HomeMy WebLinkAboutCommittee of the Whole - 11 Feb 2019 - Agenda - Pdf-�Renton
AGENDA
Committee of the Whole Meeting
3:00 PM - Monday, February 11, 2019
Conferencing Center, 7th Floor, City Hall — 1055 S. Grady Way
1. Council Policy 800-12
2. Residential Rental Registration and Inspection Program
a) Memo
b) Draft Ordinance
AGENDA ITEM #2. a)
CITY ATTORNEY
M E M O R A N D UM
L�
DATE: February 7, 2019
TO: Jason A. Seth, City Clerk
FROM: Shane Moloney, City Attorney
SUBJECT: Residential Rental Registration and Inspection Program
Ordinance
I have enclosed the original of the above -mentioned legislation, which is approved as to
legal form.
/s/ Sk4A' & Mo-1,o"
SM: scr
cc: Chip Vincent
Enc.
AGENDA ITEM #2. b)
CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5913
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, ADDING SECTION 4-5-
125 TO THE RENTON MUNICIPAL CODE TO CREATE A RESIDENTIAL RENTAL
REGISTRATION AND INSPECTION PROGRAM, AMENDING SUBSECTIONS 5-5-3.A
AND 5-5-3.113 OF THE RENTON MUNICIPAL CODE TO CREATE EXEMPTIONS FROM
GENERAL BUSINESS LICENSING REGISTRATION AND FEE REQUIREMENTS, AND
PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, some rental housing units with substandard conditions exist within the City of
Renton; and
WHEREAS, improving residential housing and encouraging all rental housing in the City to
meet minimum life safety and fire safety standards are furthered by creating a program to
promote code compliance; and
WHEREAS, the residential rental registration and inspection program set forth below is
not intended to establish substantive requirements beyond the requirements that apply to
existing structures under code provisions that are already in effect; and
WHEREAS, the City collaborated with representatives of landlords and tenant advocates
to design a rental registration and inspection program that protects the interests of tenants and
landlords; and
WHEREAS, a subset of residential property owners asserted that requiring residential
rental property owners to pay for a general business license registration fee would constitute
an unlawful tax; and
WHEREAS, the City believes imposition of its existing general business license
registration fee on all those engaging in the business of residential rental property management
would be lawful; however, to avoid unnecessary litigation or other opposition to this important
1
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
regulatory program, the City Council has decided, at this point, to exempt residential rental
property owners from paying the general business license registration fee and subsidize the
costs of the City's rental registration and inspection program until additional information about
the annual costs of the new program is generated; and
WHEREAS, after such additional information is generated, the City Council may
reevaluate the general business license registration fee exemption and intends to assess
whether an administrative regulatory fee should be imposed to cover the City's costs of the
rental registration and inspection program; and
WHEREAS, creating a residential rental registration and inspection program furthers the
interest of the general public and is not undertaken for the benefit of any particular or
circumscribed class of persons; and
WHEREAS, this matter was duly referred to the Planning Commission for investigation
and study, and the matter was considered by the Planning Commission; and
WHEREAS, pursuant to RCW 36.70A.106, on November 19, 2018, the City notified the
State of Washington of its intent to adopt amendments to its development regulations and
requested expedited review; and
WHEREAS, the Planning Commission held a public hearing on June 15, 2016, considered
all relevant matters, and heard all parties in support or opposition, and subsequently forwarded
a recommendation to the City Council; and
WHEREAS, the City Council considered all relevant matters, and heard all parties in
support or opposition;
2
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
ORDAIN AS FOLLOWS:
SECTION I. All portions of the Renton Municipal Code in this ordinance not shown in
strikethrough and underline edits remain in effect and unchanged.
