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Code Enforcement Alternatives - Study Session December 2007ADMINISTRATIVE SERVICES MEMORANDUM May 20, 2009 TO: City Council FROM: Jacob J. Winzenz, Director of Admin. Services/Asst. City Manager SUBJECT: Study Session – Housing and Nuisance Code Enforcement On December 12, 2007, the City Council conducted a study session on alternatives to enhance the enforcement of housing and nuisance codes in the City of Janesville. Since several current Councilmembers were not on the City Council at that time, I thought it would be helpful to redistribute that report, in addition to the materials prepared by Gale Price. On March 24, 2008, the City Council approved several changes recommended in this report including the re-inspection fee for nuisance violations, summary nuisance abatement; and adding housing code, nuisance, junk vehicle, and residential nuisance related zoning violations to the list of offenses included in the Chronic Nuisance Premises ordinance. Attach. ADMINISTRATIVE SERVICES MEMORANDUM December 4, 2007 TO: Steven E. Sheiffer, City Manager FROM: Jay Winzenz, Assistant Director of Administrative Services SUBJECT: Alternatives to Improve Housing and Nuisance Code Enforcement Executive Summary Councilmember’s Truman and DeGarmo requested that the administration prepare a report on the feasibility of licensing or registering rental property owners, including the periodic interior inspection of licensed premises, and/or enhancing the code enforcement process in the City of Janesville. To gain additional insight into their respective code enforcement and inspection programs staff contacted fifteen (15) of our peer cities. This report presents four (4) options for the City Council to consider that would enhance code enforcement in the City of Janesville. Staff recommends that the current ordinances be amended to allow nuisance abatement, charge a re-inspection fee; and add housing and nuisance violations to the Chronic Nuisance Premises ordinance. Additionally, staff recommends that Janesville require the registration of rental properties, including a requirement that a local agent be appointed. Background The City of Janesville has approximately 24,000 parcels including approximately 9,900 rental dwelling units. As the City continues to age and grow, the task of enforcing housing and nuisance codes becomes critical to prevent a downward spiral of our neighborhoods. In calendar year 2000, the City Council began a series of Neighborhood Listening sessions. One of the common themes of these sessions was concern over the timeliness of the code enforcement process and the ability to get code issues resolved. There was particular concern with nuisance issues such as junk cars, and trash and debris. As a result of these concerns the Administration undertook a comprehensive review of code enforcement. In August, 2000, the City Administration completed the comprehensive review of code enforcement in the City of Janesville and submitted a report to the City Council. That report made several recommendations including: ? Increase proactive enforcement ? Issue citation and abatement authority 2 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc ? Implement ordinance changes and/or amendments; and ? Increase staffing Over the last seven (7) years all of these recommendations have been implemented. The increasing demand for the services of our code enforcement staff is illustrated in the following graph: 10-Year History of Complaints 1400 1200 1000 734 1047 893 881 738 777 800 639 Nuisance 524 600 566 447 Housing 400 476 375 364 353344 342 303 275 200 248 230 0 1997199819992000200120022003200420052006 Year The preceding graph illustrates several noteworthy points related to housing and nuisance complaints: ? The number of housing complaints has remained relatively constant from 1997 through 2006. The average number of housing complaints during this period was 331 complaint per year with a high of 476 complaints and a low of 230 complaints ? Nuisance complaints have showed a steady increase with an average of 725 complaints received each year. The total increase in the number of complaint from 1996 to 2006 was 600 complaints, or 134%. This represents and average annual increase of approximately 9.9% Survey of Comparable Cities In preparing this report staff surveyed fifteen (15) comparable cities to determine how they enforce housing and nuisance complaints. Most code enforcement processes are not that dissimilar to Janesville, but several had some unique approaches. Some of the more interesting findings include: ? Only two (2) cities license property owners 3 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc ? Only two (2) cities conduct systematic interior property inspections of all rental properties. One (1) city conducts interior inspections of rental properties in a “core” area. ? Most cities conduct targeted exterior property inspections. Only three (3) cities complete city-wide exterior inspections annually. ? Most cities (10 of 15 surveyed) have a procedure to abate exterior nuisances without going through the court system. ? Nearly half of those