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ANANALYSISOFRENTALPROPERTYREGISTRATIONINAUSTINJULY2013

BYTHEENTREPRENEURSHIPANDCOMMUNITYDEVELOPMENTCLINIC

UNIVERSITYOFTEXASSCHOOLOFLAW

HEATHERK.WAY,CLINICDIRECTORSTEPHANIETRINH,LAWSTUDENTMELISSAWYATT,LAWSTUDENT

ExcerptedfromanupcomingreportpreparedforGreenDoors:ADDRESSINGPROBLEM

PROPERTIES:LEGALANDPOLICYTOOLSFORASAFERRUNDBERGANDSAFERAUSTIN.RentalPropertyRegistrationisanessentialtoolforcreatingacodeenforcementsystemthateffectivelyidentifiesproblempropertiesand,throughrandominspections,deterslandlordsfromengagingindeferredmaintenanceandlaxpropertymanagement.Astrongly‐enforcedrentalregistrationprogram“letstheownerunderstandthatheisknowntothemunicipalityandaccountableforhisactionswithrespecttotheproperty.”1Joiningcitiesacrossthecountry,atleast20TexascitieshaveadoptedrentalregistrationordinancesincludingHouston,Dallas,FortWorth,andArlington.LargeU.S.citiesoutsideofTexaswithrentalregistrationprogramsincludeSeattle,Sacramento,Philadelphia,Boston,LosAngeles,andMinneapolis.Thissectiondiscussesthebenefitsofrentalregistrationprograms,providessomehistoricalbackgroundonAustinandrentalpropertyregistration,anddiscussesarangeofpolicyoptionsforarentalregistrationordinanceinAustin.A.TheBenefitsofRentalRegistrationProgramsRentalregistrationprogramsgivecitycodeinspectorstheauthoritytoinspecttheexteriorandinteriorspacesofrentalunitsonarotatingbasis,whilecreatingaworkingdatabaseofrentalpropertiesinthecity.Thedatabasegivescitiesthemuch‐neededabilitytoidentify,track,andthenprioritizethemostdangerousproblempropertiesandthemostproblematiclandlordsforappropriateaction.Rentalregistrationprogramsalsoprovidecitieswithinformationonhowtocontactownersorpropertymanagerswhenthereisanemergency,codeissues,orotherproblemswitharentalproperty.Withoutamechanisminplacetoproactivelyconductinspectionsandidentifythemostdangerousproperties,codeenforcementofficersmustrelyonacomplaint‐driveninspectionprocess—astrategythat,asdiscussedbelow,hasproventobeineffectiveinAustinandothercities.Thisisespeciallythecaseincommunitieswith

RENTALPROPERTYREGISTRATIONINAUSTIN

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largelow‐income,immigrantpopulations,sincethesetenantsaremorelikelytoavoidreportingcodeviolationsforfearofretaliation.2TenantsinTexasfaceaheightenedburdeninprovingretaliationsincelandlordsdonothavetohavegoodcausewhentheychosetonotrenewalease.TheAustinTenantsCouncilreportsitisextremelydifficulttoestablishretaliationinleasenon‐renewalcases.Withrentaloccupancyrateshoveringat98percentinAustin,landlordretaliationcanquicklydrivealow‐incometenantintohomelessness.Austin’sanonymousreportingsystemdoesnothelpatenantwhoneedstoreportviolationsintheinterioroftheunit.Rentalregistrationprogramsgivecitiesatooltoidentifycodeproblemsandinterveneearlieronintheprocess,beforeapropertydeterioratestothepointthatitbecomescostprohibitivetorepair.3AstudyofNorthCarolinacitieswithmandatory,proactiverentalregistrationordinancesalsofoundthattheordinancesresultedinlandlordsbringingtheirpropertiesintocodecompliancemorerapidly,adecreaseinresidentialfires,andareductionincodecomplaints.4Forexample,Greensboro’shousingcodecomplaintsfell61percentfromahighof1,427attheimplementationofthecity’srentalregistrationprogramin2005to871complaintsin2007.5WhentenantsdoendupfilingacodecomplaintinAustinaboutabuildingcondition,itmaythenbetoolate—thepropertyhasalreadyfallenintosuchastateofdisrepairthatthepropertyistoodangerousforthetenantstoremain.Rentalregistrationprogramsallowcitiestoidentifycodeproblemsearlyonwhentheproblemsfirstarise.Citiescanthenworkwithpropertyownerstocorrectunsafelivingconditionsbeforetheygrowtothelevelthattheybecomecostprohibitiveforthelandlordtorepairandbeforetheyputthetenants’livesinjeopardy.Anotherbenefitofrentalregistrationprogramsisthattheyidentifythefullscopeofacity’ssubstandardrentalhousingproblems.Havingthisinventoryallowscityofficialstodevelopappropriatecitywidepolicyresponses.Theseresponsesincludecarrotandstickapproachestobringpropertiesintocompliancewithcoderequirementscoupledwithtoolsaimedatalsopreservingaffordablehousingopportunities.Rentalregistration,coupledwithalicensingrequirement,alsogivescityofficialsanadditionaltooltoincentivizelandlordstokeeptheirunitssafeandcodecompliant.Inespeciallyegregiouscasesinvolvingrepeatandsevereviolations,acitycanbaralandlordfromoperatingapropertyuntilthelandlordaddressesthedangerousconditions.Finally,throughaminorfeeassessedagainsteachrentalunitattheproperty(typicalannualfeesadoptedbycitiesrangefrom$10to$25aunit),rentalregistrationprogramsaretypicallyself‐funding.Thismeansacitydoesnothavetodrawfromlimitedgeneralrevenuefundstocoverthecostsofregisteringandinspectingtherentalunits.Atthesametime,withfeesoflessthan$.83to$2.08amonthperunit,thefinancialimpactofrentalregistrationfeesonownersandtenantsistypicallyveryminimal.


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B.Austin’sRentalRegistrationBackgroundAustinisoneofthefastestgrowingcitiesinthecountryandthe11thlargestcityintheUnitedStates.Thecityhasapproximately3,400multifamilyproperties(3ormoreunits)basedoninformationobtainedfromtheTravisCountyAppraisalDistrict,AmericanCommunitySurvey,andAustinEnergy.Thecity’srentaloccupancyratesarecurrentlyaround98percent,inacitywhere57percentofallresidentialunitsarerentals.6InFY2011‐12,citycodeofficialslogged1,148noticesofcodeviolationsatmultifamilyresidentialproperties.Asdiscussedabove,Austinhashistoricallyreliedonacomplaint‐driven,passiveapproachtocodeenforcementatrentalproperties.In2002,theAustinAmerican‐Statesmancriticizedthisapproachas“Austin’swayofducttapingapersistentproblem.”7Poorrentershaveshoulderedtherisksofthispolicy,“oftenendur[ing]unsafeandunsanitaryconditionsratherthanreportaslumlordandriskretaliatoryeviction.”8UnsafelivingconditionsatAustinrentalpropertieshavereceivedconsiderableattentioninthepressoverthepasttwoyears,withanumberofhighprofilecasesinvolvingtenantdeathsordisplacement.InadditiontotheWoodRidgeApartmentscase,discussedabove:

In2001,twomendiedatarentalpropertyasaresultofafaultyheaterataduplexthathadbeenillegallyconvertedinto15rentalunits.Acodeinspectionafterthedeathsfoundthattherentalunitsdidnothaveanysmokealarmsandthattheunitconditionsweredangerous.9

InOctober2012,abalconyatLasPalmasapartmentsstartedtocollapse,resultinginthedislocationof60tenants.Atenantfirstnoticedcracksinthefloorsandwindowsoutsidehisunitandreportedtheproblemtomanagement.Managementrefusedtotakeaction,resultinginthetenantandmanagerarguingandacalltothepolice.Thepoliceofficersobservedthecracksandcalledthecodecomplianceandfiredepartments.

Austinhasneverhadarentalpropertyregistrationprogramforlong‐termrentals,althoughtheCityCouncilinitiatedeffortstoadoptoneafewyearsago.In2009,CouncilmembersBillSpelman,LauraMorrison,andSherylColeproposedaresolutionaskingthecitymanagertoworkwithstakeholderstodeveloparentalregistrationordinancerequiringtheregistrationofmultifamilyrentalproperties,aswellastriggerstoidentifyconditionswhenregistrationforsingle‐familyandduplexrentalpropertieswouldberequired.Theresolutionstatedthat:

“[T]heprogramshouldfeatureinitialandperiodicinspectionstoconfirmaproperty’scompliancewithapplicablestandardsincludingcriticalhealth,safety,maintenance,zoning,buildingandfirecodes.


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Theprogramshouldestablishprovisionsforaddressingnoncompliantresidentialrentalpropertiesinwaysintendedtopromotecomplianceandprotectpublichealthandsafety.”10

Theapartmentindustryopposedtheeffortstoadoptarentalregistrationordinance,and,duetolackofconsensus,anordinancewasneverpresentedtotheCityCouncilforavote.InJune2013,theCityCouncilapprovedtworesolutionstosetuprentalregistrationprograms.Thefirstone(the“Tovoresolution”sponsoredbyCouncilmemberKathieTovowithco‐sponsorCouncilmemberMikeMartinez)directedtheCityManagertodevelopaone‐yearpilotregistrationprogramforallresidentialrentalpropertiesinagroupofCentralAustinneighborhoods,theRundbergarea,andtheEastRiverside/Oltorfarea.11Thesecondresolution(the“Spelmanresolution”sponsoredbyCouncilmemberBillSpelman,withco‐sponsorMayorProTemSherylCole)directedtheCityManagerto:

...initiateacodeamendmenttocreatearepeatoffendersprogramsothatafterthesecondhealthandsafetycodecitationwithinoneyearatagivenrentalproperty,thepropertywillberequiredtoregisterwiththecity,andwillbesubjecttoappropriatefeesforregistrationthatshallcoverthecostoftheprogram,aswellasanyinspectionsthattheDirectorofCodeCompliancedeemsnecessarytoensurecompliancewithhealthandsafetycodes.12

Themainon‐goingbarriertoimplementingacomprehensiverentalpropertyregistrationordinanceisoppositionfromtherealestatecommunity.TheAustinBoardofRealtors®,forexample,ismobilizingenmassetoopposetheCity’scurrenteffortsatadoptingregistrationordinances.Theirofficialpositionopposingrentalregistrationisontheirwebsite,recommending“thattheCityofAustin,throughitsstakeholderprocess,developaprogramthatwillempowertheCodeEnforcementDepartmentandnotrequireittobeself‐sustaining.CodeEnforcementisabasicessentialservicethatcanreceivefundingthroughthepropertytaxandcollectionfeesfromcodeviolators.TheCityofAustinshouldrewardconscientiousandresponsiblepropertyownersandpunishcodeviolators.”13EventhoughAustinhasneverhadaregistrationandinspectionprogramforlong‐termrentals,in2012theAustinCityCounciladoptedanordinancerequiringtheregistrationofshort‐termrentalsforone‐andtwo‐familydwellingunits,targetingtheincreasinglypopularvacationrentalmarketinAustin.14Austin’sShort‐TermRentalLicensingProgramrequiresa$235annuallicensingfee.Theprogramdoesnotrequireaninspectioniftheunithasalreadyreceivedacertificateofoccupancy.


