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05-21-2019 Rental Inspection PogramRental Housing Inspection Program Update City Council May 21, 2019 1 Program Purpose To prevent and address issues in order to preserve and enhance rental housing quality. A rental inspection program will be a tool to preserve and improve the housing stock in the City of Federal Way. 2 Regional Housing Data Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates *Time period is 4 years, not 10 years Notes: -Age of Housing- the majority (over half) of housing was built in 1980 or later with very little built prior to 1960. -Estimate of units built 2014 or later is low; we will update this with more accurate numbers based on certificates of occupancy. This is likely true for the other jurisdictions as well. 3 Regional Housing Data Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates Notes: -There is no significant difference between Federal Way and other jurisdictions though Federal Way has a slightly higher percentage than the other jurisdictions in units with 3 or 4 units and 5 to 9 units. 4 Regional Rental Housing Inspection Programs Staff analyzed rental housing inspection programs of regional jurisdictions. These include: Auburn Bellingham Bremerton Burien Kent Lakewood Pasco Renton Seattle Tacoma Tukwila Staff has conducted a program analysis of the following jurisdictions: 5 Program Analysis: Inspection Frequency Annual: Auburn, Bremerton, and Renton 2 Years: Pasco 3 Years: Bellingham, Burien, and Kent 4 Years: Tukwila 5 Years: Lakewood 10 Years: Seattle Complaint Only: Tacoma 6 Program Analysis: Inspectors Most cities allow both city inspectors or qualified third party inspectors: Bellingham, Lakewood, Pasco, Tacoma, Seattle, and Tukwila. Qualified 3rd party inspector: Bremerton, Kent, and Renton. City inspection only: Auburn. Cities that allow both city inspectors and qualified third party have varying policies of when one or the other may be used. For example, Lakewood offers city inspectors for any inspection, but the landlord may elect to use a third party. Tukwila only allows city inspections for properties with 4 or fewer units. Jurisdictions use a variety of qualifiers for third party inspectors from certifications to completion of a city provided training. Auburn is the only jurisdiction that has only city inspections. 7 Program Analysis: Registration Fees The fee structure varies from city to city. Four fee structures are used: Fees based on the number of units at a property; Auburn, Bellingham, Kent, Tukwila Fees charged per unit: Lakewood, Seattle Rental income: Tacoma Flat rate registration fee per landlord: Bremerton 8 Program Analysis: Complaint Process The complaint process varies from city to city, but most commonly includes code compliance in the process. 9 Program Analysis: Exemptions Common exemptions include: Units unavailable for rent; Units with certificate of occupancy within past four years and no code violations; Emergency or temporary shelters; Accommodations with transient guests/occupancy (hotels, motels, inns, short-term rentals, etc.); Housing units with state licensing; Rental units owned, operated, or managed by a government agency; and Units inspected by an entity such as a housing authority provided the inspection meets or exceeds city’s requirements. 10 Resources Required Based on initial program analysis, it is estimated that 1.5 FTE will be needed, depending on the final program parameters. The program is likely to have other overhead costs such as vehicle(s), technology, equipment, etc. The intent is to have the program be self-sustaining without long term tax payer support. 11 Determining Fees and Staffing Needs Program elements impacting staffing and needed resources include, but are not limited to: Exemptions; Inspection frequency; and Inspection process – third party vs. City. -Elements are not linear/are dependent on one another. -Approaches: Start with anticipated staffing to determine program components Establish program components to determine the staffing needs and program fees. -Anticipate using both methods to make recommendations and present options. 12 Questions? City Council May 21, 2019 Rental Inspection Program Update Staff Contacts: Brian Davis, Community Development Director Sarah Bridgeford, CDBG/Human Services Coordinator 13