HomeMy WebLinkAboutSubstitute Bill 12-16 Proposed Landlord Registration ProgramFax: 574.235.9173
May 3, 2016
ON.
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The South Bend Common Council
411 Floor County -City Building
227 West Jefferson Boulevard
South Bend, Indiana 46601 -1830
574.235.9321
The South Bend Common Council
4th Floor County -City Building
South Bend, Indiana 46601
TDD: 574.235.5567
Re: Substitute Bill No. 12 -16 Proposed Landlord Registration Program
Dear Council Members:
We are filing a substitute version of the proposed ordinance which would establish a Landlord
Registration Program in the City of South Bend. The main changes to the ordinance are located on
page 5 in Section 6 -44 (d -f) regarding Enforcement and Penalties. As well as Section 6 -44 (h),
Certified Mail, Return Receipt has been added as an option for notice of violation. All other
provisions are identical to those filed on March 9, 2016 with the Office of the City Clerk.
We look forward to discussing this Bill with you at the Council's Health and Public Safety
Committee and next week's Council meeting. The ordinance aims to establish a registration
program that assembles accurate information and is informative for landlords, tenants, and the
general public. Thank you.
st sincerely,
.`
Tim Scott
1St District Council Member
Attachment
—Z e� -6
Karen White
At -Large Council Member
Fled in Clerk's office
MAY 0 4 2016
KA.REEMA14 FOWLER
CITY CLERK, SOUTH BEND, IN
SUBSTITUTE BILL No. 12-16
ORDINANCE NO.
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
AMENDING CHAPTER 6 OF THE SOUTH BEND MUNICIPAL CODE BY THE INCLUSION OF
NEW ARTICLE 10 ENTITLED LANDLORD REGISTRATION PROGRAM
STATEMENT OF PURPOSE AND INTENT
The South Bend Common Council, in collaboration with the City Administration, believe that the following
landlord registration program is in the best interests of the City of South Bend. The regulations have been
carefully drafted to comply with the new governing Indiana state law. In 2014, the Indiana Association of Realtors
(IAR) worked with the Indiana General Assembly to pass HEA 1403 which "caps the amount a local unit can
charge for landlord registry fees at $5.00..." Some of the benefits of having such a local program which would
incorporate best practices focus on:
• Acknowledging data from the U.S. Census Bureau last revised on December 2, 2015 which reported that
43.3 % of housing units in the City of South Bend are rental units
• Developing positive and improved communications and exchange of information among landlords,
tenants and the community
• Maintaining a registration program which assembles accurate information and which is informative for
landlords, tenants and the general public
• Enhancing housing quality and neighborhood stability through an improved informational system on
rental properties
In the preparation of the proposed regulations, several ordinances and best practices were carefully reviewed with
a particular emphasis on two (2) city ordinances which were passed after the new state law took effect. These
included the Indianapolis landlord registration regulations, which took effect on January 1, 2015, as well as the
rental registration program in Evansville which was approved on September 8, 2014, when their Council passed
Ordinance No. G- 2014 -29.
Annual registration of property owners with the Department of Code Enforcement along with a.fee of
$ 5.00 per property owner will be required. Failure to register would result in a $300 fine.
The City of South Bend's government website maintains a "Ten Tips Every Landlord Should Know" program in
the interest of furthering collaboration between landlords and tenants. The City believes that the proposed
registration program will enhance such opportunities throughout South Bend. The City's website will be updated
to include information on the Landlord Registration Program as part of its proactive outreach to the community.
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Section I. Chapter 6 of the South Bend Municipal Code is amended by the inclusion of new Article 10
which shall read in its entirety as follows:
Article 10. Landlord Registration Program.
Sec. 6 -40 Establishment of Landlord Registration Program.
Ordinance Addressing Landlord Registration Program
Page 2
(a) Effective June 30, 2014, political subdivisions in the State of Indiana were authorized to establish and
enforce registration programs for rental units within their jurisdiction, subject to certain conditions and
limitations.
(b) The South Bend Landlord Registration Program is established pursuant to the authority granted by the
state.'
See. 6 -41 Definitions.
(a) For purposes of this Article, the following definitions shall apply:
(1) City means the City of South Bend, Indiana.
(2) Commercial domicile has the meaning set forth in Indiana Code § 6 -3 -1 -22.2
(3) Department means the Department of Code Enforcement established and addressed in Section 2 -13
of the South Bend Municipal Code.
(4) Key number has the meaning set forth in Indiana Code § 6- 1.1- 1 -8.5.
(5) Landlord has the meaning set forth in Indiana Code § 32- 31 -3 -3.
(6) Owner has the meaning set forth in Indiana Code § 32- 31 -3 -4.
(7) Person has the meaning set forth in Indiana Code § 32- 31 -3 -5.
