DATE: JANUARY 18, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: HOLLY HODGE, AMERICORPS VISTA
THROUGH: ROD POWELL, PLANNING MANAGER
TITLE: PROPOSED MODEL FOR A RENTAL REGISTRATION PROGRAM RECOMMENDED MOTION:
A motion recommending that City staff proceed with development of an Ordinance and corresponding fee Resolution to establish a Rental Registration Program based upon consensus of the Housing Policy Technical Advisory Committee (TAC).
RECOMMENDATION:
It is requested that the City Council consider the proposed Rental Registration Program model developed through the TAC as outlined in this staff report. Based upon City Council direction, staff would then prepare an Ordinance and corresponding fee Resolution for Council consideration.
EXECUTIVE SUMMARY:
The City has adopted the Salinas Plan and the Alisal Vibrancy Plan which both call for a Rental Registration and Inspection Program. Rental registration programs are used by jurisdictions as a tool to promote community health and safety by identifying rental units and ensuring that up to date contact information is available for police, fire, and code enforcement in the event of an emergency or to address code violations. This information is also vital in helping cities assess rental housing stock, develop and implement Housing Elements, and provide more robust housing services, such as mediation assistance and locally relevant information regarding available resources and legislative updates.
Since 2018, there have been 12 meetings with community stakeholders to discuss and solicit feedback on potential program models, mandates, service components, and funding sources. Based upon these discussions and in particular guidance from the Housing Policy Technical Advisory Committee (TAC), a proposed program model has been developed focused only on Rental Registration. It was recommended that the inspection component be tabled to minimize potential displacement until safeguards are put into place. A Rental Registration Program coupled with support from code enforcement may be sufficient to address the most egregious violations with minimal risk of displacement. The proposed Rental Registration Program is also designed to incorporate additional landlord and tenant benefits at a sustainable, nominal cost.
BACKGROUND:
The concept and need for the suggested City administered Rental Registration Program was initially proposed in the Salinas Plan (2018) as a Rental Registration and Inspection Program (Item NR05) with the expressed goal of helping to improve the quality of the city’s rental stock and to provide a new source of revenue for Code Enforcement staff. The National Resource Network, the authors of the Salinas Plan, were hired to create an initial program design and following the completion of their work, in August 2019, held a community meeting to solicit feedback on the proposed program. At this meeting, concerns were expressed that the inspection portion of the program could lead to undesired displacement or evictions of tenants. In consideration of stakeholder feedback, late Mayor Gunter established the Housing Policy Technical Advisory Committee (TAC) to further solidify a viable program design.
Discussions with the TAC commenced and progressed from December 2019 through March 2020. Unfortunately, the start of the COVID-19 pandemic initially caused the work to halt. Concurrent to these initial TAC discussions, in February 2020, the Alisal Vibrancy Plan (AVP) was adopted and also called for the establishment of a Rental Registration and Inspection Program (Items HN 2.2a, 3.1a). Subsequently, TAC discussions on a Rental Registration Program resumed in April 2021 and continued through to December 2021. This involved an additional five meetings with the TAC and two meetings with stakeholders that were actively involved in the development of the AVP to ensure full representation and participation of community stakeholders in shaping the design of the program. The mix of feedback provided throughout the TAC 2021 meetings have provided vital feedback and perspective to staff in the development of the current program proposal.
DISCUSSION:
Rental Registration Programs are often implemented as an efficient tool to promote community health and safety by identifying rental units and ensuring that up to date contact information is available for police, fire, and code enforcement in the event of an emergency or to address code violations. This information is also vital in helping cities assess rental housing stock, develop and implement Housing Elements, and provide more robust housing services, such as mediation assistance and locally relevant information regarding available resources and legislative updates. It has become an emerging common practice for jurisdictions in California and throughout the United States to enact such programs under varying designs and in consideration of the unique needs and desires of their community. Depending on the jurisdiction, the program design often varies in regard to the type of data collected, required fees, and general scope of services provided.
