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95-425Council File # 7 s'�o7� Green Sheet # 32 � RESOLUTION OF SAINT,,P�AUL, MINNESQTA 3a ��t�a b Refecred To Committee Date WI�REAS, the Saint Paul City Council directed Council Research to conduct a study of chronic problem properties, and WHEREAS, in response to that directive, the City Councii Research Center has prepared a report entitled "A Study of Remedies for Chronic Problem Properties" now, therefore, be it RESOLVED, that the City Council accepts the "A Study of Remedies for Chronic Problem Properties" Report. Requested by Depaztment of. � Foim Approved by City Attomey � Adoption Cer[ified by Council Secretary Approved by Mayor for Submission to Council � App� � Adopted by Council: Date � �� 9��as oEP�'''M�T��N�� °A��j�g GREEN SHEE N_ 32704 p� q � pN � INITIAVDATE INITIAVDATE �1�1��'1yMO�mOIIl1�'L�G-SS'�� O�EPARTMEMDIREGTOfl �CffYCAUNCIL ASSIGN �CT'ATTORNEY �dTYCLERK MU. 86�P1 CAU NUYBEH PON ��AGENDA BY (OATE) RO �� BUDGEf DIRECTOR a FlN. 8 MGT. SERVICES DIN. OflDEti � MAYOq (OR ASSISTANn � TOTAL # OP SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATUR� ACTION REQUESTED: Accepts the Council Research report en6fled "A Shuly of Remedies for Chronic Problem Properties." RECOMMENOn7�oNS: Approve (A) tt Peject (R) PEHSONAL SERVICE CONTRACTS MUST ANSWER 7HE FOLLOWING �UESTIONS: _ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has Mis personlfirm ever worked untler a contract for this department? _ d8 COMMITTEE _ YES NO 2. Has Mis person/firm ever been a ciry empioyee? — STAFF — YES NO _DIS7fiIC7COUR7 _ 3. Doesth�s erson/firm p possess a skill not normally possessed by any curteM ciry employeel SUPPORT$ WHICH CAUNCIL OBJECIIVE? YES NO Ezplafn all yes answers on separate aheet and attaeh to green sheet INRIATING PROBLEM, ISSUE.OPPofiTUNIN (Who. What. When. Whara, Why): The City Council desired additional information of chronic problem properties in Saint Paul, current policies and procedures which address them, and policy options. ADVANTAGES IFAPPROVED: The City Council will have the benefit of the infoimation in the report. DISADYANTAGES IF APPR�VEO: None. DISAOVANTAGES IF NOT APPROVED: The infonnation in the "A SNdy of Remedies for Chronic Problem Properties" report will not be available to the City Council. TOTAL AMOUNT OF TRANSACTION $ COS7/HEVENUE BUDGETED (CIHCLE ONE) YES NO FUNDIHCa SOURCE ACTIVI7Y NUMBER FINANCIAL INPORMATION: (EXPLAIN) �S-yas A Study of Remedies for Chronic Problem Properties PURPOSE OF THE REPORT What is the nature of residential chronic problem properties in Saint Paul, and what is the City doing about them? What policy options are available to the City to better deal with chronic problem properties? FINDINGS • A chronic problem properry is a properiy with which neighbors, neighborhoods and/or the City have struggled over a long period of time, because of property maintenance code violations and possibly crimival activity. (See p. 2-3) • There are approximately 150-250 chronic problem properties in Saint Paul at any given time. A sample of problem properties indicated that 44% were single family houses, 37% were duplexes, and 19% were apaztment buildings with three or more units. (See p. 2, and p. 9 J • Most chronic problem properties have the following chazacteristics in common: lack of individual responsibility of landlords, owner-occupants and tenants; deteriorating housing structural conditions; lack of maintenance; and declining neighborhood property values. (See p. 7) • Problems assceiated with these properties aze attributable in roughly comparable proportions to landlords, tenants, both land(ords and tenants, and owner-occupants. (See p. 8) • Current Ciry complaint-based enforcement involves a four-phase process: 1) iden6ficaUon of the problem at the neighborhood level; 2) City confinnation of code violation; 3) application of enforcement option(s); and 4) resolution of problem, or further City action. (See pp.12 - 29) • The enforcement tools, or options available to the City to correct chronic problem properties include wtimmings, correction notices, snmmary abatement procedures, citations, and condemnation procedures. (See pp. 19-22) • Both the City and the communiry have programs which act tqprevent code violations. These efforts include legal action, community action, proactive enforcement efforts, and financial incentives to do necessary repairs. (See pp. 26-29) • Long-teim unfurished home improvement projects may create chronic problem properties for neighborhoods. The City can mitigate these problems through more vigorous monitoring of the progress of work for building code violations, requiring a deposit for building permits, and/or more vigorously enforcing the properry maintenance code for violations. (See pp. 41-43) RECOMMENDATIONS #1 Implement Rental Registration. A rental registration program, which requires one and two-unit rental propecties to register with the City is recommended. Tlus would not require inspection for registration, but continue ihe current practice of inspecting one and rivo-�mit rental properties on a complaint basis. Revocation of a registration for repeat code violations, similaz to revocation of a Certificate of Oceupancy, is an additional option for encouraging code compliance. It would also provide more up to date uid accurafe data on ownership and management of properlies. A modest fae should be required to reaster these properties. #2 Develop a Plan to Require Certificates of Occupancy for All Renta! Property. It is recommended that gental gegislration be the Srst step in a pt�a.se�in process of moving toward a Certificate of Occupancy (C of O) for all rental buildings. This wouid provide for the systematic inspection of one and two unit residential properties, thereby protecting the health and safety of tenants, and preventing neighborhood detezioration. Buause a C of O would requice proactive inspection of one and two-unit rental properiy, a phased-in approach would be the most practical without adding more inspection stafF. A number of other measures could mitigate the cost. These include increasing the reinspecdon fee for C of O covered buildings, and instituTing a point system to determine the most appropriate length of time between inspecti�s, so well maintauied propeaties ace inspected less fiequendy, and poorly maintained properties aze inspected more often. #3 SuppoR a Graduated Fuie Strudure A graduated fine stiuclure may act as a deterrent for future violations. Only 13% of properties receive more than one citation in a year, however, these properties pose huge drains on City resources. #4 Strengthen Inierdepartmental Communication on Problem PropertieS The City needs a more "automatid' identification process of these properties. Once they are identified, stronger, more coordinated enforcement aptions should be applied. Also, one or all of the crossdepartmental groups working on housing and enforcement issues should be requested to develop recommendations for improved conmmnication and �ti� coordination. 'I7iere is aLso the opportunity for broader involvement and action in the identification andmitigationofchronic problem properties citywide. Such involvement could include representatives from tenant associations, landlord associations, realtors groups, district councils and other community organizations. #5 Expand Case Management of Problem Properties—Pending Further Study. Case managing problem properties operates recognizing the multiple problem nature of these properties, and proactively inspecfs those properties that have a history of code violations. #6 Support Landlord and Torant Education Efforts. The City should support landlord and teuant education projects as developed by the Fanuly Housing Fund. Further, as the Family Housing Fund's programs bacome established, the City should explore the use of landlord and tenant education as a sentencing tool for Housing Court. FOR QUESTIONS, COMMENTS OR A COPY OF THE REPORT PLEASE CONTACT Marcia Moermond, Policy Analyst tel. 266-8570; marcia.moermond�stpaul.gov � S _ L� as � �� 4 k O d f ! �,�'s CITY �� 9 �� o �l '�6�� I a h 1854 City Council Research Report A Study of Remedies for Chronic Problem Properties Saint Paul City Council City Council Research Center Saint Paul, Minnesota (612) 266-8560 "i �-�� A STUDY OF REMEDIES FOR CHRONIC PROBLEM PROPER'I'IES March 1995 Saint Paul City Councit City Council Investigation & Research Center Saint Paul,lvTinnesota 55102 (612) 266-8560 Credits: Gerry Strathman, Director Marcia Moermond, Policy Analyst Patryk Drescher, Policy Analyst Thomas Boraas, Policy Analyst a� -��.5 A Study ojRemedies for Chronic Problem Properties i TABLE OF CONTENTS INTRODUCT70N ...........................................................i THENATURE OFPROBLEMPROPERT7ES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 THREE CASE STUDIES ...............................................3 7XX East Sixth Street . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3XX South Saratoga Street . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 7XX Third Street East . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 TF� RANGE OF PROBLEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 OWNERSHIP CHARACTERISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 CRINIINAL AND BEHAVIORAL CHARACTERISTICS . . . . . . . . . . . . . . . . . . . . . 10 PROPERTY AND NEIGHBORHOOD DYNAMICS . . . . . . . . . . . . . . . . . . . . . . . . . 10 PRO7ECTIONS FOR THE FUTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ` CURRENTCITYPOLICIESANDPROCEDURES ........ ....... ... ... ... . .... ... . 12 PHASE I: IDENTIFICATION OF PROBLEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 � PHASE II: CITY VERIFICATION OF CODE VIOLATION(S) . . . . . . . . . . . . . . . . . 14 Public Health ..................................................15 Fire Prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Police Departmenb FORCE Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Informational Exchange Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 PHASE III: CODE ENFORCEMENT OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 The Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Owner Warning ................................................20 Correction Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Summary Abatement ............................................20 Citation ......................................................21 Condemnation .................................................22 PHASEIV: OUTCOMES ..............................................23 Housing Court .................................................23 Revocation Of Certificate Of Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Registered Vacant Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Case Managing/Ongoing Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Problem Remains ...............................................26 PREVENTION TOOLS ...............................................26 RentalTax Equity ...............................................27 Housesto HomesProgram ........................................27 This Old House ................................................27 Housing Information Office Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Saint Paul City Counci! Research �5-�2� ii A Study of Remedies for Chronic Problem Properties Community Stabilization Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Neighborhood Sweeps ...........................................29 POLICY OP770NS .........................................................30 RENTAL PROPERTY-SPECIFIC OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Rental Registration ..............................................30 Landlord Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Expansion Of Certificate Of Occupancy Process . . . . . . . . . . . . . . . . . . . . . . . . 32 ENHANCED ENFORCEMENT OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Increased Certificate Of Occupancy Reinspection Fees . . . . . . . . . . . . . . . . . . . 33 Graduated Fine Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Graduated Fee Strocture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 PROCEDURAL OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Increased City Agency Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Registration of Contracts for Deed by Seller . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Point System for Certificate of Occupancy Inspections . . . . . . . . . . . . . . . . . . . 35 � Landlord Education Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Tenant Educarion Classes .........................................37 RECOMMEEIVDA770NS .....................................................38 #1 Implement Rental Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 #2 Develop a Plan to Require Certificates of Occupancy forAllRentalProperty ..........................................38 #3 Strengthen Interdepartmental Communication on Problem Properties ..... 39 #4 Support a Graduated Fine Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 #5 E�cpand Case Management of Problem Properties— Pending FurtherStudy ...........................................40 #6 Sapport Landtord and Tenant Education Efforts . . . . . . . . . . . . . . . . . . . . . 40 ADDENDUMONHOMEIMPROVF,II�NT-GENF,RATEDPROBLEMPROPERTIES .....41 RESOURCES .............................................................44 INTERVIEWS .