HomeMy WebLinkAboutJanuary 18, 1994 Work SessionNOTICE OF OFFICIAL M~.~.TING
Notice is h~reby given tl~t an official meeting
is to be held in thc
Cit~ of Columbia Hcightz
as follow--'
Meeting of:
MAYOR, CITY COUNCIL, AND CITY MANAGER
Date of Meetinl~
TUESDAY, JANUARY 18, 1994
Time of Meeting;
7:00 PM
Location of Meeting~
CITY HALL COUNCIL CHAMBERS
590 40TH AVENUE N.E.
Pm-po~ofMee~
WORK SESSION
1. Discuss Housing Maintenance Code Ordinance Amendments
2. Review 1994 CDBG Funding Proposal for January 24, 1994,
Public Hearing
3. Discuss Solid Waste Tipping Fee Adjustments
4. Adjournment
The City of Columbia Heights does not discriminate on the basis of disability in the admission
or access to, or treatment or employment in, its services, programs, or activities. Upon request,
accommodation will be provided to allow individuals with disabilities to participate in all City
of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped
persons are available upon request when the request is made at least 96 hours in advance.
Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements.
(TDD/782-2806 for deaf only)
CITY OF COLUMBIA HEIGHTS
TO:
FROM:
RE:
DATE:
Mayor
City Council
City Manager
Housing/Maintenance Code Amendments
January 14, 1994
Over the past few weeks, the Columbia Heights Landlords Association chaired by Bob Timmesh, has
inquired of me and City Council Member Nawrocki as to potential compromises to the mandatory
'tenant occupancy~ inspection provision. Mr. Timmesh suggested that the mandatory inspection be
directed only to 'troubled or problem properties~ and that the city's policy remain on an annual
inspection or inspection upon filed complaint basis. Further, he has suggested the possibility of
requiring as part of license renewal, some level of continuing education obligation on the part of the
landlords. I spoke with Mr. Timmesh this past Thursday, and he has suggested that the compromise
does not have the full support of their association, but they will be prepared to discuss this as an
alternative. He further stated that the majority of their concerns deal primarily with interpretations
and terminology. For example, a landlord brought up the definition for term Ntampering* with smoke
detection devices.
I have discussed the compromises with city staff, and offer the following criteria that would require
mandatory tenant change inspection.
During each of the past two re-license years, the landlord has failed to correct housing
maintenance code violations on a timely basis, as evident by a written record of the past due
notification orders.
During the past year, two or more tenant complaints on a single family/duplex/triplex or three
or more complaints on a four-plex or other multi-family building, have been received and
substantiated as to housing violations.
That during the past year, a landlord received two or more letters from the police department
concerning the conduct of tenants on the licenscd premise.
If any one of thc above conditions occurred, the City Inspections Department would notify the landlord
that they were now under obligation to have their building inspected upon each tenant occupancy
change. Accordingly, we would request a list of current tenants within the building and a '/2 hour
notification of a new tenant move in. The tenant-occupancy change inspections would occur for a
period of one year, but could be extended if the above mentioned conditions continue to exist.
It is has also been suggested the continuing education requirement be instituted as a con~lition of
licensing. The purpose of this requirement would be to keep landlords better informed of housing
activities in the City of Columbia Heights and to insure that they are knowledgeable of operational
rights and obligations of rental property. As a standard, we suggest that upon license renewal, a
landlord or property manager would have to show proof that he or she has attended three hours of
education relevant to-the operation or management of rental property during the past year.
Additionally, this may include city-sponsored housing education programs. As an example, the annual
continuing education obligation could be fulfilled through any one of the following:
#1.
#2.
#3.
#4.
#5.
#6.
Maintaining/certification of a real estate license.
Maintaining membership and proof of attendance at seminars of a multi or rental housing
association.
Registering and attending a rental management course conducted by a community or technical
college.
Attending three hours education at a city-sponsored or locally-sponsored local landlords
seminar.
Attendance at two or more locally recognized landlord meetings.
Attendance at local community education program or course on rental property management.
I spoke with Steve Johnson of the Minnesota Multi-housing Association, and he expressed an interest
for their organization to be involved in the continuing education aspect of our license. He forwarded
the attached packet of information and plans to attend Tuesday night's meeting.
In the event you are interested in these two concepts, I can easily add written amendments for the
ordinance prepared prior to the council meeting.
cc.'
Robert Timmesh
Jean Gage
Steve Johnson
+1 612 ?88 ~00
01-14-19~4 ll:32AM FROM DouS Zones
TO ?822801 P.O1
Article II Section I
5A.201¢1) I What about code Items that apply to new construction. Is It your
intention to make all properties comply to new contruction codes???? What about
grandfather clausesr ha~ do they apply???
j this needs to be more specific. Could this be Interpreted that you would
need to conform with adjacent properties. What about the situation where an owner
~ants to cedar siding over one half of a cement wall. Need to have exceptions?? What
do YOU want to accomplish? What if someone wanted to put 91ass blocks in a basement
windage??? Would this preclude construction of a cedar shed in your backyard if your
home was stucco???
k This is in wrong location~ should be under licencing. Maybe You would be
better served requiring this Information to be posted In the building and furnished to
the resident.
Section 2 ~fA202(]) a What about those owners who met the code requirements originally
and now the inspectors want them to change to a different style box. This should
specify where to locate this box. I installed a box at 4~15 Tyler as requested
initially. The Inspector approved the location. The last Inspection they wanted me to
move the box????
c. Should all aw the owner to patch the door. Inspectors In the'patS have
insisted that interior doors with holes in them could not bi repaired. This should be
more specific to give direction to inspectors and owners equally, As worded would
allow an inspector to require the doo~ be replaced and the owner wouldn't know that he
could possibly repair the door?7??
Section 7 5A.207(1) c. What about areas that do not have enough space to fence these
in without losing parking spaces? One a~ner was concerned that this would take effect
during the winter and he would not be able to promptly c~mply with new ordinance? As I
understand this would not require doors??? Doors cause problems, such as the resjdent~
not being able to get close enough to dumpsters and consequently throw trash inside
storage fence and not InodUm~ster. One member concerned about saging doors if the were
~equired?? ~ust passing on these concernl,
f, What about a ladder hanging on a building??? Does this apply equally to single
f~mlly I::lwelling units, Ladder may be to long to hang in a garage or fit in the
building????
5A.212(§) (Last sentence) Proof of profeelonal extermination shall ~e supplied to the
inspections office~ "if the problem persists." ??? What about ants? mouse traps, eec.
Professional extermination may not be needed, An owner can now safely treat for
roaches with a substance called "Avert'.
~OM Doo9 Jonem
TO
,a,,eo Daa as ,
7822881 P.02
Proposed Housing 0~dinance #I281
! would like to specifically object to the City Council that staff has failed to make
any reasonable attempt to contact memebers of the Columbia Heights Multi Housing
Organization. On numerous occassion$ you~ staff has asked our o~ganization to combine
with you~ Sheffield Owners Stoup to provt~e a measure of experience to that group.
Believe me when I say, "WE ARE Nor ADVEB~RY$~j we want safe, while maintained
neighborhoods for our residents as you want them fo~ your constituents. We will be
testing this ordinance in the courts and neither of us will be closer to reaching our
goals if we cannot work together to solve these problems. TH£R£ I$ NO REASON THAT OUR
ORGANIZATI0hl HAS NOT B~EN
I have neviewe~ a portion of the housing maintenance ordinance for rental property and
I am con~enned as to whether you are going to be applying it to 0NL¥ to rental property
or equally to single family h~meownens. If you are not, this certainly has the
potential for being discriminatory against renters and rental property owners. Is it
~our intention to inspect properties prior to a ne~ owner taking poseesion or moving
in. If not I believe this i~ ~iscriminatory.
Hot water Measeure~ at this location after how long???
5A.201(1) (c) does the definition of stove include an oven? is an ~ven required? If
a resident i~ connecting a gas stove in a rental unit, does he or s~e need a permit to
connect it? Ho~v about making 220 electrical connections??
(j) this is very vague, ~oes this mean that properties must conform to their
neighborhood construction or just the c~nstruction on a wall of a specific building or
is thi~ going to be left open to interpretation of the building official. I have a
building where we have redwood siding mixed with brick construction, would this be
allowed???
5A.202(I) a 1 object to the use of the term security system.___ We as ~wners cannot
guarantee th~-secur]'~ o+ ou~ re$iOents. Our a~Soc~a~lon tells us to use the term
'.~on~_r~lled a~ess". Do you also ~ant to deal with where the key box for the fire
~e~a~me~--shoul~ be located. After installing the lock box on the rear of the
building, ~ was tol~ ~hey wanted me to move it to the f~ont of the building.
Is a ~ntact devise that just ring~ In the hallway acceptable or doe~ it need to be
abl~ to individually and ~epera.!e~y 0oft.fy the re~sidents? yf¢¢,¢ ~"
~.~03(I) (c) This then would require ventilation of furnace no~ where laundry
equipment ape present. I belleve'thim goem. aQainst ~tate energy codes.
necessan~ 0o you have ~hi~ in your h~es? What if y~un launUry facilities are
~cated In a closet off a hallw,y? I ~ulU like to see utility ro~ and laundry
~tnicken fn~ thil ~ub section. Why would yo~ want to ventilate a furnace ro~?
much ventilation is nequined? It (his a fresh air )n(ake? on just c~buetion air????
5~.302(2) Remove thi~ ,e~tl~n. Inspect those units with repeated complaints more Often
luch as every 6 months of every 3 months. This is unreasonable. W~at ~re y~u tryl_n~
t_o_accomplish?? Do you want to have your Inspectors subpeanad into court?? We do not
believe this Will accomplish what you want? Will the city become an endorsement for
the unit??? what If the inspector misses something??? Owners have so much going on on
the first of the month when units turn over that it is unreasonable to add to our list.
If a resident moves out at 6100 P.M, and the, inspector comes ~y at ~:00 P,M. and the
~wnee~'~-7~finished the tuenover~ has the stove disconnected to clean, light fixtures
d~n to ~aint~ ~oke' alarm d~n while ~ainting~ outlet corses off~ etc. etc. what has
been acc~plished. Many times we week t111 ~:00 A.M. turning eves unl~'~urlng the
lurer months when eur tuenovee is highest. We get backe~ up and may be late for just
one more appointment, W~T D0 YOU ~ T0 A::~PLI~H????? I~ we kn~ in advance what
~ou want ~o acc~pllsh then marbe' ~e can
Section 2 ~.402(1)
b ix. This is a blanket endoesement ~oe abuse of p~er, To open ended, No checks
eno balance, Unseasonable. Maybe you nee~ to ad~ with the express approval of the
City Council and MayoP??? ~'~ these e~e ~av we could be Incluaed in thia discision
making process?? Maybe an ~nees adulsoey council that would help week to eliminate
bad landlords and help e~c,te ~ew ~ners???'
c. What if eeslaents object to giving out thole n~e or age oe s~e futuee
information you may decide to eequest? This Is auallble on the mailbox. 0verki11.
~meet i~ediately,.~eolete, I have eesldentl who object ta giving me these biethdate
(elderly) much le~e put it in a public reco~d. S~e eesldents may feel it is an
invasion of these pelvacy. What if eesldent refuses to give me his De hoe biethdate.
Then I am unlicence~ until I can evict that resident. What do you want to
accomplish???? ~---
5A.404(2) What provision is their to appeal outstanding relnsDectlon fees, Inspectors
should be required to notify owner when they intend to inspect or re-inspect.
i5~.611 DO WE NEED TO ADD ONCE ADJUDIr.,ATED???
These are all the suggestions that came out of our meeting that I was able to writ,
down, I may have missed · few, I have trled41~llilm~lm~lm~ to give my own examples to
help explain hc~ a specific rule may be mlsslnterpreted.
I personally hope that we can develop a working relationship. Maybe we can help the
city solve some of these problems If we can learn to share tnfoematlon and trust each
other.
Submitted by Columbia Heights Multi Housing Association. This is Doug Jones's
inter~retation of his notes and input made at our meeting halo on the 12th of January.
Our membership have not seen this typed version and I may have missed some items of
concern,
5A.~11(5) Why woul~ you require professional extermination proof? Could this be
modified to if the problem persists, a proof of professional extermination may be
requested?
5A.~02(2) ! object to this ~equire~ extra inspection. What is the pucpose if the units
a~e inspected annually. ! rent units out to corporate clients who may reside in my
unit any where from ~ weeks to ~ months. I~n't this going ouerkill? Who is going to
pay for all these additional Inmpections? Is this Oiscrimination if you do not then
also inspect all single family homes when they are sold, like et. Louis Park does? How
many times do owners of small buildings need to be chased over to thei~ buildings for
ins0ections? Woul~ the inspection nee~ to be completed p~lor to a new ~emident moving
in? What length of time doom ~he city have to respond anO inspect the unit?
TOTAL P.02
revs'd 11/22/93
OADZIiZ~CI~ ZlO. 12 81
BEZNG AN ORDZNANCE ~ZNG ORDINANCE NO. 853,
CZTY CODE OF 1977, AS AMENDED PERTAINZNG TO THE HOUSZNG MAZNTENANCE
CODE AND LZCENSZNG RENT~ZTS
The City of Columbia Heights does ordain:
SECTION 1:
Chapter 5A of Ordinance No. 853, City Code of.1977, as
amended, which has been repealed by Ordinance
No. , shall hereafter read as follows, to wit:
Chapter 5A HOUSING MAINTENANCE CODE
Article I General Provisions
Section
5a.101(1)
SA.X01(2)
Statement of Purpose
The purpose of the Housing Maintenance Code
(hereinafter referred to in Chapter 5A as ~Code") is to
protect the public health, safety and general welfare
of the people of this City. These objectives include,
among others, the following:
(a) To protect the character and stability of
residential areas within the city;
(b) To correct end prevent housing conditions that
adversely affect or are likely to adversely
affect the life, safety, general welfare, and
health;
(c) To provide minimum standards for heating, for
sanitary equipment and for light and ventilation
necessary to protect the health and safety of
occupants of building;
(d) To.~revent the overcrowding of dwellings~.
(e) To provide minimum standards for the maintenance
of existing residential buildings and to thus
prevent substandard housing and blight;
(f) To preserve the value of land and buildings
throughout the city.
With respect to dieputesbetween landlords and tenants,
and except as otherwise specifically provided by terms
of this Ordinance, the City Council will not intrude
upon the accepted contractual relationships between
landlords and tenants. The City Council will not
Section 2:
5A. 102 (1)
Section 3:
5A. 103 (1)
intervene as an advocate of either party, nor will it
act as an arbiter, nor will it be receptive to
complaints from landlords or tenants which are not
specifically and clearly relevant to the provisions of
this Code. In the absence of such relevancy with
regard to rental disputes, it is intended that the
contracting parties exercise such legal sanctions as
are available to them without the intervention of City
government. In enacting this Code, the Council does
not intend to interfere or permit interference with
legal rights to personal privacy.
Applicability
This Code establishes minimum standards for maintaining
dwellings, accessory structures and premises. This
Code is intended to provide standards for housing.
Applicable requirements shall apply to all apartment
units, homes, accessory structures, rooming houses,
lodging and/or boarding houses and house trailers used
or intended for use for human habitation.
Definitions
The following definitions shall apply in the
interpretation and enforcement of this Code, to-wit:
(a)
Accessory Structure. A structure subordinate to
the main or principal dwelling or dwellings which
is not authorized to be used for living or
sleeping by human occupants and which is located
on or partially on the premises.
(b)
Apartment Unit. Apartment, apartment unit, or
dwelling unit means a room or group of rooms
located within a building which form a single
habitable unit with facilities which are used or
are intended to be used for living, sleeping,
cooking or eating.
(c)
Approved. An indication that an item'meets
construction, installation, and maintenance
standards of the State of Minnesota and of this
Code.
(d)
Basement. Any floor level below the first story
in a building, except that floor level in a
building having only one floor level shall be
classified as a basement unless such floor level
qualifies as a first story as defined herein.
2
(e) Building. Any structure having a roof which may
provide shelter or enclosure for persons,
animals, or chattels, and, when said structure is
divided by party walls without openings, each
portion of such building so separated shall be
deemed a separate building.
(f) Building Official. Agent designated by the City
Manager to enforce provisions of the Housing
Maintenance Code.
(g) Clean. The absence of x~lbbish, garbage, vermin
or other unsightly, offensive or extraneous
matter.
(h) Dwelling. A structure or portion thereof
designed exclusively for residential occupancy,
including boarding and lodging houses, but not
including hotels and motels.
(i) Dwelling Unit. Dwelling unit has the same
meaning as apartment unit (within this Code).
(J) Exit. A continuous and unobstructed means of
egress to a public way and shall include
intervening doors, doorways, corridors, ramps,
stairways, smoke-proof enclosures, horizontal
exits, exit passageways, exit courts and yards.
(k) Family. An individual, or two or more persons
each related by blood, marriage, adoption, or
foster children, living together as a single
housekeeping unit; or a group of not more than
four persons not jo related, maintaining a common
household and using common cooking and kitchen
facilities.
(1) Functioning. In such physical condition as to
sa~ely perform the service or services for which
an item is designed or intended.
(m) Garbage. Garbage is defined in
(n) Habitable. A dwelling unit or part thereof that
~eets ~ini~um standards for use as a home or
place of abode by one or more persons.
(o) Hot Water. Water heated to a temperature of not
less than 110 degrees Fahrenheit, measured at
faucet outlet.
(p)
(q)
(r)
(s)
(t)
(u)
(v)
(w)
(x)
Housing Code. Section 5A of this Code together
with the Uniform Housing Code, 1985 Edition,
International Conference of Building officials.
Infestation. The presence within or around a
dwelling or dwelling unit of any insect, rodent,
vermin or other pest.
Kitchen. A habitable room within a dwelling unit
intended to be used for the cooking of food or
preparation of meals.
Occupant. Any person (including owner or
operator) living, sleeping, cooking or eating
within a dwelling unit.
Owner. Any person, firm or corporation who,
alone, jointly, or severally with o~hers, shall
be in actual possession of, or have charge, care
control of any dwelling, dwelling unit, or
rooming unit within the City as owner, employee
or agent of the owner, or as trustee or guardian
of the estate or person of the title holder.
Also, any person, firm or corporation who has the
right to determine who occupies a rental
structure (even though that right may be subject
to a lease or rental agreement), or a person,
firm, corporation who shall have the power to
rent or let premises to another for purposes of
this Code.
Person. Any individual, firm, partnership,
association, corporation, company or a joint
venture or organization of any kind.
Premises. A platted lot or part thereof or
unplatted parcel of land, and adjacent right-of-
way either occupied or unoccupied bv any dwellina
Or Structures.
Public Hall. A hall, corridor or a passageway
fo? providing egress from a dwelling unit to a
public way and not within the exclusive control
of one family.
Rental Dwelling. Any dwelling for hire with one
or more living units. Rental dwellings for
purposes of this Code do not include hotels,
motels, hospitals or homes for the aged.
(y)
Repair. Repair shall mean to restore to a sound,
4
sa,. lo3 (2)
acceptable state of operation, serviceability or
appearance. Repairs ehallbeexpected to last as
long as with ~he replacement by new items.
(z)
Rodent Harborage. A place where rodents commonly
live, nest, or establish their habitat.
(aa) Replace or Replacement. To remove an existing or
portion of a systeB and to construct or ~ns~al}.a
new item or a quality similar to t~_a~, o~
existing item when it was new. RepAacemen~
ordinarily takes place when repair of the item is
/mpracttcal.
(bb)
Rooming Houses. Any group of rooms which form
single habitable units used or intended to be
used for living and sleeping, but not for cooking
or eating purposes.
(cc)
Rubbish. Rubbish is defined in S5.605(2)(b) of
this City Code.
(dd)
Safe. The condition of being free from danger
and hazards which Bay cause accidents or disease.
(ee)
Story, First. The lowest story in a building
which qualifies as a story, as defined herein,
except that a floor level in a building having
only one floor level shall be classified as a
first story, provided such floor level is not
more than four feet below grade, as defined
herein, for more than fifty percent of the total
perimeter, or Bore than eight feet below grade,
as defined herein, at any point.
(fl)
Unsafe. As applied to a structure, a condition
or a combination of conditions which are
dangerous or hazardous to persons or property.
(gg)
Unsanitary. Conditions which are dangerous or
hazardous to the health of persons.
Water Closet. A toilet, with a bowl and trap
made in one piece, which is connected to the City
water and sewage system or other approved water
supply and lower system.
Whenever the words "dwellinq,' "dwelling unit,"
-premises,u or -structure' are used in this Chapter,
they ahallbeconstrued &s though they were followed by
the wordsUor any part thereof.#
5
Article II
Section 1:
5A.201(1)
Minimum Standards
Basic Equipment and Facilities
No person shall occupy as an owner-occupant or let to
another for occupancy any dwelling or dwelling unit for
the purposes of living, sleeping, cooking or eating
therein which does not comply with the following
requirements, to-wit:
(a)
Kitchen Sink. Each unit must contain a kitchen
sink in good working condition and properly
connected to an approved water supply system and
which provides at all times an adequate amount of
heated and unheated running water under pressure
and which is properly connected to the city
sewage system.
(b)
Kitchen Storage. Each unit must contain a
counter or table for food preparation and must
contain cabinets and/or shelves for storage of
eating, drinking and cooking equipment and
utensils and of food that does not require
refrigeration for safekeeping. All cabinets,
shelves, counter tops, and tables shall be of
sound construction covered with surfaces that are
easily cleanable and that will not impart any
toxic or deleterious effect to food.
(c)
Food Storage and Preparation. Each unit must
contain an operational and functioning stove for
cooking food and a refrigerator for the safe
storage of food which are properly installed with
all necessary connections for safe, sanitary and
efficient operation. Such stove or refrigerator
need not be installed when a dwelling unit is not
occupied and when the occupant is required to
provide a stove or refrigerator on occupancy. If
the occupant is required to furnish a stove or
refrigerator, sufficient space and adequate
functioning connections for the installation and
operation of the stove and refrigerator must
exist.
(d)
Toilet Facilities. Every dwelling unit shall
contain a. nonhabitable room which is equipped
with a flush water closet in compliance with
S6.201(1). Such room shall have an entrance door
which affords privacy. Said flush water closet
shall be equipped with easily cleanable surfaces,
shall be connected to an approved water system
that at all times provides an adequate amount of
6
running water under pressure to cause the water
closet to be properly functioning, and shall be
connected to the City sewer system.
(e)
Lavatory Sink. Every dwellinqunit shall contain
a lavatory sink. Said lavatory sink may be in
the same room as the flush water closet, or, if
located in another room, the lavatory sink shall
be located in close proximity to the door leading
directly into the room in which said water closet
is located. The lavatory sink shall be in good
working and functioning condition, shall be
properly connected to an approved water system,
shall provide at all times an adequate amount of
heated and unheatedrunning water under pressure,
and shall be connected to the City sewer system.
Bathtub or Shower. Every dwelling unit shall
contain a nonhabitable room which is equipped
with a bathtub or shower in good working
condition. Such room shall have an entrance door
which affords privacy. A bathtub or shower shall
be properly connected to an approved water supply
system, shall provide at all times an adequate
amount of heated and unheated water under
pressure, and shall be connected to the City
sewer system.
(g)
Stairways, Porches and Balconies. Every stairway
or flight of stairs, whether insideor outside of
a dwelling, and every porch or balcony shall be
kept in safe condition, sound repair, and free of
deterioration. Every stairwell and every flight
of stairs which is ~our risers or more high shall
have handrails which conform to the standards set
forth in S6.201(1). Every porch, balcony or deck
which is more than thirty (30) inches high shall
have a quardrail located at least thirty-six (36)
inches above the floor of the porch or balcony.
Every handrail and quardrail shall be firmly
fa~tened and maintained in good condition. No
flight of stairs shall have settled out 'of its
intended position or have pulled away from the
supporting or adjacent structures enough to cause
a hazard. No flight of stairs may have rotting,
loose or deteriorating supports. The treads and
risers of every flight of stairs, except spiral
or winding stairways, shall be essentially
uniform in width and height. Stairways shall be
capable of supporting a live load or one hundred
(100) pounds per square foot of horizontal
projection.
7
(h)
Access to Dwelling Unit. Access to or egress
from each dwelling unit shall be provided without
passing through any other dwelling unit.
AI~ buildinas inspected under Chapter SA. the
Housino Maintenance Code. shall conform to
applicable Uniform Buildino Code and Uniform Fire
Code standards a~d reauirements.
