HomeMy WebLinkAboutA049 - Council Action Form dated August 28, 2018 ITEM # 26
DATE: 08-28-18
COUNCIL ACTION FORM
SUBJECT: PROPOSED RENTAL CONCENTRATION CAP EXCEPTIONS AND
HARDSHIP ORDINANCE
BACKGROUND:
At the August 14, 2018 Council meeting, the Council directed staff to bring back for a
first reading the Rental Cap Hardship & Exception ordinance with the following changes
from the version that was previously passed and subsequently vetoed by the Mayor:
a) Provide a definition for "bona fide rental."
b) Change the application deadline from September 1, 2018, to 30 days from the
effective date of the ordinance.
c) Narrow the prior language from the vetoed ordinance allowing a property owner
residing at the property with a tenant (who would not be required to have an LOC
under the Rental Code) to renew an LOC obtained under the exception, but only
for one- or two-bedroom dwellings.
In the new draft, staff has incorporated these changes, as directed by Council:
a) In Section 13.201 (definitions) "Bona Fide Rental" is defined as a rental in which
a genuine, legitimate landlord/tenant relationship exists between a landlord or
owner and at least one non-owner tenant.
b) In Section 13.300(10)(a)(ii) the deadline for applying for the Rental Cap
Exception is changed from September 1 , 2018, to thirty days after the effective
date of the ordinance.
c) In Section 13.300(10) (final paragraph of this section) is reworded to require that,
in order for a property owner to renew an LOC obtained under this exception
(both for the first renewal which happens 12 months after obtaining the LOC and
for subsequent renewals), the dwelling would have to be a bona fide rental, and
either 1) the dwelling is not exempt from the Rental Code, or 2) the dwelling is a
one- or two-bedroom dwelling which is the owner's primary place of residence
with a non-owner tenant.
ALTERNATIVES:
1
1.) Approve on first reading the attached Rental Cap Hardship & Exception
Ordinance as directed by the City Council.
2.) Approve the Rental Cap Hardship & Exception Ordinance with modifications to
the non-owner tenant and one and two-bedroom dwelling exception standard.
This alternative could include two modifications to the language that the Council
requested for the non-owner allowance for 13.300(10)(a). The first modification
would be to remove the reference to one and two-bedroom dwellings and the
second would narrow the scope of a non-owner tenant to be outside of the first
degree of consanguinity. This approach would address all "single roommate"
situations the same regardless of house size, and thereby ease staff
administration and efforts to educate the public.
3.) Decline to pass on first reading the attached Rental Cap Hardship & Exception
Ordinance.
CITY MANAGER'S RECOMMENDATION:
In accordance with previous direction on August 14, 2018, it is the recommendation of
the City Manager that the City Council support Alternative #1 and thereby approve on
first reading the Rental Cap Hardship & Exception Ordinance as attached.
2
ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF
THE CITY OF AMES, IOWA, BY ENACTING NEW SECTIONS
13.201 TERMS DEFINED "BONA FIDE RENTAL" AND
"PRIMARY RESIDENCE" AND SECTION 13.300 (10) AND
(11) THEREOF, FOR THE PURPOSE OF RENTAL
CONCENTRATION EXCEPTIONS REPEALING ANY AND
ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT TO THE EXTENT OF SUCH CONFLICT;
PROVIDING A PENALTY; AND ESTABLISHING AN
EFFECTIVE DATE.
BE IT ENACTED,by the City Council for the City of Ames, Iowa,that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby
amended by enacting new Sections 13.201 Terms Defined "Bona Fide Rental' and "Primary Residence"
and Section 13.300(10)and(11)as follows:
"Sec. 13.201. TERMS DEFINED
BONA FIDE RENTAL: A rental in which a genuine, legitimate landlord/tenant relationship
exists between a landlord or owner and at least one non-owner tenant.
PRIMARY RESIDENCE: A residence which is the only place where a person has a true, fixed,
and permanent home, and to where, whenever the person is briefly and temporarily absent, the person
intends to return. A property owner may have only one primary residence.
See. 13.300. GENERAL
(10) Rental Concentration Cap Exception
For properties within a Rental Concentration Cap Neighborhood, a property owner of record on October
27, 2017 may apply for an exception in order to register their primary residence as a rental property and
complete all requirements of the Rental Code to obtain a Letter of Compliance. The property owner is
responsible for all application requirements for the exception, registering the property, and obtaining a
Letter of Compliance. A Letter of Compliance obtained under this exception is not transferable to a new
owner upon the sale of the property. Any property sold subsequent to October 27, 2017 without a valid
Letter of Compliance in regards to this exception shall not be eligible for a Letter of Compliance.
