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HomeMy WebLinkAbout[07b] Rental Housing Amendment 7(b) Council Agenda Item MEETING DATE: February 21, 2012 AGENDA ITEM: Planning Commission – R1 Rental Regulations SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Rental Housing Committee recommended the City amend the current R1 Zoning District restrictions to allow for non owner occupied rental units for property owners who have tried to sell their home without success. The amendment should require proof that the home has been on the market for three months and they have lived in the home for at least one year as their primary residence. Under those circumstances a homeowner could make application for an interim use permit for a two year period, nonrenewable. The Planning Commission conducted a public hearing on February 4, 2013 to consider the amendment to Ordinance 52.27 with one person testifying, questioning the need to amend an Ordinance that appears be working. After considerable discussion, the Planning Commission recommended the Council accept the recommendation of the Rental Housing Committee and amend Ordinance 52.27. PREVIOUS COUNCIL ACTION: The Council considered the recommendation of the rental housing committee and recommended the Planning Commission conduct a hearing on the potential amendment. BACKGROUND INFORMATION: Since the public hearing the City Offices received a letter in the mail regarding the proposed amendment. In addition a phone call was received from a property owner who thought the Ordinance was adopted and questioned the logistics. The property owner currently has an owner occupied rental and he had the following questions: 1) how recent does it have to have been on the market (he had it on the market at one point); 2) Can the existing Interim Use Permit be modified; 3) sees as a long term solution. The response to him was: 1) the new provision, if approved, would start after the three month listing that matches the date of the application for Interim Use Permit – if application for IUP was submitted on April 1, 2013 the property had to be on the market from at least January 1, 2013; 2) Interim Use Permits are not transferable and if approved the new provision would require a different Interim use permit and the hearing fees would apply; 3) was informed that the potential amendment is temporary in nature for two years, to which he stated that the economy isn’t going to turn around and it will be longer. ATTACHMENTS: Request for Council Action Hearing Notice PC Minutes – February 4, 2013 Resolution 2013-013 Amending Ordinance 52.27 Resolution 2013-014 Authorizing Summary Publication Amendment Anonymous Letter REQUESTED COUNCIL ACTION: If the Ordinance is amended two separate actions are required, one to adopt Resolution 2013-13 Amending Ordinance 52.27 and the second to adopt Resolution 2013-014 authorizing summary publication. This page intentionally left blank City of St. Joseph Public Hearing Amendment to Ordinance 52.27 The St. Joseph Planning Commission will be conducting a public hearing on Monday, February 4, 2013 at 7:00 PM to consider amending Ordinance 52.27 Subd. 5 (b) adding a provision to allow a non-owner occupied rental license if a property owner has tried to sell their home without success. The new provision would allow for a one-time two year interim use permit affording the property owner the opportunity to make application for a rental license and interim use permit. If granted the interim use permit and rental applications must be renewed for the second year, expiring at the end the second year. Full text of the above Ordinance Amendments can be viewed at the City Offices, 25 College Avenue North or on the City website: www.cityofstjoseph.com. All persons wishing to testify will be heard with oral testimony limited to five minutes. Written testimony can be submitted to the City of St. Joseph, Attn: Judy Weyrens, PO Box 668, St. Joseph MN 56374. Judy Weyrens Administrator Publish: January 25, 2013 February 4, 2013 13 Page of Pursuant to due call and notice thereof, the St. Joseph Planning Commission met in regular session on Monday, February 4, 2013 at 7:00PM in the St. Joseph City Hall, opening with the pledge of allegiance. Members Present: Chair Ross Rieke; Commissioners Gina Dullinger, Brad Cobb, Joe Dubel, Chad Hausmann, and Matt Killam. Council Liaison - Rick Schultz. Administrator - Judy Weyrens. Others Present: Tom Klein, Tim Borresch Oath of Office: Weyrens administered the Oath of Office to new members Chad Hausmann and Matt Killam. Schultz made a motion to nominate Ross Rieke for chair; seconded by Election of Officers - Chair: Cobb. Rieke closed nominations with the motion passing unanimously . Cobb made a motion to nominate Gina Dullinger for Vice Chair; Election of Officers – Vice Chair: seconded by Schultz. Rieke