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HomeMy WebLinkAboutPCD 2025-12-08 Item 1C - Resolution - 2026 Rental Housing FeesThomas cLeod, Mayor eprtraaent unity Development - Nor lero AICP, Director INFORMATIONAL MEMORANDUM TO: Planning and Community Development Committee FROM: Nora Gierloff, Community Development Director BY: Nick Waggood, Building Official CC: Mayor Thomas McLeod DATE: November 12t", 2025 SUBJECT: Updated Rental Housing Fee Resolution ISSUE Establish a new fee schedule for the Residential Rental Business License and Inspection program, consisting of a 5 percent increase applied each year, with results rounded to whole dollars, plus flat fee increases to fines and penalties to better align revenue with the actual administrative and enforcement costs. BACKGROUND The City established the Residential Rental Business License and Inspection Program in 2010 after discovering severely deteriorated conditions at an apartment building that required all units to be vacated and rehabbed. The goal was to take proactive action to protect the public health, safety, and welfare by ensuring the proper maintenance of such housing, identifying and requiring correction of substandard housing conditions, and preventing conditions of deterioration and blight that could adversely impact the quality of life for the majority of our residents who live in rental housing. Each unit is required to be inspected once every 4years. During the first inspection cycle (2010-2014) we had many units fail. This number was reduced after subsequent inspections were performed during the next cycle, demonstrating steady improvement in overall housing quality. In 2020 and 2021 inspections were paused due to the pandemic. In 2022 when we began scheduling rental inspections, again we found that many property owners had deferred maintenance, causing units to deteriorate and therefore fail rental inspections. This shows that the program has been effective in improving overall rental housing quality in the city. It is clear that without regular inspections rental housing conditions, and our residents, will suffer. DISCUSSION The current adopted fee table for the City's Residential Rental Business License and Inspection program is established through 2025. Annual fee adjustments are necessary to maintain cost recovery for inspection, licensing, and enforcement activities. As inspection staffing needs and enforcement workloads have increased, modest and predictable fee increases are preferable to large, infrequent adjustments. Afive percent annual increase aligns with recent practice and provides a simple, consistent structure for both Tukwil r City Hall • 6200 Southcenter Boulevard • Tukwila, A 98188 • 206-8#.t800 • Website: TukwilaWA.gav 21 Landlords and staff, while rounding towhole dollars simplifies billing. |naddition, fines and Late fees are proposed aaflat increases rather than percentage -based adjustments to better reflect the fixed administrative cost associated with processing and enforcing violations. In order to target our resources toward less wel.I.-maintained properties staffproposes todevelop code changes to allow properties that pass two inspection cycles with no significant findings to skip an inspection cycle. Staff will return in 2026 with options for the Council's review. There are ototal of585rental Licenses for 4L921units inthe City. AaofNovember zi2O25'3properties have yet to renew their 2025 rental license. Not including new rental Licenses, 26 licenses are still due for inspection in2O25;96Unenaea/508units are due for inspection in2O2G. FINANCIAL IMPACT The proposed fee increases will help offset the programs'staffing costs white continuing to provide these necessary services. RECOMMENDATION The Council is being asked to approve the resolution for 2026-2028 fees and forward this item to the consent agenda atthe December 15.2025Regular Meeting. ATTACHMENTS Attachment A.Draft Residential Rental Licensing Fee Resolution AtaohrnentB.RmntaiHouuinA—|nopmctionChookUnt phone:2V6'433-DB00 * Ennail:|Neyor@Tuhwi( ~ VVebske:Tuhwi 22 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. 