VALLEJO RENTAL PROPERTY PROGRAM
A Comprehensive Community Model

Prepared by:
Alliance for Healthy Safe Rental Housing

Table of Contents
Why Does Vallejo Need a Rental Inspection Program?
Vallejo's Economic Vision Process
Vallejo Rental Program Components and Accomplishments
Rental Housing Inspection Programs in California
Table of Rental Inspection Programs in California
Case Study of a Vallejo Rental
Questions and Answers


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Vallejo's Economic Vision Process

 

BLIGHT
BUSTERS

June 19, 2002,
San Francisco
Chronicle

"This is a very self-conscious effort at social enginering to get us on the train of economic revival in California," said Claudia Leed, a deputy city attorney, who also said the push against lbight dovetails with city projects to reduce cimr,e draw technology jobs and create housing downtown.

 

Vallejo's Economic Vision came about through a series of meetings with community leaders, including civic entrepreneurs, elected officials, municipal professionals, education and health care, business and industry, tourism, neighborhood and environmental leaders.

The participants developed an economic vision based on the principle that a vibrant economy is necessary to achieve a healthy, proud community and a high quality of life. The vision confirms and reinforces the need for community partnerships to address the human, social and infrastructure needs of Vallejo as it moves toward economic sustainability.

The number one priority of the City Support Structure subcommittee of the economic vision process is to develop and implement a comprehensive program to ensure code compliance for rental property and landlord accountability.

With the Economic Vision Process determination that improving rental housing was a high priority of the City, a preexisting group, already looking at rental housing, was asked by the City to develop a solution. This group, comprised of the Chamber of Commerce, rental property interests, realtors, community members, Fighting Back Partnership, and others, had been meeting for over a year prior to the Vision process recommendations. The Rental Property Sub-group has been meeting for over two years developing a rental program that reflects the interests of all interest groups on the committee.

This is to be accomplished by developing, passing and implementing a new city ordinance that would, in part:

  • Contain an inspection process for all rental property
  • Impose fines for violations of the ordinance on property owners/property images
  • Establish a database of all rental property, and
  • Include an enforcement process
  • Would, as much as possible, be financially self supporting

Myriad benefits that would contribute to cleaner, safer neighborhoods are expected to result from the implementation of a rental inspection ordinance, and include:

  • Increased property values
  • Increased rental demand
  • Decreased general calls for police services
  • Decreased calls about rental property problems to Code Enforcement
  • Increased property management involvement in solving rental property issues

 


Why Does Vallejo Need a Rental Inspection Program.

 

Rental inspection programs are designed to accomplish three main goals:



Various city agencies and community organizations have identified sub-standard rental housing units-single, family dwelling and multiunit complexes - containing significant health and safety issues in different parts of the city. The scope of these problems range from boarded windows, fire risks, gas leaks, non-operable heaters, open sewers, lack of smoke detectors, illegal garage conversion, structural and wiring problems, and other hazardous conditions.


Landlords who are unwilling to voluntarily address identified health and safety issues tend to be more responsive to pressure from the city. But laws currently on the books make access
to inspect potentially problematic rental property extremely difficult entirely reactive to the most severe problems that, for one reason or another, come to the attention of the city. Tocomplicate matters, many tenants are reluctant to complain to the city about problems out of fear of retaliation or eviction.


Health and safety problems in rental property deserve proactive action on the part of the city to ensure that tenants have safe, quality housing rather than waiting until the problem escalates and a complaint is filed.

Vallejo Rental Program Components and Accomplishments


The mandate that emerged from the visioning process resulted in 18 months of hard work by a group of about 15 individuals to create a rental property program for the City of Vallejo. The Vallejo Chamber of Commerce, rental housing interests, Realtors, neighborhood groups, Fighting Back Partnership, Vallejo Police Department, Vallejo City Attorney's Office, and Development Services have all helped to design a program to address problem rental properties and their negative impact on neighborhoods.


The rental program, as it is presently designed, contains three components: community and rental property owner education, an inspection process, and property management company incentives.
Specific questions about the program concept, posed during a Vallejo Rental Property Roundtable meeting, are included in a written question and answer format at the end of this document.

