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HomeMy WebLinkAboutCOW 2026-02-09 Item 5B - Update - 2025 Rental Housing & Code EnforcementCity of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 5.B. Agenda Item 2025 Rental Housing & Code Enforcement Update Sponsor Nick Waggood, Building Official Community Development Department Legislative History February 9, 2026 Select Meeting Type Recommended Motion ❑x Discussion Only ❑ Action Requested MOVE TO N/A EXECUTIVE SUMMARY This presentation summarizes the City's Rental Housing licensing and Code Enforcement inspection program, shares current data and trends, and introduces a potential incentive option for highly maintained rental properties. The intent is to provide Council with background and context and to gather feedback before moving forward with any proposed changes. DISCUSSION The Tukwila Code Enforcement team works to support a safe, inviting, and healthy environment for residents, businesses, and visitors by enforcing the parts of the Tukwila Municipal Code that relate to conditions on private property. Compliance is typically reached through promoting public awareness, communication, and collaboration. In difficult cases monetary penalties and/or legal action may be required. In addition to general code enforcement, the team is also responsible for managing and administering the Residential Rental Business License and Inspection Program. The city established the Rental Program in 2010 to protect public health, safety, and welfare by ensuring the proper maintenance of rental housing. It does this by identifying and requiring correction of substandard housing conditions and by preventing conditions of deterioration and blight that could adversely impact the quality of life in the City of Tukwila. Code Enforcement: Code enforcement activities are primarily carried out by 1.5 Code Enforcement Officers and 0.5 Administrative Support Coordinator. Additional support is provided by a Rental Housing Inspector and a 0.5 FTE Permit Technician who are cross -trained to assist with code enforcement and rental program functions as needed. This shared -resource approach helps ensure continuity of service but also reflects the limited staffing available to administer an increasingly complex and active program. 2025 In 2025, 371 cases were opened and 253 were closed. We also carried over 37 open cases from 2024. The most common case types were Rental Housing (30%), Building permit required (19.4%), and garbage/rubbish (11.3%). Code Enforcement Case Process: The Code Enforcement case process is designed to encourage voluntary compliance through education and progressive enforcement. Typical steps and timeframes are outlined below: 41 1. Complaint Intake Complaints are received through multiple channels, including email, phone, and walk-in requests. 2. Initial Review (3-5 days) The Code Enforcement / Rental Housing Administrative Coordinator reviews and verifies the information. o Complaints that do not warrant action are closed. o Valid complaints result in a code enforcement case being opened. 3. Case Opened — Courtesy Letter (approximately 2 weeks) A courtesy letter is issued to notify the property owner of the concern and provide an opportunity to correct the issue voluntarily. 4. Site Visit — Noncompliance Identified Request for Compliance issued (up to 30 days to comply) 5. Final Request for Compliance (additional 30 days) Issued if the violation remains unresolved. 6. Notice of Violation and Order (additional 30 days) Formal enforcement action requiring compliance. 7. Site Visit — Continued Noncompliance Notice of Assessment issued (additional 30 days) 8. Abatement Initiated when compliance is not achieved through prior enforcement steps. Additional Considerations At any point in this process, a case may be referred to a Hearing Examiner, which can extend resolution timelines by months or, in some cases, years. The City prioritizes achieving compliance whenever possible and works with cooperative property owners to allow phased corrections when appropriate, supporting a more affordable and continuous path to compliance. Rental Housing: Rental Housing Business Licensing and Inspection Program Tukwila Municipal Code Chapter 5.06 establishes regulations pertaining to rental housing licensing and inspection. Residential rental properties are required to obtain an annual rental business license. As of February 2, 2026, the Rental Housing Program has 4,913 registered rental units and 575 active rental licenses (one license per property) and 352 properties have renewed their 2026 rental licenses. Late fees begin March 1 at a rate of $15 per month until the license is renewed. In addition to annual licensing, all rental housing units in the city must pass an inspection every 4 years. This allows the city to catch and correct health and safety violations that otherwise tenants might be reluctant to report due to language barriers or fear of retaliation by landlords. The purpose of the periodic inspections is to ensure that all rental units are safe, healthy, and suitable for occupancy. The inspectors check for properly working door locks, functional appliances, windows that are intact and that open, smoke and carbon monoxide detectors, adequate emergency escape routes, mold, and other items. Some of the most common maintenance items that we find during inspections are improperly installed and maintained water heaters, water leaks, and missing or inoperable carbon monoxide or smoke detector(s). Properties with up to 12 units may use a city inspector (code enforcement officer) while all larger properties must use a private inspector who meets specific qualifications. The city may also inspect 42 https://tukwilawa.sharepoint.com/sites/clerksintranetlCouncil Agenda Items/02-09 _COW/2025 Rental Housing & Code Enforcement Update.docx units inresponse [ocomplaints and audit inspections submitted bv private inspectors if the quality of the inspections in in question. |n2025vv*did 7 courtesy inspections; 5ofthose failed, 2 have been brought into compliance. The rental program continues to show its effectiveness in improving housing quality in the city. During the program's first round of inspections from 2010-2014 we found many properties with deferred maintenance and poor living conditions that the City was able to require landlords to fix. Now mme are seeing mmincreased number mf units fail after xVe paused inspections and gave a 2-year extension due to Cov|d' 2022 Inspections began again in March of 2022. In 2022, the city conducted 105 inspections; 29 properties failed, all have been brought into compliance. 