All repairs, replacements or maintenance to the
structure or dwellin~ unit shall conform to the
~rroundin~ buildino materials and ~eneral
aDDearance of the existin~ area.
All owners of rental dwellings shall provide
telephone access numberfs) to be used in
emerqe~cv situations, includino emergency
~aSntenance and repair. This reauirement shall
be a ¢oDdition precedent to the issuance of any
rental license.
section 2: Door and Window Locks
5A. 202 (1)
No person shall occupy as an owner-occupant or let to
another for occupancy any dwelling or dwelling unit for
the purpose of living, sleeping, cooking or eating
unless all exterior doors of the dwelling or dwelling
unit are equipped with safe and functioning door and
window locks which comply with the following
requirements, to-wit:
(a)
When access to a dwelling unit door is gained
through a common corridor or entrance in a
dwelling in which four (4) or more dwelling units
share a common entrance or corridor, an approved
security system shall be maintained for each
multiple family building to control access. The
security system shall consist of locked building
entrance or foyer doors, and locked doors leading
from the hallways into individual dwelling units.
D~ad-latch type door locks shall be provided with
releasable lever knobs (or doorknobs) on the
inside of building entrance doors and with key
cylinders on the outside ofthe building entrance
doors. Building entrance door-latches shall be
of the type that are permanently locked. An
approved lock box with buildin~ entry kev. boiler
room ~ev. laundry and common area keys. all
marked individuaily accessible to the Fire
Department must be provided for access to the
building. They enumerated keys must be pFesent
in the lock box at all times. A communication
system or device such as an intercom, telephone.
audible bell or buzzer or other aD,roved means
~akina contact with the tenants must be~rovided.
Every door that provides ingress or egress for a
dwellingunit within a ~ultiple family unit shall
be equipped with an approved lock that has a dead
locking bolt that cannot be retracted by end
pressure; provided, however, that euch doors
shall beopenable from the inside without~he use
of a key or any epecial knowledge or effort.
All inaress, earess and interior doors shall be
kept free of holes and/or punctures.
Section 3:
5~.203([)
Light, Ventilation and Electric
No person aha11 occupy as an owner-occupant or let to
another for occupancy any dwelling or dwelling unit for
the purpose of living, sleeping, cooking or eating
therein which does not comply with the following
requirements, to-wit:
(a) Habitable Room Ventilation. Every habitable room
shall have at least one window facing directly
outdoors which can be easily opened unless the
room contains, in lieu thereof, another device
affording ventilation which has been approved by
the Building Official. The minimum tOtal of
openable window area in every habitable room
shall be the greater of four percent (4%) of the
floor area of the room or four (4) square feet.
(b) Sleeping Room Earess. SleeDina rooms in
buildinas existina prior to this code must have
window or door oDeninos for earess of no less
than four [4) sauare feet or the minimum size
reauired by the Buildina Code in effect when the
dwellina was constructed. Space that is added on
or converted to sleeDina rooms must meet the
applicable codes at the time of conversion for
habitable rooms and provide a means of earess
with oDenable area of no less than 5.7 eauare
(c) No,habitable Room Ventilation. Every bathroom,
water closet compartment, laundry room, utility
room, or other nonhabitable room shall contain a
minimum total of openable window area ~
than 1.5 square feet, except that no windows
shall be required if such rooms are equipped with
a functioning ventilation system which is
9
(d)
approved by the Building Official.
Electrical Service, Outlets and Fixtures. Every
dwelling unit and all public and common areas
shall be supplied with functioning electrical
service, functioning overcurrent protection
devices, functioning electrical outlets, and
functioning electrical fixtures which are
properly installed, which shall be maintained in
a safe working condition and which shall be
connected to a source of electric power in a
manner prescribed by $6.201(1). The minimum
capacity of such electric service and the minimum
number of electric outlets and fixtures shall be
as follows:
A dwelling containing two or more units
shall have at least the equivalent of sixty
(60) ampere, three-wire electric service per
dwelling unit.
(ii)
Each dwelling unit shall have at least one
branch electric circuit for each six hundred
(600) feet of dwelling unit floor area.
(iii)
Every habitable room shall have at least the
lessor of two floor or wall type electric
convenience outlets or one such outlet for
each sixty (60) square feet of fraction
thereof of total floor area; provided,
however, the one ceiling or wall-type light
fixture may be substituted for one required
electric outlet.
(iv)
(v)
Every water closet compartment, bathroom,
kitchen, laundry room, and furnace room
shall contain at least one supplied ceiling
or wall-type electric light fixture, and
every bathroom, kitchen, and laundry room
shall contain at least one electric
convenience outlet.
Every public hall and stairway in every
rental dwelling shall be effectively
illuminated by natural or electric light at
all times. In structures containing not
more than two dwelling units, conveniently
located functioning light switches
controlling an adequate functioning lighting
system which may be turned on when needed
may be substituted for full-time lighting.
10
Section
5A.204(1)
Section 5:
5A.205(1)
MinimumThermal Standards
No person ehall occupy as an owner-occupant or let to
another for occupancy any dwelling or dwelling unit,
for the purpose of living, sleeping, cooking or sating
therein unless euch dwelling or dwelling unit ehall
have heating facilities which are properly installed
and maintained in aafe and functioning condition, which
are capable of eafely heating all habitable rooms,
bathrooms and water closet compartments in every
dwelling unit located therein to a temperative of at
least seventy (70) degrees Fahrenheit at a dietance of
three (3) feet above floor level and at three (3) feet
from exterior walls, and which shall comply with the
following requirements, to-wit:
(a)
Gas or electrical appliance designed primarily
for cooking or water heating purposes shall not
be considered as heating facilities within the
meaning of this section.
(b)
Portable heating equipment employing flame or the
use of liquid fuel ehall not be considered as
heating facilities within the meaning of this
section and is prohibited.
(c)
No owner or occupant shall install, operate or
use a space heater employing a flame that is not
vented outside the structure in an approved
manner.
(c)
No owner shall supply portable electric heaters
to comply with this S5.204(1).
Foundation, Exterior Walls, and Roofs
No person shall occupy as an owner-occupant or let to
another for occupancy any dwelling or dwelling unit for
the purpose of living, sleeping, eating or cooking
therein which does not comply with the following
requirements, to-wit:
(a)
The foundation, exterior walls and exterior roof
ehallbewater tight and protected against vermin
and rodents and shall be kept in sound condition
and repair. The foundation element shall
adequately support the building at all points.
Every exterior wall shall be free of structural
deterioration or any other condition which might
admit rain or dampness to the interior portion of
the walls or to the interior spaces of the
dwelling. The roof shall be tight and have no
11
(b)
(c)
(d)
(e)
defects which admit rain or roof drainage and
shall be adequate to prevent rain water from
causing dampness in the walls. All exterior
surfaces, other than decay resistant materials,
shall be covered by paint or other protective
covering or treatment which protects the exterior
surfaces from elements and decay in a functioning
manner. If 25% or more of the total exterior
surface of the pointing of any brick, block or
stone wall is loose or has fallen out, the
surface shall be protected as heretofore
provided.
Windows, Doors and Screens. Every window,
exterior door and hatchway shall be tight and
shall be kept in repair. Every window other than
fixed window shall be capable of being easily
opened and shall be equipped with screens between
May i and September 30, inclusive, of each year.
Every window, door and frame shall be constructed
and maintained in such relation to the adjacent
wall construction as to completely exclude rain,
vermin, rodents, and insects from entering the
building.
Floors, Interior Walls and Ceilings. Every
floor, interior wall and ceiling shall be
protected against the passage and harborage of
vermin and rodents and shall be kept ih sound
condition and good repair. Every floor shall be
free of loose, warped, protruding or rotted
flooring materials. Every interior wall and
ceiling shall be maintained in a tight
weatherproof condition and may not be covered
wholly or partially by toxic paint or materials
with a lasting toxic effect. Every toilet room
and bathroom floor surface shall be capable of
being easily maintained in a clean state.
Rodent Proof. Each part of every dwelling shall
be rodent resistant. All openings in exterior
walls, foundations, basements, ground or first
floors or roofs which have an opening of %"
diameter or larger shall be rodent-proofed in an
approved manner. Interior floors, basements,
cellars and other areas in contact with the soil
shall be enclosed with concrete or other rodent
impervious material.
Fence Maintenance. All fences on the premises
where the dwelling or dwelling unit is located
shall be maintained in accordance with ~6.401 to
12
(f)
(g)
(h)
S6.403, inclusive, of this City Code.
Accessory Structure Naintenance. Accessory
structures on the premises where the dwelling or
dwelling unit is located shall be structurally
sound and Baintained in good repair. The
exterior of such structures shall be covered with
decay-resistant materials such as paint or other
preservatives.
Safe Building Elements. Every foundation, roof,
floor, exterior wall, interior wall, ceiling,
inside stair, outside stair, porch, balcony and
every appurtenance to each of the foregoing shall
be safe to use and capable of supporting normal
structural loads.
Facilities to Function. All equipment,
utilities, chimney and flue required under City
Code shall function effectively in a safe, ~ound
and working condition.
Section
SA. ~06
SA.206(2)
Section 7:
SA. 207 (1)
Maximum Density and Minimum Space for Rental Units
No person shall rent or let to another for occupancy
any rental dwelling for the purpose of living,
sleeping, eating or cooking therein which does not
comply with the following requirements, to-wit:
(a)
Permissible Occupancy of Dwelling Unit. The
maximum permissible occupancy of any rental
dwelling unit shall be determined as follows:
(i)
For the first occupant, 150 square feet of
habitable room floor space and for every
additional occupant thereof, at least 100
square feet of habitable room floor space.
(ii)
In no event shall the total number of
occupants exceed two times the nu-~er of
habitable rooms, less kitchen, in the
dwelling unit.
No person shall occupy as an owner-occupant or let to
another for occupancy any dwelling unit for occupancy
by more than one family, other than for temporary
quests.
Screening and Landscaping
No person shall occupy as an owner-occupant or let to
13
another for occupancy any dwelling or dwelling unit for
the purpose of living, sleeping, eating or cooking
therein which does not comply with the requirements of
this S5A.207.
(a) Definitions. For the purposes of this Section,
the following terms shall have the meanings
stated:
(i)
Fence. Any partition, structure, wall, or
gate erected as a divided marker, barrier,
or enclosure, and located along the boundary
or within the required yard.
(ii)
Landscape. Site amenities, including trees,
shrubs, ground covers, flowers, fencing,
berms, retaining walls, and other outdoor
finishings.
(iii)
Mechanical Equipment. Heating, ventilation,
exhaust, air conditioning, and communication
units integral to and located on top beside,
or adjacent to a building.
(iv)
Retaining Wall. A wall or structure
constructed of stone, concrete, wood, or
other materials, used to retain soil, as a
slope transition, or edge of a plating area.
(v)
Screening. A barrier which blocks al'l views
from public roads and differing land uses to
off-street parking areas, loading areas,
service and utility areas, and mechanical
equipment.
(b)
Every yard of any premises on which a dwelling or
dwelling unit is located shall have installed and
maintained landscaping in accordance with the
provisions of this section.
(i)
Sodding and Ground Cover. All exposed
ground area surrounding the principle
building and accessory buildings, which are
not devoted to driveways, parking areas,
sidewalks, or patios, shall be sodded or
landscaped with shrubs, trees, gardens, or
other ornamental landscape materials. No
landscaped area shall be used for the
parking of vehicles or storage or display of
materials, supplies or merchandise.
(ii) Slopes and Berms. Final grades with a slope
14
(iii]
ratio of greater than three (3) to one (1)
will not be permitted without special
approved treatment such as special seed
mixtures or reforestation, terracing, or
retaining walls. Berming used to provide
required screening of parking lots and other
open areas shall not have slopes in excess
of three ¢2) to one {1).
Maintenance. Any dead trees, shrubs, ground
covers, and sodding shall be replaced in
accordance with this Code. All trees or
other veaetation which s~rina up in crevices
bv foundations must be Dromotlv removed to
avoid structural damaae.
(iv)
Placement of Plant Materials. No
landscaping shall be allowed within any
drainage utility easements, road right-of-
way, or immediately adjacent to any driveway
or road intersection if such landscaping
would interfere with a motorist's view of
the street or roadway or with the use of the
easement for its intended purpose.
fy)
Weeds. The maintenance and uPkeeP of all
lawns and yards shall be subject to Chapter
4- Article II. Section 3 of the Columbia
Heiahts City Code. which is incorporated
herein bv reference.
(c)
General Screening. All loading, service utility,
mechanical equipment, and outdoor storage areas,
includina dum~sters and refuse containers for
dwellings of three (2) or more units shall be
screened from all public roads and adjacent
differing land uses. Ail parking lots for
dwellings of three (3) or more units if the
property on which the lot is located abuts a
differing land use and is not separated from the
differing land use by a public street, roadway or
alley shall · screened from adjacent differing
land uses. Screening shall consist of any
combination of the earth mounds, walls, fences,
shrubs, compact evergreen trees, or dense
deciduous hedge ail (6) feet in height. Hedge
materials ~ust be at least three (3) feet in
height, and trees must be at least six (6) feet
in height at planting. The height and depth of
the screening shall beconsistant with the height
and size of the area for which screening is
required. When natural materials, such as trees
15
Section 8:
5A. 208 (1)
or hedges, are used to meet the screening
requirements of this sub-section, density and
species of planting shall be such to achieve
seventy-five (75) percent capacity year-round.
(d)
Other Parking Lot Screening. All parking lots
for dwellings of three (3) or more units which
are not required to be screened pursuant to
SSA.207(1)(c) must either provide screening
pursuant to SSA.207(1)(c) or provide a minimum of
one deciduous tree for every forty-five (45) feet
or portion thereof of parking lot perimeter
planted adjacent to the nearest roadway abutting
the property on which the parking lot is located.
(e)
Fences. A~; fences and screenina devices shall
be built and regulated in accordance with Chapter
6, Article IV of the Columbia Heiqhts City Code.
which is incorporated herein by reference.
(f)
Outside ~tgraae of articles, eauiDment.
construction materials, items not desiqned for
exterior use and miscellaneous items includina
but Dot limited to lawn mowers ~nd other lawn
maintenance equipment shall not be allowed. A
weathertiaht, rodent-proof storaae buildina or
shed must be constructed $or storaae of items not
~toreable within the buildina.
(g)
Variances under ~5A.207 shall be enforced and
administered in accordance with ~5A.205(2).
Exterior Parking, Pedestrian Walkways and Lighting
No person shall occupy as an owner-occupant or let to
another for occupancy and dwelling or dwelling unit for
the purposes of living, sleeping, cooking or eating
therein which is located on premises which does not
comply with the following requirements, to-wit:
(a)
O~e accessible parking space must beprovided for
each dwelling unit.
(b)
The required parking space must have a minimum
width of 9 feet and a minimum length of 20 feet.
(c) All required parking spaces must be surfaced with
asphalt or concrete.
(d) Curb guards and/or guardrails must be provided
for parking spaces situated above retaining
walls.
16
5A.208(2)
Section 9:
5A.209(1)
(e)
(g)
An unobstructed path Bust be provided between
parking areas and the dwelling unit.
Lighting Bust be provided for parking areas and
walkways between the- parking area and the
dwelling unit in dwellings consisting of three
(3) or Bore units. Lighting Bust be available
for parking areas and walkways between the
parking area and the dwelling unit for dwellings
of two (2) or less units.
In dwellings of three (3) or Bore units, parking
areas and pedestrian walkways Bust have a minimum
light of 1 foot candle, and the Baximum light at
the boundary line of the premises Bay not axceed
3 foot candles.
(h)
Driveways leadina to Darkina areas and/or access
ways to buildinas must be maintained and kept in
good repair. In cases of tenant Darkina areas
all Darkina stalls and driveways with access to
tenant Darkina shall be hard surfaced with
asphalt or concrete bv July 1. 1999.
Commercial Vehicles and Junk Cars. Commercial
Vehicles and ~unk cars shall be reaulated in
accordance with Chapter 7. Article II. Section 5
of the Col-mbia Heiahts City Code. which is
incorporated herein by reference.
Variances under ~5A.207 and ~5A.208 shall be enforced
and administered in accordance with ~9.105. The
criteria contained in ~9.105(3)(d) shall be applied in
deciding whether or not an applicant is entitled to a
variance.
Fire Safety
No person shall occupy as an owner-occupant or let to
another for occupancy and dwelling or dwellingunit for
the purposes of living, sleeping, cooking or .eating
therein which does not comply with the following
requirements, to-wit:
(a)
Every existing dwelling unit shall be provided
with moke detectors conforming to U.B.C.
Standard No. 43-6. Detectors shall beBounted on
the ceiling or wall at a point centrally located
in the corridor or area giving access to rooms
used for sleeping purposes. Where sleeping rooms
are on an upper level, the detectors shall be
placed at the center of the ceiling directly
17
above the stairway. All detectors shall be
located in accordance with approved
manufacturer's instructions. When actuated, the
detector shall provide an alarm in the dwelling
unit or quest room.
(b)
In new construction of any dwelling unit and in
common hallways and other common areas of
existing units, required smoke detectors shall
receive their primary power from the building
wiring when such wiring is served from a
commercial source. Wiring shall be permanent and
without a disconnecting switch other than those
required for overcurrent protection.
¢c)
No person, firm, Or corporation shall tamper with
any smoke ~%~ctioD ~evice. Any person, firm. or
~orDoratioD Droven to have tampered with any
~moke d~t~ction device shall bv auiltv of a betty
misdemeanor, and UDOD conviction thereof, shall
be sub4ect to a fide of not more than two hundred
{S200.00) dollars.
Section 10: Discontinuance of Service or Facilities
5A.210(1~
No owner, operator or occupant shall cause any service.
Sacil~t¥ equSpment or utility which is reauired under
this Ordinance.tO be Femoved Srom or shut off from or
discontinued Sot any occupied dwe115n~ or dwellin~ unit
except ~0r temporary interruptions as may be necessary
yhile actua~ F~paSrs or alterations are made or durin~
temmorarv emergencies.
Section 11: Public Health and Safety
5A.211(1)
~odent ~arbora~es Prohibited in Occupied Areas. No
occupant of a dwell.$n~ or dwellin~ unit shall
accumulate boxes, lumber, scrap metal, or any other
~imilar materials in such a manner that may Provide a
rodent ~arbora~e in or about any dwellinu or dwell$~
unit~
5A.211(2)
Rodent Harboraaes Prohibited in PublicAreas. No owner
of a dwellina containina two or more dwellina un,ts
9hall accumulate or Dermit the accumulation of boxes.
lumber, scrap metal or any other similar m~teria~s in
such a manner that may provide a rodent habora~e in or
about shared or public areas of a dwellina or its
5A.211(3)
Prevention ~f Food for Rodents. NO owner or occupant
~f a dwe%linq or dwellina unit shall store, Dlace. or
18
ARTICLE
Section
:
A.301(1)
Section 2:
allow to accumulate any materials that may serve as
food for rodents in a site accessible to rodents.
Sanitary Maintenance of Fixtures and Facilities. Every
QccuDant of a dwellina unit shall keep all euDDlied
fixtures and facilities therein in a clean and sanitary
condition and shall be responsible for the exercise ox
reasonable care in the proper use and operation
Responsibility for Pest Extermination. Every occupant
of a dwellina containina a sinale dwellina unit shall
~ responsible for the extermination of vermin
infestations and/or rodents on the premises. Every
QCcuDant of a dwellina unit in a dwellina containina
more than one dwellina unit shall be responsible for
such extermination whenever his/her dwellina unit is
the only one infested. Notwithstandina. however.
whenever infestation is caused by the failure of the
9w~er to maintain a dwellina in a reasonable rodent-
proof or reasonable vermin-proof condition.
extermination shall be the responsibility of the owner.
Whenever infestation exists in two or more of the
dwellina units in any dwellina, or in the shared or
public Darts of any dwellina containina two or more
~wellina units, extermination thereof shall be the
responsibility of the owner. Proof of professional
extermination mhall be SuDDlied to the inspections
Qfficer UDOn reauest.
~arbaae. Rubbish and Recvclable Materials. Garbaae.
rubbish, and recvclable materials shall bereaulated in
~ccordance w~th ~haDter 8. Article III of the Columbia
Heiahts City Code. which is incorporated herein by
III Inspection and Enforcement
Enforcement and Inspection Authority
The Cit] Manager and his/her designated agents shall be
the Enforcement Official who shall administer and
enforce the provisions of the Ordinance. Inspections
shall be conducted during reasonable hours, and, upon
request, the ~nforcement Official shall present
evidence of his/her official capacity to the owner,
occupant or person in charge of a dwelling unit sought
to be inspected.
Inspection Access
19
5A.302(1)
~A. 302 (2)
If an owner, occupant or other person in charge of a
dwelling, dwelling unit or of a multiple dwelling fails
or refuses to permit free access and entry to the
structure or premises, or any part thereof, for an
inspection authorized by this Ordinance, the
~f~Lg_~D_%Official may, upon a showing that probable
cause exists for the inspection or for the issuance of
an order directing compliance with the inspection
requirements of this section with respect to such
dwelling, dwelling unit or multiple dwelling, petition
and obtain an order to inspect and/or search warrant
from court of competent jurisdiction.
Each dwelliDq 9r multiple dwellina which is the subdect
of a rental license ~h~l be inspected at least once
annually, however e~ch individual dwellina unit shall
be inspected up0D a chan~e of tenant. It shall be the
responsibility of the owner of the dwellin~ to notify
the City 9~ amy tenaD~ ~an~es and schedule the
~pprgpFiate inspections. Failure of the owner to notify
the city. or ~chedule the NeuuiFed insmections, shall
be arounds for revocation of the owners rental license.
Section 3:
5A. 303 (1)
Compliance Order
Whenever the Enforcement Official determines that any
dwelling, dwelling unit or the premises surrounding any
of these fails to meet the provisions of this
Ordinance, he/she may issue a Compliance Order setting
forth the violations of the Ordinance and ordering the
owner, occupant, operator or agent to correct such
violations. The Compliance Order shall:
(a) Be in writing;
(b) Describe the location and nature of the
violations of this Code;
(c)
Establish a reasonable time not greater than 6
months for the correction of such violation and
advise the person to whom the notice is directed
of the right to appeal; and
(d)
Be served upon the owner of his/her agent or the
occupant, .as the case may require. Such notice
shall be deemed to be properly served upon such
owner or agent, or upon such occupant, if a copy
thereof is:
(i) Served upon him/her personally,
20
Section
SA. 304 (1)
Section 5:
SA. 305 (3.)
Section 6:
SA.306(1)
:
Article IV
(ii)
(iii)
Sent by certified mail return receipt
requested to hiS/her last known address, or
Upon failure to effect notice through (i)
and (ii) as set out in this section, posted
at a conspicuous: place in or about the
dwelling which is affected by the notice.
Posting to Prevent Occupancy
The ~ Official may post any building or
structure covered by this Ordinance as being in direct
violation of the Ordnance preventing further occupancy.
Posting will occur if any owner, agent, licensee or
other responsible person has been notified by
inspection report of the items which must becorracted
within a certain stated period of time and that the
corrections have not been made. Current occupants
shall have not more than 60 days to vacate a posted
property. Current occupants shall vacate posted
property immediately if auch occupancy will cause
imminent danger to the health or aafety of the
occupants. No person, other than the Enforcement
Official or his representative, shall remove or tamper
with any placard used for posting. No person shall
reside in , occupy or cause to be occupied any
building, structure or dwelling which has been posted
to prevent occupancy.
Right of Appeal
When a person to whom a Compliance Order is directed
alleges that such Compliance Order is based upon
erroneous interpretation of the Ordnance or upon a
misstatement or mistake of fact, such person may appeal
as set forth in S6.202(1).
Board of Appeals
Upon at least five (5) business days notice to the
appellant of the time and place for hearing the appeal
and within 30 days after said appeal is filed, the
Board of Appeals shall hold a hearing thereon. All
hearing notices shall be given in the same manner
prescribed for giving notice of Compliance Orders under
S5A.303(1). All appeals mhall be =ondu=tad in
accordance wit/i Bec. 203, Uniform Housing Code, 1985
edition, International Conference of Building
Officials.