L.A. Anti-SLum Ordinance is Upheld
January 9, 2001, San Francisco Chronicle

Cities seeking to crack down on slumlords do not have to get the approval of property owners to levy fees for regular inspections, the California Supreme Court ruled yesterday.

The decision comes as a relief to cash-strapped cities, which suffered a setback in 1996 when voters approved proposition 218, preventing municipalities from imposing fees and charges on property owneres without public approval.

San Jose Landlady Ordered to live in Own Unit
October 3, 2000, San Francisco Chronicle

When a judge sentenced Linda Arciaga to become the first San Jose landlord to live under "house arrest" in her own run-down apartment building for two months, she had one big worry: Her safety. "Is there any security available if I need it?" she asked during her recent contempt-of-court sentencing for ignoring emergenccy orders to repair two apartment buildings where tenants lived amid leaking sewage, cockroach and rat infestation... ."

 

1. Community and Rental PropertyOwner Education

This component provides an overview to the community about the rental program that is adopted by the City. Comprehensive training and education is available to property owners and properties managers about effective management of rental property. Participation in the education component is expected to increase the amount of time between rental property inspections for owners.

The first part of the education component involves sending educational materials to all landlords as soon as the rental program begins. The materials would provide information about the nature and expectations of the program including:

  • Ordinances on the books
  • The inspection process and point system
  • Rental Housing Association and Solano Board of Realtors programs
  • Vallejo Police Department education programs
  • City Certification
The second part of the educational component includes training for landlords after their property has been inspected to partially mitigate their status on the proposed "Point Schedule for Inspections." After the inspection process, landlords will be encouraged to participate in available trainings designed to upgrade their knowledge, skills and expectations associated with operating rental property in Vallejo.

Training is currently ongoing in Vallejo through the Rental Housing Association and the Vallejo Police Department. The latest tenant screening seminar, for example, provided by the Vallejo Police Department, Beat Health Unit took place on February 3, 2001.
 

Mayor Won't Back Citywide Rent Control
February 24, 2001
Times-Herald

Along with the Vallejo Chamber of Commerce and Fighting Back Partnership, Intintoli said he's developing a city ordinance and rental inspection process to curtail so-called 'slum lords' who let their properties degrade.


Concord Gets Tough on Rental Repairs
February 24, 2000,
San FranciscoChronicle

Hoping to crackdown on slumlords who ignore tenant complaints about faulty wiring and roach-infested units, Concord has adpoted a new ordinance that enables the city to enter troubled complexes and demand that repairs be made...
(The ordinance) emphasizes the ilegality of retaliatory evictions, which are prohibited by state law ... Residents cheered the council's unanimous decision ... "When ab area is cleaned up, people behave better, and they don't accept drug dealing and other problems, " Police Chief Ron Ace said.

 

2. Rental Property Inspection Process

The rental inspection process of the program is designed to ensure that all rental property in Vallejo meets basic health and safety code standards. The program places the initial emphasis on properties with a track record of complaints or concerns as noted by Code Enforcement, Vallejo Police Department, Vallejo Building Department, Fighting Back Partnership, or other organizations and agencies.

Rental inspection will focus on health and safety issues and is modeled after the Section 8 inspection process. It has been designed to carefully walk the line between creating safe housing for tenants and not placing an unnecessary burden on landlords. A point system is built into the inspection process that rewards landlords who maintain safe rental property by postponing re-inspections to a later date.


Items that would be inspected include:

  • Building conditions (stairs, porches, decks, access to unit, exits)
  • Utilities (water, sewer, electricity, natural gas)
  • Unit conditions (electrical hazards, security, smoke detector, windows, ceilings, walls, floors, stairs, halls, heating, hot water heater, kitchen sink, toilet, bathroom basin, and tub or shower.


3. Property Management Company Incentives

A program component is currently being developed to reward property management companies. Under this system, property management companies whose clients maintain quality properties that score well on the inspection process will receive a ranking that will be made available to property owners looking to use a rental agency and potential renters. While the details are still being worked out, the intent is to reward quality companies while encouraging companies with problem properties to strive to be better.


