ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to RECEIVE AND FILE a REPORT Regarding NON-OWNER OCCUPIED REGISTRATION.
Body
BACKGROUND: This report back was originally brought back to Council and approved on February 22nd, 2022. However, as part of the discussion, additional information and clarification was requested. This communication provides the original information communicated and includes updated additional information. The underlined portion is the new information added.
Timeline of Non-Owner Occupied Property Registration in the city of Peoria
1989 - A Neighborhood Task Force Report was presented to City Council with a request to receive and file and endorse the general concepts contained in the report. The report included a recommendation that staff explore registering and proactively inspecting rental property. (Minutes attached).
1994 (August)- A policy session and public hearing was held by Council to specifically discuss the issue of rental registration. The goal of adopting a rental registration ordinance was to address the issue of staff spending a significant amount of time on locating owners of rental and vacant property owners. Staff mentioned they encountered issues with property owners providing fake addresses, not being able to locate any known servable addresses, and the cost burden to hire process servers to locate property owners and hold them responsible for the conditions of their properties. (Minutes attached)
1994 (November) - An additional policy session was held to discuss rental registration including a discussion on a rental inspection program. (Minutes Attached)
1995 (January) - An additional policy session was held regarding rental registration including a discussion on a rental inspection program.
1995 (March) - An additional policy session was held regarding rental registration including a discussion on a rental inspection program.
1995 - A one-time, annual registration fee was established. The fee was $25 per parcel ID.
1998- A Rental Inspections Coordinator, one administrative position, and four rental inspectors were hired to administer the rental registration program.
2003 - The Rental Inspection Coordinator, one administrative position and four rental inspectors were cut due to budget concerns.
2009- City Council changed the registration requirement to an annual registration fee for owning non-owner occupied property.
2011- City Council raised the registration fee but offered a discount to property owners who attended a two-hour educational seminar hosted by the Community Development Department. The fee was $50 for those who did not attend the training and $25 for those who did.
2012 - The Code Enforcement Division was reduced from twelve (12) Code Enforcement Inspectors to seven (7) Code Enforcement Inspectors. The administrative staff of the division was reduced from six (6) administrative staff to three (3) administrative staff.
2015 - Registration fee was increased to $75 for those who attended the training and $150 for those who did not attend. The funds went into the general fund and allowed for the following expenditure increases in the general fund:
• Newly created Residential Police Officer position. (Center Bluff)
• Increased funding for vacant lot clearance. This program removed remaining scrub trees and shrubs, old fences, remaining foundations, and other visual blight.
• Increased frequency of City and Trustee lot cutting. By increasing the number of cuts per year, vacant lots maintained by the City were no longer a visually blighting influence on neighborhoods.
• Increased technology and tools for Code Enforcement. The use of technology to offset the reduction in Code Enforcement staff helped to increase productivity and responsiveness.
• Increased funding for board-ups. Additional funds not only allowed for more board-ups but allowed the City to explore the utilization of more secure and/or appropriate board-up materials, thus reducing the overall blighting influence of boarded windows and doors.
• Increased demolition budget. Funds remaining after the above items are funded focused on increasing the number of demolitions of blighted properties in Peoria. The removal of properties that are beyond repair made a significant and lasting positive impact on neighborhoods.
2018- Eliminated the requirement for property owners to attend training if they met certain criteria that demonstrated they were maintaining their properties. Responsible property owners would be required to pay $75.
2020 - Eliminated the requirement for all property owners to attend the training session and all properties were required to pay $75 per property.
Why do we have the fee?
The impact non-owner occupied properties have on our neighborhoods and the burden those properties have on our Code Enforcement staff is undeniable. In 2018:
• Non-owner occupied properties represented 30% of all parcels.
• Non-owner occupied properties represented 17% of all land area.
• Non-owner occupied properties represented 59% of all code violations.
• Non-owner occupied properties represented 78% of all cases of elevated blood-lead levels in children.
The non-owner occupied property registration fee helps to offset the cost that the City incurs enforcing Property Maintenance Codes and protecting our neighborhoods from some of the negative effects associated with non-owner occupied properties.