SECTION II. Chapter 4-5 of the Renton Municipal Code is amended to add a new
section 4-5-125, "Residential Rental Registration and Inspection Program," to read as follows:
4-5-125 RESIDENTIAL RENTAL REGISTRATION AND INSPECTION PROGRAM:
A. PURPOSE:
The City Council finds that rental housing is a valuable community asset,
providing homes for all income levels. The City recognizes that quality rental
housing is a partnership among owners, tenants, and the City. Additionally, the
City Council finds that there exists rental housing in the City that is below
minimum building standards and could violate RCW 59.18.060 of the Landlord -
Tenant Act. As a result, to further the public health, safety, and welfare of its
citizens and the maintenance of quality rental housing in the City, the City
establishes a program to prevent and correct conditions in residential rental units
that are likely to adversely affect the health, safety, and welfare of the public. It is
a purpose of this section to encourage rental housing within the City to be actively
operated and maintained in compliance with Chapter 59.18 RCW, the Residential
Landlord -Tenant Act. The City Council further declares that this program is for the
benefit of the public in general and not for the benefit of any particular or
circumscribed class of persons.
3
ORDINANCE NO. 5913
AGENDA ITEM #2. b)
B. APPLICABILITY:
This section applies to rental dwelling units with the following exceptions:
1. Room rental within a rental dwelling unit that is otherwise occupied by
the landlord;
2. Accommodations for transient guests for which lodging tax is
applicable (hotels, motels, inns, short-term rentals, etc.);
3. Hospitals, hospice and community -care facilities, retirement or nursing
homes, extended care facilities, and other similar uses subject to state licensing
requirements;
4. Rental dwelling units that a government agency or authority owns,
operates, or manages, or that are specifically exempted from municipal regulation
by state or federal law or administrative regulation. Such exemption applies until
such ownership, operation, management, or specific exemption is discontinued;
and
5. Emergency or temporary shelters and transitional housing.
C. DEFINITIONS:
In construing the provisions of RMC 4-5-125, the following definitions shall be
applied:
1. "Administrator" means the Administrator of Community and Economic
Development or designee as applicable and any other department administrator
authorized by the Mayor to enforce this section, or their designee, which may
21
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
include, but is not limited to, code compliance inspector, building official, or other
designated City official.
2. "Certificate of Inspection" means a certificate made in accordance with
the requirements of RCW 9A.72.085 by a qualified inspector on forms provided by
or acceptable to the City that states that the landlord of the rental dwelling unit(s)
at issue has not failed to fulfill any obligation imposed under RCW 59.18.060 of
the Landlord -Tenant Act.
3. "Dwelling unit" means any structure or part of a structure which is used
as a residence or sleeping place by one (1) or more persons, including but not
limited to single-family residences, a room, rooming units, units of multiplexes,
condominiums, apartment buildings, mobile homes, and other similar residential
structures.
4. "Landlord" means an owner, lessor, or sublessor of a rental dwelling
unit or the property on which a rental dwelling unit is located and, in addition,
means any person designated as representative of the landlord including property
managers.
5. "Landlord -Tenant Act" means the Residential Landlord -Tenant Act set
forth in Chapter 59.18 RCW, as currently enacted and hereinafter amended.
6. "Person" means an individual, group of individuals, corporation,
government, governmental agency, business trust, estate, trust, partnership,
association, two (2) or more persons having a joint or common interest, or any
other legal or commercial entity.
5
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
7. "Qualified inspector" means a United States Department of Housing
and Urban Development certified inspector, a Washington State licensed home
inspector, an American Society of Home Inspectors certified inspector, a private
inspector certified by the National Association of Housing and Redevelopment
Officials, the American Association of Code Enforcement, International Code
Council certified inspector, a Washington licensed structural engineer, or a
Washington licensed architect, or other comparable professional as approved by
the Administrator. A landlord is not eligible to act as a qualified inspector for the
landlord's rental property.
8. "RCW" means Revised Code of Washington.
9. "RCW 59.18.060 of the Landlord -Tenant Act" means, for the purposes
of RMC 4-5-125, RCW 59.18.060(1) through (10), as currently enacted and
hereinafter amended.
10. "Rental dwelling unit" means a dwelling unit that is rented or held out
for rental.
11. "Rental property" means all rental dwelling units on a parcel or on
contiguous parcels of land managed by the same landlord as a single rental
complex.
