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HomeMy WebLinkAboutMN-RHAC-2013-02-20RENTAL HOUSING ADVISORY COMMISSION MINUTES February 20, 2013 Present: Richard Cowen, Larry Beck, Monica Moll. Rob Flaherty,Mitch Paine, Graham Kerslick, Guests included: Stephen Smith and Carole Fisher Minutes from 16 January 2013 RHAC were not available to approve. No objections or concerns were raised. Discussion of a Timetable for renewing leases included, that this need is primarily for larger apartments in student oriented housing, and does not apply to other sections of the City. The length of time for a property owner being required to wait to show or renew a lease is considered a burden for some owners, and is considered by them to be an intrusion into a private contract. Tenants can feel that a decision to renew soon after beginning a lease to be stressful or too early. The sense that a time period for owner and tenant to become acquainted and make an informed decision about a renewal is appropriate. Owners can feel pressure to lease larger apartments while potential tenants are looking, in order to avoid an empty apartment or having to parcel individual rooms to unacquainted individuals. Further discussion will follow before any resolution can be created. Discussion of future City sidewalk ordinances' impact on owners' expenses and tenants' future rent affordability included City responsibility of a public Right of Way, curb tree damage to sidewalks and the City's liability for tree placement and damage to sidewalks. Discussion of annual fees from all tax parcels to fund sidewalk repair, and sidewalk districts were suggestions of funding a public Right of Way currently a cost to the individual property owner. Discussion of outreach to stakeholders included members attending existing stakeholder groups' meetings rather than creating an RHAC forum for various groups. Mitch Paine has resigned co- chairmanship,in order to serve on the Board of Public Works, but remains on RHAC. Rob Flaherty will serve as Co- chair. Director of Cornell Cooperative Extension Carole Fisher will apply to join the RHAC. Other positions are needed to fill current vacancies on the RHAC. The 20 March 2013 meeting at 5:15 PM will be chaired by Rob Flaherty. Meeting adjourned at 6:25 PM Respectfully Submitted, Larry Beck Co -Chair Proposed Amendment to City of Ithaca Code Chapter 258 - Rental Housing. Renewal of rental agreements; notification to tenants. What's the problem? We are seeing an increasing number of complaints from students, and other rental tenants, that they are facing unreasonable pressure to sign leases earlier and earlier each year. In many cases renters are signing leases 12 months before the lease actually starts. Tenants are also experiencing pressure from landlords to renew existing leases almost as soon as they move into rental units. Some landlords claim they are simply responding to demands from prospective renters to show properties earlier each year. Others suggest that these demands can be counterproductive, leading to ill formed decisions, which can lead to tenants attempting to get out of leases early. Many groups including the Cornell Collegetown Student Council and the City's Rental Housing Advisory Commission have discussed this issue in recent months. The Commission has suggested that a proposal be developed to provide tenants and landlords with a period of time before leases are renewed or rental apartments are shown for the next renting period. An important factor contributing to this problem is high demand for rental housing. According to data from the 2010 Census 74% of Ithaca's housing units is renter occupied. The vacancy rate for this rental housing market is very low (2.4%for the City, 6.8% average for NYS), and in some neighborhoods the vacancy rate is even lower. While in the long term increased development will alleviate this problem it is unlikely to resolve the problem, especially in high demand areas, such as Collegetown and South Hill. What is being proposed? Landlords will be required to provide 60 days written notice before (i) renewing current lease, (ii) showing property to prospective new tenants or (iii) signing a lease with new tenants. This notice can be given at any time during the lease period, beginning at the start date of the lease. This period of notice will not be required if landlord and tenant mutually agree, in writing, that they waive this requirement. This may happen, for example, when tenants know in advance of signing a rental agreement that they are not interested in renewing a lease. What is the intent? The intent of the proposal is to provide tenants and landlords with an opportunity to make better- informed decisions regarding rental agreements. The proposed notification to tenants is intended to provide "breathing space" to both renters and landlords. Renters will have the opportunity to experience their actual living situation before making longer-term lease commitments. Landlords will have the chance to learn more about current tenants and will also be able to advise prospective tenants regarding requests to view apartments and sign leases. While the proposal requires landlords to provide the notification it is also intended to provide a clear message to renters that they should not press landlords to show apartments in an untimely manner. Will this resolve the problem? The proposed notification period will help renters and landlords make better-informed decisions before signing rental agreements. When combined with increased information about rental housing and future development it will reduce the pressure being experienced in the rental housing market. Improving access to information and the exchange of information about the rental housing market will also help alleviate this problem. The Rental Housing Advisory Commission, student organizations, off-campus housing offices and other groups can play a significant role in this effort. In the longer term increased development of well-designed, well-built rental housing will also help reduce pressures in the rental housing market. Proposed Amendment to City of Ithaca Code Chapter 258 - Rental Housing. WHEREAS the City Code of Ithaca (§ 258-1.B.) currently recognizes that "Equitable landlord- tenant relations are a matter of public welfare", and WHEREAS there is increasing concern that conditions in the rental housing market are placing unreasonable pressures on renters and landlords, and WHEREAS the City recognizes that increased development of rental housing will probably help reduce these pressures, and WHEREAS the City does not seek to impose unnecessary constraints on the rental housing market, but wishes landlords and tenants to have the opportunity to make well-informed decisions about rental agreements; now, therefore, be it RESOLVED, That the following be added to §258 of the City Code, § 258-3. Renewal of rental agreements; notification to tenants. Landlord shall provide 60 days written notice to current tenants of a residential unit before doing any of the following: a) renewing the current rental agreement b) showing the residential unit to prospective new tenants c) entering into a rental agreement with new tenants Such written notice may be provided at any time during the rental agreement period, from the effective start date onwards. This provision of notice shall not apply under any of the following conditions: 1. The current rental agreement period is less than nine months. 2. A summons and complaint to recover possession of the premises has been filed and served on the current tenant in accordance with all applicable laws and rules. 3. Landlord and tenant mutually agree, in writing, to waive the notice period. § 258-4. Penalties. Any landlord or agent who violates any provision of§ 258-3 shall be liable for a civil penalty of up to $500. Factors to be considered when assessing the fine would include the number of tenants, number of units on the property etc.