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REGULAR MEETING May 9, 2016 work with businesses and landlords. We are not about the business of fining as many landlords as possible, we want to build a positive relationship with landlords and keep the communication open. Councilmember Tim Scott stated at 2:55 p.m. today, Glenda Rae Hernandez sent an email stating their support which was passed onto the Council. These are businesses within the City that are used for - profit and the fines listed in this bill are five- hundred ($500) or less. According to the U.S. Census, the average rental unit in South Bend is about seven - hundred and twenty -five ($725) dollars a month. The fines are pretty much less than one month's rent in most cases. This is a simple registration, they provide their name, address, phone number, email and five ($5) dollars total for as many properties as they own. Councilmember Karen White expressed her support for the bill. The challenge we have is to identify the landlords that are not responsive and this bill will serve as a tool to fix that problem. Good landlords will not be penalized, at the end of the first year she would not only like to review the status of the program but to also publicly celebrate those outstanding landlords we have. The substitute version of this bill has really responded to the feedback on the penalties and many changes have been made to make sure those penalties are reasonable. It is important for the public to know that we are listening and we are making appropriate changes. Councilmember White did state her reading of the email from the Human Rights Commission is that they do not have an official position and would not be able to vote until May 18th 2016. Councilmember Oliver Davis asked Councilmember Tim Scott to read the entire email Glenda Rae Hernandez sent. Councilmember Tim Scott read the email from May 91h at 2:55 p.m.: Not directly. I know she has made comments about it but it has never become an item of discussion nor has she asked to have it put on the agenda. She is a past Chairperson but her opinion is strictly that - -her opinion. Fred is a staff person but not a spokesperson for the Commission. Again he has never asked the Commission for our consideration. I have a call in to Lonnie to discuss this with him further. I also plan to contact the Tribune about their story saying we are in favor of it. Councilmember Tim Scott also responded that Lonnie Douglas has spoken to the media publicly about supporting the bill and Fred Harris has been active in crafting the bill. Councilmembers were given an opportunity to ask questions. Chairperson Gavin Ferlic also announced if a person is a landlord of a property within the City limits by the state definition it is appropriate to make that disclosure. Councilmember Regina Williams- Preston disclosed she does own one property which is rented. Councilmember Williams- Preston asked if this bill would cover people who own properties and let their family live there and only pay the utilities because many of those people do not consider themselves as landlords. She also asked about those people who rent out their houses for Notre Dame games only. Councilmember Tim Scott responded that as far as rental property goes, its between the owner and tenant on what the amount of rent owed is. If it's a rental property by state code then you would have to register. Council Attorney Kathleen Cekanski- Farrand read the state law definition of landlord. "The owner, lessor or sub - lessor of a rental unit where the property of which the unit is a part or a person authorized to exercise any aspect of the management of the premises including the person who is directly or indirectly a) acts as a rental agent or b) receives rent or any part of the rent other than as a modified purchaser. Councilmember Tim Scott also responded that this bill does not address game day renters. According to the IRS, if it is ten (10) percent or less of the year it is not considered a rental unit. If a single family home is rented out for one day, the owner still lives there and that person can be tracked down if you have an issue. Council Attorney Cekanski-Farrand reported that she did send to the Council and the City Clerk the IRS definition of a renter. 7