12. "Residential Rental Checklist" means a statement, declaration,
verification, or certificate made in accordance with the forms provided by or
acceptable to the City that each rental dwelling unit at issue complies with
0
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
RCW 59.18.060 of the Landlord -Tenant Act and does not present conditions that
endanger or impair health or safety.
13. "Tenant" is any person who is entitled to occupy a rental dwelling unit
primarily for dwelling purposes with or without a written rental agreement.
D. REQUIREMENTS:
1. Annual Registration, Declaration of Compliance, and Certificate of
Inspection: On or before January 31 of each year, at least one landlord of a rental
dwelling unit shall submit the following rental registration information by means
directed by the Administrator:
a. The landlord's name and contact information;
b. The name and contact information of any person designated by the
landlord as an alternate contact or as a representative of the landlord;
c. If desired by landlord, an email or mailing address or other method
of contact as approved by the Renton Police Department for participation in the
landlord notification program for notice of police activity on the rental property;
d. A Residential Rental Checklist that expressly identifies all of the
landlord's rental dwelling units; and
e. A Certificate of Inspection if such certificate was required to be
completed by RMC 4-5-125.F within the preceding twelve (12) months.
2. Effect of Multiple Landlords: If a single rental dwelling unit has more
than one landlord, the following applies:
7
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
a. Only one landlord is required to meet the requirements of RMC 4-
5-125.D.1; and
b. Regardless of which landlord registers the dwelling unit, all
landlords of the dwelling unit are responsible for compliance with this Section,
including ensuring proper registration by at least one landlord.
3. Payment of Registration Fee: To the extent applicable, payment of any
registration fees required within the City of Renton Fee Schedule shall be paid
annually by January 31.
E. VIOLATIONS:
1. Each landlord of a rental dwelling unit is responsible for the following
violations:
a. Failure to comply with a requirement of RMC 4-5-125, of
RCW 59.18.060 of the Landlord -Tenant Act, or both;
b. Any violation of Chapter 4-5 RMC, where such violation occurs on
or pertains to property occupied by one (1) or more rental dwelling units, and RMC
4-5-125.13 does not except such rental dwelling units from RMC 4-5-125;
c. Any violation of any other City, county, state, or federal law or
regulation relating to health or safety, where such violation occurs on or pertains
to property occupied by one (1) or more rental dwelling units, and RMC 4-5-125.13
does not except such rental dwelling units from RMC 4-5-125.
0
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
2. Except as otherwise provided in RMC 4-5-125, the enforcement and
penalty provisions of Chapter 1-3 RMC apply to violations and potential violations
of RMC 4-5-125
F. CERTIFICATE OF INSPECTION:
A landlord shall have a Certificate of Inspection completed and submitted to
the Administrator under the following circumstances:
1. When a tenant requests an inspection, and the landlord appears to
have failed to fulfill an obligation imposed under RCW 59.18.060 of the Landlord -
Tenant Act;
125; or
2. When the City discovers or is made aware of a violation of RMC 4-5-
3. If an order to cure a violation of RMC 4-5-125 has issued.
G. SALE OF PROPERTY — NEW OWNER COMPLIANCE:
Where conditions exist that are in violation of RCW 59.18.060 of the Landlord -
Tenant Act or RMC 4-5-125 or both, and there is a change of ownership or control,
the new landlord will be subject to penalties and enforcement for all ongoing
violations and registration requirements.
H. PENALTIES AND ENFORCEMENT:
1. A violation of this section, of RCW 59.18.060 of the Landlord -Tenant
Act, or of both is subject to penalties and enforcement under Chapter 1-3 RMC.
0
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
2. False Reporting: Any person who knowingly submits or assists in the
submission of a falsified Residential Rental Checklist or Certificate of Inspection is
subject to penalties and enforcement under Chapter 1-3 RMC.
SECTION III. Subsection 5-5-3.A of the Renton Municipal Code is amended as shown
below.
