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HomeMy WebLinkAboutCOW 2020-11-23 Item 4E - Resolution - Residential Rental Housing Licensing and Inspection ProgramAve190a COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/23/20 KS ❑ Motion Mtg Date ' Resolution 12/7/20 KS ❑ Public Hearing Mtg Date ❑ Other Mtg Date Altg Date Altg Date 12/7/20 SPONSOR ❑ Council ❑ Mayor ❑ HR 11 DCD ❑ Finance ❑ Fire ❑ TS ❑ P&R ❑ Police ❑ PW SPONSOR'S A brief program update and a resolution updating the rental housing program fee schedule SUMMARY for 2021 and 2022. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. DATE: 11/16/20 COMMITTEE CHAIR: MCLEOD /1 Planning/Economic Dev. ❑ Planning Comm. ITEM INFORMATION ITEM No. 4.E. 133 STAFF SPONSOR: KIA SHAG ENA ORIGINAL AGENDA DATE: 11/23/20 AGENDA ITEM TITLE Briefing on Rental Housing Program & Updating the Rental Housing Program Fee Schedule CATEGORY 11 Discussion 11/23/20 ❑ Motion Mtg Date ' Resolution ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Altg Date Altg Date 12/7/20 SPONSOR ❑ Council ❑ Mayor ❑ HR 11 DCD ❑ Finance ❑ Fire ❑ TS ❑ P&R ❑ Police ❑ PW SPONSOR'S A brief program update and a resolution updating the rental housing program fee schedule SUMMARY for 2021 and 2022. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. DATE: 11/16/20 COMMITTEE CHAIR: MCLEOD /1 Planning/Economic Dev. ❑ Planning Comm. RECOMMENDATIONS: SPoNsoR/ADMIN. COMMITTEE Department of Community Development Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/23/20 12/7/20 MTG. DATE ATTACHMENTS 11/23/20 Informational Memorandum dated 11/16/20 Resolution (strike-thru underlined format after 11/16 PED Committee) Rental Housing Program — Dashboard 11/9/2020 Rental Housing — Inspection Checklist Minutes from the Planning & Economic Development Committee meeting of 11/16/20 12/7/20 133 134 W i City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development Committee FROM: Minnie Dhaliwal, Community Development BY: Kia Shagena, Code Enforcement Officer CC: Mayor Ekberg DATE: November 16, 2020 SUBJECT: Updated Rental Housing Licensing Fees and Program Update ISSUE Should Tukwila increase its rental housing licensing fees and inspection rate to adjust for inflation in staff costs? BACKGROUND The City established the Residential Rental Business License and Inspection Program in 2010. This program was established for rental units to protect the public health, safety and welfare by ensuring the proper maintenance of such housing, 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. At the Council meeting on June 15, 2020, that adopted the resolution waiving late fees due to COVID, the Council had asked for a briefing on the program. Additionally, the licensing and inspection fees for 2021 and 2022 need to be adopted at this time. DISCUSSION Briefing on the Rental Housing Licensing and Inspection Program: Tukwila Municipal Code Chapter 5.06 establishes regulations pertaining to rental housing license and inspection. Residential rental properties are required to obtain an annual rental business license. In addition to annual licensing, all rental housing units in the City must pass an inspection every 4 years. As of November 4, 2020, The Rental Housing Program has 4357 registered rental units and 604 active rental licenses (one license per property). Properties with up to 4 units may use a City inspector while all larger properties must use a private inspector who meets specific qualifications. The City may also inspect units in response to complaints and audit inspections submitted by private inspectors when inspection reports are in question. A total of 86% of all registered units have up to date passing inspections, while 14% are due for their next inspection (See Attachment B). Inspections ensure compliance with minimum health safety standards (See Attachment C). Fee Update for 2021-2022 All program late fees for 2020 were waived in response to the ongoing COVID-19 pandemic. As of November 4, 2020, 73 properties have yet to renew their 2020 rental license. Not including new rental licenses, 572 units were due for inspection in 2020. Due to social distancing measures nearly all property owners have postponed their 2020 inspections. 1175 units are due for inspection in 2021. In response to the ongoing pandemic and social distancing requirements, staff has developed a virtual rental inspection beta program to address inspection needs. 