Loading...
HomeMy WebLinkAboutSubstitute Bill 03-19 New Article 14 to Chapter 6 of the South Bend Municipal Code: Rental Safety Verification Program /SpUTH 441111 1300 COUNTY-CITY BUILDING ',d �: PHONE 574/235-9486 227 W JEFFERSON BOULEVARD i W b, FAX 574/235-7703 SOUTH BEND,INDIANA 4660I-1830 `�� - : x moi+"a ]865 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR DEPARTMENT OF CODE ENFORCEMENT Filed in Clerk's Office FEB[ ±o21 019 South Bend Common Council KAREEMAH BOWLER County-City Building 227 W. Jefferson Blvd CITY CLERK,SOUTH SEND,IN South Bend, IN 46601 RE: Bill No. 03-19 New Article 14 to Chapter 6 of the South Bend Municipal Code: Rental Safety Verification Program Dear South Bend Common Council Members: On January 9,2019,the Department,pursuant to IC 36-1-20-4.1, filed the proposed ordinance Rental Safety Verification Program or"RSVP"which would add a new Article 14 to Chapter 6 (Building). Since the filing,the Department participated in a public meeting held by the Health and Public Safety Committee(2/6/19)and has continued to meet with and receive feedback from various stakeholders. In response to stakeholder feedback,the following changes are reflected in this amended ordinance: 1) Sec. 6-79(a)removed reference to other codes and unsafe building law to correctly reflect the IPMC is the property standard 2) Sec. 6-79(e)deleted 3) Sec. 6-80(c)changed for consistency with 6-79(a)above 4) Sec. 6-80 (r)changed defined word from"Inspection Warrant"to"Rental Safety Verification Program Warrant"or"RSVP Warrant"(see Sec. 6-80 (dd)). 5) Sec. 6-80 (hh)added term"short term rental"and its definition 6) Sec. 6-80 (ii) added term"short term rental platform"and its definition 7) Sec. 6-80 (11)removed term"transient occupancy"and its definition 8) Sec. 6-81 (c)(3)replaced"transient occupancy"with"short term rental(s)" 9) Sec. 6-81(d) added 3-year exclusion for real estate sales transaction inspections 10) Sec. 6-82 (c) chart—removed"business"after sixty(60); removed language referring to enforcement law for consistency of language in ordinance; and revised language regarding lead safe practices for chipping and peeling paint 11) Sec. 6-82 (d)changed ten(10)to five(5),and eleven(11)to six(6) 12) Sec. 6-82 (i)changed and added language to match intent for enforcement as allowed by law and added language recognizing due process or appeal rights as afforded thereunder 13) Sec. 6-82(m)revised, added and removed language on the inspection process sequence for consistency with the intent of the process and when to seek inspection warrant 14) Sec. 6-82(q)(2)(d)removed"licensed by the Indiana Real Estate Commission". if, 15) Sec. 6-83(a)(7)changed"nuisance"to"problem property" 16) Sec. 6-84 changed"and the owner shall place it"to"which should be placed". 17) Sec. 6-85 removed language regarding a fee, and added part(b)to include a penalty for failure to submit the transfer information to the Department 18) Sec. 6-86 (d)removed"vacate and seal"and other language for consistency with the intent of how to give notice and why to issue penalties 19) Sec. 6-86 (e) added language that penalties and fees enforced through OVB with all due process or appeal rights as afforded thereunder 20) Sec. 6-86(g)corrected the reference to the Indiana Code 21) Sec. 6-86 (h)removed language about time specified in the bill because it will be handled by OVB 22) Sec. 6-87 changed reference to Code Enforcement to Department for consistency of use as defined The RSVP ordinance has been revised accordingly and enclosed is the amended Bill No. 03-19 for the Council's consideration. In addition to ordinance revisions,the Department also proposes the following policy implementation changes in response to community and Council feedback: Phase In: • The deletion of Sec. 6-79(e)allows for the Department to implement priority-based inspections, starting with properties of known need. hi response to industry and community input, addressing concerns in properties that have already been identified as potential health and safety risks for occupants will be the focus of the first year of the program. We propose that during 2019,RSVP will apply to eligible properties with active housing Code cases and referrals from the St.Joseph County Health Department (and other health and safety agencies).We will always accommodate landlord requests for inspection and continue to follow up on complaints made by occupants.The Code Department staff will prioritize the landlord requests for inspection of vacant units. • Starting in 2020,we will begin a geographic phase-in based on areas with the highest known levels of childhood lead poisoning, as established by the St.Joseph County Health Department. Childhood lead poisoning is a known crisis in our community, and rental inspection will help identify and enforce the existing safety standards for lead paint.The Health Department is responsible for the medical case management of children with elevated blood lead levels. RSVP will allow the Health Department to work directly with City Code to ensure children are living