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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 dm~ ~ ~ ~mnt · ~ ~ Imorest T~  V~~~t ' ~ ~ ~ 17.~0 .80 110.~ 11.~ (~lbd ~ ~y ~~ ~ ~n~ ~l) ~~ ~.~.00 ~r (8~lo bot8)M M) ) M~.~ ~ 18.~-120.~ m~r ~ ~.00 ' ~0.~ nd ~or ~ 0~7~02 ~~ ~mns ~ ~o Mnnl Mag.) ll S.~-m~rs, 120.~ m~m M ~ $2.60 .10 14.00 .10 .~5 .10 .10 .26 .10 .10 .26 .10 .~6 $2.60 .10 $4.00 12.60 .10 14.00 .10 .ES $2.60 .10 84.00 MINNESOTA MULTI HOUSIN~ A880QIATION PRESENT8 A S~RIES OV SEMINARS FOR SMALL I~S?ORS featurin$ 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