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C.KeyElementsofRentalRegistrationProgramsThefollowingaresomeofthekeyelementsthatneedtobeconsideredwhencreatinganewrentalregistrationprogram.Toidentifytheseelements,weexaminedawidevarietyofrentalregistrationprograms,withafocusonthoseadoptedinthe10largestTexascities(Houston,Dallas,FortWorth,Arlington,andPlano)andseveralmajorU.S.cities.Appendix2containsachartcomparingtheprogramsweexaminedin12totalcities;severalofthesmallerTexascitiesweexaminedarenotincludedinthechart.

1. TriggersforRequiringRegistrationandInspectionTherearefourgeneralcategoriesofrentalregistrationprogramsthatcitieshaveutilized,withvaryingtriggersforwhenregistrationandaninspectionarerequired: Registrationandinspectionofallproperties,regardlessofwhetherthe

propertyhasahistoryofcodecitations:Inspectionsareonallpropertiesbutnotnecessarilyallunits(forexample,inalargemultifamilyproperty,onlyafewunitsmaybeinspected),andinsomecitiesjusttheexteriorofthepropertyisinspected.Inthesecities,theinteriorisnotinspectedunlesscodeviolationsareidentifiedontheexterior.

Registrationofallproperties,withinspectionsofapercentageofproperties,regardlessofwhetherthepropertyhasahistoryofcodecitations.

Registrationofallproperties,withinspectionsofonlypropertieswitha

historyofcodecitations. Registrationandinspectionofpropertiesonlywithahistoryofcode

citations.MostoftheregistrationprogramsintheU.S.thatweidentifiedrequiremandatoryregistrationandinspectionsofallrentalpropertiesorasubsetoftheproperties,regardlessofwhetherthepropertieshaveahistoryofcodeviolations.Somecities,suchasFortWorthandDallas,haveadoptedabifurcatedapproach,treatingmultifamilyandsingle‐family/duplex/triplexpropertiesdifferently.InFortWorth,allmultifamilypropertiesmustregister,butsingle‐familyandduplexpropertiesmustregisteronlyiftherearepriorcodeviolationsattheproperty.InDallas,allrentalpropertiesmustregister,butonlymultifamilypropertiesaresubjecttoregularinspections.Single‐familyandduplexpropertiesareinspectedonlyiftheycodecomplaints.TheAustinCityCouncilispursuingbothaproactiveandreactiveapproachinitstwoJune2013resolutions.TheTovoresolutionsetsupageographically‐targetedpilotregistrationandinspectionprogramforallrentalproperties.TheSpelman


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resolutionrequirestheregistrationandinspectionofonlypropertiesthathavereceivedtwoormorecodecitationsinthepastyear.(UndertheSpelmanresolution,theWoodridgepropertydiscussedearlierinthereportwouldnothavetriggeredaninspectionpriortothewalkwaycollapse,sincethepropertyhadnothadanycodecitationsissuedagainstitinthepasttwoyears).Severalstudieshaveshownthatthislatterapproachoffocusingonlyonpropertieswithahistoryofcodecitations—whichissimilartothewayAustin’scurrentcodeenforcementsystemoperates—isineffective.15Areactiveapproachfailstoidentifymanypropertieswithseriouscodeviolations,especiallythoseincommunitieswithmorevulnerabletenantssuchaslow‐income,first‐generationimmigrantswhoareoftenafraidofreportingviolations.InasurveyconductedbytheMontgomeryCounty(Maryland)TenantsWorkGroup,forexample,20percentoftenantsreportedtheyfearedretaliationforreportingcodeviolationsorotherproblemswiththeirrentalunits.16InAustin,oneoutoffiveapartmentunitsareoccupiedbyforeign‐bornhouseholds.Themostrecentimmigrantarrivalshavethehighestriskoutofalltenantsoflivinginsubstandardrentalbuildings.17AfocusgroupbyTravisCountyconfirmedthatmanyrecentimmigrantsherelocallyhavelandlordswhodonotaddresssafetyhazardsorpublichealthconcerns.Reportsofabusivelandlordpracticeswerecommon,includinglandlordsignoringtenants’requestforrepairsorthreateningthemdeportation.18Tenants’fearsofretaliatoryevictionsarebasedinreality,despitethelegalprotectionstenantshavefrombeingretaliatedagainstforreportingcodeviolations.LegalaidandtenantadvocateslocallyreportthatretaliatoryevictionsarenotuncommoninAustin,evenwiththecurrentrightstenantshaveunderCityofAustinpolicytomakecomplaintsanonymously.Newsarticlesfromaroundthecountryoverthepastfewyearsalso“demonstratethatretaliatoryevictionisanissuethatcourtscontinuetoencounteracrossthecountry.“19Tenantsoftenlacktheinformationtoidentifymanytypesofcodeissues,suchasstructuralissues,andwhenitisappropriatetomakeacomplaint.(SeeAppendix3,whichincludespicturesofseveraltypesofstructuralissuesatAustinmultifamilycomplexesthattenantsareunlikelytoeverreport.)Asaresult,forthosetenantswhodoreportcodeissues,thecodereportshaveagreateremphasisonenvironmentalandvehicleviolationsratherthanstructuralissues,suchasdeterioratingstructuralsupportforporchesorstairwells,whichcangoeasilyundetectedwithoutaprofessionalinspection.20AtragicexampleofthisoccurredinHoustonin2008whentwochildrendiedfromsuffocationfromabrickstairwellthatcollapsedonthem.Thecity’scodeofficialshadnotinspectedthepropertyforstructuralproblemssince1996.21Multifamilyunitsarealsomuchlesslikelycomparedtosingle‐familypropertiestocometotheattentionofcodeenforcement,22probablydueintheparttothefactthatmultifamilypremisesarenotasvisiblefromthestreetandthussurroundingneighbors.


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2. TypesofPropertiesthatMustbeRegisteredCityrentalregistrationprogramsvarywidelyinthetypesofrentalpropertiesthatarecoveredbytheregistrationandinspectionrequirements.Factorstoconsiderinclude:

thenumberofunitsinaproperty(e.g.,single‐family,duplex,multifamily); whethertoincludealternativetypesofrentalhousing(e.g.,RVparks,

extended‐stayhotelsandboardingrooms); whethertoexemptaffordableunitsalreadysubjecttoseparategovernment

oversightandinspections,suchasSection8properties; whethertoexemptowner‐occupiedproperties(e.g.,aduplexwiththeowner

livinginoneoftheunits);and whethertoexemptnewerproperties.

Somecitiesinitiallytargetedasmallersubsetofpropertiesbutthenexpandedtheirprogramsovertheyearstocoverabroaderrangeofproperties.Forexample,Dallas’srentalregistrationprograminitiallytargetedjustmultifamilyapartmentsofthreeormoreunitswhenitwasadoptedin2004,butin2010thecityadoptedaseparateregistrationprogramtocovernon‐owneroccupiedrentalpropertiesoflessthanthreeunits.Mostprogramsappeartoexemptowner‐occupiedproperties,atleastforsingle‐familyhomesandduplexes,andmanyexemptgovernment‐subsidizedhousingthatisalreadysubjecttoinspections.Forexample,PlanoexemptsunitsthatreceiveSection8subsidiesfromtheregistrationrequirement,sincetheseunitsarealreadyinspectedbythelocalhousingauthority.Somecitieslimitregistrationrequirementstobuildingsoveracertainage,allowingnewerbuildingstoremainexemptforacertainnumberofyears.Forexample,FortWorthandPlanoexemptbuildingslessthanfiveyearsoldfromtheirregistrationandinspectionrequirements(Planooriginallycoveredbuildingsolderthan10yearsbutextendedtheprogramin2008tocoverbuildings5to10yearsold).Onechallengethatcitiesfacewhentheyincludesingle‐familypropertiesintheirregistrationsystemisidentifyingthesepropertiesandgettingthemintothesystem.Unlikemultifamilyrentalproperties,whicharefairlyeasytoidentifyusingappraisaldistrictrecords,itishardtoidentifywhenasingle‐familypropertyisbeingusedasrentalhousing.TheCityofDallasreportsthatithasstruggledwiththisissueandhastalkedtoothercitiesfacingsimilarstruggles.Asalessonlearned,DallasstaffrecommendedthatAustindevelopupfrontasystemforidentifyingsingle‐familyrentalproperties,suchascoordinatingwiththewaterutilitydepartmenttocollectthisdata.TheCityofSeattleisworkingthroughtheseissuesnowasitsetsupitscomprehensiverentalregistrationprogram,andhasbudgetedsignificantfundsforconductinglandlordoutreach.


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3. RegistrationandInspectionImplementationBecauseofthedauntingtaskthatlargercitiesfaceupfrontinbringingthousandsofrentalpropertiesintoanewregistrationandinspectionprogram,manycitieshaveimplementedtheirregistrationordinancesinphases.Seattleisrollingoutitsbrandnewrentalpropertyregistrationinthreephases:propertieswith10ormoreunitsmustregisterbyJuly2014;propertieswith5to9unitsmustregisterbytheendof2014;andpropertieswith1to4unitsmustregisterbytheendof2016.TheCityisalsorollingoutitsinspectionsinphases.InTexas,HurstandRichardsondividedtheircitiesintodifferentzonesandhaveplacedeachzoneonadifferenttimetable,requiringinitialregistrationandrenewaltobestaggeredamongthezones.TheCityofIrvingordinancestaggerslicenserenewaldatesbaseduponthetypeofresidence(e.g.,multifamily,single‐family,RV,manufacturedhome.)

