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221 ORDINANCE NO. 221 r AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE NON-OWNER OCCUPIED/RENTAL PROPERTY PROGRAM. WHEREAS, the City Council at their 2005 City-Wide Prioritization Workshop rated a Rental Housing Ordinance as one of their top 10 priorities for staff in FY 2005/06; and WHEREAS, the goal of this program is expected to help our City clean up sub-standard rental stock, improve the quality of life in our neighborhoods, and maintain and or increase the economic value of single-family homes and other rental residences; and WHEREAS, staff has had several meetings with industry,officials, business organizations, the general public and property owners to take their input with the desire to balance the implementation of an ordinance that would create an incentive to maintain rental property to an acceptable standard while not unduly penalizing property owners who have always care to maintain their properties; and WHEREAS, the City Council held a properly noticed public hearing on December 8, 2005 ; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The Non-Owner Occupied/Rental Properties Inspection program set out in full in this Ordinance is hereby approved and adopted by the City Council. Purpose. The purpose of this ordinance is to identify substandard non-owner occupied/rental property stock and to ensure rehabilitation or elimination of non-owner occupied/rental properties that do not meet minimum building and housing code standards, exterior maintenance standards or are not safe to occupy. The City of Grand Terrace does hereby declare that there are approximately 327 non- owner occupied/residential housing units and 1009 multi-family non-owner occupied/rental properties— not including mobile homes, assisted living facilities, and convalescent care facilities—within the City. It is the intention of the City Council to establish a program whereby the exteriors of non-owner occupied/rental housing units can be inspected on a regular basis and certified as meeting minimum standards. The City endeavors to target its efforts to properties where violations exist and are a habitual condition of the property without unduly burdening responsible and prudent property owners. Definitions. For purposes of this chapter, the following terms, phrases and words shall have the meanings given herein. Unless otherwise expressly stated, words not defined herein shall be given their common and ordinary meaning. Apartment House—means any dwelling, which is designed, built, rented, leased, let or hired out for occupation, or which is occupied as the home residence of three or more families living independently of each other in dwelling units. Applicable Codes and Standards - means those minimum standards governing residential rental property as contained in the State Housing,Building Fire and Civil Codes. Approved— means performed in a manner and/or materials consistent with the California Building Code in effect at_the time of construction or substantial renovation unless otherwise provided. Basement- means a story having clear a clear height of at least seven feet from finished floor to finished ceiling, the floor level of which is below finished grade but not less than four feot below the average finished grade, having floor and walls of approved construction. Code Enforcement—City personnel responsible for enforcement of applicable building codes and standards Habitually Substandard—rental property with code or standards violations that persist for 6-months or more after notice of violation has been given and where there has been no attempt to abate the problem. Inspection Fee—a fee set by the City to cover the cost of administering this program Landscape - areas defined as the general landscape area, rights-of-way and detention or pond areas. Maintenance Standards—standards, which.govern the,physical appearance and condition of both the exterior and interior areas of an apartment house. Notification of Inspection—notice from the City to the property owner/agent that the City will be conducting an inspection. Non-Owner Occupied/Rental Property—a residential dwelling wherein the owner/landlord gives to another the temporary possession and use of property in exchange for consideration and the latter agrees to return the property to the owner/landlord. Occupant— means any person who occupies a unit, as a tenant or permittee of the j' owner, but not an owner occupied unit. Owner- means any individual, partnership, corporation including the agent(s) of the owner who has title to a residential rental unit. Owner Occupied—means a residential unit, which is occupied by the owner. Well-maintained Properties— properties with no existing violations of the California Housing Code, California Building Code, California Fire Code or the California Civil Code. Scope. The provisions of this chapter shall apply to all existing non-owner occupied/rental property, including parking lots, driveways, landscaping, assessory structures, fences, walls, swimming pools,hot tubs and spas. Hotels, motels, mobile home parks, bed and breakfasts, and other similar occupancies are specifically excluded from the provisions of this chapter. The City seeks to work within its existing departmental structure to conduct the initial and subsequent inspections using Code Enforcement personnel. Exemptions. (a) Newly Constructed Buildings. Newly constructed buildings shall be exempt from this Article for a period of one (1) year. The exemption period shall begin on the date a certificate of occupancy is issued. Inspections authorized; compliance with applicable codes and standards. (a) Inspections; conformance with standards. (1) Under the direction of the Community Services Director, the