DATE:
June 7, 2022
TO:
Mayor and Council Members
FROM:
Nils Bentsen, City Manager
BY:
Melinda Sayre, Director of Government Services/City Clerk Jacquelyn Castillo, Administrative Analyst
SUBJECT:
Amendments to Title 5 of Hesperia Municipal Code - Self-Certification Component of the Rental Housing Business License and Inspection Program and Implementation of a Self-Certification Fee
RECOMMENDED ACTION
It is recommended that the City Council introduce and place on first reading Ordinance No. 2022-08, amending Title 5 of the Hesperia Municipal Code related to the Self-Certification component of the Rental Housing Business License and Inspection Program. It is also recommended that the Council adopt Resolution No. 2022-36, to implement a self-certification fee for the Rental Housing Business License and Inspection Program.
BACKGROUND
On January 5, 2021, the City Council approved Ordinance 2020-14, amending Title 5 of the Hesperia Municipal Code adding Chapter 5.72 creating a Rental Housing Business License and Inspection Program. This program is intended to ensure safe and healthy housing, protects vulnerable tenants, maintains neighborhood property values, and holds landlords accountable for the maintenance of their properties.
ISSUES/ANALYSIS
Rental Housing Compliance
As of May 26, 2022, a total of 2,368 properties have registered for the program, consisting of 2,077 Single Family Residences and 3,027 Multi-Family Units. Staff continues to conduct outreach and identify unregistered rental properties throughout the City to gain compliance with the program.
Rental Housing Inspections
The City achieved a baseline inspection for all new applicants of residential dwelling units to record the current state of rental properties. If code violations were noted, owners were instructed to cure them within reasonable timeframes. As of May 26, 2022, a total of 3,222 rental housing inspections have been performed and over 40% of rental properties passed on first inspection. Of the nearly 60% of properties that failed on first inspection, approximately 10% of those failed inspections involved serious or hazardous conditions having no or non-functioning carbon monoxide detectors and/or smoke detectors in the residences, improperly strapped water heaters, hazardous electrical issues, dilapidated roofing, and improper occupancy. Less serious violations noted involved inoperative vehicles, trash and debris, water leaks, and broken or obstructed windows.
The inspection process has provided a mechanism for property owners to be accountable for maintaining their properties, while also ensuring that Hesperia renters have access to clean and safe rental properties.
Self-Certification Component for Year Two
Following an initial inspection, property owners who meet eligibility requirements may be permitted to annually self-certify using a checklist and photographs of the property to demonstrate compliance, without the need for an annual physical inspection by staff. Staff anticipates that around 1,500 properties may qualify for self-certification.
As rental housing business licenses are up for renewal, the self-certification component of the program will commence, and staff recommends revising Title 5 of the Hesperia Municipal Code to specify qualifications to participate in the self-certification program. Staff recommends amending section 5.72.130 Rental Housing Business License Renewal to add the following language:
Owners of well-maintained rental properties that have the following characteristics may apply to participate in the Self-Certification Program: no violations of the Hesperia Municipal Codes and/or California State Building, Housing and Health Safety Codes exist on the property at the time of the initial inspection; no outstanding citations, inspection or abatement fees, special assessment, and liens; and a current rental housing business license.
If the application qualifies, the owner shall pay an annual non-refundable self-certification fee and renewal fees which must be paid in full at the time of self-certification and conduct an annual self-inspection of each residential dwelling unit as discussed below.
If the City determines that a residential rental dwelling unit is not eligible to participate in the self-certification program, then the owner shall allow the City to conduct an inspection of their residential rental properties for compliance with all applicable codes and the City's housing and property maintenance standards and the owner shall be assessed the full annual inspection fees established by resolution of the City Council.
For qualifying participants, the owner shall self-certify to the City on an annual basis that all units on each property are maintained in good order, have met all the requirements of this code and any other applicable state or local codes, and shall include photographs of good quality showing the frontage of the property, all side yards, parking areas, common areas, and any other areas that would normally be inspected as part of the annual maintenance inspection program.
The owner shall certify that the conditions at the property achieve the minimum standards listed on the self-certification program checklist.
Nothing in the self-certification program shall be construed or interpreted as limiting the City’s authority to investigate and compel the abatement of any building, housing, and sanitation codes or ordinance violations.
Any property that participates in the self-certification program may be removed from the program at any time if that property fails to meet all of the interior and exterior standards designated on the self-certification program checklist or fails to meet building, housing and sanitation codes or ordinances as defined in this chapter. Upon removal from the program, the difference between the self-certification program fee and full annual program fee shall be due and payable.
The City will take appropriate measures to communicate any changes to the ordinance with affected residents.
Rental Housing Fee Assessment
Staff recommends keeping rental housing business license and inspection fees at the tier one rate, which is comprised of a $75 rental housing fee for single family residences and $50 per unit fee for multi-family residences in conjunction with business license and administrative costs as well as State SB1186 fees. Furthermore, as the program enters its second year, implementation of a self-certification fee is necessary as property owners who meet eligibility requirements can self-certify their properties without physical inspections by the City.
Proposed self-certification fees would fund code enforcement, business licensing and finance staff to monitor the self-certification process, which involves vetting the applicant for eligibility, processing business license renewals, invoicing, reviewing photos, self-certification checklists and affidavits, proactive drive-by exterior inspections, and conducting any necessary follow-ups and correspondence with the property owner by telephone, email, and/or mail. Proposed self-certification fees are $40 for single family residences, and $55 for the first two multi-family units and $10 for each additional unit thereafter. These fees will be charged in conjunction with business license renewal and administrative costs as well as State required SB1186 fees.
FISCAL IMPACT
Adoption of this resolution will allow the City to continue to collect fees that adequately recover costs based on services provided.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Ordinance 2022-08
Exhibit “A” – Title 5 – Business Licenses and Regulations Chapter 5.72 Rental Housing Business License and Inspection Program Resolution No. 2022-36
Exhibit “A” – City Fee Schedule – Self-Certification Fees (Clean Copy) Exhibit “B” – City Fee Schedule – Self-Certification Fees (Tracked Changes) City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Rental Housing Business License and Inspection Regulations and Fees June 7, 2022