4. Renewals

Anotherconsiderationforcitiesadoptingrentalregistrationordinancesistodeterminewhenapropertyregistrationmustberenewed.Registrationrenewalfollowsoneofseveralmodels,including:(1)annualorothercalendar‐basedschedule;(2)atachangeintenancy;or(3)atachangeinownership.Thevastmajorityofthecitiesweexaminedwithrentalregistrationprogramsrequireannualregistration.ThemostnotableexampleofacitywithoutannualregistrationisSeattle,whichisadoptingafive‐yearregistrationcycle.BrooklynCenter,Minnesotaprovidesforlongerregistrationterms(threeyears)forpropertiesthathaveminimalcodeviolationsandpoliceservicecalls,andshorterregistrationterms(sixmonthstoayear)forpropertieswithhighlevelsofcodeviolationsandpoliceservicecalls.23

5. TypeofInformationGatheredinRegistrationCities’rentalregistrationapplicationsvaryinthetypeofinformationtheyrequire.Theapplicationsalwaysrequire,ataminimum,thenumberofunitsandthepropertyowner’sname,phonenumber,andaddress.Theapplicationsmayalsorequirethenumberofbedrooms,numberofallowedoccupants,andnumberofactualoccupants.Registrationapplicationsalsotypicallyrequirethenameandcontactinformationforthepropertymanagerand,forpropertiesownedbyabusinessentity,thenameandcontactinformationfortheentity’sregisteredagentforpurposesofservinglawsuits.Itisimportanttoalsorequirecontactinformationforboththeownerandpropertymanager,especiallyanemergencycontactwhoisavailable24hoursaday.Thisprovidescode,police,andneighborswithsomeonetocontactifthereareemergenciesorotherissuesontheproperty.Dallasrequiresthenameoftheinsuranceproviderandalllienholders,aswellasanalternatecontactfortheproperty.Richardson,Texasrequiresrentalpropertyownerstoprovideaworkingemailaddressandregularlyusesemailalertstocommunicatewithowners.Irvingrequirestheownertoprovideinformationonthepersonresponsibleforpayingtheutilitybills.


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Inmostcitiesweexamined,theowneristypicallyresponsibleforactingpromptlytoupdatecontactinformationorchangestotheregistrationrecords.Ifthepropertyownerresidesoutsidethecityoroutsidethestate,acitymayalsorequirethepropertyownertolistcontactinformationofalocalcontactpersonorpropertymanagerwhohastheauthoritytorepresenttheowneratanylegalproceedingsarisingundertheordinance.Theinformationcollectedshouldfacilitatetheabilityofcitiestoidentifylandlordswhoownmultipleproblemproperties,keepinginmindthatownersoftensetupauniqueholdingcompanytoowneachproperty.Thus,trackinginformationabouttheholdingcompany’sowners,founders,andaddressescanbeveryuseful.Anotherbestpracticeisfortheregistrationapplicationmaterialstolistkeycitylegalrequirementsforlandlordsandrequirethelandlordtoacknowledgeawarenessoftherequirements.24

6. CrimePreventionSeveralcitiesincludeacrimepreventioncomponentintheirregistrationprograms,eitherasarequirementorincentive.ManyoftheseprogramsaremodeledontheCrimeFreeRentalHousingProgram,25anationalprogramthatisutilizedbypolicedepartmentsacrossthecountrytogivelandlordsthetoolstheyneedtohelppreventillegalactivityonrentalproperty.Therearethreecoreelementsoftheprogram:

Atrainingforpropertyownersandmanagersthatincludeseducationonwarningsignsofdrugactivity,preparingtheproperty,applicantscreening,andcommunitybuilding.TheDepartmentofJusticehasputtogetheranextensiveguidebookonhowtosetupatrainingprogram,whichhasacommunity‐orientedfocus.26

Aninspection(CrimePreventionThroughEnvironmentalDesign/CPTED)bypoliceofcriminalsafetyfeaturesonthepropertyincludingexteriorlighting;door,window,andlockstandards;andlandscaping.

Acrime‐freecommitmentbylandlords,includingacommitmenttoregularlyinspectthepropertyunits,maintainsecuritymeasuresontheproperty,havetenantssignacrime‐freeleaseaddendum,andworkwithpoliceandotheragencies.

Examples:

HoustonandDallashavebothadoptedvariationsofthisprogramthroughtheirrespectiveBlueStarandGoldStarprograms,whicharevoluntary.Toachievethestarstatus,thepropertymustpassasecurityinspectionbypoliceandhostacrimewatchmeetingwithresidents,amongstotherrequirements.Propertyownerscanlistthestarstatusintheirpromotionalmaterials,andtheCity’swebsitehasalistingofallpropertieswithstarstatus.DallasandHoustonalsohavemandatoryprogramsrequiringinspectionsandremedialactionplansathigh‐crimeproperties;Houston’smandatoryprogram,which


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isdiscussedintheNuisanceAbatementsection,hasresultedinsignificantdecreasesincrimeatmultifamilyrentalproperties.

FortWorthhasasimilarprogram,butitismandatoryforallmultifamily

propertiesofeightormoreunits.Eachon‐sitemanagerandleasingagentmustattendaneight‐hourtrainingcourseoncrime‐freehousing.AllpropertiesarealsoinspectedbythepolicedepartmentviaaCrimePreventionthroughEnvironmentalDesignassessment.FortWorthalsorequireslandlordtocomplywithseveralcrimepreventionmeasuresontheirproperties,includingrequirementsforspecificexteriorlighting,securingofvacantunits,andgraffitiabatement.

Portland,Oregonconducteditsfirstlandlord‐trainingprogramin

November1989with94landlordsparticipating.Between1989and1995,morethan7,000landlordsandpropertymanagers(representingover100,000rentalunits)attendedthetrainingprogram.27Theprogramhasdevelopedintoanationalmodelrefinedthroughextensiveresearchwithlandlords,police,tenants,andotherstakeholders,withsupportfromtheU.S.DepartmentofJustice.

Milwaukee,Wisconsinhasworkedwithlocallenderstorequirelandlords

toattenditsrentalhousingtrainingprogramasaconditionofreceivingaloantopurchaserentalproperty.

Aspartofitsmulti‐tenantregistrationprogram,Dallasrequiresmultifamily

rentalpropertyownersormanagerstoattendanannual“SafeComplexSymposium”aswellasthreecrimewatchmeetingsintheneighborhoodeachayear.Thesymposiumisrunbythepolicedepartmentandeducatespropertyownersonwaystoimprovetenantsafety.Attendanceatthesymposiumismandatory.Ifapropertyownerfailstoattend,heorsheisassesseda$600fine.Theonlypropertyownerswhoareexemptfromthesymposiumarethosewhohaveachieved“GoldStar”propertystatus.

BothDallasandFortWorthrequirelandlordstoutilizeacrime‐freelease

addendumunlessonehasbeenalreadyincorporatedintotheleaseusingtheTexasApartmentAssociationform.

7. CodeEnforcementEducation

Educationaboutcodeenforcementshouldbeprovidedtobothlandlordsandtenants.Mostpropertyownersholdrentalpropertyasinvestments.Managingandmaintainingrentalpropertiesmaynotbeanowner’sprimaryconcern,and,therefore,theownermaynotactuallyknowwhatisrequiredtokeeptheirpropertiesuptocodeandwhattheconsequencesareforviolatingthecode.Ontheotherhand,tenantsoftenareun‐empoweredbecausetheydonotknowwhat


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standardoflivingtheyareentitledtoandwhattheirrightsaretoenforcecitybuildingcodes.Educatingbothpartieswillhelpmaintainasystemofcodecompliance.Onewaytodisseminateeducationmaterialsisfortheregistrationprocesstoincludeapacketofinformationforlandlordsdetailingwhatisneededtopassaninspection,themaintenanceprocess,andpenaltiesassociatedwithfailingtocomplywithcode.Similarly,landlordscouldberequiredtogivetenantsapacketofinformationatmove‐inoruponthesigningofalease,whichexplainsthetenants’rightsasrentersandtheprocessforreportingviolations.FortWorth,forexample,requireslandlordstoprovidetenantswiththeFortWorthRentalHandbook.Thehandbookprovidesinformationongroundsforeviction,atenant’srightstochallengeevictionnotices,informationonhowtomakeacodecomplaint,andcontactinformationforagencieswhocanassistwithdefendingevictions.Astandardrequirementinrentalregistrationordinancesistorequirethepropertyownertodisplaytheregistrationdocumentswithintheresidenceorapartmentcommonarea.InFortWorth,landlordsmustposttheregistrationcertificationontheproperty.FortWorthalsorequireslandlordstopostandmaintainclearlyvisiblesignsonthepropertycontainingemergencycontactinformationforthepropertymanagementandinformationonhowtoreportcodeviolations.28

8. InspectionRequirements

Thereareseveralkeypolicyissuesrelatingtoinspectionsinarentalregistrationprogram:(1)howofteninspectionswillbeconducted;(2)whatpartofthepropertywillbeinspected(exteriorversusinteriorofunits;what%ofunits);(3)whatinspectionstandardstherentalunitsmustmeet;(4)howinspectionsarescheduled;and(5)whatkindofpersonnelwillbeconductingtheinspections.

InspectionSchedules:Thereareseveralpatternscitiesfollowintheirinspectionschedules.Onepatternistorequireaninitialinspectionuponregistration,thenrequiresubsequentinspectionseitheratchangesintenancy,ifthepropertyfailedtheinitialinspection,orinresponsetotenantcomplaints.Asecondpatternistorequireinspectionsonlyinresponsetotenantcomplaints(thelimitsofthisapproacharediscussedaboveunder“TriggersforRequiringRentalRegistration”).Athirdpatternistorequireregular,periodicinspections,onanannual,bi‐annual,orlessfrequentbasis,regardlessofchangeintenancyandcomplaints.Mostcitiesweexaminedfollowthislattermodel.FortWorth,forexample,requiresaninspectionofeverymultifamilypropertyeverytwoyears,Dallaseverythreeyears,andHoustoneveryfiveyears.Thefrequencyofinspectionsdependsinlargepartonthenumberofpropertiessubjecttoinspection,thescopeoftheinspection,andthecapacityofthecitystaffdedicatedtoconductingtheinspections.


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Yetanothermodelofinspectionsistorequiremorefrequentinspectionsofpropertiesthatfailedtheinitialinspection.BrooklynCenter,Minnesota,placeseachrentalpropertyinoneoffourdifferenttiersdependingonthenumberofcodeviolations.Type1propertiesareinspectedonlyonceeverythreeyears,whileType4propertiesareinspectedasoftenaseverysixmonths.29

ScopeofInspections:Citiesvaryonwhethertheyinspecttheinteriorofthe

units,althoughmostofthecitieswestudiedinspecttheinteriorsofatleastaportionoftheunits.Houstoninspectsonlytheexterior.Oneoptionistoconductaninitialexteriorinspectionandthenconductaninteriorinspectiononlyiftheinspectorsuspectsissues,thetenantrequestsaninspection,ortheexteriorfailsinspection.Dallasinspectstheexteriorandonlyapproximately10percentoftheinteriorunitspercomplex.Bynomeansshouldinspectionsbeinvasivetothetenants;theinspectorsshouldbeallowedonlytoinspectforstructural,electrical,andothermajorbuildingcodeviolations,usingastandardizedchecklist.

