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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 20, 2007 <br />TITLE: <br />PUBLIC HEARING - CONTINUATION OF <br />THE PROACTIVE RENTAL ENFORCEMENT <br />PROGRAM (PREP) <br />i <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1~' Reading <br />^ Ordinance on 2ntl Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />1. Approve an ordinance to extend the $17.50 per unit annual rental <br />inspection fee and extend the Proactive Rental Enforcement Program <br />(PREP) for four years. <br />2. Approve continuation of the Gold Seal Incentive Program and funding <br />to recognize exemplary rental properties. <br />DISCUSSION <br />The Proactive Rental Enforcement Program (PREP) was initially approved by <br />the City Council in 1992 in response to a study prepared by community <br />leaders. The study, entitled the "Mayor's Task Force on Neighborhood <br />Standards and Preservation", proposed establishing a systematic proactive <br />rental inspection program to address poorly maintained rental properties <br />that were negatively impacting the quality of life of tenants and <br />surrounding residents. After an extensive series of negotiations between <br />representatives from the City, the rental housing industry and the real <br />estate association, a program and operational guidelines were agreed <br />upon. The program was to be compliance driven versus punitive and would <br />sunset in December of 1999. Upon completion of inspections in several <br />designated neighborhoods and one round of city-wide inspections, the <br />program was twice renewed for four years, first in 1999 and later in <br />2003. <br />When the PREP program was initially approved, the rental housing industry <br />requested a provision be included that would reward rental owners who <br />have displayed exemplary maintenance and management practices, and who <br />have not created service demands from Community Preservation or the <br />Police Department. This provision was labeled the Gold Seal Incentive <br />Program. The primary benefit for rental owners who can successfully <br />complete a three stage qualification process and receive Gold Seal <br />recognition is an exemption from the annual $17.50 per unit fee for a <br />period of four years. Through 2006, three Gold Seal application periods <br />75A-1 <br />