Licensing
21
Section 1:
5A.401(1)
Section 2:
5A. 402 (1)
License Required
No person, firm or corporation shall operate a rental
dwelling in the City without having first obtained a
license as hereinafter provided from the Building
Official. Each such license shall register annually
with the ~. If the license is denied, no occupancy
of dwelling units then vacant or which become vacant is
permitted until a license has been issued. Apartment
units within an unlicensed apartment building for which
a license application has been made and which units are
in compliance with this Chapter 5A and with S6.202(1)
may be occupied provided that the unlicensed units
within the apartment building do not create a hazard to
the health and safety of persons in occupied units.
License Procedures
Within 180 days after the passage of Chapter SA, the
owner of any rental unit within the City shall apply to
the Building Official for a rental housing license in
the manner hereafter prescribed.
(a)
Application shall be made on forms provided by
the City and accompanied by the initial fee in an
amount set by resolution of the City Council.
The owner of an apartment building or rental home
constructed after the date of passage of this
Ordinance shall obtain a license prior to. actual
occupancy of any rental unit therein.
(b)
Applicants shall provide the
information on license applications:
following
(i)
Name and address of owner of the rental
dwelling and the name and address of the
operator or agent actively managing said
rental dwelling.
(iv)
The name and address of the vendee if the
rental dwelling is being sold on a contract
for deed.
(iii)
The legal description and address of the
rental dwelling.
(iv)
The number and kind of units within the
rental dwelling, the floor area for each
such unit and the total floor area of the
building.
22
(v)
The number of toilet and bath facilities
shared by the occupants of two or more
dwelling units.
(vi)
A descr£ption of the type of construction of
the exterior of the building.
{vii)
The number of paved off-street parking
spaces available.
(viii)
(ix)
Name and address of person to whom
owner/applicant wishes a certified letter to
be sent for purposes of SSA.303(1)(d).
Such other information as the administrative
service shall require.
Failure to complete, in full. the reauired
license application shall be arounds for denial
of the license.
Section 3: Application and Inspection
5A.403 (~.)
Upon receipt of a properly executed application for a
rental housing license, the City Hanager shall cause an
inspection to be made of the premises to insure that
the structure is in compliance with the requirements of
the Code.
Section 4:
SA. 404 (1)
Issuance of Rental Housing License
If the rental dwelling is in compliance with the
requirements of the Code, a license shall be issued to
the present owner, occupant or agent which shall state
that the structure has been inspected and is in
compliance with the requirements of the Code. The
present owner or any agent designated by the present
owner or occupant shall obtain a license. If the City
finds that the circumstances of occupancy following the
issuance of the license involve possible Code
violations, substandard maintenance or abnormal wear
and tear, the City may again inspect the premises
during the licensing period.
The city may bv Council resolution establish a
rvinsoection fee. If a dwellinaunit is not currentlv
licens~d, no license may be issued
QU~standina reinsDection fees shall have been paid. If
a dW~11ina unit is licensed, the license for such
dwellina unit shall expire twenty f20~ days after the
licensee or his aaent is notified of the outstandina
r~insDection fees. unless payment is made before the
23
Section 5:
5A.405 (1)
Se'ction 6:
5A.406 (1)
Section 7:
5A. 407 (1)
Section 8:
5A.408 (1)
· 5A.408 f2)
expiration of the twenty f20) day period.
License Display
A license issued under -this Chapter shall be
conspicuously displayed on the rental premises wherever
feasible. The licensee shall promptly produce the
license upon demand of a prospective tenant or the
Building Official or his/her authorized representative.
License Transfer
The license is transferable upon application to the
Building Official and payment of the license transfer
fee by the prospective owner if the licensed premises
is in compliance with the Code. The license shall
terminate if renewal or application for transfer is not
made within 30 days after transfer of ownership of the
dwelling unit. The amount of the transfer fee shall be
set by resolution of the Council.
License Renewal
Renewal of the license as required annually by this
Code may be made by filling out the required renewal
form furnished by the Building Official to the owner,
operator or agent of a rental dwelling and by mailing
the form together with the required registration fee to
the building official. Such renewal or registration
may be made only when no change in the ownership,
operation, agency or type of occupancy as originally
licensed has been made and where there has been an
inspection within the last two years.
Suspension or Revocation
A license issued or renewed under this section may be
revoked or suspended upon a finding of noncompliance
with the provisions of this Chapter. Reinstatement of
a suspended license shall be accompanied by an amount
equal to 50% of the license fee. Issuance of a new
license after suspension or revocation shall be made in
the manner provided for obtaining an initial license.
The Council ~av. for cause, revoke or suspend a
license, or take other action restrictina the
privileaes of a license subiect to the following
Ne~uirements:
Ca~
The City, through its eDf~rcement officer, shall
provide %be licensee with a written ~tatement of
reasons or causes:for the proposed Council action
24
toaether with a notice for public hearina.
The council shall conduct a public hearina on the
PrOPOsed action and provide findinas of fact and
Citations to any ordinances or reaulations that
bare been violated, toaether with a etatement o~
action taken and the conditions of any resultin~
revocation suspension, or other action
restrictina the Drivileaes of the licensee.
fc)
The enforcement officer shall forward the
~indinas and statement of action taken to the
person in whose name said license was issued by
mailina the same to the ~ailina address indicated
on the license aoDlication.
A violation of any provision of this chamfer or of
state law. Drescribina standards of ~onduct or
reaulations aovernina a licensee: the particular tvDe
Of business or co~mercial activity or trade os
occupation that is licensed: or the Dr~m~ses where the
licensed activity is conducted: shall be a prima facie
showina of cause for revocation, suspension, or other
action restrictina the Drivileaes of a licensee as the
¢9~ncil may determine.
Nondisclosure. misrepresentation or misstatement of a
material fact in any application for a license under
~his chapter shall be a prima £acie showina of cause
for revocation, suspension, or other such action
restr~ctina the Drivile~es of a licensee as the Council
may determine.
Section 9:
5A.409(1)
License Fees
License fees, inspection fees, and reinspection fees
shall be established by Council resolution.
Section 10: Conduct on Licensed Premises
5A.410(1)
It shall be the responsibility of the licensee to take
appropriate action following conduct by persons
occupying the premises which is determined to be
disorderly, ~n violation of any of the following
statutes or ordinances:
(a) Minn. Stat. 5S 609.75 through 609.76, which
prohibit gambling;
(b) Minn. Stat. ~ 609.321 ~hrough 609.324 which
prohibit prostitution and acts relating thereto~
25
5A.410(2)
5A.410 (3)
5A.410(4)
(c) Minn. Stat. SS 152.01 through 152.025, and
S152.027, subds. I and 2, which prohibit the unlawful
sale or possession of controlled substances;
(d) Minn. Stat. S 340A.401, which prohibits
unlawful sale of alcoholic beverages;
the
(e) Minn. Stat. S 609.33, which prohibits owning,
leasing, operating, managing, maintaining, or
conducting a disorderly house or inviting or attempting
to invite others to visit or remain in a disorderly
house;
(f) Section 10.312 of this code, which prohibits noisy
assemblies;
(g) Minn. Stat. ~ 97B.021, 97B.045, 609.66 through
609.67 and 624.712 through 624.716, and section 10.307
of this code, which prohibit the unlawful possession,
transportation, sale or use of a weapon; or
(h) Minn. Stat. ~ 609.72, which prohibits disorderly
conduct.
The Police Chief (Department) shall be responsible for
enforcement and administration of this section.
Upon determination by the Police Chief (Department)
that a licensed premises was used in a disorderly
manner, as described in section (1), the Police Chief
(Department) shall notify the licensee by mail of the
violation and direct the licensee to take steps to
prevent further violations.
If another instance of disorderly use of the licensed
premises occurs within twelve (12) months of an
incident for ~hich a notice in subsection (3) was
given, the Police Chief (Department) shall notify the
licensee by mail of the violation and shall also
require the licensee to submit a written report of the
actions taken, and proposed to be taken, by the
licensee to prevent further disorderly use of the
premises. This written report shall be submitted to
the Police Chief (Department) within five (5) days of
receipt of the notice of disorderly use ofthe premises
and shall detail all actions taken by the licensee in
response to all notices of disorderly use of the
premises within the preceding twelve (12) months. If
the licensee fails to comply with the requirements of
this subsection, the rental dwelling license for the
premises may be denied, revoked, suspended, or not
renewed. An action to deny, revoke, suspend, or not
26
5A.410(5)
5.4~.o(6)
5A.410(7)
Article V
Section 1:
renew a license under this section shall be initiated
(Department) in ~he manner aescrlnea an ~w~,~
SA. 408 ( 1), end shall proceed according to the
procedures established in sections 5.102 and 5. 104.
If another instance of disorderly use of the licensed
premises occurs within twelve (12) months after any two
(2) previous instances of disorderly use for which
notices were sent to the licensee pursuant to this
section, the rental dwelling license for the premises
may bedenied, revoked, suspended, or not renewed. An
action to deny, revoke, suspend, or not renew a license
under this section shall be initiated by the City
Council at the request of the Police Chief (Department)
in the manner described in section 5A.408(1), and shall
proceed according to the procedures established and
sections 5.102 and 5.104.
No adverse license action shall be imposed where the
instance of disorderly use of a licensed premises
occurred during the pendency of eviction proceedings
(unlawful detainer) or within thirty (30) days of
notice given by the licensee to a tenant to vacate the
premises, where the disorderly use was related to
conduct by that tenant or by other occupants or guests
of the tenant's unit. Eviction proceedings shall not
be a bar to adverse license action, however, unless
they are diligently pursued by the licensee. Further,
an action to deny, revoke, suspend, or not renew a
license based upon violations of this section may be
postponed or discontinued at any time if it appears
that the licensee has taken appropriate measures which
will prevent further instances of disorderly use.
A determination that the licensed premises has been
used in a disorderly manner as described in subsection
(1) shall be~ade upon substantial evidence to support
such a determination. It shall not be necessary that
criminal charges b e brought to support a determination
of disorderly use, nor shall the fact of dismissal or
acquittal of criminal charges operate es a .bar to
adverse license action under this section.
Remedies
Hazardous Building Declaration
5A.50~(~)
In the event that a dwelling has been declared unfit
for human habitation and the owner has not remedied the
effects within a prescribed reasonable time, the
27
dwelling may be declared a hazardous building and
treated in accordance with the provisions of Minnesota
Statutes.
Section 2: Secure Unfit and Vacated Dwellings
5A. 502 (1)
The owner of any dwelling or dwelling unit which has
been declared unfit for human habitation or which is
otherwise vacant for a period of 60 days or more shall
make the same safe and secure so that it is not
hazardous to the health, safety and welfare of the
public and does not constitute a public nuisance. Any
vacant dwelling open at the doors, windows or other
wall openings, if unguarded, shall be deemed to be a
hazard to the health, safety and welfare of the public
and shall constitute a public nuisance within the
meaning of this Code.
Section 3: Failure to Comply
5A. 503 (1)
Section 4:
Upon failure to comply with a Compliance Order within
the time set therein, and no appeal having been taken,
or upon failure to comply with a modified Compliance
Order within the time set therein, the criminal penalty
established hereunder notwithstanding, the City
Council, after due notice to the owner, may by
resolution declare the condition to constitute a public
nuisance and cause the cited deficiency to be remedied
as set forth in the Compliance Order. The cost of such
remedy shall be a lien against the subject real estate
and may be levied and collected as a special assessment
in accordance with Minnesota Statutes Chapter 429, for
abatement of nuisances and specifically for the removal
or elimination of public health or safety hazards from
private property. Any assessment levied thereunder
shall be payable in a single installment. The intent
of this section is to authorize the City to utilize all
of the provisions of this Code and of Minnesota law to
protect the public's health, safety and general
welfare.
Remedie~ Cumulative
5A. 504 (1)
Any remedies pursued under this S5.501 to 5A.503,
inclusive, are in addition to the remedies or penalties
prescribed under S5A.$01 to 5A.611, inclusive.
Article VI Penalties
5A.601
No person, firm, corporation, or licensee shall own and
maintain or operate or rent to any other person for
occupancy any rental dwelling, rental dwelling unit, or
28
5~.602
5A.603
5A.604
5A.605
5A.606
5A. 607
5A.608
5A.609
5A.610
5A.611
premises in which a rental dwellinqunit is located in
violation of Chapter SA, Article II ($5A.201, et.
seq.), maintenance standard.
No person, firm or corporation shall operate a rental
dwelling or dwelling unit without a license issued
pursuant tot his Chapter or accept rental payments from
a tenant of any unlicensed dwelling or dwelling unit
which payment is for occupancy for a period during
which the dwelling or dwelling unit is not license
pursuant to this Chapter.
No person, firm', corporation or licensee shall refuse
or fail to allow the Building Official to enter a
dwelling or dwelling unit for purposes of inspection
when authorized by this Chapter.
No person, firm, corporation or licensee shall fail or
refuse to obey a Compliance.Order validly issued under
this Code.
No person, firm or corporation shall give or
false information on a license application
renewal thereof.
submit
or any
No person who is an occupant of a rental dwelling or
rental dwelling unit shall cause a rental dwelling,
rental dwellingunit or the premises on which a rental
dwelling unit is located to become in violation of any
of.the maintenance standards set forth in Chapter SA,
Article II (SSA.201, et. seq.), normal wear and tear
excepted.
No person shall occupy an unlicensed dwelling or
dwelling unit if such dwelling unit is required to be
licensedunder this Chapter.
No occupant of any rental dwelling or rental dwelling
unit shall fail to allow or refuse entry to the
Building Official for purposes of inspection when
authorized by this Code.
No person may occupy a dwelling or property posted
pursuant to S5A.304.
No person, firm or corporation, including an owner,
licensee or occupant, shall remove or tamper with a
placard used for posting property pursuant to this
Chapter.
Any person, firm or corporation who violates or refused
~O-COmDlv with any of the provisions of this Chapter is
29
auiltv o~ ~ misdemeanor, unless herein sDecificallv
noted. Upon ¢o~victio~ 9f sa~d ~isdemeanor they shall
be subject to a fine of not more than seven hundred
dollars ($700.00) or to imprisonment not to exceed
ninety (90) days, or both, for each offense. Each day
that a violation exists sh~ll constitute a separate
offense.
SECTION 2:
This ordinance shall be in full force and effect from
and after thirty (30) days after its passage.
First Reading:
Second Reading:
Date of Passage:
December 13. 1993
Offered by:
Seconded by:
Roll Call:
Donald J. Murzyn, Jr., Mayor
Jo-Anne Student, Council Secretary
3O
minnesot,~[~
MULTI
Minneso~ Multi Housing Asscx~ation
~tandard Fo~m Residential Lease
REVISED JULY '9t
RESIDENTIAL LEASE
THE MINNESOTA ATTORNEY GENERAL'S OFFICE HAS
CERTIFIED THAT THIS LEASE COMPLIES WITH THE
MINNESOTA PLAIN LANGUAGE CONTRACT ACT
(Minnesota Statutes, Secaons 325G.29-325G.36). Certification of a con-
tract by the Attorney General under the plain language contract act is
not o~'~vise an approval of the contract's legality or legal effect.
MULTI
RESIDENT': (list all persons who will live in the Apartment)
MANAGEMENT: (Enter company name if ~pplicable)
STREET ADDRESS OF PREMISES ("Apartment")
APARTMENT NO. DURATION OF LEASE (enter number of months or month-to-month)
STARTING DATE OF LEASE DATE THIS LEASE ENDS (if appropriate)
NOTICE PERIOD (The NOTICE PERIOD is one full month unless thi~ase states a different ~ period)
MONTHLY APARTMENT RENT S _,~_~. ' SERVICE CHARGE S.
(e.g., garage) S ~~ .....
OTHER
MONTHLY
TOTAL MONTHLY RENT S .... __~_.~__~ __ SECURITY DEPOSIT S
UTILITIES INCLUDED IN RENT: [] Heat [] Hot ;rr~old Water [] Other
UTIUTIES PAID BY RESIDENT: [] Electricity [] TeMphone n Other
(The folk)wing is required by Minneso~ Statutes, Section 504.22)
Authodzed Manager of Apartment
Address
An owner of the premises or an agent authorized to accep{ sen/ice of process and receive and give receipts for notices and demands is
Address
'Where appmpr~te, smgu/er terms u~ed/n this Lease inc~uOe the p/ura/, and pronouns of one ge,'x~r inctude a// genders.
Additional Agreements (if any):
Management (acting as agent for the owner of the premises) and Resident agree to the terms of this Lease and any attachments that may be made part
of this Lease.
MANAGEMENT
by
Date signed
TERMS OF THIS LEASE
(Resident)
(~e~dent)
A. RENT
1. PAYMENT: RESIDENT will pay MANAGEMENT the full monthly rent bMore midnight of the first day of each month while this Lease is in effect
and during any extensions or renewals of this Lease. Rent will be paid as required by MANAGEMENT.
2. ~11~10 I~ RESPONSIBLE FOR RENT: Each RESIDENT is individually responsible for paying the full amount of rent and any other money owed
to MANAGEMENT.
3. DUTY TO PAY RENT AFTER EVICTION: If RESIDENT is evicted because RESIDENT violated a term of this Lease, RESIDENT must still pay
~ full monthly rent until: 1) the Apartment is re-rented; 2) the DATE THIS LEASE ENDS; or 3) if the Lee__,~e is month-to-month, the next notice period
ends. If the Apartment is re-ranted for Mss than the rent due under this Lease, RESIDENT will be responsible for the difference until the DATE THIS
LEASE ENDS or, if ltm Lease is month-to-month, until the end of rite next notice period.
4. LATE RENT ~'RVlCE CHARGE AND RETURNED CHECK FEE: RESIDENT will pay the SERVICE CHARGE listed above if RESIDENT does no{
pay lite full monthly rent by lhe 5th day of the month. RESIDENT also will pay a fee of $15 for each returned check.
5. OCCUPANCY AND USE: Only the persons listed above as RESIDENTS may live in the Apartment. Persons rxX listed as RESIDENTS may live
in the Apartment only with the prior wfi~en consent ol MANAGEMENT. RESIDENTS may use the Apartment and utilities fo~ nomml readentJal purposes
only.
6, ~UBLET'IING: RESIDENT may not lease the Apmlment to other persons (suble{), assign this Lease or sell this L__~e~e__ without the pdor written consent
of MANAGEMENT.
7. RESIDENT PROMISES: 1) Not to act in a loud, boisterous, unruly or thoughtless manner or disturb the rights of the other residents to peace and
Clu~et. or to allow his/her guests to do so; 2) to use the Apartment only as a private residence, and not in any way that is illegal or dangerous or
which would cause a cancellation, restriction or increase in premium in MANAGEMENT'S insurance; 3) not to use or store on or near the Apartment
any flammable or explosive substance; 4) not to interfere in the management and operation of the apartment building; 5) that the Apartment, common
areas, or area surrounding the building will not be used by the RESIDENT or by anyone acting under his/her control to manufacture, sell, give away,
barter, deliver, exchange, distribute, or possess any illegal drugs.
8. WATERBEDS: RESIDENT may not keep a waterbed or other water-filled furniture in the Apartment without the prior written consent ot MANAGEMENT.
9, PETS: RESIDENT may not keep animals or pets of any kind in the Apartment without the written consent of MANAGEMENT.
C. CONDITION OF APARTMENT ,.,~,l[~
10 MANAGEMENT PROMISES: 1) That the Apartment and~mmon~ areas are fit for use as a residential premises; 2) to keep the Apartment in
reasonable repair and make necessary repairs within a.r~p~able time after written notice by RESIDENT except when damage is caused by the
intent,onal or negligent conduct of the RESIDENT or hi~'~guests; 3) to maintain the Apartment in compliance with applicable health and safety
codes except when a violation of the health and safe,~[..~:l~s has been caused by the intentional or negligent conduct of the RESIDENT or his/her
guests; 4) to keep the common areas clean and i~o~l condition.
11. RESIDENT PROMISES: 1) Not to damage or misu~e~he Apartment or waste the utilities provided by MANAGEMENT or allow his/her guests to
do so; 2) not to paint or wallpaper the Apartment, or make any structural changes in the Apartment without the prior writlen consent of MANAGEMENT;
3) to keep the Apartment dean; 4) to give written not~ce to MANAGE MENT ol any necessary repairs to be made; 5) to notify MANAGE MENT immediately
of any conditions in the Apartment that are dangerous to human health or safety, or which may damage the Apartment or waste utihties provided
by MANAGEMENT; 6) that when RESIDENT moves out, the Apartment will be left ;n good condition, except for ordinary wear and tear; 7) not to
remove any fixtures or furnishings supplied by MANAGEMENT without the prior written consent of MANAGEMENT; 8) to cooperate with
MANAGEMENT'S efforts at pest control. This may include, among other things, RESlDENT'S emptying and cleaning cabinets, drawers and closets,
pulling furniture away from walls and allowing exterminators to enter and treat the Apartment.
12. SECURITY DEPOSIT: Management may keep all or part of the security deposit a) for damage to the Apartment beyond ordinary wear and tear;
and b) for rent or other money owed to MANAGEMENT.
13. DESTROYED OR UNLIVEABLE APARTMENT: If the Apartment is destroyed or damaged so it is unfit to live in due to any cause, MANAGEMENT
may cancel this Lease immediately and may choose not to rebuild or restore the Apartment. If the destruction or damage was not RESIDENT'S
fault and MANAGEMENT cancels this Lease, rent will be pro-rated and the balance will be refunded to RESIDENT.
D. DURATION OF LEASE
14. FAILURE TO GIVE POSSESSION: If MANAGEMENT cannot provide the Apartment to RESIDENT at the start of this Lease, RESIDENT cannot
sue MANAGEMENT for any resulting damages but RESIDENT wil~ not start paying rent until he/she gets possession of the Apartment,
15. MOVING OUT BEFORE LEASE ENDS: If RESIDENT moves out of the Apartment before the DATE ~i~-.?~S.LEASE ENDS, RESIDENT is responsible
for rent and any other losses or costs including court costs and attorney's fees. ~ .
16. TERMINATION OF LEASE WITH SPECIFIED ENDING DATE: If RESIDENT wishes to move out oj,~partment on the DATE THIS LEASE ENDS,
RESIDENT must give MANAGEMENT prior written notice equal to the NOTICE PERIOD. If RESI[~T fails to give proper notice, MANAGEMENT
may a) extend the Lease for one NOTICE PERIOD and b) raise the rent. If RESIDENT stays in,,L~?~'partment after the DATE THIS LEASE ENDS
with the approval of MANAGEMENT, and RESIDENT and MANAGEMENT have not renewed~.~. 'ease or entered into a new Lease, this Lease
shall be extended under its original terms except a) the duration shall be changed to month-~o~l~l~th, and b) MANAGEMENT may raise the rent,
17. TERMINATION AND ALTERATION OF MONTH.TO.MONTH LEASE: When the Lease is,j~?TJYto, month, MANAGEMENT and RESIDENT may
terminate the Lease only by g~ving the other party written notice equal to the NOTICE PER~A notice to cancel a Lease is effective on the last
day of a month. MANAGEMENT may change any of the terms of a month-to-month Lease, including the amount of rent, by giving RESIDENT written
notice at least equal to the NOTICE PERIOD.
18. MOVING OUT OF THE APARTMENT: RESIDENT will move out ol the Apartment when this Lease ends. If RESIDENT moves out after this Lease
ends. RESIDENT will be liable to MANAGEMENT for any resulting losses including rent, court costs and attorney's fees.
E. RIGHTS OF MANAGEMENT
19~ EVICTION: If RESIDENT violates any of the terms of this Lease, RESIDENT may be ewcted immediately and without prior notice. If RESIDENT
is ewcted but does not move out voluntarily, MANAGEMENT may bring an eviction action, If RESIDENT violates a term of this Lease but MANAGEMENT
does not sue or evict RESIDENT, MANAGEMENT may still sue or ewct RESIDENT for any other violation of any term ol this Lease. Under state
law, a lawful seizure from any Apartment of any illegal object or substance, ~ncluding drugs, constitutes unlawful possess;on of the Apartment by
that RESIDENT, and is grounds for~ka~tomatic eviction,
20. ATTORNEY'S FEES: If MANAGEI~"N~' brings any legal action against RESIDENT, RESIDENT must pay MANAGEMENT'S actual attorney's fees
and court costs even if rent is paid,~r~er the legal action is started,
21. MANAGEMENT'S RIGHT TO ENTr=R: MANAGEMENT and rts authorized agents may enter the Apartment at any reasonable time to inspect, improve,
m.amtam or repair the Apartment. er do other necessary work, or to show the Apartment to potential new RESIDENTS or buyers,
22 MANAGEMENT'S LEGAL RIG'S AND REMEDIES: MANAGEMENT may use its legal rights and remedies in any combination. By using one
or more ol these rights o; rji~lles MANAGEMENT does not g~ve up any other rights or remedies it may have. Acceptance of rent does not waive
MANAGEMENT'S r~ght to'reeF RESIDENT for any past or existing violat,on of any term of th~s Lease.