InspectionStandards:Thestandardsthatrentalunitsmustmeettopass

inspectionvaryindifferentcities.Theinspectionstandardsmayrelatetojuststructuralintegrityorcoverarangeofissuesincludingfiresafety,generalmaintenance,andplumbing.

SchedulingInspections:Citiesalsodifferintermsofhowinspectionsare

scheduled.Frisco,Texas,giveswrittenadvancenoticeofwhenaninspectionwilloccur.Incontrast,somecities,suchasIrving,donotgivewrittennoticeofinspections.Citiestypicallyhavea“reasonableness”requirementconcerningtimeswheninspectionsmayoccur.Citiesvaryonwhethersomeone,suchasthetenant,mustbepresentattheunitinorderfortheinspectiontooccur.

Personnel:Citiesdifferintermsofwhattypesofinspectorsvisitthe

property.Mostcitieswereviewedusecitystaff,butoneoptionistoallowpropertyownerstohireoutsideinspectors,orforthecitytoretainoutsideinspectors.Asaresultofstateconstitutionalmandates,Seattleisgivingpropertyownersinitsnewrentalregistrationprogramthechoicetousecityinspectorsorhireoutsideinspectors.Allowingpropertyownerstohireoutsideinspectorscouldcreatemoreopportunitiesforabuseasaresultoftherebeinglessaccountability.Sacramentoallowsforaself‐inspectionbythepropertyownerforpropertiesthatfirstpassaninitialinspection;tenpercentofthesepropertiesarethenrandomlyinspectedbytheCitytoensurecompliance.Citiesalsodifferinthenumberofinspectorswhovisittheunitandtheirqualifications.Mostcitiesappeartoutilizejustoneinspector.Houstonusestwoinspectors:onewhoisqualifiedtoinspectfor


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structuralissues,andasecondinspectorwhoisqualifiedtoinspectforelectricalissues.

9. FeesandCostsofRunningaRegistrationProgram

Inadoptingafeestructureforarentalregistrationprogram,thereareanumberoffactorsforacitytoconsider.First,acityneedstodecidewhetheritwantstheregistrationandinspectionofpropertiestobeself‐sustainingthroughthefeestructure,orwhetherthecityiswillingtosupplementtheprogramwithgeneralrevenueorotherfundingsources.UnderTexaslaw,thefeeschargedmustbereasonablyrelatedtothecostofrunningtheregistrationandinspectionprogram.Thismeansthat,beforesettingafee,Austinfirstneedstodoananalysisoftheanticipatedscopeoftheprogramandwhatitwillcosttorun.Thecostsofrunningarentalregistrationandinspectionprogramwilldependlargelyonhowmanypropertiesaresubjecttoinspections,howofteninspectionsarerequired,thescopeoftheinspections,thenumberofunitssubjecttoinspectionateachproperty,andtheextentofre‐inspectionsforpropertiesthatfailtheinitialinspection.Ideally,enforcementcostswillbecoveredseparatelyfromtheregistrationandinspectioncosts,outoffinesassessedagainstpropertyownerswhoviolatetheprogramrequirements.Mostcitieschargeanadditionalfeeforre‐inspectionswhenapropertyfailstheinitialinspection.Typically,inspectioncostsformultifamilyproperties,whenbrokendownonaperunitbasis,arecheaperthaninspectioncostsforsingle‐familyproperties,sinceonlyaportionoftheunitsatmultifamilypropertiesareinspected.Forexample,ifapropertyinspectioncosts$200,thecostis$200perunitinasingle‐familyproperty,and$25perunitinaneight‐plex.Asaresult,incitiesthatinspectbothmultifamilyandsingle‐familyproperties,theregistrationandinspectionfeesformultifamilyrentalpropertiesgenerallyendupsubsidizingpartofthecostsofregisteringandinspectingthesingle‐familyproperties.InAustinCityCouncildiscussionsontheviabilityofimplementingasuccessfulregistrationprogram,somecouncilmembersexpressedconcernsthattheprogramwouldbecostprohibitiveandleadtoabloatedbureaucracy.CouncilmemberBillSpelmanpresentedachartattheJune6,2013,CityCouncilmeetingshowingthattheCityofAustinwouldneedtohire153inspectorsatacostof$13millionayeartoinspectAustin’sapproximate3,400multifamilyproperties(3+units).Inourevaluationofothersuccessfulprograms,wefoundtheseestimatestobeextremelyinaccurate.ThebasisforCouncilmemberSpelman’sestimateisthateveryunitinamultifamilypropertywouldbeinspectedeveryyear,thusyieldinganestimateofnearly200,000inspectionsperyear.Aswehavenoted,itisacommonpracticeinrentalregistrationprogramstoinspectonlyasmallportionoftheunitsatmultifamilypropertiesandtoconductinspectionslessfrequentlythanonceayear.Thus,theactualnumberofannualinspectionswouldbefarfewerthan


14

200,000.Usingveryconservativeestimates,weconcludethateightinspectorswouldbesufficienttorunacomprehensivemultifamilyinspectionprograminAustin—onemodeledonothersuccessfulprogramsaroundthecountry.Theinspectorswouldcostlessthan$600,000ayear,includingequipmentcosts.30Therewouldbeadditionalcoststooperatetheregistrationandenforcementcomponents.Anannualregistrationfeeof$10permultifamilyrentalunitinAustinwouldgeneratecloseto$1.3millionayear.InapproximatingwhatitwouldcosttorunacitywiderentalregistrationwithinspectionsforallrentalpropertiesinAustin,includingsingle‐familyandduplexproperties,theCityofSeattleisagoodguide.Seattleisthemidstofsettingupitsnewcomprehensiverentalregistrationandinspectionprogram,whichwillcoverallrentalpropertiesintheCity.Citystaff,workingwithafinancialconsultingfirm,haspreparedanextensivebudgetanalysisfortheprogram.IncontrasttotheHoustonmultifamilymodel,discussedbelow,theSeattlemodelhighlightshowmuchmoreexpensiveitistoincludesingle‐familypropertiesandduplexesinaregistrationandinspectionprogram.Thesehighercostsareduetothehighvolumeofsingle‐familyandduplexpropertiesalongwiththecostsoftrackingdowntheseproperties,gettingthemintotheregistrationsystem,andtheninspectingthem.TheCityofSeattleestimatesithas147,000renter‐occupiedunitsand61,580rentalproperties.While44percentofSeattle’srentalunitsareinpropertiesoffewerthanfiveunits,93percentofallrentalpropertiesinSeattle(57,485properties)havelessthanfiveunits,with4,095multifamilyproperties(5+units).Incomparison,Austinhasapproximately180,000renter‐occupiedunits(18percentmorethanSeattle),41,500single‐familyandduplexrentalproperties,and3,400multifamilyrentalproperties(3+units).31WesuspectthatSeattlehasmoretotalrentalpropertiesthanAustinduetoalargerrelianceonsingle‐familyrentalsinSeattle(whichislikelydriveninpartbySeattle’shighermedianhomesalespricesof$468,000),inadditiontoAustin’shighvolume(581)oflargeapartmentcomplexeswith100ormoreunits.

ComparisonofSeattle’sandAustin’sMultifamilyandNon‐MultifamilyRentalStock32

Numberof

occupiedrentalunits

Numberofmultifamilyrentalproperties

Numberofmultifamilyrentalunits

Numberofnon‐multifamilyproperties

Numberofnon‐multifamilyrentalunits

Total#ofallrentalproperties

Seattle33 147,000 4,095properties(5+units)

86,367units(5+units)

57,485properties(1‐4units)

67,070units(1‐4units)

61,580properties

Austin 180,00034 3,400properties(3+units)35

134,000units(3+units)

41,500properties(1‐2units)

50,000units(1‐2units)

44,700properties


15

TheCityofSeattlehasbudgeted$1.6millionayearfortheregistrationaspectsofitsprogram,whichincludesanextensiveauditprogram,$1millionforlandlordoutreach,andanITprojectmanagerposition.Tocoverallofitscosts,theCityanticipatesneedingtosetthe5‐yearregistrationfeeat$150(averageof$30/year)asabasefeeforeachproperty,withanadditional$4perunit($.80/year).36Thisdoesnotcoverthecostofinspection.Seattle’sprogramoperationcostsarehigherthanseveralpeercitiesbecauseoftheinclusionofsingle‐familyproperties.IfAustinweretotargetjustmultifamilyproperties(3,400properties),thecostsofarentalregistrationprogramwouldbereducedsignificantly.Asacomparison,theCityofHoustonhas4codeinspectorswhoareinspectingallofHouston’s5,000multifamilypropertiesoverthecourseoffiveyears.Twoinspectors(electricalandstructural)conductacomprehensiveinspectionoftheexteriorpremises.Overall,Houstonisconductinganaverageof6inspectionsaday,4daysaweek,atarateof100amonthand1,200ayear.The4inspectorsarealsoconductingregularlyscheduledfollow‐upvisitsandinspectionsofpropertiesthatfailedtheinitialinspection.TheCityhasanadditional4inspectorswhorespondto311callsforcodecomplaintsatmultifamilycomplexes.TheCitybudgets$1.2millionannuallytoruntheentiremultifamilyprogram,whichincludesthecostsofthe10inspectors,4supportstaff,andtheprogramdirector).TheCityofDallas’smulti‐tenantcodeinspectionsectionhasabudgetoutlayof$2.3millioninexpensesandbringsin$2.8millioninrevenue.37Thesectionincludesthemulti‐tenantregistrationprogrambutisalsoresponsibleforrespondingtoallcode‐relatedcallsconcerningmultifamilypropertiesandenforcementactionspertainingtomultifamilyproperties.A2008studyofNorthCarolinacitiesfoundthatthetotalcostforeachrentalpropertyinspectionrangesfrom$51to$75perpropertyperinspector(basedonanannualinspectorsalaryof$32,500to$43,000).38Houstonispayingitsinspectorsapproximately$45,000in2013.Frominterviewswithhousinginspectionsupervisors,theNorthCarolinastudyfoundthatonefull‐timehousinginspectorcancomplete6inspectionsaday,andapproximately1,400inspectionsayear.AssumingaveryconservativerateofinspectionsforAustinwhereoneinspectorcompletesjustonepropertyinspectionaday(working4daysaweekfor48weeks),6inspectorscouldcompletearound1,200inspectionsayear.Underthismodel,inspectingall3,400ofAustin’smultifamilyproperties(3+units)wouldtakeapproximately3yearsatanannualperinspectorcostofroughly$100,000withbenefitsandcostofequipment,oratotalof$600,000fortheinspectors.39


