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HomeMy WebLinkAboutMN-RHAC-1992 0ecL Nor ajf MINUTES ITHACA RENTAL HOUSING COMMISSION MONDAY, JANUARY 13, 1992 COMMON COUNCIL CHAMBERS The meeting was called to order at 5:05 p.m. • Present: Pierre Clavel, Ed Dormady, John Efroymson, Carol Mallison, Pam Zinder, Joan Bailey, Terry Pasco Absent: Mark Finklestein, George Frantz The agenda was amended to include appointment of new Commission members to working groups. PUBLIC COMMENT: Comments from many members of the public were made to the Commission in response to the Policy Working Group 's proposal for Rental Housing Officer/ Security deposit legislation. (see memorandum, date December 18 , 1991 ) APPOINTMENT OF NEW MEMBERS: Joan Bailey was appointed to the Information Working Group. Carol Mallison requested an updated list of Commission Members, length of terms, and working group assignments. POLICY WORKING GROUP PROPOSAL--RENTAL HOUSING OFFICER: Proposal was moved by Pierre Clavel , seconded by John Efroymson. The three components of the proposal were explained by Pierre. Lengthy discussion followed. Amendments : • Sec. 3 (a) 4 ; insert and add after estimates "available at that time" and "This will not preclude the landlord from later proving additional damages which she or he was not reasonably able to obtain in the 30 day period. " Moved-- John E. Seconded-- Approved Amendments moved by Carol Mallison-- Findings (30) substitue phrase "over a hundred cases" Sec. 3 (a) 1 ; Substitute phrase "prior to occupancy" Sec. 3 (a) 2; substitute phrase "Within 7 days" Sec. 3 (a) 1 ; delete "including those for which deductions from the previous tenant ' s security deposit were made" Seconded by Pierre Clavel . Approved Terry Pasco moved to separate the provisions of Rental Housing Officer (sections 1 and 2 ) and to vote on the Security deposit provision (section 3) independently. Seconded Approved 3 yes; 2 no; 2 abstained. Vote on Security deposit resolution--5 yes; 1 no, 1 abstained Terry Pasco moved to table action on Sections 1 and 2 until next meeting. Seconded Approved Meeting concluded with public comment. Carol Mallison stated that it has been alleged that people have difficulty filing claims through the small claims court process. However, we have heard no testimony from anyone that they have had problems with small claims court. Pierre Clavel stated that he wished to register disagreement with Carol ' s statement. Meeting adjourned at 8 :50 p.m. --submitted, Terry Pasco MEMO DATE: January 15, 1992 TO: Rental Housing Commission RE: Security Deposit proposal At the Rental Housing Commission meeting, held January 13, 1992, a motion was made to take the Policy Working Group's proposal and pass it on to Common Council. Then, during discussion, numerous revisions were recommended and approved for the Security Deposit section of the proposal. As a result of the enthusiasm of several Commission members, a vote was taken and carried to approve sending the Security Deposit section of the proposal along to Common Council. In doing so, this part of the proposal is being recommended without benefit of the following: • the input of absent Commission members Mark Finkelstein and George Frantz. • time to consider a memo written to Commission members by Martin Shapiro (prior City Attorney for eight years) and delivered that evening. • time to consider Public Comment made at the end of the meeting. • approval of the section regarding a housing officer, which is later referenced in the Security Deposit section. • seeing the final document. No Commission Member has seen or reviewed the final Security Deposit proposal as it was revised at the meeting on the 13th. As representatives of the public at large, we owe it to the community to complete the basic homework necessary to recommend a proposal of merit. Sending the Security Deposit proposal to Common Council now, without benefit of the above steps, is an irresponsible mistake and is premature. As a result, we ask you to approve a reasonable request to review the Security Deposit proposal, in its revised form, at the next Commission meeting. CE1 D COMMUNITYRESOLUTION DISPUTE CENTER TO: John Efro so,R, y, FROM: Judith S � 1 DATE: Februar , 992 RE: Data on Land ord-Tenant Caseload LANDLORD TENANT CASELOAD FOR CALENDAR YEAR 1991 Total Landlord-Tenant Cases Handled: 188 Successfully resolved: 74 or 39% Unresolved - one or more party refuses : 73 or 39% Unresolved - unable to contact one or more party: 27 or 14% Most cases are not yet in court: 102 or 54% of total Successfully resolved: 43 or 42% Unresolved - one or more party refuses : 46 or 45% Unresolved - unable to contact one or more party: 3 or 3% Some cases are referred after Court filing: 71 or 38% of total Successfully resolved: 22 or 31% Unresolved - one or more party refuses : 23 or 32% Unresolved - unable to contact one or more party: 23 or 32% Our current tracking procedures do not allow us to provide the following information: - which cases involve security deposits, - whether it is the landlord or tenant who requests CDRC' s assistance or files in court, - whether it is a landlord,,,who refuses to cooperate or is unable to be contacted. c(-4� Staff estimates that between two-thirds and three-quarters of court-referred cases involve security deposits and about half of other cases involve security deposits. 124 The Commons Ithaca, New York 14850 (607) 273-9347 A Recycled paper t a MEMORANDUM RECEIVED 7. To: Common Council Date: February 3, 1992 From: Rental Housing Subject: Security Deposits Commission Finding: There is a serious housing shortage in Ithaca affecting rental housing: 1. The ratio of median rents to median income increased markedly from the 1980 to 1990 census, and was consistently higher than the state average and all surrounding counties; 2 . A meeting with renters (Renter's Speak-Out, July 1991) indicated widespread concern on the part of renters; 3 . Testimony before the Commission has indicated a high level of renter-landlord conflict in the city -- over a hundred cases per year in small claims and city court; with return of security deposits a major issue. Therefore, the Rental Housing Commission proposes the following actions by City Council: 1. Security Deposits. The city should establish enhanced security deposit regulation, within the constraints of state enabling legislation. Steps recommended by the Commission include: a) The property landlord and tenant shall follow a written check-in and check-out procedure: 1) Prior to occupancy (transfer of keys) , the landlord shall inform the tenant that the tenant may inspect the dwelling unit and notify the lanlord of any damages or defects which existed before the begining of occupancy. The landlord shall furnish a written checklist in a standard form provided by the city, including an itemized description of any damages or defects. There should also be a place for both landlord and tenant to sign, indicating approval of the check-in information. A dated, signed copy shall be retained by both parties for purposes of assisting in the resolution of the deposit situation at the end of the lease. Any disagreements may be referred to the rental housing officerl for a factual determination to be added to the record by either or both parties. 1 "Rental housing officer" as proposed by the policy working group of the RHC has not been ratified by the full Commission. ; r February 3 , 1992 Page 2 2) Within 7 days after the commencement of tenancy, either the landlord or tenant shall, upon discovery of damages or defects not included in the original checklist noted in SEC. 1 (a) (1) , immediately notify the other party in writing with reference to the original checklist. Any disagreements may be referred to the rental housing officer2 for a factual determination. 3) At the end of tenancy, the landlord provides a check- out form comparable to check-in forms, containing a clear place for the tenant's forwarding address, and for both to sign. 4) The landlord who has accepted a security deposit must, after termination of tenancy, provide to the tenant as soon as possible and within not more than 30 days, either in person or by mail, either: (1) the full security deposit; or (2) an itemized statement showing the reasons for withholding all or part of the deposit, receipts and estimates available at that time, and forwarding any balance of the deposit. This will not preclude the landlord from later proving additional damages which she or he was not reasonably able to obtain in the 30 day period. 5) Disagreements between landlord and tenant pertaining to items covered in SEC. 1 may be referred to mediation: parties are strongly encouraged to go through the mediation process if requested. b) The security deposit is the property of the tenant until proven otherwise. It is the landlord's burden to prove compliance with the provisions of SEC. 1, or forfeits right to security deposit. c) In the event that the landlord has unreasonably failed to return all or part of the security deposit, treble damages and reasonable attorneys' fees may be awarded. Failure of either tenant or landlord to comply with procedures listed in SEC. 1 (a) may be a factor for the court to consider.The failure of the tenant to comply with the check-in, check- out procedure is a factor which the court may consider in assessing the credibility of the tenant's claim for return of security deposit. 2 "Rental housing officer" as proposed by the policy working group of the RHC has not been ratified by the full Commission. M February 3, 1992 Page 3 d) Past practices of the landlord regarding return of security deposits may be a factor in awarding treble damages and attorneys' fees. e) Repeated failure to comply with security deposit sections of ordinance may be cause for court to impose punitive fines. f) Section (1) does not apply in the case of tenants who are not required to pay a security deposit. g) Section (1) (b. . .e) do not apply in the case of tenants who have failed to pay the full rent required in the lease by the time of the end of tenancy. cc: Rental Housing Commission Mayor's Office City Attorney 1 ' &errec tee( app recd 311V172- RENTAL HOUSING COMMISSION .Vail L. 2/19/92 cuNcfeav (1/ ev,hrea PRESENT: Joan Bailey, Pierre Clavel, Ed Dormandy, John Efroymson, Mark Finkelstein, George Franz, Carol Mallison, Terry Pasco, Pam Zinder PUBLIC: Jan deRoos, Orson Ledger, Carol Schmitt, Ron Schmitt, Mark Goldfarb, Tim Terpening, Gordon Van Nederyun, Jr. Rider, William Olney, T.J. Johnson, Barbar Macera, John McPherson, Lori Teichman, Dan Hoffman, Chris Garcia, Barbara Blanchard, Larry Beck, Peter Dieterich, Myra Malkin, Karen Peterson Prior to Public Comment: The RHC discussed several issues at the beginning of the meeting. One of them being who should take minutes at the meetings. John E. said the City cannot give us a secretary to take the minutes. 1 Minutes were not approved for January since it appeared that all motions from last month were not included in the minutes. Will discuss them next month. Carol made a motion to end the meeting at 9 p.m. It was seconded and passed unanimously. Carol inquired to who was the co-chair. It appears she is still the co-chair. Future meeting time was agreed upon to be the second Wednesday of the month between 5 p.m. and 7 p.m. Ed will send appointment periods of the Commissioners with next month's agenda. Public Comment: *Mark Goldfarb read the letter from Neal Howard dated 2/13/92. *Ron Schmidt voiced his concern for the proposal. He was against it because it will become more difficult for tenants to move in during the night if a check in is required before receiving the keys. *Gordon Van Nederyun called the commission a kangaroo committee. Feels we are driving a wedge betweem landlords and tenants which will not improve housing. Mentioned that other information is available within the community, for example Cooperative Extension. Feels we need education. *Larry Beck stated that the $4 was a user fee for tenants. Meeting: Joan made a procedural point regarding the letter that 5 Commissioners signed and sent to Common Council. She suggested that we need some clear concrete rules on how meetings should be held. Joan and Terry agreed to draft some procedural rules to be examined at the next meeting. Joan mentioned that she looked through the surveys she conducted last summer for the Resource Guide, and that security deposits were the number one problem stated by these agencies. Next we discussed the security deposit proposal: 1. John E. : Wanted to change a statement in the proposal regarding the Rental Housing Officer. -and ''' baged from Vii° }t -tTfr er to_disagreement. Overall, he feels it is a good proposal but the City Attorney, staff, and Common Council will need to iron out the bugs. (Not John's words, although that is what he was saying) As far as punitive damages, it should only be enforced where there are blatant problems. John also did some investigating and found that between Jan. 9 and Feb. 6, Small Claims heard 16 tenant cases regarding security deposits, ii evictions by landlords, and 16 landlords suing for damage or nonpayment of rent. The Community Dispute Center in 1991, heard 188 cases regarding landlord/tenant issues. Many of these cases are referred by the court. John feels that many tenants do not come forward with their housing problems because they fear retribution. Joan: Agreed with John on many of his points. Joan feels that the local agencies should not bear the total burden of this problem. Mark: Gave Ed credit for meeting with all Commission members prior to this meeting to get input. But, Mark feels the Commission has been on the wrong tracks since day 1. The atmosphere from day 1 has been poisonous (close to his exact words) . Feels the Commission is inherently unfair and unbalanced. The State legislation states that a housing board should be represented by landlords and tenants equally. We have made the landlord the enemy, and most are small businesspeople trying to make a ' living. Mark suggested that the Commission be restarted by Common Council. Pierre: He is happy with proposal. The Commission was organized by Common Council and not by us. He also agreed with Mark regarding the current atmosphere. Wants to deal with the security deposit issue without creating more problems. Found out in Maine, that tenants can sue for treble damages. Terry: Felt it was advisable to have a clean copy before passing it on to Common Council. He basically supports it but has problems with the findings. Likes the checkin and checkout procedure but not sure if it should be mandatory. Will increase landlords operating costs which will be passed onto tenants. Felt courts should decide on damages, not legislation. Pam: Did not feel that the findings supported the results. Stated that there is currently no housing shortage. Besides concern on tenants part, there is also widespread concern by landlords. Brought up that other agencies have available information and assist tenants such as Cooperative Extension. Questioned the role of the alderperson in assisting tenants with disputes. Also felt that before moving forward with our discussion, we need to find out what is within our realm. Carol: Echoes concern about findings. Does not justify the proposal mh-ich i3 an embarrassment. Feels the intent of the proposal is valid and landlords or tenants who abuse the relationship should be held liable. A reasonable amount of time should be stated in the lease or defined by the court regarding time to return security deposits. Feels that the checkin and checkout procedures are good but should not be mandatory. Wants the City Attorney to give us some answers before the proposal is passed along to Common Council. This proposal has not promoted better relations between landlords and the Commission. Feels that a security deposit brochure would be useful and helpful. If a brochure was mailed to every resident in the City, it would cost less than this proposal. Need to have an impartial and balanced Commission. George: No strong evidence for this proposal. Feels the City is biased against building affordable housing. The proposal still does not address the problem for the tenant who moves far away, and does not receive their deposit. Feels their is a shortage of affordable family housing which should be discussed. Does not feel the proposal can be salvaged. Round 2 John E. : Thought there were good points that were brought up as we went around the table. He still agrees with the basic premise of the proposal 1 and feels Chuck Guttman should discuss some of the legal points. We are recommending policy not legislation. Joan: Contacted the court who stated that landlord/tenant disputes increased 57% in the first quarter of 1991. Stated that Massachussets has a 30 day limit to return security deposits. Housing is a basic human need and feels the city should support this effort since the money is not ill spent money. Mark: The city is in the midst of a budget crisis. Feels that we should start from square .1 regarding this issue. It does not protect the interests of all parties. Pierre: Thought the finding regarding the housing shortage was a finding needed for the proposal. Does not want to discuss this issue all summer. Wants to see a plan on how we are going to carry this proposal out. He feels that landlords should support this document because it will not hurt the ones who are responsible. Terry and Pam: Passed, gave time to City Attorney, Chuck Guttman. Carol: Can't look at one month worth of court cases and say they are representative of one year. Need to address fear of tenants to come forward. Feels as a Commission we should focus on what we agree on. Need to establish a penalty for people who are abusive. Also need to agree on a reasonable period of time to return security deposits. Ed: Had asked every member to produce a memo with an agenda on it, but only one member did it. George: Agrees with Carol. There is a problem with rental housing in Ithaca, although we are not sure what the problem is. We, as a Commission are facing a major credibility problem within the community. Chuck: He is the staff member appointed to the Commission. The ultimate decision is made by Common Council. Received documentation that in 1991, there were 331 Small Claims cases. One half were landlord/tenant issues which were almost all security deposits. He received this info from Judge Olds. The Court defines reasonable amount of time as immediately. New York law does not have a time period to return deposits. Contract law states termination at the end of the contract. Mark brought up that Neal Howard contacted Attorney General Abrams office and they stated that reasonable time is 60 days. Chuck stated he has not seen this written. The city can pass legislation that is consistent with state law. Chuck does not think our proposal is inconsistent with state law. Ed: Asked that this proposal be on the March agenda of Charter and Ordinance which meets on March 12. Carol: Made motion to not pass this along. The commission voted, 4 were in favor, 4 opposed and 1 abstained. Therefore, ' ass and be on th4 agenda. d`""�'"' T r' f/ `"'1"4 LCa.-0 Public Comment: *Larry Beck stated this proposal will force landlords to do 2 inspections a year per apartment, which would be a hardship. *Myra Malkin stated if landlords do not do inpections, how do they have documentation to the condition of rental unit. Meeting adjourned at 9:20 p.m. ?4,s ccfr-e-ly . ��rue� ��� �� ;)� 92 cd/s/ ( r"b L). 1, ,,�; Ifiirir l ' • 92 oQp: 1 ? 19 �'� �• RECEN ED CITY OF ITHACA 108 EAST GREEN STREET ITHACA. NEW YORK 14850 OFFICE OF TELEPHONE: (607)274-6508 BUILDING COMMISSIONER FAX: (607)272-7348 Building Department Advisory Board Meeting - March 10, 1992 Board members present: T. Bronsnick, E. Franquemont, G. Chiang, C. Peterson, L. Beck Absent: B. Schickel, R. Colbert Staff Present: Rick Eckstrom, Carol Shipe, Mayor Nichols While waiting for some of the members to arrive, Chair Bronsnick began the meeting by congratulating Rick on his appointment as Building Commissioner. Mayor Ben Nichols was present for a brief time and explained the probationary period of Rick's appointment. Mayor Nichols went on to explain the Rental Housing Officer and fees to support that position proposed by the Rental Housing Commission. His purpose was to get a feeling from the Building Department Advisory Board. Mayor Nichols felt that the Rental Housing Officer idea should be done but without adding an additional fee or personnel. He though it could be done by a Housing Inspector - one person half-time to deal with this position. Rick explained that there would be additional paperwork involved, and that the Department needed the half-time account-clerk typist position back. Discussion followed, and it was suggested that it could be a mistake to add another person to the Building Department staff. Rick explained it would require a new job description. OLD BUSINESS 1. Reorganization in Building Department. Rick reported on progress. The target date was March 10, 1992 but top priority inspections postponed the deadline. Question was asked if there might be more emergency inspection, and Rick said it was possible. Rick explained that Peter would be able to devote more time starting next week, and that he will begin working on revising forms. Rick said he would bring a report to the next meeting. 2 . Brochure. Rick said Phyllis has not made much progress. She is dealing with the new job administering three Building Inspectors. Board members reported that they were working on getting the information into a form that could be distributed. A suggestion was made to do a combination of both the Building Department language and the brochure. Suggested developing a 'An Equal Opportunity Employer with an Affirmative Action Program' t✓ Recycled Paper �U LDIty u rtucT'MENT burIRD MiNUIES year-long plan to do several brochures and utilize A.C.S. to help. A Board member is to give Rick a contact at A.C. S. Chair Bronsnick reported on his report to the DownTown Vision Task Force and Common Council. He asked if there was any other old business. A discussion followed on the summary of goals and recommendations. Rick explained that as part of recodification, the language would change so that responsibility for have a Certificate of Compliance is put on the landlord. 