23 LEASE IS SUBJECT TO MORTGAGE: The Apartment building may be mortgaged or may be subject to a contrac~ for deed. RESIDENT agrees
that the r~ghts ot the holder of any present or future mortgage or contract for deed are superior to RESlDENT'S rights. For example, ii a mortgage
on the Apartment building is foreclosed, the person who forecloses on the Apartment building may. at their option, terminate RESIDENT'S lease.
F, LIABILITY OF RESIDENT AND MANAGEMENT
24. DAMAGE OR INJURY TO RESIDENT OR HIS/HER PROPERTY: MANAGEMENT is not responsibie tot a~y damage or injury that is done to
RESIDENT or his/her property, guests or their property that was not caused by MANAGEMENT. MANAGEMENT recommends that RESIDENT
obtain Renter's Insurance to protect against injuries or property damage.
25. ACTS OF THIRD PARTIES: MANAGEMENT is not responsible for the actions, or for any damages, injury or harm caused by third parties (such
as other residents, guests, intruders or trespassers) who are not under MANAGEMENT'S control,
26. RESIDENT SHALL REIMBURSE MANAGEMENT FOR: 1) Any loss, property damage, or cost ~air or service (including plumbing problems)
caused by negligence or improper use by RESIDENT, his/her agents, family or guests; 2) any Io~l~r~clamage caused by doors or windows being
left open; 3) al~ costs MANAGEMENT has because of abandonment of the Apartment or other ~l[~llSns of the Lease by RESIDENT, such as costs
for advertising the Apartment; 4) ali court costs and attorney's fees MANAGEMENT has m any suLd,~ll~viction, unpaid rent, or any other debt or charge.
27. WHEN PAYMENTS ARE DUE: Any amount owed by RESIDENT is due when MANAGEMli[~/aAsks for it MANAGEMENT does not give up its
right to any money owed by RESIDENT because of MANAGEMENT'S failure or deiay in ask!r~r any payment. MANAGEMENT can ask for any
money owed by RESIDENT before or after RESIDENT moves out of the Apartment. ,il~'~,~
G. MISCELLANEOUS
28. FALSE OR MISLEADING RENTAL APPLICATION: If MANAGEMENT determines that any oral or written statements made by RESIDENT in the
rental application or otherwise are not true or complete in any way, then RESIDENT has violated this Lease and may be evicted.
29. BUILDING RULES AND ATTACHMENTS ARE PART OF LEASE; NO ORAL AGREEMENTS: Any attachments to this Lease are a part of this
Lease. If a term of any attachment conflicts with any term of this Lease, the attachment term will be controlling. MANAGEMENT'S building rules
are a part of this Lease, and MANAGEMENT may make reasonable changes in these rules at any time by giving RESIDENT written notice, No
oral agreements have been made. This Lease and its attachments and any other written agreements are the entire agreement between RESIDENT
and MANAGEMENT.
30. NOTICES: All RESIDENTS agree that notices and demands delivered by MANAGEMENT to the Apartment are proper notice to all RESIDENTS,
and are effective as soon as delivered to the Apartment.
,ii ·
lq)BidS AJ~E YERY ILIiq)it, TAHT ~DS IN ~TIH(i/I.D/LqTMllN*r BUll. DIN(IS BllFICiliN'ILY. ~Y ~
AV~I.,AiII..B Til.qOU(~H MItA. IP YOU WOUI.D lIKE *FO PI.,M:3~ .414 O&DRR. PILl. OLYF ,/dqD RBilJIU~ Tiffs
· lq3rP.,]d, ~ ~ gl'~ri-,l(dJ2. ~ -qAL.l~-q TAX AND lq~S"rAfliL
Apartment Chock-off LbS
~ for Pots
Enofw ConlofvItJofl Loner to Resident
Monlger 8afoiy iIx:l Fire Protoclion LIst
~.6C)N OF TRIAL & ERRORS - A Desk'lop Logs1 Akl. A ooNirmalfon o~ Donna I. Imlbo~'e odUfllfl8
covering tho Mlnnooom Human FIIgMs Acl, bto payments, ordinary wear · tear, Iofmnt cloal~, bad
4)hocks, omploymonl sable cxxnmunloallons and moro. llS.00-membom, 120.00--non-mombora
(ixtoes Include au, add 12.00 Ior postage and
RENTE~ LEGAL INFORMATION GUIDE. Aparlmoflt LMng ~nd tho LOw. Afl Inlroducllon to tho
kw of Ipartmoflt living in Miflnolo18, this brochure, written by Donna Hlflbery, hits bilk: Mowers to
balm questions. Coverts0 bases, Iocurlty deposits IflcI non-payment of rent, this b excellent Ior
tenants. Available free for I single copy by mailing Jfl l eaif-lddress~cl, stamped onvdopa. For lar0or
quenlltbs: 16 easts each, or e0 for $S.00, plus posta0o.
SEVEN COUNTY DIRECTORY - I:)edgnod to live Sma lad Id)or for those Interested
~padfk) apartment blfommtlon, ivailai:)ie before Orlly bl various fha· Icruse tho Iovon
floc~nlly updmlod, It IndlxJol tho Iparlmonl IKJCIrOs., nund2w of uti#s; ago of bundln0, and Mm name nd
address of the owner or marm0omoni oompany. F? moro Iofommllon, sail 027-8802.
WELGOIdE PAQ(ET8 - A beady packet d inkxmdofl to pass Idea0 to your rolldenl. Lbofd Il
~vo In, or ur time u · tm4J0htful fomlnclor Ilml you nra. Contains t v~doty o! useful pamphlets
Inoludn0 Inlormellon on omar0oncy nund2ers, renters Inlurmnco, onor0y sevin0·, · resisto legal
0uldo, east oomparbo~ on ronlln0 var·us buying ~nd much moro. AMc)we you to poudly dlq~sy your
.HA ilfillatlon Ind b enBy .mchlP(mblo to Indudo your Inlommllon 18 well. ~ fln~ homo IhOUld bo
~thoul anal 1-60 12.00 · piece, 61-100 81.76 ,n place, i0l-up 81.60 a pleas. Avaibblo Ia IdHA
USEABLE msnogomonl, msrkotlng ~nd m~lnlonafloo Iipo end metmds. II ;oprosoflt8 lbo
wbdom Jar · kmollon of tho oo81. This revised odMJon MHA'o flmou8 bgsl Imnclbook severe tho
q~rlmont Io88e, unlmvful clotmhor & robtod tows, oolloolJon of rani m~d al,mi·goo, dsmbnJfmtlon,
ixopafly laxatlon, governmental ro0ul,tJons el uso Imcl operation, ~ Mlnnooot~ 841tulsa 604 · 680
(JOe0). No Apartmonl owner or reneger should be wflhout one. Got your espy for MI 676.00-
monlbOre, $OS.00-non mofnbws (prk)os Include ilL, odd K.00 for postqo ~ Imndllng).
~ nl.dtun tm,~r l!-riO wll bm
NAME FC~I'AGE l ~~
GOMPANY. $1.00-$L00 order Include 1.76
12.00-4.00 order Inoludo II.60
ADDFIESS SS.00-20.00 ocdar Inclxlo ~4.00
120.00 mncl over oMI 0274802
OITY & ZIP FORMS
TELEPHOHE 6 1/2% TAX ·
send w#h payment to: POSTAGE · HANDUHG .
Minnesota IdulU Housing Association
4oS0 Park Glen Road ~ TO'rALAM:XJI~~.D.
Mlflnoei:x)lle, IdH SS418
.: ~ Rent Cobctlon From
Rental
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MINNESOTA MULTI HOUSIN~ A880QIATION PRESENT8
A S~RIES OV SEMINARS FOR SMALL I~S?ORS
featurin$ Expert Speal~r:, Ouestton & An.~r Period~ and Lots or,tuts & Bolt~ I BoMc I "How To..." lqformatlon
FiNANCiAL Ri~COnDS wrrn "QuIcKmw" - ADYANCEO COUnS~.
Fo~ IBM PC (Colm,ATmzs) & Am*ts M~cImma ~
SPONSORS OF THE SMAI-L INVESTORS SERIES:
L & M LEGAL SERVICES · ALCOSOFr · CITIES MANAGEMENT
ADAMS PEST CONTROL · THE OFFICE CENTER OF MAPLEWOOD SEARS
[~ l'mpayinsf~rl~seminarsd~:ked: 0 OCLI2 0 Dec. 14
Nn~s) Company
Address
0 ~9~4 TaA
RETURN ~ PA~ T~.
Mimeeom MMti Housing Assodation gl 4Z.~} Park Glen Road ~ Mineapo~ MN S.q416
· MAINTENANCE SEMINAR
Thursday, January'27, 1994'
BOILER LICENSE SEMINAR &
EXAM
INSTRUCTOR:
STEVE SWANSON
Park Supply, Inc.
STEVE SWANSON will present a seminnr covering thc basic infornmtion needed
for safe boiler operation. This seminar will cover the ~ for
the Special Class and Second Class boiler license exams only!
Following the seminar, representatives from the Department of Labor and Industry
will administer the exams.
Thc cost for thc seminar and exam is:
Special Class - $40/MHA Member, $55/Non-member
Second Class - $45/MHA Member, $60/Non-member
LIMITED NUMBER OF STUDENTS!
NOTE: Anyone wanting to take the Second Class license exam must present a notarized
affidavit at the time of the exam. Please call 927-8602 for an affidavit.
THURSDAY, JANUARY 27, 1994
9:30 a.m. - Registration
10 a.m~ - 1 p.m. - Seminar
1:30 - Exam
3 CRMT Credits
MHA Training Room
4250 Park Glen Road
Minneapolis
Register now: 9274602
Hennepln Technical College
BOILER LICENSE
Name
Address
Phone
Enclosed is $
Company
City, State. Zip
License desired: ~ Special Class
to cover reservations. Check #
Due to the demand for this seminar, payment must accompany registration;
ff you make a reservation and do not ~how, you will be billed.
Retum registration with payment to:
Minnesota Multi Housing Association O 4250 Park Glen Road, Minneapolis, MN 55416
Second Class
YOU'RE INVITED
TO BECOME
ONE OF THE BEST
IN THE
APARTMENT INDUSTRY!
DID YOU KNOW:
Did you know that the CRMT course covers not only the basics
of Plumbing, Heating, electrical, and AC/Refrigeration,
but also utilizes the "hands-on-type -of-learning" at a
Hennepin Technical College campus?
Did you know that resident and property managers enroll in
CRMT to become familiar with the terminology and
applications associated with apartment maintenance?
Did you know that CRMT begins in February?
For more information call the
MinnesOta Multi Housing Association at (612) 927-8602.
Thank you Apartment Search!
YOU'RE INVITED
TO BECOME
ONE OF THE BEST
IN THE
APARTMENT INDUSTRY!
Certified Residential Manager
CRMs Can and Do...
-k Become better managers!
Perform more effectively in their jobs!
'i' Develop better interpersonal skills!
~ Get promot~l!
Here's your chsnce to turn yOur job into a careerl
Register for the CRM winter program starting in February 1994.
This 60-hour program is geared for on.site managers,
:...~ : .-, ~,~or .more infonmfion call the
'~:.' ,.. ' Minnesota MUlti Hous~ Association at (612)927~. 'ii
~ TiMnk you Apdrm~nt .qmrchl
Minnesota Multi Housing Association
While the information here probably won't be changed, it is subject t~ revision. Please check MI-IA's
monthly calendar for updates and additional neminars and events not listed.
JANUARY
Jmuary 5. 12~ 19, 26 - Gold Workshop Series
January 12 & 14 - N'IV~C
January 18 - Attorney Semimtr - Leasee
January 19 - Owne~ Round Table
January 19 - Eggs & Education
FEBRUARY %
CRM & CRMT Begin
Felxuary 9 - Owners Round Table
Februa~ 9 - Orientation
Feh'uary 15 - Almmey Seminar - Lead
Fetzuary 16 - Eggs & Education
Fetn'um~ 22 - Small Owners Seminar
Fetm~y 24 - Full Day Seminar
MARCH
March 3 - Orientation for New Board & Chairs
March 8 & 10 - CPO Cut. se
Match 9 - Owners Round Table
Match 15 - Annual Meeting
March 21 & 22 - NMHC
March 22 - A~omey Seminar - Discrimination
Ma~ch 23 - Eggs & Education
Match 23 - Round Robin
APRIL
AptU 6 - Owne~ Round Table
April 12 - Exhibitors Orientation
April 14 - Perspective '94
April 19 - Board of Directors
April 20 - Eggs & Education
April 26 - Orientation
April 29 - Full Day Seminar - Diversity
MAY
May 11 -Owners Round Table
May 11, 12, 13 - COM - Mankato
May 17 - Convention & Expo (tentative)
May 25 - Eggs & Education
JUNE
June ? - Half Day Seminar
June g - Owners Round Table
JUNE (coa~/aua/)
June 9 - MAC Luncheon
June 14 - I-lair Day Seminar
June 22 - Small Owners Seminar
June 27 & 28 - NMHC
JULY
July 13 - Owners Round Table
July 19 - Board of Dizectors
AUGU$?
August 10 - Owne~ Round Table
August 10, 11, 12 - COM - Brsinerd
August 16 - Annual Golf & Tennis Outing
August 17 - Eggs & Education
August 17 - Orientation
August 25 - Half Day Seminar
SEPTEMBER
CRM & CRMT Begin
September 14 - Owners Round Table
September 20 - Small Owners Seminar
September 21 - Eggs & Education
September 22 - Membership Party
Selxember 26 & 27 - NM~C
September 28 - Product Service Seminar
OCTOBER
October 12 - Round Robin
October 12 - Exhibitors Orientation
october 19 - Owners Round Table
october 19 - Eggs & Education
NOVEMBER
November 3 - Board of Diwctors
November 9 - Owners Round Table
November 9 - Orientation
November 9, 10, 11 - COM - Brooklyn Park
November 16 - Eggs & Education
Novembe~ 22 - Conference & Expo
DECEMBER
December 6 - Small Owners Seminar
THE MINNESOTA MULTI HOUSING ASSOOATION
4250 PARK GLEN ROAD, MINNEAPOLIS, MINNESOTA 55di6 4, (612) 927-8602
THE CERTIFICATION PROGRAM FOR'
GOVERNMENT ASSISTED HOUSING MANAGERS
Certified
Occupancy Manager
Hennepln Technical College
OFFERED BY THE
MINNESOTA MULTI HOUSING ASSOCIATION
Minnesota Multi Housing Asaociation
42.50 Park Glen Road
Minneapolis, Minnesota ,55416
1993, OCCUPANCY WORKSHOPS
April 21-23 - Heflnegin Teohnloai C~II~'
July 14-16 - Bralneed Community Colege
Novemb~ 10-12 - Hennel~ Technic~l College, :.
NEW CHAPTER 2 CHANGE TO 4350,3
3193
DNISflOH LL'IflIAI V£OS~IMNIIAI
HIt£ dO
IAIV'HDOHd NOI~LV~)fI(I~I ~LN~II~IDV~VI~
~a~euelAl Ie.T1UOpT. sO~I
Minnesota Multi Housing Association
4250 Park Glen Ro~!
Minneapolis, Minnesota 55416
Intermediate DJotdcl. 287
VOLUME 111 - 8/93
uo!;~!:)ossv gu!snort !;lnIAI ~;osauu!IAI ®~.~t~Ltt~j~~
aq~, jo m~JllOad uo!~,~:)np~
a~u~u~u!~IAI oql,
Minnesota Multi Housing Association
4250 Park Glen Road
Minneapolis, MN 55¢16
Volume X · August 1993
T,09~-/~6 (ZI9) · 911~ bl]AI '~I. ode~uu~[. · P~ u0io ~ ~Z~ · ~9~ ~U~OH ~ln~ ~~
~ ' '~ ~-~ ~ ~ ~ ~ · uo ~--- ~ ~~ ~ l
I ~1 ~. ~ ~ · ~ ~ !
~ / ~ ~ ~ · ~..a ~.~ -- ~,- ~/
o ~ - · ~ .- o ~ 0 ~ ~ o
: re,",', or oV,£,r
rig' t.o [.,= :-: c~ ~,, .:: , ...~,u the "' pa.'l, rr~ent, or make any slruclura~, changes ~n ll;e Apa,'lmer,I v,~Jr, out the
dar~,e;o~s lo hur:-;ari r, ea!!h or sg!et~,, or wn:ch may oama.s.~:
T ;r.o',es ou', Ihe Apa.qrr,ent v,~!l be left in ...13od cor',d I on e~,cept
J by MANAGEMENT v,,lhout Ihe pnor wr,!ten cOnsent ot M-".f4AGEf..'zl ~I ._-o;:.r*s'.:.,¢ v
~r'.ay include an, one, o'.her thm.'::.~ RES!DENT'S emply~ng and clean:ng ~ri ~;~d c:c~et
. ~ ¢,rC)-fStC; _ _,,
JANUARY 1994 MINNESOTA MUL'n HOUSING ASSOCIATION $3.00
THIS MONTHJN
s',HANBE Y'S I'RIALS &
!:;LEA-SES!--
INSIDE:
PRESIDENT'S MESSAGE 1
RECORD-BREAKING
MEMBERSHIPDRIVE 1
MHA IN REVIEW 3
FISCHER ON FINANCE 7
LOW INCOME HOUSING
CONVERSION 9
GOOD NEWS 14, 30
MIKE HENNING 15
REFRIGERANTS 16
MUNICIPALAFFAIRS 23
TAX FACTS 27
NEWSLETTERS 29
.SE
~s L e.--.. ~
:~ tr-~e ret
q t r,,-3
Leas
Cortege Bz~w. (center) of Lynn
Properties in Du~th welc~ed ~lti
pr~ram or~zed for Gr~ter
P~e in N~em~r. F~n~
Pre~nt M~ R~ f ~t pictured)
~rec~hon ~ all ~ ¢hem for
=AYMENT$ ARE DUE: Any amount owed ,b,y, R£$1DEr~T 'S due when M,A.t, AGE~EN! asks for ,t MAN.A.G.E,?~?~;,~d,o, ta not '_q ,,e ,,
Developments in
MHA's Legislative Program
by Frank C. Dunbar, MHA President
When members are surveyed asked why they belong to
MHA
and
the
associa-
tion, the number one response is the legislative program. Through the years,
MHA has developed a successful one, passing legislation necessary for our industry
and defeating onerous proposals. This program continues to be successful because it
combines the talents of our Legislative Committee, currently chaired by Joe Weis,
along with the expertise of Jack Homer.
Jack is known by legislators as one of the
most knowledgeable people in the state
on the rental housing industry. Jack
combines thorough research with great
people skills and a desire to protect the
rights and needs of the rental housing
industry. As you probably know, Jack is
no longer part of MHA's in-house staff,
but remains our chief lobbyist, spending
approximately 75% of his time on MHA
issues.
To strengthen the legislative program
further. MHA recently retained a second
lobbying firm to increase our manpower
at the capitol. MHA has hired Northstate
Advisers, whose principals include Tom
Kelm, Al Hofstede, Andy Kozak and
Maureen Shaver. Your Board is
impressed with this firm's political
credentials and track record, and feels the
addition meshes perfectly with Jack's
skills and, more significantly, doubles our
direct impact at the legislature. This
dynamic team effort will insure that
MHA is heard on all issues that directly
or peripherally involve multi housing.
Over the last few years, local govern-
ments have exerted increasing control
over our industry through restrictive
ordinances and increased fees. Since a
strong municipal program is a critical
complement to our state legislative
program, MHA recently hired Steve
Johnson as Director of Municipal
Affairs. Steve will focus his energies on
local government actions affecting the
rental housing industry; he will expand
and finetune our monitoring activity by
soliciting more member involvement
throughout greater Minnesota. To be a
part of this important grassroots, proac-
tive effort, call Steve at 927-8602.
Contributing to our "big picture" program
is Merrill Busch, who continues to assist
MI-lA in public relations so we can most
effectively get our message(s) to
legislators, local governments, the public
and even to our own members. And
rounding out this multi-levelled ap-
proach to keeping our voice heard is
Mary Rippe, who coordinates the
various activities for maximum effi-
ciency.
Although a great team is clearly in place,
there is still one missing ingredient -
your active involvement. These talented
individuals can't do the job alone. I
can't state emphatically enough that you
must get involved; no one else can
contribute what you can contribute; your
vote counts, your opinion counts, your
THE MULTI HOUSING ADVOCATE
role in the political process is as power-
ful as it is precious. We must all become
more vocal about our business and the
impact of proposals on this industry.
There are numerous ways you can
become involved. Our great legislative
committee can always use more mem-
bers (call Mary at the MHA office if you
want to join). Steve Johnson welcomes
everyone's involvement in the municipal
monitoring network. And, of course,
you can and should contact your
legislators - get to know them before the
legislative session begins in February.
Then, when an issue arises during the
session, they will know more about you
and your concerns when ~,ou call them
regarding specific proposals.
Make this New Year's Resolution today:
I will make my voice heard itt 1994 and
become involved in the legislative
process. ·
McKenna Breaks Record in Membership Campaign
1993 Drive Brings in $74,234 in New Member Dues
by Kathy Sheridan, MHA Director of Marketing
Congratulations to Kathy McKenna
and the Membership Committee
What a year/ $15,719 is the total new
member sponsor amount that 1993
Membership Chairman Kathy McKenna
achieved, surpassing the previous records
of $15,325 and $15.305 earned by Sheryl
Gallagher and Gene Nelson respec-
tively in 1986. This incredible accom-
plishment aided Chairman McKenna and
her committee to raise $74,234 in 1993
new member dues against a budget of
$65,000. And for the first time in several
years, the Membership Committee was
ahead of budget projections each month.
Danny Commers, Roseville Properties,
presented McKenna her cash prize at the
Grand Finale Dinner Program at the Fall
Conference on November 23rd. Corn-
mers was asked to present this award
because he served as membership
chairman for both 1984 and 1985.
McKenna will complete her second
consecutive term in March 1994. Kudos
to both for each exceeding their $65,000
campaign goals each year.
In addition to serving her second year as
Chairman, McKenna demonstrated her
continued next page
'-~~ JANUARY 1994
The Changing Lo°k of MHA
MHA's Executive Vice President
Tthhe look of MHA is changing. For
e past 20 years the source of
MHA information was thc Minni Mag.
The pubhcation you an: now reading -
thc Multi Housing Advocate - is the first
edition of the Mag's successor. We're
excited about the opportunities the new
format twings us, among them: space for
more and occasionally longer articles to
meet the diverse needs of all members;
display sizes similar to industry start-
(lards (making it easier for suppliers to
develop or re-use ads); and thc start of a
Iransition to a self-mailing - sans enve-
lope and flyers - product. Our goal is to_
produce a magazine that serves thc rental
community with indust~ news, informa-
tion about association pt~ and prod-
ucts, nnd features about members. We
will be "fine-tuning" the magazine as the
year prolgesses and would appreciate
your input. In addition, we'd like you to
be a somce of infommtion we can print,
from Good News items to educational
articles. Many of thc pieces we publish
ate from national sources, whereas we'd
MEMBERSHIP REPORT
continued
strong commitment to MHA by pledging
that she would only do business with
MHA members and encouraging all other
members to do the same. Members
sponsored by McKcnna have expressed an
appreciation upon joining MHA and
discovering the opportunities afforded by
membership. In addition to McKenna,
other notable award winners who assisted
the 1993 Membership Campaign are:
Gene Nelson, Lang-Nelson Associates,
$3,980; Frank Dunbar, Dunbar Devel-
opment, $3,31~, Laurry Harmon,
Greater Data, $2,455; Frank French,
Mid Continent Management, $2,415;
Mark Josaart, Kicinman Realty, $2,358;
Debbie Dennis, Ganghan Companies,
$1,965; Sandy Vee, The Auium, $1,572:
Pat Lamb, Legacy Management and
Development; Mark Sween, Hawthorne
Management, $1,202; Melanle Demars,
Sentinel Management, $788; Sharon
Arndt, For Rent Magazine $630; Nancy
Hollis, Rental Research, $630; Steve
Weisbecker, Lloyd Management, $630;,
Kent Forsland, $603; Nancy Sehacht-
man, Steven Scott Management, $573;
Myrna Luse, Living Guide Magazine,
$517; Rob Peifer, Peifer Properties,
$517; John Appert, Apartment Search,
$503.