2023 In 2023, the city inspector conducted 139 inspections; 48 properties failed, currently 42 of those properties have been brought into compliance. 2024 In 2024, the city conducted 149 inspections; 42 properties failed, 40 have currently been brought into COOnp|i2nCe. 2025 In 3025, the city conducted 140 inspections; 20 properties failed, 10 have currently been brought into COnnp|i8nCe. 2026-2027 In 2026, 94 licenses (504 rental units) are due for their next zone inspection; of those properties 7 have 13+ units and will be inspected by a private inspector. As of now, in 2027, 148 licenses (1,418 units) will bedue for inspection. The Residential Rental License and Inspection Program YTDrevenue for 2O2OiS$27,72O;revenue 2026RENYAL BUSINESS LICENSE FEES: * $93for properties with uptOfour units * $241for properties with 5tO20units * $3O2for properties with 21tO5Ounits * $375for properties with 51O[more units 2O2GRENTAL INSPECTION FEES: 0 $88 per unit up to 4 units; each additional. unit, up to 12, is $41 per unit. ATTACHMENTS 0 Rental Program Amendment Overview (PowerPoint) Agenda |mmoNc-0V—c0W/2n25Rental Housing &Code EnmmnmentUpdate.docx 43 Rental Housing Inspection Program Current Structure and Proposed Incentive Amendment City of Tukwila Community Development- Rental Housing 44 Program Purpose 2 • Protect public health and safety • Ensure minimum housing and habitability standards • Provide consistent, predictable inspections across the City • Maintain strong tenant protections 45 Current Program Overview How properties enter the program New Rental License, new to the program 1. An initial inspection is required prior to entering the program. 2. Once approved, the property is placed into the four-year inspection cycle for its geographic zone, unless the inspection occurred within one year of the scheduled zonal inspection. s This process ensures that every rental unit within the City of Tukwila is inspected at least once every four years under the current program. 46 Current Inspection Program Flow Chart Is th►e property newly constructed? YES ► Skip initial cycle he property new to he rental license program? Existing rental License 4 YES Enter standard four ► year zonal inspection cycle inspection required YES Enter standard four - Year zonal inspection cycle Continue standard four-year zonal inspection cycle Failed units need einspection 47 Proposed Program Amendment Incentive Based Inspection Model for Highly Maintained Properties Program Intent The proposed amendment introduces a performance -based incentive for consistently well -maintained rental properties, while preserving full inspection authority and tenant protections. The goal • Encourage proactive maintenance by property owners • Reduce inspection burden on properties that demonstrate long term compliance • Maintain public safety through targeted inspections and enforcement safeguards Eligibility • Applies to all rental properties except single family rentals with only one dwelling unit. • Single family rentals are excluded due to the minimal inspection cost and frequency, currently $88 every four years. 48 Highly Maintained Properties Incentive Pathway Modified Inspection at the Next Four -Year Cycle At the next scheduled four-year inspection, the City conducts the inspection. The City will inspect, 12 randomly selected units, or 50 percent of the units if the property contains fewer than 12 units. No private party inspections are permitted for the modified inspection. 6 49 Highly Maintained Properties Incentive Flow Chart All units inspected in an existing rental property, passed on initial inspection 7 YES Eligible for incentive NO incentive revoked. Standard enforcement and reinspection Special Provisions City Inspected Properties For properties with 12 or fewer units that are inspected by the City: • If the property receives a 100 percent pass, • The property may skip the next four- year inspection cycle entirely, • With no City audit during that cycle. Continue standard four-year zonal inspection cycle City Inspectors conduct modified inspection 12 random units or 50 percent if fewer than 12 units Courtesy Inspection Safeguard Tenants may request courtesy inspections at any time. If a property participating in the incentive program fails a courtesy inspection: • The incentive status is revoked. • The property must complete a full inspection at the next scheduled cycle. This safeguard ensures tenant complaints and health or safety concerns are always addressed. PASSED ANY UNIT FAILED Full' property inspection required per standard zonal inspection Failed units need reinspection 50 Courtesy Inspection Safeguard 8 • Tenants may request courtesy inspections at any time • Courtesy inspections remain available regardless of incentive status • If a participating property fails a courtesy inspection: • Incentive eligibility is revoked • Full inspection required at the next scheduled cycle This safeguard ensures tenant health and safety concerns are always addressed. 51 9 What Does Not Change • Inspection authority • Tenant complaint process • Enforcement tools • Four-year cycle structure Single Family Rental Exclusion • Single family rentals with only one dwelling unit are not included • These properties are already inspected every four years • Current inspection cost is $88 per cycle • Due to low cost and limited inspection burden, no incentive modification is proposed 52 Next Steps and Council Direction 10 • Receive Council feedback on the proposed incentive -based inspection amendment • Confirm whether Council supports staff developing an ordinance to amend the code • Refine proposal scope or safeguards based on Council direction Return to Council with a formal ordinance for consideration, if directed 53 Thank you Nick Waggood (he/ him) Building Official I City of Tukwila 6300 Southcenter BI, Suite 100 Tukwila, WA 98188 Nick.Waggood@TukwilaWA.gov 54