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HomeMy WebLinkAbout94-026 - Gold Seal Incentive ProgramOO5 RE[.: 6/8194 RESOLUTION NO. 94-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING THE "GOLD SEAL INCENTIVE PROGRAM" TO PROVIDE FOR THE CERTIFICATION OF RESIDENTIAL RENTAL PROPERTY AS QUALIFYING FOR EXEMPTION FROM THE BUSINESS LICENSE SURCHARGE WHEREAS, the City Council, by its Ordinance No. N$-2173, adopted August 17, 1992, adding section 21-120r.1 to the Business License chapter of the Santa Ana Municipal Code, imposed a surcharge on the business license fee for the business of renting residential property in order to raise funds to pay for the cost of maintaining a Proactive Rental Housing Code Enforcement Program; and WHEREAS, Ordinance No. NS~223, pending adoption by the City Council, will amend Santa Aha Municipal Code section 21-120r.1 to allow the City Council to establish by resolution a program whereby particular residential properties or residential apartments may be certified as having met standards of excellence in property maintenance and thereby exempted from payment of the abovesaid surcharge for a three-year period; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: 1. The "Gold Seal Incentive Program," as set forth in Exhibit 1, attached hereto and incorporated herein, is hereby approved and adopted as the abovesaid program authorized by Santa Aha Municipal Code 21-120r.1 as amended. 2. The Task Force referenced in the "Gold Seal Incentive Program" shall be the task force previously formed in the approval by City Council on August 3, 1992 of the policy statement outlining the parameters of the Proactive Residential Rental Housing Enforcement Program. 3. The total exemptions granted from the residential rental surcharge shall not exceed $50,000 in fiscal year 1994-95. In subsequent fiscal years, total exemptions shall not exceed such limits as may be established by the City Council. ADOPTED this 20th day of June , 1994. ATTEST: ~e~eo~ ' t~Ycou/nci ~/ Mayor COUNCILMEMBERS: Young Aye Pulido Aye Lutz Aye McGuigan Aye Mills Aye Moreno Y~ Richardson Absent APPROVED AS TO FORM: Edward City Attorney 008 CERTIFICATE OF ORIGINALITY & PUBLICATION State of Cahfomia County of Orange I, IANICE C. GUY, Clerk of the Council, do hereby certify the attached Resolution City of Santa Aha to be the original resolution adopted by the City Council of the Date: Clerk o, th~ Co,nc,, ~ City of Santo Arm 007 Proactive Rental Enforcement Program GOLD SEAL INCENTIVE PROGRAM OUTLINE BACKGROUND The Incentive Program is a mechanism that would positively affect the quality of rental housing in the City of Santa Aha. The program would provide both a monetary and marketing incentive for rental property owners to abide by a set of minimum criteria - criteria that is, in some cases, over and above that which is required under law. Monetary Incentive - Owners of rental property who apply for the Incentive Program and meet its requirements will be exempt from the rental inspection surcharge for a period of three tax years. Marketing Incentive - Owners of rental property who apply for the Incentive Program and meet its requirements will be presented with materials to utilize when marketing their units. ELIGIBILrlW All rental properties in the City of Santa Ana which hold a current and paid business license are eligible for the Incentive Program. A property with any of the following conditions is ineligible for the Incentive Program: 1) No business license 2) Unpaid business license fees or surcharges 3) Outstanding A or B category code violations Application Fees - No application fee will be charged at the beginning of the program. After the first 100 applications have been received and processed the Rental Housing Task Force, in conjunction with city staff, will evaluate whether or not an application fee should be charged as a disincentive for frivolous filings. OUALIFY1NG for the INCENTIVE PROGRAM In order to qualify for the Incentive program, a rental property owner must pass all parts of a three-stage process. Stage One - The rental property owner will notify the city that he wishes to apply for the Incentive Program and fill out the appropriate application. This will initiate a review and evaluation of the property's management practices. Owners will be asked to provide the necessary information and documentation to verify that they currently adhere to the following five good management practices (specific criteria necessary for verification of the following "good management practices" shall be outlined in the program implementation policy): Exhibit I - Page I Good Management Practices: 1) 2) 3) 4) 5) Owner abides by all fair housing laws Owner uses some formal method to screen all potential residents Owner