closed nominations with the motion passing unanimously . Schultzmade a motion to approve the agenda; seconded by Dubel and Approval of Agenda: passed unanimously by those present. Hausmann made a motion to approve the December 4, 2012 minutes with Approval of Minutes: minor corrections; seconded by Schultz. Public Hearing, Chair Rieke opened the public hearing and stated the purpose of the public hearing is to consider an amendment to Ordinance 52.27 subd.5(b) adding a provision to allow a non-owner occupied rental license if a property owner has tried to sell their home without success. The new provision would allow for a one-time two year interim use permit affording the property owner the opportunity to make application for a rental license and interim use permit. If granted the interim use permit and rental application must be renewed for the second year, expiring at the end of the second year. rd Tim Borresch, 11 – 3 Ave NW, approached the Commission to question the need to modify and Ordinance that in his opinion appears to be working. He stated that the members of the Planning Commission appear to be relatively new and he questioned how diligently they reviewed the current Ordinance and why it is in place. The City had struggled with how to balance the rental units in neighborhoods with absentee landlords as those properties were less cared for as they were not physically living at the property and may not have been aware of what was happening or cared. The Ordinance adopted in 2000 required rental property to be owner occupied and it appears to have been working as there are fewer unsightly rental properties. Therefore he questioned why the City would consider changing an Ordinance that is working. As there was no one further wishing to testify Rieke closed the public hearing at 7:16 PM. Hausmann suggested adding language to the proposed amendment, whereby the property owner selling the home would provide an appraisal verifying the property being sold is at a reasonable price. This would prevent someone from attempting to rent their home by offering their home at an unrealistic price. Hausmann stated that he did have the experience at trying to sell his home and it was on the market for two years and while he managed to make it work until it sold, it would not have been long before he would have to make a decision on making the payment or not. Having an option of renting his home, while not his first choice, would have been better than letting the home go back to the bank. Schultz discussed the concern of proliferation of rental in residential neighborhoods. This is a long standing concern and that is why the two year sunset provision was added. With regard to requiring a reasonable appraisal, what is considered reasonable? It is for this reason that a provision for appraisal was not added to the amendment as it is too subjective. As an alternative method, the Committee added language requiring residency for one year and three months of active selling before application for an Interim Use Permit could be sought. February 4, 2013 23 Page of Dullinger stated that she recently sold her home in St. Joseph and while they got close to their selling price, they had to pay some of the buyers cost so requiring a market analysis would not have worked in this case. Additionally, the appraisal price can be vastly different between realtors. She further clarified that if she would have had the opportunity to rent her home, she would have considered such. Dullinger understands and appreciates the concerns regarding rental in the neighborhoods and stressed it is important to keep the integrity of the neighborhood. Dubel stated that he too is trying to sell his home but he does not want to have someone living in his home during the selling period, but understands why it would be desirable. Cobb stated that while he likes the idea of an appraisal, he concurs with Dullinger that the appraisal can be manipulated or varied. He stated that he is more concerned about the actual impact of the Ordinance itself. He stated that he likes the idea of one year residency and the provisions that are included in the draft Ordinance. The draft Ordinance Amendment appears to keep the integrity of residential neighborhoods. Killam questioned if the two year period is final or can someone come back and request additional time. Schultz stated that the intent is for two years only and not extend beyond. Secondly, Killam questioned if there are any provisions protecting the neighborhood from disruptive or negative behaviors. Weyrens stated that the City does have a number of Ordinances such as noise, garbage and parking; it depends on what type of behavior is occurring. The Interim Use Permit is also renewable so if the property has Ordinance violations, the IUP could be suspended; however it would be