TAC and AVP stakeholders have provided varying opinions throughout discussions of the Rental Registration Program essentially aligning with one of the following options: (1) no program whatsoever – either Rental Registration or Inspection, (2) support for the implementation of a full-service Rental Registration and Inspection Program as recommended by the previously approved Salinas Plan and AVP; and (3) support for a more limited Rental Registration Program only. Ultimately, the TAC achieved consensus around Option 3, a Rental Registration Program as outlined in this report. Given the strong opinions on all sides of this issue and the fact that the TAC, which is comprised of both landlords and tenant advocates was able to achieve a consensus on Option 3, City staff is recommending that an Ordinance and corresponding fee Resolution for a Rental Registration Program be drafted based upon the guidance outlined below.
Proposed Rental Registration Program Design (Option 3)
The program will be run out of Community Development Department’s Housing Division with support from the Code Enforcement Division. All fees associated with this program will only be used to run the program itself and will not go into the General Fund.
Types of Units That Register:
All rental properties - This will include single family residences, multi-family and Accessory Dwelling Units. Rental units that are vacant at the time of registration but are on the market will also need to be registered.
Information Collected:
Accessor Parcel Number
Address
Number of units
Affordable housing status (deed restricted affordable housing or not) Contact information - Property owner and manager
Optional/voluntary: Rate of rent and occupancy status
Landlord and Tenant Benefits:
Landlord and property management contact information for emergencies Tenant and landlord education on rights, responsibilities, and resources Proactive distribution of local information and resources Dedicated City staff to
Provide landlord navigation within the City
Connect tenants with resources throughout Salinas
Mediation services
Online portal where residents can check if a rental property is registered with the City Online portal that can potentially be expanded to simplify business licensing and required fire inspections Budget:
Description
Proposed Budget
Code Enforcement Manager (0.05 FTE)*
$8,962.00
Planning Manager – Housing (0.05 FTE)
$9,621.50
Community Development Analyst – Housing (1.0 FTE)*
$ 142,120.00
Administrative Aide – Housing (0.5 FTE)
$23,500.00
Administrative Aide – Housing (0.5 FTE)
$23,500.00
Software & Software Admin
$50,000.00
Mediation Support
$90,000.00
Landlord and Tenant Education
$100,000.00
Total
$ 447,703.50
If collected revenue is less than estimated, the City will seek funding for landlord and tenant education and mediation services from another funding source.
Fees:
Based upon the proposed services and budget and estimated number of rental units, the sliding scale below is recommended:
Number of Units on a Parcel
Registration Fee
1 $20.00
2-4
$35.00
5-9
$60.00
10-24
$75.00
25-49
$120.00
50-99
$225.00
100+
$350.00
Failure to Register Fee – Registration Fee due + 10% per month after the registration period
These fees may be slightly modified when brought to City Council for consideration as the budget is refined, but the goal is to keep fees low to encourage compliance.
Implementation timeline:
City Council Consideration of Ordinance and Fee Resolution – March 2022 First Program Year – 2022
Registration Period: July 1, 2022 – September 30, 2022
Failure to Register Fee incurred if not registered by September 30, 2022 Future Program Years – 2023 +
Registration Period: July 1st – July 31st
Failure to Register Fee incurred if not registered by July 31st CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.
STRATEGIC PLAN INITIATIVE:
This Program will help advance the following City Council strategic goals: 1) Investment Strategies/Risk Management, 2) Operational Efficiencies, and 3) Public Safety by promoting community health and safety through the identification of rental units including up to date contact information that is available for police, fire, and code enforcement in the event of an emergency or to address code violations. This program also provides funding to better regulate rental housing, protect tenants, and support landlords to help preserve critical rental housing.
DEPARTMENTAL COORDINATION:
The program will be run out of the Community Development Department’s Housing Division. However, Code Enforcement and the Fire Prevention will be able to use the Rental Registration data to contact property owners and managers in the case of violations or emergencies. In addition, Code Enforcement will assist in identifying rental units that fail to register. CDD will work closely with the Legal Department to draft the Ordinance and Fee Resolution and with the Finance Department and IT Division to establish an online portal.
FISCAL AND SUSTAINABILITY IMPACT:
In last year’s budget, a CIP of $50,000 was appropriated for the initial startup costs for the Rental Registration Program. Once implemented, it is estimated the program will generate approximately $447,000 toward program costs. Based on City Council direction, staff will return with an appropriation request and if necessary, adjustment to CDD’s workforce allocation. Since staff is only seeking direction at this time, there is no fiscal impact.
ATTACHMENTS:
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