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Home My WebLink AboutCOW 2024-02-12 Item 4C.1 - Update - Rental Housing ProgramCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 2/12/24 NG ITEM INFORMATION ITEM No. 4.C. (1) STAFF SPONSOR: NORA GIERLOFF ORIGINAL AGENDA DATE: 2/12/24 AGENDA ITEM TITLE Rental Housing Program Update CATEGORY ® Discussion Mtg Date 2/12/24 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mfg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ® DCD Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY 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. The Rental Housing team is also responsible for managing and administering the Residential Rental Business License and Inspection Program. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: RECOMMENDATIONS: SPONsoR/ADMIN. Department of Community Development COMMITTEE None, direct to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 2/12/24 MTG. DATE ATTACHMENTS 2/12/24 Informational Memorandum dated 2/12/24 Power Point Presentation 55 56 TO: FROM: BY: CC: DATE: SUBJECT: ISSUE Review the City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM Committee of the Whole Nora Gierloff, Community Development Director Joseph Mose, Code Enforcement Officer Lori Solberg, Rental Housing Program Admin Mayor McLeod February 12, 2024 Rental Housing Program Update Rental Housing Program's background and current activity. BACKGROUND 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. DISCUSSION Current Code Enforcement activity: As of January 24, 2024, code enforcement has 29 open enforcement cases related to rental housing, most of the cases are for overdue rental licenses and/or inspections, however, a few are for confirmed rentals that do not have a license and/or complaint -based issues. 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 January 24, 2024, the Rental Housing Program has 4,587 registered rental units and 548 active rental licenses (one license per property). As of January 24, 2024, 300 properties have renewed their 2024 rental licenses. Late fees began March 1 at a rate of $10 per month until the license is renewed. Rental Inspections 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. 57 INFORMATIONAL MEMO Page 2 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. In the past the city inspector only inspected properties with up to 4 units, this was raised to 12 in 2023. The city may also inspect units in response to complaints and audit inspections submitted by private inspectors if inspection reports are in question. In 2023 we did 12 courtesy inspections; 7 of those failed, 4 have been brought into compliance. The rental program continues to show its effectiveness in improving housing quality in the city. Similar to what we saw during our first round of inspections, when the program was first implemented (2010-2014), we are seeing more units fail after we paused inspections and gave a 2-year extension due to Covid. Inspections began again in March of 2022. In 2022, the city conducted 105 inspections; 29 properties failed, of those 20 have been brought into compliance. In 2023, the city inspector conducted 137 inspections; 42 properties failed, 20 of those have been brought into compliance. This year, 116 licenses (2,177 rental units) are due for their next inspection; of those 19 licenses will be done by a private inspector. In 2025, 148 licenses (732 units) will be due for inspection. Here are a few instances where Rental Housing was contacted for assistance with various units. Hampton Heights On June 29, 2022, the Fire Department notified us about a significant issue at the Hampton Heights apartment complex. A tenant in building #2 reported an active sewer backflow, resulting in raw sewage flooding her apartment and the center hallway. Code enforcement officers confirmed the reported problems and discovered additional issues such as missing smoke detectors in the hallways of building #3 and exposed wires from electrical outlets. Subsequent courtesy rental housing inspections for four units revealed failures. On July 21, 2022, the owner was notified to address the violations by August 19, 2022, with the possibility of a Notice of Violation and Order if compliance was not achieved. On August 10, 2022, the Property Owner contacted the City, providing updates on repairs for the inspected units, excluding those not in compliance with rent payments. By November 25, 2022, a follow-up inspection confirmed repairs had been made or scheduled for the units with previous violations. However, as of January 23, 2024, a complaint from the Tukwila Police Department highlighted concerns of vacant units being used by squatters. An on -site visit revealed multiple rental violations in the hallways of building #3, damaged properties, and Fire Code Violations. We are currently in the process of compiling a detailed report and reaching out to the property owner to address the situation promptly. 58 INFORMATIONAL MEMO Page 3 Courtesy Inspections Single Family Home: On December 13, 2023, Rental Housing received a tenant complaint outlining various violation conditions, primarily concerning a leak in the bedrooms downstairs. A scheduled Courtesy Inspection on December 17, 2023, revealed a failing score of 262 points for the unit, citing deficiencies such as ceiling and wall leaks, rat infestation, overgrowth, and missing smoke detectors. Additionally, it was discovered that the property had not been registered with a rental license despite being used as a rental for over two years. Consequently, a Code Enforcement case was initiated to address these issues, and discussions with the owner have taken place, making them aware of both the necessary fees and required repairs, with further updates anticipated. 59 INFORMATIONAL MEMO Page 4 Multi -Family Home: Rental Housing received a request from a social worker at Cascade View expressing concerns about the living conditions of an immigrant family residing in Park Avenue Apartments, who faced language barriers. The last official inspection for the property was conducted in 2021, with the next scheduled inspection set for 2025. A courtesy inspection on 4/26/2023 revealed significant issues, primarily mold buildup in all corners of the 1-bedroom, 1-bath unit. Following standard rental housing procedures, collaboration with the property manager and owner resulted in successful remediation of the mold and other deficiencies, achieving compliance by 10/3/2023 after a reinspection. Notably, this single courtesy inspection acted as a catalyst for broader improvements, prompting a mass repair and cleaning initiative for other units not initially inspected by the City. The next scheduled inspection for the property is slated for 9/30/2025. FINANCIAL IMPACT The Residential Rental License and Inspection Program YTD revenue for 2024 is $10,949, 2023 was $58,442, 2022 was $44,241; 2021 was $51,728; 2020 revenue was $55,123; and 2019 revenue was $52,313. 