shall utilize a written rental agreement that contains specific criteria Owner utilizes written "House Rules" Owner performs "walk-throughs" at the beginning and end of each tenancy Each management practice must be passed in order to advance to Stage Two and is subject to on-site verification during the Stage Two inspection. Stage Two - Only owners who have passed Stage One of this program will be eligible to initiate Stage Two. This stage consists of an exterior inspection of the property and verification of the current use of the good management practice materials submitted by the owner during Stage One. The criteria for this exterior inspection is attached (see Appendix A) and the inspector evaluating the exterior conditions will do so with the goal that such conditions should be in an "above average" to "superior" condition and collectively the property should be in exceptional condition. The criteria and/or specific materials necessary for the on-site verification of the good management practices shall be outlined in the program implementation policy and the property owner shall be made aware of the materials necessary prior to the Stage Two inspection. This exterior inspection consists of 50 items, each worth two points. An owner must achieve a score of 100% on the "must pass" items and have an overall score of 85% or better in order to pass Stage Two and advance to Stage Three of the Incentivve Program. Stage Three - Only owners who have passed Stage Two of this program will be eligible to initiate Stage Three. This stage consists of an interior inspection of rental units at time of turnover. The criteria for this inspection is attached (see Appendix B) and the inspector evaluating the interior conditions will do so with the goal that such conditions should be in an "above average" to "superior" condition and collectively the property should be in exceptional condition. A Maximum°of 10% of the dwelling units in the complex (rounded tip on any fraction) will be inspected (but no less than one unit). The units to be inspected will be selected by the inspector from a list of at least 20% of the units on the property (vacant and/or occupied) selected by the ownef). This interior inspection shall consist of 40 items, each worth two points. Thus a score of 80 points is possible for each nnit inspected and an owner must achieve a score of 85% or better to achieve passage of this stage of the Incentive Program. Prioritization of Applications - Applications will be reviewed in the order they are received. Incentive benefits will be awarded on a first come basis by qualification date. Twenty p~reent of the properties qualifying for the benefits must contain 15 units or less and 20% must contain 16 units or more. The remaining sixty percent may be from either category. Exhibit I - Page 2 009 Applicants whose properties qualify for the Gold Seal beneQts but who cannot receive reimbursements due to a lack of available funding will be placed on a priority list by certification date. Should funding become available, these priority applicants will only be required to pass a Stage 1 inspection to qualify for the available funds. The three year certification period will begin on the date they pass the Stage t criteria. ' ' Final Qnal(fication: Awarding of the "Gold Seal" - Only owners who have achieved passage of all three stages will qualify for the ~nonetary and marketing incentives granted to exceptional properties under the Gold Seal Incentive Program. Once granted, the Gold Seal will be valid for three (3) years and will run with the property, not with the ownership, during that time. However, it is the responsibility of the new owner to notify the City of the transfer of ownership and to continue to meet the obligations of the program. After 3 years, in order for a property to continue to receive the benefits of the Gold Seal Incentive Program, the owner must reapply for the program and completely requalify through the process outlined in this document. Delay Exemptions - Applicants who fail to meet the October 31st (see "Implementation Policies and Procedures" - Application Processing, Item 6) qualification deadline to be certified for the Gold Seal benefits may be qualified for the award when the applicant can provide proof to the Task Force that a processing delay on the part of the City was the cause for them missing the deadline. Qualification Exemption - On occasion a property may be documented to have exemplary management practices, but such efforts are negated by special circumstances beyond the owner's/manager's control (such as property location, gang activity or external vandalism) which prevent the property from qualifying. In some rare cases and only at the discretion of the Rental Housing Task Force, certain