Code Enforcement Department shall conduct an annual exterior inspection of all non- owner occupied/rental properties located within the City. If at the time of the exterior inspection violations are found or there is reasonable cause to believe there may be violations within the interior of the property the Code Enforcement Department may request that an interior inspection be completed. In the event a tenant, in possession of a property to be inspected refuses access to said property, the City Attorney is authorized to obtain from a court of competent jurisdiction any warrant necessary to cause the inspection to take place. (2)When inspections are made, buildings shall be required to be in conformance and maintained in accordance with the code standard that was in effect at the time the building was constructed, except for any additional requirements mandated by the municipal code or state law. (b) Non-complying structures. Structures and premises that do not comply with the provisions of this code and the codes listed above must be altered or repaired to obtain the required level of compliance or demolished. Exterior building maintenance standards. In addition to the California Model Building Codes and City of Grand Terrace Municipal Code, Health and Safety, Title 8, residential non-owner occupied/rental buildings shall meet the following exterior building maintenance standards: (a) Buildings, or portions thereof, shall have exterior walls that are weather tight, watertight, and kept free of deterioration, holes, breaks, or loose boards or coverings. Roof surfaces shall be watertight and not have any defects that will allow water to enter into the structure; (b)The exterior finish of all'structures shall be maintained. If the exterior finish of a structure is paint or stain, the structure shall be painted or stained prior to a time when the exterior finish has substantially deteriorated; (c)All architectural projections such as cornices, moldings, lintels, sills and similar projections shall be maintained in good repair and free of defects; (d) All chimneys, antennas, vents, gutters and downspouts and similar projections or building accessories shall be structurally sound and in good repair. Such projections shall be properly secured, when applicable, to an exterior wall or roof; (e)Windows and exterior glazing shall be soundly and adequately glazed, free from loose and broken glass and cracks that could cause physical injury or allow the elements to enter the structure. Exterior doors shall be maintained weather tight, watertight and rodent proof. Exterior doors of rental dwelling units shall be solid core or equivalent and be provided with a dead bolt-locking device that tightly secures the door; (f)All structures and exterior property shall be maintained free of rodent, insect or vermin infestation, which creates an unsafe or unsanitary environment on the subject, or adjacent buildings or properties; and (g)All assessory structures shall be maintained in a state of good repair or removed from the site. Such structures shall include, but not be limited to, clubhouses, offices, maintenance buildings, carports, retaining walls, fences, garages, swimming pools, spas, hot tubs, and miscellaneous sheds or structures. Exterior site maintenance standards. In addition to the California Model Building Codes and City of Grand Terrace Municipal Code, Health and Safety, Title 8, residential non-owner occupied/rental buildings shall meet the following exterior site maintenance standards: (a)There shall be no accumulation of weeds, vegetation,junk (to include, but not be limited to, abandoned, unused or non-operational appliances, equipment, vehicles, machinery, or household furnishings), dead organic matter (including lawns), debris, garbage, stagnant water, combustible materials or similar materials or conditions; (b)All parking areas shall be kept free of potholes, cracks or other deterioration. No dirt, grass or sod parking areas are allowed. All striping and signage, including parking signage and fire lane or access signage, shall be maintained in good condition and clearly legible; (c)All landscaped areas shall be maintained so as not to constitute a public safety hazard and all dead, diseased, or severely damaged plant materials shall be removed. Driveways, hardscape parking areas, patios or walks are not included as landscape areas; and (d) Refuse enclosures shall be installed and maintained. All refuse shall be kept inside the enclosure. Oversized trash that will not fit within the refuse enclosure shall be removed from the property. Interior maintenance standards. In addition to the California Model Building Codes, residential non-owner occupied/rental buildings shall meet the following interior maintenance standards as defined in California Code of Regulations (CCR) Title 24 definition of a "habitable" rental unit: (a) Effective waterproofing and weather protection of roof and exterior walls including unbroken windows and doors. (b) Plumbing facilities in good working order, including hot and cold running water, connected to a sewage disposal system. (c) Gas facilities in good working order. (d) Heating facilities in good working order. (e) An electric system, including lighting, wiring, and equipment, in good working order. (f) Clean and sanitary buildings, grounds, and appurtenances (detached garage, garden, etc.)free from debris, filth, rubbish, garbage, rodents, and vermin. (g) Adequate trash receptacles in good repair (h) Floors, stairways, and railings in good repair (i) A working toilet, wash basin, and bathtub or shower. Q) A kitchen with a sink that cannot be made of absorbent material such as wood (k) Natural light in every room through windows or skylights. Windows in each room must be