Thc Membership Committee focused on a
variety of programs in 1993, including a
membership retention pro .gr. am, the
overall membership Caml~gn, thc
membership awards program and theme,
the development of a series of seminars
targeted towards the New Investor (less
than 20 units) member, and the Annual
Membership Party. I'd like to thank the
committee members who made this past
year a memorable experience. They
were a wonderful group to work with and
deserve to be applauded. The 1993
Membership Committee: Patty Gnetz,
Nicollct Financial; Claudia Aronsohn,
Midwest Management; Faye McMa-
hon, Hoeft Appliance; Rob Pelfer,
Peifer Properties; Melanie Demars,
Sentinel Management; Mark Jossart,
Kleinman Realty, Meg Thorson, Real
Estate Equities; Frank French, Mid
Continent Management; Barry Shift,
The Pink Company, Pat Lamb, Legacy
Management and Development; Sandy
Vee, The Atrium Companies; Debbie
Dennis, Gaughan Companies; Sharon
Arndt, For Rent Magazine; Kent
Forsland; and Kelli Briggs, Macke
Finally, l'd like to again thank Kathy
McKenna for thc oppo'tunity to work
with her on thc two budget breaking
campaigns. Hex tireless efforts for thc
good of this induslry and her unflagging
enthusiasm for thc value of association
activities were and a~ unparalleled. And
her genuine warmth, generosity, and
graciousness made every task easier and
every challenge simpler. ·
prefer articles fn)m MHA members.
Bask in the glory of your own by-linc;
not only will your expertise be proven,
your photo will heighten your profile in
the MHA network.
MHA needs to continue r~fining our
message to not only you, our members,
but to the public as well. In the past few
months we have ~ent considerable time
discussing the challenges facing the
industry with the press, the Citizens
League, Minnesota Housing Finance
Agency, Family Housing Fund, and city
staff and officiais. As a result of these
discussions, we have begun to build
stronger coalitions and received some
favorable press. However, to improve
the credibility and quality of our message
to the public, we need to develop a berm
_database of _sm_ tintiCal information on the
industry. MHA's public relations
committee is w~king on.developing this
information and we will keep you
informed of our progress.
The Minnesota Real Estate Journal has
recently increased their coverage of thc
rental housing industry in Minnesota.
Publisher Mike Kramer informed us a
few months ago that MRJ wanted to
expand coverage and in the past few
months its been apparent that its work-
ing. We've seen articles featuring
members Patty Gnetz, Sue Schnarr,
Klm Carlson, Steve Schachtman, Lee
Maxfieid and Lincoln properties. We
appreciate the editorial in a November
issue of MR./that recognizes that rental
owners need to make a profit and that
Real Estate Journal has astfigned Beth
Matson as the sv~porter for our industry
so if you have any newsworthy items
please call her. To improve our commu-
nications with the rest of thc real estate
industry, IVfl-IA is working on a special
promotional piece with the Real Estate
Journal which will highlight MHA
activities; look for it in the March 21,
1994 issue.
continued next page
THE MULTI HOUSING ADVOCATE 3 JANUARY 1994
~ew MHA Members at Your Service[
CLOVER
MAINTENANCE
Apartment Turnover Specialists
TRY US AND YOU'RE IN LUCK!
We're Eager to Make Our Presence in MHA Known Through
Quality Work Beyond Compare at Below Market Rates
SATISFACTION GUARANTEED
~[ Interior Painting
~ Drywall Repair & Texturing
I~ Carpet Cleaning
~[ Detail Cleaning
Just One Call. We Do It Ali!
Call Tim Mulcare or Scott Latta
786-5348 .:. Pager 643-91594 or 9{59-2783
BONDED · INSURED · REFERENCES
"RENTING IS SMART"
CONTACT
JOHN RUSSO
944-7137
699-2523
MEMOER MINNESOTA
MUL'B HOUSING ASSOCIATION
Minnesota Company
SERVICING FACILITY
NEEDS IN THE AREAS OF:
· Specifications, Bidding and
Inspection of Paint, Repairs and
All Exterior Replacement Items.
Problem Solving and Condition
Surveys.
Litigation Assistance.
SIDING/ROOFING
SPECIALISTS
NEWSLETTERS
CALL 1-800-392.NEWS ~, Bill Henry
MHA IN REVIEW continued
We continue to be disappointed with the
unbalanced coverage our industry
receives from the Star Tribune. Though
we've had numerous meetings and phone
conversations with the Tribune, we have
been unsuccessful in having them realize
that an industry that houses 50% of the
households in Minneapolis and St. Paul
(and 28% statewide), that employs
thousands and that pays a disproportion.
ate share of the real estate tax base in this
state, deserves any coverage as an
industry. By editorial.choice, the Tribune
continues to ignore stories on the health
of the industry, the property tax crisis, or
the social programs that are currently
being paid for by the rental owners,
However. the Tribune will cover the
breaking news in the business section that
a new tenants group has formed in the
state. Misbalanced, indeed biased
coverage by anyone's standards. A
repeated excuse that the only multi
housing news useful to the Tribune's
readership is that which is consumer's/
(renter's)-bottomline-oriented is a
preposterous enough guideline to be
newsworthy itself.
MHA's Accreditation Board, chaired by
Don Jacobson, and the staff deserve our
congratulations for developing two great
certification programs - Certified Resi-
dent Manager (CRM) and Certified
Resident Maintenance Technician
(CRMT). Members who have taken the
courses can attest to the quality of the
programs, so loudly heralded that now we
have requests from the Madison, Wiscon-
sin Apartment Association to purchase
these programs. We are fortunate in
Minnesota to have such talented people
developing and instructing these courses.
The instructors are key to the success of
these classes and we appreciate all their
hard work. I'd like to say a special
thanks to new MI-IA member Doug
Aieshire, ACM Services, who was
inadvertently left off the CRMT instruc-
tor list published in December Minni
Mag. If your staff has not yet attended
the CRM or CRMT program, the spring
classes will begin in February. Call the
MYlA office to register now. ·
MULTI HOUSING ADVOCATE
4
JANUARY 1994
Market-Share Liability Theory Rejected
in Lead Paint Lawsuit
l/Improving Things in 1994
l/How to Keep. G. ood People
I/Importance of a Training Manual
LEASING BY THE BOOK:
THE IMPORTANCE OF A
TRAINING MANUAL
by Christina Palmer, C.L.A.S3.
D~ id you ever see a Leasing Training
Manual in a library? In a book-
store? Probably not. Yet leasing person-
nel, especially new hires, need written
guidelines.
A well-trained sales force is the secret to
any company's success. Developing a
sales manual should be one of the first
steps in that training process.
With a uaining manual in place, new
employees can begin learning immedi-
ately. They can learn about your com-
pany even before orientation or a leasing
workshop. They will also have a valuable
reference tool
Here arc some basic recommendations for
your training manual:
1) A brief statement of your company's
business philosophy. This is a good way
to build loyalty, commitment and team
spirit among your employees. Give them
some company history, where you expect
to be 10 years from now and emphasize
their importance in achieving your long
term goals.
2) Statistical forms. Include copies of
your application, the lease agreement, ail
traffic reports, a maintenance request, and
a product knowledge fact sheet on thc
community. Remember to use samples
(forms filled in) so the new hire can use
this section as a reference when doing her
3) Your expectations for the rust 90
days on the job. Don't just say "We
expect X number of leases in 90 days.'
Be specific, break it down to number of
leases per week, percentages expected on
closing ratio and telephone conversion
and what steps to take on follow-up and
resident retention.
4) Copies of newspaper ads and
marketing flyers. Include these in your
manual with dates, the success rate, the
distribution points, etc. If you have
offered merchant or realtor incentives,
include these as well.
5) Motivational mterial. The key
factor for any salesperson is to be enthusi-
astic and motivated! This is especially
I~uc for leasing consultants. Motivational
material can be found in catalogs, books,
calendars and even specialized stores
which carry general motivational materi-
6) The ABCs of apartment leasing.
This section tells a leasing consultant how
to sell an apartment! Discuss how to
build rapport with thc prospect, establish
credibility, give a product demonstration
and get the prospect back to thc leasing
office.
7) Telephone techniques. At least 50%
of leases should come ~om thc telephone.
Apartment communities ~ ma.. ~'
advertising dollars to m_.ate u~. pnon. c
ring. Your leasing staff must Imow now
to convert a call into an appointment.
Telephone etiquette should also be
covered, as well as helpful tips such as:
Put a smile in your voice every time you
pick up the phone.
8) The guest or welcome card. Wc call
Nothing is less productive than to make more e~cient what
should not be done at all. - Peter Dmcker
ours thc "key card", because it's our key
to success. This card, developed espe-
cially for leasing consultants, has
questions that identify prospect's needs
and intexests. Be~ides thc obvious name,
address and occupation, ask what it
important to them in an aparanent, why
they arc moving and if they have any
special needs. Don't lake shortcuts. It
lakes only five minutes and it's well
worth the time.
9) Product demonsl~'ation. This is the
actual selling (and showing) of the
apartment. It should include these four
topics:
a) Talk in Feature-Benefit-Closes.
Example: FEATURE: Have you ever
seen a closet this big? BENEFIT: You
can fit all your clothes in here...plus
your golf equipment. CLOSE: Won't
this be handy when you move in?
b) Always stay in control. Leasing
consultants are professionals. They know
everything about their community and
each individual apartment. Doesn't it
make sense for the leasing consultant to
lead and direct the prospect?
c) Get the pro~l~'t involved. Utilize
all five senses. Have thc prospect
actually touch the apamnent. Ask them
to open doors, turn on a faucet, feel
textured wall coverings. Thc more
person~y involved they become, thc
more apt you arc to get thc sale!
d) Overcoming objections. Objections
ate inevitable, but should always be
viewed as a buying signal. It shows that
thc prospect is interested. Anticipate
objections and turn them into benefits!
Objection: No fireplace in the living
continued next page
THE MULTI HOUSING, ADVOCATE JANUARY 1994
ITEMS OF INTEREST continued
room. Reply: We didn't put in a fireplace
because most people want the extra wall
space. How many months a year do you
use a fireplace anyway? Is it really worth
paying an extra $15 to $30 extra a month
for a few months' use?
10) Ten doses. Here are two on our list
-- Assumptive: Automatically assume the
prospect is going to rent and say some-
thing like "Won't your patio furniture
look great on your deck?" Urgency --
"I need the apartment in two weeks."
Response: "Wow, if you're moving that
quickly, you'll need to make a decision
soon, won't you?"
You'll want to adapt and expand our
outline as you take a fresh look at your
community, your leasing procedures and
compile your material. We review and
revise our training manual twice a year
and our clients are welcome to pick up
any ideas they like. Your apartment
association may also have some samples.
Start today and put your leasing staff on
the right track!
Christina Palmer is a Corporate Trainer/
Cortsttllant with Atlanta.based C.L.A.S.~. For
more information: (404) 233-7126.
IMPROVING THINGS IN 1994
by Don Bagin, Publisher,
& Frank Grazian. Executive Editor,
communication briefings
T h.e arrival of 1994 marks a good
tune to take a look at where most
of us are - and where we want to go.
We are not advocating New Year's
resolutions but worthwhile directions you
might want to pursue.
We suggest that those who are interested
in accepting some of these challenges do
more than just phce them on a "wish lisL"
As psychologist Dr. Wayne Dyer suggests
in his new book, Real Magic, "Wishing,
hoping and goal setting cannot accom-
plish change without intention. What is
needed is a shift from the inert energy of
wanting to the active energy of intention
and doing."
Here, then, are our suggestions for
improving things in 1994. We hope some
of them become your "intentions."
· Create an environment that encourages
risk taking. To do so, we must allow
How to Keep Good People
To survive and prosper, says management expert Christopher Hegarty, ~
businesses must keep their good people. To do so:
Keep them informed so they don't start making career decisions based on
rumors and hearsay.
Meet often with them in one-on-one sessions.
Show thatyou value them by rewarding ahem with more responsibility or a pay
raise, At the least, tell them they're thought of highly.
lloM quarterly face.to.face meetings with them where you discuss nothing but
their future in the company.
Let their families know--with a thank-you note or flowers~how much you
appreciate it when employees make a special effort for the company that cuts
into the time they can spend at home.
Give them the freedom to do the job on their own.
Don't force them to take the wrong job. Force the wrong person into a manage-
ment job, for instance, and you'll lose him or her.
Show you trust them by letting them help you select new employees. When
employees take part in hiring, it gives them a new level of excitement.
Source: Scott Smith & Robert McGarvey, 2455 Calle Robie, Thousand Oaks, CA 91360.
I
people to failmand not make them fearful
of making mistakes. Display this quote
from Ellen Hubbard on your bulletin
board: "The greatest mistake you can
make in life is to be continually fearing
you will make one."
· Invest in those things that will have a
major impact. Avoid wasting time on
goals that will make an insignificant
difference.
· Learn how to master change. Says
Ichak Adizes in his new book. Mastering
Change: "Because management has to
deal with change, no management exists
without conflict...The trick to managing
change well is to convert the conflict
from destructive to constructive."
· Concentrate on dealing with diversity
in the workplace. We'll be seeing an
increasing number of different kinds of
people working with us.
In no country perhaps in the worm
is, law so general a study (as in America).
· .. This study renders men acute,
inquisitive, dexterous, prompt in attack,
ready in defense, full of resources.
... They augur misgovernment at a
distance, and snuff the approach
of tyranny in every tainted breeze.
- Edmund Burke, 1775
· Generate a creative climate. Most
people are more creative than we allow
them to be. We must tap that creativity
by openly seeking, encouraging and
rewarding innovation.
· Regain that pathfinding spirit. We
appear to have lost the pioneer spirit that
made many nations great. We have to
develop a new sense of mission and get
passionate about exploring uncharted
directions.
· Take time to consider what kind of
training your f'u'm needs to compete in
today's marketplace. Keep in mind that,
as jobs become more complicated, we
have to train employees to meet those
challenges.
· Invest in yourself--using your own
funds if necessary. As more companies
reduce staff, the best way to gain a
feeling of job security is to develop
additional knowledge and skills that will
increase your value. Attend workshops,
read widely both in your field and
others, and associate with people who
stimulate your thinking and creative
powers.
· Make a vigorous effort to hold on to
every customer you have. We believe
customer retention will be vital to
survival for the rest of this decade.
· Ask yourself this question from
Robert Schuller: "What one great thing
would you do if you knew you could not
fail?" Then do it.
ri'EMS continued next page
THE MULTi HOUSING ADVOCATE 6 JANUARY 1994
ITEMS OF INTEREST continued
MARKET-SHARE UABILITY
THEORY REJECTED IN LEAD
PAINT LAWSUIT
by Junda Woo
/~painctims suing over exposure to lead
t must pinpoint when the paint
was used, a federal appeals court ruled,
making it harder to seek damages
industry-wide from former lead paint
manufacturers.
Thc appeals court decision came earlier
this month in thc case of a RO-ycar old
Massachusetts woman, who, like other
lead-paint plaintiffs: can, t identify thc
maker of the paint mat she says she
ingested as a child. Lead paint can cause
brain damage in children if it is eaten.
Lawyers for the woman. Monica San-
tiago, argued that every former lead-paint
maker should be held liable in proportion
of each company's share of the market.
But thc fedcrai appeals court in Boston
said thc novel market-share theory of
liability can't be used because Ms.
Santiago's lawyers couldn't show exactly
when the walls in her childhood home
were painted.
That ambiguity made it unclear which
companies could be responsible for thc
lead paint, the court said, because not all
the companies were in the pigment mar-
ket at thc same time. Applying Massa-
chusetts law, thc court said it couldn't
fairly hold all the defendants responsible.
The defendants were Sherwin-Williams
Co., Cleveland, Atlantic-Richfield Co.,
Los Angeles, SCM C~rp., a unit of
London-based Hanson PLC; NL Indus-
tries Inc., Housing, and the Lead Indus-
tries Association.
Market-share liability has been allowed in
some cases involving the p~gnancy-drug
diethylstilbestrol, or DES. But courts
have been reluctant to apply thc theory
more broadly, to the disappointment of
plaintiffs' lawyers who once crowed that
lead-paint litigation could be as big a
money-maker as asbestos claims. Thc
appellate decision in Boston affumed the
findings of a lower court. An appeals
court in Philadelphia affirmed a similar
lower-cou~ ruling in May in another
major lead-paint case. Lawyers bringing
suits against lead-paint makers generally
concede that market-share liability isn't
going anywhere in federal courts for now.
Inst¢~:!. they plan to pursue such claims in
state ~. oufis, which they say might be more
open to expanding the use of market-share
liability than federal coux~ have been.
"We believe it can still be successful,"
said AtOlur Bryant, president of Trial
Lawyers for Public Justice, Washington,
and one of Ms. Santiago's lawyers.
One of the closely watched state court
suits is in New York, whore the city
government is seeking restitution from
pigment makers for money spent remov-
ing lead paint from city-owned housing.
New York's highest court has approved
market-share theory for DES cases, but
hasn't adckessed the issue in lead-paint
litigation. The New York
case is in a pretrial fact-
finding state.
Some defense lawyers scoff
at the idea that lead-paint
plainti{~ can win market-
share cases anywhere. Only
about six states' high courts have
approved the theory even for DES cases.
"Although the plaintiffs have uied
desperately to fit these facts in the
market-share box, it just doesn't work,"
said Paul "Micky" Pohl, an attorney with
the Pittsburgh office of Cleveland law
finn Jones, Day, Reavis & Pogue who
represented the Santiago defendants.
"Most of these plaintiffs have access to
lead f~wn all kinds of sources in the
environment, not just paint. The plain-
tiffs took a good shot at a radical theory,
but the courts just haven t accepted lt.
Wall Street Journal / Wisconsin
Apartment News ·
A FINAL LETTER
by Mark Fischer, PhD, MBA, CFP
from Fischer on Finance
Jack, Eileen, and their family have
been owning and managing several
properties. Jack buys and sells properties
and conrdi-nates much of the mana~ne~d
ment. F_,ileen does the books. A son
a son-in-law do much of the day-to-day
manaBement. The properties take
constant attention.
Jack and Eileen have just died in a uagic
automobile accident. The surviving
family is panicked. They arc not sure
what needs to be done with the properties
and with their parents' estate.
Hopefully, Jack and ~ h.ave..left
behind formal documents inciumng wins,
Uust agreements, and a business succes-
sion plan. These documents spell out and,
even m~c ifftportant, g.~llc ~ what
Jack and Eileen wanlld to uappen ages
Jack and Eileen should also have had a
FINAL LETTER, which advises and
helps thc survivin., g famil.y members...
without forcing mere to Go c..e~n mings.
The FINAL LETTER should include:
0 thc location, dates, and idenn'fication
numbers (where apprel~.'..'.ate) or important
documents, including wills and u'usts;
property deeds and _titles: .{~.omisso. ry
notes receivable and payante; mortgages,
bonds and nther investments, insurance
contracts of all kinds (personal and
business), business agreements and
succession plans; all pension and benefit
plans; IZior income tax returns; military
discharge papers; marriage and birth
certificates
0 thc names, addresses, and telephone
numbers of key people including clc~kgY,
partners, auomeys, accountants, stoc
Drokers, insurance agents, Uust officers,
0 preferences and instructions for last
rills and burial; who should be informed
Cl yourp~ilosophy about management of
property and investments in thc future,
including thei~ retention or disposition --
who should be involved, how, and why
If you decide to have a FINAL LETTER,
make sure that you stall that it is written
to supplement your wills and other formal
estate planning documents and not to
amend them.
If you would like a complimentary copy
of a blank FINAL LETTER, please call
me at (612)8~t-~$10. ·
JANUARY 1994
THE MULTI HOUSING ADVOCATE 7
BIERSDORF
How to Take Advantage of
Minn. Stat. § 273.1317:
A Procedural Overview to
Low Income Housing Conversion
by Daniel J. Biersdorf & Daniel G. Lugo
Biersdorf & Cameron, P.A., Minneapolis
Ara percent housing, as classified by Minn. Stat.
2.3
class
rate,I
low
income
273.1317, enjoys a significant tax advantage over normal market oriented
housing. This advantage was given by the legislature because rents for subsidized, or
low-income housing, were assumed to be lower than rents for market oriented
housing. However, owners wishing to have their property valued at the iow income
property class rate, whether they be individuals, partnerships, or corporations, first,
must establish that the property in question meets certain criteria and, further, must
follow certain procedural guidelines,
before any benefit can be maintained.
This article is presented to assist the
investor with identifying the properties
which can potentially benefit from the
low income housing class rate, determin-
ing what criteria is necessary to establish
that a property is a low income housing
property, and identifying the procedural
steps which a taxpayer must follow to
accomplish the goal of benefiting from
the 2.3 percent class rate.
The valuation of ,Cc property begins with
the provisions outlined in Minn. Stat.
273.13, subd. 25(c). This section
identifies eight categories of class "4c"
property. Although all of the properly
contained in these eight categories will
have a class rate of 2.3 percent of market
value, for our purposes, the focus here
will be limited to those properties
classifiable as low-income properties
under subd. 25(c)(3)(iii)?
Subdivision 25 (c)(3) of Section 273.13,
provides that Class 4c property includes
a structure that "meets the requirements
of section 273.13." Subsection
273.1317. entitled "classification of 4c
property; low-income housing," repre-
sents an alternate means for the accom-
plishment of low-income housing
classification for structures that do not
meet the complete requirements for a
low-income housing credit under section
42 of the Internal Revenue Code.3
To qualify for Iow-income housing
treatment under sec. 273.1317, the
property must meet three requirements:
1) there must be rent restrictions and
income limits, 2) the structure must be a
new or rehabilitated building, and 3)
there must be an agreement between the
owner and the local housing authorities.
Rent Restrictions and Income
Limitations
Property owners desiring to lake advan-
tage of the "1317" provision, must
irrevocably elect to set aside, and actually
set aside, a certain amount of rental units
for Iow-income tenants. Under the
Minnesota provision there are two
possible minimum set aside tests, either:
I) 20 percent or more of the residential
units in the project must be both rent
restricted and occupied by individuals
whose income is 50 percent or less of
area median gross income? or
2) 40 percent or more of the residential
units in the project must be both rent
restricted and occupied by individuals
whose income is 60 percent or less of
area median gross income.
In the application of this election, the
legislature has determined that "rent
restricted units" and rent restriction shall
be defined and limited by section
42(g)(2) of the Internal Revenue Code.
This provision provides that a residential
unit is rent restricted if the gross rent s
with respect to such unit does not exceed
30 percent of the imputed income
limitation applicable to such unit. The
Revenue Reconciliation Act of 1989
modified the "gross rent" provision of
Section 8 of the Federal Housing Act of
1987 by requiring four steps to obtain the
gross rent calculation. The first step
requires an imputation of the number of
LUGO
persons deemed living in each unit,
assuming that each bedroom houses one
and one-half persons. The second step
requires a computation of the average
Section 8 very low-income figure for the
number of persons determined in the
first step. An average is computed since
the number of persons in the fa'st step is
based on multiples of 1.5 while the
Section 8 very-low income figures are
based on family size expressed in whole
numbers. The third step requires that the
amount calculated in the second step be
multiplied by 30 percent. This amount is
the maximum rent that can be charged
for that unit. Finally, a family's income is
compared to the Section 8 very low-
income figure to determine ff it qualifies
to rent this unit.
For example, if in Minneapolis there
exists a three-bedroom unit and the
section 8 very Iow-income figures for a
family of four is $24,800 and the Section
8 very-low income figure for a family of
five is $26,800. Under these circum-
stances, the unit is deemed to house 4.5
persons (1.5x3), and the annual rent
charged can not exceed $7,740, or $645
per month (i.e., $25,800 [the average of
$24,800 & $26,800] multiplied by 30
percent). A family of five qualifies to
rent this unit if its income does not
exceed $26,800 while a family of four
qualifies if its income is less than
$24,800.
In situations where the income of a
tenant, or tenants, rises above the income
limitation, such unit shall continue to be
treated as a low income unit if the
income of such occupants initially met
such income limitation and such unit
continues to be rent restricted. However,
unlike in the past, the Minnesota Legisla-
ture has tightened the reigns on just how
countined next page
THE MULTI HOUSING ADVOCATE 9 JANUARY 1994
LOW INCOME HOUSING
CONVERSION continued
far inc~ases in tenant's income can go
and still maintain ,lc classification.