surveyed had some ordinance to get at the problem of chronic offenders. Several communities have added violations of their housing and nuisance codes to the list of offenses that qualify a property for consideration as a “Chronic Nuisance Premises”. Beloit’s Rental Permit/Inspection Program Beloit requires both an annual permit for rental properties and conducts interior property inspections. Beloit has approximately 5,700 rental units and inspects each unit at least once every three (3) years. In addition, they inspect the exterior of all properties annually and respond to citizen complaints. Beloit employs five (5) full-time code inspectors, plus two (2) inspectors that are shared with the Fire Department and the Housing Authority. The inspector that is shared with the Fire Department is responsible for inspecting rental properties with three (3) or more dwelling units. These are considered commercial properties and a fire inspection must be completed in the common areas annually. At the time of the fire inspection, the inspector also completes an interior inspection of the dwelling units as part of their rental inspection program. There are approximately 2,400 rental units in this category. The inspector that is shared with the Housing Authority completes interior inspections of units with tenants receiving rental assistance (approximately 550 units). The remainder of the interior inspections (2,770 units) are completed by the five (5) code inspectors. Beloit charges an annual rental permit fee of $25 per dwelling unit. With approximately 5,700 rental dwelling units in the City of Beloit, this fee generates annual revenue of approximately $142,500. Current Enforcement Process Enforcement of housing and nuisance codes in Janesville is primarily by complaint. After a complaint is received a Property Maintenance Specialist conducts an inspection to determine if a violation exists. If there is a violation they attempt to make verbal contact with the property owner. If they are unsuccessful in making verbal contact or obtaining compliance, then either a 14-day or 30-day Order to Correct is mailed. Most of the time the formal enforcement process ends at this step. A time extension may be given if the property owner is making a good faith effort to comply. 4 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc In rare situations compliance is not obtained and a Director’s Warning is sent which gives an additional seven (7) days for compliance. Time extensions are sometimes given at this stage in order to achieve voluntary compliance. The final step in the enforcement process is the issuance of a citation or a referral to the City Attorney’s Office. This only occurs in rare cases where all efforts to achieve voluntary compliance have been unsuccessful. In 2006, 53% of the housing complaints and 62% of the nuisance complaints were closed in 30-days or less. For this same period, 74% of the housing complaints and 84% of the nuisance complaints were resolved within 60 days or less. There are isolated cases that take an extreme amount of time to resolve, but these are unusual. Proactive enforcement of nuisance ordinances began in 2005 with a sweep of the Historic Fourth Ward neighborhood by the Janesville Police Department. In 2006, the Neighborhood Services Department began proactive enforcement of exterior code violations with the Community Development Block Grant (CDBG) program “Target” area. In that same year, the Neighborhood Services Department and the Janesville Police Department participated in a cooperative enforcement effort in the Historic Fourth Ward and Look West neighborhoods. These proactive efforts continued in 2007. Assumptions 1. Current City staff are fully engaged and additional workload will require additional staffing. 2. Levy limits will continue and thus additional expenditures will either require service reductions elsewhere or corresponding revenues to offset expenses. Alternatives Staff has identified four (4) alternatives for the City Council to consider in determining how best to address over concerns about property maintenance in Janesville. These options are not mutually exclusive – that is, any, all, or none of these options could be implemented. 1. Enhance Current Ordinances - Staff has not undertaken a comprehensive review of the housing and nuisance ordinances, but below are some ideas taken from experience and the survey of comparable communities: a) Nuisance Abatement – The authority to enter upon private property and remediate exterior nuisance violations is referred to as “nuisance abatement”. Our current Ordinance seems to permit this, but after reviewing the language the City Attorney is not comfortable that it allows nuisance abatement. 5 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc Pros Cons ?? May reduce time for May be perceived as City compliance since if property being “heavy-handed”. ? owner does not comply City City may incur costs to will remediate nuisance. remediate nuisances that we ? Only penalizes those who do are unable to recover. not comply with orders in a timely manner. b) Re-inspection Fee – The City of Janesville currently charges a re-inspection fee for building inspections when an inspection is requested and the work is not ready for inspection, or when all the previously identified deficiencies have not been corrected. A re-inspection fee could be charged for housing and/or nuisance inspections when the work is not completed within the prescribed timeframe. For example, if we give a 14-day order on trash and debris and the violation is not corrected when we re-inspect, then we would assess a re- inspection fee. The re-inspection fee could be assessed each and every time we re-inspect and the property is not in compliance with our Order. Pros Cons ?? May increase incentive for Could be challenged if fee compliance in a timely exceeded our costs of manner. enforcement. ?? Additional revenue to offset May penalize property owners the costs associated with for the action, or inaction, of enforcement. their tenants. ? Only penalizes those who do not comply with orders in a timely manner. c) Reduce Timeframes for Compliance – The timeframes for compliance previously described could be shortened. For example, the compliance period for junk cars and trash and debris could be reduced from 14-days to 7- days. Housing violations could be reduced from 30-days to 14-days. Pros Cons ?? May decrease the amount of Timeframes need to be time for compliance. realistic or may be perceived as unreasonable. d) Chronic Nuisance Premises Ordinance – The City of Janesville has a Ordinance which regulates “Chronic Nuisance Properties”. This Ordinance 6 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc contains a listing of acts that are considered “Nuisance Activities” and would subject the property owner to the remedies including: ? A meeting with the Chief of Police and the preparation of an abatement plan. ? The assessment of costs for additional City responses and enforcement against the property. ? Fines of $100 to $1,000 for the first offense. ? Fines of $200 to $5,000 for subsequent offenses. At the present time the acts that are considered “Nuisance Activities” do not include violations of the housing or nuisance codes of the City of Janesville. Pros Cons ?? Requires a meeting and Additional staff time to monitor abatement plan for problem enforcement actions, notify properties and provides property owners, and meet significant sanctions for with them. failures to comply. ? May force property owners to proactively maintain their properties to avoid the meeting and abatement plan. ? Only penalizes the problem property owners. 2. Licensing or Registration of Rental Property - The licensing or registration of rental property is often discussed synonymously with systematic interior inspection of rental properties. For this report they are being presented as distinct alternatives because they accomplish different purposes. The registration or licensing of rental property usually requires that the owner of the property provide certain information to the municipality including, but not limited to: ? The address of the rental property. ? The name, address, and telephone number of the owner of the property. ? The name, address and telephone number of a local agent, if the property owner does live within a defined area of the city (in Beloit the agent or property owner must live within the postal zip code for Beloit; in La Crosse the owner or agent must live within 25 miles of the city limits). ? Some jurisdictions also require the property owner to provide and maintain with the city a current listing of tenants, including telephone numbers. 7 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc The primary advantage of a rental property registration program is to reduce the amount of time it takes to identify and send notices to the owner or responsible agent for a rental property. In about 10% of the cases staff has difficulty notifying the property owner. Approximately 8.4% of the rental properties in Janesville are owned by out of state residents, and 21.9% of the owners do not reside in the City of Janesville. Requiring the registration of rental property and requiring a local agent for property owners who do not live in Janesville would decrease the time for staff to serve orders on the property owner and thus speed up the compliance process. There are approximately 3,750 rental properties in Janesville. Licensing or registering rental property owners would require additional staff to maintain the database of owners and process the annual registrations. It is estimated this would require an additional 1.0 FTE Customer Service Representative ($48,200) and other costs ($2,500) for a total cost of $50,700. To recover these costs a registration or licensing fee of $15.00 per parcel would be necessary. Pros Cons ?? May reduce compliance times May be perceived as penalizing through quicker notification of the many for the actions of a responsible party. few. ?? May reduce staff time and Increase in staff time and costs costs for processing each to process registrations and complaint. maintain database. 3. Exterior Property Inspections (non-complaint) - The most obvious and visible signs of decay in a neighborhood are the exterior nuisance violations. Things such as trash, junk cars, dilapidated buildings, etc. give an indication that the occupants or owners of that property do not care. This can be contagious. Keeping your property in a deteriorated state them becomes the norm in that neighborhood and it can become very difficult to reverse the trend. The current program of targeted non-complaint exterior inspections could be enhanced in two (2) ways. First, rather than being targeted, exterior inspections could be conducted once per year citywide. This would require the addition of 2 FTE Property Maintenance Specialist. A second alternative would be to increase the frequency of the targeted inspections to twice per year. This would require the addition of .5 FTE Property Maintenance Specialist. The following table summarizes the estimated costs for these two (2) programs: Staff Vehicles Other Total City-wide Ext. Inspect. $ 116,000 $ 8,000 $ 3,000 $ 127,000 Targeted Inspect. 2X/Yr. 29,000 0 500 29,500 8 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc Pros Cons ?? Addresses most obvious Requires additional staffing and signs of neighborhood decay. associated costs. 4. Interior Property Inspections – Interior property inspections go beyond the exterior signs of neighborhood decay and attempt to improve or maintain the quality of the rental housing stock. Staff estimates that Janesville has approximately 9,900 rental units. Such a program is significantly more time consuming than our current complaint-based program. The two (2) peer cities that require interior inspections of rental properties (Beloit and La Crosse) do so with different frequencies. Beloit requires an interior inspection every three (3) years, whereas La Crosse is once every five (5) years. In order to provide interior inspection of all rental properties once every five (5) years, an additional 2 FTE’s Property Maintenance Specialist would be required. If the inspection frequency was increased to once every three (3) years, 3.5 FTE’s Property Maintenance Specialist would need to be added. The following table summarizes the estimated costs of each schedule: Staff Vehicles Other Total Interior once/5 years $ 116,000 $ 8,000 $ 3,000 $ 127,000 Interior once/3 years 203,000 8,000 4,000 $ 215,000 If a rental permit fee were established to cover the costs of these inspections programs, that fee would need to be approximately $15.00/rental unit for inspections once every five (5) years, and $25.00/rental unit for inspections once every three (3) years. Pros Cons ?? Improve the quality of the May be viewed as punishing all rental housing stock. property owners for the acts of a ? few. Insure that, on a periodic ? basis, all rental dwelling units Would require significant meet the minimum property additional costs for staffing. ? maintenance code. May cause some rental property owners to discontinue investment in Janesville. ? May increase rents. A less expensive alternative would be to complete interior inspections of rental properties on change of ownership. Staff estimates that 315 rental properties 9 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc change ownership, or ownership is transferred from one entity to another annually. This would be less burdensome on staff resources, and would, over time, allow our inspectors into most rental properties for an interior inspection. This would require the addition of .5 FTE Property Maintenance Specialist at an annual cost of $29,000. Pros Cons ?? Allows for interior inspections May take a very long time to get of rental properties over time. into all rental properties, if ever. ? Less burdensome of staff resources and property owners. Conclusions and Recommendations Many options exist to enhance the level of code enforcement in the City of Janesville ranging from amendments to our existing ordinance to interior inspection of rental properties on a periodic basis. Costs for each of these various options range from nothing to $215,000 annually. Staff believes the current complaint-based system of enforcement with targeted exterior inspections works well. However, additional tools would be beneficial in reducing the amount of time it takes to resolve to complaints and address repeat offenders. Staff recommends the following alternatives be implemented: 1. Enhance Current Ordinances a. Nuisance Abatement b. Re-inspection Fee c. Chronic Nuisance Premises Ordinance – apply to housing and nuisance violations. 2. Licensing or Registration of Rental Property – including the appointment of a local agent. With these changes the amount of time it takes to make contact with property owners will be reduced and staff will have the ability to abate exterior nuisances. These changes will decrease the amount of time it takes to resolve complaints. Including housing and nuisance violations in the list of offenses in the Chronic Nuisance Premises ordinance will give staff an additional tool in dealing with repeat offenders. Staff believes these changes represent a cost-effective approach to improving code enforcement in the City of Janesville. 10 \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Code Enforcement Alternatives - December 2007.doc