difficult. Rieke stated that he was part of the adhoc housing committee and he is very sympathetic towards the needs of the residents and the City. He wants to make sure that the City is open to changing times and balancing the competing needs of the residents and the City. Rieke questioned how the Planning Commission could facilitate the review in 18 months. Weyrens stated that the Planning Commission could serve as the board to review the impact of the amendment. Cobb stated that as a single family home owner, it is his desire to protect the market values of the homes and that is important to him. The elements in the amendment protect the values and give the City another tool to help the housing issues that have developed. Rieke questioned how a renter is aware that the rental is a two year term. Weyrens stated that the Committee discussed adding a requirement for keeping the property listed; however, they decided that the homeowner may have difficulty finding renters if the property has to be continuously listed for the two years. As an alternative the Committee resolved to enforce the two year provision and that it would not be renewable. If the property owner waited until the end of the two year period to try and sell there home, they could not come back and claim hardship. Cobb made a motion to recommend the City Council amend Ordinance 52.27 Subd 5 and to request the Council review the impact of the amendment 18 months after adoption; the sunset date of the rental license will be posted on the Certificate of Compliance issued with the rental license so that tenants are aware of the short term rental. The motion was seconded by Schultz. Ayes: Rieke, Dullinger, Cobb, Schultz, Hausmann, Killam Nays: None Abstain: Dubel Motion Carried 6:01 Liaison Update: The EDA is looking at the downtown area and communicating with the property owners and their plans or intent. From that the EDA can look at how to refocus the downtown development or redevelopment. Parking is part of that initiative. Schultz stated that the Planning Commission will be involved in some discussions regarding the potential amendment to the Orderly Annexation Agreement. Rieke questioned if the City has an indication of the traffic impact to the downtown as result of the realignment of CR 2. Schultz stated that not at this time, but traffic studies will be completed in 2013. Hausmann requested that the traffic study include not only volume but class of vehicle as well. February 4, 2013 33 Page of Adjourn: Rieke adjourned the meeting at 8:00 PM as the agenda was completed. Judy Weyrens Administrator Resolution 2013-013 Amending Ordinance 52.27 R1 Single Family Residential The City Council for the City of St. Joseph HEREBY ORDAINS That Ordinance 52.27 Subd. 5 of the St. Joseph Code of Ordinances is hereby amended to include subsection 52.27 subd 5(b), creating a provision for non owner occupied rental under certain conditions. b) Residential Rental provided the property owner is relocating and the dwelling has been actively for sale on the market for at least three months. For purposes of establishing if the property is owner occupied, the owner must be a natural person, and all owner (s) occupy the property as their principal residence and have for at least one year. The owners may not exceed two in number. For purpose of determining ownership, the owner/owners must provide a copy of a recorded deed or recorded contract for deed. A purchase agreement will not be accepted as evidence of ownership. For the purpose of determining applicability, the property owner must provide a copy of the current listing agreement, with a licensed realtor, showing the property, is currently being marketed. In addition, 1. The property must satisfy the parking requirements contained in this Ordinance. 2. The rental unit(s) must: A. Have a ceiling height of at least seven (7) feet; B. Contain adequate ventilation and fire escapes as determined by the Building Official; and, C. Meet all applicable rental codes as outlined in St. Joseph Ordinance 55 and Ordinance 55.06, Subd. 1. This Ordinance was approved by the majority of the City Council on this day of , 2013 and shall become effective upon publication. Rick Schultz, Mayor Judy Weyrens, Administrator This amendment was published in the St. Joseph Newsleader on , 2013. RESOLUTION 2013-014 RESOLUTION AUTHORIZING SUMMARY PUBLICATION Ordinance 52.27 (R1 Single Family Residential) RECITALS: WHEREAS, on February 21, 2013 the City Council for the City of St. Joseph amended Ordinance 52.27, entitled “R-1 SINGLE FAMILY RESIDENCE DISTRICT”; and WHEREAS, the City of St. Joseph desires to publish the Ordinance by Summary Publication; and WHEREAS, the intent of the proposed amendment is add a provision to the R1 Zoning District for non-owner occupied rental license if a property owner has tried to sell their home without success. The new provision would allow for a one-time two year interim use permit affording the property owner the opportunity to make application for a rental license and interim use permit. If granted the interim use permit and rental application must be renewed for the second year, expiring at the end of the second year. THEREFORE, IT IS HEREBY RESOLVED: 1. The City Council has reviewed the proposed Summary Publication and finds that the summary of the Ordinance clearly informs the public of the intent and effect of the Ordinance. 