properties may be qualified for the benefits of the Incentive Program because of special circumstances. Loss of Incentive Program Privileges - If a qualified property has deteriorated to the point that it is no longer exceptional, the Proactive Rental Enforcement Program staff may choose to re-evaluate the property and, if necessary, may request that the l~ental Housing Task Force revoke the property's Incentive Program privileges. Program privileges would cease on the date revocation occurs. When a property's privileges are revoked, the property owner will be billed for the amount of the incentive refund, prorated from the time privileges are revoked to the end of the tax year. Such properties would not be eligible for the Incentive Program benefits for a period of one calendar year, beginning on the date of revocation. Property owners whose privileges have been revoked may reapply during the year they are on suspension, provided they apply after May 1st and prior to July 31st. If the property qualifies for Incentive Program privileges, the privileges will not be effective until the end of the one year suspension and the business tax refund will be prorated to reflect the months for which the property is ineligible. Appeals - Those owners who have applied for the Incentive Program but do not qualify or have failed may appeal such decisions to the Rental Housing Task Force. The decision of the Rental Housing Task Force shall be final. Extdbit I ~ Page INote: Proaaive Rental F. nforc~nent Program VIOLATION CHECKLIST Inspector must verij~ use of Stage I forms atld procedures prior to initiating Stage 11 inspection of property. EXTERIOR PROPERT~ AREA~ / COMMON .aREAS [] [] [] 0 [] [] Must Pass [terns Poor landscaping (dirt areas, unsightly, dead tre~, o~rgrown yards). Excessive chipped/peeling paint. Gcaffiti. Damaged/unsightly fences. Unanthoiized enclosed balconies/patios. Unpermined/illegal lock on required exit. Deteriorated roofing. Exc~sive broken sprinklers. Torn window/door screens. Uneven sidewalks. Illegal fences. Unsightly window coverings. Dirty/deteriorated driveways:' Excessive oil on driveways. Excessive/unsightly storage on balconies/patios. D~ing clothes on fences or bushes. Loitering on proper?. House furniture in common/public areas. Remaining evidence of sewage spill. Excessively dirty building exterior. Unsightly carports, Inoperable vehicles, Vehicles for sale. Street or unit numbers missing. Banners without permits. Storage on roof. Broken/missing mailboxes. Cracks or holes in siding. Excessively dirty pools. 0 0 0 0 0 [] No manager office sign. Inoperative exit signs. Businesses on property without proper permits. Dirty common/play areas. Unsightly roofing. Dirty awnings. Excessive trash/debris on grounds. Excessive trash lying in enclosure. Exc~sive grease buildup in enclosure. Dirty trash bins, Trash containers in unapproved locations. Unapproved security screen doors. Fire extin~ishers missing and/or enclosure(s) broken. Leaking plumbing. Excessively dirty sidewalks. Hazardous electrical comikion(s). Damaged exterior doors. Damaged shutters. Railings/posts in ne~ of paint. Loose/unsafe hand or ~ardrails. Dangerous/unsafe stairs. APPENDIX A ~-~ 0 1 1 VIOLATION CI CKLIffI' Mus~ Pass l~ems Uncapped gas llne(s). Lack of hot/cold running water. Sleeping in closet or kitchen, Unapproved/uusafe light fixture(s). Unlicensed commercial activity in unit. Unapproved security bars on windows. Illegal lock or latch on exterior door(s), Lock and/or hasps on bedrobm door(s). Clogged/leaking plumbing. Inoperative electrical outlet(s)/improper wiring. Severely deteriorated floor coveting /sub-flooring. Lack of/inoperable heating. Smoke detector(s) inoperative/not provided, Unapproved structural alterations. Coclcroach/rod~m infestation. Missing/severely damaged switch/plug cover(s). Broken mb/shower glass. Electrical appliance(s) used in unapprovexi exterior location. Unsightly balcony storage. Laundry drying on patio or balcony. Trash chute and/or surrounding area in insanitary condition. Deteriorated/water damaged interior wall(s). Deteriorated/watar damaged ceiling(s). Dire need of paint on interior walls, Severely deteriorated cabinets Or drawers. Blocked bedroom emergency exit(s). Cover plates missing on w~il heater. Damaged interior door(s). P~eling paint on walls or ceilings. Unrented fuel burning heater. Grossly deterioratedlinsamtary countertops. Deteriorated/unsafe stair treads. Inoperative bathroom ventilation. Unpermitted water heater changeOut. Interior of unit filthy/insanitary. Occupants in unit exceed number on rental agreement. Items hanging from sprinkler heads and/or lines. Deteriorated window covering. Inoperableiinsanirary kitchen exhaust vent. Deteriorated patio/balcony decking.