able to open at least halfway for ventilation, unless a fan provides mechanical ventilation (1) Safe fire or emergency exits leading to a street or hallway. Stairs, hallways, and exits must be kept litter-free. Storage areas, garages, and basements must be kept free of combustible materials. (m)Operable deadbolt locks on the main entry doors of rental units, and operable locking or security devices on windows. (n) Working smoke detectors in all units of multi-unit buildings, such as duplexes and apartment complexes. Apartment complexes also must have smoke detectors in common stairwells. Notification of inspection; inspection procedure. (a) A letter of intent to inspect the property shall be mailed to the property owner stating an approximate date and time of inspection. Such notification shall give a minimum of fourteen (14) days notice. (b) It shall be the responsibility of the property owner to notify any individual tenants of the inspection. (c) Should an inspection need to be canceled or rescheduled, a notice shall be mailed to the property owner at least three (3) days prior to the scheduled inspection date. (d) At the invitation of the tenant in possession of the property City code enforcement personnel will enter the property, for scheduled or unscheduled inspection. Annual inspection,fee. Property owners with buildings subject to inspection shall pay a fee in the amount set forth in the Resolution Establishing Fees and Charges for Various Municipal Services. The fee will only be used to finance the cost of inspection and enforcement of this program. Should the property owner fail to pay the required fee, the City will recover it, plus accrued interest and penalties, utilizing any remedies provided by law including nuisance abatement or municipal tax lien procedures established by ordinance or state law. (a) Good Landlord/Tenant Program. Well-maintained properties that have passed inspections for three consecutive years may qualify to participate the Good Landlord/Tenant Program. For qualifying participants, the property owner will be allowed to remove the property from the full ( ? program and pay an annual inspection fee that is one-half of the City inspection ` program's annual fee, provided conditions do not deteriorate to the point where the property would no longer meet eligibility standards for program participation. (1) If the Community Services Director or his/her designee determines that the property is ineligible to participate in the Good Landlord/Tenant Program, then the property shall be inspected and the property owner shall be assessed the full annual inspection fee in the amount set forth in the Resolution Establishing Fees and Charges for Various Municipal Services for all units, per year. (3)At all times, the City shall retain the authority to investigate and address any violation of the California Housing Code, California Building Code California Fire Code or the California Civil Code. (4) Any property that participates in the Good Landlord/Tenant program may be removed from the program at any time if it fails to meet any or all of the interior and exterior standards described in this ordinance. Education. Annually each property owner will receive an invitation to City sponsored educational sessions entitled (1) "How to pass your inspection" (2) "Tenants Rights". This invitation will accompany the Annual Inspection Fee mailings sent to all rental property owners. (1) How to Pass Your Inspection The purpose of this course is to give property owners an understanding of what to expect during their inspections and allow them to objectively assess their own property to know what they will need to repair, if apything, in order to pass an inspection the first time. This educational session will familiarize property owners, and property managers, with the basic procedures of an inspection, what is considered a violation, and what is considered compliance with the California Housing Code, California Building Code, California Fire Code and the California Civil Code. (2) Tenant Rights This course can benefit both tenants and property owners. In this educational session, the class will cover items such as: -Before You Rent.....Tips for Renters -Before You Sign -Moving In -Rights and Responsibilities of Landlords and Tenants -Moving Out -ley Contacts for State, local, and non-profit agencies that can typically assist renters. Re-inspection fee. Upon inspection the inspector may instruct the owner of the facility to perform work, take action, or refrain from action to ensure compliance with applicable codes. If the inspector discovers upon re-inspection that the work, action, or inaction requested was not performed the property owner shall be charged a re-inspection fee to the extent set forth in the Resolution Establishing Fees and Charges for Various Municipal Services. Should the property owner fail to pay the required fee the City will recover the amount of the fee plus accrued interest and penalties utilizing any remedies provided by law including nuisance abatement or municipal tax lien procedures established by ordinance or state law. Violations. Ai (a) Notice of Violation. Whenever the inspector determines that a violation of this article exists, the inspector shall give notice of violation and an order to correct to the property owner. The notice shall be in writing, sent via both mail and certified mail, and shall describe the violation in sufficient detail so that a reasonable owner would understand the violation(s) and have the opportunity to correct said violation(s). (b) Time for Correction. The notice shall provide a reasonable time for correction, ranging from 24 hours to up to 90 days from the date of the Notice of Violation mailing, depending upon the severity of the