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Item No: 03 mo_.11�_sVim City of Mounds View Staff Meeting Date: Jan 3, 2023 Type of Business Work Session City Administrator Review: To: Honorable Mayor, and City Council From: Jon Sevald, Community Development Director Isaiah Schoeman, Fire Marshal/Code Inspector Item Title/Subject: Rental License Suspension/Revocation Discussion Introduction: Staff is exploring an Ordinance Amendment in which the City Council would conduct a Hearing to revoke a Rental License, if code violations are unresolved after 90-days. This change is similar to Spring Lake Park and Columbia Heights (revocation hearing after 30-days of non- compliance). Discussion: The City licenses 255 rental properties, consisting of 1,885 units. Multi -Family rental properties are inspected every three years (housing inspection). Fire inspections of common areas are conducted annually. Thirty-three percent of households are renter occupied.' Staff spends a considerable amount of resources on a small number of rental properties. This was exacerbated in 2020-2021 with the Rental License Revocation of 2075/2081 Hillview Road which took about 1'/2 years to resolve. The problems which we're trying to solve are complex, and much of it is outside our control (e.g. homelessness, substance abuse, domestic disputes, hording, deferred maintenance, etc.). The problems are not limited to negligent owners, but also managers and tenants for both apartment buildings and single-family rentals. Staff is considering an Ordinance Amendment in which the Council would conduct a Hearing to revoke the Rental License of a property, if non -compliant in excess of 90-days. Once revoked, tenants have 45 days to vacate the property. After revocation, a License may be reinstated if violations are corrected and the owner pays a fee, 5X the annual rental license fee.' This 2021 American Community Survey; Mounds View; Renter Occupied Housing Units. 2075/2081 Hillview Road; In January 2021, the City issued numerous corrective orders. After failing to correct, the City Council revoked the Rental Licenses in June 2021. The City filed civil charges in December 2021. The District Court ruled in favor of the City in July, 2022, and the matter resolved when the apartments were vacated in fall, 2022, and the properties sold. The City incurred $14,507 in legal fees (reimbursable). Rental License Reinstatement fees: City % HH renter occupied Annual Fee 2023 Reinstatement Fee 1 unit 4 units 6 units Mounds View 33% SF = $100. MF = $100 + $25 p/unit. $100 $200 $250 Spring Lake Park 29% SF = $250. MF = $500 + $50 p/unit. $1,250 $3,500 $4,000 Columbia Heights 35% SF = $300. MF = $350 + $25 p/unit + $150 inspection $1,650 $2,400 $2,650 Fridley 38% SF = $100. MF = $245 + $12 p/unit. $100 $270 $317 New Brighton 38% SF = $200. MF = $140 + $21 p/unit + $11 p/unit crime- free MF Housing + $315 reinspection, + $25 p/unit provisional (during revocation) $200 $1,103 $1,497 Roseville 31% SF = $ 35. MF = $102 + $15 p/unit $102 $102 $102