RENTAL PROPERTY INSPECTION PROGRAM Stockton City Council December 14, 2004

Purpose To improve the conditions of the City’s rental housing stock To provide a safe and decent place to live and enhance the quality of life for residents To ensure all rental housing meets maintenance standards

Background California City Survey in 2001 Pasadena Quadrennial Inspection Program Tour Council Legislation/Environmental Committee City of Concord’s Multifamily Inspection Program Council Study Session

Case Study: CONCORD Case Study: CONCORD (2000 Census) Population: 121,780 45,083 housing units 16,478 rental units (37%) 10,680 units are inspected annually as part of the Multi-Family Inspection Program (65%) Properties must be in compliance with:  Municipal Code, California Model Building Code and Uniform Code for the Abatement of Dangerous Buildings  Additional standards specified for exterior and site maintenance

Case Study: CONCORD Self-Certification Program  Property must pass first inspection & submit the following: Application, Application fee, Self-Certification Affidavit, Completed Self-Certification checklist for the property  City inspects 20% of the property’s units for compliance  City approves or denies application Appeals & Fees  Notice of Violation and Denial of Self-Certification can be appealed  Fees established for: Annual inspection, reinspection, Self-Certification application

Case Study: STOCKTON Case Study: STOCKTON (2000 Census) Population: 243,771 80,801 Housing units 41,436 Rental units (51%) Above: peeled paint and mold growing in shower area.

Case Study: STOCKTON Left: Kitchen; TV on top of stove, flammables stacked against hot water heater Below: bathroom wall covering gone, mold growing

Estimated Housing Units to be Inspected Total Units in Stockton Owner Occupied Renter Occupied Units per Bldg # of Units % of own occ Total # of Units % of renter Total Single Family51,00836,72693%14,28234%1 Duplex5, %4,96012%2 Triplex2, %2,7977%3 Multi Family19, %19,01946% avg Condo1,5101,1333%3781%2 TOTAL80,80139,366100%41,436100% Exhibit A *numbers were rounded to the nearest whole unit.

Proposed Ordinance Summary Each rental unit is inspected every four years A Notice of Violation will be mailed to Property Owner within 10 days Properties not in compliance after reinspection will be processed with normal Code Enforcement remedies

Self-Certification Program Property Owner must submit the following:  Application, Application Fee, Completed Self- Certification checklist for all units, Affidavit stating all units are in compliance Program Audit by City  20% of the buildings in the program will be inspected annually (no charge) to ensure Self-Certification Program effectiveness Option A - may apply for the second cycle if the building passes the first inspection cycle; or Option B - may immediately apply

Self-Certification Program Option A During second inspection cycle, City will conduct inspection of 20% of the building’s total units Property Owner will be billed for one year of assessment fee (¼ of total) Property owners submit completed application with fee City will approve or deny application based on inspection If denied, property subject to 100% inspection, remainder of the assessment and penalty

Self-Certification Program Option B During first inspection cycle, City will inspect the building’s total units Property Owner will be billed for one year assessment fee (1/4 of total) Property owners submit completed application with fee City will approve or deny application based on inspection If denied, property subject to 100% inspection, remainder of the assessment and penalty

Exemptions and Exclusions Exemptions:  Newly constructed rentals are exempt from Rental Property Inspection Program for 5 years from Certificate of Occupancy  Federally funded or subsidized rental units are exempt Exclusions:  Properties with existing violations at time of application are excluded from Self-Certification Program  If violations are found during the 3-year exemption period, property is excluded from participating in the Self-Certification Program

Estimated Time for Inspection # of units Code Enf Officer (hours) Clerical Support (hours) TOTAL HOURS Condo Multi family unit 3.31 (average) Exhibit B

Reinspections & Appeals 60% of inspections are estimated to require reinspections during the first cycle 10% of those are estimated to appeal

Estimated Staff Needed Exhibit C InspectorsClerical 25,580Total hours14,492 15,348Reinspection hours8,695 1,739Hearing hours1,739 42,667Total Hours24,926 /4Divided by 4 years/4 10,667Hours per year6,232 /1,888Divided by productive hours/1,888 6TOTAL STAFF NEED (Rounded)3 Classifications: 1 Senior Code Enforcement Officer 1 Administrative Analyst I 5 Code Enforcement Officers2 Office Assistant II

Cost for Rental Inspection Program Salary & Benefits: $ 771,851 Overhead: $ 694,668 Office Equipment: $ 76,554 Annual staff cost of program: $1,543,073 4-year staff cost of program: $ 6,407,624* Less reinspection revenue: - 642,916* Less hearing revenue: - 65,466* Plus hearing officer pay: + 24,068 ASSESSMENT NEED$ 5,723,310 * Includes 2.5% annual COLA Exhibit D

Fee Schedule Comparison Option AOption B % units inspected100% 4-year Inspection Fee$175+ $100/unit Reinspection Fee$54.40/unit Appeal Fee$54.40 Self Certification Year Eligible51 % Units inspected20%100% Application fee 1-3 units$ units$190 Fee if Denied$175 + $100/unit Penalty for denial or violation while exempt $175 + $100/unit Appeal Fee$54.40 Exhibit E

Fee Examples 3 unitsFour-Year CostPer Unit Per Month Inspection Program$375.00$2.60 Self Certification Program$208.75$ units Inspection Program$5,075.00$2.11 Self-Certification Program$1,458.75$ units Inspection Program$10,075.00$2.10 Self-Certification Program$2,708.75$ units Inspection Program$50,075.00$2.09 Self-Certification Program$12,708.75$0.53

Next Steps Administrative Analyst is hired to develop program Fees will be adopted in May with 2005/06 City Fee Schedule Self-Certification applications and program information is distributed to property owners (Option B Self-Certification Prgm) New staff is hired and trained (approx. 6-8 months) Inspections begin January 2006

Rental Property Inspection Program Questions?