violation. The owner may request an extension of time. The extension may be granted if the inspector determines that substantial progress is being made to correct the violation. (c) Report of Inspection. Upon completion of the property inspection, the inspector shall send a written Report of Inspection , via both regular mail and certified mail, to the property owner. The Report of Inspection shall contain-an itemization of any violation(s) and set a period of time for correction ranging from 24 hours to up to 90 days. (f) Building Permits. Building permits for the correction of violations shall be issued, as required by the California Building Code, through the City Building and Safety/Public Works Department. (g) Re-inspections. Re-inspections will be conducted to verify that the violations identified on the initial inspection have been corrected. The City shall be responsible for scheduling required re-inspections on or after the date for completion,.of any necessary repairs. Any violations that were not noted on the initial inspection report, but are discovered on the re-inspection due to subsequent damage or deterioration, shall be subject to correction. Enforcement. Substantial fees shall result if after notice and order to correct, an owner fails to correct a violation. Each violation that continues after the set date of correction with no attempt to abate the violation shall be subject to a $ 100 fine, $200 for the second citation, and $500 for the third and subsequent citations per violation. (a) Repeat violations are usually related to lack of property management knowledge. Property management courses are offered through local rental property management associations. A property owner in violation who chooses to attend an "Essentials of Rental Property Management" or similar such approved seminar will have the amount of their violation reduced by the cost of the seminar when proof of completion is remitted with the payment of the fine. The Community Services Officer can refer a property owner to a local association for approved seminar information. The failure of any property owner to pay fines assessed by administrative citation, within the specified time, will result in the City's pursuit of all legal remedies available to recover amount of the fine, penalties, and associated costs. Further, the city intends to utilize the provisions of Revenue and Taxation Code § 24436.5 to encourage the elimination of substandard conditions in non-owner occupied/rental property. Said section provides for the disallowance of state income tax interest, depreciation, taxes, or amortization deductions that are derived from the ownership of rental housing that is not in compliance. The City is also authorized to use the remedies set forth in the Uniform Building Code and Uniform Housing Code. If after the City has pursued all available options under the law and the property still has not been brought into full compliance with applicable codes and standards, the City will use reasonable means to abate the nuisance and seek recovery from the property owner. Such steps shall be taken no later than 12 months after the initial violation is found. In extreme cases recovery may include the use of civil actions, specifically receivership proceedings. Civil Action: Receivership. The City may petition the Superior Court for the appointment of a receiver over a substandard property if the property owner has failed to comply with the terms of a notice or order to repair issued by the City. The petition seeks to authorize the receiver to rehabilitate the property, borrow funds as necessary to pay for the rehabilitation and other receivership costs, and secure any incurred debt with a recorded super-priority lien on the property. The petition seeks a preliminary injunction that would order the property owner and other interested parties to immediately turn over possession of the property to the receiver, prohibit the owner and other interested parties from collecting income from the property, interfering with the receiver, or encumbering the property during the receivership. The petition seeks to prohibit existing mortgages from undertaking foreclosure proceedings against the property during the receivership. Appeal process. Any person aggrieved by a determination of the inspector may appeal in writing to the City Clerk's office, 22795 Barton Road, Grand Terrace, CA 92313 within ten (10) calendar days from the date the citation was mailed. An appeal will result in an administrative h6aring. Retaliatory eviction. It shall be unlawful for a landlord to recover possession of a rental unit in retaliation against a tenant for exercising his/her right pursuant to state law. Section 2. Effective Date: The Ordinance shall be in full force and effect at 12:01 a.m. on the 31st day of its adoption. Section 3. Positing: The City Clerk shall cause this Ordinance to be posted in three (3) public places within fifteen (15) days of its adoption, as designated for such purpose by the City Council. Section 4. First read at a regular meeting of the City Council of said City held on the December 8, 2005 and finally adopted and ordered posted at a regular meeting of said City Council on the January 12, 2006. ATTEST: City Clerk of the Cit of hdayOrA the City.of Grand Terrace Grand Terrace and of the and of the City Council thereof - City Council thereof I, BRENDA STANFILL, City Clerk of the City of Grand Terrace, California, do hereby-certify that the.foregoing Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the January 12,. , 2009ty the following vote: AYES: Councilmembers Hikley, Garcia and Miller; Mayor Pro Tem Cortes and Mayor Ferre NOES: None ABSENT: None ABSTAIN: None City Clerk Brenda Stanfill .Approved as t f m: City Attorney John Harper