in lead-safe homes by partnering medical interventions with code enforcement to ensure South Bend families live in safe and healthy homes. We are confident in our ability to administer this program and have taken steps to ensure success.While there are an estimated 16,000 rental units in South Bend,the conservative estimate as to the number of inspections is closer to 7,500(this accounts for properties that are not eligible for the program based on exclusions such as government-inspected housing,units constructed in past 10 years, or units receiving satisfactory real estate sales inspections within the last three years).The number of units to be inspected also reflects the fact that the program provides for random sampling of multi-unit properties,creating efficiencies for property owners and decreasing the number of inspections required. Using current staffing levels,we can accomplish the 700-800 inspections prioritized in 2019, and 1,200 inspections per year thereafter.By this rate,we expect to complete this first pass by mid-2025,which is a typical timeline for most programs of this nature.The priorities identified at our phase-in(landlord requests,Health Dept. referrals, and active cases)will continue to be priorities of the Department as we work our way through the City. This implementation plan strikes a balance between the capacity of the Department,the need to address priority properties, and allowing plenty of time for any repairs to be made before inspection notice is sent to property owners. As stated in the initial filing letter,the Department stands ready to begin the program upon passage and we are prepared to share additional details on our implementation and monitoring plans. I will present this revised ordinance to the Council at its Committee meeting and at its regular meeting for second and third reading, and I will be accompanied by my support staff on this ordinance who will address any questions that may arise. Sinc- - , 4 / ' . - kibins Director,Code Enforcement RUTH .,nu11Nv 1300 COUNTY-CITY BUILDING v f� _____!�0' PHONE 574/235-9486 227W JEFFERSON BOUI.F.YARD W �� -q! D FAX 574/2.35-7703 SOUTH BEND,INDIANA 660i-19 0 \' '. 4 3 \�', .. Y _ •A „ 1885_-:-" CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR DEPARTMENT OF CODE ENFORCEMENT South Bend Common Council County-City Building 227 W.Jefferson Blvd South Bend, IN 46601 RE:New Article 14 to Chapter 6 of the South Bend Municipal Code:Rental Safety Verification Program Dear Council Members: To promote the well-being of our community,preserve existing rental housing stock,and ensure rental housing remains a safe and desirable housing option for residents,the Department,pursuant to IC 36-1-20-4.1,has enclosed a proposed ordinance which would add a new Article 14 to Chapter 6(Building): Rental Safety Verification Program or"RSVP."RSVP is intended to protect public health, safety, and welfare in rental units by verifying minimum property standards for occupancy. The most effective way to seek compliance with minimum property standards is through routine, periodic inspections of rental housing properties. An estimated 16,000 units of rental housing exist within South Bend City limits. Substandard housing conditions have been shown to be responsible for a range of significant and costly health problems,including asthma,child lead poisoning,and increased rates of injury and mortality. Information from our community partners,Code Enforcement,and Census data suggest the presence of home hazards in the City that compromise safety and habitability. Proactive rental inspection is a benefit to tenants and landlords.The RSVP program will help landlords identify problems early before they become costly repairs.The program also provides an extra tool to distinguish higher-quality properties in the housing market.The City will continue to investigate complaints from occupants.The RSVP program supplements current Code services for renters by reducing barriers to Code assistance by scheduling periodic inspections that address health and safety concerns directly with property owners.Proactive rental inspection programs can safeguard against properties becoming blighted, thereby preserving neighborhoods.Establishing the RSVP program will help to ensure that all persons who live in rental housing units are provided decent,safe and sanitary housing. The RSVP program intends to inspect 20%of rental housing within the first three years of implementation.The program will follow a geographic phase-in process prioritizing Census tracts that show evaluated concern for public health and safety. The Department is ready to begin the program upon passage and we are prepared to share our implementation and monitoring plans. I will present this ordinance to the Council at its Committee meeting and at its regular meeting for second and third reading, and I will be accompanied by Assistant City Attorney Thomas Panowicz who will address any legal issues that may arise. This ordinance is sponsored by Council Members President Tim Scott,Vice President Karen White,Jo