2054. 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 16 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 continued renewal of Residential Rental Business Licenses and up- to-date rental inspections are critical to maintaining safe and healthy rental housing; 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 205 2026 LICENSE 2027 LICENSE 2028 LICENSE LICENSE Annual Residential Rental Business License: Property with one, two, three or four units : ="III $ 93.00 $ 98.00 $103.00 Property with 5 to 20 units $241.00 $254.00 $267.00 2025 Legislation: Rental Housing Fee Update Version: 12/01/2025 Staff: N. Waggood Page 1 of 2 23 Property with 21 to 50 units $287.00 $302.00 $318.00 $334.00 Property with 51 or more units 57 $375.00 $394.00 $414.00 f ri nse fees fort nit r .k t ;=c fo the firs tra sl or after a�� l 13t o cP y°r at ate reduced b0` . Late fee per month if existing license is not renewed before March 1 $ 10.00 $ 15.00 $ 20.00 $ 25.00 Penalty fee if a new unit is leased before a license and inspection is obtained $ 50.00 $ 65.00 $ 75.00 $ 85.00 Rental Inspection Fees (City Inspector): Inspection fee per unit, first 4 units * I $ 88.00 $ 93.00 $ 98.00 _.ti Additional unit inspections up to 12 units $ 41.00 $ 44.00 $ 47.00 Re -inspection fee per unit $ 39.00 $ 41.00 $ 44.00 $ 47.00 Late fee per unit, per month, if Inspection Checklist is not submitted by September 30 of the year it is due $ 10,00 $ 15.00 $ 20.00 $ 25.00 NAe tl See Resoli'ut'ion 2'105): 7earin xaVf"nEnel` ...1.........�................... Hearing Examiner appeal fee $ 23:62 $858.21 $ - $ - Section 2. Repealer. Resolution No. 2054 is hereby repealed in its entirety as of 11:59 p.m. on December 31, 2025. Section 3. Effective Date. This resolution and the fee schedule contained herein shall be effective as of 12:00 a.m. on January 1, 2026. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2025. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President APPROVED AS TO FORM BY: Office of the City Attorney 2025 Legislation: Rental Housing Fee Update Version: 12/01/2025 Staff: N. Waggood Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2 of 2 24 Attachment B Rental Housing — Inspection Checklist 25 CITY OF ��"0 0���.���� N N �J� 0 0 �^ N � Property Owner: Rental Address: Property Name: Unit #: Zone: Rental Housing Program - Inspection Report and Checklist UNIT DOES NOT PASS IF INSPECTION RESULTS EQUAL 25 POINTS OR MORE Dwelling Type wsmole-famo Bedrooms: Bathrooms: ( Gondominium '»«nle^ CITY OFrVKxmLAOFFICIAL RENTAL INSPECTION REPORT DATE mINSPECTION: INSPECTOR NAME (PRINTED): REIN5PECTION REQUIRED? NEXT INSPECTION DUE BY: ,mupwx 'Apartment wy~umts Accessory Dwelling omm 'Studio/Efficiency Unit INSPECTOR SIGNATURE FILE # Inspection Results Final Inspection Score POST INSPECTION COMMENTS / REQUIRED CORRECTIVE ACTIONS ommnDS-check all hazards that apply. Plumbing system hazards found 'mMC504.3 Mechanical equipment improperly installed and maintained /pwCxn.z Un'Permitt dconstmctionwmrk-Twc16.v4.n20 Unsafecondition/structure /,Mc304.` Combustion air supply isinadequate for fuel burning equipment /,mcnus Unit does NOT have electrical service provided by Utility- /,mc«4., Electrical system hazards found /,mcm^ Other hazards found /,mcmo Describe hazard: Fire doors are blocked, obstructed, nrinoperable '/PMC70o Inadequate emergency egress from one o,more habitable spaces '/PMCmm Doors, bars, grilles, grates nveremergencyeaopeopeningsaeNOTmadilyope,ab|ehnminside,withnutkey or special knowledge '/,Mcnna*mw Missing/inoperable Smoke detector(s): Detectors required for each story; each bedroom; immediately outside each sleeping area /,mcnw Missing or inoperable Carbon monoxide detector(s): Detectors required for each story; immediately outside each sleeping area mWmzzsm One ormore bedroom under 7O,qft/,mCww^z 25 25 25 25 25 25 25 25 