The Property Manager Incentive Track recognizes that property managers are in a unique position relative to rental property and their responsibilities under a rental program. The proposed Star System would encourage property management companies to offer high quality services and to be acknowledged for such service. In this model, property management companies would receive up to five stars for their business, depending on, for example, the number of problem properties managed, the number of properties scoring poorly on rental inspections, and participation in rental education courses. It is assumed that companies receiving higher number of stars would gain a competitive advantage as owners seek out qualified companies to manage their rental property. Adoption of a rental program would increase the interest of rental property owners to make informed decisions about who should manage their property.

 

BLIGHT
BUSTERS

June 19, 2002,
San Francisco
Chronicle

State law gives cities the clout to clean up private property whose conditions mocks community standards.




Rental Housing Inspection Programs in California

Many communities in California have residential rental housing inspection ordinances. Aside from fire inspections, which are common in many communities, a number of communities impose additional inspection programs and fees, generally administered by a locality's housing, building, or health department. Under these programs, housing inspectors examine the building's structure, look for interior plumbing problems, heating and mechanical problems, and electrical and zoning violations.

The purpose for these ordinances is threefold, according to the California Apartment Association

  • With the growing number of renters in California, local officials and fair housing advocates want to ensure that property owners are providing their tenants with safe and adequate housing.

  • Many local officials have become involved when concerned citizens and tenants complain about rental property owners who ignore or are unable to deal with neighborhood crime and blight.

  • Inspection programs are a source of funding for localities. Owners are charged for an initial inspection and are again charged when violations are found.

    The right of cities to charge rental property owners for inspections was upheld by the California Supreme Court on January 9,2001. In the case of Apartment Association of Los Angeles County, Inc., et al. vs. City of Los Angeles, the Court found that a city ordinance imposing an inspection fee on private landlords does not violate article XIII D of the California Constitution, added by initiative measure, Proposition 218, in 1996. The decision affects cities throughout the state that either have similar rental inspection fees or are considering enacting them.

    Examples of the types of rental inspection programs that have been adopted by California communities are shown in the following table for the cities of Azusa, Berkeley, Hayward, Los Angeles, Montclair, Pasadena, Sacramento, and San Francisco. The oldest rental inspection ordinance was adopted in 1973 by Pasadena; the most recent was Los Angeles in 1998.

     

    Rental Housing Inspection Programs in California

    City Units Covered Registration fees When Inspected Inspection Fee Reinspection Fee Cost per Violation
    Azusa All rental units Annual fee:
    $50 single family
    $25 condo
    $50 apts +$4 per unit
    Annual None If violation found Timeand cost accrued by city
    Berkeley Apartments No Annual for fire and Buildings $30 for building if violation
    $100/hour for fire inspecton
    None if violation is corrected N/A
    Hayward
    (adopted in 1989)
    3 or more units/parcel no Annual None $50 - $10/unit $50
    Los Angeles
    (adopted in 1989)
    Rooming houses, residential hotels, apartments, lodging houses No Annual $12/unit N/A N/A
    Montclair
    (Includes 5-star rating incentive)
    Apartment buildings No Voluntary No No N/A

    Pasadena
    (adopted in 1973)

    All residential units No Buildings with 3+ units every 4 years.
    Single family homes/duplex when change in occupancy
    Annual fee $5.50 - 3+ units
    $77 - single family homes
    $63 - condo

    Only returns if life-threatening

    $22 - 3+ units
    $77 - single family
    $63 - condo

    N/A
    Sacramento
    (adopted in 1984, 1987)
    All apartment buildings inspected by fire dept No Annual Annual fee
    $30 - 3-5 units
    $60 - 7-15 units
    $100 - 16+ units
    N/A N/A
    San Francisco
    Apartment buildings with 3+ units Annual
    $92.50 <20 units
    $117.50 for 20-29
    $155.50 for 30-39
    $205.75 for 40-49
    $285.50 for 50-59
    $335 for 60+
    Annual No N/A N/A

    Source: California Apartment Association Background Paper No. 1 b, "Residential Rental Housing Inspection Odinances: Which Communities Have Them and Why." May 15, 1998; updated August 25, 1998, October 1, 1998.