3 . Housing Inspections. There was a discussion about landlords knowing what the violations are. Board member questioned whether it would help if there was a handout when approaching tenants. There was more discussion, and it was suggested that literature be made available to students when they are looking to rent apartments. NEW BUSINESS Chair Bronsnick discussed the Mayor's recommendation on the Rental Housing Commission that someone on the existing staff do the job of the Rental Housing Officer, and not hire anyone or charge a fee. Rick explained that someone is needed who has some legal knowledge. Based on the type and number of calls the Department receives, Rick felt that the position should not be considered a full-time position. There was discussion on language of leases, and Board member asked if the City had any control over leases. A report on the Rental Housing Commission was made, and a review of the job description. The suggestion was made that pamphlets or brochures about security deposits be included. Rick suggested that someone from the Rental Housing Commission should discuss the proposed job description of the Rental Housing Office with him. The proposal is going before the Charter & Ordinance Committee. The next meeting will be March 24, 1992 at 12 : 00 Noon in the Building Department Conference Room. Nothing specific was mentioned for the Agenda for this meeting. ` 04yor RCF' c 1�L Gll� MEMORANDUM TO: Ithaca Rental Housing Commission RE: Security Deposit Ordinance Proposal DATE: March 11, 1992 Dear Commission Members: The Cornell Legal Aid Clinic has been following with interest the security deposit ordinance being considered by the Rental Housing Commission. Cornell Legal Aid provides legal representation to low income residents of Tompkins County in many areas, including landlord-tenant disputes. A security deposit ordinance in the city of Ithaca will have a significant impact on many of our past, present, and future clients who live in the city. For this reason, we feel compelled to comment on this legislation. We support the proposal to require landlords to return security deposits within 30 days of the end of the tenancy or face the possibility of treble damages for an unreasonable or willful failure to return the deposit. This legal memorandum outlines the current state of the law in this area and presents our analysis of why the proposed ordinance is both necessary to protect tenants and also fair to both landlords and tenants. NEW YORK STATE REQUIREMENTS AND PROCEDURES FOR RETURNING SECURITY DEPOSITS Neither the statutes nor the case law in New York provide a specific procedure for the return of security deposits at the end of a tenancy. §7-103 of New York's General Obligation Law states that a security deposit paid to a landlord continues to: "be the money of the person making such deposit or advance and shall be held in trust by the person with whom such deposit or advance shall be made . . . " Since the security deposit legally belongs to the tenant, it should be returned to him at the end of the lease term unless the landlord can show that he has been damaged by a breach of a covenant of the lease. We have enclosed a copy of General Obligations Law §7-103 with this memorandum. Under the trust relationship set forth in General Obligations Law §7-103, a tenant should be entitled to the return of his or her security deposit immediately upon moving out at the end of the lease term. Theoretically, a tenant could begin a court action to recover his security deposit the day after the end of the lease term. However, no court in New York has addressed the issue of when a tenant can begin an action to • reclaim his security deposit. We believe there are two reasons why this issue has not arisen before courts: (1) few tenants are going to begin an action to recover their security deposit immediately at the end of the lease term, and (2) by the time these disputes reach a court, the issue of the timing of the return of the security deposit is usually moot since at least several weeks have passed. New York law also does not provide for any damages against a landlord who unlawfully withholds a security deposit. When a tenant sues a landlord for the return of the tenant's deposit, all the landlord stands to lose, besides court costs, is the money which belongs to the tenant in the first place. Landlords have no economic incentive to return security deposits to tenants, since all they stand to lose is money which does not belong to them, money which they should have returned weeks ago. Fortunately, many landlords would never operate this way. However, an unscrupulous landlord would make a rational calculation to withhold the deposit and say to the tenant "sue me. " THE PROVISION OF THE PROPOSED ORDINANCE REQUIRING LANDLORDS TO RETURN DEPOSITS WITHIN 30 DAYS PROVIDES ESSENTIAL PROTECTION TO TENANTS WHILE STILL BEING FAIR TO LANDLORDS. The Cornell Legal Aid Clinic represents low income residents in the city of Ithaca and in Tompkins County. For many of our clients, it is a heavy burden to provide a security deposit on an apartment. When these people move, this burden is doubled; they must put a security deposit down on a new apartment before they receive the security deposit back from their original apartment. Many persons and families cannot afford new housing until their original security deposit is returned. Unless the original security deposit is returned in a timely fashion, they simply cannot come up with the next deposit plus the first month's rent for a new apartment. Given that unscrupulous landlords have an incentive not to return security deposits at all, low income tenants need the protection of the proposed ordinance that requires a landlord to return a security deposit, or provide an accounting of damages within 30 days. This 30 day provision allows a tenant to get on with his life and make reasonable plans to find new housing. It is easier for people on low incomes to borrow money from friends or family for a new security deposit, or to put off paying some bills in order to pay a new security deposit, when they have some guarantee of receiving their original deposit within 30 days. A 3.0 day return provision is the minimum time period necessary to protect tenants. 30 days, however, does not solve all the financial problems of finding new housing for low income tenants. 2 In Syracuse, the Housing Code only gives landlords two weeks to return a security deposit. (Syracuse Housing Code § 27-124 (2) , (3) • ) Codifying a 45 or 60 day delay however, would most certainly mean that most, probably all, landlords would take advantage of the legally sanctioned deferral (the law already gives them a pure economic incentive to withhold security deposits as long as they can) . The resulting delay would mean: (1) a tenant would not be able to file a claim against a landlord who willfully misappropriated her deposit for 60 days, thereby increasing the wait for judicial relief; (2) such a provision could increase the time before which a poor family could move into another home, could force families into homes of other family members, thereby increasing the potential for health risks and code violations; (3) at the very worst, such an extreme delay could make homeless those tenants who have nowhere else to turn. Since tenants are entitled to their deposit immediately upon moving out under State law, a 30 day return provision also provides landlords with protection. The 30 day provision gives landlords a reasonable amount of time in which to assess the condition of the apartment, and to determine how much, if any, of the deposit they are entitled to withhold for damages. The proposed ordinance does not punish a landlord who needs more than 30 days to accurately calculate damages, or to complete repairs on an apartment. The ordinance requires the landlord either to refund the deposit or to provide a statement on the withholding of the deposit within 30 days. A statement on the withholding must include receipts and estimates available at that time. Furthermore, the ordinance does not require that the final calculation of damages be completed within 30 days. Those landlords who in good faith are not able to calculate damages within 30 days will not be punished by this ordinance simply for missing the 30 day deadline. Only landlords who act unreasonably in failing to return the deposit would be liable for treble damages under the proposed ordinance. A 30 day return provision provides those tenants who do not damage apartments with a reasonable time frame within which they can expect the return of a deposit which is rightfully theirs. A 30 day return provision also provides landlords with a reasonable time frame in which to calculate damages in most cases. Finally, the proposed ordinance protects those landlords who are unable in good faith to calculate damages within the 30 day period. 3 TREBLE DAMAGES AGAINST LANDLORDS WHO UNREASONABLY OR WILLFULLY MISAPPROPRIATE A TENANT' S SECURITY DEPOSIT BALANCE THE INHERENT UNFAIRNESS IN THE LANDLORD-TENANT RELATIONSHIP. New York common law and the general trust principles of General Obligations Law S7-103 make it clear that the security deposit is the property of the tenant, and that the landlord merely holds it in trust. However, there is no incentive for landlords to return the deposit in a timely fashion under state law. In fact, there is a very real, easily discernable economic incentive for unscrupulous landlords to hold the deposit for as long as possible. Landlords have no incentive to return the deposit even when the tenant fully complies with the terms of the lease. Brutal economics dictate that landlords currently have an incentive NOT to return deposits in a reasonable amount of time. Clearly, many landlords never operate this way. However, unscrupulous landlords are often able to keep deposits because of the ignorance or powerlessness of their former tenants. Tenants often do not realize that they have a right to get their deposits back; and even when they do know this fact, they often do not have the time, knowledge, or resources to compel a return. An unscrupulous landlord can take advantage of this situation--and so often delay a deposit refund in hopes of winning a war of attrition. Tenants move or graduate, and the landlord ends up with deposit after deposit through sheer default. Currently when a landlord who willfully misappropriates a security deposit is taken to court, all he stands to lose is money which was never his to begin with, i.e. the tenant's security deposit. In many cases, tenants are not familiar enough with the legal system to take a landlord to court. In these situations the tenant gets nothing and the landlord gets to keep the tenant's security deposit. The potential for treble damages for willful or unreasonable misconduct precludes these particular landlords from making this simple brutal economic calculus, and in no way affects the dealings of landlords who act in good faith. When faced with treble damages, it is no longer "economically rational" for a landlord to withhold a security deposit and dare the tenant to sue him. Treble damages for the most egregious behavior on the part of landlords addresses the inherent imbalance in the relationship, restores proper incentives, and creates equity on both sides. • It is important to emphasize that treble damages only apply when the landlord unreasonably withholds the security deposit under the proposed ordinance. Treble damages are not assessed every time a landlord fails to refund a deposit within 30 days. A landlord who in good faith is unable to refund a deposit within 4 30 days would not be liable for treble damages. A landlord would not be liable for treble damages simply because he had not received estimates or finished work on the apartment within 30 days. The provision only applies to those landlords who unreasonably or willfully fail to refund a tenant's security deposit. PUNITIVE DAMAGES AGAINST TENANTS ARE INAPPROPRIATE AND SHOULD NOT BE PART OF THE PROPOSED ORDINANCE. Security deposits already protect landlords from unreasonable abuses by tenants; the landlord can keep the deposit if the tenant damages the apartment or home. Thus, the tenant has a strong incentive to relinquish the leasehold in decent condition--she wants to get her deposit back. The goal of any treble damage award is to provide an incentive for proper behavior. Tenants already have a strong incentive to keep the property in decent shape--so no further incentive is necessary. Under the current law however, landlords have a strong economic inducement to withhold a security deposit for as long as they can. If the tenant succeeds in going to court and winning the return of his or her security deposit, the landlord will only have to return the money that legally belongs to the tenant. The landlord will not lose any of his or her own money. Treble damages against landlords who misappropriate security deposits places the landlord on equal footing with the tenant--just as tenants do not want to damage their apartment in order to avoid losing their own money in the form of security deposits, landlords will not want to misappropriate a tenant's security deposit in order to avoid losing their own money in the form of treble damages. Any provision which allows a landlord to collect punitive damages from tenants merely reinforces the imbalanced power structure of the current landlord-tenant relationship. The threat that tenants will lose more than their deposit will create fear among tenants with meritorious claims. Adding treble damages provisions to both sides ignores the basic economic realities of the landlord-tenant relationship and the legal incentives built into the proposed ordinance. The threat of punitive damages against tenants (coupled with the 30 day legally sanctioned delay, which landlords cannot currently claim) would effectively transform the proposed ordinance into a powerful tool for landlords to wield against tenants. 5 CONCLUSION The current landlord-tenant relationship with regard to security deposits is biased in favor of landlords. Unscrupulous landlords have no incentive to return a tenant's security deposit in a timely fashion. Although a security deposit legally belongs to the tenant, many tenants do not have the time, knowledge, or resources to pursue a landlord in court for the return of a deposit which is rightfully theirs. The 30 day period to return a security deposit in the proposed ordinance provides tenants with a reasonable expectation of when they will receive their deposits back, while also giving landlords a reasonable period in which to calculate damages and make repairs. The provision for treble damages for landlords who unreasonably or willfully misappropriate security deposits provides landlords with an incentive to return security deposits in a timely fashion while still protecting those landlords who have suffered damages. Since tenants already have an incentive not to damage their apartments, i.e. they want their deposit back, the proposed ordinance should not include punitive damages against tenants. We submit this memorandum on behalf of our tenant client population in the city of Ithaca, and in support of the original proposed ordinance. If we can be of any further assistance to the commission on either legal issues or in providing insight into the needs of our client population, please do not hesitate to ask for our help. Very truly yours, CORNELL LEGAL AID by: Christopher Garcia Roy Tilsley Sonya Kim Todd Lang Law Interns Karen A. Peterson Supervising Attorney 6 Proposal for IRHC Structure March 11 , 1992 Submitted by Terry Pasco and Joan Bailey 1) Quorum - 6 people 2) Order of meeting - Call to order, - approve agenda, add any new business items for consideration and set time limits for discussion, - approve minutes , - public comment , 1 round of no more than two minutes per person. During discussion itself , commission members may use the privilege of the floor to respond to any comments by the public . Also, the public is encouraged to send any letters in advance and simply summarize their contents during the public comment period. We should try to facilitate additional public comment through some other format , - old business, - new business, - working group reports, - miscellaneous - summary - read back any votes taken or amendments to any working proposals . 3) Minutes - these should be read and corrected at every meeting. We need to develop some standard for what should be included. There shall be one person serving as the primary recorder for each meeting, assisted by a back-up note taker. We should also try to tape the meetings . Minutes should also have copies of any voted- upon measures attached to them. 4) Changes in meeting time - The chair shall have the right to change a meeting time, providing that all commission members and the Mayor's office has been notified and that at least a quorum of the commission can attend at the rescheduled time. The public shall also be notified via a notice placed in the Ithaca Journal at least 3 days prior to the meeting. The chair can also exercise the right to cancel a meeting in case of an emergency. 5) Information - we should make copies of information and set aside a certain amount for the public. If any member of the commission or public has information they would like to see circulated, the IRHC will see to having it copied if the information is received a week before the meeting. (perhaps we could rotate this responsibility, if necessary) 6) Records - a commissioner's notebook should be kept for agendas , minutes , other related information so that incoming commissioners will have a source of reference materials . Ja S.S ' bij h y/ �-0 " ri/(49/f 3 Ithaca Rental Housing Commission - Minutes March 18th, 1992 Present: Joan Bailey, Ed Dormady, John Efroymson, Mark Finkelstein, Carol Mallison, Pam Zinder. Absent: Pierre Clavel, George Franz, Terry Pasco Public: Robin Palmer, Mark Goldfarb, Gordon van Nederyun, Jimmy Rider, Tim Terpening, Larry Beck, T.L. Johnson, Myra Malkin, Joel.,_ Dan Hoffman, Richie Berg, Theresa Alt, Martin DeSanto, Vivian DeSanto. Law Intern- there is a possibility of having a second year law student from Cornell to do some work for IRHC this summer. John Efroymson asked that he and Mark Finkelstein work with the intern to see what tasks he might be able to help with. Public comment: Larry Beck asked that the proposal for the check-in/check-out procedure be done on a voluntary basis and incorporate the suggestions and concerns of those who are aleady familiar with these procedures. John Efroymson asked the public for copies of already existing check-in lists. Myra Malkin asked that the provision for triple damages in cases of abuse not be extended to tenants. Myra stated that the relationship between landlords and tenants is not balanced one and that the proposal's intent is to deal with those who are in the business of providing rental housing and to establish an orderly procedure for doing so. Myra also mentioned that there are two groups of tenants in Ithaca, short-term tenants who are students and long-term tenants, including many families, who cannot afford to buy a home. T.L. Johnson asked about how landlords would be expected to handle check-in procedures in cases where the tenants do not all arrive at one time or arrive in the middle of the night. Mark Finkelstein asked that the agenda be approved. He also brought up an item for a future agenda, a discussion to reconstitute the commission. Carol Mallison asked that IRHC meeting notices include all of the agenda items. She also expressed a concern about certain items not getting on the agenda. Ed Dormady asked that this evening's agenda be set and reminded the Commssion that he had requested a memo from each member, asking their input on future agendas. A request was also made to get minutes to Theresa Alt within two weeks of each meeting for copying and distribution. The Commission paused briefly to read, correct and approve the Feb minutes. Mark asked Councilman Dan Hoffman about the Charter and Ordinance Committee's meeting. Dan responded that they only discussed reapportionment and did not have an opportunity to discuss our proposal. However, he thought that the proposal could be on C&O's Z April agenda. Ed brought up the memo from Ben Nichols which was received by the Commission. The subject was the reorginization of the Building Dept to incorporate some of the responsibilities of the proposed rental housing officer. The Commission agreed to put this on next month's agenda, along with the Building Dept's memo. The Commission alo received a memo from members of Cornell's Legal Aid, asking not to include any provision for treble damages assessed against tenants. John suggested one more round of discussion on the security deposit proposal. He proposed to strike the findings and the sections making specific reference to the rental housing officer. Joan basically agreed with this amendment to the proposal . Mark said that he did not have a problem with language calling for penalties for those who abuse the practice of returning security deposits but asked that the rest of the regulatory measures be dropped. Pam also wanted to strike the findings. Ed mentioned that Chuck Gutman believed that Council would come up with its own findings, but asked about the part about court cases. Pam said that we really would have to get the correct number of them. Carol also wanted to strike the findings and proposed an amendment that would establish a penalty for either party in case of abuse of security deposit law as it already exists. She also wanted to establish a definition for a reasonable amount of time for returning deposits in case of damages and wanted the check-in check-out procedure to be voluntary, not mandatory. Carol said that a check-in list could be made available to both parties through a brochure and that tenants could still fill one out even if the landlord chose not to. Ed also suggested that we strike the findings since there was little likelihood of agreement. Vote on motions: On striking the findings-5 in favor, 1 opposed. On "disagreements" language on page 1 sect 1 (after another short discussion) The motion was to strike the last sentence. 4 in favor, 2 abstentions. On omitting the reference to the rental housing officer in 1 (a) (2) , 5 in favor with 1 abstention. (at this point, John asked Myra for her interpretation of "unreasonably" in C on page 2 . as he felt that it should be clear that the intent was for egregious actions. Mark stated that he still objected to the check-in check-out procedure. While he was happy that the commission was moving away from additional taxes and fees that he felt that the proposal still rpresented an attempt by the city to micromanage these procedures. Mark wanted to simply send along a recommendation to Council that they enact an ordinance that would impose penalties for abuses in the return of security deposits. Carol agreed with Mark, stating that this had all been done backwards. A round of discussion followed on Mark's proposed amendent. John moved to call the question. The vote was 3 in favor and 3 opposed, so the motion failed. Carol moved to strike the refernce to the rental housing officer in the footnotes. The motion passed unanimously. Carol also wanted to establish what sort of rental relationship the Commission was attempting to regulate. John said that the commission's intent was clear that it referred to residential housing. After some discussion, Carol proposed that the language under 1. Sec Deposits read "residential/non- commercial. The motion passed with 4 in favor and 2 opposed. Carol also wanted to amend the proposal to make check-in voluntary instead of mandatory and to limit the proposal to 1(a) 4 to return the deposit in 30 days and 1 sect C to provide for penalties. Carol stated that the Building Dept already had enough responsibility. Pam also believed that check-in should be m y. ✓0I (1f / Mark asked Myra to comment on this. Myra said that she dihagreed with Mark and Carol, saying that tenants are not always sophisticated about these matters. She asked them why they were both reluctant to include the check-in provision since they both utilized them. Myra stated that she did not believe that the procedure was either paternalistic or an example of micromanagement. After some more discussion, the question was called. The motion failed, with 3 in favor and 3 opposed. Ed stated that should the check-in procedure become mandatory, there would still be opportunity for the commission to give advice and information to Council on how it would be implemented. Public comment: Joel Said that he was glad to see Certified Properties get pinched. Jerry Maclntyre from Cornell Legal Aid, said that the law students had wanted to be at the meeting and also voiced his opposition for treble damages assessed against tenants. Jerry stated that the 30 days limit was desirable, since he has seen widepread abuse of security deposit returns (though not necessarily in Ithaca) and that most of these cases do not get pursued. Jerry also cautioned the commission on trying to set a standard for requiring a finding of abusive retention, since he did not know how such a finding could be determined. Upon Mark's request, the next meeting is tentatively set for the 4th Wednesday in April and will continue on the 4th Wed of each month, pending the approval of the absent members. The meeting adjourned at 7 : 30pm 3 To: Charter and Ordinance Committee of Common Council From: Rental Housing Commission Date: April 2, 1992 Subject: Security Deposits The Rental Housing Commission proposes the following actions by City Council: 1. Security Deposits. The city should establish enhanced security deposit regulation for residential,non-commercial properties,within the constraints of state enabling legislation. Steps recommended by the Commission include: a) The property landlord and tenant shall follow a written check-in and check-out procedure: 1) Prior to occupancy(transfer of keys),the landlord shall inform the tenant that the tenant may inspect the dwelling unit and notify the landlord of any damages or defects which existed before the beginning of occupancy. The landlord shall furnish a written checklist on a standard form provided by the city,including an itemized description of any damages or defects. There should also be a place for both landlord and tenant to sign, indicating approval of the check-in information. A dated, signed copy shall be retained by both parties for purposes of assisting in the resolution of the deposit situation at the end of the lease. 