Item Coversheet

10.A.


Shakopee City Council
July 7, 2020


FROM:Michael Kerski, Director, Planning & Development
TO:Mayor and Council Members
Subject:
Rental Housing Preservation and Maintenance
Policy/Action Requested:
None at this time.  Staff will be presenting what other cities are doing and will be looking for any direction on next steps, if any, from Council.
Recommendation:
Discussion:

Shakopee currently has almost 4,000 rental units. These units vary in age from the past five years to the 1960s. As units age, they require maintenance including items like new heating systems and appliances.

We will be adding more than 1,000 units over the next twelve months. Newly constructed units meet current codes and typically will not present any issues for the first twenty four to thirty six months.

We often see residents during the winter that have no heat or hot water or broken windows.

Many of our surrounding cities have implemented various programs to inspect rental units, including single family homes that are rented. Typically, accessory dwelling units within an existing single family home, often referred to as in-law apartments, are exempt.

Typical language adopted by cities, includes the following:

A) The purpose is to protect the health, safety and general welfare of residents of the city living in housing furnished to them through payment of money or services to the owner of the property or designee. The general objectives include:

(1) To maintain a quality of character and stability of rental housing ;

(2) To correct and prevent conditions that adversely affect, or are likely to adversely affect the life, safety, welfare and health of occupants of rental housing ;

(3) To provide minimum standards for cooking, heating and sanitary equipment necessary to the health and safety of the occupants of rental housing ;

(4) To provide minimum standards for light and ventilation necessary for the health and safety of occupants of rental housing ;

(5) To provide minimum space standards to prevent overcrowding;

(6) To provide standards for maintenance of rental housing to prevent blight and slums; and

(7) To preserve the value of land and buildings throughout the city.

Some cities have created their own rental housing ordinances while the general practice has been to adopt the International Property Maintenance Code by reference since it address all of the above and has been universally accepted standards in the United State.

Most cities charge an annual fee based on the number of units. Some cities also charge a fee each time a unit is rented and they grant a certificate of occupancy. Fees can range from $50 a unit annually or biannually and also some cities have higher fees for units that require additional inspections because of problems.

Cities use the inspection or licensing fees to fund the actual inspections.

Included is a table of our comparable and surrounding cities with what they are doing on rental housing.

Budget Impact:
ATTACHMENTS:
Description
Other cities