The exception is subject to minimum application standards and performance requirements described below.
The exception may be approved by the Building Official upon review of the application for consistency
with the standards of this Chapter. The Building Official may forward the application to the City Council
for review upon any finding of irregularity in documentation with the application. A property owner may
appeal the decision of the Building Official to the City Council. Property owners determined to have been
renting without a required Letter of Compliance are not eligible for the exception.
(a) Exception Requirements
i. The property owner must have owned the property as of October 27,
2017 and either 1) the property must be the primary residence of the property owner as of the date of
application, or 2) the property owner had obtained, on or after October 28, 2016 and prior to October 27,
2017, a building, electrical, plumbing or mechanical permit which would indicate an intent to convert the
property to a rental property.
ii. The deadline to file an application is thirty(30) days from the effective
date of this ordinance.
iii. The property owner must obtain an initial inspection and complete all
requirements for a Letter of Compliance within six(6)months of the inspection date.
iv. If a property owner has not obtained a Letter of Compliance within six
months,the property registration shall expire and may not be renewed or reapplied for under this exception.
Upon receipt of a Letter of Compliance for the property, each subsequent renewal of the Letter of
Compliance after the initial twelve months is subject to the dwelling's continued use as a bona fide rental
dwelling and the dwelling is dither not exempted by 13.100(5) of the Rental Code or is a one- or two-
bedroom dwelling which is the owner's primary place of residence with a non-owner tenant.
- (11) Property Sale Hardship Exception.
For properties within a Rental Concentration Cap Neighborhood, a property owner may apply to the
Building Official for a hardship exception to allow registration of the property for rental purposes in order
to facilitate the sale of the property. The hardship exception is subject to minimum application standards
described below and may be approved by the City Council upon review of the application.
Approval of the Property Sale Hardship by the City Council is for a six-month period to allow for sale of
property to a new owner in an arms-length transaction to another party. The property owner may request a
six month extension of the approval in order to complete work required to obtain a letter of compliance
and/or to complete the sale and transfer of the property. An initial Letter of Compliance(LOC)will only be
issued for one year for property registered under the hardship exception process. The LOC cannot be
renewed by the property owner approved for a hardship, but can be renewed by the new property owner
consistent with the standards of the Rental Code. Property owners determined to have been renting without
a required Letter of Compliance are not eligible for a Property Sale Hardship Exception.
(a) Application Requirements. A property owner must submit documentation
related to the following as part of the hardship application:
i. The property must abut registered rental properties on three sides, or
the substantial equivalent of three sides. An abutting side includes any shared property line of the subject
site and includes property lines with residential property located across the street or an alley. An abutting
side is any length of a property line that is 20 feet in length or greater.
ii. The property must have been purchased or under a purchase agreement
by the current owner prior to October 27,2017.
iii. The property has been offered and advertised for a minimum nine (9)
consecutive months with a licensed realtor prior to the application for hardship.
iv. Disclosure of any offers to purchase the property which have been
declined.
V. The original purchase price and date of purchase.
vi. An appraisal prepared by a licensed appraiser for the value of the
dwelling that also includes comparable sales within the appraisal.
vii. A home inspection report describing the condition of the property.
viii. Rental Housing Code pre-inspection and cost estimate for compliance
with the Rental Housing code.
Upon submittal of the application to the Building Official, staff will review for completeness and adequacy
of documentation provided within 10 days. Staff may request additional documentation in relation to the
application requirements to determine completeness. Upon a determination that the application is
complete,the application will be forwarded to the City Council within 30 days for Council review.
The City Council may approve a property sale hardship upon making both of the following findings:
1. The advantages to the neighborhood and the City of allowing for the property to be registered as a
rental property to facilitate its sale outweigh the disadvantages to the neighborhood and City of
exceeding the rental concentration cap.
2. The sale of the property would have been possible at a reasonable market value as a single family
dwelling, but for the existence of the rental concentration cap."
Section Two. Violation of the provisions of this ordinance shall constitute a municipal infraction
punishable as set out by law.
Section Three. All ordinances or parts of ordinances, in conflict herewith are hereby repealed to
the extent of such conflict, if any.
Section Four. This ordinance shall be in full force and effect from and after its passage and
publication as required by law.
Passed this day of
Diane R. Voss,City Clerk John A.Haila,Mayor