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Cliff Hockley, President
Bluestone and Hockley Real Estate Services
December 18, 2007 was a black day for
landlords in Gresham. On that day,
mandatory rental inspections were approved on a unanimous vote by the city commissioners for all residential dwellings in Gresham, Oregon. What has changed is the passage of an inspection procedure that gives the City of Gresham extensive and intrusive rights over Landlords. The plan is to be implemented by end of March 2008.
There is no question that some properties in Gresham were sub-standard, but the City has used the
proverbial bazooka to kill a fly. Let me explain.
Fees and Fines
Resolution 2917 delivered significantly increased license fees for residential property owners. Previous fees were $25 per unit
per year. New fees are as follows:
1-2 units
$50 per unit per year
3-12 units
$45 per unit per year
13 – 100 Units
$40 per unit per year
101 – 200 units
$35 per unit per year
Units over 201
$30 per unit per year
Beginning April 1, 2009, all fees will be
subject to annual indexing by a percentage factor tied to the employment cost index.
Late payments will be charged if you are more than 30 days late in submitting your license fees. In addition, if you sell your property there is a $14 fee in the event the building is sold.
There is also a per unit penalty to the owner or agent if the owner or the owner’s agent is not available for a scheduled inspection. This fee is $50 per unit for the first two units and $100 for every unit after that. In addition, failure of an owner or agent to attend subsequent inspections results in penalties outlined in GRC 9.55.160. (www.ci.gresham.or.us/departments/cao/Gresham_Municipal_Code)
Failure to comply is a Class A violation and according to GRC 9.55.160 can be penalized by a fine not to exceed $720.
In addition, there are $100 fees for each
inspection after the first re-inspection.
Monthly administrative enforcement fees
(if defects are not cured):
Property with 1-4 dwelling units $200/month
Property with more than 4 units $400/month
Property Maintenance Code
administrative enforcement fees:
These fees double if violations are not corrected within 60 days after notification of violations, and triple if violations are not resolved within 120 days from the date of the initial notice of violation.
1-59 days from date of initial notice of violation
$10 per violation/day
60 – 119 days from date of initial notice
$20 per violation /day
120 or more days from date of initial notice
$30 per violation /day
Most of the fees are subject to annual increases in the form
of indexing, except for the Property Maintenance Code
administrative enforcement fees.
Scope of Residential Property Inspections (Ordinance No. 1649) amending chapters 7, 9 and 10 of the Gresham Revised Code as it relates to licensure of residential rental property and property inspections.
- All rental property owners will be required to have each property licensed.
- Licenses will be issued on an annual basis unless revoked or suspended because your property is not in compliance.
- In order to obtain a license (Gresham Revised Code 9.55.090), properties must pass an inspection that indicates the property meets the Gresham code standards.
- For residential property not previously licensed with the City an inspection will be scheduled to occur within 60 days after submission of a completed application and the payment of the licensing fee.
- For a property already licensed by the City of Gresham, a
sampling of units will be chosen for inspection. The City will give the owner/property manager 10 calendar days notice of an upcoming inspection.
- Inspection process (Gresham Revised Code 9.55.110)
- The owner or agent must provide tenants with 7 calendar days advance notice of the upcoming inspection.
- The City will supply the landlord with consent forms for the inspections. The landlord and the managing agent shall take all reasonable steps to secure the written consent of the tenants prior to the inspection.
- Should the landlord or his agent be unable to secure the permission of the tenants, then the City may use the administrative inspection warrant process to gain access to a rental unit without tenant consent.
- Tenants can chose whether they want to be present at the property inspections.
- A checklist of criteria will be prepared by the City for the landlords to use in compliance.
- Owners and/or their agents must be present for the complete inspection process.
- Typically, a representative number of units will be inspected by the City.
Usually, those units that have signed off consents will be inspected. If a unit fails to pass inspection, the inspector may then ask to see other units at the property.
A landlord may with City agreement, hire a private inspector for annual unit inspections. This process would have to be agreed upon in writing with the City, the property owner and the inspector. In the event that violations are found, all re-inspection and enforcement
action that may be necessary will remain the responsibility of the City.
More penalties Violation of GRC Article 9.55
If you:
- Fail to secure and maintain a valid residential rental property license.
- Or, operate a property that is declared a public nuisance (by the City or the police department).
- Or, upon inspection your property fails to meet code.
In addition to the fees and fines and liens, the City can disconnect the water and wastewater services to your property.
Oh yes, I forgot you have the right to appeal. (Gresham Revised Code 9.55.170)
So what are they looking for?
- Gresham has adopted the International Property Maintenance Code to guide their inspection process.
In particular they will be looking for:
- Landscaping care – out of control weeds and plants
- Disassembled , non-functioning vehicles
- Defacement of property – graffiti
- Lack of clear and code compliant street numbering
- Glazing (windows and sliding glass doors) without holes or cracks
- Legal window sill heights and legal window sizes
- Ability to open all windows
- Interior dampness (free from conditions that promote decay, mold growth or deterioration of the structure)
- Rubbish and garbage picked up, on both the inside of every apartment and on the outside of the property.
- Water attached to public or safe private water systems and all sinks, bathtubs, showers and washer dryer hookups to be supplied with hot and cold running water.
- Dwellings shall be provided with heat that year around can heat the property to 68 degrees without use of ovens to heat the residential spaces.
- All doors used for egress can be exited without the use of keys.
- Smoke alarms must be installed in every bedroom, as well as on the wall or ceiling of every separate sleeping area.
- No abandoned buildings or property that could create danger to tenants and or their children will be allowed.
Abatement procedures:
The City has developed four abatement procedures depending on the severity of the infractions.
Type A – No notice is required and the City will handle the abatement and bill the landlord.
Type B – A 10 day notice is issued and posted by the City. The landlord has 10 days from the notice to correct the
infraction.
An error in the name or address of the property does not make the notice void. A posted notice shall be sufficient notice to the landlord and his or her Agent.
Type C – Gresham Police Department will issue notice to a property with two or more nuisance activities on/or within 300 feet of the property during any 60 day period. The police will also expect the landlord to prepare a plan to rid the area of the nuisance activity.
Type D – A 30 day notice is issued to the landlord to remedy issues discovered at the property by the Inspection.
In Type B, C and D abatements the landlord has an opportunity to solve
problems before the city abatement process commences. Bear in mind , the City will charge fines, clean up and repair costs, as well as costs for the re-settling of tenants and their rent if landlords and their agents do not first resolve these issues themselves.
Administrative inspection warrants GRC 7.50.700
These warrants will be issued by a judge to allow entry into rental units where access has been prevented by the tenants or the
landlord and/or landlord’s agents. It will also grant access to unoccupied dwellings for the purpose of inspecting the property. It is expected that these warrants will be used with uncooperative tenants and/or landlords and will typically be generated as a result of a complaint or a suspected code violations.
Summary
It is regrettable that once again, responsible landlords that maintain their properties are bearing the financial burden to identify and inspect properties owned by landlords who do not choose to maintain their units properly.
Once the procedure is in place in the spring of 2008, landlords can expect stiff enforcement of code standards. It is
critical for landlords to review the law and establish policies for their properties.
Clearly, landlords that have not been self inspecting properties will be doing so now. I would not be surprised if landlords inspect their properties at least twice a year to mitigate any potential hazards that might be uncovered by a city inspection. The most difficult challenge will be to facilitate resident education regarding the new city requirements given the number of languages found in the Gresham
submarket.
I urge you get up to speed as fast as possible and to be involved in your landlord organizations: Metro Multifamily Housing, Institute of Real Estate Management and the Rental Housing Association of Greater Portland.
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