HomeMy WebLinkAbout05.H- Community Development ORDINANCE(ID# 1599) DOC ID: 1599 C
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
[� Municipal Code
�•r From: Margo Wheeler M/CC Meeting Date: 03/19/2012
Prepared by: Shirley Robinson, (909) 384-
5057
Dept: Community Development Ward(s): All
Subject:
An Ordinance of the City of San Bernardino Municipal Code Regarding Single-Family Rental
Property Inspection Program (FINAL READING) Recommended for Approval at the Legislative
Review Committee Meeting of February 7, 2012 — Committee Members Present: Virginia
Marquez,Wendy McCammack, and Fred Shorett. (Laid Over from March 5, 2012.)
Financial Impact:
City staff estimates thirty-five percent(35%)or 1,200 of the estimated 6,000 single-family rental
properties will qualify for the automatic self-certification, reducing the Single-Family Rental
Property Inspection Program anticipated revenue,which is currently budgeted at$600,000, to
$390,000.
Motion: Adopt Ordinance.
Synopsis of Previous Council Action:
03/17/2008 - The Mayor and Common Council adopted Chapter 15.26 Single-Family Rental
Property Inspection Program.
09/19/2011 - The Mayor and Common Council requested the Single-Family Rental Property
Inspection Program be reviewed and referred it to the Legislative Review Committee for further
discussion.
Committee Action
On September 19, 2011, the Mayor and Common Council requested that the Single-Family
Rental Property Inspection Program be referred to the Legislative Review Committee (LRC) for
discussion. This matter was reviewed by the LRC on October 18, 2011, following complaints
with the interpretation and application of the ordinance provisions. The City Attorney's Office
prepared a draft ordinance which was reviewed by the LRC at the November 22 meeting.
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On November 22, 2011, the Committee directed the Code Enforcement Division to complete a
cost analysis for the Single-Family Rental Property Inspection Program (SFRPIP) and Multi-
Family Rental Housing Fire Inspection Program and survey similar jurisdictions to determine the
criteria utilized to implement the SFRPIP. This information was presented by staff and reviewed
and discussed by the Committee at the December 6, 2011,meeting.
On December 6, 2011, after reviewing the information requested on November 22 and inquiring
about the original intent of inspecting all units as part of the Multi-Family Rental Housing Fire
Inspection Program, the Committee requested information on duplication of services related to
the Single-Family Rental Property Inspection Program, Multi-Family Rental Housing Fire
Inspection Program, and the Crime Free Multi-Housing Program. An analysis of these programs
will be presented at an upcoming LRC meeting.
At the January 10, 2012, LRC meeting, the Committee approved the proposed changes to the
SFRPIP to move forward.
Background
On March 12, 2008, the program to encourage the upkeep of all non-owner occupied single-
family rental properties by requiring an annual inspection was approved by the Mayor and
Common Council. A major concern by Council at the time of the adoption of the ordinance
involved out-of-town landlords and tenants that do not have a vested interest in maintaining their
properties and the strain on City services and resources to address these properties.
On April 7, 2008, the Mayor and Common Council adopted San Bernardino Municipal Code
Chapter 15.26, which established the Single-Family Rental Property Inspection Program. The
ordinance defines a "Single-Family Rental Property", "Rental Property", or "Rental Unit' as
defined in Chapter 19.02 of the San Bernardino Development Code, as a dwelling unit in a single
structure, or in a group of attached or detached structures containing three or less such dwelling
units on the same parcel of land, and which is occupied by a person(s) other than the owner of
the unit and includes the premises on which said rental property is situated. Currently, the
ordinance contains a rebuttable presumption in which an owner can refute that the property is a
single-family rental by providing reasonable documentation to the City that the property is owner
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1599
occupied or is not being used for rental income.
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Analysis
The ordinance currently defines a "rental' as occupied, or for occupancy, by a person other than
the owner of the unit, and enforcement of this ordinance has been pursuant to the current
language. Individuals who have provided reasonable documentation that the property is owner
occupied or is not being used for rental income,have been removed from the program. In several
instances, property owners and/or tenants have acknowledged their family members indeed pay
some sort of rental income, and these have been included in the Single-Family Rental Property
Inspection Program.
Based on the Legislative Review Committee discussions concerning the Single-Family Rental
Property Inspection Program Ordinance and to clarify the purpose and intent of the regulations,
the following changes to the existing Single-Family Rental Property Inspection Program
ordinance are proposed:
C 1. Redefine rental unit to clarify that it is either rented or leased for fair market monetary
compensation, or claimed on IRS tax forms as a rental, or managed by a property
manager.
2. To call for inspections every two years by inspecting half of the single-family rental
properties in year one and the remaining single-family rental properties year two. (This
will reduce the amount of staff required to inspect annually and the other staff can be
utilized to better address citizen complaints.)
3. Creating a self-certification program that will encompass an additional three years for
properties that are maintained to City standards.
4. Automatically enroll properties in the self-certification program when found to qualify.
Fiscal Impact
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1599
v/ By exempting those units where family members of the property owner are allowed to reside
without paying fair market compensation, fewer properties will be included in the Single-Family
Rental Property Inspection Program. As a result, a reduction in amount of annual fees collected
will occur. The number of properties in the program that are occupied by relatives who are not
paying fair market compensation is unknown.
Automatic enrollment into the Self-Certification Program will also reduce revenues for a period
of two years.
Recommendation:
Lay over Ordinance for final adoption.
City Attorney Review:
.. Supporting Documents:
Ord 1599 (PDF)
Staff Report Attachments 2 -4 (PDF)
Updated:3/8/2012 by Linda Sutherland C
1 AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO AMENDING
2 CHAPTER 15.26 OF THE SAN BERNARDINO MUNICIPAL
3 CODE REGARDING THE SINGLE-FAMILY RENTAL
PROPERTY INSPECTION PROGRAM.
