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Item No: 03 I / 1 City of Mounds View Staff R Meeting Date: Type of Business City Administrator Review To: Honorable Mayor and City Council From: Jon Sevald, Community Development Director Item Title/Subject: Rental Licensing Fees Introduction: Aug 7, 2023 Work Session The City's Annual Fee Schedule is typically adopted in September for next year, and may be amended at any time, as needed. Specific to Rental Licensing, Staff recommends: Reinstatement of a Revoked Rental License I 5X fee max $3,000 Discussion: Mounds View licenses 255 rental properties, consisting of 1,873 units, including single-family and multi -family housing. 31 % of Mounds View residents are renters.' The City's rental program affects a significant number of residents. Rental properties are inspected annually for Fire Code violations, and are inspected every three years for Housing/Property Maintenance Code violations. If code violations are found, the owner receives a correction order. If non -compliant, the Inspector has the authority to condemn rental units unfit for human habitation, requiring the unit to be vacated until corrections are made and pass inspection. Additionally, the City Council may hold a Hearing to revoke a rental license. Since adopting a rental license ordinance, the City Council has revoked the licenses of four owners.2 Once a rental license is revoked, the owner must complete correction orders, pass inspections, and obtain a new rental license (there is no penalty). Of the four owners' licenses revoked, none received rental license reinstatement. Most properties were sold, with new owners obtaining new rental licenses. This is the best outcome from a bad situation. Although it's never happened before in Mounds View, there is nothing to prevent the holder of a revoked rental license from applying for a new license. Staff is recommending adding a penalty to dissuade this from happening. Example: # units License Fee Reinstatement Fee Total 1 $100 $100 $500 $600 4 $100 + $25 p/unit $200 $1,000 $1,200 128 $100 + $25 p/unit $3,300 $3,000 $6,300 US Census; American Community Survey (2021) 5-year estimate, Total Population in Occupied Housing Units by Tenure. Resolution 7572, Revocation of rental housing license for Tim Strand, 2065 Hillview Road (February 8, 2009). Resolution 9187, Denying a rental dwelling license, and authorizing an order to vacate the premises of 5067 Irondale Road (November 12, 2019). Resolution 9434, Revoking the rental licenses for 2075 Hillview Road, and 2081 Hillview Road (June 14, 2021). Resolution 9715, Revoking the rental licenses for 5661 Quincy Street, 5671 Quincy Street, and 5691 Quincy Street (February 27, 2023). The rviuunus view vimun A Thriving Desirable Community