2) Within 7 Days after the commencement of tenancy,either the landlord or tenant shall, upon discovery of damages or defects not included in the original checklist noted in Sec. 1 (a) (1), immediately notify the other party in writing with reference to the original checklist. 3) At the end of tenancy, the landlord provides a check-out form comparable to check-in forms,containing a clear place for the tenant's forwarding address,and for both to sign. 4) The landlord who has accepted a security deposit must,after termination of tenancy, provide to the tenant as soon as possible and within not more than 30 days,either in person or by mail,either: (1) the full security deposit;or(2)an itemized statement showing the reasons for withholding all or part of the deposit,receipts and estimates available at that time,and forwarding any balance of the deposit. This will not preclude the landlord from later proving additional damages which she or he was not reasonably able to obtain in the 30 day period. 5) Disagreements between landlord and tenant pertaining to items covered in Sec. 1 may be referred to mediation: parties are strongly encouraged to go through the mediation process if requested. b) The security deposit is the property of the tenant until proven otherwise. It is the landlord's burden to prove compliance with the provisions of Sec. 1,or forfeit right to security deposit. 1 c) In the event that the landlord has unreasonably failed to return all or part of the security deposit, treble damages and reasonable attorneys'fees may be awarded. Failure of either tenant or landlord to comply with procedures listed in Sec. 1 (a) may be a factor for the court to consider. The failure of the tenant to comply with the check-in,check-out procedure is a factor which the court may consider in assessing the credibility of the tenant's claim for return of security deposit. d) Past practices of the landlord regarding return of security deposits may be a factor in awarding treble damages and attorneys' fees. e) Repeated failure to comply with security deposit sections of ordinance may be cause for court to impose punitive fines,. f) Section (1) does not apply in the case of tenants who are not required to pay a security deposit. g) Section (1) (b...e) do not apply in the case of tenants who have failed to pay the full rent required in the lease by the time of the end of tenancy. cc: Rental Housing Commission Mayor's Office City Attorney Common Council to 2 address greeting Legal Action of Wisconsin 31 South Mills Street Madison WI 53715 Sir or Madam Wisconsin Coalition for Advocacy 16 North Carroll Street Suite 400 Madison WI 53703 Advocates "Louise Trubek,Director Center for Public Representation 121 South Pinckney Street Madison WI 53703" Ms. Trubek Carolyn Hogg City Attorney City Hall Madison WI 53701-0099 Ms. Hogg National Housing Law Project 1950 Addison Street Suite 200 Berkeley CA 94704 Housing Advocates Brooklyn Legal Services 260 Broadway Brooklyn NY 11211 Sir or Madam Steve Brown Greater Upstate Law Project 87 Clinton Avenue North Rochester NY 14604 Mr. Brown Bryan Pine City Council City Hall Burlington VT 05401 Mr. Pine Steve Norman Vermont Legal Aid PO Box 1357 12 North Street Burlington VT 05402 Mr. Norman John Davis Director of Housing 979 Burlington VT 05401 Mr.Davis ITHACA RENTAL HOUSING COMMISSION ADDRESSES, PHONE NUMBERS, TERM LENGTH, REPRESENTATION, WORKING GROUP ASSIGNMENTS 5t4 /f9z Joan Bailey, Xnd Ward; Info WG; Term Expires End . 607 North Tioga Street. 272-2173 Pierre Clavel, 3rd Ward; Policy WG; Term Expires End 1994. 109 Cornell Street. 273-7617 Edward Dormady, 4th Ward; No WG; Term Expires End 1993 . 638 Stewart Avenue, Apartment A. Messages @ 274-6501 John Efroymson, Common Council Liason; Policy WG; Term Expires End X994• (993 435 North Geneva Street. 272-1034 Mark Finkelstein, Private Landlord; Supply Side WG; Term Expires End 1993 . 210 Lake Street. 272-4000 George Frantz, 1st Ward; Supply Side WG; Term Expires End 1992 . 604 Cliff Street. 277-1305 Carol Mallison, Non-Profit Housing; Supply Side WG; Term Expires End 1992 . 137 Bank -Head, Newfield. 564-3396 and Terry Pasco, h Ward; Supply Side WG; Term Expires End 1993 . 272-3290 Pamela Kinder, Non-Profit Housing; Info WG; Term Expires End 1994. 909 North Cayuga Street. 273-5815 Pi] Ratified Procedures -- IRHC April 28, 1992 1) Quorum - 5 members; Resolutions require simple majority of full commission 2) Order of meeting : A) Call to order, B) Approve agenda, add any new business items for consideration and set time limits for discussion, C) Approve minutes, D) Correspondence/ communications E) Public Comment; one round of no more than two minutes per person. During discussion itself, commission members may use the privilege of the floor to respond to any comments by the public. Also, the public is encouraged to send any letters in advance and simply summarize their contents during the public comment period. We should try to facilitate additional public comment through some other format, F) Old business, G) Working group reports, H) New business, I) Confirm next meeting. 3) Meeting Minutes - they should be read and corrected at every meeting. We need to develop some standard for what should be included. There shall be one person serving as the primary recorder. Minutes should also have copies of any voted-upon measures attached to them. Minutes should be turned in to the Mayor's secretary within two weeks of meeting . The Chair is excluded from recording minutes. 4) Changes in Meeting Time - In case of an emergency, the Chair shall have the right to change a meeting time, provided that all Commission members and the Mayor's Office have been notified and that at least a quorum of the commission can attend at the rescheduled time. The public shall also be notified via a notice placed in the Ithaca Journal at least three days prior to the meeting. 5) Information - We should make copies of information as set aside a certain amount floor the public. If any member of the commission or public has information they would like to see circulated, the IRHC will see to having it copied if the information is received a week before the meeting. 6) Records - A Commission file should be kept in City Hall for agendas, minutes, and other related information so that incoming commissioners will have a source of reference materials. New members will be given an orientation packet produced by the Chair. 7) The Vice-Chair runs meetings in the Chair's absence. Ratified Procedures -- IRHC April 28, 1992 1) Quorum - 5 members; Resolutions require simple majority of full commission 2) Order of meeting : A) Call to order, B) Approve agenda, add any new business items for consideration and set time limits for discussion, C) Approve minutes, D) Correspondence/ communications E) Public Comment; one round of no more than two minutes per person. During discussion itself, commission members may use the privilege of the floor to respond to any comments by the public. Also, the public is encouraged to send any letters in advance and simply summarize their contents during the public comment period. We should try to facilitate additional public comment through some other format, F) Old business, G) Working group reports, H) New business, I) Confirm next meeting. 3) Meeting Minutes - they should be read and corrected at every meeting. We need to develop some standard for what should be included. There shall be one person serving as the primary recorder. Minutes should also have copies of any voted-upon measures attached to them. Minutes should be turned in to the Mayor's secretary within two weeks of meeting . The Chair is excluded from recording minutes. 4) Changes in Meeting Time - In case of an emergency, the Chair shall have the right to change a meeting time, provided that all Commission members and the Mayor's Office have been notified and that at least a quorum of the commission can attend at the rescheduled time. The public shall also be notified via a notice placed in the Ithaca Journal at least three days prior to the meeting. 5) Information - We sho_ uld make copies of information as set aside a certain amount floor the public. If any member of the commission or public has information they would like to see circulated, the IRHC will see to having it copied if the information is received a week before the meeting. 6) Records - A Commission file should be kept in City Hall for agendas, minutes, and other related information so that incoming commissioners will have a source of reference materials. New members will be given an orientation packet produced by the Chair. 7) The Vice-Chair runs meetings in the Chair's absence. � YC1 N 1 if1f VL1rCV- �(LS SCI^rec'` c•✓s o.r Rental Housing Commission Minutes 4/29/92 6021/93 RHC present: Bailey, Dormady, Efroymson , Finkelstein, Mallison , Pasco, Zinder Public : Larry Beck , Myra Malkin Minutes Passed with typos noted . Correspondence E.D. noted that he and J .E. had received letter from tenant of LL Joe Daley re: heating problems. Apparently resolved at CDRC. C.M. reported a LL who had found animal carcasses. LL spent 2 months cleaning. Wanted to know how to protect against such abuse. J .E. had two calls re: security deposits. One dealt with question of interest from a unit of less than 6 apts. Second was T fear that LL would withhold deposit for no reason since history of LL harassment. J .B. had T report difficulty finding apt. with LL saying LL didn ' t want a baby in apt. Commissioners noted that this is discriminatory. Human Rights Commission should be notified by tenant. E.D. reported alleged discrimination of T on basis of race. Personal guarantee form was required by LL. Commissioners asked if this form was required of others. Public Comment Larry Beck re: draft of RH officer. (draft was distributed to RHC) Building Commissioner says staff isn ' t legally trained to do task (e) of memo. Would need additional training . He also noted that 4 of 7 tasks could be interpreted as tenant advocacy. How will this position be funded? Regular Meeting Times of RHC We will meet the last Wednesday of each month from 5-7 PM assuming that this is not in conflict with G.F. and P.C. (E.D. will check on them. ) Commission Address Lists Changes were noted and work phone numbers were added. This list will be kept at mayor' s office. Status of Tenant-Landlord Resource Guide Copies have been distributed to 30 agencies. All commissioners now have copies. E.D. will research who else might be interested in copies, where the money might come from to cover up front costs (about $5/copy) and who might put it together for commission . Info W.G. charged with strategy for regular updating of guide. C.M. suggested that update include the date of publication . Roll of Public Comment C.M. : We are misleading the public . Why have comment at end of meeting? J .B. /T.P. : Structure proposal attempts to address this issue. T.P. : We' ve been more than open to comment to the point of disruption . M.F. : Process seems to works. Let' s keep flexibility. VOTE: There should be public comment at beoinnino of meeting only. Yes: 4 No:2 Abstain:1 Structure of Meeting E.D. will send amended memo to City Attorney to assure consistency with city law. 1 ) Quorum will be 5 members except that 5 positive votes will be needed to send a resolution to Common Council . 2) Order of Meeting Add (d ) Correspondence to Commission ( i ) Confirmation of next meeting date Omit miscellaneous and summary sections 3) Minutes Omit back-up note-taker and tape recording . Minutes shouldficlearly note all votes. no M.F. : This isha judicial body. There hasn ' t been a problem reconstructing the record . C.M. : Minutes should be precise enough to educate future members and inform absent members of what happened. Attendance of members should be noted . Should be sent to Mayor' s secretary w/i 2 weeks of meeting . Chair should not be taking minutes. 4) Changes in meeting times Add at head " In case of emergency" Omit last sentence of paragraph. 5) Information Omit last parenthetical phrase. 6) Records Substitute "Commission file" for "commissioner' s notebook . " Add "in City Hall " after the word "kept" in first sentence. Add section 7) : "Co-chair will run meeting in absence of chair. " VOTE: Amended structure document: Passed unanimously. Status of Security Deposit Ordinance E.D. : C&O has received the document. M.F. : Stated at C&O that he would support penalties clauses and if other sections were removed he could get support from LL' s. Opposed check-in check-out; it is not a business of the city. Also noted that Cornell Legal Aid also opposed check-in/check-out since T' s could be coerced to sign document. RHC Composition M.F. : Had asked for this agenda since Jan . Council charge doesn ' t even require one LL. J .E. : Common Council is appropriate body to discuss issue. They acted clearly with intent to have a tenant orientation in RHC. T.P. : Composition affects our working process. E.D. : If one looked at proportion of T' s in city, there would be 7 T' s on RHC and no LL' s. P. Z . : We should have chance to air our views on subject. C.M. : It' s our obligation to make a recommendation re: issue if it would help our work . We will allocate 20-30 minutes to this issue at the next meeting. Submitted by John Efroymson DRAFT FOR CIRCULATION APRIL 17, 1992 RENTAL HOUSING OFFICER PROPOSAL POLICY WORKING GROUP RENTAL HOUSING OFFICER : The position should include: a4 Provide for public outreach. Arrange meetings of the Commission or other city officials within neighborhood places , like the recent Renters' Speak-Out. b) Provide current information on rental unit availability, pricing and conditions , for purposes of periodic assess- . ment by the Commission and other public bodies ; including the performance of a rental housing census . c) Encourage more widespread information to tenants and landlords as to rights and responsibilities , and availability of recourse in the case of disputes , including mediation services and other steps short of legal action. d) Liase with the Planning and Development Committee , Housing Providers Committee and other agencies . e) Assist in monitoring and enforcing the provisions of the Security Deposit Ordinance . f) Update the Rental Housing Guide and serve as gen- eral staff for the Commission. g) The appropriate job qualifications for the position dbuld include knowledge of rental property and leases , conflict management, tenant concerns and applicable law. Proposal for IRHC Structure March 11 , 1992 Submitted by Terry Pasco and Joan Bailey 1) Quorum - 6 people 2) Order of meeting - Call to order, - approve agenda, add any new business items for consideration and set time limits for discussion, - approve minutes , - public comment, 1 round of no more than two minutes per person. During discussion itself , commission members may use the privilege of the floor to respond to any comments by the public . Also, the public is encouraged to send any letters in advance and simply summarize their contents during the public comment period . We should try to facilitate additional public comment through some other format , - old business , - new business , - working group reports , - miscellaneous - summary - read back any votes taken or amendments to any working proposals . 3) Minutes - these should be read and corrected at every meeting . We need to develop some standard for what should be included. There shall be one person serving as the primary recorder for each meeting, assisted by a back-up note taker . We should also try to tape the meetings . Minutes should also have copies of any voted- upon measures attached to them. 4) Changes in meeting time - The chair shall have the right to change a meeting time, providing that all commission members and the Mayor 's office has been notified and that at least a quorum of the commission can attend at the rescheduled time . The public shall also be notified via a notice placed in the Ithaca Journal at least 3 days prior to the meeting . The chair can also exercise the right to cancel a meeting in case of an emergency. 5) Information - we should make copies of information and set aside a certain amount for the public. If any member of the commission or public has information they would like to see circulated, the IRHC will see to having it copied if the information is received a week before the meeting . (perhaps we could rotate this responsibility , if necessary) 6) Records - a commissioner ' s notebook should be kept for agendas , minutes , other related information so that incoming commissioners will have a source of reference materials . c l `1 ITHACA RENTAL HOUSING COMMISSION Wednesday May 27, 1992 No Quorum being present, an informal discussion about reconstitution of the Commission took place among those present. iv ED MEMORANDUM 1992 To: Rental Housing Commissioners From: Mark Finkelstein Re: Proposal to reconstitute Rental Housing Commission Date: May 27, 1992 Why Reconstitute? 1. To have a commission such as ours whose membership is heavily slanted offends fundamental notions of fairness and openness, going to the essence of our democracy, . Under the current rules, it would be possible to have an RHC with no landlord representation. 2. Those who might oppose reconstitution should ask themselves: what arguments as to fairness would they make if an RHC had been constituted under rules that permitted a situation in which not a single tenant would be a member? The same principles of fairness apply here. 3. The argument has been made that it is fair to have a disproportionately small number of landlords because they represent a relatively small percentage of the population. That ignores the fact that the RHC is specifically established to deal with landlord/tenant issues, in which landlords have an equal interest and involvement. Let us imagine that a Commission had been established to improve race relations. Would anyone argue that of a 9- member Commission, a maximum of one member of a racial minority should be a member because they represent a small percentage of the local population? 4. The RHC could simply do a better job if we had a more balanced composition. To date, the RHC has operated in an atmosphere of mistrust and mutual antagonism. As a result, relatively little has been accomplished. To a significant extent, this can be attributed to the RHC's unbalanced composition, which has led the landlord community to feel that the RHC, and by extension city government in general, is stacked against it. 5. Within our community there are many landlords of good faith, with lots of relevant experience, energy and good ideas. If we could include more of them on the RHC, not only would we benefit from those qualities, we would I believe also find that landlords as a group, feeling they were getting a fair 1 2 shake, would adopt a more positive and cooperative attitude. The bottom line would be more results for tenants and landlords. For the RHC to work, landlords must be made a part of the solution, not be scapegoated as the cause of the problem. 6. The attitudes and proposals that have been expressed at the RHC, as well as its composition, have once again given the city a black eye, not only in the housing sector, but among the entire business community. Once again the City of Ithaca distinguishes itself as the least business-friendly part of Tompkins County. Yet if we want to have housing that is more plentiful and affordable, we are going to need to attract more people into the city to create that housing. Reconstituting the RHC along fairer lines would be an excellent first step in sending the right message. •+ Does the RHC have the Right to Propose a Change in Composition to Common Council? At least one member of the RHC has suggested that it is beyond the power of the RHC to propose to Common Council that the composition of the RHC be changed. The argument made was that since Common Council created the RHC, it is up to Common Council to change the RHC. But the fact is that Common Council adopts all city ordinances, not just that creating the RHC. It is precisely our task to recommend to Common Council which ordinances should be adopted or changed to further the goals of our Commission. This is borne out in at least three separate provisions of the charge to the RHC contained in the ordinance which established it, namely: "3. a. Advising Common Council on steps to be taken to improve the accessibility, affordability, and quality of rental housing in the City of Ithaca. 3. b. Advising Common Council on steps to be taken to achieve the oals of the City of Ithaca's housing policy; and G C tAi 3. f. Studying further . . . such other issues and proposals as it may become necessary to examine." The very essence of the current proposal is that the entire rental housing agenda would be advanced through the recomposition of a more effective • RHC. A proposal to that effect from the RHC to Common Council is thus indisputably an appropriate fulfillment of our responsibilities. How should the RHC be Reconstituted? The current rules call for the RHC to be composed as follows: 9 members, all residents of the city, of whom at least 4 are tenants. 1 member from each ward. 2 members from staff or board of not-for-profit housing providers. 1 landlord, property manager or bay kind community member. 