Before 1992, the income ora tenant could
rise above 140 percent of the income
limit, as long as the next available unit
was rented to a low-income tenant. In
1992, section 273.1318 was enacted
requiring that only those units occupied
by a household whose income is 100
percent or less of the county or area
median income adjusted for family size as
determined by the department of housing
and urban development are eligible for 4c
classification.
The Structure: a new or rehabilitated
building
To qualify as a low-income housing unit
under section "1317" a building must be
1) a new building, the original use of
which begins with the owners or develop-
ers of the building, or 2) an existing
building with respect to which rehabilita-
tion expenditures have been paid or
incurred by the owner or developer and
that such expenditures are allocable to 1
or mere low-income units or substantially
benefit such units. Further, the legisla-
ture has determined that to qualify as a
rehabilitated building, the rehabilitation
expenditures must meet the requirements
of section 42(eX3)(A) of the Internal
Revenue Code.
In the Federal Revenue Reconciliation
Act of 1989, Congress amended its earlier
ueatment of rehabilitation expenditures.
Before the RRA '89, rehabilitation
expenditures qualified under sec. 42 as
long as the qualified basis atUibutable to
lhcse expenditures during any 24 month
period averaged at least $2,000 per low-
income unit. Congress, concerned that
the definition of rehabilitation expendi-
tures allowed a credit to be taken whcrc
there was relatively low expenditun', per
iow-income unit, modified this role by
requiring that "sutstantial rehabilitation"
expenditures be equal to the greater of 1)
10% of the adjusted basis of the building
or 2) $3,000 of qunlified basis per low-
income unit.
The Agreement
Subdivision 5 of section 273.1317
provides that
"the owner or developer of the low-
income unit must execute an agrec-
ment with the local housing and
redevelopment authority, or other
authority as provided in subdivision 7.
The agreement must be for a term of
15 years. Thc agreement must
provide that the requL, ements of
subdivision 3 will be met during the
term of the agreement. The agree-
ment must provide that the owner or
developer must maintain and make
a~iln__hle to the authority the informa-
lion and records thc authority consid-
ers necessary to monitor compliance
with the provisions of this section, in-
cluding rents, the incomes of tenants,
and thc number of low-income units
in the building."
The terms of this provision are self-
explanatory. In general the regulatory
agreement allows the Housing and
Redevelopment Authorities to monitor
the owner's compliance with the Occu-
pancy Requirement and the rent restric-
tions. It also requires, that for a term of
fifteen years, that the owner mainlain and
make available to the HRA the informa-
tion and records considered necessary by
the HRA including rents, tenant incomes,
and the number of low income units in
the building. Also, many of the agree-
merits will specify the desired means for
properly account management, tenant
qualifications, aft'mnative and negative
covenants, and the disUibution of income
The Local Housing Authority
The process of simply identifying
the proper local housing authority
to contact remains a somewhat
confusing and tedious stumbling block to
the accomplishment of a quick low-
income housing conversion. Since its
recent enaclment, counties have reluc-
tantly and begrudgingly moved to
-implement section "1317" 's mandate to
set up a county adminLm~or to oversee
the new classification. For those taxpay-
ers that live in a county where an actual
housing and redevelopment authority
exist, deennining who to contact is
simple - contact the housing and redevel-
opment authority. On the other hand,
those taxpayers who live in jurisdictions
without such aulhorilies will have to
make a substantial number of telephone
inquiries to find out the l~oper contact
authority.
DEADUNE FOR THE NEXT
MULTI HOUSING ADVOCATE
IS JANUARY 10TH
Subdivision 7 of the section gives the
laxpayer some guidance on who to
contact in these conversion situations. In
general, first fmd out if there is a local
housing and/or redevelopment authority.
If not, next check for a county housing
and/or redevelopment anthodty. If in
your county, this amounts to two strikes,
it then becomes the county's mandated
duty to appoint the administrator of
section 8 certificates in the county, or
another qualified person or entity to
perform the duties of adminisUating
section "1317. ''s From our practical
experience, it seems that in jurisdictions -
without housing and redevelopment
authorities, the county assessors will be
required to avail themselves to perform-
ing these duties.
Whoever, or whatever body or person
that lny at the end of this search, under
subdivision 6, shall anm~nlly review
income and rental information and
records maintained by owner or devel-
oper and determine such owner's
compliance with thc requirements of
section "1317." Further, and perhaps
more importantly, this entity will be
responsible for reporting to the assessor
responsible for assessing the property at
the time and in the manner required by
the assessor.
In conjunction with this section, Section
273.1318 requires some further reporting
procedures. The section provides that a
governmental agency providing finance
or mortgage insurance for a building
qualifying as class 4c properly, or other
entity, must annpnlly review income
records maintained by the owner of the
property to determine the units that
qualify for a class 4c rate under section
273.1318. The income records retained
by the owner must reflect household
income at the commencement of the
tenancy, and thereafter, when household
composition changes. Further, this same
entity shah report to the assessor respon-
sible for assessing the property at the
time and in the manner required by the
assessor,v From this report, the assessor
shall determine the units which qualify
for 2.3 percent class 4c tax rate.
Noncempliance
Subdivision 8 of section "1317" provides
and specifies the penalty that a taxpayer
will incur as a result of not complying
wi~h the requirements of the section
during the life of the agreement. Under
this provision, if the assessor determines
that requirements of the section have not
been met, for any period during which
the property benefitted from low-income
classification, an additional tax will be
counlined ~e~ page
THE MULTI HOUSING ADVOCATE
11
JANUARY 1994
LOW INCOME HOUSING
CONVERSION continued
imposed. The additional tax will be
equal to the low income tax which was
originally assessed plus the tax which
would have been imposed if the property
had no! been classified under section
273.13. subdivision 25(c). or whatever
the applicable tax rate would have been
without a low-income status.
Valuation Issues
There are a few important things to note
in this discussion of properties classifi-
able as 4c Iow-income housing units.
First of all. the favorable tax treatment
only applies to the structure. The land
upon which the sU-ucture is built will have
a normal apartment class rate. Taxpayers
and property owners should be mindful to
pay attention to how the assessor sepa-
rates the land and building values, as this
will affect the final tax bill. Second, as
provided by recently enacted section
273.1318, the favorable tax treatment
only applies to the properties in the
proportion in which they are occupied by
qualifying iow income tenants.
In an attempt to counterbalance, the class
rate tax advantage held by Iow-income
properties, the legislature has also
directed how the market value should be
determined by the assessor. Under Minn.
Stat. 273.13 subd. 25(c)(3), all low-
income properties' market value shall be
determined by the assessor based on the
normal approach to valuation using
normal unrestricted rents. In the case
law, the Minnesota Tax Court has held
that the term "unresa'icted rents" means
market rents.
In 1991 the Minnesota legislature
amended subdivision 25(c)(3) of 273.13,
to allow owners of low-income proper-
ties to elect to have their market values
determined by using "restricted rents."
Although the meaning of "restricted
rents" is not explicitly defined in section
55, it seems clear from the remainder of
the statute that the term likely means
actual rents being charged under the
subsidized housing cona'act.
While the determination of a potential
gross income from "restricted rents"
should be relatively easy, the calculation
of the remaining components of an
applicable income approach may prove
to be significantly more challenging.
The statute is silent upon questions of
vacancy rates, in relation to subsidized
or non-subsidized, expenses and capitali-
zation rates.
Before we travel too far afield into this
issue, we must first realize that it is of
minimal relevance to a low-income
housing conversion. The reason why a
section 55 election should not be of
concern at this point is because it
requires that the entire structure be
occupied by the respective low income
or other targeted population, The
proportional occupancies envisioned by
section "1318" are not applicable.
To Be A Non-Profit or Limited Divi.
dend Entity or Not To Be: Conflict
Over An Obvious Question
As a result of some poor statutory
construction, there remains an issue
concerning whether or not the taxpaying
party applying for a section "1317"
classification must be a non-profit or
limited dividend entity. When looking
countined next page
THE MULTI HOUSING ADVOCATE 13 ~IANUARY 1994
LOW INCOME HOUSING
.CONVERSION continued
at ~e statuto~j language in its corr~t
context it appears conclusive that such a
mqui~ment is not relevant to thc election
of one's lm~ for low-income housing
status. Minnesota Statute 273.1317 subd.
25(c)(3) is broken down into two con-
fusingly written paragraphs? The fhst
paragraph outlines those types of struc-
tures that can qualify for the class 4c tax
rate. While the second paragraph,
describes the fights of a non-profit cr
limited dividend entity to elect to have
their properties valued using restricted
rents. Even though the viewpoint is not
GOOD
NEWS
· LaSalle l~tnnagement Group LM.,
has been appointed managing agent for
Epiphany Pines in Coon Rapids. The
planned 107-unit senior rental commu-
nity, sponsored by the Church of thc
Epiphany, is expected to be ready for
occupancy this summer. LaSalle
Development Group Ltd., has been acting
as the developer consultant since the
project began construction.
Under construction in Seattle, Washing-
ton is a 123-unit senior cooperative.
LaSalle Management Group Ltd., is the
developer consultant on the project and
LaSalle Development Group., Ltd. is thc
marketing and managing agent. The
completely sold-out development is
scheduled for occupancy in March.
Two existing properties have also
awarded the management contract to
LaSalle Management Group Ltd.: Irving
Apartments, a 26-unit market rate
property located near Lake of the Isles in
Minneapolis, and Canary Hill Apart-
ments, a 90-unit market rate apartment
community in Maplewood.
· Construction Consulting and
Inspections, Ltd. recently joined MHA.
CC&I's president, John Russo, has been
very active over the years with the
Community Associations Institute (CAI),
writing a column in their newsletter and
presenting seminars tm siding, roofing,
painting and other maintenance and
replacement components. CC&I already
works for several MHA management
companies and is available for various
problem solving, as well as specification
~tion, bidding and inspection of aH
apartment building components. ·
persuasive, d~re ar~ county administra.
t~s that iusist that to qualify under the
first paragraph, for a 4c class rate, that
aH property owners m~t be a noR-profit
or limited dividend ~ty. Onc~tgaln'~
after a plain reading of the statute, it is
clear that the clause in the second
paragraph, rexluiring that the clause is
only applicable to non-profit or limited
dividend entities, only modifies the
section concerning the election to use
Conclusion
All in aH, Minnesota Statute Section
273.1317 is pretty straight forward in its
language and interpretation. If an owner
is comfortable electing to meet the re-
quirements of the section for 15 years,
section "1317" and its applicable 2.3
percent tax rate may provide significant
property tax advantages. Further, it
would appear that with mor~ time,
counties will make further progress in
ensuring that the proper authorities are
avnilable to agree upon, enforce and
oversee low-income housing conver-
sions. The economic test to determine
whether a conversion is appropriate for a
given property is whether the likely loss
in rent restriction is offset by the tax
savings from the low tax rate. In certain
market owners may f'md that the conver-
sion is not economically feasible. ·
1. Miim. Stat. § 273.13 mlxl. 25(cX8) pro,ding that:
class 4c prepeny has a ~s ~ d Z3 ~ of~ v~.
2. ~ ~difi~ m ~ l~-i~e ~s~ ~s, ~ is ~e subjm of ~s ~i~, ~ ~ ~o ~r
~ ~ ~s w~ fit ~ ~ m~ ~ ~f~fi~s of ~ 2~(c). ~ tint is ~fit
~ ~i~ d~d mi~s
~ wi~ ~ H d ~ N~ H~ ~ ~ ~ ~fm~ ~ ~e ~ ~s~ fmm~ agm~
hw M 1971. ~
~ ~ ~e f~ ~ ~ qms. ~ S~ ~. 273.13, s~. 25(c~1). ~ ~d ~ of
~ h ~ 8 ~ U~ ~s H~hf A~ M 1937. ~e~ s~s ~ ~ifl~ to s~idi~
~ ruder
s~. ~. ~ ~. 273.13, su~ ~(c~).
3. U~r M~ ~. ~c. 273.13 ~ 25(c~3), ~ l~-h~e ~hgs ~ ~m~ h ~i~
42(c~)
M. ~ ~e ~ Re~n~ ~ ~iv~ ~e ~efit ~ ~ ~s~fi~ ~, ~ A. ~g~ & B~
BiM, T~ N~ ~-I~ Ho~ing Cred#,
hMm~ ~v~ue ~e.
4. ~ 273.1317, ~. 3(a~ 1); "A~ m~M g~s h~" m~s ~ ~i~ ~s i~c as
~e~ ~ ~ Uni~d Sa~s ~ ~ H~shg md U~ ~l~mt ~r ~i~ 142(d~)
5. h ~ ~ ~M~ ~t "~s ~t" h~ m~ties ~d ~ ~ t~ ~r ~ ~l~e, ~t
d~s nm ~lu~s ~er ~ 8 M ~e U.S. H~s~S A~. S~c~y, ~e hM~ ~v~ue
i) ~s nm ~ my ~t ~r ~ 8 ~ ~ U~t~ S~s H~shg A~ of 1937 or ny
~e ~ m~ ~.
fi~ ~r ~ 8
fii) ~ M ~ ny f~ f~ a m~ ~ ~ b ~d m ~e o~ ~ ~e ~t (~ ~e ~is
~ ~e ~-~ ~s ~ ~ ~ ~ ~ ~t) ~ my I~~ p~ of ~sis~...
~e ~ ~ ~
~e~ ~ ~ ~ ~r ~m 8 M ~ U.S. H~ A~
6. M~. S~ ~. 273.1317
~el~t
O) · qualif~d low-income buildin~ as de£med in section 42(c)(2) of the Internal Revenue Code...tlm
~ec~ives · low income-housing c~dit under section 42.... or (ii) meets the ~v. qui~nenta of that nectien
and ~ueives imMic financing..., or (iii) meets the t~lui~ments of section 273.131'/. Classificatien
pursuant M this clause is limited to a lmm c~ 15 years.
For aH properties described in clauses (1), (2), and O) md in paragraph (d), the madte~ value determined
by the assessor must be based on the normal approach W value using noflnal un~stficted f'~nts unless the
(emlaimaia-~ded) -.-r ~ ~ -- r...P=~l ~ · =~r~ms w limited dl~dmd
MULTI HOUSING ADVOCATE 14 JANUARY 1994
Succession & Transfer Tips for the Privately-Owned Business
INIMIZE YOUR CHANCES OF
AN IRS AUDIT
by Mike Henning, Henning Family Business Center
Decemberand January is that time of
year
when
business
owners
across
America are scrambling to take advantage of every possible tax break before
the new tax season arrives. Choices need to be made with regard to deductions, in-
vestments and income. Many such choices may not always fall within the clear-cut
borders of black and white--but much ends up in the gray area. This area tends to
create anxiety and risk of an IRS audit.
Before you begin to worry that the Internal Revenue Service will come knocking on
your door to question you about your lax return, I recommend that you lake the time
to understand who gets audited and why.
Who Gets Audited?
There are more than 100 million individ-
ual tax returns f'ded each year and the IRS
audits about a million of these annually.
The higher your income, the greater the
likelihood of your lax return being among
the million that are audited.
Your audit risk also varies depending on
the type of tax return you t-de. Although
two-thirds of all lax returns filed are in the
Form 1040 family, the IRS allocates more
of its resources to look at non-Form 1040
returns, such as those for S corporations,
gift taxes, estates, and regular corpora-
tions. That's because the IRS has found
that these groups of tax filers are less
likely to be in compliance with the tax
law than other filers, and are more likely
to owe a hefty sum of back taxes.
Targeted Taxpayers
Although you don't know with any
certainty which groups will be targeted
by the IRS this year, your chances of
ANNUAL GIFTING
H'ow would you like to gift $15,000
in company stock, partnership
. interest or property, receive a 33
percent discount, and meet the $I0,000
gifting limit? In case you haven't heard,
the IRS has backed off of its previous
ruling indicating that it would only allow
a minority discount within a family if
there is evidence of family discord or the
family is not acting as one unit. The new
Revenue Ruling 93-12 states: '% minority
discount will no longer be disallowed
solely because a transferred interest, when
aggregated with interests held by family
members, would be part of a controlling
interest. Translated: If you die holding
controlling stock in your company, it will
be taxed the full amount. If you die
holding minority stock or gift stock
during your lifetime, you maybe taxed on
as little as 60 to 65 percent.
BUSINESS ASSETS: Give away per-
centages of stock to each child until all
has been given. To retain control of the
corporation or parmership, simply
1 reeapitalize, tax free. and retain the voting
PROGRAM REVISITED
stock or in the case of a partnership, the
general parmers control. Taxes will be
calculated on the discounted amount only.
INVESTMENT ASSETS: Real estate and
other investments, less marketable securi-
ties, are discountable under this ruling
when placed in a family limited partner-
ship. We recommend you retain control as
the general partner, but gift minority
° interests of the assets held in the partner-
ship.
GRANTOR RETAINED ANNUITY
TRUST: If you are organized as an S
corporation, set up a GRAT, and then give
minority stock at a discount to the trust. At
the end of the term of the trust, the balance
will go to your children or the beneficiaries.
RECOMMENDATION: If you want to
take advantage of this new ruling, it would
be smart to act soon and often. Already a
proposal has surfaced to rescind the new
ruling. Make an appointment with a
qualified appraiser, your local tax advisors,
then proceed with the technique or combi-
nation that is right for you.
being audited are likely to be higher if
you're in any of the following groups:
Self Employed. If you don't collect your
salary from an employer, your chances
of being audited may increase signifi-
cantly.
Individuals with cash income. (restau-
rants, parking lots) If your type of
business Iraditionally receives cash
payments. Uncle Sam may audit your
return and ask for additional substantia-
tion of income and expenses.
Employees who deduct excessive travel
and entertainment business expenses.
Since the IRS has detected a substantial
number of returns with improper busi-
ness write-offs, the level of these
deductions on your return may wave a
red flag to the IRS.
Individuals who receive alimony
payments. Your former spouse is
required to report your Social Security
number when claiming a deduction for
making alimony payments to you. This
may cause the IRS to take an exU'a look
at your tax return.
Charitable contributors. Inflated re-
ports of charitable conlributions have
prompted the IRS to look more closely at
returns with high charitable deductions.
Individuals who were previously
audited. If you had to make large
adjustments to a previous year's tax
return as a result of an IRS audit, chances
are that you may be hearing from the IRS
again in the future.
The Computer Selection Process
Most of the returns selected for audit are
chosen as a result of a computer analysis
that compares the deductions, exemp-
tions, and credits you claim with those
claimed by other taxpayers in your
income category. Each mx return is then
given a score. Ten percent of all tax
continued next page
THE MULTI HOUSING ADVOCATE 15 JANUARY 1994
ALL I*N THE FAMILY continued
returns - those with the highest scores -
a~ then reviewed by IRS examiners who
ate responsible for deciding which
mums should actually be audited.
Factors that may affect the examiner's
review of your return include the
following:
· Size of an item relative to other items
· An item on the return that is out of
character for the taxpayer.
· An item reported in au inappropriate
· An incomplete return that fails to
include proper schedules or other
information.
such as wporfing business income, but
not paying sell-employment tax.
There are no sure-f'we ways to avoid an
IRS audit on your tax return. However,
you can reduce your chance of an audit
if you report all income, check your
mum carefully and properly complete
and attach all schedules. If you do get
audited, the best defense is to have
documentation (1099s, receipts, etc.) for
all items on the return and an explana-
tion for unusual items. Taxpayers who
have orderly, coherent records have a
much easier time with an audit. ·
Thi~ article jrtr~t appeared in Mil~ Henning's
Family Firm Advisor newsletter;for more
information call 217-342-3728.
CURB APPEAL
Question: Do consumers react differ-
ently to outdoor advertising?
Answer: Researchers at the University
of Alberta found that when people are
out in the world, they are ~ifferent.
They are in more of an escapist mode
and their senses are more alert.
Tip: Outdoors, they need stim.lation to
divert, entertain and occupy them.
Adweek, 1515 Broadway, N.Y., NY 10036
Refrigerant/CFC
Update
by Mike Lahti, Frank Refrigeration, Inc.
The EPA has published in the
"Federal Register" the final rule
implementing Section 608 reg. lafions of
the Clean Air Act Amendments of 1990.
These regulations have established
several deadlines that you should he
aware of. I am stating only rules and
regulations that affect small appliances
such as water coolers and dehumidifiers.
Larger refrigeration syst~ns have mote
stringent rules. II you perform refrgeva-
tion repairs, you must be awa~ of the
current regulations.
· Suly 1,19P2. Prohibition on venting
refrgerant. It has been illegal to vent
refrigerant while servicing or repairing a
unit since this date.
· 0, July 15,1~$. Technicians opening
refrrigeration systems must tn'st evacuate
the refrigerant to a recovery/recycling
unit. While evacuating small appliances
(less than a 5 lb. ch~¢) the evacuation
level depends on the compressor status.
If the compressor runs, recovery unit
must achieve a 90% evacuation level (0
PSIG). If the comp~ssor is not operat-
ing, you must achieve an 80% level.
Also, if you dispose of a refrigerated
unit, you must recover the refrigerant in
an approved method ~r verify that the
salvaging company will z~.over the
refrigerant.
· August 12,1~95. It is illegal to e~en
a system for repair, or for dispe~ of a
unit, if you have not certified to the EPA
that you own an approved recycling/
recovery device.
· No~ember 14, 1994. Refrgeralion
technicians must be certified by the EPA
to work on refrigeration equipment. The
certifying organization cannot issue
certificates unless its' program has been
EPA approved.
It appears that then: Will he tluee
different tests, each covering a specific
type of application. Technicians
repairing water coolers will only need to
take the Type I Household (small)
Appliance Test. It is a non-proctored
test that will allow small appliance
certification by mail.
Refrigerant can only he purchased by
companies that l~ive certified technicians
on staff. An individual purchaser
doesn't have to be certified but he must
have evidence that servicing technicians
from the same company have been
certified.
At this time, the EPA does not expect to
institute a recerfification program but
they are leaving their options open.
The EPA is grandfathering recycling and
recovery equipment that was purchased
prior to November 15, 1993. This
means that if you have already pur-
chased your ~ec. overy/recycling device, it
is not required to be certified as long as
it meets the EPA levels of evacnntion
that have been established. The Eheo
model EPRE Refrigerant Recovery
Device exceeds the EPA standards set up
for small appliances so all EPRE units
will be grandfathered fix the life of the
If yo# need a c. are~ter, mainttnance .~er~, man~er, re~tal asewt or property manager, plmse call the MHA
o~ce and regtzt~ yoar need. As applicants call ~, we will notify you; thee it no charge. To iisi a position
wanted or an employment opportunity, call Jemifer ~ 927-8602 far a form; two con~cutive I~ings for $15
paid with submission of ropy; no billings.
PROPERTY MAINTENANCE/REPAIR PERSON WANTED: Small, teal estate investor wants energetic and responsible
handyperson to trade their skills in return for 50% of net profits and/or ownership of current and future properties. No cash
investment required -just your time and talents. Long-term commilment a must! CMl Steve for details at 649-2811.
PROPERTY MANAGER POSITION WANTED: Experience includes aH phases of residentlnl management. For resume
please write: P.O. Box 29422, Minneapolis, MN 55429. ·
HE MULTI HOUSING ADVOCATE 16 JANUARY 1994
Getting to Know Your Lease - All Adults Sign
AND
Your Lease Terms- How Much?
by Donna Hanbery, Hanbery, Neumeyer & Carney, P.A.
This column is part of a series of columns that examines apartment leases (or renlal agree-
ments). The first part of this installment discusses who should sign your lease and how you can
make sure that all the tenants in your building are subject to its requirements; the second part
discusses the rent and other charges your lease should impose.
Itis important to make sure that all adult tenants in an sign lease.
apartment
your
Although you have responsibilities, imposed by law, to every person living in your
building, a tenant will have few obligations to you unless that tenant has a lease with
you.
By having each adult occupant of an apartment sign the lease, you can make sure that
each one is fully responsible to you for the rents, and any other charges, due. This is
accomplished by having a clause in your
lease that states that each tenant is
"jointly and severally" liable for all
amounts due. This makes it clear that
each tenant is individually responsible
for all rents and charges under the lease
and not just a proportionate share.
This joint and several liability proves
useful when collection efforts become
necessary. It allows you to obtain a
judgment against each tenant for the full
amount due. If one of the tenants is
working, and the other is not, you can
collect the full amount of your judgment
from the employed tenant and let that
tenant go after the other for his share.