2. The City of St. Joseph directs the City Administrator to publish the Ordinance by Summary Publication. Adopted this _____ day of ____________, 2013, by a vote of in favor and opposed. CITY OF ST. JOSEPH By ______________________________ Rick Schultz, Mayor By ______________________________ Judy Weyrens, Administrator Subd. 5: Interim Uses. The following are Interim Uses allowed by permit based upon the procedures and criteria set forth in Section 52.07.04 of this Code. a) Residential rental provided the unit is owner-occupied and provided the room(s) rented does not contain separate kitchen facilities and is not intended for use as an independent residence. For purposes of establishing if the property is owner occupied, the owner must be a natural person, and all owner occupy the property as their principal residence. The owners may not exceed two in number. For purpose of determining ownership, the owner/owners must provide a copy of a recorded deed or recorded contract for deed. A purchase agreement will not be accepted as evidence of ownership. In addition, 1. The property must satisfy the parking requirements contained in this Ordinance. 2. The rental unit(s) must: A. Have a ceiling height of at least seven (7) feet; B. Contain adequate ventilation and fire escapes as determined by the Building Official; and, C. Meet all applicable rental codes as outlined in St. Joseph Ordinance 55 and Ordinance 55.06, Subd. 1. Section 52.27, Subd. 5 amended 4/08 b) Residential Rental provided the property owner is relocating and the dwelling has been actively for sale on the market for at least three months. For purposes of establishing if the property is owner occupied, the owner must be a natural person, and all owner (s) occupy the property as their principal residence and have for at least one year. The owners may not exceed two in number. For purpose of determining ownership, the owner/owners must provide a copy of a recorded deed or recorded contract for deed. A purchase agreement will not be accepted as evidence of ownership. For the purpose of determining applicability, the property owner must provide a copy of the current listing agreement, with a licensed realtor, showing the property, is currently being marketed. In addition, 1. The property must satisfy the parking requirements contained in this Ordinance. 2. The rental unit(s) must: A. Have a ceiling height of at least seven (7) feet; B. Contain adequate ventilation and fire escapes as determined by the Building Official; and, C. Meet all applicable rental codes as outlined in St. Joseph Ordinance 55 and Ordinance 55.06, Subd. 1. 2/11/13 Mayor Rick Schultz, Reading in the Newsleader under the Our View section, I understand how the city wants to work with folks who are having a hard time selling their homes to be able to rent them. I also read that they would have to apply for an interim use permit in order to rent their property. For as long as I can remember,there is a house on the corner of Ash Street and College Ave. North(a brown rambler)that I believe is being rented with no permit or license.The house at 110 North College Ave. and the yellow hair shop are owned by the same person who owns the rental home. I am not sure if anyone is living at the 110 North College Ave. home anymore as there are wires hanging down in the yard and the yellow building needs repair,there seems to be nothing happening there anymore. I am a citizen of St Joseph who feels that in order for St Joseph to keep a vibrant)clean,healthy city,the city staff should investigate why this house gets rented with no restrictions while others are asked to file for permits. Maybe someone needs to address maintenance issues also at this residence and explain the opportunity they may have with the grant money the city is pursuing. I drive through the ally nearly every day and am disappointed that we allow things to fall apart with no effort to remedy the situation. It is also discouraging that some people in the city don't need to follow the rules that other people do. Please give this your attention even though I don't give my name. I am going to assume that you have been made aware of this complaint and I will see if it is addressed. Thank You. RECEIVED FEB 12 2013 CITY Or ,,CI i-± This page intentionally left blank