1 member from Common Council. �^ There are undoubtedly many possibilities for an improved composition of the RHC, but certain principles would seem to apply. First, the current imbalance between landlords and tenants must be addressed. Under the current rules, there could be anywhere from 4 to 9 tenants and not a single landlord. A member of the banking community should not necessarily be presumed to know or represent the interests of the landlord community. While the ward of residence of members might be taken into account as an informal matter in making appointments, we should not restrict membership along ward lines. We should and have been looking at matters from a city-wide perspective. The "not-for-profit" category should probably be expanded to include housing advocates as well as providers, e.g. a member of Neighborhood Legal Services. Adopting the foregoing principles, one possible proposal would be for an RHC constituted as follows: 9 members, to include: 3 tenants 3 private sector landlords or property managers of city rental housing property (not necessarily residents) 2 staff or board members of not-for-profit housing advocates or providers 1 member of Common Council Apfoilcdedv +ed ,)e rt " City of Ithaca Rental Housing Commission Minutes of June 24, 1992 Meeting Members Present: Ed Dormady, Chair, Joan Baily, Pierre Clavel, John Efroymson, Mark Finkelstein, George Frantz, Carol Mallison, Terry Pasco Public Present: Larry Beck, Myra Malkin, Mayor Ben Nichols Chair Ed Dormady opened the meeting at 5:00 p.m. 1. Agenda. Agenda was approved as proposed. 2. Approval of Minutes. The minutes of the April and May meetings were passed with minor corrections. 3. Correspondence/Communications. Since the last meeting the Chair and other Commission members received two letters and six telephone calls relating to rental housing issues from tenants or landlords. Issues were: 1. Pressure by landlord on tenant to sign lease extension; 2. A landlord threatened to charge tenant for costs of pest extermination because tenant had a dog; 3. A person subletting an apartment had made rent payment to the leaseholder, but leaseholder failed to forward payment to landlord, who was now threatening to evict the person subletting the apartment; 4. An inquiry from a tenant who complained of inadequate water pressure; 5. A landlord was having problems with a tenant suffering psychiatric problem, had to initiate eviction process; 6. A rental agent was being harassed by former tenant over security deposit dispute; 7. A long term renter had question regarding lease with August to August term, but with rent increase on January 1, and also clause that allows landlord to raise rent to cover increased operating expenses; 8. A landlord has given all tenants notice to vacant premises after one person in a four person apartment was late with rent. Other correspondence and communications: 1. Chair Dormady read a letter in support of Security Deposit legislation; 2. John Efroymson reported on a telephone call from Brenda Kuhn on Finger Lakes Independent Center effort to compile roster of handicapped accessible rental housing units in Ithaca. 4. Public Comment: Larry Beck spoke in support of reconstituting the Rental Housing Commission to include a wider spectrum of people. He compared his experience with the RHC to his experience as a member of the Building Department Advisory Board. In his opinion the RHC was "inexperienced" in terms of hands on knowledge of the rental housing business by its members. (See Exhibit A) 5. Mayor Nichols: Mayor Nichols addressed the Commission regarding the issue of reconstituting its membership. He referred to the July 1989 report of the Rental Housing Task Force (Exhibit B), and to the Common Council resolution of May 5, 1990 which established the Rental Housing Commission and its current membership composition.(Exhibit C) Mayor Nichols noted that Common Council had intended for the Commission to be more than a tenant/landlord relations forum, and that the Commission has not made the progress on critical rental housing issues that he had hoped it would have made by now. He was opposed to efforts to reconstitute the membership of the Commission. In his opinion reconstituting the Commission would result in further delays, and that the Commission should get back to focusing on its charge. The Mayor further stated that those members of the Commission who did not like its membership makeup as adopted by Common Council should resign. An extended discussion of the mission of the Rental Housing Commission and whether or not its membership structure should be reconstituted followed. The primary issues discussed were: 1) the mission of the Commission, especially with regards to whether or not it should function as an advocate for renters in the City of Ithaca, and ; 2) the idea of reconstituing the Commission membership to ensure landlord representation on it, as proposed by Mark Finkelstein in a memo dated May 27, 1992 (Exhibit D), and the impact of such reconstitution on the charge to the Commission outlined in the Common Council resolution of May 5, 1990. The Commission membership continues to be divided on the issue of whether or not its should function as an advocate for renters. Some members favor a stronger focus toward advocacy for tenants and tenant rights. Some favor an approach that would work with renters and landlords to address the overall problem of rental housing in Ithaca, including supply. Mayor Nichols expressed his opinion that the Commission should be biased toward advocacy on behalf of renters. On the issue of reconstitution, Commission members who favor the concept of reconstituting the membership structure defended the idea. The proposal is not intended to result in any change to the charge to the Commision by Common Council. Rather the intent of the proposal to reconstitute the membership is to have a Commission that would bring together all parties involved in rental housing in Ithaca to work together to carry out that charge. The mission and goals of the Commission would remain the same after any change in membership structure. After extended debate no consensus was reached on the issues of the Commission's role as tenants' advocate, or the proposal to reconstitute its membership. John Efroymson moved that the various working groups of the Commision convene in the coming weeks to review missions, needs and goals, and to come up with work programs to be discussed at the next Commission meeting Motion was seconded by Joan Bailey. A discussion followed. AYES: Bailey, Dormady, Efroymson, Finkelstein, Frantz, Mallison, Pasco. NAYS: None. Abstain: Clavel. 6. Reconstitution: No further discussion on reconstituting the Commission took place. 7. Rental Housing Officer: City Building Commissioner Rick Eckstrom is investigating reorganization of the Building Department, and would like to see some sort of Rental Housing Officer position within the Department. They already receive a large number of inquiries from renters and landlords regarding rental housing issues. His major problem with setting up such a position, however, are budgetary restraints. The Policy Group agrees that the Rental Housing Officer position should be in the Building Department. Terry Pasco pointed out that perhaps some of the duties that Mary Pat Dolan performed at the County level to be done by a rental housing officer. John Efroymson suggested that a list of potential responsibilities for the position be drawn up. 8. Other Business: Joan Bailey and John Efroymson reported on accompanying City building inspectors on a number of inspections in recent weeks. They found the inspections very interesting and educational. 9. Adjournment. The meeting Adjourned at 7:00 p.m. Respectfully submitted, George R. Fran z Approved as revised August 26, 1992 ITHACA RENTAL HOUSING COMMISSION Wednesday, June 24, 1992 Second Floor Conference Room Ithaca City Hall 5 - 7pm AGENDA Est. Time Item 5 min. Approval of Agenda 10 min. Approval of April Minutes (Please bring) 10 min. Correspondence/Communications 10 min. Public Comment 30 min. Mayor Nichols 30 min. Reconstitution 30 min. Rental Housing Officer AGENDA is subject to approval or modification by the full Commission at the June meeting. Questions or comments about the agenda may be directed to the attention of Ed Dormady, Chair IRHC at 277-1659. • PARALLELS AND CONTRASTS BDAB AND RHC Representation from numerous Polarized issues and constituents constituents not all constituents recognized Equally represented Inequitably representation Clearly defined goals Self definition of goals Experienced practiced Minority experienced and practiced participants majority without practical experience Acknowledgement of State Ignorance and avoidance of State and and Local Codes Local Codes SUGGESTIONS Identify constituents and reconstitute Commission Housing suppliers Housing users owners tenants are: managers working people bankers students planners DSS, CSS, 551 designers Section 8 builders single parents developers elder real tors emancipated minors Constitute RHC equitabily between suppliers and users. - - • • FINAL REPORT COMMON COUNCIL FROM THE CITY OF ITHACA•S RENTAL HOUSING TASK FORCE Presented to Common Council and the Mayor • July 5, 1989 Steve Jackson Sean Killeen Chair Vice-Chair Steven I. Jackson 142 Giles St. Ithaca, N.Y. 14850 (607) 273-2149 July 5, 1989 To the Mayor and Members of Common Council: It is my pleasure to deliver to you this Final Report from the Rental Housing Task Force of the City of Ithaca. In sixteen meetings, beginning on December 19th, 1988 and concluding on June 26th, 1989, the Task Force has worked vigorously to respond to your request for recommendations to address the critical needs of the two-thirds of our community's households who rent. The Task Force, surveying a wide range of issues and concerns of renters, focussed much of its attention on the crisis of affordability. Relying on research by the planning staff, by INHS, and by myself and Valerie MacDougall, most Task Force members came to recognize that rents have risen much more rapidly than incomes in recent years, and that the trend appears to be continuing, in spite of current vacancies in the Collegetown market. Most Task Force members concluded that even if current signs of softness in the housing market continue, the market is unlikely to bring rents down substantially, and almost certainly not sufficiently to address the concerns of those who are increasingly being priced out of Ithaca's housing market. The Task Force concluded that without City action rental housing would continue to present intolerable difficulties to those who presently rent and to those who might wish to in the future. This Report focusses, as did the Task Force in the end, on six recommendations, detailed in Section A. Those recommendations include: the creation of a permanent Rental Housing Commission; the adoption of a set of principles to guide the development of a coherent Housing Policy; the establishment of, and dedication of certain sources of revenue, to a Housing Trust Fund; the establishment of a community rental registry; further examination of a rent stabilization system; and speedy action on three sets of recommendations. The Task Force unanimously recommended the creation of a permanent Rental Housing Commission; the only dissent on the recommendation was that by Neal Howard to the specification that a majority of the membership should be composed of tenants. In spite of that difference, the Task Force was united in the view that beyond the formal membership of the Commission, it should be charged by Council with involving interested groups in the community, including particularly Cornell graduate students and senior citizens, in their deliberations as much as possible. The Task Force discussed numerous possibilities for City action which would require City funds, ranging from revolving loan funds for security deposits, to expanded subsidies for those below, at, or near the poverty line, to assistance to programs such as the Mutual Housing program of INHS. The Task Force is convinced that these and other actions will be necessary; however, we have made no specific recommendations on these matters. Instead, we have tried to address the more vexing question of where the funds with 1 • which to attack the problems of renters should originate. In making these recommendations we have been guided and greatly assisted by the report of Paul Mazzarella and Kathe Evans, dated June 17, 1988, "Report on Housing Trust Fund Revenue Sources. " The only dissent on revenue sources was that of Neal Howard (with an abstention by Jean Rector) on the possibility of using the interest from security deposits on rental units as a source for the Housing Trust Fund. All other sources were unanimously recommended. The most controversial question facing the Task Force was whether, in the face of rents which seem to many to be escalating out of control , some form of rent control would be desirable. As a result of our investigations and discussion, the Task Force has recommended the establishment of a community rental registry, as a mechanism for gathering systematic information on rents in the City. In addition, the Task Force recommends further examination of the options for a rent stabilization system in the City. To both of these recommendations Neal Howard dissented, on the grounds that rent stabilization has demonstrated negative effects, and that a rental registry is a step in that dangerous direction. I also dissented from the recommendation with respect to rent stabilization, believing that compelling evidence demonstrates to the unbiased eye that rent stabilization would be desirable for the City of Ithaca, that only the details of implementation remain to be examined. In spite of disagreements over rent stabilization, the Task Force did agree unanimously that urgent action was required on three sets of recommendations: the creation of the permanent Rental Housing Commission; the adoption of the principles for guiding our Housing Policy; and the designation of three sources of revenue for the Housing Trust Fund. In each case, tha Task Force has recommended dates of completion for each of these tasks which u are realistic but ambitious. The community will watch the progress of your action on these recommendations and judge the capacity of the City of Ithaca to respond effectively to the affordable housing crisis by your ability to meet the challenge of the deadlines which we have offered. In addition to the recommendations we have made to Council , the Task Force also decided formally to communicate both with the County Board of Representatives and with the Chairman of Cornell University's Board of Trustees on timely issues of direct relevance to the Task Force's work. Copies of these communications are included in Section B of the Report. Section C includes specific suggestions developed by the Working Groups of the Task Force for additional actions which ought to be pursued. These suggestions are forwarded for the consideration of both Council and the permanent Rental Housing Commission; formally, these proposals were not voted upon by the Task Force, merely forwarded for further consideration. Section D consists of a listing of areas of concern and possible action developed by the Task Force which ought to be sent to the permanent Rental Housing Commission as a basis for their further discussions. 2 • • Finally, Section E of the Report includes Neal Howard's letter of dissent from the recommendations of the Task Force, his dissenting letter to the Chairman of the Board of Cornell's Trustees, and my own dissent from the Task Force's recommer1ation on rent stabilization. I am pleased to send to you for your consideration this product of so much dedicated labor by those who volunteered to serve on this Task Force. I am frustrated that we were able to accomplish so little, in the face of so much need. Yet, I trust that if Council begins by quickly acting on these recommendations that we will have a solid basis for continuing and expanding our efforts to address the needs of Ithaca's renters -- now and in the future. Sincerely, Steve Jackson Chair, Rental Housing Task Force P.S. Complete documentation to accompany this Report, including minutes of all meetings, analyses and reports relied upon by the Task Force, and an archive of information compiled by the Task Force, will be ready and delivered within a week to ten days. 3 SECTION A: RECOMMENDATIONS TO COMMON COUNCIL FROM THE \-/ CITY OF ITHACA'S RENTAL HOUSING TASK FORCE 4 • I. RENTAL HOUSING COMMISSION The Rental Housing Task Force recommends the creation of a permanent Rental Housing Commission by the City of Ithaca. The Commission's responsibilities should include: **advising Common Council on steps to be taken to improve the accessibility, the affordability, and the quality of rental housing in the City; **advising Common Council on steps to be taken to achieve the goals of the City of Ithaca's housing policy; **advising both the Planning and Development Board and the Board of Zoning Appeals concerning zoning changes and appeals for variances and any potential impacts those changes or appeals might have on rental housing affordability and availability; **advising both the Building Department and the Planning Department on the allocation of staff time to, and the design of programs for, the improvement of rental housing conditions, and calling upon the Directors of those Departments (or their designees) to appear as necessary at the meetings of the Commission; **serving as Trustee of the Housing Trust Fund, such that money can only be appropriated from that fund with the approval of both Common Council and the Rental Housing Commission; **readying for implementation those recommendations of the Rental Housing Task Force which call for further elaboration before implementation; **studying further those issues and proposals left to the Commission by the Rental Housing Task Force and such other issues and proposals as it may become necessary to examine. The Commission's membership should include seven members, appointed by the Mayor, under the following conditions: **the members of Common Council from each Ward shall nominate to the Mayor two residents of their Wards, at least one of whom is a tenant, who are willing to serve on the Commission, from which nominees the Mayor shall choose five members of the Commission; **one member of the Commission shall be a landlord or property manager, to be confirmed by Common Council; **one member of the Commission shall be a member of Common Council , to serve as a voting member and liaison; **a majority of the membership shall always be composed of tenants in the City of Ithaca; **the regular terms of appointment shall be for three years for all members other than the Common Council liaison, and these appointments shall be made initially for one, two, and three year terms, such that every year two seats will become vacant; **the Common Council liaison shall serve for two years; **the Chair and Vice-Chair will be elected annually by the Commission. The Commission will be provided support from a professional housing planner and clerical staff. 5 II . HOUSING POLICY The Rental Housing Task Force recommends that the City of Ithaca develop housing policies based on the following guiding principles: **Respond to the diverse needs of all areas of the City; **Serve the full range of income groups that cannot afford unsubsidized housing, including the homeless, the working poor, those on public assistance, those of low and moderate incomes, and those with special needs; **Utilize third parties, including not-for-profit organizations, Federal , State, and County agencies, housing authorities, private developers, labor unions, and financial institutions, in producing affordable housing; **Produce housing so that its design and size are appropriate for the community; **Foster racial and economic integration in City-assisted housing development; **Ensure that housing built to be affordable remains affordable; **Emphasize one-time capital grants, wherever possible, instead of on- going rental subsidies; **Recognize that the preservation of the affordable housing stock is at least as critical as new production; **Promote home ownership; **In the case of rental buildings, promote tenant participation. III . HOUSING TRUST FUND In the furtherance of this policy and its commitment to the adequate provision for affordable housing, the Rental Housing Task Force recommends the creation of a Housing Trust Fund, with the following sources of revenue: **Developer impact fees, based on the demonstrated impact of particular kinds of development on rents and housing prices in the City of Ithaca, and, if possible, implemented flexibly enough to allow for non-financial contributions where appropriate; **City-owned parcels of land, either sold with the receipts placed in the Trust Fund, or directly contributed to projects which result in affordable housing; **Real estate transfer tax of between 1% and 3%, including the possibility of a sliding scale to exempt and/or reduce the impact on sales of modestly priced single family homes; **Interest on security deposits for rental units held in escrow; **Repayment of Eddygate Apartments HODAG and Henry St. John UDAG; **Grants from the State's Housing Trust Fund; **Contribution from an expanded County room tax. 6 IV. ESTABLISHMENT OF A COMMUNITY RENTAL REGISTRY The Rental Housing Task Force recommends the establishment of a community rental registry. The Rental Housing Task Force further recommends that the permanent Rental Housing Commission consult with Building Commissioner Datz, Neff Cassaburri , Assistant Dean of Students at Cornell , and other interested parties to determine how this might best be accomplished. The Rental Housing Task Force specifically does not take a position as to whether this registry should be maintained as a municipal responsibility or as a private activity. V. RENT STABILIZATION The Rental Housing Task Force recommends further examination of a rent stabilization system in the City of Ithaca, modelled on the systems in place in more than 200 cities nationwide, including more than 60 municipalities in New York State outside New York City. Such a system should include the following features: **providing a fair rate of return to landlords; **conditioning rent increases to adequate maintenance; **providing for recovery of costs of capital improvements through rent increases; **exempting new construction; **exempting properties with few units (the exact number to be determined by the Rental Housing Commission) ; **allowing for vacancy de-control ; **implemented in the least costly manner possible. The Rental Housing Task Force recommends that the permanent Rental Housing Commission give the highest priority to the investigation of the feasible options for rent stabilization available to the City, through discussions within the community and with other cities which have experience with rent stabilization systems. 7 VI . PRIORITIES FOR ACTION The Rental Housing Task Force makes five sets of recommendations to Common Council , four of which are recommendations for action and one of which is a recommendation for further examination. In addition, the Task Force has forwarded to Council a series of specific suggestions which are the result of Task Force working groups and discussions, yet which are not formally recommended by the Task Force at this time. Finally, the Task Force forwards to Council a list of additional areas of concern or potential solutions with which the Task Force has barely dealt. Among these numerous recommendations, suggestions, and ideas, there are three specific sets of actions which the Task Force calls upon Common Council to act upon as quickly as possible, with the date of expected completion indicated with the listing of each priority item. The three items which require the immediate attention of and action by Common Council are: 1. The establishment of a Permanent Rental Housing Commission, accompanied by the allocation of staff time to that commission -- to be completed by October, 1989. 