--� .................................................. TECHNICAL ASSISTANCE ...........................................44 DOCIJMENTS ......................................................45 Saint Paul Ciry Council Research �5 -425 A Study of Remedies for Chronic ProbJem Properties I INTROD UCTION The e�stence of problem properties in the City of Saint Paul significantly af£ects the way citizens view their neighborhoods and the City. A problem property next door, or down the block, reduces citizens' enjoyment of their own property, as well as their sense of safety of security within tfieir homes and neighborhoods. The swiftness and effectiveness of City efforts to eliminate such problems has the potential to bolster civic and neighborhood pride, or reduce hope for the future. The City Council directed Council Research to conduct a study of the City's efforts to reduce the number of chronic problem properties. In order to fully address Council questions, this report has been divided into three sections: • Nature of Chronic Problem Properties • Cunent City Policies and Procedures • City's Policy Options. The Nature of Problem Properties will discuss the potential sources of problems affecting these properties, as well as the factors that may contribute to the creation of problem properties. Current City Policies and Procedures will outline how problem properties are identified, the role of the code enforcement agencies, the enforcement options available to them, the possible outcomes of the City's interaction with these problem properties and programs that act to prevent problem properties. Policy Opiions presents an array of policy altematives targeted at further reducing the number of problem properties in Saint Paul, based on the policy's potential effectiveness, cost, efficiency, and equity. This study is intended to be comprehensive, and provides a systematic overview of the topics covered. It is primarily focussed on occupied residential chronic problem properties. Clearly, a chronic problem property is a property with which the neighborhood and City have struggled over a long period of time. However, the character of the problems encountered can be e7ctremely varied. To further complicate the issue, what may be viewed as a probiem properiy by one neighbor, tenant, or landlord, may not be viewed as a problem by others. Additionally, a property defined as a chronic problem in one neighborhood, may not be a probiem in another. For purposes of this study a problem property is one which 1) disrupts or threatens the peace, health and safety of the community, or Saint Paul Ciry Counci! Research q5 - �IZS 2 A Study of Remedies for Chronic Problem Properties 2) constitutes a nuisance or an eyesore and is dilapidated or deteriorated, or 3) creates an attractive nuisance which is an abode for criminal activity, or 4) is not maintained adequately and does not conform to minimum health and housing laws. And, therefore, a chronic problem property is one which does any of these on a "regular" basis, or repeatedly. This is a somewhat vague de&nition of a phenomenon affecting many neighborhoods and properties in Saint Paul. The types of code violations for these properties may be the same time and again, or they may vary. However, it is important to acknowledge that these problems are most appropriately defined by those directly affected. Based on this definition it is difficult to assess the number of chronic problem properties in the Ciry. On the narrow end of estimates aze those ten to fifteen properties identified monthly for interdepartmental action by the Informational Exchange Group.' Towazd the upper end are estimates based on a sample of one month's activity from the Informarion and Complaint database where 6%, or 162, of the properties for which the City received calls for service had four or more such calls over the course of a year. In addition, the Police Department's FORCE Unit estimates there are approacimately 250 problem properties it is aware of at any given time. It is ciear from the research conducted in the preparation of this report that chronic problem properties are located throughout the City. However, there does seem to be a tendency for these properties to cluster in some areas. Other staristics which help to gauge the scope of chronic problem properties in the City are discussed throughout this study. Methodology Several types of research methods were used in the preparation of this study. These include: • extensive interviews with City staff worlang both directly and indirectly with chronic problem properties; • literature searches of professional and legal joumals, and newspapers; A gtnup of City staff and coaununiry agency representatives which meets monthly to share information on problem properties, and devise strategies to confront those problems. Saint Paul City Council Research q�-�Z5 A Study of Remedies for Chronic Problem Properties 3 • reviews of City codes, policies, and procedures affecting chronic problem properties; • interviews with national experts in the field of e�sting housing inspection; • statistical analysis of a sample from the City's Information and Complaint database; • reviews of Public Health, Fire Prevention and Police Department(FORCE unit policies, procedures, and lists of problem properties; • site visits to case managed problem properties City-wide; • case studies of three chronic probiem properties; and • reviews of City documents describing housing and housing conditions in Saint Paul. TH� NATURE OFPROBLEMPROPERTIES The reasons chronic problem properties develop aze varied. If a property becomes a chronic problem to its tenants, neighbors or others, it typically has more than one dynamic in action. This section will focus on sources of problems associated with chronic problem properties, and the factors that contribute to their creation. An e�ctensive review of available literature on the topic of chronic problem properties and on repeat housing code violations yielded little insight into why properties become chronic problems. Therefore, this section is based largely on local data, wisdom and perceptions. In order to adequately outline the elements that describe and give rise to chronic problem properties, this section is divided into six subsections. The first provides three brief case studies describing the history of the City's interaction with three chronic problem properties. THREE CASE STUDIES 7XX East Sixth Street This property, located in the neighborhood of 3rd and Maria, is a two-story home with a detached garage. It has been a rental property since the current owners purchased it in the mid-1980s. The owners bought this property as an investment, with the intention of remodeling it and later selling it. The first tenants rented the house for less than a year, and moved out owing rent. The neat tenant, remained for five years, was a middle-aged man whose adult daughter lived with him periodically. Saint Paul City CauncilResearch ��-�z� 4 A Study of Remedies for Chronic Problem Properties The City first became aware of problems at the properry in 1990 when neighbors requested the City look into a problem of used tires and debris littering the yard. Over the course of the ne�ct several years the City responded to numerous complaints on the property, resulting in at least 12 orders to remove debris from the yazd. The properiy was cleaned up to the satisfaction of the inspectors many times, only to become garbage and debris-ridden again. The tenant appeared in district court, charged with failure to maintain the e�cterior of the property, and was fined $700, of which $500 was suspended with the stipulation the yazd be cleaned up. The resulting contacts by the Public Health Division with the owner led to little improvement in the situation. The owner had several contacts wiYh the tenant regarding the tires and other debris in the yard. The tenant maintained that the debris was related to his livelihood as he was a scrap-metal recycler, salvaging parts from old refrigerators, stoves and the like. The City's sciutiny of the properry increased during the summer and fall of 1993 when it finally becazne a case-managed properiy. In July 1993, the electricity was shut off and the building was subsequendy condemned. However, the condemnation was soon ` lifted when the electrical bill was paid by the tenant. In September, the owner was tagged for failure to maintain the exterior of the property and failure to post ownership. This tag resulted in the owner appearing in housing court, paying $25 in court costs, and being assessed a$100 fine suspended on the condition there would be no "same or similar" episodes for one year. In December of 1993, the owner was tagged once again for failure to mainYain the eacterior of the property, not only for yard debris, but also for the condition of the exterior of the house. The owner was summoned into Housing Court again in January 1994. Because of the problems associated with squirrels in the attic a six-month continuance was allowed to provide time to fix the property. The owner was also fined $200, of which $100 was suspended. The owner was not asked to pay the $100 suspended fine assessed two months earlier. The insurance company inspected the property in February of 1994 and canceled the owner's policy, stating it would not reinsure the property until the current tenant vacated. At this pourt, the owner became convinced of the need to enter the progerty for inspection, not only because of the insurance issue, but also because the tenant was delinquent in rent payments. Operating on information the owner reportedly received from a tenants' organization and the county sheriffs office, the owner felt prevented from legatly entering the property. With assistance from the Public Health inspector, the owner was able to gain entry Saint Paul Gty Council Research q5�yZ5 A Study of Remedies for Chronic Problem Properties 5 into the house. It was immediately apparent that the debris and garbage removed from the earterior of the property over the years, had simply been relocated into the house. It was also clear the tenant had not been there for some time. Most of the rooms were impassable because of the accumulation of old motors, tires, cat feces, cans, diapers from the daughter's baby, and other garbage. The house was condemned and posted on the spot. The house became a registered vacant building, and the owner endeavored to clean and fix the property. In ail, some 200 cubic yazds of garbage was removed. Thousands of dollars in damage was done to the walis, floors and carpeting. The house is now remodeled and rented out to a new tenant. 3XX South Saratoga Street This property was a small one story house, located on the back of the parcel adjacent to the alley, in the Randolf and Snelling neighborhood. It was occupied by the owner ° for over 20 years. The City began interacting with this property as a result of complaints by neighbors of garbage piling up. In May of 1990, the situation was summary abated (for discussion of summary abatement see page 20). Neighbors filed several police reports from January through March of 1991 because of the owner's behavior. They said the owner would become inebsiated, and verbally abuse them, yelling obscenities. The owner is also reported to have stood on the roof of the house to yell. During the summer of 1993, the City received numerous complaints of ongoing problems with junk cars, brush and garbage piles on the property. These problems were also summary abated, and finally cleaned up. In October, Public Health inspectors explained to the owner the roof, foundation, and floor joists were unsound, and in need of repair. Inspectors noted, although the owner was cooperative, he was vague and noncommittal about cleaning up and repairing the property. He also consistently did the minimum required to pass inspection. Inspectors were not admitted into the house, so no assessment of internal conditions was possible. This property began to be case managed by Public Health in January of 1994. Behavioral problems continued throughout the spring and summer of 1994. Neighbors described how the owner terrorized them by repeatedly blocking their garage with his truck, verbally abusing them, and urinating on their garage. Exterior property violations also continued, and he was again summary abated for brush and garbage piles. Inspectors continued to talk to him about the unsound Saint Paul City Council Research q�-�25 6 A Study o/'Remedies (or Chronic Problem Properties condition of the house, and the owner relayed plans for rehabilitating it. In one such discussion in mid May, the inspector gained entry to the house while the owner was showing him how he was going to fix it. The inspector found numerous code violations as the house was filled with garbage, plumbing fixtures were broken or inadequate, and floor boazds in the bedroom had broken, leaving the ground e3cposed. The house was immediately condemned, and ordered vacated by 7une 1, 1994. Problems continued until the owner moved, and in late May, the Fire and Police Departments responded to neighbors' calls for service to put out a bonfire started by the owner in a brush pile. In late 7ane, the sUucture became a registered vacant building. It was demolished in late 1994. 