25 25 25 25 25 25 For each hazard present add 25 points to Final Inspection Score COMMENTS RENTAL HOUSING INSPECTION CHECKLIST DIRECTIONS: If code standard is not met the inspector will mark the applicable section with the appropriate point value based on the severity of the violation. Severity levels are defined as minor, moderate, or severe (except where only a single score option is provided). The inspector will mark NA if not applicable and will add inspection notes to support ratings. Sections left blank indicate compliance with the referenced standards. Total score shall be calculated based on assigned non-compliance point values assigned to each violation and severity level. An inspection does not pass if there is a total of 25 or more non-compliance points (NC-PTS). INTERIOR CONDITIONS INTERNATIONAL PROPERTY MAINTENANCE CODE (IPMC) STANDARD \\J`•°c � rem ��� part° p `° pa`rt°.peas°©.peas°°p £©ccs °peas°° °� , '�ccs e ��`c°s cc0aet4e1¢syGOQ� Windows and frames in good repair-IPMc3os.3 Floor surface in good repair-IPMc305.4 Wall surface in good repair - IPMC 305.3 No visible mold, mildew, or signs of moisture or leaks-IPMC504.1 Adequate source of heat - IPMC 602.3&602.5 No evidence of insect or rodent infestation/harborage - IPMC 302.5&309 Functional lighting fixtures- IPMC 402.2&402.3 Two separate & remote electrical outlets per room - IPMC 605.2 Minimum of 1 openable, approved -size window facing directly to the outdoors-iPMc 402.1 & 403.1 Stove vent properly connected and functional - IPMC 302.6&403.4 Has a clear path of not less than 3' clearance between counterfronts and appliances or walls - 1PMc 404.2 Has kitchen sink, cooking stove, refrigerator, and counter space - IPMC 404.7&502.1 1 grounded -type receptable or GFCI: laundry, kitchen, garage, basement- IPMC 605.2 Hot and cold water to all plumbed fixtures-iPMc 505.1 Clothes dryer exhaust vented properly to exterior- IPMC 403.5 Water heater correctly installed - IPMC 505.4 Door for privacy, in good repair, securely attached -IPMC 503.1 Separate bathroom with toilet, sink, & tub/shower- IPMC 404.4.3 Bathroom/toilet room properly ventilated (openable screened window or functional mechanical fan)- IPMC 403.2 Has at least one electrical receptacle -IPMc605.2 1 2 3 0 1 2 3 0 1 2 3 0 1 5 25 0 25 0 3 10 25 0 1 2 3 0 2 0 1 5 25 0 1 10 0 0 25 0 0 25 0 25 0 25 0 © 10 2 1 2 3 0 25 0 0 0 INSPECTION NOTES: V v EXTERIOR STRUCTURE / EXTERIOR PROPERTY NTERNATIONAL PROPERTY MAINTENANCE CODE (IPMC) STANDARD Surfaces in good repair-IPMc304.2 Address numbers 4" tall & visible from the street-ipMc304.3 Strutural members in good repair-iprc304.4 Foundation walls in good repair-ipMc304.5 Exterior walls in good repair-o'Mc304.6 Roof and drainage in good repair-iPMc304.7 Decorative features in good repair- IPMC 3o4.8 Overhang extensions in good repair-iPMc304.9 Stairways, decks, porches, balconies in good repair-IPMc304,10 Handrails and guardrails firmly fastened - IPMC 304.12 Chimneys and towers in good repair. IPMC 304.11 Exterior doors in good repair; deadbolt locks operable by knob; deadbolt throw not less than 1 inch - IPMC 304.15 Clean, safe & sanitary/no uncontained debris- IPMC 302,1 Approved waste containers w/tight fitting lids - IPMC 3oa Sidewalks/driveways free of hazards. IPMC 302.3 No weeds in excess of 12 inches - IPMC 302.4 No evidence of insect or rodent infestation/harborage - IPMC 3025&309 Accessory structures in good repair-ipMc302.7 No junk vehicles/repair outside garage- IPMC 302.8 Free from graffiti - IPMC 302.9 No standing water or erosion - IPMC 302.2 Swimming Pools, Spas & Hot Tubs - Clean, sanitary, in good repair-iPMc303.1 Swimming Pools, Spas & Hot Tubs - Enclosure 60" high, w/self-closing latch - IPMC 303.2 NSPECTION NOTES 2 3 0 1 0 10 25 0 3 10 25 0 10 25 0 2 10 25 0 1 0 2 10 25 0 10 25 0 2 10 25 0 10 25 0 2 10 25 0 5 10 0 1 5 10 0 3 5 0 1 3 10 0 10 25 0 3 10 25 0 5 10 0 1 3 5 0 2 0 1 5 10 0 10 25 0 space for additional inspection notes on back ADDITIONAL INSPECTION NOTES N