(8) Rental unit has the meaning set forth in Indiana Code § 32- 31 -3 -8, except that an owner- occupied
structure that:
Has no portion of the area thereof promised for the use of a residential unit; or
ii. Has a single sleeping unit being rented to a tenant shall not be considered a "Rental
Unit ".
(9) Rental unit community has the meaning set forth in Indiana Code § 36- 1- 20 -1.5.
(10) Tenant has the meaning set forth in Indiana Code § 32- 31 -3 -10.
I Indiana House Enrolled Act 1403 (2014) added Indiana Code §36- 1- 20 -1.5 defining "rental unit community "; amended Section I of
Indiana Code §36- 1 -20 -2, amended Indiana Code §36- 1 -20 -3; added new sections Indiana Code §36- 1- 20 -1.5, Indiana Code §36 -1-
20-4.1, Indiana Code §36- 1 -20 -5, and Indiana Code §36- 1 -20 -6.
2 This definition is from Indiana's tax regulations which requires the identification of the "principal place from which the trade or
business of the taxpayer is directed or managed".
Ordinance Addressing Landlord Registration Program
Page 3
(b) All definitions referred to in this section which incorporate the state law definitions shall reflect the most
recent version of the state law definitions.
See. 6 -42 Registration Required and Elements of the Landlord Registration Program.3
(a) Beginning September 15, 2016, all owners or landlords of rental units within the city must begin to register
with the Department of Code Enforcement via a method or form prescribed by the department. However,
to assist in the first -time implementation of the regulations under this Article, for calendar year 2016 only,
registration shall be extended to December 30, 2016. The registration form shall include the following:
(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 and 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 ;4 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, licensed by the Indiana Real Estate Commissions
(3) Real property tax identification key number of each rental unit and /or rental unit community which
the owner or landlord is submitting for registration purposes under this Article;
(4) An affirmation of whether or not the rental units, the real property of which the rental units are a part,
and any other rental unit property owned or registered by the owner in the city, are subject to any un-
remediated citation or violation of the state and local codes and ordinances;
3 All landlords and owners are also required to comply to the applicable provisions of the City of South Bend's Human Rights Ordinance
which are codified in South Bend Municipal Code § 2 -126 through § 2- 132.1., as well as applicable provisions of federal and state laws
which include but are not limited to the Fair Housing Act which is Title VIII of the Civil Rights Act of 1968 codified at 42 United States
Code § 3601 et seq.; the Architectural Barriers Act of 1968 codified at 42 United States Code § 4151, et seq.; Title II of the Americans
With Disabilities Act of 1990 (ADA), codified at 42 United States Code § 12131, et seq.; and the Indiana Civil Rights Act codified at
Indiana Code § 22 -9 -5.
4 The Internal Revenue Service requires the disclosure of the "name and taxpayer identification number of the true responsible party for
the entity requesting an Employer Identification Number (EIN) ".
5 Indiana Code § 25 -34.1 sets for the Real Estate Brokers and Salespersons state law. Property management is covered under the
broker and salesman's licenses by including renting, leasing, and managing covered activities. Limited exemptions are provided for
such as "owners who only regulate activities are in relation to a maximum of 12 apartment units located on a single or contiguous
parcels of land may rent them without a license ".
Ordinance Addressing Landlord Registration Program
Page 4
(5) An affirmation of whether or not there is more than one (1) delinquent payment of real property taxes,
assessments, or penalties (other than those that are the subject of an ongoing appeal or bankruptcy
proceeding) with respect to the property or any other rental unit property owned or registered by the
owner in the city;
(6) A statement of the number of rental units on each separate parcel of real property covered by the
registration.
In the event of affirmation that the owner or landlord acknowledges that he or she does have real property with
un- remediated citations as addressed in sub - paragraph (4) and /or more than one (1) delinquent payment of items
addressed in sub - paragraph (5), the applicant shall be required to work with the issuing Department or Agency to
amicably resolve such matters.
(b) Beginning September 15, 2016, an owner or landlord of a rental unit must pay to the Department of Code
Enforcement an initial registration fee of five dollars ($5.00), with all such fees deposited into the Landlord
Registration Fund. However, to assist in the first -time implementation of the regulations under this
Article, for calendar year 2016 only, registration shall be extended to December 30, 2016. Only one (1)
registration fee is required for all rental units in a rental unit community. If a rental unit is not part of a
rental unit community, a separate registration fee must be paid for each separate parcel of real property on
which a rental unit is located, unless they are all registered at the same time.
(c) In the event of a change of ownership, the new owner or landlord must, not later than thirty (30) days after
the change of ownership, pay the registration fee of five dollars ($5.00) and provide updated registration
information to the Department of Code Enforcement. The effective date of new ownership will be the date
the property was transferred or the date the deed was recorded, whichever occurs earlier.