2024 RENTAL BUSINESS LICENSE FEES: • $84 for properties with up to four units • $218 for properties with 5 to 20 units • $273 for properties with 21 to 50 units • $340 for properties with 51 or more units 2024 RENTAL INSPECTION FEES: • $79 per unit up to 4 units; each additional unit, up to 12, is $37 per unit. RECOMMENDATION Information and discussion only. 60 Department of Community Development Rental Housing 2023-2024 Update Rental Housing Team I Rental Housing Program Admin Department of Community Development Work Phone: 206-431-3674 Work Email: Lori.Solberg@TukwilaWA.gov Fo Code Enforcement Officer/Rental House Primary Inspector Department of Community Development Work Phone: 206-698-2575 Work Email: Joseph.Mose@TukwilaWA.gov Code Enforcement Officer/Rental House Inspector Department of Community Development Work Phone: 206 571-3153 Work Email: wally.snover@tukwilawa.gov Background • The City established the Residential Rental Business License and Inspection Program in 2010. • 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. • Tukwila Municipal Code Chapter 5.06 establishes regulations pertaining to rental housing license and inspection. Benefits • Improved Housing: - Ensures citizens live in safe and healthy housing - Increases property values - Spurs economic development - Lowers Crime • Proactive inspections address problems without tenant involvement Admin Updates - The city is offering inspections for properties with up to 12 units. Previously city inspectors only performed inspections for properties with up to 4 units. - The rental inspection fee increased from $75 per unit in 2023 to $79 in 2024 per unit for the first 4 units, then each additional unit is $37 each up to 12. - 2024 RENTAL BUSINESS LICENSE FEES: • $84 for properties with up to 4 units • $218 for properties with 5 to 20 units • $273 for properties with 21 to 50 units • $340 for properties with 51 or more units - As of February 05, 2024, the Rental Housing Program has 4,585 registered rental units and 545 active rental licenses (one license per property). Inspection Updates • Increase number of Courtesy inspections by the request of tenants. • One of the main complaints that we receive from tenants are issues dealing with mold and house leaks. • In 2019, the city conducted 133 inspections, but in 2020 and 2021 they were paused due to the pandemic. • In 2022, the Rental Housing Program reinstated scheduled rental inspections. • Numerous property owners have deferred maintenance, leading to unit deterioration and subsequent rental inspection failures. • Emphasizes the critical need for regular inspections to prevent adverse impacts on rental housing conditions and resident well-being. Rental Housing Website WELCOME TO THE CITY OF TUKWILA RENTAL HOUSING PROGRAM The Rental Housing Program is open via phone: email. and virtual appointment Monday - Friday, 8:30 am to 4:00 pm. In -person assistance hours are Mondays, Wednesdays and Thursdays, 8:30 am to 4:00 pm. To meet with staff virtually. please schedule a virtual Teams appointment (please note, this is not for an inspection). You may also email RentalHousing@TukwilaWA.gov or call (206) 431-3674. RENTAL BUSINESS LICENSE PORTAL QQUICK TIPS! NEED HELP RENEWING YOUR RENTAL LICENSE ONLINE? Click here NEED HELP WITH OTHER ONLINE SERVICES? Please email RentalHousing@TukwilaWA.gov COURTESY RENTAL INSPECTIONS Did you know that you can request a City inspector to inspect your rental property if you have concerns about your living conditions? To request a courtesy rental inspection, please contact the Rental Housing Program at RentalHousing@TukwilaWA.gov Rental Housing Inspection Procedures • Residential rental properties are required to obtain an annual rental business license. • All rental housing units in the City must pass an inspection every 4 years. • Properties with up to 12 units may use a City inspector while all larger properties must use a private inspector who meets specific qualifications. Hampton Heights • On January 23, 2024, a complaint from the Tukwila Police Department alerted us to potential issues with vacant units being occupied by squatters. Our on -site visit unveiled troubling findings, including multiple rental violations in the hallways of building #3, property damage, and Fire Code Violations. To address these issues promptly, we are actively compiling a comprehensive report and initiating engagement with the property owner. Visuals below depict the current situation. Courtesy Inspection Single Family Home • On December 13, 2023, a tenant reported numerous violations, notably a downstairs bedroom leak. On December 17, 2023, Courtesy Inspection exposed a unit with a failing score of 262 points, citing issues like ceiling and wall leaks, rat infestation, overgrowth, and missing smoke detectors. No rental license was applied for, in which triggered a Code Enforcement case, with ongoing discussions addressing fees and repairs. Courtesy Inspection Multi -Family Home • Concerns at Park Avenue Apartments, raised by a social worker at Cascade View Elementary, prompted a courtesy inspection on 4/26/2023. Mold issues in their 1-bedroom, 1-bath unit were identified and successfully addressed by 10/3/2023, following collaborative efforts with the property manager and owner. This single inspection triggered wider improvements, leading to a comprehensive repair and cleaning initiative for other units. Notably, the last official inspection for the property was in 2021, and the next scheduled inspection is set for 9/30/2025. Rental Housing Overview ast Updated: 2/5/2024 350 300 250 200 150 100 50 0 e C 289 RENTAL UNITS BY DWELLING TYPE 92 48 65 28 10 13 ■ 2024 to YTD. $10,949 LICENSE ISSUED (2024) 211 2023 $58,442 LICENSES WITH BALANCE DUE 143 2022 $44,241 .••\ 2021 $51,728 TOTAL LICENSE 545 TOTAL UNITS 4,585 e+I �� o�6 P� X c� (<0 C, t� CITY INSPECTORS 139 PRIVATE INSPECTORS 62 Rental Housing Program Questions?