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ComparisonofAustin’sandHouston’sInspectionCostsforOperatingaMultifamilyRegistrationandInspectionProgram

City Numberofmf

propertiesinspected

Numberofcodeinspectors

Timeneededtocompleteinspections

Approximatecostofinspectors

Austin 3,400multifamilyproperties(3+units)

6 3years(~1,200propertyinspectionsayear)40

$600,000(includesbenefitsandinspectors’workequipment;doesnotincludesupportstaff)

Houston’sMultifamilyRegistrationProgram

5,000(3+units) 6(4inspectorsworkinginteamsof2and2seniorinspectors)

4‐5years(~1,200ayear)

$1.1m(includessalariesandbenefitsfor6inspectors,4supportstaff,andprogramdirector)

Thecitiesweexaminedrangebroadlyinthewaytheyassessfeesforregistrationandinspections.Appendix2liststheirfees.Thefollowingareotherfactorstoconsiderwhendevelopingafeestructure:

Whethertochargearegistrationfeeandinwhatamount.Allbutoneofthecitieswestudied(Houston)chargearegistrationfee.Houstonchargesaperunitfeeonlywhentheinspectionisconductedandreportsthattheinspectionfeesitcollects($140,000/year)areinsufficienttoruntheprogram,whichrelieslargelyonfeesfromtheCity’sBuildingPermitFund.Houstonalsorequiresa$400feeforhigh‐crimepropertiestoparticipateintheCity’sApartmentCrimeEnforcementProgram,whichincludesaseparateinspectioncomponentbypolice.Dallaschargesanannualregistrationfeeforitsmulti‐tenantprogram.FortheCity’snon‐owneroccupiedrentalprogram(single‐familyandduplexes),Dallaswaivesthefeeafterthefirstyearunlessthepropertyfailstheinspection.Theregistrationfeesforcitieschargingbytheunitrangefromalowof$10perunitinDallasforitsmulti‐tenantprogram(withArlington,Texas,insecondplaceat$13.50perunit)to$43.32aunitinLosAngeles.Somecitieschargehigherregistrationfeesforpropertieswithahistoryofviolations.FortWorthchargesaregistrationfeeof$200aunitinitssingle‐familyandduplexprogram,butonlyforunitswithahistoryofcodecomplaints(theregistrationprogramismandatoryonlyforunitswithahistoryofcodeviolations).

Whethertochargeaseparatefeeforinspections.Mostofthecitieswestudieddonotchargeanextrafeefortheinitialinspection.Bostonchargesanannualregistrationfeeof$15perunit($25forthefirstunit),andthenaseparateinspectionfeeof$50to$75perunit.WhileHoustondoesnot


17

chargearegistrationfee,itdoeschargeafeeof$10aunitformultifamilypropertyinspections(whilethefeeisforalltheunits,Houstononlyinspectsaportionoftheunitsateachproperty).Mostofthecitieswestudiedchargeanadditionalre‐inspectionfeeforunitsthatfailtheinitialinspection.Arlington,forexample,chargesa$150re‐inspectionfee.Plano’sfeeincreaseswitheachre‐inspection.

Whethertodifferentiatethefeesassessedbasedonthenumberofunits

attheproperty.Mostcitieswestudiedchargeaperunitfeeforregistrationandinspections.Raleighchargesafeeof$15to$50perproperty.Somecitieschargeahigherfeeforsingle‐familyorduplexunits,whileothercitieschargealowerperunitfeeforsmallerproperties.Boston,forexample,chargesaninspectionfeeof$50perunitfor1‐to3‐unitproperties,and$75perunitforpropertieswith4ormoreunits—butthefeeisappliedonlytotheunitsactuallyinspected.

Whethertochargeahigherfeeforthefirstunitandthenalowerfeefor

anyadditionalunitsontheproperty.Minneapolischargesa$69feeforthefirstunitandthen$19foreachadditionalunit.

Whethertosetacaponthetotalfeeforlargermultifamilycomplexes.Bostonsetsacapof$2,500perbuildingand$5,000perpropertyforitsinspectionfee.Philadelphiasetsacapof$20,000perpropertyforitsregistrationfee.

10. IncentivesforProperPropertyMaintenance

Severalcitiesofferincentiveprogramsforpropertyownerstomaintaintheirproperty.Asdiscussedearlier,theDallasPoliceDepartmenthasadopteditsGoldStarCertificationProgram,andHoustonhasasimilarBlueStarCertificationProgram.Propertyownerswhocompleteaspecialclassandpassanannualenvironmentaldesigninspectioncanreceiveaspecialcertificationfromthecity,whichcanthenbeusedinadvertisingtoprospectivetenants.Somecitiesallowpropertiesthatpasstheinitialinspectiontogothroughfutureinspectionslessfrequently.Lewisville,Texas,allowsunitsthathavenocomplaintsreportedandpassinspectionfortwoconsecutiveyearstoscheduleinspectionsonceeveryfiveyears.InDallas,therenewalregistrationfeeiswaivedforpropertiesintheNon‐OwnerOccupiedRentalProgramthathavenocodeviolations.InDallas’sMulti‐TenantRegistrationProgram,theinspectionisfreeunlessthepropertyfailsaninspection,thentheinspectionfeeis$30aunitand$50aunitforare‐inspection.Otherpotentiallandlordincentivesinclude:(1)freeadvertisingoncitywebsitesorlocalnewspapers;(2)freeorsubsidizedaccesstosafetyequipmentsuchassmokedetectors,carbonmonoxide‐detectors,securitylocks,andclosed‐circuitcameras;


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(3)reducedfeesforbuildingpermitstomakerepairs;(4)freetrainingcourses;(5)technicalassistanceforaddressingpropertymanagementissues;(6)freesecurityinspections;and(7)loansorgrantsforpropertyimprovements.

11. SanctionsCitiesmustalsoconsiderwhattypeoffeesandpenaltiestoimposeonpropertiesthatregisterlate,failtoregister,andfailaninspection.Ideally,aprogramwouldimposeafeeforregisteringlateandthenalargerfineforfailuretoregister,toincentivizelandlordparticipation.Afeeavoidsthecourtprocess.Somecitiestietheirprogramrequirementstoalicenseorcertificateofoccupancy:Ifapropertyisnotincompliancewiththeregistrationrequirementsorfailstocomeincompliancewithcode,thecertificateofoccupancycanberevokedandthepropertycannotbeleased.Minneapolis,Minnesotahasan“unlicensedpropertyfinder”onstaffwhoseeksoutunlicensedrentalproperties;thefineforfailingtoregisteris$250.41Manycitiesapplyveryhighpenaltiesforfailuretoregister,forlettingregistrationlapse,andforprovidingfalseinformation.Richardson,Texascharges$2,000foreachoftheseoffenses.FortWorthchargesafeeofupto$2,000aday.Dallaschargesafineof$200to$2000forsingle‐familyandduplexpropertiesthatfailtoregister,whilemultifamilypropertiesmustpay$20aunit.Insomeothercities,failuretoregisterincreasesthecostofregistrationaccordingtohowlatetheregistrationissubmitted.Mesquite,Texas,chargesa$100registrationfeeforeachunitthatisoccupiedpriortopassinganinspection.InMesquite,thefineandallcityliensmustbepaidbeforethecitywillissueproperregistrationdocuments,whichareintheformofanoccupancypermit.Forpropertieswithhighlevelsofcodeviolationsthatfailinspection,abestpracticeistorequirethepropertiestosubmitamitigationplantothecity,outlininghowtheownerplanstofixtheviolations.BrooklynCenter,Minnesotafollowsthisapproach.42InFortWorth,ifapropertyfailsaninspection,newtenantscannotmoveintothepropertyuntilallviolationsarerectified.AlsoinFortWorth,acomplexthatissoldwillnotreceiveanewcertificateofoccupancyandtenantswillnotbeallowedtomoveinunlessthecomplexpassesinspection.InIrving,cityofficialsmayorderevacuationofabuildingwithseriousviolations.Dallasrevokesacertificateofregistrationifthepropertyregistrantfailedtocomplywiththerentalregistrationordinance,othercityordinances,oranyotherstateorfederallawapplyingtotheoperationofamultifamilyproperty.Theregistrantfirstreceivesawarningandthenhas10daystocomplybeforethecertificateisrevoked.43AstandardpracticeofTexascitiesistocounteachdayapropertyisinviolationofcodeasaseparateoffenseforpurposesofdeterminingthefine.Thecostofcodefinesrangesfrom$10to$2000peroffense.Citiestypicallybasethefineonthetypeofviolationandchargemoreforviolationsrelatingtofiresafetyandhealthrisks.


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Dallasrequiresaminimummandatoryfineforviolations—thefinecannotbereduced—andalsoprovidesfortheescalationofpenaltiesforrepeatcodeviolations.Aspartofensuringthatapropertyisregistered,somecitiestiemunicipalutilityservicestothepresentationofvalidrentalregistrationdocuments.Ifapropertyisnotregistered,itcannotreceiveutilityservices.Forexample,inMesquite,forunitsthatpassinspections,thecityleavesagreeninspectiontag,whichmustbepresentedtotheutilitydepartmentinordertohavewaterserviceconnected.LewisvilleandSugarLandalsolinkutilityservicestomeetingregistrationrequirements.D.PolicyRecommendationsInlightofnationalbestpractices,consultationswithnationalexpertsandcityofficialsfromaroundthecountry,andempiricalresearchthathasmeasuredtheeffectivenessofdifferentapproaches,werecommendAustinadoptarentalregistrationordinancewiththefollowingfeatures:

1. Requiremandatoryregistrationandperiodicinspectionsofallmultifamilyproperties(3+units),alongwiththefollowingelements: Theinspectionsshouldcovertheexteriorandapercentageoftheinterior

units. Theordinanceshouldexemptpropertiesthatarelessthanfiveyearsoldor

aresubjecttoothergovernmentinspectionprograms. Theregistrationandinspectioncostsshouldbeself‐fundedthroughthe

assessmentoffees. Propertiesshouldbeplacedintiersinaccordancewithhowtheyperformon

theinitialinspectionandtheirhistoryofcodeviolationsandcriminalnuisances.Propertiesthatfailtheinitialinspectionorhaveahistoryofrepeatedcodeviolationsand/orhabitualcriminalactivityshouldbeinspectedmorefrequentlyandsubjecttohigherregistrationandre‐inspectionfees.ThemostegregiousviolatorsshouldalsoberequiredtosubmitamitigationplantotheCityoutlininghowtheownerwilladdressthecodeviolations.Incontrast,propertiesthatpasstheinspectionandhavenohistoryofcodeviolationsshouldbeinspectedlessfrequentlyandsubjecttolowerregistrationfees.Or,asalternative,consideradoptingRaleigh’sprobationaryrentaloccupancypermitmodel,wherepropertiesthatfailtobringpropertyintotimelycompliancemustpayafeeforatwo‐yearprobationarypermit.