M. Broden,and Regina Williams-Preston. Since � L 1 Filed in Clerk's Office Tracy Skibins Director,Code Enforcement JAN 0 9 2019 KAREE1\v1AH FOWLER CITY CLERK,SOUTH BEND,IN Filed in Clerk's Office SUBSTITUTE BILL NO. 03-19 FEB 2 0 2019 ORDINANCE NO. KAREEMAH FOWLER CITY CLERK,SOUTH BEND,IN AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY I I i • : , INDIANA,AMENDING CHAPTER SIX OF THE SOUTH BEND MUNICIPAL CODE BY ADDING A NEW ARTICLE 14 TITLED RENTAL SAFETY VERIFICATION PROGRAM STATEMENT OF PURPOSE AND INTENT The rental safety verification program is established to protect the public health, safety, and welfare in rental units by encouraging quality rental housing stock in the City of South Bend through inspections to verify minimum property standards for occupancy. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. Chapter 6 of the South Bend Municipal Code shall be and hereby is amended to include a new Article 14 that shall read in its entirety as follows: ARTICLE 14. Rental Safety Verification Program Sec. 6-79. General Concept and Purpose of Rental Inspections. (a) The Rental Safety Verification Program requires an occupancy inspection of all real property or rental units that are intended to be occupied or are occupied by anyone other than the owner. This program is designed to ensure all City of South Bend rental units meet the minimum property standards of the International Property Maintenance Code, which are incorporated into this Article 14 without formal citation. (b) Once the rental unit has been inspected with an Inspection Report and approved for occupancy, an Inspection Certificate shall be issued by the Department authorizing the rental unit to be occupied. (c) The purpose of the Inspection Report and Inspection Certificate issued to the owner or the property manager (if applicable) is to verify that the rental unit is safe and habitable for occupancy with respect to: electrical systems, plumbing systems, water and sanitary system, including hot water, heating and ventilation systems, bathroom, toilet facilities, doors, windows, stairways, hallways, functioning smoke detectors, lead hazards, indoor air quality, and the overall structure in which a rental unit is established. (d) This Article shall be liberally construed and applied to promote its purpose and intent. Sec. 6-80. Definitions. 1 (a) Bedroom means any room or space used or intended to be used for sleeping purposes in either a dwelling or sleeping unit. (b) City means the City of South Bend, Indiana. (c) Code means the property standards pursuant to the International Property Maintenance Code. (d) Code Inspector means an employee of the Department who is charged with the administration and enforcement of this Article. (e) Condemn means to adjudge unfit for occupancy. (f) Condemned with conditions means that as to a unit unfit for occupancy,the owner, or agent of owner, may enter the property from 7:00 AM to 7:00 PM to make all the required repairs. (g) Contract of Sale means land contract sales or purchases. (h) Department means the City of South Bend Department of Code Enforcement. (i) Dwelling unit means a single unit providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking and sanitation. Examples include but are not limited to apartments, single family homes and multi- family homes. (j) Egress means a place or means of going out or exiting. (k) Director means the Director of the Department of Code Enforcement for the City or that person's designee, or in the Director's absence the Deputy Director. (1) Group home means a community home where a small number of unrelated people in need of specialized care, support, or supervision can live together with support and services by trained caregivers. (m) Habitable space means the space in a structure for living, sleeping, eating or cooking. Bathrooms, toilet rooms, closets, halls, storage or utility spaces, attics and basements and similar areas are not considered habitable spaces. Finished basements are not considered habitable spaces unless proper egress requirements are met. (n) Indiana Unsafe Building Law means Indiana Code, Title 36, Article 7, Chapter 9, as it may be amended. (o) Inspection Certificate means a certificate issued by the Department, after all fees and penalties due under this Article are paid, that documents that the rental unit has passed the Inspection Report and authorizes the occupancy of the rental unit as compliant with the provisions of this Article. (p) Inspection Cycle means the period between the issuance and expiration of an Inspection Certificate as may be determined under the provisions of this Article. (q) Inspection Report means a report that an Code Inspector prepares after conducting a visual examination of a rental unit, including all its major systems, to verify existence of, and list repairs or improvements necessary to meet minimum property standards for occupancy as referenced in Sec. 6-79. (r) International Property Maintenance Code(IPMC)is a model code that regulates the minimum maintenance requirements for existing buildings. The IPMC is a maintenance document intended to establish minimum maintenance standards, such as for basic equipment, light, ventilation, heating, sanitation and fire safety. (s) Occupancy means the purpose for which a building or portion thereof is utilized or occupied. (t) Occupant means any individual living or sleeping or having possession of a space within a rental unit. (u) Off-Cycle Inspection means an Inspection Report conducted based upon a reasonable belief of noncompliance or a complaint. 