135 136 INFORMATIONAL MEMO Page 2 Staff has found monthly late fees for overdue license renewals to be an effective tool. Staff proposes to reinstate late fees for both overdue licenses and overdue inspections. Additionally, staff is recommending that the residential rental business license and inspection fees for 2021-2022 be increased by 1.5% to keep up with the costs of the program. This is based on the fact that the salaries for represented employees will likely increase in 2021 and 2022 by 90% of the Seattle Consumer Price Index (CPI -W). The CPI -W was 1% for the June 2020 period and additional cost increases are anticipated with the employee benefit costs. FINANCIAL IMPACT The proposed fee increases will keep pace with the City's costs to provide these necessary services. RECOMMENDATION The Committee is being asked to approve the resolution for 2021-2022 fees and consider this item at the November 23, 2020 Committee of the Whole and December 7, 2020 Regular Meeting. ATTACHMENTS Attachment A. Draft Residential Rental Licensing Fee Resolution Attachment B. Rental Housing Program Dashboard — 11/9/2020 Attachment C. Rental Housing - Inspection Checklist https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/InfoMemo_RHP_2020-2022_FeeSchedule.docx NOTE: Text in track changes reflects revisions made after 11/16/20 Planning and Economic Development Committee meeting. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A RESIDENTIAL RENTAL BUSINESS LICENSE AND INSPECTION PROGRAM FEE SCHEDULE; AND REPEALING RESOLUTION NO. 1946. WHEREAS, the City has adopted a Residential Rental Business License and Inspection Program, pursuant to Tukwila Municipal Code Chapter 5.06; and WHEREAS, the program has significantly improved the condition of the City's rental housing stock over the past 10 years; and WHEREAS, the City is authorized to impose fees for services rendered; and WHEREAS, the fees for this program are intended to offset most of the cost of providing this service; and WHEREAS, the costs to administer the program have increased since the last fee review in 2018; and WHEREAS, the cost to administer the licensing program increases in proportion to the number of units per site; and WHEREAS, due to the impacts of the current COVID-19 public health crisis, many residential rental property owners are experiencing economic hardship; and WHEREAS, postponing the assessment of 2021 Residential Rental Business License late fees from March 2021 to September 2021 may provide economic relief to residential rental property owners; and WHEREAS, the continued renewal of Residential Rental Business Licenses and up-to-date rental inspections are critical to maintaining safe and healthy rental housing; and WHEREAS, residential rental property owners who are up to date with all Residential Rental Business License requirements, including up-to-date, approved rental inspections by September 30, 2021, may have any previously outstanding 2019 Residential Rental Business License late fees or penalties waived; and CC: \Legislative Development\Residential Rental Licensing fee schedule strike -through 11-17-20 KS:bjs Review and analysis by Barbara Saxton Page 1 of 3 137 WHEREAS, waiver of those outstanding 2019 Residential Rental Business License late fees and penalties may provide economic relief to residential rental property owners; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Residential Rental Business License and Inspection Program fees will be charged according to the following schedule: RESIDENTIAL RENTAL BUSINESS LICENSE AND INSPECTION FEES DESCRIPTION 2020 LICENSE 2021 LICENSE 2022 LICENSE Annual Residential Rental Business License: $245.00 $249.00 $252.00 Property with one, two, three or four units $ 75.00 $ 76.00 $ 77.00 Property with 5 to 20 units $195.00 $198.00 $201.00 DESCRIPTION 2020 LICENSE 2021 LICENSE 2022 LICENSE Property with 21 to 50 units $245.00 $249.00 $252.00 Property with 51 or more units $305.00 $310.00 $314.00 License fees for units rented for the first time on or after July 1st of each year are reduced by 50%. Late fee per month if existing license is not renewed before March 1 Waived effective 6/16/20 $10.00 Waived $10.00 through 9/30/2021 Penalty fee if a new unit is leased before a license and inspection is obtained $ 50.00 $50.00 $50.00 Inspection fee per unit (City inspector) $ 60.00 $ 61.00 $ 62.00 Re -inspection fee