Each adult living in an apartment should
sign your lease personally. Avoid
situations where one spouse signs the
lease for the other. Husbands and wives
should each sign your lease separately.
That way. in the event of a divorce or
separation, each is responsible for
performance of the lease and you will
not get caught in the middle of your
tenants' domestic problems. Similarly,
adult children should not sign for their
parents or vice versa, and one roommate
should not sign for their co-roommates.
To make sure thai each occupant of your
units is a party to a lease with you, your
lease should contain a term providing
that no person may occupy a unit, other
than the tenants and the children of
tenants who have signed a lease, without
your written approval. This type of
provision gives you the fight to monitor
who is living in your building and to
insist that all "permanent" guests of your
tenants sign a lease. By enforcing this
provision, you can avoid problems like
the following: Tom rents an apartment
and signs a lease. Tom's girffriend, Judy,
moves in but does not sign a lease. Tom
and Judy have a fight and Tom moves
out. Two months later Judy stops paying
rent and the owner discovers he has a
problem. Tom has been gone for two
months, and the owner realizes he has a
"new" tenant who does not have a lease.
The above problem, and situations like it,
become aggravated when the owner
realizes he does not even know the name
of the tenant living in the unit. When the
name of the occupant, or occupants, in an
apartment are not known, it is more
difficult to bring a successful unlawful
detainer proceeding. If there are two
occupants of an apartment, and you only
bring an unlawful detainer proceeding
naming one of them, you may only
succeed in having one of them moved out
and it will be necessary to bring another
unlawful detainer proceeding against the
remaining tenant.
It does no good to have a fantastic lease
if your tenants don't sign it. In this day
SEMINAR ON LEASES ~'~
January 18 ~. Coil 927-8602
of changing life styles and living arrange-
ments, it is important to make sure that
each occupant of your apartment signs
your lease and agrees to be individually
responsible for complying with its terms.
YOUR LEASE TERMS - HOW
MUCH?
Your lease should clearly show the rent
the tenant is required to pay for his
apartment and any other rents or charges
imposed. If there is a separate rent due
for garage use or parking space, your
lease should plainly show that this is an
extra charge so as to prevent tenant
confusion that garage, use or parking
space is included with the apartment.
Your lease should show what utilities
and services are included in the rent and
those that must be paid separately by the
tenant. In most buildings, the owner
pays for heat and water and the tenanl
pays for electricity and phone service.
As energy costs rise, many owners are
considering the use of a lease provision
that requires the tenants to pay a pro ram
portion of the building expenses for
utilities and taxes or that permits the
owner to raise the rent if his operating
expenses increase a fixed percentage
over the expenses that existed when the
lease was signed. Although these
methods of passing operating expenses
onto the tenant are commonly used in
commercial leases, they present difficul-
ties in administration and enforcement
for residential owners. Perhaps the chief
benefit of this type of lease term is to
give you the fight to increase an other-
wise fixed rent should your operating
expenses increase significantly.
Many leases impose a service charge or
late charge for rents paid after the fu'st
continued next page
THE MULTI HOUSING ADVOCATE 21 JANUARY 1994
Your Involvement Critical to SUccessful Program
PLUS
PLYMOUTH FEES DROPPED, BROOKLYN PARK COALITION, AND MORE
by Steve Johnson, MHA Director of Municipal Affairs
The more 0tings change, the more
they remain thc same. I'm not sure
who to attribute that quote to,* but it
seems appropriate to what is happening
within government relations at MHA.
TAe mor~ tAings cAange...
As most of you know by now, I am the
new Director of Municipal Affairs for
MHA. This is somewhat of a departure
from the past and is an effort to make
MHA more proactive in the different
municipalities, especially within the Twin
My charge is to build on the gaucture that
is already in place to provide information
TRIALS & ERRORS
to our membership about upcoming
issues that effect the multi housing
indust~. I will also be providing
information to the public policy decision
makers who create, enforce, nnd
maintain multi housing rules and
procedures.
Since it is at the municipal level that
most of thc issues effecting multi
housing are introduced or enacted, we
*(Alphmsc Ka~, 1808-1890 *Ed.)
opening devices; court costs and
need to better educate the decision
makers at this level. I will be working
on this "grassroots' approach for the
next several months.
I receive many of the agendas, minutes,
and meeting notes from city councils and
planning commissions. I have been
contacting local officials, building
owners, managers; whomever I think
will effect, or be effected by policy in
the future. I have received positive
ct~tinued ne~ page
continued
day of the month. A common lxovision
requires payment of a hte charge when
rents arc more than five days past duc.
Although this particular provision can
have the unfortunate effect of causing
tenants to regularly pay their rent five
days hte, some type of service charge is
useful to deter slow payers. One way to
avoid giving tenants five "free" days a
month, is to have a late charge of $1 or
$2 a day for each day thc rent is late up
to a maximum fLxed amounL Late
charges generally run between $10 and
$25. To be enforceable, late charges
probably should not be too large. Such
charges are supposed to be reasonably
related to the extra costs in coUecting
and ln~cessing late rents and a large fee
will not be upheld by the courts.
Other charges you tony want to provide
for in your lease include the following: a
bad check fee for checks that a~
returned by the tenant's bank; charges
for replacing lost keys or garage door
aucmcy's fees for expenses incurred in
enforcing thc lease terms or in evicting a
tenant in an unlawful detainer proceeding;
re,pair charges permitting you to charge
thc tenant for any repairs that must bc
made as a result of damages caused by
thc tenant; and special service charges
such as a token charge imposed when
tenants forget their keys and require thc
caretaker to let them in at 2:00 a.m.
Traditionally, the amount of rent an
owner can charge is limited only by
what the market phce will allow. Where
government subsidized housing is
rent that can be charged. To take
advantage of changes in government
regulations, leases for government
housing should permit the owner to
incr~se the rent when the maximum
fixed by regulations is changed.
Other legal and practical comiderafions
may effect the rents youcharge. From a
pruclical standpoint, ndministrativc and
"political" problems arise when tenants
with similar tlnits am paying dissimilar
rent. If Joe in unit I finds out that Mary
was able to avoid a rent increase by
telling thc owner, Sue', a hard luck story,
the odds are good that Joe and other
tenants in the building are going to feel
that the rent inc~ases shouldn't apply to
them. A more serious problem is
presented when unequal rents are charged
and one or more of the tenants being
charged higher rents is a member of a
protected category.
State, federal, and local laws prohibit
discrimination in housing on the basis of
age, race, creel, color, religion, sex,
ethnic origin, affectional preference,
marital status, or physical or mental
disability. If you give some of thc tenants
in thc building a break on thc rent because
you like tbem, you may be subject to a
discrimination suit requiring you to prove
that any tenant in one of the above classes
that is being charged your "normal rent"
is not bein8 discriminated a?inst because
they arc a member of a given group.
Unless there arc compelling laersonal
rea.sons for you to differentiate among
your tenants or there are business reasons
for making a differentiation, such as
tenants who will sign a lease and those
who won't, it is generally best to charge
rents in accordance with a uniform
schedule based on thc size or desirability
of the units rented. ·
THE MULTI HOUSING, ADVOCATE JANUARY 1994
J~ MUNICIPAL AFFAIRS
I~ continued
feedback from all parties. I look forward
to hearing your ideas. I will be contacting
many of you over the next few months for
your input. Please do not hesitate to
contact me with ideas in general, and also
on any breaking developments in your
area. Let's show the public that multi
housing is an important and viable part of
any municipal housing plan.
·.. The more they remain the same
Unfortunately, many of the troubling
issues that have been facing MHA over
the years are still relevant today. Property
taxes are draining the life blood out of our
industry. Them seems to be an endless
amount of fees and ordinances passed by
aU jurisdictions of government. Even in
my short tenure, I have witnessed pro-
posed or implemented increases in several
communities. The owner/manager is an
easy target of these fee increases. The
general public, and more importantly the
decision makers, need to understand the
crucial role that multi housing plays in our
community. While there's a dawning
awareness of that role, as witnessed by the
positive feedback I have received from
government officials, we still have a long
journey ahead.
HAPPENINGS
Plymouth
My honeymoon at MHA lasted all of 5
hours as my first day entailed attending a
focus group meeting regarding a fee
schedule for the new Housing Mainte-
nance/Rental License Program. The focus
group, which has been meeting for about a
year, is spearheaded by Joe Ryan, building
official from the city of Plymouth, and
MHA member Steve Schachtman.
The new ordinance passed the Plymouth
City Council November 1, but due to
objections from property owners and
managers in Plymouth, the fee schedule
was not adopted. MHA members
involved in testimony and letter writing
included Steve Schachtman, Stuart
Nolan, Mike Semsch, Dave Thies, and
John Healey. Due to their efforts, the
city council advised the city official to
bring the fee schedule back to the focus
group for further consideration. The
original fee samcture would have been:
1 Family Dwelling $75.00
2 Family Dwelling $100.00
3 or4 Family Dwelling $125.00
5 or + Family Dwelling $125.00/ per
building + $6.00/per unit
After much discussion, it was decided
that one thing all parties had in common
was dwelling units, so a tentative
agreement was reached that changed the
fee schedule to the following:
1 Family Dwelling $106 per
dwelling unit
2 Family Dwelling $100.00 plus
$6.00 unit
3 or4 Family Dwelling $125.00
complex plus
$6.00 unit
5 or more Family Dwelling
$125.00 per
complex plus
$6.00 unit
The main change is the charge per
complex instead of the charge per
building and the dwelling unit charge on
all parties.
After further negotiation and lobbying in
the weeks that followed, the per unit
MULTIFAMILY WINS LANDMARK CABLE CASE
In a legal battle that has been waging
since 1987, Edward Rose Realty of
Lansing, Michigan, has won a significant
victory over mandatory cable access on
private property. The Michigan Supreme
Court ruled that municipalities cannot
force properly owners, in this case a
multifamily property owner, to grant
access to private cable companies.
Historically, cable companies have been
able to install cables on multifamily
properties because it has been deemed to
be in the public interesL
This is the fa'st time that a state supreme
court has made such a ruling and it makes
Lansing's mandatory cable access law
unconstitutional. Attorneys for Edward
Rose Realty argued that under the man-
datory access law, the city used private
property to benefit another private com-
pany.
Rose has been in court with the City of
Lansing since 1987, when it denied
Continental Cablevision access to its
buildings because it had installed its own
satellite system. Both the Lansing
Circuit Court and the Michigan Court of
Appeals ruled in favor of Rose. The city
then appealed to the Michigan Supreme
Court, which ruled the city's actions
unconstitutional.
- from Units ·
price was dropped to $4.00 per unit. The
Plymouth City Council is scheduled to
adopt this on December 20, 1993.
This effort proves that with involvement
of property owners/managers in the early
stages of a proposal, we can be proactive
and make positive changes. Although
this was not ideal, as there is still a fee
schedule, the results could have been far
more problematic. All MHA members
involved should be commended for their
hard work and commiUnent to this
project.
Property Owners/ M anag ers C oalitio n
I recently attended the November
Meeting of the Brooklyn Park Property
Managers Coalition. This group was
formed to address issues that all proper-
ties have in common.
Due to the hard work of Kris Graham,
Cam Oyen, slx additional board of
directors and others, the Brooklyn Park
PM Coalition has become a model and is
being duplicated throughout the Twin
Cities metropolitan area. Many MHA
members are involved in the Brooklyn
Park project and in other municipalities
around the Twin Cities. Other areas
where coalitions are together or forming
include: South St. Paul, Anoka County,
Richfield, West St. Paul, Moundsview,
Golden Valley, Hopkins, Brooklyn
Center, New Hope, Fridley, Coon
Rapids, Eden Prairie, Robbinsdale,
Crystal, St. Paul, East St. Paul, New
Brighton, St. Louis Park, Plymouth, and
Eagan.
I look forward to working with all of
these groups to help facilitate issues and
join in our common goals of education
and cooperation.
Cottage Grove
I spoke with Bob LaBrosse, city of
Cottage Grove, about their recently
passed inspection ordinance. He told me
he would be happy to listen to feedback
on the ordinance from our members.
Give Bob a call at 458-2800.
Oak Park Heights
It was brought to my attention by Rob
Peifer that the waste collection process
has changed and has also become more
costly. The program is on a short-term
basis, so the thought is that we can have
some effect on making the process
better. We will be working on this in
the next few months.
continued next page
THE MULTI HOUSING ADVOCATE 25 JANUARY 1994
Below-Market Loans to Family Members
May Be an Effective Method to
Shift Income
by Miles H. Locketz, CPA, Lehrman, Lehnnan & Flora
Wuhcn making loans to family members, thc interest you charge isn't entirely
p to you. Thc IRS sets the minimum rates that must be charged on inuafa-
mily loans. If you charge less, the IRS can tax you on the interest you should have
collected. For December 1993, the rates are 6.06% for loans longer than nine years,
5.07% for lnans of thine to nine years in length, and 3.83% for leans of less than
There are, however, two exceptions to these "imputed interest" rules. First, the rules
don't apply to loans of up to $10,000 used to purchase non-income producing prop-
eny. That means you could give your daughter an interest-free $9,000 loan to buy a
car without worrying about imputed
inte~st. The second exception covers
loans of up to $100,000 if the borrower's
net investment income is under $1,000.
Therefore, you could loan your son
S75,000 to f'mance his medical school
expenses at below-market rates and not
be liable for the imputed interest - as
long as your son's own investments
produce less than $1,000 of net invest-
ment income.
The present combination of low interest
rates and high income tax rates renews
the appeal of below-market intrafamily
demnnd loans. Assume, for example,
Mom and Dad (the parents) who are in
the 39.6% income tax bracket can invest
to yield 12% over the next taxable year.
The parents make a $500,000 interest
beating demand loan to their child, with
interest payable annually at the appli-
cable federal rate (the required minimum
rate) of 3.83%. The child, who is age 18
(child~n under age 14 will be taxed at
the parent's tax rate on investment
income above $1,200) has other income
sufficient to exhaust the child's personal
exemption.
The child invests the borrowed funds in
the bond mutual fund selected by the
parents. The parents will shift ~0,850 of
taxable interest income to the child in one
year ($60,000 income less $19,150
received as interest payments from the
child). The parents' federal income tax
liability is reduced by $16,177 (assuming
the interest would ali be taxable at the
39.6% rate). The child's tax on the
interest income is $8,565, thus the to~al
family income la.xes are reduced by
$7,612. Moreover, the parents have
shifted $32,285 ($60,000 - $8,565 -
$19,150) of net family wealth to the
child with no gift tax. The parents could
shift $51,435 ($60,000 - $8,565) to the
child if the interest of $19,150 was
imputed and not received. However, by
foregoing the ~ceipt of ~e interest
payments, the parents would be deemed
to have made a gift to the child. This
gift may be excluded from gift tax if the
total annual gifts from the parents to the
child do not exceed $20,000.
To the extent that part of the total return
on the invested funds reflects capital
gains on recognized appreciation, as is
usually Irue with bond funds during
periods of falling interest rates, the
income tax savings is less dramatic.
This is Irue because the tax rate disparity
between the pnr~nts and child on most of
the income is only 13% (28% capital
gains rate - 15% income tax rate) and on
some of the income there is no disparity.
However, the total family wealth
transferred is undiminished. ·
This month's Tax Facts was written by
Steven Klane, MPA, CPA. Director of Tax
Services for Lekrnum, l.~hrman & Flora.
MUNICIPAL AFFAIRS continued
Eden Prairie
A storm water utility fee recently passed
that could cost as much as $30.00 per
quarter/per acre next August or Septem-
ber. I asked Al Gray, city of Eden Prairie,
if there was anyway to reduce this fign~.
He stated that there had been public
meetings regarding this issue last summer
and aH residents or owners of property in
Eden Prairie received notices for the
meetings. For questions or clarification,
you can call Alan Gray, city of Eden
Prairie at 949-8320.
SL Paul
I recently auended a St. Paul League of
Women Voters fonun on housing issues.
One of the featured speakers was Barbara
Sporlein, city planner for the dry of St.
Paul. She spoke to the needs of the
housing stock in St. Paul, including rental.
She slated that rental housing is a major
cencern and issues reJntlng to rental
housing need to be addressed- Itis
~freshing to hear city officials talking
about prioritizing rental housing. I will be
working with her in the future on these
issues. If you have some input, please
contact me.
Fair Ho~tsing Center
The Sun Sailor reported that Charlie
Warner, housing programs manager for
Community Action for Suburban Henne-
pin, would like to start Fair Housing
Center as soon as 1994. The Fair
Housing Center would deal with such
issues as discrimination, research,
information gathering and distribution
lists, and other issues relating to housing.
Miscellaneous
I spoke with Leslie Cloud, from the San
Diego County Apt. Association, about a
study they did in 1992-93 regarding
multi housing fees in San Diego County.
They had anintem spend 3 months and
150 hours conducting research on each
municipality. The results are very
impressive and detailed. I would like to
Uy a similar project in the future with
MH~. Any thoughts or suggestions,
please give me a call at 927-8~02. ·
THE MULTI HOUSING ADVOCATE
27
JANUARY 1994
Contents for Your
Apartment Community Newsletter
by Tom Cassidy, Director, Multi Housing Services
Wnfite about your residents! Name
ames. Get articles from resi-
dents. Do spotlights, profiles, or short
interviews, list new neighbors, mention
people who attend events in the building.
Have a movie (or book or tv or CD)
review column made up of short.
informal comments by residents. Include
features residents suggest (often best
generated by asking the suggester to do
first installment).
Run items that include comments by a lot
of residents ("Answer Man"-type
formats, but keep the questions apolitical
and upbeat): "My Mom Used to Say...,"
"Holiday Recollections...," "The Worst
Snowfall I Remember...," etcetera.
Clearly features like this can be easily
tied into seasons. Additionally, it's easy
to assemble a lot of such features from a
single "survey" in which you ask
residents to answer (for possible publica-
tion) questions which spawn such
columns. Best of all, these features
happen to include several residents'
names. Their names in the news is news.
Features that might seem boring else-
where work differently when written by
neighbors... "My Friends Would Be
Surprised If They Knew that I...," "An
Old Wives' Cure that Works for Me...,"
"I Always Take Out-of-Town Visitors
to...," and on and on.
For a Resident Round-Up-style
column, always solicit usual
news (in the successful commu-
nity newsletter, this stuff is
capital N big deal News) - anniversaries,
promotions, retirements, personal and
professional accomplishments (ran local
marathon, won safety award, had poem
published, became department head ),
births, deaths, honors, appointments, etc.
Then be inventive about finding out
more, e.g. about their lives, interests,
pasts, goals; it's not uncommon to find
people who once enjoyed a degree of
celebrity in college sports, local theaters,
radio, Aquatennial, bronco busting, etc.
Ask for personal claims to fame! If
there are organized groups within your
community, like a bridge club or folks
who do exercises together, announce
their goals, activities, and participants.
Write about your residents!
This is a newsletter, not a newspaper!
Be friendly, casual, service-oriented,
CREDIBLE. Personalize! Recognize!
Names in bold type! The more directly
portion of your readership.. Generally,
fillers with broadest-possible appeal
work best (investment hints, articles
about nutrition/health, short diversions
like trivia or history quizzes, consumer
hints). Lots of well-written, timely,
copyright-flee copy is endlessly churned
out by the government (get the Con-
sumer Information Catalog they always
mention on TV by writing for it to
P.O.Box 100, Pueblo, Colorado 81002).
tied into residents' lives your newsletter
is, the more effective it is as a vehicle for
other information as well. Interview
neighbors, give them the spotlight, ask
them about their lives!
Your community might represent such a
broad range of interests, that nearly any
filler could do in a pinch as appealing to a
REMEMBER:
Write simply and directly.
Avoid buzzwords.
Be conversational without being
grammatically floppy.
Be sure your words sound
human, not institutional.
If you just want to post a list of
rules and regulations, then post
a list of rules and regulations -
don't undermine the potential of
your newsletter by making it a
litany of reprimands and patron-
izing reminders.
Write about your residents!
Sell small ads to nearby busi-
nesses - hardware stores, restau-
rants (whose delivery cars
swing in often?), tax services,
video stores, etc.
Priests are no more necessary to religion than politicians to patriotism.
- John Haynes Holmes
When selecting general interest filler.
however, avoid overdone topics; your
rule of thumb for identifying the overdone
is easy - if you're tired of heating about it.
whatever it may be, odds are so are your
residents. And ff a filler strikes
you as something that could have been
written by a resident, perhaps it should
have/ For example, instead of using
"filler" recipes, run a series of recipes
submitted by residents.
Don't forget to always include: Staff,
Office Hours, Phone/(Emergency)
Numbers. Announce upcoming events;
really play up community/networking/
social importance of building-sponsored
activities; get other items to list from the
park board, community education, nearby
theaters. If you're going to use a calendar
graphic, get an almanac to find fun, off-
the-wall historical dates. "Rent Due" and
"Rent is Late!" notes are okay, but should
not be primary focal points on calendar
(community events should be).
You can produce a newsletter unlike
anyone else's, reaching a community of
people otherwise not so specifically iden-
tified and certainly not in a fashion where
their names and interests can appear in
print. Notices and fillers are fine, but
they're only notices and fillers . a
community newsletter can be much more
when fueled by your enthugiasm for and
editorial involvement with your residents.
THE MULTI HOUSING ADVOCATE 29 JANUARY 1994
GOOD
NEWS
We encourage you to take advantage of this
column W announce your Good News. Mail
or fax (612-927-8606) all releases about
~ppointments, openings, management con-
tracls, special events (in your life ~t an
al~tment community), personal/personnel
accomplishments, relocations, awards, etc.
Good News wants to recognize you and your
company. If it's a big deal to you, it's a big
deal to m. Photos and renderings are
· An article written by John Fitzgerald,
MHA member and former board member,
has been published by the nationally
circulated Commercial Investment Real
E, state Journal. The article focuses on a
commercial exchange transaction struc-
tured and completed by Fitzgerald in
early 1993, and the savings of several
hund~d dollars in taxes by Fitzgerald's
client as a r~suit of the planning involved.
Use of elements available under IRS
Section 1031 were paramount in the
completed uansaction.
The properties involved were a 145-unit
apamnent complex and two net leased
retail facilities with an aggregate value in
excess of $4.8 million. In addition to the
major tax problem, other complications
addressed in the tnmsaction included a
parmer's death, balloon payments due,
pending f~wclosure, and the loss of a $1
million equity as a result of the troubled
The Journal is published in Chicago and
disuibuted quarterly to all designated
members of the Commercial Investment
Real Estate Institute (CCIM) and to
lenders, title companies, attorneys and
acconntants. Articles such as
Fitzgerald's, which spell out the rationale
and methodology of complicated transac-
lions, are featured for their value to other
brokerage professionals.
Fitzgerald's business, Realty Designs,
multi family and retail brokerage and
1031 lax deferred exchanging. Fitzger-
ald has been a designated member
(CCIM) of the National Association of
Realtors since 1980.
· The Sehnetl Companies, Inc. cele-
brated 25 years of excellence on Decem-
ber 8th with a suri~ party for owner/
founder Jack Se. hum. The party was
held at the Lafaye~e Club with approxi-
mately 125 friends and investors in
attendance to congratulate Jack and wish
him much success in the future. Thanks
to all who al~ended. MHA extends its
heartiest congrapdntions to Jack and his
fine stafL
· MHA Officer Colleen Carey
announces the formation of The Cor-
nerstone Group, n r~d estate develop-
ment company s. pecinlizing in multifa-
mily projects. Located at 1088 Lincoln
Avenue, St. Paul, MN 55105, Comer-
stone also provide~ consulting, project
management, financial analysis, feasibil-
ity studies and other housing-related
services. Colleen has over 10 yem's
experience in real estate development
and finance, most recently as Executive
Director of Twin Cities Housing Devel-
opment Corporation. She has worked
extensively in development or redevel-
opment of unique or dist~$ed proper-
ties. Update that directory! - Comer-
stone phone: (612) 222-2988; fax (612)
222-3226.
Patty St. Pierre has joined The Comer-
stone Group as Project Coordinator.