• Allows for updated annual contact information for non-owner occupied property owners
o Updated phone numbers and mailing addresses
o Community Development, Police, and Fire use the list often to contact landlords about issues related to their property
• Funds various Code Enforcement efforts as well as a residential police officer.
• Adds a layer of accountability to out of town investors and speculators.
• Empowers residents who own property adjacent to non-owner occupied units to contact landlords directly when issues occur.
Impact of the fee?
Staff does not believe that you can assess the impact of the fee without considering all the other actions that staff has taken over the years related to Code Enforcement. The rental registration is a small component of the Code Enforcement programs.
Other programs focused on non-owner occupied property
• Landlord Training from 2011 - 2020
• Self-inspection process for landlords and tenants
• Email and text notification for landlords
• Improved relations with Prairie State Legal Services
• Multiple tenant educational opportunities
• Creation of the City of Peoria Land Bank
• Creation of robust code enforcement education program
• Increased focus on engagement and educational efforts
• Increased code enforcement productivity
• Increased spending on demolitions
• Increased spending on environmental enforcement issues
• Improved technology for code enforcement which has improved service delivery
• Code enforcement emergency rehousing program
• Robust enforcement of the Property Maintenance Code
A snapshot of Code Enforcement actions over the last ten years related to improving our neighborhoods and housing stock in the City of Peoria:
• Demolished 630 dilapidated residential structures
• Issued 52,360 for environmental code issues
• Addressed 9,941 inoperable vehicles
• Issued 48,552 work orders to clean up private property
• Sent 9,744 structures to the Hearing Officer to come into compliance for housing issues
Staff believes the rental registration fee has served its purpose of improving the ability of staff to contact non-owner occupied property owners and it has provided funding to address the impact rental properties have on our community.
The context provided above discusses the history of non-owner occupied property registration and the current work of our Code Enforcement Division. The original discussion started with a rental registration requirement that ensured staff and neighborhood residents had updated contact information on rental and vacant property in the community. Throughout the years of policy discussions, Council has determined that being a landlord is a business. As a business, it makes sense to have a registration requirement for these businesses operating directly in our neighborhoods. As part of that discussion, proactive rental inspections of the interior of rental properties was also adopted to specifically address life-safety issues for tenants and improve the quality of our neighborhoods. However, in 2003, six positions specifically tasked with executing the Rental Inspection Program were eliminated. Existing staff tried to absorb some of the inspections, but on a more reactive basis. This was finally discontinued around 2011/2012 when further staff reductions occurred.
Our current policy aims to minimize the impact of not having a proactive rental inspection program. These practices include:
- Educating tenants on their rights and responsibilities
- Prioritizing complaints from tenants
- Building strong relationships with legal aid providers
- Working with non-profit housing providers
- Holding negligent landlords accountable
- Creation of the re-housing program
- Providing a self-inspection checklist for tenants and landlords
The Code Enforcement Division is currently comprised of a Senior Code Enforcement Inspector, 5 Code Enforcement Inspectors (Housing and Environmental) and 7 Code Enforcement Aides (Environmental). In addition, the Department is authorized to hire four temporary Code Enforcement Aides to help in the summer with environmental issues such as tall grass, debris removal, litter clean up and abandoned vehicles. The current staffing level allows us to stay on top of environmental issues throughout the City but does not allow for a proactive approach to housing issues specifically a proactive, systematic interior rental inspection program.
Staff is not able to assess the success of the rental registration and inspection property or the impact it had in our neighborhoods as the program was not completely funded and the staffing of the program was cut in 2003. However, the original intent of the rental registration program that currently exists has been successful in helping to improve communication with landlords and having updated information on rental and vacant property owners in the community for utilization by the Code Enforcement staff, Police Department staff, Fire Department staff, and residents.
FINANCIAL IMPACT: NA
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: NA
IMPACT IF DENIED: NA
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER:
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Safe Peoria
2. Beautiful Peoria
3. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
3. Keep taxes and fees competitive.
DEPARTMENT: Community Development