7XX Third Street East This five-unit building shows progressive deterioration typical of many chronic problem properties. Reviewing the complaints on this property reveals safety and heatth violations over the years, but does not explain why they occurred. In fact, many of the problems arose as a result of one tenant's reported drug-dealing � activities. This propeiiy has required a high level of City service over at least the last five yeazs. Records indicate complaurts about the property included the lack of smoke detectors, fire extinguishers, and poor heating and lighting. As time went on, the interior of the buitding began to deteriorate. Peeling paint, chipped and ditapidated plaster, broken windows, and a general lack of cleanliness, were cited through 1993. At this time the ceiling was falling through, garbage was prevalent throughout the units, and insects had infested the interior. In all, there have been twenty complaints about this property since 1988 — about three per yeaz. The building was inspected twenty-three times between 1988 and 1995. By 1994, a suspected drug dealer moved into the building. Over the course of several montl�s, tenants in the other fow units left the building one by one because they were afraid of the illegal activities, and potentiat violence. The owner had long neglected the property, failed to screen tenants, and made very minimal repairs. The end result was a deteriorated building that, in all likelihood, housed criminal activities. On August 31, 1994 as a result of inspection for the renewal of a Certificate of Occupancy, the building was condemned and ordered vacant. It has been a registered vacant building since September 1, 1994. In' late 1994, the owner donated the building to a neighborhood housing gronp which resold the property to a local developer. The developer is rehabilitating the property into a single family home. Saint Pau! Crty Council Research ��-�Z5 A Study of Remedies for Chronic Problem Properties 7 THE RANGE OF PROBLEMS In the course of research for this study, many different reasons for the creation of problem properties came to light. Professionals in the field who interact with chronic problem properties on a regular basis emphasize the variety and interplay of the dynamics at work. These issues can generally be broken into the categories listed below. Social Issues: chemical dependence, and alcoholism poor gazenting skilis decline of family structure despair/depression povertyllack of living wage jobs concentration of race and income groups geographically aging-in-place population Prevention & Property Maintenance Issues: lack of financial resources to do necessary repairs incompetence of owner-occupant, landlord/management, or tenant poor housekeeping skills poor or no tenant screening lack of individual responsibility overcrowding Neigh6orhood Dynamics Issues: increasing sophisrication of both tenants and landlords at "beating the system" changing urban population and expectations interplay of housing conditions and property values affect of one prob(em property on a nearby "borderline" property ("broken window" theory of urban decay) age and condition of housing stock generally absenteelandlords Crime & Violence Issues: violence drug activity domestic abuse owner loss of control to gangs, and illegal activities vandalism Saint Pau[ City Council Research �5 - �IZ5 8 A Study of Remedies for Chronic Problem Properties The City has a limited ability to influence many of these causes of problem properties. Therefore, the remainder of this section will focus on expanding the discussion of those issues which both characterize chronic problem properties and may influence City policy discussions. OWNERSHIP CHARACTERISTICS The ownership characteristics of chronic problem properties give insights into the types of problems City agencies must respond to, and the types of policy options that aze most appropriate to handle these problems. Overall, interview and sample data indicate that problems associated with these properties may be attributed to owner-occupants, tenants and landlords, in roughly comparable proportions. Tables 1 and 2 show the source of problems by ownership and structure type. Pub]ic Health, which is responsible for sittgle family and duplex shucture compliance with properiy maintenance codes, indicates the chronic problem properties they handle are roughly equal in terms of owner occupied property to rental properiy. Generally in the case of rental property, the landiord is responsible for property maintenance, although there is a perception tenants are responsible in equal measure for properry maintenance code violations. This concept is reinforced by Fire Prevention perceprions of problem sources. Table 1. Source ofProblem based on Ownership Pattem: Estimates from Interviews Case Managed Properties Public Health Fire Prevention Citizen Services Housing Infoanation Office Owner Occupant Landlord 50% 55% 60-70% 10% 10% 25% Both Landlord and Tenant Tenant 50% 45% 20-25% 70% 60% 5-10% 10% IS% Based on an actval count of case managed pmperties. Of which 90% is landlord responsibility, but acNal cause of problems is estimated to be closer to 50/50. Saint Paul Ciry Council Research �i5-u25 A Study of Remedies for Chronic Problem Properties 9 Table 2. Source of Problem Based on Structure Type One Unit Buildine u lexes 3+ Unit Blde. I& C" N=162 72 59 31 IEG N=12 1 2 9 It appears that rentai property accounts for a somewhat disproportionate share of chronic problem properties. Data on the number of housing structures, by type appear in Table 3. Table 3. Saint Paul Housing Units, 1990 Owner Occupied Rental Single faznily detachedb 52,036 3,683 Single faznily attached' 1,5 ] 3 1,793 duplex 3,243 7,145 � three+units 2,292 37,489 mobile home 15 12 other Total 372 59,471 656 50,778 Total Occupied Residential 110,249 Units Total VacantResidernialUnits 7,344 Total Residential Units 117,583 Source: 1990 U.S. Census 4 I&C sample is the ]isting of properties from January 1994 which had four or more different complaints logged during the course of 1994. The sample was drawn from the I&C database at Citywide Information Services. 5 Infoimational Exchange Crroup property sample is its Febivary 19951is[ of pmperties. See page 18 for discussion of Informational Exchange Group 6 A detached family home dces not shaze a parcel. � An attached single family home shazes a pazcel with other single family homes, such as a condominium. Saint Paul Ciry Council Research ��J � ��J ZO A Study of Remedies for Chronic Problem Properties CRIMINAL AND BEHAVIORAL CHARACTERISTICS It is apparent that there is significant overtap between properties identified as problems by those responsible for property maintenance code enforcement and properties that require multiple calls for service from the Police Department. The case studies at the beginning of this section describe behavioral and criminal problems that complicated and exacerbated the already e7risting housing code violations. Table 4 provides data on those chronic problem properties which have had five or more calls for service from the Poliee Department during the course of 1994. Overall, 6,867 properties Citywide (including residential, commercial and industrial addresses) had five or more Police calls for service during 1994. Table 4. Police Calis for Service in Selected Problem Properties Niunber Pronerties Number and Percentsee 5 or More Police Calls for Service I&C Sampte 162 88 54% IEG Sample 12 9 75% The fact that there is such a high proportion of overlap demonstrates that a relatively small number of properties use a high level of City resources. It also gives insight into the character of chronic problem properties, and the policy oprions and enforcement techniques that are most appropriate to combat the problems. PROPERTY AND NEIGHBORHOOD DYNAMICS There are several levels of dynamics at work in neighborhoods which can act to prevent or encourage the creation of chronic probiem properties. At the first, most basic level, is individual responsibility for maintaining properiy. Responsibility for the proper upkeep of a property is key. Typically, by the time a property becomes a chronic problem, the owner-occupants, IandIord, or tenant is aware of what the pertinent code violations are. They have, however, willfully chosen to ignore it, or are willing to repeat it through their own inaction. This is the single chazacteristic common to all chronic problem properties. Of those properties having five or more calls for service, the average number of calls per properry was twenty. Saint Pau[ City Councrl Research �5-yz5 A Study of Remedies for Chronic Problem Properties 11 Another level of neighborhood dynamics is the role of "peer pressure." This plays itself out in hoth positive and negative ways. For example, if your neighbors paint their house, you are much more likely to reflect on whether your house or fence needs painting. Similariy, investments in neighborhood infrastructure, such as improved streets and lighting, can spur the clean-up of a neighborhood. However, if there is a problem property next door or down the street, you are much less likely to view your own property's upkeep as a priority. Existing research suggests there is a strong connection between housing conditions and market perception of increasing or decreasing property values in neighborhoods. This connection was outlined by research on an extensive survey of Boston housing conditions and properiy sales prices. It concluded that there is a definite need to tailor city and neighborhood strategies to a specific neighborhood's dynamics. An example of this theory is that a home owner located in a neighborhood with declining property values, and properties needing moderate repairs will likely act on some of these concerns: • Home sales based on fear of change; � Arterial or industrial biight; and/or • Racial fears. Further, the research suggests that appropriate strategies for revitalization of such neighborhoods are to: • Special home loan funds; • Tax incentives for repairs; • Thorough code enforcement; • Demolish excess housing; • Procure value insurance; • Enforce quotas on occupancy; and/or • Provide neighborhood housing services if requested. It is important to note that the City of Saint Paul cunently has policies in place which address most of the strategies outlined. A provision whereby buyers aze insured if their property drops in value from the time of purchase to the time of sale. Saint Paul Ciry Councrl Research ��-�� l2 A Study o�'Remedies �'or Chronic Problem Properlies PROJECTIONS FOR THE FUTURE Returning again to the list of factors that may contribute to the creation of chronic problem properties from page 7, we see that many of these factors aze on the rise. Staffin Planning and Economic Development state that it is difficuit, if not impossible, to gauge the influence of each of the factors, on the number of chronic problem properties. However, given the incremental changes in homestead/rernal property, slight decreases in properry values, aging housing stock, crime rates, and so on, we may conclude that the City will be facing a stable or slightly greater number of chronic problem properties in years to come. Therefore, it is critical that the City use the resources avaitable to it in the most efficient and cost-effecrive way possible. CURRENT CITYPO�ICIESAND PROCEDURES The City has a number of policies, laws, procedures and departments that come into play on chronic problem property issues, This section wi[I divide these into the following components, or phases of activity: Phase I: Identification of Chronic Problem Properties Phase II: City Verification of Code Violation(s) Phase III: City Action Phase IV: Outcomes The diagram on the following page provides a schema for the reader. Notably, the City also has programs in place which act to prevent the creation of chronic problem properties. These will be discussed at the end of this chapter. Saint Paul City Council Researeh �5 -�Z� A Study nf Remedies for Chronic Problem Properties I3 Saint Paut Property Maintenance Code Violation Policies and Procedures d ° Properties .; .� . . _ :.:.... .....: ..... .... . ... _.... : : , . .. — w Problem identified by : . .., . v _ ` neighbor, landlord, or tenant �-� �� R ...._,....�:. Block Club o ': _ , :. .._ ..............._.............. ..... .c ._ :::::: :.:s: _• :�.;.>: :•: ; :;.t... _ .:a•� ........ ......., . a ,,, .._..._. . ... ._ .._ .. :; ,:.,._ Neighborhood c:rs::..�; R .:;;;t : .;_:::'::':;...�: :;.. : Problem Communicated ��'. ,..,,:,. c> : _.;.:. � ::..: .:::.::.::.::=s:.:::;::• �=. • •::.:.; Association w ::: � : � :::. .. : .... . :.:. . ....:. .. ':... _ . : .. s �: "� � •i•�� =':�i•i�:`�`�'� •;'� � �'� � � � City alerted to problem �'wPl'. District Council .:::.;;[,: . _ . ::...._._.:. c '.t.� "r.::'t;::.�: ; :t::::t. � .:t:.; �;::[.�..;_ ..� .. . . _ , .. . .:. .... . . . .:. ..:::.:.:tt;:. d'.�:?::;��::t:;sr::_� ...:.:.:.:::::..»,�.,.:,,.....,.:...,.� ._,.-..�....,�.:,,,....��.. . ..:.:..:.:..- v... :. '�" :. : Crtizen Services� - _ .. . .._ _ ... ........ . ... ... + a -. . .� �. . . d � ..._., ...... . .:.:... Problam routed to � ...^.. . . . � . E �:..,..__ � -,..;.� - ..i:: appropriata staff '� � � � � " � . - . ._ :....-.-.. . .:�.::..1 .ri � � :.. ....:.... ... :.:::... .:....: .:; Unsubstantiated/ c •. .. „� ::= .`.�,' '�;; Code Enforcement: Fire PreveM�on, �-� unfounded complaint o• ��.-:'��=""`�-'��?'"""'� Pubiic Health, Police(Foroe Unit � of viotation: no � -- '.. a o �:-.. � -. .. - � -.,;..: : ., �.. �.. -��..- action warranted ,_ - . , .:: .,.::. . . . . .,. . :�.,. _,... .,.. ... a ,;,.� .....:..: ..: _ .:...........:......................: ` o ....:.. ....:.... :; Code violation conTirmed ,.'� � � .... .... . ..:..:.. . .:....... ......... .. ........... ........::.........:... ..... .,......, .,.....,,.._ � .:.... .... :.:: :.:.: ...: ...:..... . . ., .. ..... ........ : ...................__.:,.......,....,::,.,.,. °" �'� �� " '^ Code enforcement option(s) applied _ � ::':._;:z;�°�:;::: � a '.�`:':: :':;:::';r'. ::;;::�:::'.:: :; .:::_:r.;; •;.;:,_�::.:.:• :: .:.;::..�._ :�.::;::.; :::,s,::.::;�:. R ayi .,,...:..::.,..� :....::..:....�..:.:_.•.�:�..r::::::::�.:'._;::._:::::;._:: ;�•.:•.:::�: :�.: a F Condemnation � Citation for Correction . Summary Owner T rocedures code violation notice abatement � warned of = p ��. procedures violation V .....:....: ....,...-.....:. �. Code vioiation Code violation ' Code violation Code violation Coda violation y abated . abated . abated ' abated abated Y � � Housing CouR ' Appeal filed: �' Appeai filed: ; Appeal filed: Ma case > m . enforcement � flttes, � enforcement y C enfol'cement . stayed manage or m d stayed imprisonment : sta ed monitor H � Y � May case R y; Building becomes � May revoke , ma�a e o� ---- - - a a registered vacant � C of O : May case . monitor .' ' .,� '< .,, .. . � bui(ding manage or . �.;� ::::::::::: � 0 � ' May case �, monitor ...,..,�.�.� ........... ...._............ �. .. .-.. .. ....... . .�+ � Demolition - manage or .. . . ��..- � ' monitor .. .r�. PrOb��:: �. � , :,...... . � May revoke ' � � � � .!�"'�:::::::c::i::::c::::::: :i :::......:................. . .........................:......_. .................................................... ._ .CofO .._.:�� ... .. ... ....... ..r:ema�ns:::::::::: �: ............... ................ .... ........ .. . . ... . . . _ . . . . . . . . . . . . . . . . . . . . . _. . . . . . . ... . . . . . . . .. _. . .. . . -: . _:_. . . . . : _. . . . ., . . . . . . . . . . : : . . . ..:. .. : . . : . . . . ..:. : . . : . : : . 1995 Co�nell Rasaareh Graphles �5 - �fZS I4 A Study of Remedies for Chronic Problem Properties PHASE I: IDENTIFICATION OF PROBLEM The initial idemification of a problem usually happens long before a property may be considered a chronic problem. This initial identification of a problem on or in a properiy almost invaziably falis to neighbors and tenants. Although they may not be awaze that the problem they are eacperiencing is a code violation, they are the voices that alert the system to look more closely at a properiy or situation. Often one person calls on behalf of several. There are several contacts these people can make in order to relay information to appropriate City staff. At the neighborhood level, people may first contact their Block Club, District Council, or neighborhood association. This contact allows information to be shared about City procedure, and any past experiences the organization may have had with that property or situation. These organizations also often have staff or volunteers who are familiar with "the system" and can alert the appropriate City staff of a potential code violation. At the City tevel, this type of call for service wil[ fypically go to the Office of Citizen Services, or to an enforcement department. Of the estimated 40,000 calis Citizen Services receives annuaity, there are approximateiy 25,000 aze calls for service, more than half of which (14,000-15,000) are housing and nuisance code-related. Information gathererl in calls is routed to the appropriate enforcement agency, either Public Health for one and two-unit structures, or Fire Prevention for three or more unit structures. The Information and Complaint database used by Citizen Services and the enforcement departments allows the City to track a number of variables, including the number of calls for individual properties, and the inspector's findings. The enforcement agencies may also identify problems, either through direct lmowledge or citizen input directly to them. Chronic problem properties are identified through a combination of the enforcement department's history with a property, and ongoing neighborhood concem. PHASE II: CITY VERIFICATION OF CODE VIOLATION(S) The City must verify that complaints received aze actual code violations, which in almost all cases requires an inspection Response time to individual complaints varies based on the enforcement departmenYs cunent work load and the type of complaint. For example, a life-safety complaint, such as "no heat" will under almost all circumstances elicit a same-day response from the enforcement department. Other complaints are generally handled in two to tk�ree working days, although for less Saint Pau! City Council Research �5-�25 A Study of Remedies for Chronic Problem ProDerties I S serious issues, such as "tall grass and weeds," there may be up to a five day response time. The City does receive housing and nuisance-related complaints that: 1) are not code violations; 2) were conected before an inspector reviewed the situation; or 3) were unfounded. In such cases, a note is made in the file and in the Information and Complaint database which explains the circumstances, and that no action was required at the time. Both Public Health and Fire Prevention work with the goal of maintaining minimum health and safety standards for housing. Their main goal is overall code compliance. Code compliance may be gained by sunply informing the owner of the code violation, or it may require the use of correction notices, citations or summary abatement procedures. The choice of the best enforcement option for any given situation is usualty left to the discretion of the individual inspector, although both enforcement divisions have policies which provide guidelines on most of the issues encountered. Public Health The Code Enforcement Section of the Division of Public Health enforces minimum housing and health requirements on all one and two family homes, and on all exterior residential property. Public Heaith also issues correction notices, summary abatement actions, violation citations, and condemnationslorders to vacate. These procedures are described on pages 19 through 22. The Code Enforcement Section of Public Health currently operates with 15 inspectors in three functional areas: interior, exterior, and vacant building inspections. Staff responded to 12,290 calls for service in 1994, which is up from the past two years, when there were just under 11,000 calls for service. In 1994 they also conducted 36,492 inspections and reinspections. This is up significantly from the past two years. There were 31,900 inspections and reinspections in 1992, and 22,920 in 1993. Table 5. Public Health Staffing and Inspections, 1994 Staffine Number of Ins�tions Interior and Ea�erior 8 28,363 Vacant 8,129 Total 12 36 492 10 Staff assignments fluctuate based on workload. Sab�t Pau/CiryCouncilResearch �5-�z5 16 A Siudy of Remedies for Chronic Prnblem Properties Fire Prevention The Fire Prevention Division enforces minimum housing and health requirements, and fire code requirements on all commercial property, and residential buildings which are three units or larger. All buildings in these categories must have a Certificate of Occupancy (C of O) verifying that minimum code requirements have been met. There aze currently 8,037 structures with Certificates of Occupancy. OFthese, 3,200 are residential and 470 are mixed use. Fire Prevention also issues cosection notices, violation citations, and condemnations/orders to vacate. The Saint Paul Legislative Code Chapter 33.05 requires every building or structure, other than one and two-family dwellings, to have a Certificate of Occupancy issued by the Bivision of Fire Prevention and posted on the premises. Certificates have been required on newly conshucted buildings since 1953. In 1956 the City Council passed Ordinance No. 13436 requiring Certificates on existing buildings. Before a building can be certified, it must be inspected by the Division and found to conform to the requiremeirts of the Fire Code, the Zoning Code, the Housing Code, and the Building Code at the time of construction or at the time of conversion to its present use. Certificates of Occupancy for residential structures aze renewed on a two-year cycle; commercial structures are renewed on a one or two-year cycle based on whether the building and its use are considered to be a high or low fire hazard. Smaller stmctures are inspected in their entirety, while larger residential buildings will have at least 25% of their units inspected. There are currently 16 inspectors in the Division of Fire Prevention, about 13 of whom conduct C of O inspections. In 1994 staffconducted 6,100 inspections and reinspections, which is down from previous years. A breakdown of these inspections appears in Table 6. Fire Prevention also conducts a significant number of inspections for permits and ticenses." � 1 The numbers of inspections and reinspections in this table are not readily comparable to the Public Health fignres on page I5. C of O inspecrions are substantially different in character, as they are comprehensive in nature. Saint Paul City Couttcil Research q5-�z5 A Study of Remedies for Chronic Problem Properties l7 Table 6. 1994 Certificate of Occupancy Building Inspections C of O Inspections Residential 1,116 1,833 2,318 5,267 Commercial 1,562 ],589 1,472 4,623 Total 2,678 3,422 3,790 9,890 C of O Reinspections Complaint-Based Inspections Total The City charges a fee for the service of C of O inspections, which ranges from a minimum of $75.00 to a m�imum of $250.00. Reinspections are charged at a rate of only 10% of the C of O fee, and range in cost from $7.50 to $25.00. There is no chazge for complaint-based inspections. C of O fees cover approximately 40% of the cost of conducting the inspections, and in 1994 generated $338,000. Tabie 7. Fee Schedule for Certificates of Occupancy Residential Commercial Reinspections $9.00 per unit $7.00 per I,000 square feet Add 10% Minimum Maximum $75.00 $250.00 $75.00 $250.00 $7.50 $25.00 Police Department/ FORCE Unit Much Police Department work, and many calls for police service pertain to problem properties. This is demonstrated by the large number of properties which have multiple calls for service over the course of a year. In 1994, 6,867 properties (includes residential, commercial, and industrial) in Saint Paul had five or more calls for service. The FORCB (Focusing Our Resources on Community Empowerment) Unit of the Police Department maintains an organized/formalized relationship between Public Health, Fire Prevention, and the Police Department. The mission of the FORCE Unit: is to organize and work with block clubs, neighborhood groups and the Patral Division to identify their concems about crime prevention and pubiic safety issues and work in concert to develop strategies for long- term solutions. Saint Paul City Counci! Research q5-�I25 18 A Study of Remedies for Chronic Problem Properties The main goats of the FORCE Unit, in addition to cultivating community-based solurions to crime and safety concerns, are to: work with the community to reduce the level of drugs, narcotics, and disruprive behavior at the neighborhood level; and eliminate the use of substandard housing as a base for drug dealers and other illegal activities through the coordinated enforcement efforts of the FORCE officers, and the housing inspector. This is partially accomplished through the aggressive enforcement of housing code violations against drug dealers and "crack houses" to eliminate cheap and substandard kousing as a haven for drug activities in neighborhoods, and work with landlords to better screen tenants and eliminate disruptive behavior. The F012CE Unit is staffed by approximately 24 of�icers, 6 crime prevention coordinators and officers, 3 sergeants, and one housing inspector. There were 138 properties inspected in conjunction with FORCE activities in 1994, and of these 78 had condemnation procedures associated with these FORCE warrants in 1994. Informational Exchange Group The Informational Exchange Group (TEG) is a cross departmental group of City staff and community representatives who meet monthly to share information on problem properties. Included in these discussions are representatives from: • Fire Prevention • Public Health • Police Department/Crime Prevention Staff & FORCE • Public Aousing Agency • Citizen Services • LIEP/Zoning • Planning and Economic Development • Community Stabilization Project • Tenant's Union The IEG provides a forum where contacts in other departments can be established. The group discusses approximately 12-15 properties monthly, and the individual departments shaze their e�cperiences and history with the properties. Saint Pau! City Council Research Q5 -�IZS A Study of Remedies for Chronic Problem Properlies 19 PHASE III: CODE ENFORCEMENT OPTIONS The Legislation The code enforcement options available to the City of Saint Paul are based on the City's Legislative Code, or on l�nnesota Statutes and regulations. Most enforcement actions taken by the City are based on the police powers which ailow the City to enact laws to protect the health, safety and welfare of its citizens. A summary of the laws and regulations which guide the inspection process appears in Table 8. Table 8. Legislation Governing Certificate of Occupancy and Public Health Inspections Saint Paul Le�islative Code Chapters Minnesota State Le islation and Re�ulations 18: Board of Appeals and Review Uniform Building Code 19: Powers of Inspectors to Enforce Provisions of Unifoixn Plumbing Code Code Uniform Mechanicai Code 29: Unlawful Use of City Property Unifortn Fire Code 33: Building Code and InspecGon Nationa] Elechic Code 34: Minimum Housing Standards for Dwellings and Mimiesota State Energy Code Multiple Dwellings (Housing Code) Asbestos Hazard and Emergency 35: Rental Disclosure Fosting Response Act (AI�12A) 39: Smoke Detectors Dangerous and Nuisance Buildings 42: Filling of Cesspools and Septic Tanks State Energy Code 43: Vacant Buildings Minnesota Pollution Conffol Agency 45: Nuisance Abatement (MpCA) Regulations 60-67: Zoning Code 105: Care and Maintenance of Boulevazd 113: Snow and Ice on Sidewalks 163: Abandoned Vehicles 189: Truth in Sale of Housing 198: Keeping of Animals 290: Use of Deception to Enter Residence 292: Offenses Directed to Religious Beliefs and Racial Origins (Graffiti) 334: Pest Conh'ol 357: Solid Waste Saint Paul Ciry Council Research a5-�42� Z p A Study of Remedies for Chronic Problem Properties Owner Warning If complaints are substantiated by inspectors, there are a range of options available to encourage correction of code violations. Warning an owner is the least forceful option available, but in some cases it is sufficiem to get code compliance. Owners aze warned of violations in about 5% of cases. Correction Notice A correction notice is normally issued when a code violation is found. The property in violation of the code will then be reinspected to determine if the violation was corrected. If the violation has not been corrected, the inspector may issue a citation to the property owner. Summary Abatement The Summary Abatement process is outlined in the Nuisance Law, Chapter 45 of the Legislative Code. It works to eliminate public health and safety nuisances such as tall grass and noxious weeds, unshoveled snow on public sidewalks, abandoned motor vehicles, broken sewer lines, dilapidated garages, etc. It also boards up vacant buildings. This process is overseen by the Division of Public Health. The Division of Parks and Recreation conducts the majority of summary abatements, and the Thomas-Dale Block Club conducts the remainder of the abatements. The process for summary abating a property begins when an inspector issues work orders for a code violation. At that point the owner must clean-up or fix the code violation within a specified number of days' or the City will abate the violation. There are new procedures within the Department of Public Health whereby a pre- authorized work order is issued. Using this process, the "clean-up" or abatement crew is sent to the property at the end of the compliance period. The crew will then deternune if the code violation was abated, and if it was not, they will do so. Normally the inspector closes the file at the point a pre-authorized work order is issued, unless the property is being monitored as a case managed property. The summary abatement process is very effective for quick removal of nuisances, but it does very litde to prevent or discourage future violations. Of all properties which were summary abated in 1994, approximately 15% were abated two times in the course oftheyear. Ofthe 1,105 properties listed in the summary abatement logs at lZ Four to ninery days based on the type of violatioa Saint Paul Crty Councit Research q5-�iZ� A Study ojRemedies for C7tronic Problem Properties 21 Public Health listed in Table 9, 60% required City clean-up. The average cost of the clean-up was $306. Table 9. 1994 Summary Abatements Number of Suttunary Abatements Issued Number of Proverties 1 948 2 120 3 31 4 6 City costs for the abatement procedures are assessed to the property owners real estate taxes. These costs are generally recouped through the use of this mechanism. In 1994 the City spent $331,000 for summary abatement clean-ups. These expenses aze based on the summary abatement of the foilowing violation categories: • 1,498 nuisance and hazard • 317 snow shoveling • 6 broken sewer lines • 211 vehicles towed Currently an owner will be assessed $115 per hour for grass cutting, based on the City's contract with the Thomas-Dale Block Club. The owner wiil also be assessed $25 for processing by the Finance Division, and a$15 service charge from the Public Health Division. Citation Citations are one of the strongest tools available to inspectors to achieve code compliance. Typically other enforcement options are tried, or consciously rejected before an inspector issues a citation. Most citations are based on violations of the building , housing and zoning chapters of the Legislative Code. Table 10 shows the number of citations issued by Fire Prevention and Pubiic Health from 1992-1994. Saint Paul City Council Research ��-�2� 22 A Study of Remedies�'or Chronic Problem Properlies Table 10. Citations Year Public Health Fire Prevention* 1992 232 189 1993 574 66 1994 405 66 Table includes FORCE citations. * These figures aze for residenrial slructures only. A review of Public Health logs of citations issued in 1994 indicates that 354 properties received 412 citations. Thirteen percent of the properties cited received two or more citations in 1994. This figure is similar to the t5% of properties which were summary abated two or more times in 1994. Condemnation Condemnations are used as an enforcement option in cases where the inspector finds the housing unit is unfit for human habitation. Chapter 34.23 of the Legislative Code outlines the reasons why a dwelling may be condemned. These reasons include lack of basic facilities, such as heat or water, or severe rodenY infestatioa. Any residential structure or residential unit which has been condemned or placarded as unfit for human habitation must be vacated by the date specified in the condemnation order and on the placard. Condemnations of this sort are grounded in the police powers which protect the health, safety and welfare of citizens.'� City condemnations are usually pursued based on Legislative Code Chapters 43, 45, the Building Code or �'ire Code. Data on condemnations over the past three yeazs appear in Table 11. 13 Often, the use oFthe eminent domain is referred to as condemnation. Eminent domain is a different concept. Its use is based on the Fifth Amendment, and it requires compensation. In both cases ihe City is acting in the public interesL Saint Paul City Council Research �5 -4Z5 A Siudy of Remedies for Chronic Problem Properties 23 Table 11. Condemnations Year Public Health Fire Prevention* 1992 247 138 1993 364 99 1494 299 100 Table includes FORCE citations. * These figures are for residential structures only. PHASE IV: OUTCOMES There are a number of outcomes possible after City uses any of its enforcement options. Clearly the best outcome is to have the property brought into code compliance. However, there are often other outcomes, and further City action required. These outcomes are discussed below. Housing Court Ramsey County Housing Court was started as a pilot project wiYh state support in 1990. Since that time it has been made permanent, and has maintained its state support. Approximately 95% of Housing Court cases are from the City of Saint Paul. Housing Court referees hear three types of cases: 1) conciliation court cases- generally tenandlandlord disputes; 2) Evictions-through the unlawful detainer process; and 3) housing code viotation cases. A breakdown of cases heard by housing court over the last five years appears in Table 12. la Joseph Gockowski, Raznsey County Civil Division Court Administrator. Saint Pau/ City Council Research g5- �-i25 24 A Study of Remerlies for Chronic Problem Properties Table 12. Housing Court Cases Filed in Ramsey County, 1990-1994 Number of Hous� Cour[ Cases Filed Year Conciliation Court Evictions Housing Code �olations 1990 490 4,527 576 1991 699 4,976 672 1992 518 4,487 620 1993 795 4,239 795 1994 422 4,348 658 Housing Code violations are prosecuted in Housing Court by the City Attomey. The goal ofthe City Attomey's offce for these cases is swift accountability for viotations —�ousing code compliance is viewed as a result of this accountability. �olations of the Housing Code are criminal cases, and are prosecuted as petty misdemeanors or misdemeanors, based on a determination of the City Attorney. The City Attomey may a[so make recommendations about appropriate fine levels, or in rare cases, imprisonment. Fines aze collected by Ramsey County for code violations, and are generally perceived to not cover the cost of operating the Housing Court. Table 13 shows the revenues generated by fines over the last four years. Table 13. Revenues from Housing Court Fines 1991 $17,531 1992 �15,276 1993 $9,690 1994 $17,833 A person charged with a housing code violation will have a pre-trial conference with the City Attorney and housing inspector. Violators also have the oprion of opUng out of Housing Court and going to district court, although most choose Housing Court. There are no statistics or studies available as to Yhe effectiveness of housing court at eliminating future violations. Saint Paul Crty Councrl Research 45-4Z5 A Study of Remedies for Chronic Problem Proper(ies 25 Revocation Of Certificate Of Occupancy ff a building is required to have a Certificate of Occupancy (C of O), and is found to be repeatedly or consistently in violation of the applicable sections of the Legislative Code, the Fire Marshall may revoke the building's C of O. Because a building covered by the C of O requirement must have one in order to be habitated, such a revocation would close a building for use. There were ninety-one revocations of Certificates of Occupancy for residentiai buildings in 1494. This figure is down from past years, as there were 130 such revocations in 1993, and 270 in 1992. The decreasing numbers of revocations are reportedly due to increased code compliance for this type of structure. Registered Vacant Buildings The registered vacant building program established in 1991 provides a mechanism whereby abandoned, condemned or otherwise vacant buildings may be tracked and monitored. Chapter 43 of the Legislative Code specifies that owners must register vacant buildings within thirty days of their having become vacant. There is a$200 annual fee for registration of a vacant building. The owner is responsible for keeping the building secure, and providing the City a plan and timetable for retuming the building to suitable occupancy or use, andloc for the demolition of the property. If an owner wishes to rehabilitate the building, a$2,000 deposit is required before a building perinit wiil be issued. There were 485 registered vacant buildings in 1994, 69 of which were demolished, and 230 of which were rehabilitated. Case Managing/Ongoing Monitoring Public Health identifies and case manages problem properties for compliance to codes and elimination of neighborhood eyesores. The program's goal is to proactively address problematic properties which generate multiple and repeat neighborhood compiaints through a coordinated program of enforcement with the Police Department, other agencies and neighborhood associations. The inspector works closely with the owner and, if applicable, the tenants, in order to bring the property into compliance with the City's praperty maintenance codes. The case managed properties program is staffed by one inspector. This inspector reviews case histories, inspects the properties, formulates action plans to eliminate ts Certificate of Occupancy is required for residenlial buildings with three or more units. 16 This fee generated $60,800 in 1994; $59,459 in 1993; $67,333 in ] 992. Saint Paul City Council Research �5- ��z5 26 A Study of Reme�es /'or Chronic Problem Properties current and probable future violations, meets with the owner, and performs follow-up enforcement actions. There has been no evaluation of this program to determine its effectiveness, but anecdotal information favors this approach. Problem Remains Regardless of the enforcement option applied, it is always possible that a property will remain a problem by not correcting the code violation. In such cases, the City must pursue more or different code enforcement tools. For example, if the owner does not abate the code violation after having received a correction notice, a citation would be issued. This dynamic is common to chronic problem properties. Typically such properties remain in "the system" until the violation is corrected. A more insidious problem is presented by owners who correct the code violation when notified, but allow the problem to recur. In such cases the affected neighbors or tenants must once again initiate action by catling the Ciry for service. Chronic problem properties often fall into a pattern of repeat vioIations over the course of months or years. Consequently, tke City's staff end-up making inspections of a properiy time and again for the same or similar code violation problems. PREVENTION TOOLS The City has many programs that may fall into the category of "property maintenance code violation prevention." Indeed, the issuance of a citation may fall into this category. The programs described in this section address legal action, community action, proactive enforcement, and financial incentives to do repairs. An ongoing problem in the correction of code violations is the overall lack of money to do the necessary repairs. In the casa of rental propertg there may be insufficient cash flow generated by the property to economically justify the necessary improvements. In the case of owner-occupied property, a combination of neighborhood dynamics" and low income may prevent repairs. Because of these issues, most of the prevention tools discussed are targeted at financing the repairs necessary to bring properties into compliance with the applicable codes. The programs and initiatives described below are not a comprehensive listing of code violation prevention efforts. They represent a selection of those perceived to be key in the City's efforts to reduce and eliminate the potential creation of problem �� See discussion of neighborhood dynamics on page 10. Saint Paul Crty Council Research q5 -�`25 A Study of Remedies for Chronic Problem Properties 27 properties. While most of the programs are City initiatives, state and community- based efforts are also included. Rental Tax Equity Rental Taac Equity is a program which provides owners of single family and duplex rental properties with a lower homestead tax rate in exchange for improvements in their properties. It is administered by the City's Housing Information Office. Rental Tax Equity was a pilot program in 1994, and the City Council requested the Minnesota Legislature to continue the program for another year. The program certified 433 rental properties to receive this tax credit, 90% of which made repairs. The average estimated tax credit per property was $1,160, and the average amount spent on repairs was $1,138. Houses to Homes Program The Houses to Homes program tazgets vacant houses for improvement, as well as vacant lots for new construction. This program is administered by the Planning and Economic DepartmenYs Housing Division. Properties aze improved and resold for home ownership after they aze acquired, and rehabilitated. The program also calls for houses to be demolished when necessary. The Planning and Economic Department has expended $4,237,670 to address 143 properties over the last four years. Values of vacant houses, before rehabilitation or demolition ranged from $12,000 to $35,000. After rehabilitation values increased from $57,000 to $85,000. Values on vacant lots ranged from $3,000 to $8,000. Development of new single family homes increased the values from $68,000 to $85,000. This Old House This Old House is a statewide program which is aimed at preventing or reducing property tas increases resulting from home improvements. This Old House legislation excludes all, or a portion of, the increase in a property's estimated market value due to improvements from the taxable value of the property. The program is targeted at homes which are at least thirty-five yeazs old at the time of rehabilitation, and assessed at less than $300,000. Owner-occupied duplexes and triplexes are also eligible. This Old House allows for a 50% tax break on the increased value due to improvements for homes thirty-five to sixty-nine years old, and a 100% taac break on those more than 69 years old. The tax break lasts for ten years. The program has Saint Paul City Council Res¢arch q�-�Z5 ZS A Study v�Remedies for Chronic Problem Properties been in effect since 7anuary 1993, and is administered by the County Assessor's Office. Housing Information Office Programs The Housing Information Office (HIO) acts as a central contact point for housing information, education, counseling, and advocacy. The HIO has a number of initiatives which address issues common to many chronic problem properties. These are outlined below. • Tenant/Landlord Education: basic information provision about the rights and responsibiGties of tenants and Iandlords. (625 Saint Paul households reached in 1993.) • Code Enforcement Information: assistance in obtaining inspections, and follow-up. (161 Saint Paul households reached in 1993.) • Relocation Asristcmce: assistance to households displaced due to code condemnations. (511 Saint Paut households reached in 1993.) • Ufility Shuf-Off flssistance: assistance to househotds to negotiate payment with utilities, and location of emergency funding. (58 Saint Paul households reached in 1993.) • Rehub/Home Improvement Information: basic information provision on home improvement loans and defened grants through the City, State, and private sector for landlords and owner-occupants. (67 Saint Paul households reached in 1993.) Community Stabilization Project The Community Stabilization Project (CSP) is a Saint Paul community-based nonprofit organization which assists tenants in getting necessary repairs to their homes. The main tools used by CSP aze outlined below. • Legal notiftcation to landlords • Tencmt/knullord negotiarions represent about 80% of the work done by CSP. CSP believes it has a higfi success rate with this ogtion because of the existence of Tenant Remedies Actions as an option (described below). Further, CSP has leveraged $600,000 in Iandtord Saint Paul City Council Research �;5-�25 A Study of Remedies for Chronic Problem Properties 29 repairs through negotiation, because of the possibility of a Tenant Remedy Actions. • Tencmt Remedies Action is a legal mechanism whereby the court appoints an administrator for a property, removing ownership from the landlord, a process also known as receivership. The court adminisuator makes the necessary repairs to the properry using money from one of several sources of money: URAP funds, mortgages taken out on the properry by the court-appointed administrator, or rental income generated by the property. The Community Stabilization Project has used the Tenant Remedy Action process on 21 properties. • RentFscrow is a mechanism whereby the court allows tenants to pay rent into court administered escrow account. The rent is withheld from the ]andlord until repairs are made. • Rent Abatement Process is a mechanism whereby the court orders a ` landlord to pay back a tenant a percentage of rent based on the substandard condition of the rental property. Substandard property determinations are made based on code violations. • Legal rent withholding is the process were a tenant (as an individual, and not througJi court action) withholds rent based on the substandard condition of the rental housing, as deternuned by code violations. • Facilitation with the City's code enforcement departments. Neighborhood Sweeps Neighborhood Sweeps are systematic e�cterior inspections of a small targeted area performed by the Division of Public Health in cooperation with the affected neighborhood. They often happen in conjunction with neighborhood "Clean-Up Days," and provide a mechanism for the proactive inspection and identification of code violations. As such, Neighborhood Sweeps are both a prevention and enforcement tool used by the City. From 1992-94 there have been 22 to 24 Neighborhood Sweeps annually. 18 UItAP (Urban Revitalizarion Action Prograzn) funds are state grant monies targeted for redevelopment activities. The activities and accounts aze administered by the City of Saint Paul. The Communiry Stabilizauon Project has used $13Q000 in LJRAP funds in the las[ four years. Saint Paul Ciry Council Research q5 -�2� 30 A Study of Remedies for Chronic Problem Properties PO�ICY OPT�ONS There is a clear perception in Saint Paul that there are too many chronic problem properties. This chapter will explore some of the policy options available to the City to address its current chronic problem properties, and prevent the creation of future chronic problem properties. The ideas presented below are organized into the following categories. • Rental property-specific options • Enhanced enforcement options • Procedural options • Education options These options will be discussed in terms of their concept, potential effectiveness, and estimated cost. RENTAL PROPERTY-SPECIFIC OPTIONS Rental property-specific options are considered to be important because of the high [evels of caIts for service the CiTy receives on rental properties. There are approximately 55,000 owner-occupied single-family homes and duplexes in Saint Paul, and 9,000 rental singte-family homes and duplexes. However, rental properties account for 50% of the calls for service to these types of properties. Rental property-specific options are popuiar because they target properties which account for a disproportionate share of City services. However, in terms of all chronic problem properties, one and two-uniY buildings, are estimated to comprise half ofthe problems. Thus, rental property-specific solutions will only target a part of the problem. Rental Registration Rental registration is a concept which has been discussed on and off in the City for many years. Rental registration would provide a mechanism which would require rental properties to be registered with the City. Because rental properties with three or more units are already covered by the Certificate of Occupancy Program, rental regis[ration is usuaily thought of as applying to one and two-unit properties. Such a registration would provide the City with more accurate information about the property's management, or owner. Moreover, it would provide an additionai enforcement option since the registration for a rental property could be revoked for Saint Pau/ City Council Research �S��iZS A Study of Remedies for Chronic Problem Properties 31 repeated code violations, in much the same manner that a Certificate of Occupancy may be revoked. Rental registration could be constructed to require inspection prior to registering a building with the City, and also inspection on a periodic basis." Alternatively, rental registration could be granted automatically, and inspections of these properties would take place based on a complaint basis, as it does now. The cost ofrequiring rental registration for one and two-unit rental properties would vary based on whether proactive inspection is required. If inspection is a requirement for registration, it would substantially increase the workload for the Division of Public Health. An estimated 9,050 rental properties would be covered by this policy. Public Health estimates the cost for such a program to be approximately $70 per unit. These properties would require an initial, as weil as ongoing periodic inspections. The advantage of this option is that rental properties would be much more likely to be in compliance with the codes. However, the cost for the City in additional inspectors could be prohibitive. If inspection of registered rental properties is on a comp(aint basis, the City's costs will be limited to the administration of such a program. These administrative costs may be mitigated by rental registration fees. This option has the advantage of adding another enforcement tool—the revocation of registration, without the disadvantage of significantly higher inspection costs. Landlord Licensing The idea of licencing landlords is similar to rental registration in marry respects. Landlord licensing also applies to one and two-unit rental properties. The City would still need to consider whether proactive inspections or complaint-based inspections are more appropriate—and thus cost considerations are similar. Finally, landlord licensing also provides an added enforcement tool. 19 For the first several yeazs, this would require "provisional" registration pending inspection. Inspection staff would be overwhelmed if all properties required inspection upon enactrnent of such a program. In Minneapolis where this Type of requirement was enacted, over 80,000 units require registration. Since the program was enacted in 1991, just over 10,000 units were inspected. 2° Proactive inspection is regulaz, scheduled inspection, as opposed to complaint-based inspection. z1 Based on 1990 U.S. Census data. Saint Pau! Crry Council Research q� - �425 32 A Study of Remedies for Chronic Problem Properties Landlord licensing differs from rental registration in that it would require the licensing of landlords in order to conduct business in the City of Saint Paul. The implication is that repeat code violations would lead to a revocation the of a license to conduct business in the City—not just the loss of registration for one building. According to Public Health and Police Department staff, there aze an estimated 30 landlords who cause the majority of problems, and these landlords control almost 1,000 units. This option has the advantage of targeting landlords who are negligent in maintaining their properties at City code stan@ards. A potential difficulty of this policy option is the confusion and administrative difficulty of targeting such a program only at the landlords of one and two-unit rentat properties. Clearly, many landlords own this type of properry, in addition to property covered by the City's Certificate of Occupancy process. A landlord licensing requirement, therefore, has the potential to create more onerous requirements for those landlords. Finally, there is the issue of equitable treatment of all properties. Using landlord licensing, the City would be talang a philosophically different approach to inspection by focussing as much on owners, as on the specific code violations of individual properties. Expansion Of Certificate Of Occupancy Process An expanded Certificate of Occupancy (C of O) program would apply to one and two-unit rental properties, as does rental registrarion and landlord licensing. It would, by definitioq involve proactive inspection of one and two-unit rental properties. E3cpansion of the C of O program is the most straight fonvazd approach, should the City wish to institute a proactive inspection process for one and two-unit rental properties. This is because the City already has in place the C of O program. Additionally, recent rules changes in the State Building Code would allow one and two-unit dwellings to be covered by Certificates of Occupancy. These changes take effect March 20, 1995. Costs are estimated to be similar to those of the rental registration program option requiring proactive inspection, i.e. $70 per unit. Again, the fee for the C of O would partially offset the added costs. As mentioned eazlier, current estimates indicate that 40% of the costs of running the C of O program are recouped by C of O fees, An advantage to using the C of O pragram is that it would treat all rental property in the same fashion. Disadvantages would have to do with the use of the proactive inspection approach, which is costly for both the public and private sectors. Saint Paul City Council Research R5-�t25 A Study of Remedies for Chronic Problem Properties 33 f �_►`I_i7��t�� 17��'��7�l7 J� �� ZI� `►L►`� Increased Certificate Of Occupancy Reinspection Fees Tncreasing the cost of reinspection on C of O covered properties from 10% of the C of O fee (page 17) to a fee more accurately reflecting the actual cost to the City of conducting reinspections is a policy option. Current fees at the 10% rate translate to a fee of $7.50 to $25.00. An increase in fees could result in faster code compliance with correction orders, and fewer necessary reinspections. Relatedly, although no fee is attached to complaint-based inspections for C of O properties, fees could be considered for reinspections following a compliant-based inspection. Again, the fee would act as an incentive for faster code compliance, and would probably result in fewer reinspections. Notably, any fee established for complaint-based reinspections for C of O covered properties should also be considered for one and two-unit properties. Graduated Fine Structure A graduated fine structure for use in Housing Court has been proposed on several occasions. In practice, a system of minimum fines would need to be established, and a graduated system would require higher fines for multiple offenses. Cunently fines are determined at the discretion of the Housing Court referee, although the City Attomey proposes suggested fine levels in many cases. A graduated fine structure would replace the discretionary system with a mandatory one. Such a proposal could be made by the City, but would require support of the Housing Court. Graduated Fee Structure Like a graduated fine structure, a graduated fee structure depends on the establishment of a system of minimum fees. Graduated fees would be an add-on the original fee charged. Fire Prevention already has in a place a system of minimal fees for the Certificate of Occupancy program. Fees for reinspections are based on 10% of the fee paid for the C of O, and as mentioned earlier, this reinspection fee could be raised. However, Fire Prevention does not charge for compiaint-based inspections of C of O properties, nor does it charge for reinspections based on the original complaint. In the case of Public Health, almost all inspections are complaint-based, and there are no fees associated with either inspections or reinspections. There are two issues that must be taken into account in contemplating a graduated fee for service. First, any fees estabiished must reflect no more than the City's cost for provision of the inspection service. So within a graduated fee structure, the highest Saint Pau! Crty Council Research �5-y2� 34 A.Study of Remedies J'or Chronic Prnblem Properties fee could not be higher than City cost_ Second, the City should consider treating properties inspected by Public Health and those inspected by Fire Prevention in the same fashion. For e�cample, if there is a charge for a complaint-based reinspeetion for Fire Prevention, there should be a similar charge levied by Public Health. PROCEDURAL OPTIONS Improving procedures for dealing with chronic problem properties is largely a communication and a"priorit}�' issue. City Council has maintained a long-standing concem over the effectiveness of City policies addressing chronic problem properties. Additionally, in the Mayor's State of the City address, the Mayor mentioned the esYablishment of a sYrike force to deal with problem property issues. This discussion will focus primarily on communicarion measures that address the issues of chronic problem properties. Increased City Agency Communication Having the right information at the right time is key in dealing effectively with chronic problem properties. Many City depaztmerns and agencies can be involved in different roles with the same property simultaneously. Coordinating their efforts is very important. There are cunently tluee cross-departmental groups, which are largely vehicles for improved communication, and do not have authority as a group for action. They are: • the Housing Coordination Team which deals with a broad range of housing concerns; • the Informational Exchange Group which deals specifically with problem properties; and • the Enforcement Coordination Committee (formerly Fire-BID group) which deals with coordination of enforcement efforts. Despite the existence of these groups to facilitate interdepartmental communication, there are some areas for which information sharing could be improved. The first such area is intra-departmental communication. There is currently no fast and efficient way to ascertain the City's history of interaction with a property, outside of pulling the individual departmenYs paper file on the property and reviewing it. Moreover, day- to-day communication between departments is somewhat haphazard with regard to actions on specific properties. There is no centralized database file system which gives indications of individaal department actions on a property. Much of the communication that does occur is because an experienced inspector wili know who to ask what questions and when. Saint Paul Ciry Counci[Research a5-y25 A Study of Remedies for Chronic Problem Properties 35 Currently the City's Information and Complaint database system offers the closest match to current enforcement department needs in a database system. However, the Information and Complaint database system was constructed to follow a complaint through the City "system," not to facilitate cross-departmental communication on enforcement efforts to mitigate problems. The lack of a shared source of information on enforcement efforts makes it extremely difficult to detemilne which properties need more cazeful attention because they have the malangs of a problem property. And it is exactly these properties the City needs to target with its toughest enforcement options early on. Early identification of problem properties gives the City the opportunity to approach them with a cross- departmental strategy that wiii eliminate the problems. The current City groups working on housing and enforcement issues may provide answers on how to improve cross-departmental communication in areas such as uniform computerization and data basing for information sharing. Registration of Contracts for Deed by Seller For chronic problem properties the issue of ascertaining ownership is often problematic. In many cases determining the ownership of a property is cumbersome, if not impossible, because contracts for deeds may not be registered. Currently, buyers are required to register their contract for deed, but because of the problematic nature of these properties, there is an incentive not to do so. It is believed that by requiring the seller to register the contract for deed, there will be more reporting of sales. This issue is on the City's cunent state legislative agenda. Point System for Certi�cate of Occupancy Inspections Implementing a point system for the Certificate of Occupancy (C of O) process refers to the concept of changing the current inspection schedule (every two years for residential properties) to a system that inspects properties more or less frequently based on its past inspection history. For example, a tri-plex with a history of many code violations would be inspected on an annual basis. Conversely, a four-plex with a history of only occasional minor code violations would be inspected every three years. The point system would be applied to a several year history of violations to determine how frequently a property's C of O should be renewed. A similar deternunation is currently made in deterntining is commercial structures should be on a one or two-year inspection cycle, based on whether they are high or low-fire hazard. u It is anGcipated that this bill, House File # 1098, will be inVoduced on Mazch 13, 1995. Saint Paul Ciry Counci[ Research �� - � Z5 36 A Study o�'Remedies for Chronic Problem Properties There are both advantages and disadvantages to using this system. An advantage wouid be that inspection resources would be retargeted to the properties most tikely to have serious code violations. A disadvantage would be the need to add an administrative procedure which detemvnes appropriate inspection cycles for properties. Additionally, this system presumes that past code violation behavior is an indication of future behavior. This assumptions will not be true in many cases. However, the current system of complaint-based inspections for properties required to have a C of O woatd still be in place. Landiord Education Classes There are many tandlords in the Ciry of Saint Paul, a great percentage of whom entered into the business with little or no management skills. The current degree of misimderstanding about what landlords can and cannot do to prevent problems, and to act once a problem is discovered is estimated to be very high. A landlord education program would help landtords more fully understand their rights and responsibilities for the properties they rent to others. The cities of Portland, Oregon and M'ilwaukee, Wisconsin have instituted landlord education programs. Milwaukee secured a grant from the sYate, which was supplemented by local funding. The programs have the following components. • code compliance and correction orders • applicant screening • rental agreements • ongoing management • the evicrion process • warning signs of drug activity • crisis resolution • the role of the police • rental assistance programs There are currently property management courses available at some local technical schools, as well as through Minnesota Multi Housing Association. However, these courses do not tend to have the property maintenance code enforcement, or the drug activity awareness components ofthe city programs. The Housing Information Office (HIO) provides one-on-one assistance for landlord questions. Additionally, the Saint Paul Association of Responsible Landlords (SPARL) sponsors monthiy discussions. However, none of these offers a comprehensive approach to landlord training needs. Saint Paul City Council Research �5 -'� Z5 A Study of Remedtes for Chronic Problem Properties 37 Another source of landlord education is being developed by the Family Housing Fund of l�finneapolis and Saint Paul, lrnown as the Rental Housing Training Program. This program is based on the idea that buildings aze currently certified, but there are no qualifications to become a landlord. As a result, many who assume ownership of rental properties are not qualified or suitable to handle the job responsibility. This problem was demonstrated by the case study of the chronic problem property on East Sixth Street. The program's goal is to provide training for landlords, or those considering becoming landlords, hopefully weeding out those with irresponsible motives and inadequate capacities to be responsible landlords. A Snal consideration for this option is its potential to be used as a sentencing tool in housing court. Although it may be quite effective at eliminating future violations, pursuing such an option would require support of many stakeholders, including the Housing Court, City Attorney's Office, and elected officials. Tenant Education Classes Tenant education is a relatively new idea, and is just beginning to be discussed in Minneapolis and Saint Paul. Its concept is relatively straight-forward: provide a program which teaches tenants their rights and responsibilities. It would be targeted at tenants who have a problematic rental history, because of payment, behavior, or other problems. The incentive for tenants to go through such a program could be either a rent subsidy, or a cleared rental record. Given that slightly over half of the City's chronic problem properties are rental, and that approximately half of the problems of the problems encountered on those properties aze tenant-related, such a program would fill a void in current educational efforts. Discussions are currently undenvay SPARL, the Tenants Union, the Family Housing Fund, Legal Aid, and the Housing Information Office on how such a program could operate. Saint Paul Ciry Council Research a�-��.� 38 A Study of Reme�lies for Chronic Problem Properties RECOMMENDATIONS Chronic problem properties are typically properties with many code violations, and complicated circumstances. Collaboration among City agencies, as well as between the City and the neighborhoods, is necessary to identify these problems, and formulate workable solutions. There are a number of specific measures the City could implement to reduce or mitigate the difficulties presented by chronic problem properties. These Endings and recommendations are based on the research presented in this study, which can generally be divided into two categories: those that strengthen the City's current enforcement tools; and those that are new tools. #1 Implement Rentai Registration A rental registration program, which requires one and two-unit rental properties to register with the City is desirable. This registration would not involve proactive inspecrion of the properties, but continue the current practice of inspecting one and two-unit rental properties on a complaint basis. There should be a modest fee required To register these properties, which would closely reflect added administrative costs. The registration could be revoked, however, based on code violations. The revocation would be made based on the determination of the director of the registrarion, and could be appealed to the City Council. Such a revocation would mean the property could not be habitated. #2 Develop a Plan to Require Certificates of Occupancy for All Rental Property It is recommended that Rental Registration be this first step in a phased-in process of moving toward a Certi&cate of pccupancy (C of O) for all rental buildings. Because a certificate of occupancy would, by definition, require proactive inspection of one and two-unit rental property, a phased-in approach would be the most practical without adding more inspection staff. Related to this, a number of ineasures could mitigate the cost of additional buildings requiring inspection. These include: a. Increase the reinspection fee for Certificate of Occupancy covered buildings from 10% of the C of O fee to one more accurately reflecting actual cost. b. Charge a fee for reinspections which follow a complaint-based inspection. A parallel fee should be considered for non-C of O residential properties. Saint Paul Crty Counci! Research q5 �'�25 A Study of Remedies for Chronic Problem ProperYies 39 c. Increase the fee scale for multiple unit buitdings, so owners of buildings with 28 or more units pay a fee more reflective of actual cost ofthe C of O inspection process. (See page 17, table 7 for Certificate of Occupancy fee schedule.) d. Institute a point system to detemune the most appropriate length of time between inspections, so well maintained properties are inspected less frequently, and poorly maintained properties aze inspected more often. e. Conduct a study of the implementation considerations for these Certificate of Occupancy-related policy options. #3 Strengthen Interdepartmental Communication on Problem Properties Strengthening interdepartmental communication on problem pzoperties, and potential probtem properties must be a priority. This is predicated on the notions that the City needs a more "automatid' identification process of these properties, and that once they are identi&ed, stronger, more coordinated enforcement options should be apptied. Enhanced communication would involve modification o£ the Information and Complaint database system, or the development of a new code enforcement information system. This could provide up-to-date information to all inspectors and other City staff working with a property what other City staff are doing with the property, as well as the City's history in worldng with the property. Additionally, one or all of the cross-departmental groups working on housing and enforcement issues should be requested to develop other recommendations for improved communication and action coordination. #4 Support a Graduated �ine Structure A graduated fine structure may act as a deterrent for future violations. Data in this study indicate that a very small percentage (13%) of properties receive more than one cifation 'vn a year. However, these properties pose huge drains on City resources. A graduated fine structure would provide a stronger punitive message. Support of the Housing Court and the City Attorney's Office wou[d be necessary to implement this recommendation. Saint Pau! Ctty Counci! Research 05-�2.5 40 A Study of Remedies J'ar Chronic Problem Proper[ies #5 Expand Case Management of Problem Properties—Pending Further Study Case managing problem properties intuitively looks like an effective approach for dealing with chronic pmblem properties. It operates recognizing the multiple problem nature of these properties, and proactively inspects those properties that have a history of repeated code violations. However, there has never been an evaluation of this approach to determine if it does indeed act to reduce the number of chronic problem properties. Such a study is recommended. If this approach is shown to be positive, program expansion would be recommended as the budget allows. #6 Support Landlord and Tenant Education Efforts Although one-to-one assistance is available from several agencies and organizations including the City's Housing Information Office, little is available in terms of formal training. It is recommended that the City support landlord and tenant education projects as developed by the Family Housing Fund. Further, as the Family Housing Fund's programs become established, it is recommended that the City e�cplore the use of landlord and tenant education as a sentencing tool for use by Housing Court. Sa7nt Paul City Council Research �� - �25 A Sfudy of Remedies for Chronic Problem Properties 41 ADDENDUM ON HOME IMPROVEMEN�= GENERATED PROBLEMPROPE�ZTIES In the process of conducting reseazch for tivs report, it has become cleaz that there are many factors that contribute to the crearion of problem properties. One exampte of problems that did not fall clearly within the parameters of the research presented is the problem of unfinished home improvement projects. There aze cases througkout the City of home improvement projects that have gone on for years with little or no progress, and create a continuous eyesore for the neighborhood. Some of the reasons for not compieting projects are running out of money or ambition, or the death of the person responsible for the project. The City's interaction with these properties is limited typically to issuing the building pemut allowing the home improvement work to occur. The City has little discretion over the length of time a building permit remains valid. The rules governing expiraYion of building permits are outlined in the sTate's Uniform Bwlding Code. It pmvides that if work begins within 180 days of the issuance of the permit, and if work is continued in intervals not exceeding 180 days, the building permit remains valid. In essence, there is no set length of time for expiration of permits. Every pemut issued by the building official under the provisions of this code shail expire by Iimitation and become null and void if the building or work authorized by such permit is not commenced within 180 days from the date of such permit, or if the buitding or work authorized by such pernut is suspended or abandoned at any time after the work is commenced for a period of 180 days. Before such work catt be recommenced, a new permit shall be first obtained to do so, and the fee therefor shail be one half the amount required for a new permit for such work, provided no changes have been made or wi11 be made in the origina] plans and specifications for such work; and provided fizrther that such suspension or abandonment has not exceeded one year. In order to renew action on a permit after an expiratiori, the pernuttee shall pay a new fuil permit fee. Any permittee holding an une�cpired pemuY may apply for an e�ctension of the time within which work may commence under that permit when the pernuttee is unable to commence work within the time required by this section for good and satisfactory reasons. The building official may extend the time for action by the permittee for a period not exceeding 180 days on written request by the permittee showing the Saint Paul Crty Council Research �5-y2� d2 A Study of Remedies for Chronic Problem Properties circumstances beyond the control of the permittee have prevented action from being taken. No pemvt shall be extended more than once. (Section 106.4.4 of the 1994 Uniform Building Code) Although the City is limited in its range of options because building pernvts are governed by state, rather than local law, it still has several options available for consideration. The first such option is a more vigorous monitoring of building projects to ensure work is progressing at a rate satisfactory to meet the requirements set forth in the building code. This may be done by building inspectors, or by building inspectors in cooperation with neighborhood arganization or district councils. The end result ofsuch monitoring may be sufficient pressure to ensure completion of the project, or the revocation of the building permit. However, the revocation of the building pemut does not correct the original problem of long-term unfinished housing improvement pro}ects. The work would still be incomplete, and the owner would have no pemut to finish the project. A second option available to the City is the use of the Housing Code to cite the owner for failure to maintain the exterior of the property. Using this option, the Public ` Health Division would work with building inspectors to identify and monitor ttus type of problem property. Public Health would need to establish a pattem of inaction by the owner to rectify the ongoing problem the incomplete project presents in order to issue a citation. T'here are several advantages to using this option. The City can issue housing code violations even while the building pernut is valid. This option can also be implemented by procedural changes, and will not require ordinance changes. Like the first option, this course of action does not ensure the completion of the project, but it does increase the stakes for these owners as they must then appear in Aousing Court and may have a fine imposed. A third option available to the Ciry is to require a deposit or bond before a building pernrit is issued. Several Minnesota municipalities have used this method with some success. Under this policy, a person seelang a building permit would be required to leave a deposit or bond with the City, which wouid be returned upon completion of ^ the project. If the gro}ect is not compteted, the City would then have funds to apply as a pre-paid fine. The City of Sairrt Paul cunemly uses this approach with buildings in the registered vacant building program. For these buildings, the City requires a $2,000 deposit before a building permit can be issued. This approach has proven successful for over 90% of the building pemuts issued on vacant buildings. One clear drawback to this policy approach for use with all building permits issued is that it may act as a disincentive to those wanting to do home repair, but not having sufficient funds to do both the repair, and pay a deposit to the City. Saint Paul City Council Research q5-yz� A Study of Remedies for Chronic Problem Properties 43 A final option the City could use would be to institute of a policy whereby once a building permit is revoked for lack of progress, as defined by the building code, a second pernrit for the same project would require a deposit or bond. This would target those properties and projects least likely to comply with the provisions of the building code, and provide the City the funds to use as a pre-paid fine. Given the lack of City authority for altering the building code to better address chronic problems presented by these long-term incomplete projects, it is important that it apply those options it has available carefully. Relatively few of the many home improvement projects for which the City issues buiiding pernuts remain incomplete over the span of many years. Requiring the deposit or a bond with the City for all buiiding pernuts may hurt the overall home improvement situation by providing a disincentive where the City wishes to encourage activity. However, careful monitoring of those properties where neighbors or City staff have identified a long term lack of progress is in order. Cooperation among the City agencies interacting with the property, as well as cooperation between the neighborhood and City is necessary; as is the use of citations in the case of code violations. Saimt Paul Ciry Council Research ��-4� 44 A Study of Remedies for Chronic Problem Properties RESOURCES �i. � ; iso . � Phil Bennett, Department of Engineering, University of Wisconsin Gary Briggs, formerly of FORCE Unit, Police Department Carol Buche, Saint Paul Association of Responsible Landlords Ann Cieslak, Legisla6ve Aide Greg DeShon, Summit-University District Council Mark Dick, former Dayton's Bluff District Councilmember Pat Fish, Fire Prevention Pam Autton, City Attomey's Office Katy Lindblad, Aousing Division-Planning and Economic Development Dick Lippert, Code Enforcement-Division of Puhlic Health Chris Lukesh, Aousing Information Office Roberta Megard, Councilmember Betty Moran, West Seventh Federation Neighbor (Anonymous) of 3XX South Sazatoga Ann Norton, Consultant, Family Housing Fund Molly ORourke, formerly of Citizen Services Gary Peltier, Housing Division-Planning and Economic Development Sheri Pemberton, Housing Division-Planning and Economic Development Susan Roakes, City and Regionat Planning Department, University of Memphis Katy Royce, Community Stabilization Project Maria Somma, Community Stabilization Project Ella Thayer, Ward 4 Secretary Charles Votel, Code Enforcement-Division of Public Health Helen Welter, Legislative Aide Lucille �ding, owner 7XX East Si�th Street 5teven Zaccard, Division of Fire Prevention TECHNICAL ASSISTANCE Irina Antonovskaya, Citywide Information Services Beth Bartz, Planning Division-Planning and Economic Development Paul Hogrefe, Citywide Information Services Jan Gasterland, Building Inspection and Besign, Office of Licensing, Inspection, and Environmental Protection Joseph Gockowski, Ramsey County Civil Division Court Administrator Laura Klapperich, Research and Development-Police Department Saint Paul City CouncilResearch �5-�;25 A Study of Remedies �'or Chronic Problem Properlies 45 Dick Lippert, Code Enforcemeni-Division of Public Health Dan Perlman, National Housing Law Projecf Charles Votel, Code Enforcement-Division of Public Health Peter Wamer, City Attomey's Oflice Steven Zaccard, Division of Fire Prevention DOCUMENTS Ciry of Milwaukee Lcnidlord training Progrcan-Keeping Illegal Activity out of Rental Property: A Practical Guide for Iandlords cmd Property Managers City of Saint Pau11995 Budget City of Saint Paul Legislative Code Division of Fire Prevention, Fire Prevention Practices Index Division of Fire Prevention, Standard Operating Procedures Division of Fire Prevention, Code Enforce Policies Index Division of Public Health-Code Enforcement, Catalogue of Code Letters Division of Public Healtk-Code Enforcement, Housing Code Programs Policy and Procedure Guidelines for Compliance Timelines "The Dynamics ofNeighborhoods: A Fresh Approach to Understanding Housing and Neighborhood Change," Rolf Goetze and Kent W. Colton in Neighborhood Policy and Plannin�, edited by Phillip L. Clay and Robert M. Hollister. Lexington: Lexington Books, 1983. Housing Division-Plaruiing and Economic Development, Housing Programs (9/1/93) Housing Division-Planning and Economic Development, Housing Condilions 1988 Survey Police Department, FORCE Unit Procedural Mamral Rental Tca Equity; Saint Paul Pilot Project Report to the Minnesota State Legislature Unrform Building Code (1994) 1990 U.S. Census Safnt Paul City Council Research �tT1 OP F ? o ; � � MIGHAEL J. HARR[S Councilmember CITY OF SAINT P.AI3L OFFICfi OF THE CITY COUNCIL Members: Mike Harris, Chair Jerry Blakey Dino Guerin Janice Rettznan Dave Thune Date: Apri1 12, 1995 COMNIITTEE REPORT CTTY OPERATIONS COMMITTEE qs ��s Approval of minutes from the Apzil 12, 1995, meeting of the City Operations Committee. I ' : �]�% � i 2. � Update on the Regional Radio Project (Laid Over in Committee 12-I4-94}. LAID OVER TO THE JUNE 14 CITY OPERATIONS COnIlVIIT'I`EE MEETING, 4-0 Resolution - accepting the Council Research Report titled "A Study of Remedies for Chronic Problem Properties." COMNTITTEE ACCEPTED THE REPORT, 5-0; FURTHEB DISCUSSION REGARDING THE RECOMIVIENDATTONS OF T'HE REPORT WII,L BE HELD AT THE JUNE 14 CITY OPERATIONS MEETING 4. Ordinance 94-1610 - an ordinance to permit the City Council to waive the 45-day noYice requirement for hearin$s on the issuance of liquor licenses in cases of hardship (Laid Over in Committee 12-14-94). LAID OVER TO THE MAY 10 MEETTNG OF THE CITY OPERATIONS COMNIITTEE, 4-1 (RETTMAN) Resolution 95-199 - Establishing the policy and procedure for repeat nuisance properties which require City inspectors to simultaneously issue a criminal citation as well as a summary abatement order for those properties with lustory of previous summary abatement orders (Referred from Council 3-1-95). COMMTTTEE RECOMMENDED APPROVAL AS AMENDED, 3-0 CITY HALL THIRD FLOOR SAINT PAUL, MINNESOTA 55202 612/266-863� s.E�as Printed o¢ RetyNed Paper