With 15 years of experience in the real
estate industry (and possibly as many as
a tireless MHA volunteer at every level),
she will oversee management and
consulting contracts. ·
SMALL BUILDING OWNERS
· Fixed Rate up to 25 years
· Loans from slOO,000-s750,O00
· Close in 30 days or less
· Break even O, IC to qualified borrowers
Bruce Dachis - President
6121871-6669
2828 Lyndale Ave. S.
Minneapolis, MN 55408
COI'POI~ATION
THE MULTI HOUSING ADVOCATE 30 JANUARY 1994
MINNESOTA MULTI HOUSING ASSOCIATION JANUARY 1994
S M T W T F S
2 ~ I;;~ ' 4 5 6 7 8
ORIENTATION
COMMITTEE
9 10 11 12 13 14 15
LEGISLATIVE ROCHESTER
COMMITTEE . PROGRAM
16 17 18 19 EGGS & 20 21 22
ATTORNEY EDUCATION
6-PACK OWNER
ROUNDTABLE
23 24 25 26 27 28 29
BOILER
LICENSE
30 31 ~
RENTING IS SMART.
Greater Minnesota Education Program for the Rochester Area
~Thursday, January 13, 1994~
MAKING YOUR PROPERTY STAND OUT
(100s OF GREAT MARKETING IDEAS!)
FEATURING
Lorie Danzeisen, Griff'm Company, Bloomington
Meg Thorson, Real Estate Equities, St. Paul
Sandra Majhor, Belgarde Enterprises, Minneapolis
PLUS
Jaime Pedraza, Minneapolis Housing &
Urban Development (HUD), on Fair Housing
PLUS
Kathy Sheridan, MHA, on
Understanding State and Local Associations
Minnesota Riverland 8:30 a.m. - Registration
Technical College 9:00 a.m. -1:00 p.m. - Seminar
1926 College View Road Southeast $15 per person in advance or $10 each for
Rochestm', MN 55904 ~'~wo or more from the same company.
Room C-105 Call MHA a~
2.0 Continuing Real Estate Credits Approved (612) 927-8602 for a map.
1994 ORIENTATION ~ SPONSORS:
.STAR TRmUNE
FONAHOME
ST. PAUL
PIONEER PRESS
~THE PINK
:COMPANW~S
INDUSTRIAL
~'?'M~, CKE LAUNDRY
THE MULTI HOUSING ADVOCATE 17 JANUARY 1994
· wviag Me J~sm/C~mlnan/ly -
.,I/isailf Eiii, Wl flATNICK LAMB
CLAYTON G REIN
t~O~ERT A. I~LLER
~U~L 8. M&RFIELD
· 4LFRED A, ALBERT 1~70
HARV~'Y la. RATNER 1~1
J~I4N E. ~T
~RT E. ~UC~I
9TANI. EV Id. T~
~ F. UE~
~ T. CURTIN
~J. ~i JR.
~NTN. ~ I~0
~W.~ 1~1
O~N C. ~
~ &. JACO~)N 1
~ K. NEWldAN JR.
~w.~ 1~5
{~mlnlw M J~kmlYlil~ik~ YVONNE 8. MJ~T
iMM WNBTA M. ~N{~r.M.
Wednesday, January 19,1994
"]V[AKING THE COLLECTION PROCESS
WORK YOU"
~ith Roger IOmuf
lnta'state Credit Conuol, Inc., Opemiom M~
Collecdom ~eatly affect the bonom line ~ome and Return On InvesUnen! of any rental
lxoper~{ Brush up your lXOlXn~ mauah~.ment ,HII, and knowledge of ctm~nt coUectiou
inctic~ rules and regulntions. Fred out if you can do anything different at yom* site to make
CERTIFIED POOL OPERATOI~ COURSE
Imtructors: Jo~n ~nd Dick Navr~til
MHA Mcmbcrs, ~ ]nstmcKgs, Horizon ~ Company
This course will cover wa~e~ chemistry, water lestin8, chemicals, safety, {mol/spa
receive a"Pool/Spa ~ Handbook." At the end
of the comse, an examination w~l be given. When the
Ol~n-bouk exam is ~.,cosafu~ pused, the smdcot
wiU receive a nationnlly ~cognized "C.e~f'~d Pool
Operalor" ce~ti~cate from IM Nalim~l Swimming
Pool Foundatico.
As an owner, property manager, ~r resident manager, do
you realize that the demand for CIK)s continues to grow?
The Minneapolis and St. Paul municipalities are in the process
of making ceflif'F, ation mandatory. Does your complex have at least one Certified
Pool Operator? If not, phn ahead for the qring and register howl If you have
questions, please call Joan or Dick at (612) 541-0454. S~, _,~_ ts should ~ ·
Tuaday & Thnnda/, Mnrch ! & 10, ~
7'.30 ~n. - Regim~on
8.'00 am. - 5'_30 p.m. - Class
.$1~0 MHA Mesnber, S190 NmHnnnb~
MIIA TrMntug Room
425O Padr O~ ibrd
Minnnix)lis, MN 55416
~ credits .pjxoved
Payment fm Ihe CPO mm~e mint be n=eived by February 28.
Mail payment ~h Re~isUation Blank; NO BILLINGS!
THE MUL~II HOUSING, ADVOCATE
Hennepin Technicnl College
JANUARY 1994
the i~oce~s work for you! Roger Knau~ Interstate Credit Conlzol's Oparaliom Manager, Itu
ove~ 14 y~t,~ expaienc~ in tbe ind~uy nd is th~ former Education Chair / ~ of the
Minn~ot- Association of Colkclms. He will ~ddress yo~ qnestiom at the end of the
Mesanta~on. Smnn owners and maidmt managers could espacial]y bane~t f~m ~ educa-
tional inugtam{ Register eady{
Wednesday, January 19,1994
7'.30 a.m. - Registmion
8.'00 am. - Sharp - Breakfast is served.
Meal Servim ends at 8:10 a.m.
8:30-10:00 am. - Semin,r
S15 lVl].l& member paid in Mvanm
S30 Nm-member
Minneapolis Airpofl Manion Biouminfton Hotel
2O2O East 79th Street. Bloominsmn
LS CRM Credits approved
CPO Course
Tuesday & Thursday, March 8 & 10, 1994
ADVANCED MAINTENANCE SEMINAR January 27, 1994
BOILER LICENSE SEMINAR & EXAM
Instructor:. Steve Swanson, CRMT
Vice President, Park Supply, Inc.
Steve Swanson will present a seminar covering the basic information needed for safe boiler
operation. In case you missed this event at the Fall Conference in November, you will want to
register immediately for this excellent class! This seminar will cover the material for the Special
Class and Second Class boiler license exams only! Following the r, eminar, representatives from
the Depathnent of Labor and Industry will administer the exams. The cost for the seminar and exam is:
Special Class - $40 - ~ member, $55 Non-member
Second Class - $45 - MI-IA member, $60 Non-member
Note: Anyone wanting to take the Second Class license exam nu~ present a notarized affidavit
at the time of the exam. MHA also has suggested pre-seminar reading material for those
wishing to take the Second Class license only. Please call 927-8602 for an affidavit and details.
Thursday, January 27, 1994 a.~ MHA Training Room
9:30 ~.m. - Registration ~ 4250 Park Glen Road
10 a.m. - 1 p.m. Seminar Minneapolis, MN 55416
1:30 Exam 3 CRM/CRMT credits
(The seminar fee includes the seminar, handouts and the exam. A meal i~ not provided.)
Owner Roundtable Wednesday, January 19, 1994
--No COMMENT
How to Deal with the Media
with Mark Threlkeld
Mark Threlkeld and Associates
Unexpected events occur at rental properties and with residents. Are you prepared to deal with
the media when they contact you? Find out how to respond to accusations, tragedy or disaster.
Are you adequately prepared to give an interview? Find out how to buy time and respond
professionally. Mark Thxelkeld is a former TV news reporter and newspaper editor who
currently has his own consulting business coaching individuals on personal communication
skills. Build your skills and prepare for the unexpected.
Wednesday, January 19,1994 MHA Training Room
11:45 a.m. - Registration 4250 Park Glen Road
Noon - 1:30 p.m. Presentation & Luncheon Minneapolis, MN 55416
$14/Member; $20 Non-member
Attorney Sixpack Seminar #3
Tuesday, January 18, 1994
RESIDENTIAL LEASES
Ken Corey-Edstrom,
Henningson & Snoxell, Ltd.
Special notice! There is still ~ace available for the educational program on
Residential L~ases. I..~asing agents, resident managers, property manager~
owner_ ~gister now and gain a clearer understanding of the most important contract in your
bnsiness.'l~en Corey-Edstxom, past MHA Legal Committee Chairperson, has extensive
experience as a LandlordfI'enant Law instructor. 2.0 R.E. CRM and/or COM credits.
Tue~dny, Jnnunry 18, 1994 MHA Training Room
5:30 p.m. - Registration 4250 Park Glen Road
6:00-8:00 p.m. - Seminar Minneapolis, MN 55416
I., ~' NOTE: See this and nex~ mc~a~h' s Multi Housing Advocate for mo~ on 'Leaun-" in
' ' INmna lianbery's Tr/a/s & Errors colunu~ MHA's R~lential Leas~. certified by the
',a~nmney General's nffice in aceontance wi~h ~e Plain Language Centrac~
, ~e offiee fo~ rely $7.50 + tax {Member price) per pad of 50;. $10 + tax Nm-member.
1994 EGGS & EDUCATION
MEETING TOPICS
Mark your calendars r~w! The following
subjects will be addressed:
January: Collections
February: Caretaker Clinic
March: Fair Housing
April: Unlawful Detainer Court
May: Marketing
June & July:
Summer Vacation--No Meeting
August: Hiring & Firing Procedure
for On-Site Personnel
September: Resident Relations
October: Budgeting
for the New Year
November: Customer Service
December: Happy Holidays--No
Meeting
Reminder Notice:
The Department of Commerce requires
that licensed real estate brokers obtain
2.0 Continuing Real Estate Education
Credits on the topic of Fair Housing/n
every even numbered year. Start
planning now! For further clarification
of this rule, we suggest that you
contact the Department of
Commerce's Licensing Unit at 296-
6319. The Minnesota Multi Housing
Association will sponsor two Fair
Housing seminars in the coming
months. Continue to read the calendar
~ection for more details!
0/ Congratulations to Pattie Biwer,
The Smart Corporation, for earning
the Certified Residential Manager
Designation.
0/Congratulations to William
Greenough, Dominium Manage-
ment, for earning the Certified
Residential Maintenance Technician
Designation.
THE MULTI HOUSING ADVOCATE 19 JANUARY 1994
Orientnfion Wednesday, February 9, 1MM
MAXIMIZE YOUR MEMBERSHIP
Mark Wednesday, February 9, 1994 on your calendar for · reception for new and p~spactive
members of the Minnesota Multi Housi~ Ass~iation. This is yo~v opportunity to Fred out
how IVfl-IA works for you and the benef'fls that came with membership. This FREE program
was designed for the express ~ of helping you become an involved and aware member
of your association and your industry! Mix and mingle with memhe~, officers and staff -
they'll gladly answer any qnestinm you have!
WedneMay, February 9,1MM
5.~0 p.m. - Registration~Refmshments
5:15 p.m. - Program
5:30 p.m. - Question/Answez Fetiod
MliA Trnlnfng Room
4250Park Glen Rd.. M~meapolis, MN 55416
Thursday, February 24,1~94
Full-Day Seminar
CONFLICT RESOLUTION PROPERTY MANAGEMENT
Ann Wallerstedt, Executive Director of Anoka County's Mediation Services
Bonnie Lubes, Executive Director of North Hennepin Mediation Project
become either constructive or desuu~ive depending on how they are handled. Ann WalJerstedt,
Executive Director of Anoka County's Mediation Services, and Bonnie Lubes, Executive
Director of North Heunepin l~li~fion Project, will p~sent positive mediation techniques in
r~olving and ~ssolving tense situations. Th~ is a must fm anyone who wants to ease some of
the streas and strains of property management.
Thursday, February 24,1~4 MHA Training Room
8:00 a.m. - Registration 4250 Park Glen Road
8:30-3:30 p.m. - Seminar Minneapolis, MN 55416
Fee: $49.00 Approved for 0.6 CEU credits & 6.0 CRM/CRMT credits.
C~ ~uM be ma~ payable to Hzn~pin Teen, al C~ge
and mai~d to MHA. $~nor fec ~ n~ i~l~e lw~h.
What's Coming Up
FEBRUP3~Y
Feh-uary 9 -- Owner Rou~__t~ble
February 15 -- Ammey Seminar #4
February 16 ~P~gs & Education
Fetruary 17-- CRMT hegira
Felmary 19 -- CRM begins
Felxmuy 22 -- Small Owner Sen~nar
MARCN
Merch 8 & 10 ~ CPO Course
March 9 -- Owner Roundtable
March 9 -- Round Robin
March 15 -- Annual Meeting
M~ch 22 ~ Attorney Seminar #5
March 23 -- Eggs & Eduction
APRIL
April 6 ,--- Own~ Roundtable
April 14 ~ Perspectives '94
April 20-- Efts & Education
~ 29 -- Full-Day Seminar (Property
Manager's Guide to Diversity)
Collese campus?
C~t~ ~ ~27-$~02 today to receive an
spplicationl Spaoe is limited!
MHA
RESERVATION FORM
Enclosed is $ for the event(s) indicated. Please make checks
payable to the Minnesota Multi Housing' Association or Ell in charge card
infonnation below. You must pay in advance or at the door - No Billings.
~ Check number I~ ~tu~.~d ~ v~ C~d
Number.
Name as it appears on ca~d:
Expiration date:. ,Signature
Name(s)
Phone
Company
Zip.
Address.
EVENTS/COURSES:
[~ ATTORNEY 6-PACK-Tu., Jan. 18
$201Member ; $$OINon-member
~] ROCHESTER PROGRAM - Th., Jan. 13
$15/person admnce; $10 each/2 or more Mine co.
~ EGGS & KDUC&TION - We&. Jan. 19
$151Member ddwmce; $301Non-member
1~ GOLD WORK$11OP SERIES - starts Ian. 5
waiting li~ only: $4~5/Member
~J BOH.~R LICENSE/EXAM - Th.. Ian. 27
Special Clapt - $40/ Member ; $5 $1N on-member
Second CId~ . $4 S/Member ; ~g)/Non:member
Resovations ore required for all MHA seminars If you make a reservdlion and do not cancel by noon of the day before the meeting,
you will be billed for the event. Most MHA seminars are co-sponsored with the Hennepin Technical College and
will offer CEU reedits; pim~ call 927-8602 for more information. '~,
Mall registration with payment to:
Minnesota Multi Housing ~on · 4250 Park Glen Road · Minneapolis, 55416 · FAX: (612) 927-8606
THE MULTI HOUSING, ADVOCATE 20 JANUARY 1994
TO:
FROM:
SUB~F, CT:
DATE:
CITY OF COLUMBIA HF~IGHTS
MAYOR AND CITY COUNCIL
PATRICK HENTGES, CITY MANAGER
DON SCHNEIDER, H.R.A. DIRECTOR
1994 C.D.B.G. FUNDING
JANUARY 13, 1994
Annually the City is allocated federal Community Development Block Grant (CDBG) entitlement funds
through thc Anoka County CDBG Entitlement Program. Approximately $250,000 to $280,000 are expected
to be allocated to the City of Columbia Heights for Fiscal Year 1994. The exact amount is not known yet
but is expected to be similar to thc FY1993 amount of $255,644.
A proposed program for the use of the funds has been prepared based on City Council work-sessions and
HRA Commissioners mcetings input. The HRA Commissioners have reviewed and recommended City
Council approval of the proposed program (attached as Exhibit
Prior to City Council approval of a program for the use of the FY1994 CDBG funds, a public hearing must
be held and any other public input must be heard and considered. As per City Council approval, a hearing
has been scheduled for January 24 at approximately 7:15 p.m. A copy of the official published notice in
regard to the scheduled public hearing is attached a Appendix 'B'. Also, a copy of the 'Current
CDBG/HOME Program Status~ as of 12-31-93 is attached as Appendix
RECOMMENDED ACTION: Conduct public hearing and approve 1994 CDBG Program and preparation
and submission of formal application to Anoka County.
PROJECTS TO BE FUNDED WITH FY1994 CDBG GRANT FUNDS.
Ao
Neighborhood Revitalization with Priority
Use of Funds in Sheffield Neighborhood ............. $140,000 to $160,000
Bo
Housing Rehabilitation with Priority
Use of Funds in Sheffield Neighborhood ............. 93,890* to 102,890'*
C. Public Service Grants ........................... 17,110 to 17,110
1. Senior Outreach Program for Col. Hts. - $11,030
(Anoka County Community Action Program)
2. Alexandra House (Columbia Heights) - 3,000
3. Hot Meals for Shut-Ins (Meals on Wheels) - 3,080
for Columbia Heights .........................
to
D. TOTAL ..................................... $250,000 $280,000
* If funding is less than $250,000, the amount reduced would be taken off the amount for Housing
Rehabilitation.
** If funding is more than $280,000 the additional amount would be added to the amount for Housing
Rehabilitation.
*** Includes approximately $30,000 to $35,000 for Columbia Height's share
of the County-wide CDBG/HOME Program allocation for housing rehabilitation.
PH:bjs
Housing & Redevelopment Authority
of Columbia Heights
EuMbius i-k)in=
Bruce N~
~ Duidn
DoneJd J. Mu~tyn, Jr.
590 N.E. 40th Avenue, Columbia Heights, MN 55421
Fax: (612) 782-2857. (612) 782-2854
PROPOSED
1994 COMMUNITY DEVELOPMENT BLOCK GP~%NT (CDBG) PROGRAM
FOR
CITY OF COLUMBI~ HEIGHTS
FISCAL YEAR (FY) 1994 GRANT
AMOUNT EXPECTED $250,000 TO $280,000
(Received $255,644 for FY 1993)
2. PROJECTS PROPOSED FOR FUNDING WITH FY1994 CDBG GRANT FUNDS.
ae
Neighborhood Revitalization
with Priority Use of Funds
in Sheffield Neighborhood
$140,000
to $160,000
Be
Housing Rehabilitation
with Priority Use of Funds
in Sheffield Neighborhood
Public Service Grants
93,890* to 102,890'*
17,110 tO 17,110
Senior Outreach Program - $11,030
for Columbia Heights
(Anoka County Community Action Program)
Alexandra House
(Columbia Heights)
3,000
Hot Meals for Shut-Ins - 3,080
(Meals on Wheels) for Columbia Heights
D. TOTAL
$250,000***
280,000***
CDBG
If funding is less than $250,060, the amount reduced would be taken
off the amount for Housing Rehabilitation.
If funding is more than $280,000 the additional amount would be added
to the amount for Housing Rehabilitation.
Includes approximately $30,000 to $35,000 for Columbia Height's share
of the County-wide CDBG/HOME Program allocation for housing
rehabilitation.
Equal Opportunity Employer
Equal Housing Opportunity Agency
Pl ~ ~ M~ ~ F~.
Jmw~/4. 1~
Ci~ of Columbia Heigh~
~m oF ~muc
~ fufl~ unoer the C~I
program year. Th~ hoa~flg ~X be hem iff tho
When ihe r~u#t il moo
P~ W. H~
C~ of Columbia Hieig~
~CE
~T ~312
REHAII~A~ON OF ~L~ ~D
' ~lllid bMl WI ~e received
~ WM~ ~ ~7 - ~ Av~ N.~
~ 11~ A.~. d~ 10.
~ '~. ~ me f~
Sl,~ for I ~mM~ oat fM the Engiaee~g
~M ~ ~W W re~e me S$0.~
Couflcii~m~er Ni~ocKi felt the
F~
C~M ~ ~ thM a ~ fM
R~evem~m AuIhMiW prop~ 10~ ~et
b. R~tmn N~ ~; bag a
A~mg ~
8uOgM a~ Tu L~
_F,~.,_~ NMm--Tuea~ Janua~/4. le94
Housing & Redevelopment Authority
of Columbia Heights
Bruc~ N~oc~i
D;~d J. Murzyn. Jr.
590 N.E. 40th Avenue, Columbia Heights, MN 55421
Fax: (612) 782-2857. (612) 782-2854
CURRENT CDBG/HOME PROGP~%M STATUS
12/31/94
1. 1993 CDBG/HOME PROGRAM (7/1/93 to 12/31/94)
AMOUNT
I I I I
PRO-[ , , ,
JECTI NAME ', CDBG ,' HOME I HRA
I I . I I
I I I I
328 IPublic Service I 41,244[ 0 Il 0
I I I I
I ! I ! I I r I
330 INeighborhood ,' ', ,~ ,' ,' ,'
[Revitalization I 34,3001 0 ,' 0 I 34 ,300I152 I 34,148
I I I I I I I
331 [Architectural II II Ii II II II
' 123 1125,782
'Barrier Removal 1125,9051 0 I 0 1125,905,
I I
I I I I I I I
I I ! I I I l
353 [Housing ' ** ' '
I I I I I I
IRehabilitation I 54,195[ 70,000117,5001141,695', 0 1141,695
I I I I I I l
I I I I ! I I I
I I I I I I I l
I I I I I I I l
:TOTALS 1255r6441 70,000117,S001343,1441 22,672 1317,1241
I
I I I
TOTAL I USED IBALANCE[
I I I
I I I
41,2441 22,397 I 15,4991
I I I
Includes Alexandra House Capital Drive participation of $13,500 and
Alexandra House public service general program allocation of $3,500.
Includes $27,300 from City CDBG Entitlement and $26,895 from Anoka County
Country-wide allocation of CDBG Entitlement Program Rehabilitation funds.
e
1992 CDBG/HOME PROGRAM (7/1/92 to 12/31/93)
PRO- I
JECTI NAME
I
I
228 IPublic Service
I
!
230 INeighborhood
'Revitalization
I
I
I
231 IHandicapped
IAccessibility
!
~253 IHousing
'Rehabilitation
I
I
!
I
I
ITOTALS
I I
I I
CDBG I HOME I HRA
t i
i i
i i
24,445I 0 ,' 0
I I
I I
I I
98,4951 0 ,' 0
I
! 1
I I
I I
57,838I 0 ' 0
I
I
!
!
I
26,9001 32,0001 0
I
I
I
1207,6781 32,000I 0
AMOUNT
TOTAL USED
24,445 24,445,~ 0
I
! !
I
I I
98,495I 78,183 I 20,312
I I
f
I I
I I
57,838', 168 I 57,670
I I
I {
', 58,900', 58,900 ', 0
I ~ I
I I I
':239,678':161,696 I 77,982
CDBGHO
Equal Opportunity Employer
Equal Housing Opportunity Agency
CITY OF COLUMBIA HEIGHTS
590 40th Avenue N. E.
Columbia Heights, MN 55421-3878
(612) 782-2800
Mayor
Joseph Sturdevant
Councilmemb~rs
Donald G. Jolly
Bruce G. Nawrocki
Gary L. Peterson
Robert W. Ruettimann
City Manager
Patrick Hentges
January 11, 1994
Commissioner Margaret Langfeld
Anoka County
2100 3rd Avenue
Anoka, MN 55303
Dear County Commissioner:
At the City Council meeting of January 10, 1994, thc Mayor and City Council of the City of
Columbia Heights expressed their dissatisfaction with the decision of the Anoka County Board
of Commissioners to impose a residential waste management charge. We believe that the charge
sends an unfortunate message. Residents will interpret this move as a disincentive to recycle.
They may well question why they make the effort to recycle if reducing refuse volume only
results in higher/additional fees. Because the City of Columbia Heights is repeatedly commended
for its waste abatement achievements, it is especially harsh that our residents must pay the same
amount as residents in communities which do not meet recycling goals and whose average waste
volume per capita is higher than Columbia Heights'.
We also question the amount of thc charge. For example, in our instance, BFI has offered to
reduce our charges based on .98 tons per year waste generated per household times the $28 tip fee
reduction, which comes to $27.44 per year. Compare this to the $36.09 fee to be imposed and you
see that our residents will pay over $8.00 more per year than they do now (BFI's proposed amount
of $27.44/12 = $2.29 per month; the County's proposed amount of $36.09/12 ~ $3.00, results in
a difference of .71 per month or $8.52/year).
We request a further explanation of the charge, how it was calculated, especially with reference
to monies included for future expenses and/or debt relief. In addition, we request that the
amount of thc waste management fcc be further reviewed and analyzed, and that a credit be
considered for communities like Columbia Heights, for reducing the tonnages taken to the Elk
River facility.
Sincerely,
City Manager
PH/sh
96/3
cc:
Dan Erhart, Chair
James Kordiak
Paul McCarron
Dave McCauley
Dennis Berg
Bob Burman
'SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER