SINGLE-FAMILY RENTAL HOUSING INSPECTIONS – MEETING CITY COUNCIL GOALS

QUESTIONS AND ANSWERS

 1.  Why is this program needed? 

Currently single-family rental housing demands a significantly higher level of code enforcement than owner-occupied housing does.  Many rental homes are well maintained, but enough have excessive violations to mandate this focused effort.  Our initial estimates show that about 15% of the single-family homes in Carrollton are renter-occupied, yet they account for about 30% of the total code violations in the city. 

Not only is this a disproportionate amount of code violations from such a small segment of the community, it is also an indication that rental housing can be one source of blight and lowered values for other homes in the neighborhood.  The intent of this program is to provide safe and decent housing conditions for those residents living in rental housing, and to hold landlords accountable for keeping their property in a code compliant condition, thereby sustaining – rather than diminishing – the value of the neighborhood.

2.     2.  How will the community benefit?

Anticipated results include safer and healthier living conditions for Carrollton residents, neighborhoods decreasingly prone to crime, property values maintained and improved, and enhanced vitality and attractiveness of the community.

3.     3.  What are the key provisions in the proposed ordinance?

The proposed ordinance requires that all single-family rental homes be registered with the city and that registrations are periodically renewed.  Property inspections are also authorized. 

4.     4.  How quickly will properties be brought into compliance?

The entire first round of inspections will be primarily educational.  Landlords will be asked to meet minimum property standards in a timely fashion, but major repairs will be placed on more gradual schedules commensurate with the amount of work needed.  In subsequent years standard compliance protocols apply, with allowances generally up to sixty days for repairs. 

5.     5.  Isn’t this really about revenues and writing more citations?

No fees are proposed with initial program.  As it becomes more established in successive years we may consider whether minimal fees are appropriate to recover direct costs of this effort.  Citations will generally not be issued for routine infractions in the first year of the program; the exception being uncorrected violations for which citations are currently issued under existing code enforcement efforts.

6.      6.  What precedent is there for this program? 

We are building on the already successful efforts in proactive code compliance inspections and following a track similar to that used in the nine-year-old multi-family housing inspection program.  Until now, inspections at rental homes have only been conducted in response to citizen requests, but these have identified problems significant enough to warrant the program.  This program is similar to many others across the nation and the code provisions have been tested through federal courts.

7.    7.  What authority does the city have to inspect rental houses?

Inspections are already fully authorized under the Uniform Housing Code, most recently adopted by the city in 1999.  This establishes minimum standards for healthy, safe and sanitary housing.  In addition to this code, an enabling ordinance requiring registration and covering inspections is being considered by the City Council.  Amendments to the Housing Code will be considered in later phases of the program.

8.      8.  What makes this the right time to start a rental housing inspection program?

As our neighborhood integrity efforts have matured, this is the next logical step to ensure community sustainability.  It builds on the already successful efforts in proactive code compliance inspections and follows a track similar to that used in the nine-year-old multi-family housing inspection program.  Until now, inspections at rental homes have only been conducted in response to citizen requests, but these have identified problems significant enough to warrant the program.

9    9.  What procedure will inspections follow?  What about concerns that this inspection will be a burden to tenants?

The routine inspection takes only 10-15 minutes at most homes and covers basic minimum standards using the Uniform Housing Code.  The main focus is on safe plumbing and electricity, smoke detectors, weatherproofing, and sanitary conditions.  The city has been successfully making the same inspections at apartments for nine years.  Certified Code Enforcement Officers are trained to conduct these with the least intrusion possible.  We intend to offer appointment times that will be convenient for everyone, including some evening and weekend hours.  The owner, resident or other authorized person would need to be available to accompany the inspector while he/she is on the property.

We expect some tenants or landlords may decline this routine inspection and they have the same right as anyone, of course, to do so.  However, if the inspector has adequate reason to believe a code violation exists on the property, an inspection warrant may be requested through the municipal court judge.  If the judge then finds that there is probable cause, the inspection would proceed. 

      10.  How will this affect realtors and landlords?

Improved property values should make their businesses more profitable.  Better maintenance in neighborhoods should also help lower the amount of time houses remain on the market.   Landlords that reinvest in their properties by maintaining them well should benefit by a leveling of the playing field as other owners that have profited by not maintaining houses become accountable for meeting minimum standards. 

      11.  What about properties that are already well-maintained?

Without question many of our rental landlords maintain their properties at or above minimum code standards.  For those individuals this program should be neither a burden nor a threat.  As an incentive, reduced inspection frequency will be available for properties that are maintained in compliance with minimum housing standards.  However, for those that have chosen to use Carrollton's neighborhoods as a place to own rental property without regard to its effect on the investment others have made in our community, this program is directly intended to make them responsible for their actions. 