2. The adoption of a set of guiding principles for developing future housing policies -- to be completed simultaneously with the establishment of the permanent Rental Housing Commission by October, 1989. 3. The creation of a Housing Trust Fund, and the allocation to that fund of those recommended revenue sources and properties which are within the power of the City of Ithaca, without State authorization, to allocate: a) developer impact fees --to be completed by December, 1989; b) City-owned parcels of land -- to be completed by December, 1989; c) repayments from Eddygate HODAG and Henry St. John UDAG -- to be completed by September, 1989. Priorities for the remaining actions will have to be determined in consultation with the permanent Rental Housing Commission. 8 SECTION B: LETTERS FROM THE RENTAL HOUSING TASK FORCE • TO TOMPKINS COUNTY AND CORNELL UNIVERSITY ON TIMELY ISSUES OF DIRECT RELEVANCE TO THE SUPPLY OF AFFORDABLE RENTAL HOUSING 9 June 12, 1989 Representative James Mason Chairman, Tompkins County Board of Representatives 320 N. Tioga St. Ithaca, New York 14850 Dear Representative Mason: On behalf of the City of Ithaca's Rental Housing Task Force, we write to urge you and the County Board to give serious consideration to the channeling of funds from the County room tax into programs for the homeless and for affordable housing. Our Task Force, meeting since last December, has gathered quite clear evidence of a substantial crisis in affordable housing within the City of Ithaca and beyond. Rents pricing a substantial number of working people out of the housing market, rents rising more rapidly than incomes, and the very scarce supply of SROs and low cost apartments of all sizes, are indicative of a serious and far-reaching problem. It is clear that the solution of this crisis, which surely affects much of the County as much as it does the City, will require concerted action by the private sector and the public sector, operating at all levels, including City, County, State, and Federal programs. While public funds will play but one part in the solution to our housing problems, there will clearly need to be an increased commitment of public funds to meet our housing needs, including, for example, investments in programs: to encourage mutual housing and community land trusts: to meet emergency needs of the homeless: to expand the number of subsidized units available in the short-term: and to assist renters in overcoming the obstacles posed by large security deposits. The County Board of Representatives and the Chamber of Commerce have done this community a service by introducing an innovative and wholly appropriate mechanism for raising revenue from those who visit our community and who rightly should shoulder some of the financial burden of those programs in our community which will restore and maintain the public health and well-being of the permanent residents of this community. Programs for the homeless and for affordable housing would seem a perfect fit for an elaboration of the original room tax, to u 10 provide "shelter to shelter" assistance, as those visiting our hotels and motels would help provide aid to those who live in our apartments and homes. We understand that the Board is currently discussing the nature of the request to be made to the State Legislature for renewed authorization for the room tax. We urge the Board to seek a higher rate than the present 2%, and to commit a substantial portion of those new funds to programs for reinvestment in much needed housing in our community. Funds allocated from the tax might be directed to the Housing Trust Fund of the City of Ithaca which we will be urging the City to establish in our Final Report at the end of June. In our Report, we will be recommending a range of sources for that fund and would very much like to include possible allocations from the room tax in our recommendations. Our Task Force would be very happy to discuss these ideas further with you and your associates as well as any other ideas for potential collaboration between the City and the County in tackling the pressing need for more affordable housing in our community. Thank you. Sincerely, Steven Jackson, Chair Sean Killeen, Vice-Chair cc: Board of Representatives EOC Mayor Gutenberger Red Cross Common Council Better Housing of T.C. INHS Tompkins County Focus Board of Realtors Human Services Coalition IHA Mutual Housing Assoc. Southside Community Center 11 Rental Housing Task Force June 26, 1989 Mr. Stephen Weiss, Chairman Cornell University Board of Trustees Office of the Trustees Day Hall Cornell University Ithaca, New York 14853 Dear Mr. Weiss: The City of Ithaca's Rental Housing Task Force, appointed six months ago by the Mayor, has been studying the rental housing situation in the Ithaca community. Our report will soon be presented to Common Council and we expect that a permanent Rental Housing Commission will be established to address the urgency of the local situation and to act upon our recommendations. A working committee of the current task force has met with officials from both Cornell University and Ithaca College to discuss the impact of the student and staff populations on the rental market in greater Ithaca. It is clear to us that there is a serious shortage of affordable housing in our city. It is also quite clear that the campus population does play a significant part in the overall vacancy rate and in rental rates. Some say that the presence of students in our housing markets drives the setting of rates, as landlords look at what Cornell charges in its residence halls and uses that to figure what students will be willing to pay for rental units within our community. Studies conducted by members of our Task Force indicate that rents in downtown Ithaca have increased by more than 100% in the past decade, and by more than 10% in the past year. We were encouraged to hear reports of your interest in establishing more on-campus housing for Cornell students, and would be pleased to discuss these plans further with you. However, we have grave concerns over the influence that even on-campus costs have on the housing market in Ithaca. We urge you to proceed to find ways to have Cornell provide more housing for its students while, at the same time, keeping the costs for this housing at reasonable rates. 12 Best wishes in your position as Chairman of the Board of Trustees. We would hope to begin discussions with you in the near future as you set your agenda and turn to the topic of housing as a priority concern for Cornell and • the City. Sincerely, Steve Jackson, Chair Sean Killeen, Vice-Chair cc: Mayor Gutenberger Common Council Members of Cornell University's Board of Trustees John Burness, Cornell University William Gurowitz, Cornell University 13 SECTION C: SPECIFIC SUGGESTIONS DEVELOPED BY THE WORKING GROUPS OF THE RENTAL HOUSING TASK FORCE TO BE PURSUED FURTHER BY THE PERMANENT RENTAL HOUSING COMMISSION 14 I . • Zoning Changes to Encourage Affordable Housing While Protecting Neighborhoods (submitted by Sean Killeen and Laura Lewis) **Press for deliberation on new zoning categories, such as R2C, which would allow greater flexibility in the development of affordable housing while respecting existing neighborhood structures. At the same time, press for revision of R3a and R3b to also permit greater flexibility. **Urge that land currently designated P (public) be differentiated by subcategories as with other zoning designations (P1, P2, P3) in order to promote more efficient public use and benefit. **Evaluate land within the City and outlying communities currently holding tax exempt status within the framework of new or revised zoning categories. II. Tenants' Rights. Model Leases, and Mutual Responsibilities (submitted by Valerie MacDougall and Sean Killeen) **Urge Cooperative Extension's "Rent Smart" model lease be used locally under spirit of consumer law insuring mutual fair play and informed transaction. **Make clearly evident that security deposit agreement is subsection of lease. **Produce a one page (modelled on the City's Recycling rules handout) "Rules of Renting" which highlights: privacy and limited rights of landlord access; lease in force if property sold; limits on security deposits; emphasis on local laws, including Fair Housing, Recycling, Smoking. **Urge continuous monitoring and revision of booklets describing tenants' rights by private interest groups like CPIRG or Community Dispute Resolution Center. **Provide guide to tenants on extensive prohibitions (pets, tuba- playing, waterbeds, etc. ) and penalties for infractions; include discussion of prohibitions which have legal basis and which are merely whimsical? **Require certificate of occupancy and emergency phone number to be posted in main entrance hall of rental complex. **Credit voucher for past positive behavior as tenant could be developed as waiver mechanism for security deposit (modelled on concept already used by utility companies) . **ACC Cable, NY Telephone, and NYSEG security deposits could be used to capitalize revolving security fund for utilities. 15 III . Security Deposits (submitted by Jean Rector and Sean Killeen) **Equal treatment of all renters regarding security deposits on all types of living units (rooms, apartments, etc. ) is objective often determining minimal legal requirements; simplify and clarify range of types of security deposits (space, key, trash can deposits, etc. ) and range of options (1st month, last month, etc. ) . **Uniform practice on security deposit interest. **Portion of basic security deposit to be placed in revolving fund to enable those of limited means to borrow from this start-up fund. **Return of deposit within "reasonable time" to be locally defined as no more than 30 days. **Statement of repairs made must be provided to tenant by landlord if security deposit charges are applied. Efforts at time of lease signing, perhaps through video recording, should be made to mutually agree on standards for judging condition in which unit should be left. IV. Recommendations for Ithaca College and Cornell University (submitted by Neal Howard and Laura Lewis) **The Office of Residence Life at Ithaca College should make it a priority to deal with off-campus student life for the approximately 2000 I .C. students who will live in the Ithaca community each year. We recommend that the Office of Residence Life clearly identify a staff member whose responsibility it will be to develop programs which facilitate positive interaction between community members and the off-campus student population. A more organized student advisory board should be coordinated by this person and together they could address student questions and responsibilities concerning renting. Town meetings may also serve to clear the air on issues of concern for area residents. **Both Ithaca College and Cornell University can contribute resources to improve the condition of affordable housing in the Ithaca community whether it is through donations of land for housing development or the encouragement of faculty research and information sharing on topics such as funding sources for affordable housing, identifying communities which have developed low cost housing, increased involvement in existing programs such as INHS. 16 **To provide more low and middle income housing in Ithaca, Ithaca College and Cornell ought to be urged to donate a parcel of land for new construction. Without the cost of the land, a developer could build cheaper units with affordable rents. Since this land was previously tax exempt, tax money would now be generated. The City of Ithaca could use this new money for promoting affordable housing either through: 1) direct subsidies to landlords and/or tenants or 2) further development of affordable housing units. [submitted solely by Neal Howard] V. Sweat Equity (submitted by Paula Weiss) **Work out procedures and regulations necessary to institute sweat equity programs for housing. **Building Code Regulations: interpret state and local law to allow occupancy before house is complete, by drawing distinctions between life safety and aesthetic issues. **Financing: encourage loan programs that allow financing of sweat equity construction. **Guidelines: develop uniform guidelines for instituting a program that developers or agencies who want to produce this housing option can follow. VI . Transportation (submitted by Paula Weiss) **Recommend that the City (and County) adopt a policy of trying to locate higher density affordable housing near the public transportation lines and where infrastructure (water and sewer) are or could become available. 17 VII . Housing for Seniors (submitted by Jean Rector) **Encourage development of more apartments for seniors, most of which should be subsidized (i.e. like McGraw and Titus) . **Encourage development of more residential care facilities, such as Ithacare. **Change zoning (if necessary) to permit adult day care in private homes and shared living residences (6 to 8 adults living together as family) . **City should require Cornell to inspect student apartments. **City should inspect all living units more often than every three years. **Establish some type of transportation service for evening hours -- to go to concerts, etc. 18 SECTION D: AREAS OF CONCERN AND POSSIBLE ACTION DEVELOPED BY THE RENTAL HOUSING TASK FORCE FOR FURTHER CONSIDERATION BY THE PERMANENT RENTAL HOUSING COMMISSION 19 At its meeting of March 27, 1989 [as recorded in the minutes of that meeting] the Task Force undertook the task of putting proposals for action on the table. After discussion, and contributions from all Task Force members, the following not necessarily independent topics, ideas, and proposals had been raised: *relationship of Cornell and Ithaca College to housing *funds for and creation of Housing Trust Fund *enforcement *need for a permanent board and staff *developer impact fees *rent control and/or rent registry *recycling of housing *loan programs for security deposits *inter-municipal planning *interest on security deposits returned to all renters *posting of certificates of occupancy in lobby of apartments *model leases and tenants' bill of rights *expanding public assistance for subsidized housing *mutual housing and/or community land trusts *regulatory relief to encourage private developers to provide affordable housing *zoning changes which would provide neighborhood protection while encouraging more housing *providing more housing opportunities for those with disabilities *need for more information about the costs and benefits of being a landlord *define affordable housing *formation of a tenants association *increase housing supply, building housing not shelter *additional housing on the Cornell campus *involving BOCES in efforts to build affordable housing *innovative sources of funds, including diverting part of the tourism room tax to housing, a rental housing tax assessment, a tax on off-campus students by the university *increasing the decentralization of landlords *increasing public transportation to outlying areas where more affordable housing is or could be located *encouraging construction of diverse housing types *encouraging sweat equity *possible zoning changes to accommodate needs of elderly *encourage volunteer built housing *encouraging businesses to do something about affordable housing After this discussion, various members raised the difficulty of having so many issues to look into and so little time. It was proposed by the Chair that it might be appropriate to approve at this time a motion indicating the Task Force's conclusion that a permanent board of the City would be required. at a minimum. to continue discussion and investigation of these topics raised by the Task Force where the Task Force will not have the time to look into them. On the motion of the Chair. it was unanimously agreed (Lytel absent) that a vermanent board would be recommended to Council to deal with issues of affordable housing and rental housing. [Underlining added] 20 SECTION E: DISSENTING VIEWS OF MEMBERS OF THE RENTAL HOUSING TASK FORCE WITH RESPECT TO THE RECOMMENDATIONS OF THE TASK FORCE AND THE LETTERS SENT BY THE TASK FORCE 21 June 23 , 1989 City of Ithaca Common Council . L/ 108 E. Green St. Ithaca, N.Y. 14850 Dear Council Members: Enclosed please find my report on Rent Control and Rent Stabilization as presented to my fellow Rental Housing Task Force members. I think it is important that you read the substantial evidence on the negative impact of any rent regulations on a municipality. I am opposed to a rental registry for the City because I see it as a "foot in the door" for future control. As a manager of over 600 apartment units, I can assure you that any plan for the City to control security deposits will result in chaos. Also note that security deposits are now regulated by New York State General Obligations Law (see enclosed) . My recommendation for the membership of a permanent Rental Housing Commission is a more varied committee: one Senior Citizen, one tenant, one landlord, one common council person, etc. I do not agree that the majority must always consist of tenants. If a commission's purpose is to study the issues , more involvement from community business people is essential. I would be happy to answer any of your questions -- please feel free to contact me. Sincerely, Neal Howard NH:rd Encl. 22 June 23 , 1989 Stephen Weiss, President Cornell University Board of Trustees Ithaca, New York 14853 Dear Mr. Weiss: As a member of the Rental Housing Task Force for the City of Ithaca, I personally oppose the recommendations to you from our committee that were voted on June 19, 1989 for the following reasons. First, I don't believe the vacancy rate in the City of Ithaca is less than 2% -- my experience this year with managing over 100 apartments for various landlords shows the vacancy rate to be closer to 5%, and that is the rate local banks use when processing a commercial loan. Secondly, I disagree with my fellow rental housing members that rents have risen 13% over the past sixteen months. I have enclosed my report to the committee, and on pages four and five I discount the "study" that was made of apartments from the Ithaca Journal. And thirdly, I do not agree that Cornell should be urged to build more units for its students. As I have cited in my report, there is currently a glut of apartments on East Hill due to private development. My recommendation is University-owned land be donated to private developers to build low and moderate income housing within the city. Please feel free to contact me should you have any questions. Sincerely, Neal Howard 427 N. Cayuga Street Ithaca, N.Y. 14850 273-1669 23 Steven I. Jackson 142 Giles St. Ithaca, N.Y. 14850 (607) 273-2149 • June 26, 1989 To the Mayor and Members of Common Council: I write to dissent in a small , but significant, way from the recommendation of the Rental Housing Task Force urging further examination of a system of rent stabilization. I believe that it is time to acknowledge the desirability of such a system as one part of a solution to our crisis of affordable housing. I believe that it is time to mandate that the permanent Rental Housing Commission find the most appropriate manner in which such a system should be implemented in the City of Ithaca. Ithaca's rents have climbed out of control , increasing by more than 100% between 1978 and 1988. During this same period, incomes rose a little less than 70% and price inflation rose a little more than 70%. The result has been an increasing transfer of income from renters to landlords. In the past year, rents have continued to rise, increasing by more than 10%, while inflation and income growth have been much lower. With rents pricing larger and larger segments of the population out of our market, a wide-ranging attack on the problem of affordability is called for. It seems difficult to me to justify City expenditures or contributions from others until we have moved towards assuring ourselves that landlords and developers are not reaping super- profits. Guaranteeing a reasonable rate of return to landlords, while eliminating the possibility of outrageous rents at the expense of local u renters, is the sole object of a rental stabilization system. Over 200 communities in the United States, and more than 60 in New York State (outside New York City) , have adopted systems of rental regulation which keep rents from escalating out of control . The main outlines of such a system are clear: set a baseline based on existing rents; allow increases tied to increases in the inflation rate; do not allow increases at all unless adequate maintenance is certified; allow rent increases to capture the costs of capital improvements; and allow for partial or complete decontrol of rents upon vacancy. This basic system has been used and evaluated in so many different settings that it is clear to me that its basic road-worthiness should not be at issue. Details of its implementation should be. 24 It is important to recognize that rent stabilization will not solve the crisis of affordability; however, it will help us to keep it from getting worse. It will also assure all of us that landlords are part of the solution to our housing problems not part of the problem. If major landlords had not opted for maximizing their rental income, rather than calculating their rents based on their costs, rental regulation would not be necessary. But speculation in rental housing has become pervasive, and rental regulation is unavoidable as one small , but essential , piece of an attack on shelter poverty which is both just and effective. I therefore urge you to recommend that the permanent Rental Housing Commission move expeditiously to recommend steps to Council for the seeking of State authorization and local implementation of a system of rent stabilization modelled on the State's Emergency Tenant Protection Act, but modified to meet the needs of our local market. Sincerely, Steve Jackson Chair, Rental Housing Task Force 25 • L►,b,t- RESOLUTIONS to Council . ) 2. Term of Appointments . a. All members of the Commission shall be appointed for three year terms, except that the initial appointments shall be made for three members each at one, two, and three year terms such that every year three seats will become vacant. 3. Responsibilities of the Commission. a. Advising Common Council on steps to be taken to improve the accessibility, affordability, and quality of rental housing in the City of Ithaca. b. Advising Common Council on steps to be taken to achieve the goals of the City of Ithaca' s housing policy. c. Advising both the Board of Planning and Development and the Board of Zoning Appeals concerning zoning changes and appeals for variances and any potential impacts those changes or appeals might have on rental housing affor- dability and availability. d. Advising both the Building Department and the Planning Department on the allocation of staff time to, and the design of programs for, the improvement of rental housing conditions, and calling upon the Directors of those depart- ments or their designees to appear as necessary at the meetings of the Commission. e. Readying for implementation those recommendations of the Rental Housing Task Force which call for further elabora- tion before implementation. f . Studying further those issues and proposals left to the Commission by the Rental Housing Task Force and such other issues and proposals as it may become necessary to examine. g. Implementing programs or activities related to rental housing, as hereafter directed by the Common Council . h. The preparing of requests for funding from Common Council for rental housing activities. Supp. #15, 5/2/90 R-106 State St.Qssocs, @6/22/92 21:@0 P.