2. Consideradoptingaprogramthatrequiresnon‐owneroccupiedsingle‐family

andduplexrentalpropertyownersuponeachchangeintenancyoratleastonceayeartocompleteaself‐inspectionandcertificationformstatingthattheunitisfreeofcertainmajorcodeviolationslistedonacityform.TheformshouldbesubmittedtotheCityandthetenants.Iftheunitshavehadmultiplecode


20

violationswithinthepastthreeyears,theyshouldbesubjecttotheCityofAustinregistrationandinspectionprogram.

3. Incorporateanapartmentcrimeenforcementprogramintotheregistrationprogram,modeledontheprogramsinDallasandHouston(butincludesmallermultifamilyproperties).Propertiesthatmeetacrimethresholdindexshouldundergoandpayafeeforaspecial“CrimePreventionthroughEnvironmentalDesign”inspection,andtheownersshouldberequiredtoenterintoremedialagreementstoreducecrimeonthepropertyandattendregularmeetingswiththepoliceandneighborhood.(Thisprogramisdiscussedmorefullyinaseparatesectionoftheupcomingreport).

4. ModeledonFortWorth’sordinance,requirealllandlordsintheregistrationprogramtocomplywithbasiccrimepreventionmeasuresontheirproperties,includingrequirementsforspecificlightingandsecuringofvacantunits.

5. Adoptaneducationalprogramforlandlordsandtenants.Offeranannualtrainingprogramforrentalpropertyownersonpropertymanagementandcrimeprevention,modeledonthenationalCrimeFreeRentalHousingProgram.Duringtheregistrationprocess,providelandlordswithapacketofinformationdetailingwhatisneededtopassaninspection,themaintenanceprocess,andcodepenalties.Maketheeducationalprogrammandatoryforownersofrentalpropertiesthatfailinspection,withpriorcodecitations,orwithhighcrimerates.

6. RequirealllandlordstoprovidetenantswithatenantrightshandbookcreatedbytheCityandtopostinformationprominentlyonthepropertyonhowtoreportcodeviolations.

7. Arentalregistrationordinanceshouldbecoupledwithstrongercodeenforcementpoliciesfornon‐owneroccupiedpropertiesthatenforcehealthandsafetycodeswhentheyareviolated,andthenremediatecodeviolationswhenownersfailtodoso.Inthisregards,theCityneedstomoreaggressivelyprosecuteitslawsagainstegregious;relymoreontheissuanceofcivilfinesratherthanthesporadicissuanceofcriminalcitations;andassesshigherpenaltiesagainstrepeatviolators.TheCityshouldpublishamonthlyreportonitswebsitelistingmultifamilypropertieswiththehighestnumberofnoticesofviolationsandcodecitations.WealsorecommendthattheCityAttorney’sOfficededicatemoreresourcestocodeenforcementandaddressingproblemproperties.WerecommendtheOfficecreateaspecialunitofattorneys,modeledontheDallasCityAttorney’sprogram,thatisdedicatedsolelytoenforcingcodeviolationsandotherproblempropertylaws.

8. TheCityalsoneedstocreateapropertyinformationsystemtoinformplanning,intervention,andresearcharoundproblemproperties,integratingdatafromtheCodeComplianceDepartment,thePoliceDepartment,


21

andothercitydepartments.ThepropertyinformationsystemshouldbesearchablebyarangeofcriteriaandallowtheCitytopublishregularreportsonproblempropertieswiththeworstcodeandcrimeissues.ThesystemshouldalsobeGIScompatibletoallowformappingofthedata.Thepublicshouldhavefreeaccesstobetrackthestatusofcodecomplaintsaswellasstatisticsandotherinformationonproblempropertiesintheirneighborhoods.


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Appendix1:StudiesonProactiveversusComplaint‐DrivenCodeEnforcementSystems

Asdiscussedabove,studieshavefoundthatcomplaint‐drivencodeenforcementsystemsresultinunder‐identificationofproblemproperties,includingmanyofthosewithseriousandlifethreateningcodeviolations.Thefollowingisasummaryofsomeofthesestudies:Seattle:InastudyexaminingSeattle’scomplaint‐drivecodeenforcementsystem,350randomly‐selectedapartmentbuildingswereselectedforinspections.Thestudyfoundthattheinspectionsinmorethanhalfofthepropertiesidentifiedcodeviolationsthattenantsandneighborshadneverreported.44Outofthebuildingswhereinspectionsidentifiedcodeviolations,78percentoftheviolationshadnotbeenreportedtotheCity,includingmanyofthemostseriousviolations.Thestudyconcludedthatareactive,reporting‐basedcodeenforcementsystemis“hamperedbymultiplefactorsincluding:generallackofknowledgeofhousingcodestandards,languagebarriers,andfearoflandlordretribution,”eveninspiteofstronglegalprotections.45TheCityisnowinthemiddleofimplementingamandatoryregistrationandinspectionprogram.SanFrancisco:Inanotherstudy,46volunteersfromtheChineseProgressiveAssociationsurveyed197tenantsin157differentapartmentbuildingsandsingle‐roomoccupancy(SRO)hotelsinSanFrancisco’sChinatowntoassesstheextentofcodeviolations.Inthesurvey,62percentoftenantssaidtheyhadmultiplecodeissuesintheirapartmentsbutonly28percentofthetenantshadcomplainedtotheirlandlordabouttheircodeissues,andonly11percentoftenantshadreportedtheviolationtoagovernmentagencyoracommunityorganization.47

Memphis:AstudyintheCityofMemphislikewisefoundlargeunder‐reportingofcodeviolations.48Thestudyfoundthatcomplaint‐basedcodeenforcementidentifiedonlyabout20percentofcodeviolationsinMemphisneighborhoods.Inoneparticularlow‐incomeneighborhood,theBinghamptoncommunity,thestudyfoundthat19propertiesinthecommunitywereinpoorenoughconditionthattheyneededtobecondemned.Yet,thesepropertieswerenotintheCity’ssystemandhadnotcometotheattentionofcodeofficials.Avisualsurveyalsofoundthatatleasthalfofthe35occupiedmultifamilyproperties(1,200totalunits)intheBinghamptoncommunityofMemphishadseriouscodeviolations,includingthefollowingissues: 20%propertieswithoutintactandsecuredoorsordoorframes; 25%propertieswithunsecuredwindows,mostofwhichwerebrokenout;

and 12%withholesinthewalls.

Yetthecityhadrecordedcodeviolationsforonly8oftheunits.49


23

TheauthoroftheMemphisstudyconcludedthatacomplaint‐basedsystemisabarrierindeteriorating,poorerneighborhoodsandabarriertotheearlyidentificationofproblemproperties,beforetheyrisetothelevelofapublicsafetyhazard.Asfurthersummarizedinthestudy:“Giventhatcitizen‐drivencomplaintstendtobeaboutenvironmentalorvehiclenuisances,itappearsthatformanyneighborhoodsdeteriorationofthehousingstockissimplytakenforgrantedandnotacauseofaction.Theseneighborhoodstendtobelow‐income,asituationwhichformanyreasonscanbeassociatedwithloweredexpectations.”50Asheville:InAsheville,NorthCarolina,whichinspectsbothrentalandowner‐occupiedunits,thenumberofresidentialfiresdecreasedby50percentduringtheperiodwhenthecityrequiredproactiveinspectionsofallunits.Afterthecityswitchedbacktoacomplaint‐basedcodeprogram,residentialfiresroseby122percent.51Thecityalsosawadecreaseinhousingcodecomplaintsfrom227to60duringthetimethecityoperatedamandatoryinspectionprogramforallproperties;thecomplaintsroseto189in2007afterAshevilleswitchedtothecomplaint‐basedprogram.


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Appendix2:ComparisonofRentalRegistrationandInspectionOrdinancesCity Properties

CoveredInspections Fees Other

Arlington,TX52 Oneprogramforallmfpropsof3+units;aseparateprogramforallnon‐owneroccupiedduplexes.

Annualinspections.Duplexunitsthatpassexteriorinspectionarenotinspectedinternally.

Annualregistration.Registrationfeeof$13.80/unit;onefreere‐inspectionthen$150feeforre‐inspectionsonthesameviolation.Extendedstayhotelsmustpay$86.04/room.

Separateprogramforduplexes.InspectionscorespostedonInternet.

Boston Allrentalunits Inspectionsconductedon5‐yearcycleexceptforproblemproperties,whichhaveannualinspections.

Annualregistration.Initialregistrationfee:$25/unitwith$15annualrenewalfee.Feecappedat$2,500/buildingand$5,000/complex.Inspectionfee:Feebasedonunitsactuallyinspected;$50/unitforpropswith1‐3units,$75/unitfor4+units.

Newprogramadoptedin2013.Bostonoffersanalternative5‐yearinspectionprogramforpropertiesthatapplyandmeetcertainrequirements.

DallasNon‐OwnerOccupiedRentalProgram

Allnon‐owner‐occupiedsingle‐familyandduplexproperties.

Inspectionsrequiredonlyifcomplaintsreceived(vs.registrationrequiredregardlessofcomplaints).

Annualregistration.$25/unitinitialregistrationfee;freerenewalfeeifnocodeviolations.Inspectionfeeof$50/unitforstructuralcodeissues(butinspectiononlyifcomplaints).

Lessonslearned:Havingahardtimeidentifyingandgettingthesesmallerpropertiesintheregistrationsystem.Needtohaveaprocessinplaceupfronttoidentifytheseunits,suchasworkingwithwaterutilitydepartment.


25

City PropertiesCovered

Inspections Fees Other

DallasMulti‐TenantRegistration

Multifamilyof3ormoreunitsandatleast5yrsold.

Onceevery3years. Annualregistration.$10/unitregistrationfee.Inspectionisfreeunlessfailthen$20/unitxtotalunits(non‐structural),$30/unitxtotalunits(structural)and$50re‐inspectionforeachunit/buildinginspected.