    A Case Study of a Vallejo Rental
    An open letter from a member of the Vallejo Neighborhood Revitalization Project

    As an Outreach Worker in the Neighborhood Revitalization Program, I recently told my spouse about a particularly troubling situation that I came across this winter. The situation involved four family members living in substandard housing conditions in the Downtown Revitalization area, and to make matters worse, these tenants were being subjected to an unreasonable rent increase from a negligent landlord. Try to imagine that this family of four, which includes a 4-yearold boy and a 2-week-old infant, living in an apartment that is plagued by no heat, a leaky roof and layers of mold and mildew throughout the apartment.

    Then try to imagine that this same family has to endure a rent increase from $475 to $600 by the landlord, who by the way, assured the family that the aforementioned problems, along with several others, would be fixed within a month of the family's residency.

    Yet as the family enters its third month of living at the apartment, the landlord has not delivered on any of his promises to fix the substandard conditions.

    The plight of this family came to light on January 10, 2001 when we were conducting informal neighborhood surveys at a multiple unit apartment complex in the Downtown Revitalization area. We were given permission by a tenant to come into his apartment and conduct the survey.

    Once inside, we observed that this was a studio/one-room apartment shared by the husband, wife and their two children. During the course of our survey, we also observed that the only source of heat inside was the gas-operated stove at the west end of the apartment. This stove had to be lit with matches because the pilot light was not functional. Furthermore, there were no smoke alarms located in the apartment.

    In addition, we observed that there was water damage throughout the apartment ceilings and walls. The ceiling in the kitchen was damaged to the extent that plaster had begun to fall to the floor. The kitchen wall has, in places, started to separate because of water damage caused by the leaky roof.

    We also found heavy layers of mold and mildew concentrated throughout this apartment. It should come as no surprise, then, that the 11-year-old child that lives in this apartment suffers from severe asthma. Mold and mildew in home environments is considered an aggravating factor for respiratory allergies, as well as a cause of damage to building materials and we as outreach workers, are seeing firsthand how apartments with mold and mildew issues are impacting our children's health.

    The bathroom in the apartment presented its own list of problems. There is no ceiling exhaust fan or window in the tiny bathroom. The wood above the bathtub in the bathroom is completely rotted and constantly absorbs moisture.

    After talking to the husband of the family about the litany of problems, he stated that his family had lived in the apartment for seven weeks and in that time, had their rent raised from $475.00 to $600.00 a month.

    The tenant informed us that the landlord promised to clean the carpet, fix the stove and install a fan in the bathroom within the first month of their residency. To date, not one problem has been corrected.

    Both the husband and wife tenants have stated that they deplore living in substandard conditions. However, they are fearful of getting evicted by the landlord if they continue to complain about anything related to the apartment.


    QUESTIONS PRESENTED BY THE VALLEJO RENTAL

    PROPERTY ROUNDTABLE GROUP


    1. Why is this program necessary? There is enough sub standard housing to warrant the program and to improve quality of housing stock in Vallejo.

    2. Will the inspections be similar to Section 8? Yes.

    3. Will owners be allowed to attend the inspections? Yes.

    4. Will there be a charge for the inspection? Probably.

    5. Will the owner receive some sort of documentation verifying the passing of the inspection such as a Certificate of Letter? Yes.

    6. How long will the owner be given to correct the problems discovered during an inspection? 24 Hours to 30 Days, depending on the nature of the problem.

    7. Will Section 8 properties have to endure two inspections or will the program accept the inspection done by Section 8 Housing Specialist? Section 8 inspections will be accepted.

    8. Who will be doing the inspections? Code Enforcement with additional Code staff.

    9. Why is this a citywide program instead of just for identified properties? Only a small percentage of the worst properties will ever come to the attention of the City ... .leaving many properties in need of correction for health and safety violations. And, problems exist in all areas of the city... not just one section of town.