@2 Yklib,t MEMORANDUM To: Rental Housing Commissioners From: Mark Finkelstein Re: Proposal to reconstitute Rental Housing Commission Date: May 27, 1992 Why Reconstitute? 1. To have a commission such as ours whose membership is heavily slanted offends fundamental notions of fairness and openness, going to the essence of our democracy, . Under the current rules, it would be possible to have an RHC with no landlord representation. 2. Those who might oppose reconstitution should ask themselves: what arguments as to fairness would they make if an RI-3C had been constituted under rules that permitted a situation in which not a single tenant would be a member? The same principles of fairness apply here. 3. The argument has been made that it is fair to have a disproportionately small number of landlords because they represent a relatively small percentage of the population. That ignores the tact that the RHC is specifically estahlished to deal with landlord/tenant issues, in which landlords have an equal interest and involvement. Let us imagine that a Commission had been established to improve race relations. Would anyone argue that of a 9- member Commission, a maximum of one member of a racial minority should be a member because they represent a small percentage of the local population? 4. The RHC could simply do a better job if we had a more balanced composition. To date, the RHC has operated in an atmosphere of mistrust and mutual antagonism. As a result, relatively little has been accomplished. To a significant extent, this can be attributed to the RHC's unbalanced composition, which has led the landlord community to feel that the RHC, and by extension city government in general, is stacked against it. 5. Within our community there are many landlords of good faith, with lots of relevant experience, energy and good ideas. If we could include more of them on the RHC, not only would we benefit from those qualities, we would I believe also find that landlords as a group, feeling they were getting a fair • State St. Assocs. 06/22/92 21:01 P.03 2 shake, would adopt a more positive and cooperative attitude. The bottom line would be more results for tenants and landlords. For the RHC to work, landlords must be ruude u purt of the solution, not he scapegoatect as the cause of the problem. 6. The attitudes and proposals that have been expressed at the RHC, as well as its composition, have once again given the city a black eye, not only in the housing sector, but among the entire business community. Once again the City of Ithaca distinguishes itself as the least business-friendly part of Tompkins County. Yet if we want to have housing that is more plentiful and affordable, we are going to need to attract more people into the city to create that housing. Reconstituting the RI-IC along fairer lines would be an excellent first step in sending the right message. Does the RHC: have the Right to Propose a Change in Composition to Common Council? At least one member of the RHC has suggested that it is beyond the power of the RHC to propose to Common Council that the composition of the RHC be changed. The argument made was that since Common Council created the RHC, it is up to Common Council to change the RHC. But the fact is that Common Council adopts all city ordinances, not just that creating the RI IC. It is precisely our task to recommend to Common Council which ordinances should be adopted or changed to further the goals of our Commission. This is borne out in at least three separate provisions of the charge to the RHC contained in the ordinance which established it, namely: "3. a. Advising Common Council on steps to be taken to improve the accessibility, affordability, and quality of rental housing in the City of Ithaca. 3. b. Advising Common Council on steps to be taken to achieve the goals of the City of Ithaca's housing policy; and 3. f. Studying further . , . such other issues and proposals as it may become necessary to examine." The very essence of the current proposal is that the entire rental housing agenda would be advanced through the recomposition of a more effective State St.Fissocs, 06/22/92 21:02 P,04 3 A proposal to that effect from the RHC to Common Council is thus indisputably an appropriate fulfillment of our responsibilities. How should the RHC be Reconstituted? The current rules call for the RIIC to be composed as follows: 9 members, all residents of the city, of whom at least 4 are tenants. Y memhor from each ward. 2 members from staff or board of not-for-profit housing providers. 1 landlord, property manager or banking community member. 1 member from Common Council. There are undoubtedly many possibilities for an improved composition of the RUC, but certain principles would seem to apply. First, the current imbalance between landlords and tenants must be addressed. Under the current rules, there could be anywhere from 4 to 9 tenants and not a single landlord. A member of the banking community should not necessarily be presumed to know or represent the interests of the landlord community. While the ward of residence of members might be taken into account as an informal matter in making appointments, we should not restrict membership along ward lines. We should and have been looking at matters from a city-wide perspective. The "not-for-profit" category should prohahly he expanded to include housing advocates as well as providers, e.g. a member of Neighborhood Legal Services. Adopting the foregoing principles, one possible proposal would be for an RHC constituted as follows: 9 members, to includei 3 tenants 3 private sector landlords or property managers of city rental housing property (not necessarily residents) 2 staff or board members of not-for-profit housing advocates or providers 1 member of Common Council o� ` ;4./.• sri1v •\rt •''COR •`��, PoRA7e0 CITY OF ITHACA 1013 EAST GREEN STREET ITHACA, NEW YORK 141350 OFFICE OF TELEPHONE: (607)274-6504 CITY ATTORNEY FAX: (607)272-7348 MEM0I22kMTMIM TO: VMaY or Ben Nichols Pat Kennedy, Assistant City Attorney Rick Eckstrom, Building Commissioner Cookie Paolangeli, City Clerk Members, Rental Housing Commission Members, C & 0 FROM: Chuck Guttman, City Attorney DATE: July 7, 1992 SUBJECT: PRELIMINARY DRAFT - SECURITY DEPOSIT ORDINANCE Enclosed please find a very preliminary draft of a proposed ordinance regarding security deposits and some policy questions which I expect Council will consider. I would appreciate any preliminary comments or concerns you have regarding this matter. This may be discussed at the Charter and Ordinance Committee meeting to be held on Thursday, July 9 . I realize that you are getting this just prior to that meeting. Please feel free to get me any comments either before, during or after the C & 0 meeting. Enclosure • •M Equal Opportvney Empioyx'OM an AXrmahve Acton Program' Recycled Paper OUTLINE OF SECURITY DEPOSIT ORDINANCE I. Statement of Findings of Fact and Statement of Purpose A. The City of Ithaca has , a significant tenant population B. Equitable landlord-tenant relations are a matter of public- welfare C. Prompt reasonable return of security deposits is an important factor in tenants being able to obtain subsequent housing D. The issue of return of security deposits is a source of potential conflict between landlords and tenants which may result in a burdensome affect on the Ithaca City Court. II. Definitions 1 A. Landlord: Person who has the right to exclusive possession of certain premises and who, for consideration under a rental agreement, agrees to • relinquish that right to another temporarily, retaining a right of reversion of the premises upon termination of such agreement. B. Normal Wear-and-Tear: The deterioration which occurs, based on the use for which the rental unit is intended, without negligence, carelessness , accident or abuse of the premises or equipment or chattels by the tenant or members of his/her household or their invitees or guests. The term "normal wear-and-tear" does not include sums or labor extended by the landlord in removing from the rental unit articles abandoned by the tenant such as trash. If a rental unit was leased to a tenant in a habitable condition or if it was put in a habitable condition by the landlord during the term of the tenancy, "normal wear-and-tear" does not include sums required to be expended by the landlord to return the rental unit to a habitable condition, . unless expenditure of these sums was necessitated by actions of the landlord, events beyond the control of the tenant, or actions of someone other than the tenant or members of his/her household or their invitees or guests. C. Rental Agreement: A written or oral agreement embodying and fixing the terms and conditions for the transfer of possession and the use and occupancy 1 of premises whether or not for a definite period of time. D. Residential Unit: Any premises which are used for residential purposes under the terms of a rental agreement. E. Security Deposit: The total of all payments and deposits given by a tenant to the landlord as security for the performance of the tenant' s obligations. F. Tenant: A person entitled to exclusive possession and occupancy of a residential rental unit and the right of use of the appropriate appurtenances as provided in a rental agreement including any other person eighteen ( 18) years of age or over who shares such a unit with the knowledge and consent of the landlord. III . Notification to tenant of information regarding security deposits including written receipt, statement of where the deposit is being kept, statement that the deposit is not the property of the landlord and a statement as to whether or not the deposit is earning interest. IV. Obligation of tenant to clean premises - the tenant shall place the rental unit in as overall clean condition as when the tenancy commenced, excepting normal wear-and- tear. V. Return of security deposit by landlord to tenant. Within thirty ( 30) days after the termination of the tenancy or the surrender of the premises, whichever occurs later,• the landlord shall return to the tenant the full security deposit deposited with the landlord by the tenant, or, if there is actual cause for retaining the security deposit or any portion of it, a written statement itemizing the reasons for the retention. The written statement itemizing the reasons for the retention of any portion of the security deposit shall be accompanied by a full payment of the difference between the security deposit and the amount retained. Nothing in this section may preclude the landlord from retaining the security deposit to cover the costs of storing and disposing of unclaimed property, for non-payment of rent and non- payment of utility charges which the tenant was required to pay directly to the landlord. VI . Wrongful retention of the security deposit by the landlord. In the event that the landlord unreasonably fails to return all or a portion of the security deposit 2 ,r f a court may award to the tenant triple the amount of that portion of the security deposit wrongfully withheld from the tenant, together with reasonable attorney fees and Court costs. In determining whether to award such treble damages and/or attorney' s fees the Court may consider the past practices of the landlord regarding return of other security deposits. Should the landlord, within the aforesaid thirty (30) day period, fail to return the entire security deposit or fail to provide the aforesaid written statement itemizing the reasons for retention of the security deposit accompanied by full payment of the difference between the security deposit and the amount retained, it shall be presumed that the landlord is willfully and wrongfully retaining the security deposit. VII. Trust Provisions and Burden of Proof. The security deposit given to the landlord as part of a residential agreement shall continue to be considered the money of the tenant and shall be held in trust by the landlord. It shall not be treated as an asset to be commingled with the other assets of the landlord. In any court action brought by a tenant for the return of the security deposit, the landlord shall bear the burden of proving that the withholding of the security deposit, or any portion of it, was not wrongful. VIII . Waiver of provisions void. Any attempted waiver of the terms of this ordinance by a landlord or tenant by contract or otherwise is void and unenforceable. IX. Effective Date. X. Severability. • 3 List of Policy Issues to be Scheduled by Council. 1. Should there be, by ordinance, a limit on the amount of security deposit which a landlord may collect. This issue was discussed in the Rental Housing Commission. - Nothing was stated in the recommendation of April 2, 1992. Please note both Madison, Wisconsin and Burlington, Vermont have limits of one months rent as a maximum security deposit that may be collected. The State of Maine has a two-month limit. 2. This ordinance will obviously not apply to any landlord who does not charge a security deposit. Madison, Wisconsin also exempts landlords who charge fifty percent ( 50a) or less of one month' s rent as a security deposit. Does the City of Ithaca wish to have some analogous provision exempting landlords who charge a comparatively small security, either from the effect of the entire ordinance or certain portions of it. 3 . Should a written check-in/check-out procedure be required. a. If such a procedure is required, what is the effect of non-compliance by a landlord? What is the effect of non-compliance by the tenant? b. If not required, per se, can either a landlord or tenant require that the other party follow a written check-in/check-out procedure, and, if so, what is the effect of the other party' s failure to comply. c. Must a landlord offer to the tenant the right to have a written check-in/check-out procedure. See Section 32. 07 ( 6) of the Madison Code. d. If a written check-in/check-out procedure is to be required or at least offered is there a specific type of form that must be used. 4. What is the appropriate period of time within which the landlord must return the security deposit or give an itemized statement of deductions. 5. The attached outline provides that a tenant may bring an action against landlords for wrongful retention of security deposits and the Court may, in the appropriate circumstances, award treble damages and attorney' s fees. The recommendation for the Rental Housing Commission also • provided in Section (e) that "repeated failure to comply with security deposit sections of Ordinance may be cause for the Court to impose punitive fines." Is it the 1 • intent of Council that we establish this as a penal violation which could be prosecuted? If so, which department would be responsible for the prosecution of this ordinance. 6 . Can treble damages and/or attorney' s fees be assessed against a tenant, and, if so, for what cause - i.e. intentional/willful damages by the tenant in excess of the security deposit which are not repaired by the tenant prior to the thirty day period - possibly after notice to the tenant by the landlord. 7 . Must the landlord notify the tenant of the deductions from prior security deposits or alternatively file such information with the Building Department. 8 . Should all tenants receive interest on security deposits or only when required by State law - see Madison, Section 32. 07 (3) . Should the ordinance require that in all written leases certain other provisions of law be specifically set forth such as occupancy limits or certain sections of New York law which establish landlord/tenant rights/obligations which may not be commonly known such as how security deposits are handled when the property is transferred by a landlord to a subsequent landlord; mutuality of attorney fee provisions; etc. 2 Mark Finkelstein 210 Lake Street #3G Ithaca, New York 14850 607-272-4000 fax 272-4038 July 14, 1992 Ms. Teresa Alt 108 E. Green St. Ithaca, NY 14850 Dear Teresa: Could you kindly arrange for the enclosed memo and legislation to be photocopied and distributed to all Rental Housing Commissioners with the materials for the July 22nd meeting. Full copies should also go to all Common Council members, the Mayor and the Planning Department. With many thanks for your help, and best regards. Yours truly, Mark Finkelstein MEMORANDUM To: Rental Housing Commissioners From: Mark Finkelstein Date: July 13, 1992 Re: "Step Up to Affordable Housing": A Proposal for Incentive Zoning in the City of Ithaca More affordable housing. Less suburban sprawl. More properties on the tax roll. All with no expense to the taxpayer! That is the goal of the proposal described in this memo. It sets forth for your consideration a plan for the creation in Ithaca of incentive zoning for affordable housing, which I have dubbed "Step Up to Affordable Housing." Just two weeks ago, there took effect in New York State an act of the state legislature which authorizes cities to provide for a system of zoning incentives or bonuses to be granted to people in return for benefits that will accrue to the city. Such benefits are specifically defined to include "housing for persons of low or moderate income." The act (a copy of which is attached hereto) was co-sponsored by our State Senator Jim Seward and State Assemblyman Marty Luster. Zoning incentives or bonuses are defined as adjustments to the permissible population density, area, height, open space, use, or other provisions of the zoning ordinance. In other words, in return for creating affordable housing, the requirements in a given zone would be relaxed to permit the creation of more units. The idea is that by getting more units per acre and relaxing other restrictions, the cost per unit of construction is reduced, so that it becomes attractive to include the affordable housing element in the overall plan. The specifics of the system of zoning incentives, and the requirements to obtain it, would of course be the subject of considerable research and debate. In order to qualify for the incentives, how much affordable housing would have to be included, at what maximum rent or purchase price, for what period of time, etc? In return, how much of a bonus would be granted? While the possible permutations are unlimited, one possibility that I would 2 put forward, to get the ball rolling, would be a plan I call "Step Up to Affordable Housing." The idea would be that in return for meeting the requirements for creating affordable housing, the bonus granted would be to "step up" the zone in which the housing was being created from the current zone to the next denser zone. For example, assume the proposal is to build in an R-1 zone, where normally only single family homes, with a maximum lot coverage of 20%, are permitted. A qualifying applicant would be allowed to build as if construction were occurring in an R-2 zone. Thus a two-family home, with 25% lot coverage, would be permitted. Similarly, R-2 would be stepped up to R-3 (going from a maximum three- story, two-family dwelling to a 4-story, multi-family dwelling), and R-3 would step up to B-2. I would stress that this is only offered as one possible approach. There may well be other, better ways to achieve the goal, and I would encourage all members of the Rental Housing Commission to offer their alternatives or amendments. As to the requirements for qualifying for the bonus, again we would need to think and discuss the issues in detail. Presumably requirements would be expressed in terms of some percentage of the units to be affordable, for some minimum period of time (e.g. 15-20 years). The standards established by various HUD programs would be a starting reference point. We can anticipate that there may rightly be concerns expressed by residents about the potential for construction out of scale with the character and density of the neighborhood. The act does require however that before the system is implemented in a given zone, Common Council would have to make a determination that: 1. there will be no significant environmentally damaging consequences and that the bonuses would be compatible with the development otherwise permitted in the zone; and 2. that the zone has adequate resources, environmental quality, transportation, water supply, waste disposal and fire protection to handle the increased activity. Moreover, my proposal assumes that the city's site plan review ordinance would remain in effect, providing additional protection for the neighborhood 3 regarding potential impacts. I would respectfully submit to you that current proposal offers the following major advantages: 1. in these times of severe budget restraints, it permits the city to use the zoning law to "subsidize" the creation of affordable housing without spending one penny of taxpayer money; 2. it is fair and egalitarian in its approach. Rather than concentrating the creation of affordable housing in any one zone, it spreads both the opportunities and the potential impacts of affordable housing to every residential zone in the city; 3. the Step Up system is relatively simple. It permits us to "piggy back" off all the work that has been done in establishing the many requirements that go into defining each of the existing zones, rather than reinventing the wheel by creating one or more new zones. This will save both time and the expense required in having the Planning Department and/or outside consultants perform such work; and 4. the proposal is environmentally sound. By encouraging more housing construction within the city, we help to reduce suburban sprawl and preserve green space in Tompkins County. I look forward to working with you to refine this proposal, to send it along to Common Council and to seeing it implemented. I believe it has the potential to become the most significant contribution to the creation of affordable housing coming out of our Commission. cc: Members of Common Council Mayor Nichols Planning Department STATE OF NEW YORK • S. 7173--A A. 9802--A • SENATE - ASSEMBLY • March 3, 1992 IN SENATE -- Introduced by Sens. COOK, McHUGH, SEWARD, NOLAN, QUATTROCI- OCCHI -- (at request of the Commission on Rural Resources) -- read twice and ordered printed, and when printed to be committed to the • Committee on Cities -- committee discharged, bill amended, ordered re- printed as amended and recommitted to said committee IN ASSEMBLY -- Introduced by M. of A. LUSTER, BENNETT, MAGEE, TONKO, COOMBE,•O'NEIL -- read once and referred to the Committee on Cities -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general city law and the village law, in relation to incentive. zoning. The People •of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general• city law is amended by adding a new section 81- 2..b to read as follows; 3 5 81-b. Incentive zoning; definitions, purposes, conditions, 4 procedures. 