Mustusecrimepreventionleaseagreementandattend3neighborhoodcrimewatchmeetingsintheyearandanannualSAFEcomplexsymposium.Citycollects$2.3mannuallyinmulti‐tenantregistrationfeesand$211,000inre‐inspectionfees.Thereareapproximately220,000unitsintheprogramand2,596properties.Lessonslearned:Needaprocessatthebackendtocollectunpaidinspectionfees.Dallasdoesnothaveaprocess,whichhasbeenanissueincollectingre‐inspectionfees.

FortWorth53

Multifamilypropertieswith3ormorerentalunits.One‐andtwo‐familypropertiesmustregisteronlyifcodeviolations.

Inspectionsatleastonceeverytwoyears.Atchangeofownership,mfpropertiesmustbeinspectedbeforereceivinganewcertificateofoccupancy.Policedepartmentalsoinspectsallmfcomplexesof8+unitsforfreeviaCrimePreventionthroughEnvironmentalDesigninspection.

Multifamilyprogram:Annualregistrationfeeof$25forfirstunit;$10foreachadditionalunit.Single‐family/duplexprogram:$200registrationfeeforeachunitwithrecordofcodeviolations.Ifpropertyfailsinspection,$25/unitforre‐inspection.

Landlordsrequiredtoconductannualinspectionwithtenantsandtogivetenantsthe“FortWorthRentalHandbook”outliningtheirrights.


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HoustonBlueStarMulti‐HousingProgram

Anymultifamilypropertyiseligible—voluntaryprogram.

Annualinspectionsforapartmentsthatelecttobeinprogram;policeconductacrimepreventionenvironmentaldesignanalysisandlookatcrimereports.

Free. 100propertiesintheprogram;Citylistsonwebsite.Dallashasaverysimilar“GoldStar”programformultifamilycomplexeswith10ormoreunits.

HoustonApartmentCrimeEnforcementProgram

Multifamilyof10ormoreunits.

Afterrunningcomputerformulaevery2years,policeinspectpropertiesthatareclassifiedas“remedialproperties”aftertriggeringa“crimeriskthreshold”

Propertiesregisterviamultifamilyregistrationprogramincode(seeabove).$400inspectionfee.

Policeconducta“crimepreventionthroughenvironmentdesign”(CPTED)inspectionandenterintoremedialagreementwithowner.OwnermustattendPIP(positiveinteractionmeetings)eachmonthwithpoliceandthelocalcommunity,andalsoconductcrimepreventionmeetingswithtenantsthatpoliceattend.Dallaspolicedepartmentrunsaverysimilarprogram.54

HoustonMultifamilyRegistration

Multifamilyof3ormoreunits.

Inspectedonceevery5years—onlyexterior.Inspects100‐120properties/monthwith5,000totalmfpropertiesinpipeline.

AnnualRegistration.Noregistrationfee.Inspectionfeeof$10/unit.

Compiledlistofpropertiesfromappraisaldistrictandcitypermits.2inspectorsvisiteachproperty:electricalandstructuralinspector.

LosAngeles(SystematicCodeEnforcementProgram)55

Allrentalpropertieswith2ormoreoccupiedunits.

Onceeverythreeyears,butworstbuildingsinspectedmorefrequently.

Annualregistration.Registrationfee:$43.32/unit.Additionalfeesmaybechargediffailre‐inspection.

WontheFannieMaeInnovationsinGovernmentAwardinAffordableHousingin2005.


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Minneapolis Allnon‐owneroccupiedrentalunits;newconstructionexempted.

Noregularinspections.Inspectionsrequiredifcomplaints,propertychangesownershiporconvertedtorental,ornolicensefor12months.

Annualregistration.Registrationfee:$69forfirstrentalunit;$19foreachadditionalunitintheproperty.Noinspectionfee.

Ownersrequiredtohanga311posterincommonareaswithinformationfortenantsonreportingcodeviolations.

PhiladelphiaRentalInspectionLicenseProgram56

Allrentalpropertiesexceptowner‐occupiedduplexes.

Inspectionsnotdoneunlesstenantrequeststhem.

Annualregistration.Registrationfee:$50/unit(maxfee:$20,000)

Alsohasavacantpropertyregistrationrequirementwitha$150fee/property.

Plano57 Multifamilypropertieswith5ormoreunitsolderthan5years(originallyproperties5‐10yearsoldalsoexempted).

Annualinspections. Annualregistration.Registrationfee:$10/unitNoinitialinspectionfeeandfirstre‐inspectionisfee.$150forthesecondre‐inspection;$300forthirdre‐inspection.

Raleigh,NC58 Allrentalproperties. Inspectionsonlyifproblemsreported.

Annualregistration.Registrationfee:$15/propertyfor3orlessunits$25/propertyfor4‐19units$50/propertyfor20+unitsAdditionalfeeof$30/unitatinitialregistration.Noinspectionfee.

Mustobtainaprobationaryrentaloccupancypermitiffailtobringpropertyintotimelycompliance.Mustpay$500fora2‐yearpermitandattendCity‐approvedpropertymanagementcourseandremainincompliancewithcitycodes.


28



Sacramento,CA Allnon‐owneroccupiedrentalunits;rentalunitslessthan5yearsoldmaybeexempt.

Initialmandatoryinspection.Ifpass,thenplacedinSelf‐InspectionCertificationProgramwherepropertyownerinspectsthepropertyonceayearandatchangeintenancy,usingcitychecklist.RandominspectionsbyCityofatleast10%ofself‐certificationunits.

Annualregistration.Registrationfee:$28/unit.Initialinspectionandfirst30‐dayre‐inspectionarefree.$127feeforfollow‐upinspections.

LandlordmustprovidetenantswithaResidentsRightsformcreatedbylocallandlord‐tenantnonprofitagency.

Seattle59 Allrentalproperties;programbeingrolledoutinphasesbasedon#ofunits.

Eachpropertyinspectedatleastonceevery10years.10%ofallrentalpropertiesselectedrandomlyforinspectioneachyear.Unitswithtwoormorecodeviolationsinspectedinfirstyearofprogram.

Registrationmustberenewedevery5years.Feestructureunderdevelopment.

NewprogrampassedunanimouslybytheSeattleCityCouncilin2012.


29

Appendix3:ExamplesofExtremelyDangerousand/orSubstandardCodeConditionsinAustin

Stairwaybeinghelduponlybynailsandpullingawayfromwalkway.

Handrailnolongeranchoredadequatelyandpullingawayfromstructure.

Sagginghorizontalmemberbeamandbowingsupportpostnotstrongenoughtocarryimposedload.

Rottingstairwaymissingtreads,handrails,andguards.


30

Postsupportingroofisinadequatewithriskofroofcollapsing.

Secondfloorwalkwaybecomingdetachedfromsupportpostsandatriskofcollapsing.

Moldoninteriorwallsandfloors. Missingtiles,rottingwall,mildew,andmold.


31

EndNotes1ALANMALLACH,MEETINGTHECHALLENGEOFDISTRESSEDPROPERTYINVESTMENTSINAMERICA’SNEIGHBORHOODS(LocalInitiativesSupportCorporation),at46,availableathttp://www.stablecommunities.org/sites/all/files/library/1228/distressed‐property‐investors‐mallach.pdf.

2See,e.g.,GuadalupeLuna,Immigrants,CopsandSlumlordsintheMidwest,29SOUTHERNILLINOISUNIV.L.J.61,89(2004)(“Tenants’fearsofretaliationfromlandlords,coupledwiththelackofalternativehousingeffectivelystiflescomplaintsoftenantswhoarewearyofpossibleeviction.”).

3SILVANAHACKETT,ETAL,RENTALLICENSINGTOACHIEVECOMPLIANCE(CenterforUrbanandRegionalAffairs,Univ.ofMinn.,2012),availableathttp://www.ci.roseville.mn.us/DocumentCenter/View/11028.

4CAROLHICKEY,ENSURINGHOUSINGQUALITY:PROACTIVEMINIMUMHOUSINGCODEINSPECTIONSOFRENTALPROPERTIESINNORTHCAROLINACITIES,PapersubmittedforMastersofPublicAdmin.atUNCChapelHill(Apr.8,2008),availableathttp://ghc.illkd.com/wp‐content/uploads/2008/04/enhancinghousingquality.pdf.

5Id.

6U.S.CENSUSBUREAU,2011AMERICANCOMMUNITYSURVEY1‐YEARESTIMATES,SELECTEDHOUSINGCHARACTERISTICS.

7AndyAlford,City’saffordablehousingsqueezemeanscodeviolationsareoftenignored,AUSTINAMERICAN‐STATESMAN,atA1(Dec.16,2002).

8Id.

9IsadoraVail,Apartmentfixesorderedafter2diefromgaspoisoning,AUSTINAMERICAN‐STATESMAN(Feb.9,2011),availableathttp://www.statesman.com/news/news/local/apartment‐fixes‐ordered‐after‐2‐die‐from‐gas‐poiso/nRXRj/

10AustinCityCouncil,AgendaItemNo.100,ResolutionRelatingtotheDevelopmentofaResidentialRentalRegistrationProgram(July23,2009).

11AustinCityCouncilRes.No.20130606‐050(June6,2013).

12AustinCityCouncilRes.No.20130606‐049(June6,2013).

13AUSTINBOARDOFREALTORS,PUBLICPOLICYPOSITIONS,availableathttp://www.abor.com/gov_affairs/ABoRGovPolicy.cfm.

14CityofAustinOrd.No.20120802‐122;CITYOFAUSTINSHORT‐TERMRENTALLICENSINGWEBSITE,http://www.austintexas.gov/str.

15SeeAppendix1foranoverviewofthesestudies’findings.

16MONTGOMERYCOUNTYTENANTSWORKGROUPREPORT(March2010),at12,availableathttp://www6.montgomerycountymd.gov/Content/EXEC/TWG/pdf/twg_report_3‐2010.pdf.AreportonRoseville,Minnesota,alsoidentifiedaconcernthatmanytenantsareafraidofretaliationfromlandlordsandsodonotmakecomplaintsabouttheirhousingconditions.Accordingtothereport:“Wheninterviewed,[code]inspectorsfeltthatthisisaparticularlysalientissueinRosevillebecauseoftherelativelylargepopulationofrefugees


32

residinginpropertiesthatareknowntohavetheworstpropertymaintenanceissues.”SILVANAHACKETT,ETAL,RENTALLICENSINGTOACHIEVECOMPLIANCE,CenterforUrbanandRegionalAffairs,Univ.ofMinn.(2012),availableathttp://www.ci.roseville.mn.us/DocumentCenter/View/11028.