    10. How will you generate a database for all the rental properties in Vallejo? Metro Scan managed by Code Enforcement.

    11. If a property passes an inspection will the program re-inspect if there is a complaint made? No. There is an existing process for handling complaints through Code Enforcement of the Building Department.

    12. Will there be a process for complaint-generated inspections? No.

    13. Will the program get involved during a sale? No

    14. Is the inspection involving inside, outside or both? Inside.

    15. How does the program plan to handle a situation where the tenant refuses entry or fails to keep an appointment? If a tenant or landlord refuses to provide entry, the City would be required to obtain an inspection warrant.

    16. Will the program guarantee an inspection requested by the owner after repairs between tenants? This could happen by request of the owner.

    17. Has the committee investigated any other alternatives to this all encompassing one? Yes, the committee has had considerable discussions about this program and found this mode would address Vallejo's issues.

    18. Will business licenses be needed for every single family home (if a person owns more than 1 unit) or will there be one business license and a per unit charge after that as there will be for complexes? The business license issue is not part of the deliberations of this committee. The City is exploring business licenses independent of the rental program.

    19. What is intended for non-complaint owner occupied? This is not an issue for a rental program. Other city ordinances address owner occupied problems.

    20. Has the committee looked into the possibility of a lawsuit as a result of their inspection? Yes, the City Attorney's office has indicated that with the new California Supreme Court ruling on the legality of rental inspection programs, that if carefully drafted the program will withstand any potential lawsuit.

    21. How will the program handle tenants who work and are unable to attend an inspection during the day? Inspectors may be able to take flex time and work on Saturdays.

    22. Will there be consequences to the owner if a tenant fails to keep the appointment or refuses entry? If all avenues of voluntary cooperation are exhausted, the City would be required to obtain an inspection warrant to obtain entry. This is a much more routine process if the City has an inspection process on the books.

    23. Who is responsible for "opening the door" for the inspector? (Keeping in mind that an owner will not have a legal right to enter). The Landlord with tenant pernussion or the tenant.

    24. Will the program be responsible for noticing both the tenant and the owner? Yes, notice to the Owner with a copy to the "Occupant".

    25. Will there be legal protection for an owner whose tenant is uncooperative? (i.e. a tenant claim for retaliatory eviction). If the owner has done their part, the City must take responsibility for gaining entry.

    26. What are the ramifications of not passing the inspection? The owner will be told to do the repairs within a reasonable timeframe, depending on the severity of the problem. If the repairs are not done, fines will be imposed.

    27. How will tenant caused conditions be handled? The Inspectors will notify the owners.

    28. Will the Inspector document tenant caused conditions such as tenant neglect or poor housekeeping? Yes, especially Health & Safety issues, including filth.

    29. How did this program come into being? The number one priority of the City Support Structure subcommittee of the economic vision process is to develop and implement a comprehensive program to ensure code compliance for rental property and landlord accountability. This is to be accomplished by developing, passing and implementing a new city Program.

    30. What jurisdiction will the program fall under (Beat Health, etc.)? Code Enforcement.

    31. What will be the fine structure? Fines will be consistent with current policy: Currently the process calls for a warning, then move to the following fines in sequential order--$250, $500 and $750.

    32. Will the program be concerned with who does the repairs? Can an owner do their own work if they choose or have a handyman, etc.? In some cases a permit will be required (yet to be determined what will need permit). In non-permit situations, inspectors primary concern is for problems to be abated.

    33. Will the owner be required to pull permits for minor repairs? This group is not recommending any additional permitting as a result of rental inspection above what already exists in the City process.

    34. Has the committee looked carefully at other cities that have had a similar program and investigated how successful they have been? Yes, review of strengths and weaknesses has been done and continues as new programs come on line.

    35. How often will inspections be made? Depends on how well the first inspection went. If very few problems, according to the point system, then re-inspection could be as long as five years later.

    36. Will you refer an illegal unit to the building inspector? Yes.

    37. If drugs are observed, will VPD be informed? It is possible, it depends on the nature of what is observed. For example, a bathtub full of methamphetamine may create more concern than a marijuana pipe.


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