1. Definitions. As used in this section: 5 (a) "Incentives or bonuses" shall mean adjustments to the permissible 6 population density, area, height, open space, use, or other provisions 7 of a zoning ordinance, local law, or, regulation for a specific purpose 8 authorized by the legislative body of •a city. 9 (b) "Community benefits or amenities" shall mean open space, housing 10 for persons of low or moderate income, parks, elder care, day care, or 11 other specific physical', social, or cultural amenities, or cash in lieu 12 thereof, of benefit to the residents of the community authorized by the 13 legislative body of a city. 14 (c) "Incentive zoning" shall mean the system by which specific incen- 15 tives or bonuses are granted, pursuant to this section, on condition 16 that specific physical, social, or cultural benefits or amenities would 17 inure .to the community. , EXPLANATION--Matter in.'italics (underscored) is new; matter in brackets ( :) is old law to be omitted. LBD12598-04-2 CPNNTE0 ON RECYCLE)MIN • S. 7173--A 2 . A. 9802--A 1 2. Authority and purposes. In addition to existing powers and authori- 2 ties to regulate by planning or zoning, including authorization to 3 provide for the granting_of incentives, or bonuses pursuant to other en- 4 abling law, a legislative body of a city is hereby empowered, as part of 5 a zoning ordinance, local law or regulation, to provide for a system of 6 zoning incentives, or bonuses, as the legislative body deems necessary 7 and appropriate, consistent with the purposes and conditions set forth 8 in this section. The purpose of the system of incentive or bonus zoning 9 shall be to advance the city's specific physical, cultural and social 10 policies in accordance with the city's comprehensive plan and in coordi- 11 nation with other community planning mechanisms or land use techniques. 12 The system of zoning incentives or bonuses shall be in accordance with a 13 locally-adopted comprehensive plan. 14 3. Implementation. A system of zoning incentives or bonuses may be 15 provided subject to the conditions hereinafter set forth. (a) The 16 legislative body of a city shall provide for the system of zoning incen- 17 tives or bonuses pursuant to this section as part of the zoning ordi- 18 nance, local law, or regulations. In providing for such system, the 19 legislative body shall follow the procedure for adopting and amending 20 its zoning ordinance, local law, or regulations, including all provi- 21 sions for notice and public hearing applicable for changes or amendments 22 to such ordinances, laws, or regulations. 23 (b) Each zoning district in which incentives or bonuses may be awarded 24 under this section shall be designated in the city zoning ordinance, 25 local law or regulations, or amendment thereto. 26 (c) Each zoning district in which incentives or bonuses may be 27 authorized shall have been found by the legislative body of a city, af- 28 ter evaluating the effects of any potential incentives which are possi- 29 ble by virtue of the provision of community amenities, to contain ade- 30 quate resources, environmental quality and public facilities, including 31 adequate transportation, water supply, waste disposal and fire 32 protection. Further, the legislative body of a city shall, in designat- 33 ing such districts, determine that there will be no significant environ- 34 mentally damaging consequences and that such incentives or bonuses are 35 compatible with the dev4lopment otherwise permitted. 36 (d) A generic environmental impact statement pursuant to the provi- 37 sions of 6 NYCRR 617.15 shall be prepared by the legislative body of a 38 city for any zoning district in which the granting of incentives or 39 bonuses have a significant effect on the environment before any such 40 district is designated, and such statement shall be supplemented from 41 time to time by the legislative body of a city if there are material 42 changes in circumstances that may result in significant adverse impacts. 43 Any zoning ordinance, local law, or regulation enacted pursuant to this 44 section shall provide that any applicant for incentives or bonuses shall 45 pay a proportionate share of the cost of preparing such environmental 46 impact statement, and that such charge shall be added to any site- • 47 specific charge made pursuant to the provisions of section 8-0109 of the 48 environmental conservation law. 49 (e) The legislative body of a city shall set forth the procedure by 50 which incentives may be provided to specific lands. Such procedure shall 51 describe: 52 (i) the incentives, or bonuses, which may be granted by the city to 53 the applicant; 54 (ii) the community benefits or amenities which may be accepted from 55 the applicant by the city; *•IRMO ON RECYCLED PAM t s -L • S. 7173--A 3 A. 9802--A •1 (iii) criteria for approval, including methods required for determin- 2 ing the adequacy of community amenities to be accepted from the appli- 3 cant in exchange for the particular bonus or incentive to be granted to 4 the applicant by the city; . 5 (iv) the procedure for obtaining bonuses, including applications and 6 the review process; and 7 (v) provision for a public hearing, if such public hearing is required 8 as part of a zoning ordinance, local law, or regulation adopted pursuant 9 to this section, and give public notice thereof by the publication in 10 the official newspaper of such hearing at least five days prior to the 11 date thereof. 12 (f) All other requirements of article eight of the environmental con- 13 servation law shall be complied with by project sponsors for actions in 14 areas for which a generic environmental impact statement has been pre- 15 pared, including preparation of an environmental assessment form and a 16 supplemental environmental impact statement, if necessary. 17 (g) Prior to the adoption or amendment of the zoning ordinance, local 18 law, or,regulation, pursuant to this section to establish a system of 19 zoning incentives or bonuses, the legislative body of a city shall eval- 20 nate the impact of the provision of such system of zoning incentives or 21 bonuses upon the potential development of affordable housing gained by 22 the provision of any such incentive or bonus afforded to an applicant or 23 lost in the provision by an applicant of any community amenity to the 24 city. Further, the legislative body of a city shall determine that there 25 is approximate equivalence between potential affordable housing lost or 26 gained or that the city has or will take reasonable action to compensate 27 for any negative impact upon the availability or potential development 28 of affordable housing caused by the provisions of this section. 29 (h) If the legislative body of a city determines that a suitable com- 30 munity benefit or amenity is not immediately feasible, or otherwise not 31 practical, the legislative body may require, in lieu thereof, a payment 32 to the city of a sum determined by the legislative body. If cash is ac- 33 cepted in lieu of other community benefit or amenity, provision shall be 34 made for such sum to be deposited in a trust fund to be used by the 35 legislative body of the city exclusively for specific community benefits 36 authorized by such legislative body. 37 4. Invalidations. Nothing in this section shall be construed to in- 38 validate any provision for incentives or bonuses heretofore adopted by 39 any city legislative body. 40 S 2. Paragraph a of subdivision 3 of section 7-703 of the village law, .41 as added by chapter 629 of the laws of 1991, is amended to read as 42 follows: 43 a. The village board of trustees shall provide for the system of zon- . 44 ing incentives or bonuses pursuant to this section as part of the zoning 45 local . law. In providing for such system the board shall follow the 46 procedure for adopting and amending its zoning local law, including all 47 provisions for notice and public hearing applicable for changes or 48 amendments to a zoning (ordinance) local law. 49 S 3. This act shall take, effect on the first day of July next succeed- 50 ing the date on which it shall have become a law. • • *•rw mo on munuo w1I ''RECEIVED jut. 1992 Office of the City Attorney • City of Eunice Gibson, City Attorney Assistant City Attorneys Madison • William A. Jansen Larry W. O'Brien City-County Building, Room 401 Robert E.Olsen 210 Martin Luther Kin Jr. Boulevard James M. Voss 9. John E. Rothschild Madison,Wisconsin 53710 James L. Martin 608 266 4511 Rick Petri FAX 608 267 8715 Carolyn S. Hogg Sally P. Probasco ./� Anne P. Zellhoefer July 22 , 1992 Leila C. Pine Litigation Assistant Patricia J. Sammataro Ms . Joan Bailey Office of the Mayor 108 East Green Street Ithaca, NY 14850 Re: Security Deposit Procedures Dear Ms . Bailey: I have briefly reviewed the proposed security deposit regulations which your City is considering enacting . Based on my experience with security deposit issues in the City of Madison, I have the following comments and suggestions : 1 . Under our ordinance, the landlord is required to provide check-in and check-out forms and give the tenant at least seven days after the beginning of the • tenancy to inspect the dwelling and notify the landlord of existing damages and defects . There is no requirement that the tenant fill out the form or to sign the form indicating approval of the check-in information. We see the use of the form by the tenant as an opportunity for the tenant to ensure that he or she will not be held responsible for pre-existing conditions . We have not seen the need to amend our ordinance to require that the tenant either fill out the form or buy into the landlord' s description of the condition of defects and damages ; neither have we seen the need to provide a consequence for the failure by the tenant to do so . Our Common Council has left use of the form by the tenant voluntary and the consequence of the failure to use it one to be decided by a judge in the event of a civil dispute under the facts and circumstances of each individual case . Given the concerns expressed by tenants regarding use of the form, your city may wish to begin by requiring the landlord to provide the form with the listed defects and make use of the form by the tenant voluntary. Your consequence in 1(c) of your proposal seems sufficient incentive to a tenant . In any case, I think it is unrealistic to imagine a tenant prior to occupancy of the unit to be willing to sign a check-in form indicating approval of the check-in information -- even if this tenant is given seven days to correct that form. 2 . I understand your landlords have objected to the procedure, finding it bureaucratic and difficult to administer . In fact, our landlords have been using this process successfully for some fifteen years . They view it as part of good business procedure to detail the existing defects and damages to a premises prior to a new tenant moving in and to provide an outgoing tenant with a specific list of reasons for withholding the deposit. Indeed such information is very useful to a landlord in the event of a dispute or civil litigation on the issue . 3 . Our city does not have a mediation process for disputes of this nature. Compliance with our security deposit process is achieved in several ways : (a) A failure by the landlord to offer either the check-in or check-out form forfeits the landlord' s right to withhold any amount from a security deposit for cleaning costs or damages; however, this does not prohibit a landlord from commencing a court action for the damages actually incurred. It merely ensures that the security deposit will be returned to the tenant pending ultimate determination of the landlord' s claim by the court; (b) If a landlord fails to provide the security deposit or the written statement of reasons required for the withholding thereof, the tenant may recover the money due together with damages in an amount up to twice the amount wrongfully withheld and reasonable attorneys fees . Under our state law, this amount is a mandatory double damages rather than a discretionary triple as our ordinance provides; (c) In addition, a failure to comply with the security deposit procedures is a violation of our ordinances upon conviction for which a landlord may be required to forfeit not less than $25 nor more than $500 . 4 . The City of Madison ' s requirement that the money be returned or accounted for within twenty-one days is absolute. I think placing the burden on the tenant of proving that the landlord has "unreasonably failed" to -2- return the security deposit or provide reasons for withholding same would be difficult . It builds in an ambiguity that could compromise the administration of the ordinance. We have found in Madison that twenty-one days is not an unreasonable time period within which the final accounting must be made. A recent Wisconsin Court of Appeals decision upholding the state law stated that the purpose of placing absolute liability on the landlord for wrongfully withholding the deposit was to discourage the retention of security deposits in all but the clearest of cases . 5 . Again, it may be difficult for the tenant to ascertain the past practices of a landlord regarding return of security deposits in order to satisfy the requirements of your ordinance and be eligible to obtain treble damages and attorneys fees . If your tenants are represented by tenant advocates , perhaps this will not present a great difficulty for them. 6 . Under the City of Madison ordinances, the mere fact that a tenant has failed to pay the full rent required in the lease by the end of the tenancy does not relieve the landlord of his or her obligation to follow the security deposit refund procedures . In order to retain the security deposit because past rent remains unpaid, all the landlord has to do is provide a written accounting within twenty-one days , specifying that the reason the security deposit has been withheld is due to the failure to pay rent . It has been the opinion of our Common Council that in all cases the tenant has the right to understand why his or her security deposit is being retained and to receive timely notice of the reasons . You ask if I am aware of any other municipalities that have check-in/check-out procedures or security deposit ordinances . I am sure there are many with security deposit ordinances . As I recall, the State of New Jersey has a state law on security deposits which requires the deposit to be held in a separate escrow account rather than being commingled with the landlord' s operating budget . It is my recollection that Baltimore also has a comprehensive landlord tenant ordinance which may include matters you are interested in. Since our ordinance is somewhat comprehensive, I have not really had occasion to do a survey of other municipalities on these issues . I hope this is of help to you . Very truly •urs , C of ' 12/7 n o Assistan i y Attorney CSH: sob -3- Center for Public Representation, Inc. 121 South Pinckney Street Madison. WI 53703-3338 608/251-4008 FAX 608/251-1263 July 23 , 1992 Joan Bailey City of Ithaca Mayor's Office 108 East Green Street Ithaca, NY 14850 Dear Ms. Bailey: Enclosed please find a copy of the Madison ordinance on security deposits and a sample check-in/check-out form taken from the Tenant Resource Center handbook. You will notice that the Madison ordinance differs from the proposed Ithaca housing ordinance in a number of ways: 1. Like the Ithaca proposal, Madison Ordinance 32 . 07 (6) also requires that the landlord provide a list of damages. However, the list consists only of those damages for which deductions were made from the previous tenant's security deposit. The check-in form itself is blank, and the tenant has seven days for inspection and notification. Under Ithaca's proposed ordinance, there does appear to be a higher risk of coercion with the landlord filling out a form and having the tenant sign it, despite the seven-day option for either party to discover and notify the other party in writing. Unlike the Ithaca proposal, wherein tenant's failure to comply with check-in/check-out procedure is a factor which the court may consider in assessing the credibility of tenant's claim, under 32 . 07 (7) of the Madison Ordinance, failure by the landlord to provide a check-in or check-out form forfeits the landlord' s right to withhold any amount from the security deposit. This does not preclude the landlord from subsequently suing the tenant for any damage to the apartment; s/he simply may not deduct it from the security deposit. From that standpoint, the Madison Ordinance seems more tenant oriented than the Ithaca proposal. 2 . Madison, as well as the State of Wisconsin, allows only 21 days for either full return of the deposit or an itemized statement showing reasons for withholding. When the Wisconsin Dept. of Ag. , Trade and Consumer Protection regulations were drafted, the hearing draft had provided for a 30-day period. However, it was decided that a 30-day period would provide a disincentive for prompt assessment by the landlord and would make it difficult to - more - limmommwmm Holthusen Hall Room 408 1324 West Wisconsin Avenue Milwaukee, WI 53233 414/288-3707 - 2 - distinguish between prior and subsequent tenant damage. Moreover, since the Real Estate Board had approved a widely used form lease that provided for return of the deposit within 10 days, the 21 day period seemed a reasonable compromise. 3 . Based on the concept that the security deposit is the property of the tenant until proven otherwise (1 (b) of the Ithaca proposal) , Madison tenants are entitled to 5% simple interest of the full security deposit per year, if the deposit was greater than one half of one month's rent. However, no rent credit is given for any month or months the rent was paid after the date agreed upon in the rental agreement. (32 . 07 (3) ) . To avoid administrative burdens on landlords, the tenant may deduct this amount from the twelfth month's rent. According to your letter, the Ithaca landlords are concerned about bureaucratic and administrative difficulties associated with the security deposit proposal. While check-in/check-out forms may be burdensome, they are still the best protection for both tenants and landlords vis a vis security deposits. Madison has been fairly successful in striking a balance between tenant and landlord rights. The Town of Fitchburg (Wisconsin) has incorporated a similar ordinance. Chicago also has a progressive landlord/tenant ordinance. For more information on the Chicago ordinance, you may want to contact Ed Sacks, author of the Chicago Tenants ' Handbook, at Box 57-8803 , Graceland Station, Chicago, IL 60657-8803 , (ph. 312-871-4700) . Another resource person to contact is Michelle Olson. She is the Executive Director at the Tenant Resource Center and is very familiar with the Madison ordinance, its background, and how it compares to other ordinances around the state. She can be reached at 14 W. Mifflin Street, Suite 4 , Madison, WI 53703 (ph. 608-257- 0143) . We hope we have been of help to you. Sin rely, ' // Roberta Diller Tina Yacker Sample Forms &Letters Page 103 CHECK-IN FORM - MOVING IN: Tenants should complete this form, have it signed by the landlord or manager if possible, keep one copy, and return it to the landlordlmanager within 7 days. A witness is advisable. t.. TENANTS: LANDLORD: • ADDRESS: APT: DATE: .!- - " KITCHEN BATHROOM (1) Range Medicine Cab. ' Hood Fan Toilet/Seat _ Dishwasher Tile/Caulk }` Disposal Towel Rack Refrigerator Sink/Faucets Sink/Faucet Tub/Shower • .1 I ' Cabinets Walls/Ceiling Floor Floor F. Hardware Walls/Ceiling BEDROOM (2) Light Fixtures Floor/Carpet s Furniture Walls/Ceiling Windows DINING ROOM Drapes/Rods Floor/Carpet Light Fixtures Walls/Ceiling Furniture Light Fixtures Windows BEDROOM (3) , Drapes/Rods Floor/Carpet Furniture Walls/Ceiling Windows Drapes/Rods Light Fixtures Furniture OTHER ITEMS: yir e�f TENANTS'SIGNATURES: LANDLORD/MANAGER'S SIGNATURE: WITNESS: yN' 4� y ' Rl„ :.- - CITY OF ITHACA Lls RENTAL HOUSING COMMISSION cc �i � Ct �0 v MINUTES dk'4P6 ��,et, 9� July 22, 1992 Nv•t s I`6 I Commission members present: Joan Bailey, Pierre Clavel, Ed Dormady, John Efroymson, Mark Finkelstein, George Frantz, Carol Mallison, Terry Pasco, Pam Zinder. Public: Larry Beck, James W. Carroll, Tommy Clavel, Jan deRoos, Geoff Dunn. The agenda was revised with additions. Minutes for June were not available. Landlord/Tenant communication with Commissioners was reported by E. Dormady and J. Efroymson. M. Finkelstein commented on a letter to the editor in today's Ithaca Journal, written by J. Bailey, saying he did not oppose legislation to return Security Deposits within thirty days, though he did object to the imposition of a mandatory check-in/check-out procedure. No public comment was given. E. Dormady reported that a Summer Youth Employment Service worker for the Mayor could be used to print more Landlord/Tenant information guides. It was agreed that ten more guides will be printed and provided, free of charge, to non-profits who do not have one already. E. Dormady made a motion, seconded by J. Efroymson, to charge the Information Working Group with the task of creating a plan to update the guide, printing additional copies, and recommending a reasonable fee to charge for future issues. Motion carried unanimously and their proposal will be put on next month's agenda. C. Mallison commented on Chuck Gutman's written outline of the Security Deposit Ordinance, specifically the questions at the end identified as "List of Policy Issues to be Scheduled by Council." The first question asks if Security Deposits should be limited to one month's rent and does not include the Commission's previous conclusion that this would be harmful to affordable housing, not helpful. There was confusion about whether this is the most recent version of the outline and about which policy issues Charter and Ordinance is still considering. It was decided that E. Dormady will invite Chuck and Dan Hoffman to our meeting next month to respond to questions about the proposed ordinance. M. Finkelstein presented a revised proposal for reconstitution of the Commission, dated 7/20/92. A motion was made by Mark to send the 7/20/92 proposal on to Common Council, seconded by T. Pasco. Briefly, the proposal resolves to "advise and recommend to Common Council that it reconstitute the membership of the RHC to provide fair, balanced and guaranteed representation on the RHC of tenants, landlords and other interested parties; and that various members of the RHC may present to Common Council for their consideration specific proposals to accomplish (this goal)." (See proposal for complete details.) The 7/20/92 proposal was discussed by all members of the Commission. The motion was carried by a vote of five in favor and four opposed. Immediately following the passage of the reconstitution proposal, E. Dormady announced his resignation as Chair and from the Commission. Commission members encouraged him to reconsider and by the end of the meeting, Ed said he would probably stay. J. Efroymson reported from the Policy Working Group regarding the Rental Housing Officer, making a motion that the Commission ask the Mayor to establish a position within City government to "provide information to tenants and landlords as to rights and responsibilities, and availability of recourse in case of disputes." Motion seconded by G. Frantz and, following discussion, carried by a vote of six in favor, two opposed, and one abstention. M. Finkelstein reported from the Supply Side Working Group. Acting on an amendment from the State Assembly dated 3/3/92, Mark has presented a proposal for Incentive Zoning, dated 7/13/92. Very briefly, the proposal suggests one idea for accomplishing incentive zoning by allowing developers who would include affordable housing in their project to "step up" the zoning where the project is located, to the next denser zoning level (see proposal for complete details). The Supply Side will be considering Mark's proposal further. G. Frantz will collect information regarding the implementation of incentive zoning. J. Efroymson reported that the Human Services Council is also considering a plan for incentive zoning with regards to the provision of day care, and which would include permanent incentives rather than those that revert back at a later date. Mark will check with the HSC regarding their plan. No report from the Information Working Group. The NEXT COMMISSION MEETING will be held on Wednesday, August 26 at 5:00PM; minutes to be taken by T. Pasco. Respectfully submitted by: Carol Mattison 0 (e'C City of Ithaca Rental Housing Commission Minutes of meeting of August 26, 1992 In attendance: Joan Bailey, Pierre Clavel, Ed Dormady (Chair) , John Efroymson, Mark Finkelstein, George Frantz, Terry Pasco, Pam Zinder. Minutes of the June and July meetings were approved as amended. In response to an inquiry from Mark F. , John E. confirmed that at the time that she moved out of the city in May 1991 Carol Mallison had notified him as RHC Chair of that fact and asked whether she could remain as a member, that John hAd_ Jehia=had spoken with City Attorney Chuck Guttman about RHC members status on the Commission and though he could not recall in what detail, at the next month's meeting John had informed the RHC that all sitting members could stay on as Commissioners. Ed D. quoted from various city laws indicating that because of her move out of the city Carol Mallison was not entitled to remain on the RHC. By unanimous vote on motion by Mark F. , the RHC commended Carol M. for her outstanding service as member of RHC. Two members of public described problems they had with security deposits involving overcharging for damage. It was also stated that possible discrimination was suspected in the treatment of one of the tenants. Various RHC members made suggestions as to addressing the problems, including dispute resolution, Small Claims Court, and the Human Rights Commission regarding the possible discrimination. Upon a report from Pam Z. and Joan B. , it was agreed that more copies of the Landlord Tenant Guide should be prepared. Mark F. made a presentation regarding his Step Up to Affordable Housing incentive zoning proposal, and it was • • et 1 w 2 ,,f. ( solved that the Planning & Development Committee should be ,,,. asked to put the question of incentive zoning on its next "* agenda. ' Joan and Pierre voted against the resolution because it did nottcontain language to the effect that any housing "' created `pursuant to an incentive zoning program should be A ° made permanently affordable . yl Mark F. , prefacing his remarks by stating that he had 1.