The initial benchmark educational inspections will help staff further assess the scope of the rental housing issues.  Based on these, future inspection frequency will be established.  Ultimately our goal would be to inspect houses with chronic or critical violations annually; well-maintained houses would be inspected every third to fourth year.

     12.  What about violations at owner-occupied homes?

The same codes that set standards for rental homes apply to owner-occupied houses.  In keeping with gradual program implementation, enforcing these codes at owner-occupied homes in the near-term will be primarily based on citizen requests.  Because our resources are limited, we are applying them first where we believe they will best support our sustainability objectives.  As noted above, single-family rental houses statistically pose a greater burden on the integrity of our neighborhoods.  By implementing this program as a new initiative, resources currently used to address rental concerns will be channeled into issues with owner-occupied properties. 

      13.  What about fees in successive years?

        Currently no fees are being proposed with this new program.  Several of the cities surveyed have maintained their programs for many years without fees.  Minimal fees could be proposed in the future to recover some of the direct costs of this effort.  Even where fees have been established in other program areas, such as food safety permits, industrial pretreatment and multi-family inspections, they fall far short of covering the actual costs associated with running each program.  For example, the city recovers approximately 60% of the costs associated with the industrial pretreatment program through fees.  None of these programs has become a net revenue generator for the city.

1    14.  What about conflict with Fourth Amendment Rights or constitutional issues? 

        The City Attorney has reviewed the proposed ordinance and maintains that it is valid and constitutional as written.  These issues were the subject of a recent lawsuit in federal court against the city of Garland. The suit was essentially dismissed with Garland making minor modifications to part of their ordinance.  While the proposed Carrollton ordinance is significantly less stringent and did not contain parallel provisions, slight revisions have been made to ensure full conformity with the court’s opinion.

      15.  How does the proposed inspection differ from a Section 8 housing inspection?

        The proposed ordinance requires property owners to register rental homes with the city within thirty days of acquiring ownership.  Occupancy is not dependent on city inspection or registration.  This contrasts with the federal Housing and Urban Development Section 8 inspection, where passing inspection is required before release to occupy the house.  The minimum housing inspection can occur in a vacant or occupied rental home.  The main focus of the inspection is safe plumbing and electricity, smoke detectors, weatherproofing, and sanitary conditions.  It is not intended to be extremely detailed or time-consuming.

16.  Would implementation of this program be an invasion of owner or occupant privacy?

        The minimum housing inspection would include a general walk-through of the home emphasizing only basic health and safety items.  This routine inspection should take only 15 minutes in most homes and would be done with the least intrusion possible and with the owner, resident or other representative present.  In the past nine years of multi-family inspections, including well over 2,000 interior inspections, the City has not received any complaints that inspections were intrusive or unprofessional.  Very few residents have declined access to city inspectors.

1    17.  Will my older home have to be brought up to current construction codes?

        Owners will be responsible to maintain property in accordance with the construction codes the house was built under and not the most recently adopted construction codes.  For example, a house built in 1990 needing minor wiring repairs would not be required to conform to the 2003 International Electric Code.

1    18.  What information is there to show that similar programs are effective?

        Staff surveyed 17 cities with various rental housing inspection programs.  While many of these are relatively new and have not compiled long-term results, they were unanimous in stating they have seen clear reductions in numbers and severity of violations.  None reported intent or need to discontinue their rental inspection efforts.  Some twenty years’ of Farmers Branch data reflect that while rental housing is 50% more likely to have premise violations, through their inspection program rental housing had been brought up to the structural standards of owner-occupied housing.  Milwaukee studied rental programs around the country and concluded that “housing stock improved and vacancy rates fell, although these factors were difficult to isolate from greater housing market trends.”  Carrollton will be in a similar situation, where land values generally continue to increase and effects on property values will not be easily separated from other factors.

19.  Why is a proactive program needed?  Why not limit this to complaint response only?

        Putting up with indecent housing conditions gives the message to the community that blighted conditions are acceptable until someone complains or moves out.  Furthermore, staff has received many reports of tenants being intimidated by landlords into not reporting hazards and defects in their homes.  A proactive program would send the message that blighted conditions are not acceptable in Carrollton while also providing a means for tenants’ concerns to be addressed apart from complaints.

      20.  Where should I go for more information?

        The Environmental Services Department, on the web at www.cityofcarrollton.com , in City Hall at 1945 East Jackson Road, or you may contact us by e-mail at rentalhousing@cityofcarrollton.com or at 972.466.5727. 

1