9
5 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
6
BERNARDINO DO ORDAIN AS FOLLOWS:
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a Section 1. Section 15.26.030 Rebuttable Presumption is hereby deleted. r
9 U
Section 2. Section 15.26.040(C) is hereby amended to read as follows:
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15.26.040 Definitions.
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12 C. "Director" means the Director of Community Development or his/her designee. a
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13 Section 3. Section 15.26.040(F) is hereby amended to read as follows: �
a
is 15.26.040 Definitions. 0
15 F. "Single-Family Rental Property,""Rental Property' or"Rental Unit" means a
16 dwelling unit as defined in Chapter 19.02 of the San Bernardino Development Code,
17 in a single structure, or in a group of attached or detached structures containing three
or less such dwelling units on the same parcel of land, and is occupied or for 2
16 occupancy by a person(s) other than the Owner of the unit and includes the premises d
on which said Rental property is situated and any common areas, including but not
19 limited to parking lots, driveways, landscaping, accessory structures, fences, walls,
swimming pools, hot tubs, and spas. Rental Property includes, but is not limited to:
20
property that is rented or leased to an
p p y y person for fair market value monetary o
21 compensation; property that is claimed on Internal Revenue Service Tax Forms as a
rental; or property managed by a property manager. For the purpose of this chapter, 4.,�
22 the following types of dwelling units or facilities are not considered single-family rental E
23 housing units: R
a
29 a) Multifamily Rental Housing Complexes as defined in chapter 15.25 of this code;
25 b) Hotels or motels.
26 c) Condominiums, as defined in chapter 19.02 of the San Bernardino
27 Development Code, that are used for residential dwellings. This exception only
applies if the condominium has a bona fide home owner's association ("HOA").
26 For purposes of this exemption, an HOA is "bona fide" if the HOA has approved
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I and recorded Covenants, Conditions &Restrictions (CC&R's), holds meetings
on a regular(at least bi-monthly) basis and/or contracts with a property
2 management company to ensure the maintenance of the common areas-
3 c) Accommodations in any hospital, extended care facility, residential care facility,
4 convalescent home, nonprofit home for the aged, or dormitory that is owned
and operated by an education institution.
5
6 d) Mobile Home Parks.
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7 Section 4. Section 15.26.050 is hereby amended to read as follows:
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8 15.26.050 Compliance with Business Registration Requirements. t
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9 Every property owner subject to this chapter must comply with the business
to registration requirements of Title 5 of this code. E
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11 Section 5. Section 15.26.060 is hereby amended to read as follows:
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15.26.060 Semi-Annual Inspection Required
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All rental property located in the City shall be subject to a semi-annual inspection by
14 the Director for compliance with applicable laws. 0
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15 Section 6. Section 15.26.130(A) is hereby amended to read as follows:
16
15.26.130 Self Certification Program
17
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(A) Well-maintained rental property with no outstanding violations of any 2
1e applicable laws may qualify to participate in the Self Certification Program. Qualifying
19 properties will not be subject to inspections for a period of three (3) additional years,
provided that the conditions of the rental property do not deteriorate during that time to
20 the point where the rental property would no longer meet eligibility standards for the v
21 Self Certification Program. o
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22 Section 7. Section 15.26.130(G) is hereby added to read as follows: E
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23 15.26.130 Self-Certification Program a
24 (G) If an officer determines that a property qualifies for self-certification upon
25 inspecting the property in accordance with this chapter, the property shall be
automatically enrolled in the Self-Certification Program,
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5.H.a
1
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL
2 OF THE CITY OF SAN BERNARDINO AMENDING
3 CHAPTER 15.26 OF THE SAN BERNARDINO MUNICIPAL
CODE REGARDING THE SINGLE-FAMILY RENTAL
4 PROPERTY INSPECTION PROGRAM.
5 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a meeting ;,
thereof, held on the_day of , 2012.--6y the following vote, to wit:
7
e COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT o
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9 MARQUEZ
10 JENKINS d
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u VALDIVIA d
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12 a
SHORETT
13
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KELLEY
19 v
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15 JOHNSON
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16 MC CAMMACK
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Georgeann Hanna, City Clerk W
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The foregoing Ordinance is hereby approved this—
day of
20 2012.
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22 PATRICK J. MORRIS, Mayor E
City of San Bernardino v
23 Approved as to form:
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24 JAMES F. PENMAN
25 City Attorney
26 2
21
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ATTACH M ENT 2
3 YEAR COST ANALYSIS-SINGLE FAMILY RENTAL PROGRAM
Salaries 714,400 659,700 565,682
Materials&Supplies $ 155,694 107,250 $ 29,167
Total Expenditures $ 870,084 $ 766,950 $ 594,849
vi
-Revenue
SFR Invoice @$100/Property $ 310,809 $ 409,594 $ 596,669
SFR Administrative Citation $ $ 149,182 $ 103,939 L
Total Revenue $ '809 $ 648,776 $ 70(),608 E
Difference $
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,275) $ (118,174) $ 105,759
Unrealized Revenue _ 0
Liens $ 36,100 $ 53,500 $ 100,700
I Difference $(523,175) $ (64,674) 206,459
Summary cw
In FY 2008-09, the annual inspections began the last week of November 2008 and reflect seven E
months of inspections.In an effort to adjust the annual inspections to January through December,
FY 2009-10 reflects nine months of inspections, In FY 2009-11 staffing was reduced from eight
code officers to six based on the actual number rentals identified and workload. Liens are placed
0
on properties when owners do not pay fees owed to the city. This revenue is realized when the
liens are placed on the current tax rolls and property taxes are paid.
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