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Continuation of PREP <br />September 6, 2011 <br />Page 2 <br />The primary benefit for rental owners who can successfully complete a three stage qualification <br />process and receive Gold Seal recognition is an exemption from the annual which initially was <br />$17.50 per unit fee for a period of four years. The annual PREP per unit fee of $17.50 was <br />increased in 2010 to $19.50 due to increasing costs to administer the program. The increase in <br />revenue also reduced the amount of expenditures not funded by the PREP fee were accounted <br />for in the Planning and Building Agency's operating budget. <br />The exemptions for rental owners currently participating in the Gold Seal program are scheduled <br />to sunset along with the PREP program in December 2011. An early continuation of the program <br />by the City Council will allow time for a Gold Seal application period to be conducted in 2011 and <br />no break in rental fee exemptions for those that can re-qualify. <br />The present funding for the Gold Seal program is $110,000, which provides for 5,640 units to <br />receive exemptions from the $19.50 per unit annual fee. <br />The primary concentration of the PREP inspections is on the exterior maintenance of rental <br />properties, such as poor landscaping, unsightly paint, damaged fencing, illegal storage or <br />inoperable vehicles. Should a condition be observed that leads to suspicion of a more serious <br />issue being present on the property, or within the structure, a thorough inspection is conducted. <br />The PREP team also responds to all complaints received by Community Preservation pertaining <br />to rental properties. <br />As awareness of the PREP program has grown, rental owners understand their properties will be <br />routinely surveyed. This has led to an increasing number of owners regularly monitoring their <br />properties and correcting unsightly conditions as they may occur. Unfortunately, another sizable <br />number of rental owners still does not demonstrate diligence in their management and lets their <br />properties to repeatedly regress into eyesores. These are the properties requiring continued <br />regular proactive inspections by the PREP staff. Each year, PREP inspectors survey one-fourth <br />of the City, using the Police reporting districts as a guide. All rental housing in the quadrant is <br />surveyed and those with deficiencies are issued notices to correct the conditions. The on-going <br />challenge for PREP is to maintain improvements made in the completed areas, while moving on <br />to conduct inspections in the next quadrant. Properties that rapidly deteriorate generate most of <br />the complaints received by the PREP staff. <br />Due to the proactive nature of the program, inspectors have addressed conditions of the rental <br />properties before adjacent impacted neighbors are compelled to file a complaint. The on-going <br />challenge for PREP is to maintain improvements made in the completed areas, while moving on <br />to conduct inspections in the next quadrant. Properties that rapidly deteriorate generate most of <br />the complaints received by the PREP inspectors. <br />75A-2