2 (v) Operator means any person who has charge, care or control of a structure or rental unit which is let or offered for occupancy. (w) Owner means any person, operator or agent thereof having legal or equitable interest in the property;or recorded in the official records of the state, county or municipality as holding title to the property; or otherwise having control over decisions on the use and condition of the property, including the guardian of the estate of any such person, and the executor or administrator of the estate of such person. (x) Owner of Record means any person who holds any fee interest, life estate interest, or equitable interest of a contract purchaser and whose identity can be determined from an instrument recorded in the recorder's office of the county where the rental unit is located; or, written information or actual knowledge received by the Department; or a review of Department records that is sufficient to identify information that is reasonably ascertainable. (y) Person means an individual, corporation,partnership or association, or any other group acting as a unit, and includes a government, governmental subdivision or agency, business trust, estate, trust, two or more people having a joint or common interest, and any other legal or commercial entity. (z) Premises means a lot, plot or parcel of land, easement or public way, including any structures thereon. (aa) Private Inspector means, for purposes of IC 36-1-20-4.1(c)(2)(B)(iii), an inspector of rental units who satisfies the following qualifications prescribed by the City: must be a State of Indiana Licensed Home Inspector. (bb) Private Inspection means an inspection conducted for the purposes of meeting the exemption requirements under IC 36-1-20-4.1(c). (cc) Re-Inspection means a follow up inspection or assessment of a rental unit to check for completion of repairs or compliance pursuant to an Inspection Report. (dd) Rental Safety Verification Program Warrant (RSVP Warrant) means the court authorization to enter a rental unit and complete an Inspection Report that the Director may obtain if the owner or those in possession of a rental unit refuse entry. (ee) Rental unit means as used in this Article one(1) or more dwelling units in a structure intended to be occupied or is occupied as a home, residence or habitable space by anyone other than the owner and may include a tenancy agreement or lease. (ff) Rental unit community means one (1) or more parcels of contiguous real property upon which are located in one (1) or more structures containing rental units, if the combined total of all rental units in all of the structures is five (5) or more rental units and the rental units are not occupied solely by the owner or owner's family. (gg) Revocation of Inspection Certificate means the Department canceling an issued Inspection Certificate whenever it discovers that such certificate was issued in error or based on incorrect information,or discovers other causes demonstrating a lack of compliance with the provisions of this Article. (hh) Short term rental means the rental of a single-family home, a dwelling unit in a single-family home, a dwelling unit in a two-family or multifamily dwelling, or a dwelling unit in a condominium, cooperative, or time share for terms of less than thirty (30) days at a time through a short term rental platform. The term includes a detached accessory structure, including a guest house, or other living quarters that are intended for human habitation, if the entire property is designated for a single-family residential use. The term does not include property that is used for any nonresidential use. 3 (ii) Short term rental platform means an entity that provides a platform, or a business model facilitating exchanges between two or more groups of consumers and producers,through which unaffliated parties offer to rent a short term rental to an occupant and collects consideration for the rental from the occupant. (jj) Smoke detector means a device which senses visible or invisible particles of combustion and conforms to the minimum standards for type, components, and maintenance prescribed by the National Fire Protection Association. (kk) Structure means that which is built or constructed or a portion thereof. (11) Tenancy Agreement means all agreements, written, oral or implied, and valid rules and regulations embodying the terms and conditions concerning the use and occupancy of a rental unit. (mm) Tenant means a person who occupies a rental unit for residential purposes with the landlord's consent