per unit (City inspector) $ 60.00 $ 61.00 $ 62.00 Late fee per unit, per month, if Inspection Checklist is not submitted by September 30 of the year it is due Waived effective 6/16/20 $10.00 $10.00 Hearing Examiner appeal fee $340.00 $340.00 $340.00 Outstanding 2019 Residential Rental Business License late fees shall be waived for residential rental property owners who are up-to-date with all Residential Rental Business License requirements by September 30, 2021, including up-to-date, approved rental inspections. CC: \Legislative Development\Residential Rental Licensing fee schedule strike -through 11-17-20 KS:bjs Review and analysis by Barbara Saxton 138 Page 2 of 3 Section 2. Repealer. Resolution No. 1946 is hereby repealed in its entirety as of 11:59 PM on December 7, 2020. Section 3. Effective Date. This resolution and the fee schedule contained herein shall be effective as of 12:00 AM on December 8, 2020. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2020. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk De'Sean Quinn, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney CC: \Legislative Development\Residential Rental Licensing fee schedule strike -through 11-17-20 KS:bjs Review and analysis by Barbara Saxton Page 3 of 3 139 140 Lf)0 Lf) Q © L con w M1 w 0 tf}Li_ N CY)0 r � CO 0- p, N L2r o lO W N PROGRAM REVENUE BYYEAR V) w w U- LLJ W O z w I.-- O 0 u w w 2 < ▪ zw E gz V W WW ▪ a ceW 0 0 0 64 64 64 OIYd 5334 Ir } RENTAL LICENSES BY STATUS 0 C. 0 0 0 0 0 TY N LICENSE STATUS 0 �o 0 00 LL 11110 CO OS tCL) PENDING INSPECTION 141 142 nspection Report and Checklist Rental Housing Program - -j oct it p � UNIT DOES NOT PASS IF INSPECTION RESULTS EQUAL 25 POINTS OR MORE Dwelling Type * -1 E Single-family Property Owner: Inspection Results Rental Address: E Accessory Dwelling Unit Final Inspection Score E Studio/Efficiency Unit o _ Bathrooms: [ / I Property Name: CITY OF TUKWILA OFFICIAL RENTAL INSPECTION REPORT INSPECTOR SIGNA INSPECTOR NAME (PRINTED): DATE OF INSPECTION: REINSPECTION DUE DATE: />- REINSPECTION REQUI U L Ln Ln in Lri NNNNN ( NN N N r E ro ro ro ro ro \ CC a _ •ac azar• .resent a•• 25 .oints to Fina Ins .ection Scor• LL s_ _c . \ ± \ ® o % TuTv . 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N o ro O Y -Q To is O Y Yro O U v N ea QOU vU N (0 0 v a) v w to al YW Y YN aJ w (a C Y O C t = O 0) .5 5 O 8',T, 3 C H Y _c a al N Q- Q .05 v N J C 0 Q c Y x _ _c Q1 O uO W Y U d = Y a a1 N Y N V E > m c U_ Z oN c a Ov_+ O Y ai Pco C uro -0 v Y W c -o 4- 13. C. a3 O v til E N c Z a o 0 c u (7 - E�n Z_ N n 0 1 ;; J Z Q O ~u Z W W CC c144 and severity level. cn W 1- 0 z z 0 1- u W a v) z J a z 0 0 0 a146 City of Tukwila City Council Planning & Economic Development Committee Meeting Minutes November 16, 2020 - 5:30 p.m. - Electronic Meeting due to COV/D-19 Emergency CouncilmembersPresent: Thomas McLeod, Chair; Kathy Hougardy, Zak Idan David Cline, Jack Pace, Minnie Dhaliwal, Lynn Miranda, Derek Speck, Brandon Miles, Laurel Humphrey Staff Present: Chair McLeod called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Ordinance: Permitted Development in Tukwila International Boulevard Study Area Staff is seeking Council approval of an ordinance to amend the Zoning Code to update regulations related to certain auto -oriented and lodging uses in the Neighborhood Commercial Center (NCC) and Regional Center (RC) districts located in the TIB study area. The Planning Commission did not reach consensus on four land use categories, and the Committee decided against making a recommendation. Committee Recommendation No recommendation. Forward to November 23, 2020 Committee of the Whole for Public Hearing. B. Resolution: Consolidated Permit Fee Schedule Staff is seeking Council approval of a resolution to adopt Public Works, Land Use and Building Permit fee schedule. Committee Recommendation Unanimous approval. Forward to November 23, 2020 Committee of the Whole. C. Residential Rental Housing Licensing and Inspection Program - Update & Resolution Staff is seeking approval of a resolution to adopt a Residential Rental Business License & Inspection Program fee schedule. Item(s) requiring follow-up: Add provision waiving 2019 outstanding fees for property owners who become up to date on their license and inspection by September 2021. Committee Recommendation Unanimous approval as amended. Forward to November 23, 2020 Committee of the Whole 147