17RESEARCHANDPLANNINGDIVISION,TRAVISCOUNTYHEALTHANDHUMANSERVICES&VETERANSERVICE,HOUSING:SECTIONVIOFTHE2006‐2007TRAVISCOUNTYIMMIGRANTASSESSMENT,at69‐70,availableathttp://www.co.travis.tx.us/health_human_services/research_planning/pdfs/immigrant_assessment_report_2007/06_Housing.pdf.

18Id.

19Comment,ProtectingtheGood‐FaithTenant:EnforcingRetaliatoryEvictionLawsbyBroadeningtheResidentialTenant’sOptionsinSummaryEvictionCourts,63OklahomaL.R.101,106(2010).

20PHYLLISBETTS,BESTPRACTICENUMBERTEN:BROKENWINDOWS—STRATEGIESTOSTRENGTHENHOUSINGCODEENFORCEMENTANDAPPROACHESTOCOMMUNITY‐BASEDCRIMEPREVENTIONINMEMPHIS(MemphisShelbyCrimeCommission,Apr.2001).

21MattStiles,Houstonhiresfirmtoinvestigatefatalstairwaycollapse,HOUSTONCHRON.(July24,2008),http://www.chron.com/news/houston‐texas/article/Houston‐hires‐firm‐to‐investigate‐fatal‐stairway‐1596785.php.

22PHYLLISBETTS,BESTPRACTICENUMBERTEN:BROKENWINDOWS—STRATEGIESTOSTRENGTHENHOUSINGCODEENFORCEMENTANDAPPROACHESTOCOMMUNITY‐BASEDCRIMEPREVENTIONINMEMPHIS(MemphisShelbyCrimeCommission,Apr.2001).

23CITYOFBROOKLYNCENTER,MINNESOTA,WEBSITEFORRENTALLICENSES,http://www.cityofbrooklyncenter.org/DocumentCenter/Home/View/277.

24ALANMALLACH,MEETINGTHECHALLENGEOFDISTRESSEDPROPERTYINVESTMENTSINAMERICA’SNEIGHBORHOODS(LocalInitiativesSupportCorporation),at50,availableathttp://www.stablecommunities.org/sites/all/files/library/1228/distressed‐property‐investors‐mallach.pdf.

25SeeInternationalCrimeFreeAssociationwebpageonCrimeFreeRentalHousing,athttp://www.crime‐free‐association.org/rental_housing.htm.

26SeeU.S.Dept.ofJustice,BureauofJusticeAsst.,KEEPINGILLEGALACTIVITYOUTOFRENTALPROPERTY:APOLICEGUIDEFORESTABLISHINGLANDLORDTRAININGPROGRAMS,availableathttps://www.ncjrs.gov/pdffiles1/bja/148656.pdf.

27Id.at4.Portland’slandlordtrainingprogrammanualisavailableathttp://www.portlandonline.com/bds/index.cfm?a=96790&c=38169.

28CityofFortWorth,Ord.No.19998‐12‐2011,availableathttp://fortworthtexas.gov/uploadedFiles/City_Secretary/City_Council/Official_Documents/2011_Ordinances/19998‐12‐2011.pdf.


30ThisestimateisfromtheAustinCodeComplianceDepartmentandincludessalaryandbenefitsaswellasworkequipment.


33

31CITYOFAUSTIN,DEMOGRAPHICPROFILE,availableathttp://www.austintexas.gov/sites/default/files/files/Planning/Demographics/city_of_austin_profile_2010.pdf.

32Wedevelopedtheestimatesfortotalnumberofmultifamily(mf)andnon‐multifamilyrentalunitsforAustinusinginformationfromtheAmericanCommunitySurveyandCityofAustinCodeComplianceDepartment,whichutilizeddatafromtheTravisCountyAppraisalDistrictandAustinEnergydata.TCADbreaksdownthenumberofmfpropertiesbyrangeofunits(3units,4units,5‐25units,26‐49units,50‐100units,100+units).WemultipliedthetotalnumberofpropertiesineachcategoryfromTCADbytherangeofunitsinthatcategoryandcameupwithatotalmfunitrangeof83,104to173,032.Wepickedanumberclosetothemiddleofthisrange,130,000,whichisclosesttotheestimateof132,514occupiedmultifamilyrentalunitsfromtheU.S.CensusBureau’s2009‐11AmericanCommunitySurvey(ACS).Todevelopourestimateofthenon‐mfrentalunits(1‐2units),wesubtracted130,000(mfunitsestimate)fromtheU.S.Census’sestimateof180,000totalrentalunitsinAustin,foratotalof50,000non‐mfrentalunits(1‐2units).ThisissimilartotheestimateintheACSsurvey,whichestimates47,749singlefamilyandduplexrentalunits.Intermsoftheestimatingthenumberofnon‐mfrentalproperties(1‐2units):WetooktheACSestimateofduplexunitsanddividedthatby2andthenaddedthisnumbertothe35,210singlefamilyproperties,foratotalof41,500non‐mfrentalproperties.Sincewewrotetheinitialdraftofthisreport,theAustinCodeComplianceDepartmenthasdevelopedalowerestimateofmultifamilyrentalpropertiesinAustin:3,044.

33CITYOFSEATTLE,POWERPOINTPRESENTATIONOFNOTESFROMRENTALREGISTRATIONANDINSPECTIONORDINANCE:FEEOPTIONSSTAKEHOLDERMEETING(Mar.4,2013),availableathttp://ghc.illkd.com/wp‐content/uploads/2008/04/enhancinghousingquality.pdf.

34U.S.CENSUSBUREAU,2009‐2011AMERICANCOMMUNITYSURVEY,OCCUPIEDHOUSINGUNITSINAUSTIN.

35DataobtainedfromtheCityofAustinCodeComplianceDepartment,basedondatafromtheTravisCountyAppraisalDistrict.

36PhonecallwithGeoffTallent,ProgramManager,RentalRegistrationProgram,CityofSeattle(June13,2013).

37CITYOFDALLASCODECOMPLIANCEDEPARTMENT,FY09/10BUDGETOVERVIEW,PRESENTEDTOTHEDALLASCITYCOUNCILFINANCEANDAUDITCOMMITTEE(Apr.26,2010),availableathttp://dallascityhall.com/committee_briefings/briefings0410/BFA_CodeFY09‐10_%20BudgetOverview_042610.pdf.

38CITYOFSEATTLE,POWERPOINTPRESENTATIONOFNOTESFROMRENTALREGISTRATIONANDINSPECTIONORDINANCE:FEEOPTIONSSTAKEHOLDERMEETING(Mar.4,2013),availableathttp://ghc.illkd.com/wp‐content/uploads/2008/04/enhancinghousingquality.pdf.

39InformationfromtheAustinCodeEnforcementDepartment,basedonapproximationsfromtheTravisCountyAppraisalDistrict.

40Weassumedveryconservativelythateachinspectorwouldcompleteonepropertyinspectionadayforanaverageof4daysaweekand48weekseachyear.

41ALANMALLACH,MEETINGTHECHALLENGEOFDISTRESSEDPROPERTYINVESTMENTSINAMERICA’SNEIGHBORHOODS(LocalInitiativesSupportCorporation),at51,availableat


34

http://www.stablecommunities.org/sites/all/files/library/1228/distressed‐property‐investors‐mallach.pdf.


43DallasCityCode§27‐34(2013).

44JANEE.PROTHMAN,HOUSING:HEALTHANDCODEENFORCEMENT,degreeprojectforMastersofPublicAdministrationatUniv.ofWash.(2010)(citingMCLERRENANDPOWERS,REPORTONTHEHOUSINGCODEENFORCEMENTDEMONSTRATIONPROGRAM(HousingZoningEnforcementDivision,Seattle,Wash,1989)).

45Id.

46CHINESEPROGRESSIVEASSOCIATION,SUBSTANDARDHOUSINGCONDITIONSINSANFRANCISCOCHINATOWN:HEALTHIMPACTSONLOW‐INCOMEIMMIGRANTTENANTS(Aug.2005),availableathttp://www.cpasf.org/sites/default/files/HousingHealthRptFINAL.pdf

47Id.

48PHYLLISBETTS,BESTPRACTICENUMBERTEN:BROKENWINDOWS—STRATEGIESTOSTRENGTHENHOUSINGCODEENFORCEMENTANDAPPROACHESTOCOMMUNITY‐BASEDCRIMEPREVENTIONINMEMPHIS(MemphisShelbyCrimeCommission,Apr.2001)(findingthatwhilemultifamilyunitsaccountforonethirdofallhousingunitsintheBinghamtoncommunity,only10%ofthecodeviolationsinthecitysystemwerefrommultifamilyunits,despitevisualsurveyshowingthatatleasthalfofthemultifamilyunitshadsubstantialcodeviolations).

49Id.

50Id.

51CAROLHICKEY,ENSURINGHOUSINGQUALITY:PROACTIVEMINIMUMHOUSINGCODEINSPECTIONSOFRENTALPROPERTIESINNORTHCAROLINACITIES,PapersubmittedforMastersofPublicAdmin.atUNCChapelHill(Apr.8,2008).

52CITYOFARLINGTON,CODECOMPLIANCEWEBSITE,athttp://arlingtontx.gov/codecompliance/apartments.html.

53CITYOFFORTWORTH,RENTALPROPERTYWEBSITE,athttp://fortworthtexas.gov/rentalproperty/

54SeeDallasCityCode,§§27‐45,etal.

55InformationonLosAngeles’sordinanceisavailableathttp://lahd.lacity.org/lahdinternet/CEUSCEP/tabid/395/language/en‐US/Default.aspx.

56CITYOFPHILADELPHIA,HOUSINGINSPECTIONLICENSEWEBSITEANDLICENSEAPPLICATION,athttps://business.phila.gov/Pages/HousingRentalLicense.aspx;https://business.phila.gov/Documents/Licenses/housing_rental.pdf.

57CITYOFPLANO,RENTALREGISTRATION&INSPECTIONPROGRAMWEBSITE,athttp://www.plano.gov/index.aspx?NID=342

58CITYOFRALEIGH,RENTALDWELLINGREGISTRATIONWEBSITE,athttp://www.raleighnc.gov/home/content/Inspections/Articles/RentalDwellingRegistra.html


35

59CITYOFSEATTLE,RENTALREGISTRATION&INSPECTIONWEBSITE,athttp://www.seattle.gov/dpd/codesrules/changestocode/rentalregistrationprogram/whatwhy/.