and may include monetary or other legal consideration that is agreed upon by both parties. Sec. 6-81. Compliance required. (a) No person shall maintain, or allow occupancy of, a rental unit in the City without compliance with the provisions of this Article. Failure to comply with the provisions is a violation of this Article. Any structure converted into a rental unit must have an Inspection Report completed and receive an Inspection Certificate before occupancy. (b) The provisions in this Article shall not be construed to prevent the enforcement of other ordinances or regulations which prescribe stricter standards than are provided herein. (c) This Article applies to rental units located within the City,but shall not apply to the following occupancy arrangements unless such arrangements are created to avoid the application of this Article: (1) Occupancy in group homes. (2) Occupancy by the purchaser of a dwelling unit under a recorded contract of sale. (3) Short term rental. (4) Owners who occupy the premises and rent to no more than two unrelated occupants. (d) This Article does not apply to the following: (1) Rental units built as new construction, for ten (10) years after the rental unit construction is completed. The owner of such rental unit must submit to the Department the required information to prove the new construction date of the rental unit; and (2) Rental units inspected by a State of Indiana licensed home inspector pursuant to a completed real estate sales transaction, for three (3) years from the date of the inspection. The purchaser of the rental unit must submit to the Department the required information to prove the validity of the inspection meeting the minimum standards on this Article. (e) This Article applies to governmental or public agencies acting as landlords. If the federal or state subsidized, or owned rental units are regularly inspected by a government entity and verification of housing conditions meeting the standards of this Article are delivered to the Department as requested, then such rental units may qualify for an exemption as provided in sub- section 6-82(n). 4 (f) An owner shall not allow a rental unit to be occupied that has been issued a vacate and seal order by the Department or is condemned by any agency that has the authority to condemn. Sec. 6-82. Inspection of rental units. (a) Unless sub-section 6-82 (n) below is applicable, each rental unit covered by Sees. 6-79 and 6- 81 within the City shall be inspected by the Department. (b) At the start of the Rental Safety Verification Program, the initial inspection cycle will be one, two, four, or five years. Thereafter, the inspection cycles are subject to adjustment as established and published by the Department pursuant to Sec. 6-87. (c) Inspection cycle certification paths are as follows: Inspection Certification Path Initial Inspection—Passes& Single-family property or duplex will be issued a five-year Initiated Contact with the inspection certificate. Department for Initial Inspection Multi-family property will be issued a five-year inspection certificate. Rental units qualifying for a five-year inspection certificate are potentially eligible for a self-certification program that may be implemented by the Department. Initial Inspection—Passes Single-family property or duplex will be issued a four-year inspection certificate. Multi-family property will be issued a four-year inspection certificate. Rental units qualifying for a four-year inspection certificate are potentially eligible for a self-certification program that may be implemented by the Department. Initial Inspection—Fails Re-inspection must be conducted within no later than sixty (60) days. No fees are imposed for first re-inspection. Single-family property or duplex upon passage of the first re- inspection will result in a four-year inspection certificate. Multi-family property upon passage of the first re-inspection will result in a four-year inspection certificate. Additional Re-Inspection(s) Re-inspection(s)must be conducted within no later than sixty -Fails (60) days. 5 Fees begin to accrue. See Penalties and Fees section in this Article. The Code Inspector may issue penalties and the property may be subject to further enforcement as allowed by law, including the Indiana Unsafe Building Law. Single-family property or duplex upon passage of a subsequent re-inspection will result in a one-year inspection certificate. Multi-family property upon passage of a subsequent re- inspection will result in a two-year inspection certificate. Defective Paint Conditions For rental units built before 1978 with deteriorated surfaces (for example, chipping,peeling, chalking, cracking or damaged paint), owners must complete the repairs to such surfaces using lead safe practices in accordance with all applicable federal and state laws and related agency rules and regulations, and submit to the Department lawful proof of compliance before being issued an Inspection Certificate. (d) If a rental unit community has five(5) or fewer units, Code Inspectors will inspect