dwelling to which it applies. Until a license is reissued or reinstated, no rental units becoming vacant in such part or parts of the rental dwelling may be re-let or occupied. Revocation, suspension or non-renewal of a license will not excuse the owner/licensee from compliance with all terms of this section for as long as any units in the rental dwelling are occupied. (4) Failure to comply with all terms of this section during the term of revocation, suspension or non-renewal is a misdemeanor and grounds for extension of the term of revocation, suspension or continuation of non- renewal of the license. (5) Appeals of any decision made by the City Manager must be made to the City Council. (E) Posting of Unlicensed Properties. Any dwelling found in violation of this subchapter may be posted with a placard near or upon the main entrance of the dwelling indicating violation of Edina City Ordinance. Section 2. This ordinance is effective after November 4, 2019 following passage and publication. First Reading: May 21, 2019 Second Reading: June 18, 2019 Published: ATT Sharon Allison, ity lerk James B. Hovland, Mayor 9 200377v1 Please publish in the Edina Sun Current on: Send two affidavits of publication Bill to Edina City Clerk 200377v1 10