A. General Business License Registration Required:
1. No person shall engage in business unless such person has submitted
a general business license registration and holds a valid City of Renton general
business license. The general business license shall not be transferable. If a person
maintains more than one place of business within the City a separate general
business license registration is required for each, with the following exceptions 4:
a. Ttemporary or portable sales which will only be required to submit
one registration; and
b. A separate license for landlords, as that term is defined in RMC 4-
5-125.C, is not required for each separate rental dwelling unit, as that term is
defined in RMC 4-5-125.C; except that property managers who maintain off -site
offices shall obtain a separate license for each off -site office.
2. If a person engages in no other activities in or with the City except the
following, demonstrated through means satisfactory to the Administrator, it need
not register:
a_aeting-Acting within the scope of employment as an employee of a
duly licensed City business, it need net F giste
10
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
b. Owning or acting as lessor or sublessor of real property occupied
with one (1) or more rental dwelling units, as that term is defined in RMC 4-5-
125.C, and such rental dwelling units:
i. Are not rented to others:
ii. Consist of rental on a by -room basis within a rental dwelling
unit that is otherwise occupied by the property owner, except that a property
meeting the definition of a short-term rental, as that term is used in RMC 4-4-055,
is not exemot: or
iii. Are rented only to family members of the property owner.
c. Activities for which reauirement of a business license would violate
Washington State or federal law.
SECTION IV. Subsection 5-5-3.13 of the Renton Municipal Code is amended as shown
below. All provisions of Section 5-5-3 not explicitly amended by Sections III and IV of this
Ordinance shall remain in effect and unchanged.
B. General Business License Registration Fee:
1. General Business License Registration Fee Required: The general
business license registration fee of one hundred fifty dollars ($150.00) shall be
due and payable when filing a completed registration form as prescribed by the
Administrator. The general business license registration fee may be adjusted
from time to time, as published in the current City of Renton Fee Schedule. If a
business enterprise's first date of engaging in business in the City is after July 1, a
11
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
prorated half year general business license registration fee will be due in the
amount of seventy-five dollars ($75).
2. Exemptions: The following are exempt from the general business
license registration fee, if demonstrated through means satisfactory to the
Administrator:
a. Non -Profit Exemption: A person that can demonstrate thFeugf}
,tisfaeteF„ to the d-Mipistr,+^r that it is exempt from federal income
taxation pursuant to 26 U.S. Code Subsections 501(c) or (d), as those subsections
may be amended or recodified.
b. Threshold Exemption: A person that can demonstrate thFeugh
,tisfaeteF„ to the 4dA4i^;gtr4+^r that (1) its business has, as applicable to
the type of business, an annual value of products, gross proceeds of sales, and
gross income in the City equal to or less than $2,000, aggregated, and (2) it does
not maintain a place of business within the City. This exemption does not apply
to a person whose business requires or obtains a regulatory license or
specialized permit.
c. Residential Rental Property Owner Exemption: A person
isterinR a place of business within the Citv at which such Derson's
enzaRement in business is limited to owning and renting/leasing one or more
rental dwelling units, as that term is defined in RMC 4-5-125.C.
3. Time Within Which to Claim Overpayment of General Business
License Registration Fee: If a person makes an overpayment of a general
12
AGENDA ITEM #2. b)
ORDINANCE NO. 5913
business license registration fee, and, within four (4) years after date of such
overpayment, makes application for a refund or credit of the overpayment, its
claim shall be allowed and be repaid from the general fund or be applied as a
credit to annual renewal fees as approved by the Administrator.
SECTION V. If any section, subsection, sentence, clause, phrase or work of this
ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction,
such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other
section, subsection, sentence, clause, phrase or word of this ordinance.
SECTION VI. This ordinance shall be in full force and effect thirty (30) days after
publication of a summary of this ordinance in the City's official newspaper. The summary shall
consist of this ordinance's title.
PASSED BY THE CITY COUNCIL this day of )2019.
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this day of , 2019.
Denis Law, Mayor
13
ORDINANCE NO. 5913
AGENDA ITEM #2. b)
Approved as to form:
Shane Moloney, City Attorney
Date of Publication:
ORD:2047:
14