every unit. Rental unit communities with six (6) or more units will have a percentage (between 10-20%) of the units randomly sampled by the Code Inspector to inspect and then use those findings to extrapolate the overall quality and condition of the rental units therein. (1) If the findings extrapolated indicate to the Code Inspector overall substandard conditions of the rental units or such violations that could affect other rental units, the Code Inspector may complete Inspection Reports for additional units as deemed necessary. (e) In conjunction with the Inspection Report, and to receive the Inspection Certificate, the owner shall repair pre-existing substandard housing violations currently active with the Department to meet minimum standards under this Article. (f) Conditional Occupancy Certification will be issued to a rental unit that has all repairs completed excepting minor exterior items that cannot be competed due to the weather conditions and will include all the necessary information for the timely completion thereof. (g) The Code Inspector reserves the right to conduct a re-inspection of the rental unit and may adjust the certification cycle based upon any re-inspection. (h) The Inspection Certificate will be issued after the rental unit passes the Inspection Report and all fees and penalties due under this Article are paid. The Code Inspector may consider documentation submitted by the owner as sufficient proof of compliance on minor violations at the discretion of the Code Inspector. 6 (i) Should the rental unit fail to achieve certification,the Code Inspector may issue penalties, and the rental unit and the owner of record may be subject to further enforcement as allowed by law, including the Indiana Unsafe Building Law, but with all due process or appeal rights as afforded thereunder. The Department may post the rental unit as "No Inspection Certificate and Illegal for Non-Owner Occupancy". (j) An Inspection Report and Inspection Certificate shall be issued to the owner for each rental unit upon which an inspection cycle is performed within ten(10) business days from the date the Inspection Report is completed and from the date the Inspection Certificate is issued. (k) An Off-Cycle Inspection may be conducted based upon a complaint,or upon the Department's reasonable belief that the unit is out of compliance with or in violation of the IPMC, State of Indiana law or the South Bend Municipal Code. (1) If the Code Inspector has reason to believe that the rental unit does not comply with the Code or determines that the condition of the rental unit has deteriorated since the last Inspection Report, that resulted in certification, to such an extent that a complete new Inspection Report is required, then a complete new Inspection Report of the entire rental unit may be performed. (1) Upon completion, a new Inspection Report and appropriate Inspection Certificate, as approved by the Code Inspector, shall be issued to the owner. (m) Whenever an Inspection Report is required, the Department will contact the owner to initiate the process for completing the Inspection Report. Unless waived by the owner or tenant, the following procedure shall be used to obtain entry to rental units for completing any Inspection Report: (1) The owner shall supply notice to the tenant(s) or occupant(s) and make reasonable arrangements with the tenant or occupant for a date and time to complete the Inspection Report. The owner shall inform the Department of the arrangements made with the tenant or occupant at least seven (7) business days before the scheduled date to complete the Inspection Report. (2) The owner, or the owner's authorized agent, must be present at the time the Code Inspector conducts the Inspection Report. (3) Should the owner fail to schedule a date and time to complete the Inspection Report and inform the Department per sub-section (1) above, the Department may send a 1st class letter to the owner of record explaining the failure to comply and the possible consequences, such as penalties and a RSVP warrant, for such failure if not cured within the time prescribed. (4) If the owner does not comply with scheduling a date and time to complete the Inspection Report after the time allowed in sub-section(3) above,the Department may issue penalties under this Article. (5) Should the owner continue to fail to schedule a date and time to complete the Inspection Report, the Department may send a 1St class and certified letter to the owner of record, or provide notice by publication, explaining the failure to comply and the consequences, such as penalties and a RSVP warrant, for such failure if not cured within the time prescribed. The Department may post the rental unit as "No Inspection Certificate and Illegal for Non-Owner Occupancy". 