(d) Registrations must be renewed annually with the Department of Code Enforcement. The renewal fee shall
be five dollars ($5.00), with all such fees deposited into the Landlord Registration Fund.
(e) The owner or landlord must notify in writing the Department of Code Enforcement within thirty (30) days
of any changes to the registration information.
Sec. 6 -43 Landlord Registration Fund.
A special fund designated as the "Landlord Registration Fund ", Fund No. 221, is created. It shall be
a continuing, non - reverting fund, with all balances remaining therein at the end of the year, with such balances
not reverting to the City's General Fund. All fees assessed and collected under this Article shall be deposited into
this fund, with such monies being dedicated solely to reimbursing the costs actually incurred which are related to
the South Bend Landlord Registration Program. This fund will be subject to annual appropriation by the South
Bend Common Council.
Sec. 6 -44 Enforcement and Penalties
(a) This Article shall be enforced by the Department of Code Enforcement or an authorized designee.
Ordinance Addressing Landlord Registration Program
Page 5
(b) Failure to register as required by Section 6 -42 of the South Bend Municipal Code is subject to a civil
penalty of five hundred dollars ($500.00) for each rental unit or rental unit community in violation.
(c) Submitting an incomplete registration form is subject to a civil penalty of one hundred dollars
($100.00).
(d) Providing any false, material misrepresentation or false statement on each filing of a registration form
required in Section 6 -42 is subject to a civil penalty of one thousand dollars ($1,000.00) for the first
offense. Any subsequent offenses will be referred to the St. Joseph County Prosecutor's Office for
appropriate action.6
(e) Failure to update the registration within thirty (30) days of a change in ownership and /or registration
information, as required by Section 6 -42 of the South Bend Municipal Code, is subject to a civil penalty
of three hundred dollars ($300.00).
(f) Failure to renew the registration as required by Section 6 -42 of the South Bend Municipal Code is
subject to a civil penalty of three hundred dollars ($300.00).
(g) Civil penalties paid in response to violating this Article shall be deposited into the Landlord
Registration Fund, Fund No. 221. Such civil penalty monies shall be kept segregated from fees
deposited into this fund for accounting purposes, and shall be subject to appropriation by the South
Bend Common Council for the replacement of curbs and /or sidewalks which may be located
contiguous to a property registered under this program. Location determination shall be based on a
public safety priority need basis, as determined by the City's Department of Public Works Director.
(h) The penalties allowed under subsections (a) through (f) of this section may not be imposed until after:
(1) A notice of violation has been issued to the owner or landlord or the owner's or landlord's designee
by personal service or by First Class United States Mail, Postage Prepaid and/or United States
Certified Mail, Return Receipt.
(2) Passage of thirty (30) days from receipt of the notice based upon First Class United States Mail,
Postage Prepaid and/or United States Certified Mail, Return Receipt, which must be stated in the
notice for the violation to be cured; and
(3) Failure of the owner or landlord or the owner's or landlord's designee to cure the violation within
the time stated in the notice.
Sec. 6 -45 Performance Measures and Reporting.
As part of the annual report, the Department of Code Enforcement shall measure the success of the Landlord
Registration Program using the following performance measures, which may be supplemented with additional
performance measures:
I Indiana Code § 35- 43 -5 -2 sets forth state regulations addressing application fraud.
Ordinance Addressing Landlord Registration Program
Page 6
(a) Number of landlords registered under the Program;
(b) Number of parcels identified by their individual real property tax identification key number under the
Program;
(c) Number of fines and civil penalties issued, the number and amount of fines and civil penalties collected,
the number and amount of fines and civil penalties unpaid and the status of their collection with such data
being organized by the category of the civil penalty identified in the notice of violation; and
(d) Status of balances of the Landlord Registration Fund, Fund No. 221 identifying fees and civil penalty
dollars transactions separately.
Section II. If any part, subsection, section, paragraph, sub - paragraph, sentence, clause, phrase or word of
this ordinance is for any reason declared to be unconstitutional or otherwise invalid by a Court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.
Section III. This ordinance shall be in full fo on September 15, 2016, from and after its
passage by the Common Council, approval by the ayor, and legal pub ' ation.
Tim Scott, 1St District Council Member
South Bend Common Council
Karen L. White, Council Memb t Large
South Bend Common Council
Ile3l:
Office of the City Clerk
-.;, „&« /by me to Pete Buttigieg, the Mayor of the City of South Bend, Indiana, on the day of
2016, at o'clock _. m.
Office of the City Clerk
me on the day of , 2016, at loc ck m.
Filed in Clerk's Office
i A READING Pete Buttigieg, Mayor MAY 0 4 2016
PUBLIC HEARING City of South Bend, Indi a
3 rd READING KAREEMAH FOWLER
NOT APPROVED CITY CLERK, SOUTH BEND, IN
REFERRED
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