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HomeMy WebLinkAboutORD 5913 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.B 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 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 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 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 4 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 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 dwelling unit. 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. "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 RCW 59.18.060 of the Landlord-Tenant Act and does not present conditions that endanger or impair health or safety. 12. "Tenant" is any person who is entitled to occupy a rental dwelling unit primarily for dwelling purposes with or without a written rental agreement. 6 ORDINANCE NO. 5913 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 property on which a rental dwelling unit is located; 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: a. Only one landlord is required to meet the requirements of RMC 4- 5-125.D.1; and 7 ORDINANCE NO. 5913 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.B 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.B does not except such rental dwelling units from RMC 4-5-125. 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: 8 ORDINANCE NO. 5913 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; 2. When the City discovers or is made aware of a violation of RMC 4-5- 125; or 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. 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: 9 ORDINANCE NO. 5913 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 of: 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_acting-Acting within the scope of employment as an employee of a duly licensed City business, it need not rcgistcr.i 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 10 ORDINANCE NO. 5913 meeting the definition of a short-term rental, as that term is used in RMC 4-4-055, is not exempt; or iii. Are rented only to family members of the property owner. c. Activities for which requirement of a business license would violate Washington State or federal law. SECTION IV. Subsection 5-5-3.B 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 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 through means satisfactory to the Administrator that it is exempt from federal income 11 ORDINANCE NO. 5913 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 through means satisfactory to the Administrator 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 $2,000, aggregated, and (2) it does not maintain a place of business within the City. This exemption does not apply to a person whose business requires or obtains a regulatory license or specialized permit. c. Residential Rental Property Owner Exemption: A person registering a place of business within the City at which such person's engagement in business is limited to owning and renting/leasing one or more rental dwelling units, as that term is defined in RMC 4-5-125.C. 3. Time Within Which to Claim Overpayment of General Business License Registration Fee: If a person makes an overpayment of a general business license registration fee, and, within four (4) years after date of such overpayment, makes application for a refund or credit of the overpayment, its claim shall be allowed and be repaid from the general fund or be applied as a credit to annual renewal fees as approved by the Administrator. SECTION V. If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction, 12 ORDINANCE NO. 5913 such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase or word of this ordinance. SECTION VI. This ordinance shall be in full force and effect thirty (30) days after publication of a summary of this ordinance in the City's official newspaper. The summary shall consist of this ordinance's title. PASSED BY THE CITY COUNCIL this 25th day of February, 2019. Jason A. eth, City Irk APPROVED BY THE MAYOR this 25th day of February, 2019. 4.6C4L Denis Law, Mayor Approved as to form: \\\\��\1111111I1;Ill® R Ely Shane Moloney, City Attorney Gy _ = SEAL Date of Publication: 3/1/2019 (summary) ©1 ORD:2047:2/20/19 ®% "PA7rmn$Se,.�w���\ II/1116 11i41t4010‘\ 13