7 (6) If the owner, occupant or tenant refuses to allow entry or schedule arrangements to complete the Inspection Report, the Department may obtain a RSVP warrant from any court of competent jurisdiction. (n) Private Inspections completed as specified under IC 36-1-20-4.1(c) must meet all the requirements for an exemption to be approved by the Department. (1) An owner of a rental unit qualifying for an exemption described in IC 36-1-20-4.1(c) must apply to the Department for that exemption which may be denied if all qualifications of IC 36-1-20-4.1(c) are not met. (2) The owner applying to the Department for approval of the exemption must submit a written inspection report that verifies the rental unit is safe and habitable, along with all other necessary proof of the exemption, to the Department on or before the due date established by the Department. (3) Pursuant to IC 36-1-20-4.1(d), the Department may inspect a rental unit that meets the requirements of and has been approved for an exemption if the Department has reason to believe or receives a complaint that the rental unit does not comply with applicable Code requirements. (o) An Inspection Report will be made available for the tenant who occupies the rental unit at the time of the inspection and cooperates with the Department to complete the inspection. Unless other arrangements are made with the Department,the Inspection Report may be sent to the tenant who occupies the rental unit upon request as approved by the Department. (p) Stop Work Order. To further the purposes of Secs. 6-79 and 6-81, and in conjunction with Chapter 16, Article 8 of the South Bend Municipal Code, Code Inspectors may issue stop work orders. (1) Authority. Whenever the Code Inspector finds any work regulated by this Article being performed in a manner contrary to the provisions of this Article or in a dangerous or unsafe manner, the Code Inspector is authorized to issue a stop work order. (2) Issuance. A stop work order shall be in writing and shall be given to the owner of the property, to the owner's authorized agent, or to the person doing the work. Upon issuance of a stop work order, the cited work shall immediately cease. The stop work order shall state the reason for the order and the conditions under which the cited work is authorized to resume. (3) Emergencies. Where an emergency exists, the Code Inspector shall not be required to give a written notice prior to stopping the work. (4) Failure to comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be liable to a penalty of not less than $500.00 dollars or more than $2,500.00 dollars per day. 8 (q) At the time the owner informs the Department of the arrangements made with the occupant or tenant to complete the Inspection Report, the owner shall provide the following contact information to the Department: (1) The name, telephone number, email address and the commercial domicile address of the owner's physical business location. Additional listing of a secondary address which is not required to be physical, may also be given when used for availability to the public; (2) The name, address,phone number, e-mail address of: a. The person(s)residing in Indiana authorized to manage the rental unit; and b. The person listed as the "responsible party" with the Internal Revenue Service;and c. The person who is authorized to act as agent for the owner for purposes of service of process and receiving and receipting for notices and demands on record with the Indiana Secretary of State's Business Services Division; and d. The property manager, if any. (3) Real property tax identification key number of each rental unit and/or rental unit community owned in the City; (4) An affirmation of whether the rental units, the real property of which the rental units are a part, and any other rental unit property owned in the City, are subject to any un- remediated citation or violation of the federal, state and local codes and ordinances; (5) A statement of the number of rental units on each separate parcel of real property. Sec. 6-83. Revocation of Inspection Certificate. (a)The Department may revoke an Inspection Certificate,by sending notice to the owner of record via first-class and certified mail and publication if mail service is returned undeliverable, for the following causes: (1) The rental unit has deteriorated, does not pass minimal standards and the owner is unresponsive or refuses to make repairs. (2) The rental unit has deteriorated significantly to the point of becoming condemned. (3) The rental unit appears to have significantly deteriorated since the Inspection Report was last completed and owner is unresponsive to new Inspection Report requirement. (4) The owner supplied false information or false private inspection. (5) Since last Inspection Report, owner or occupant illegally converted space in the rental unit to increase the occupancy. (6) Since last Inspection Report, owner failed to correct Code violations within time allowed. (7) The rental unit has been designated as a chronic problem property pursuant to the South Bend Municipal Code. Sec. 6-84. Approved certification for rental. After the Inspection Report is completed and the rental unit receives an Inspection Certificate, the Department will provide the owner with the appropriate certification which should be placed in a conspicuous location, such as in the façade of the building facing a public street and containing a building entry, or in a conspicuous interior location. 