-:', ,^ absolute confidence in her complete integrity, raised the ', t.. question of whether the hiring of Joan B. by the Mayor in ,e'-1 June to perform research on the creation of a rental housing ,6 � . officer position at a time when such matter was before the RHC could raise a possible question under the city's code of {4} .. ethics . It was agreed without dissent that Ed D. would ask the Mayor to prepare a written response explaining the /-- ° situation. �t..- Next meeting September 30th. Submitted by Terry Pasco *` September 29, 1992 4Ye q E '' A q� b� .f 4.,ar1 x- ,:.-:w 's-w`:, RESOLUTION ON RECONSTITUTION ADOPTED BY THE CITY OF ITHACA RENTAL HOUSING COMMISSION JULY 22, 1992 WHEREAS the responsibilities of the Rental Housing Commission (RHC) as set forth in the city ordinance pursuant to which it was created ("the RHC ordinance") include: "1 . advising Common Council on steps to be taken to improve the accessibility, affordability and quality of rental housing; and 2 . advising Common Council on steps to be taken to achieve the goals of the City of Ithaca housing policy; " and WHEREAS the RHC ordinance provides that of the nine members of the RHC a minimum of four shall be tenants, but that no minimum number of landlords is required, so that it would be possible to have an RHC with no landlord representation; and WHEREAS it is the opinion of the RHC that the accessibility, affordability and quality of rental housing in Ithaca could be better promoted and the goals of the City of Ithaca housing policy better achieved by an RHC with a more balanced membership; NOW, THEREFORE the RHC resolves : 1 . that it does hereby advise and recommend to Common Council that it reconstitute the membership of the RHC to provide fair, balanced and guaranteed representation on the RHC of tenants, landlords, and other interested parties; and 2 . that the various members of the RHC may present to Common Council for their consideration specific proposals to accomplish the goals set forth in the preceding paragraph. RECEIVED AUG 6 161,92 To: Mayor Ben Nichols and Common Council _ .4 From: Rental Commissioners Ed Dormady, Chair John Efroymson, Council Liaison Joan Bailey, 5th Ward Pierre Clavel, 3rd Ward Subj . : Rental Housing Commission Reconstitution Date: August 5, 1992 In recognition of the problems within the Rental Housing Commission (RHC) , which culminated in the 5-4 vote to reconstitute the Commission, we request that Council rewrite the RHC charge. The current charge to the Commission has allowed differences in interpretation to undermine the focus on renters' issues. The majority of city residents are tenants and as such, do not receive attention from and representation in government that is commensurate with their number and their needs. The current charge to the RHC does not adequately reflect the sentiment of the 1989 Rental Housing Task Force (RHTF) report. The RHTF' s report clearly recommends that the RHC investigate a variety of tenant issues for the city government. The report recommends that a majority of RHC members be tenants. The July 1992, reconstitution resolution seeks to diminish this number even further than the current four out of nine. The RHTF report recommended further examination of a housing trust fund, a community rental registry and other initiatives to promote affordable housing for Ithaca' s tenants. The RHTF report looked to the Rental Housing Commission as a vehicle for identification of and action on such tenant issues. The current RHC composition has led to a political gridlock. There is no basic agreement within the Commission on what problems and issues face the renting population of Ithaca. The five month long, fractious debate over security deposit legislation in the face of overwhelming evidence that deposits are abused is one example of the absence of consensus on tenant problems. Despite these difficulties the RHC has been able to make positive contributions to the community by publishing a landlord/tenant resource guide, organizing a renter's speak-out, helping with referrals and advice for individual tenants and proposing a security deposit ordinance. But there are many more concerns that a Commission could and should address. We therefore urge the Council to dissolve the RHC, to write a more clearly defined charge, to reconsider the membership criteria and to appoint members who accept the mandate determined by Council and who will work vigorously in carrying out their responsibilities. August 13, 1992 The Honorable Benjamin Nichols Mayor of the City of Ithaca The Common Council of the City of Ithaca 108 East Green Street Ithaca, NY 14850 Re: Resolution on reconstitution of the Rental Housing Commission Dear Mayor Nichols and Common Council Members: We, a majority of the membership of the Rental Housing Commission ("RHC"), address ourselves to you to set the record straight and to express our views regarding recent events. We are the RHC members who supported the Resolution on Reconstitution which was duly adopted at our meeting of July 22, 1992 ("the Resolution"). Our views are as follows: 1. At the July 22 meeting of the RHC, a resolution introduced by Commissioner Mark Finkelstein calling for the reconstitution of the RHC was discussed, voted on and adopted by a 5-4 vote. Immediately prior to the vote, Chair Dormady stated that if the resolution were adopted he would resign from the RHC. When the resolution passed, he did indeed announce his resignation effective immediately. But at the urging of a number of RHC members, including signers of this letter, he withdrew his resignation during the course of the meeting. At the end of the meeting, Chair Dormady indicated that he would duly transmit the Resolution to Common Council. 2. At the Common Council meeting of August 5, Chair Dormady failed to provide Common Council with the Resolution. Making only passing 2 reference to the Resolution, he instead circulated to Common Council a personal statement from four members of the RHC, dated August 5, 1992. That statement had never been introduced, discussed or voted on by the RHC. It goes without saying that it is a minority opinion which does not represent a recommendation to Common Council from the RHC. In light of Ed Dormady's failure to provide Common Council with the Resolution as adopted by the RHC, we take this opportunity to do so by attaching it to this memorandum. 3. In response to Ed Dormady's statement, Mayor Nichols and certain members of Common Council indicated that "both items" would be placed onto the agenda of the appropriate committee of Common Council for consideration. It should be understood by Common Council that only one resolution, that which is attached hereto, has been adopted by the RHC. 4. The purpose of the Resolution was to suggest to Common Council that reconstituting the RHC with a fairer and more balanced membership would help it more effectively achieve its goals of promoting the affordability, accessibility and quality of rental housing in the city. The Dormady memo asserts that the Resolution "seeks to diminish" the number of tenants on the RHC. Reference to the Resolution will reveal that no such proposal is made. Moreover, Dormady's statement calls for the RHC's charge to be rewritten. It asserts that "differences in interpretation" as to the RHC's charge "undermine" the RHC's work. In fact, we are aware of no differences in interpretation as to the clear language of the current RHC charge. What has occurred is the normal give and take and differences in views as to the best way to fulfill that charge. But rather than working within the context of the RHC, the Dormady memo proposes the wholesale dissolution of the RHC and the appointment of new members. We trust that you will reject this suggestion, as it is wholly inconsistent with your oft-stated goal of having a broad cross section of people and views represented on city commissions and committees. 3 We would like to close by reiterating our commitment to carrying out the clearly defined charge to the RHC as adopted by Common Council on May 2, 1990. We call on Mayor Nichols, Common Council and all members of the RHC to work together toward those goals in a mutually respectful atmosphere. Yours truly, • Carol Mallison, Vice Chair Mark Finkelstein George Frantz Terry Pasco Pam Zinder Attachment: Rental Housing Commission Resolution on Reconstitution, adopted July 22, 1992 cc: All Rental Housing Commission members RENTAL HOUSING COMMISSION 9/30/92 PRESENT: Joan Bailey, Pierre Clavel, Ed Dormandy, John Efroymson, Mark Finkelstein, George Franz, Terry Pasco, Pam Zinder PUBLIC: Myra Malkin Agenda: Mark's proposal regarding the Commission members living outside of the City was added to the agenda. Other additions included George's report on the rental housing inventory. John added future plans for the Commission. August 26 Minutes: Changes were as follows: John requested that the first paragraph of the minutes be changed to say as follows: . . . that John had spoken with City Attorney Chuck Guttman about RHC members status on the Commission and though he could not recall in what detail, at the next month's meeting John had informed the RHC that all sitting members could stay on as Commissioners. After this change the minutes were approved. Communications: Included landlady feeling like she was taken advantage by tenants (they were not paying their rent) , prospective builder inquired about rent control, parent concerned about landlord (wanted a class action suit) . No public comment. Old Business: Discussed code of ethics regarding Commissioners being hired by the Mayor this summer to do research. According to Chuck Guttman, the code and ethics does apply but does not violate intent. Ed will get this clarified since the Mayor might have spoken to Pat Kennedy about this issue. He will report back to the Commission at next meeting. Rent Inventory: George has taken upon himself to do an inventory of rental units in Ithaca to develop ownership patterns, types and sizes. He has so far dedicated about 5 hours of work and has looked at 15% of the taxroll. Out of 380 properties, there are 360 landlords. Mark's Resolution: After some discussion and changes Mark's resolution regarding Commissioner's who represented the non-profit housing slot could live outside the city as long as their principal business was inside the city. This was approved, 7 for and 1 abstention (Pierre) . Security Deposit Ordinance: It was scheduled to be voted on by Common Council at the October 7 meeting. Per Chuck Guttman, it would go into effect for any leases signed or renewed after November 1, 1992 . Incentive Zoning: Ed spoke to John Schroeder at the last P & D meeting. Incentive zoning will be taken under advisement under the work program next year. Reconstitution: Ed felt there was not much else to be discussed on this issue. Mark spoke about statements that have been submitted to Common Council by Commissioner members but not shared with the whole RHC. Members should share info, it is a breach of common courtesy. Working Groups: Information group reported. Discussed how more copies of the Resource Guide would be reproduced. Terry suggested that groups be contacted regarding volunteers. The Youth Employment Service was recommended. The Commission moved that Pam and Joan have full backing of the RHC to duplicate the Guide in any way possible. Passed all in favor. Supply side group. Will continue working on George's proposal. By the next meeting, all working groups are required to meet. At next meeting, Terry will discuss the garbage tax. Meeting Adjourned at 7 p.m. Next meeting: October 28, 1992 at 5 p.m. ',, RENTAL HOUSING COMMISSION i; 9/30/92 . 4r PRESENT: Joan Bailey, Pi rre Clavel, Ed Dormay(dy, John Efroymson, Mark ; Finkelstein, George Fra Z�' g r'�' , Terry Pasco, Pam ender 'i PUBLIC: Myra Malkin a Agenda: Mark's proposal regarding the Commission members living outside of the City was added to the agenda. Other additions included George's report on the rental housing inventory. John added future plans for the n* Commission. lz I August 26 Minutes: Changes were as follows: John requested that the I first paragraph of the minutes be changed to say as follows: . . . that John had spoken with City Attorney Chuck Guttman about RHC members status on the Commission and though he could not recall in what detail, at the next month's meeting John had informed the RHC that all sitting members could stay on as Commissioners. After this change the minutes were approved. Communications: Included landlady feeling like she was taken advantage x by tenants (they were not paying their rent) , prospective builder inquired about rent control, parent concerned about landlord (wanted a class action suit) . 0 No public comment. 1 Old Business: Discussed code of ethics regarding Commissioners being hired by the Mayor this summer to do research. According to Chuck Guttman, the code and ethics does apply but does not violate intent. Ed will get this clarified since the Mayor might have spoken to Pat Kennedy about this issue. He will report back to the Commission at next meeting. Rent Inventory: George has taken upon himself to do an inventory of rental units in Ithaca to develop ownership patterns, types and sizes. He has so far dedicated about 5 hours of work and has looked at 15% of the taxroll. Out of 380 properties, there are 360 landlords. Mark's Resolution: After some discussion and changes Mark's resolution regarding Commissioner's who represented the non-profit housing slot could live outside the city as long as their principal business was inside the city.A This was approved, 7 for and 1 abstention (Pierre) . Security Deposit Ordinance: It was scheduled to be voted on by Common Council at the October 7 meeting. Per Chuck Guttman, it would go into effect for any leases signed or renewed after November 1, 1992. Incentive Zoning: John Schroeder aiWymIstriSgrrpmrieekediff".Incentive zoning will be taken under advisement under the work program next year. Reconstitution: Ed felt there was not much else to be discussed on this issue. Mark spoke about statements that have been submitted to Common Council by Commissioner members but not shared with the whole RHC. Members should share info, it is a breach of common courtesy. Working Groups: Information group reported. Discussed how more copies of the Resource Guide would be reproduced. Terry suggested that groups be contacted regarding volunteers. The Youth Employment Service was recommended. The Commission moved that Pam and Joan have full backing of the RHC to duplicate the Guide in any way possible. Passed all in favor. Supply side group. Will continue working on George's proposal. By the next meeting, all working groups are required to meet. At next meeting, Terry will discuss the garbage tax. Meeting Adjourned at 7 p.m. Next meeting: October 28, 1992 at 5 p.m. f Minutes - Ithaca Rental Housing Commission - 10/27/92 Present: Joan Bailey, Pierre Clavel, Ed Dormady, John Efroymson, Mark Finkelstein, Pam Zinder Public: Myra Malkin, Scott Raynor September minutes - were read and approved with the following corrections: "after some discussion of Mark's resolution, the IRHC unanimously amended the resolution to strike out any reference to Carol Mallison. " a landlord issue was brought up by Ed not John, some of John's communications had not been included in minutes. Communications- John brought up a problem with tenant questioning the legality of the landlord asking a set fee for cleaning charges. Another tenant had only $78 returned from a $300 security deposit from Certified Properties. Other problems -a tenant had been waiting since May 30 for the return of the security deposit. Another tenant who had requested interest payment on security deposit had said security deposit raised by amount of interest. John also had a lengthy letter regarding an unreturned deposit. Also Trish Norton from the Planning Department had sent a letter regarding proposals for IURA projects. This may be an item for the supply side committee to work on. Mark raised issue of Carol Mallison's performance on IRHC as a result of a communication sent to an unidentified friend of Carol's from Mayor Nichols. Mark asked that our previous resolution commending Carol on her work be forwarded to Mayor Nichols. Ed said he had received a complaint about a lack of heat and also a security deposit problem. There was some discussion about city's code regarding heat, John volunteered to check on accurate ordinance. Pam stated that new security deposit law would only affect leases signed or renewed after Nov 1, 1992 . There was also some discussion of triple damages. Mark believed that an attorney for a plaintiff would likely specify them, but that in any case the judge could independently award damages. Pam also had a question about travel costs for a plaintiff, but the law does not appear to apply to those costs. Public Comment Scott Raynor commended efforts by IRHC in coming up with improved final proposal for security deposit. He attributed the improvements to a balanced commission and urged the IRHC to continue to work as a group with mixed participation and to put aside any partisan feelings. John responded that C+O had also had positive input into the ordinance, Mark however, felt that continued work by IRHC had improved the measure. Pierre also made some comments about group process and whether or not two separate groups might be worth considering. He also mentioned that there are undoubtedly landlord problems out there that are not being addressed by IRHC. There was some additional discussion on the commission and on reconstitution. John stated that P+D would have it on the Nov 16th agenda and that some type of proposal would likely be before Council at the December meeting. Old Business Guidebook - Pam and Joan reported on updating work. The Public library has requested three copies since the guide is used extensively there. The materials for a new book would cost approximately $3 . 40 and IRHC should be able to get help from RSVP volunteers to assemble the books. Pierre noted that the book should include the new security deposit language. Work still needs to be done on an abbreviated version of the guide. Ethics - Ed described the correspondence he had received from City Attorney Chuck Guttman, which was sent to Joan and Mark as well. In the letter, Chuck had stated that he believed that the municipal code that Mark had raised before the IRHC applied to administrative, not advisory bodies. Mark read a letter he had sent in reply to Chuck, and re-iterated his belief that at some point that the City should address ethics code more clearly. Joan pointed out that she believed that the matter Mark kept referring to (Joan's paid internship for the Rental Housing Officer job description) was not really a matter that was before the IRHC, since Mayor Nichols had decided in March to go ahead with setting up this position and that roughly half of Common Council knew she was performing this work. Zoning - John stated that in 1993 Planning and Development would be working on zoning. New Business Trash Tags - Terry suggested that we have Barbara Eckstrom or one of her staff people from the County's Solid Waste Division meet with members of IRHC to discuss impact that increasing costs have upon landlord/tenant problems. John felt that an ad hoc working group meeting would be beneficial. Correspondence - John brought up issue of Mark's fax to press, which completely misrepresented vote to have the not-for-profit housing representative to IRHC not be subject to residency requirement. At the Sept meeting, John had asked that the issue be de-politicized and that any references to any individual be removed. John felt that Mark had clearly violated this intent by specifically linking Carol Mallison's name to the proposal in communication to the press and to Common Council. John had sent a letter to Mark, requesting copies of IRHC communications to the press. Mark's response, (which was also sent in a letter to the IRHC) was that his actions were constitutionally protected. A fairly heated discussion followed with John and Joan both adamantly maintaining that Mark's actions were clearly counter to the intent of the IRHC and that such actions bode ill for any future work or proposals by Mark to the IRHC. Pierre also voiced his objections, calling Mark's actions disruptive. Supply side working group - Terry said there was not anything new. Policy working group - John asked if it would be a good idea to have a central complaint file for landlords and tenants. A discussion followed with some concerns being raised about abuse of such a data base and also how to maintain it and handle queries. The next two meetings were set for Wed, Nov 18th and Wed, Dec 16. Minutes recorded and submitted by Joan Bailey