9 Sec. 6-85. Transfer of Inspection Certificate (a) An Inspection Certificate may be transferred to a new owner, except as prohibited in this section, by the owner filing with the Department the required owner information and agent information,if applicable.This includes transfers of ownership between corporations or other legal entities even where there is identical ownership interest in the acquiring legal entity as in the previous legal entity. An Inspection Certificate may not be transferred, or a new Inspection Certificate issued to any owner, owned in whole or in part by an owner, that currently has any Inspection Certificate revoked, or has been issued a Conditional Occupancy Certification or has a rental unit condemned by any agency that has the authority to condemn. (b) The new owner shall have thirty(30) days from the date the rental unit was transferred to the new owner to file with the Department the required owner information and agent information, if applicable, and failure to do so will result in a penalty of$250.00. Sec. 6-86. Penalties and fees. (a) There is no fee for the initial inspection and the first re-inspection. (b) There is a$100.00 fee for the second re-inspection per rental unit and the fee doubles for each re-inspection per rental unit thereafter. (c) There is a $100.00 fee for each rental unit for the owner's failure to meet the Code Inspector for a scheduled inspection. (d) The owner of record will be notified by first-class mail before any penalty may issue in accordance with IC 36-1-20-6. Penalties may be imposed as follows: (1) A $250.00 penalty per week for a rental unit that has not been inspected or certified. (2) A$300.00 penalty per week for a rental unit that has an expired certification posted. (3) A $500.00 penalty for removing a condemned notice from the rental unit. (4) A $500.00 penalty the first week allowing occupancy in a condemned structure. After the first week, the penalty doubles each week thereafter until a maximum of$7,500.00 per week. (e) The fees and penalties imposed under this section shall be enforced through the City's Ordinance Violations Bureau as prescribed in Chapter 2, Article 19 of the South Bend Municipal Code, with all due process or appeal rights as afforded thereunder, and do not prohibit or restrict the enforcement for violations under other applicable ordinances, state or federal laws. (0 Fees and penalties generated from this Article shall be dedicated funds and are not to revert at the end of the City's fiscal year to the General Fund. These funds are to be accumulated and maintained in Fund 219. Penalties from this Article are to be used for purposes of assisting those in need of short-term relocation within the City from their rental unit because of owner noncompliance with this Article. Surplus revenue maintained in Fund 219 may be used for operating costs of the Rental Safety Verification Program. (1) Acts of God or other conditions beyond the control of the property owner or caused by the tenant's negligent, wrongful or malicious acts or omissions will not qualify for short-term relocation assistance. 10 (g) Penalties under this section will be imposed pursuant to IC 36-1-20-6(b). (h) If the owner of record fails to pay penalties, fees, costs and expenses, the Department may pursue collections in personam and in rem as allowed by law, including in the same manner as prescribed under IC 36-1-6-2, IC 36-7-9-13 and IC 36-7-9-13.5 except that amounts collected shall be deposited and used according to sub-section(f) above. Sec. 6-87. Monitoring progress. The Rental Safety Verification Program will be subject to review at regular intervals, which includes meetings of a working group consisting of Code Inspector staff, Department leadership, a Common Council appointee, and Mayor's office leadership. Following the first six (6) months of implementation, the Department and the Mayor's Office will make a preliminary report to the Common Council on the progress in the focus areas, challenges faced, and anticipated procedural changes, including adjustments to the inspection cycles and the potential to add a self-certification program. Sec. 6-88. Severability clause. The provisions of this ordinance are severable, and the invalidity of any phrase, clause or part of this ordinance shall not affect the validity or effectiveness of the remainder of the ordinance. Secs. 6-89-6-93. Reserved. SECTION II.This ordinance shall be in full force and effect from and after its passage by the Common Council, approval by the Mayor and any legal publication required by law. Tim Scott, Council President South Bend Common Council Attest: Kareemah N. Fowler, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the day of , 2019, at o'clock . m. Kareemah N. Fowler, City Clerk Office of the City Clerk Approved and signed by me on the day of , 2019, at o'clock .m. 11 Pete Buttigieg, Mayor City of South Bend, Indiana 12