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95-91OR1G1NpL Presented By Referred To 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Council File ,� RESOLUTION OF SAINT PAUL, ly� by nepartment of: By: Adopted by Council: Date o � 5 � S Adoption Certified by Counc Secretary By: Ap� By: \` Form �S_�� b_ WI�REAS, The City of Saint Paul is authorized to establish a pilot project for rental tax equity for property taz�es payable in 1995 for owners of single and two family nonhomestead properry, pursuant to I.aws 1994, Chapter 587, Article 5, Section 27; and Whereas, The pilot program began July 11, 1994 and applications were accepted through November 1, 1994; and Whereas, The special legislation required that the City Council provide a report to the Senate Committee on Housing and the Committee on T�es, and also to the House Taz Committee; and Whereas, The report required by the special legislation has been prepared by tbe Housing Information Office and considered by this Council; now therefore be it d,tie�is �.__ Resolved, T'hat the Council of the City of Saint Paul does hereby Council Secretary transmit a copy of the attached Advance Copy Report of the Rental Taac Equity; Saint Paul Pilot Project to the Senate Committee on Housing and the Committee on Tases, and also to the House Tas Committee. By: Green Sheet # � Committee: Date by City Attorney � Appro �"d y Mayor for �ubmission to Counci . $y� lr,�� 1� i ��-q i DEPARTMENT/OFFICE/COUNpL DATE Mfr1ATE0 N� 2 917 8 HIO/Ma or's Admin/Rettman 1 23 95 GREEN SHEE CANTACT PERSON & PHONE INITIAVDATE INITIAUDATE �DEPARTMENTDIRECTOfl �CITYCOUNCIL Lukesh/Armstron Rettman A �� N �CRVATfOFNEY �CRYCLERK MUST BE ON COUNCILAGENDA BV (DATE) NUNBERKfR O gUIX'aEf OIflECTOR O FIN. & MGT. SEFVICES DIR. POUTING Januar 25 1995 OflDER QMpypq�pRASSISTANn � TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS POR SIGNATURE) ACTION REDUESTED: Resolution of the Report on Rental Tax Equity• Saint Paul Pilot Project to the Senate Committee on Housing, Senate Committee on Taxes"and the House Tax Co�ittee. Copies of thi Report are to be sent to all members of the Saint Paul Delegation with the Gity of Saint Paul's thanks. RECOMMENDATIONS: Approve (A) or Reject (R) pEHSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _ CIVIL SERVICE CAMMISSION �� Has this personflirm ever worked under a contract for this department? — CB COMMITfEE _ YES NO _ STAFF 2. Has this personttirm ever been a city employee? — YES NO — �iS7RICTCOUH7 — 3. Does this person/firm possess a skill not normally possessed by any current city employee? SUPPOFTS WHICH COUNCII OBJECTIVE7 VES NO Ezplain all yes answers on separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTUNIN (Who, Whet. When. Whera. Why) The City of Saint Paul is authorized to establish a Pilot Project for rental tax equity for property taxes payable in 1995 for owners of single and two family nonhomestead property, pursuant to Laws 1994, Chapter 587, Article 5, Section 27. A report on the efforts is part of the legislation. This resolution G�ith the atCached report will bring us in to compliance and will also serve as evidentiary material for the Legislature to continue the program and the fundin . ADVANTAGESIFAPPROVED: DISADVANTAGES IFAPPROVED DISADVANTAGES IF NOT APPROVED' TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIfdG SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION. (EXPLAIN) OFFICE OF THE MAYOR HOUSING INFORMATION OFFICE CITY OF SAINT PAUL Nornz Co(eman, Mayor Christine Lukesh, Director q5=a 1 21 West Fourth Street TeLephone: 612-266-6000 SaintPaul MN55102 Facsimile: 612-298-5054 TO: Mayor Norm�oleman and Saint Paul City Council Members FROM: Chris lukes , Director, I3ousing Information Office DATE: RE: January 23, 1995 Rental Ta�c Equity; Saint Paul Pilot Project Attached is a resolution and an advanced copy of the report on the Rental TaJc Equity; Saint Paul Pilot Project. The actual report is currently being published. I am requesting your review and approval on the January 25, 1995, City Council meeting, under suspension. The report can then be forwarded to the Minuesota State Legislature as required by the legislation. � Council Fi1e # � 7 � I _ RESOLU710N OF SAINT PAUL, I� Presented By Referred To 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Committee: Date WHEREAS, The City of Saint Paul is authorized to establish a pilot project for rentai tax equity for property ta�ces payable in 1995 for owners of single and two family nonhomestead properTy, pursuant to Laws 1994, Chapter 587, Article 5, Section 27; and Whereas, The pilot program began July 11, 1994 and applications were accepted through November 1, 1994; and Whereas, Tfie special legislation required that the C�ty Council provide a report to the Senate Committee on Housing and the Committee on Tases, and also to the House Ta�c Committee; and Whereas, The report required by the special legislation has been prepared by the Housing Information Office and considered by this Council; now therefore be it Resolved, That the Council of the City of Saint Paul does hereby the Council Secretary transmit a copy of the attached Advance Copy Report of the Rental Tax Equity; Saint Paul Pilot Project to the Senate Committee on Housing and the Committee on TaYes, and also to the House Tax Committee. Adopted by Council: Date Adoption Certified by Council Secretary By: Approved by Mayor: By: Requested by Department of: By: Form Approved by City Attorney By: Appro�{�d y Mayor for�Submission to counci�t ' Date �� ` � / By:- le�� C"'� ��1�f�-C�� i Green Sheet # NESOTA ��-�i DEPARTMENT/OFFICE/COUNCIL DATE INITIATEO IV `_' L`! 1/ tS HIO/Ma or's Admin/Rettman 1 23 95 GREEN SHEE CONTACT PEfi50N & PHONE INITIAVDATE INITIAVDATE � DEPARTMENT DIflECTOR � CIiY CDUNCIL Lukesh/Armstron /Rettman ASSIGN �CIT'A7TORNEY �CINCLERK MIIST BE ON COUNCIL AGENDA BY (DATE) NUMBEfl FOH � eUDGET DIRECTOR � FIN. & MGT. SEPVICES OIR. ROUTINC. Januar 25 1995 OHUER Q MAVOR (OR ASSISTANn � TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUESTED: ResoluCion of the Report on Rental Tax Equity; Saint Paul Pilot Proiect to the Senate Courmittee on Housing, Senate Committee oa Taxes and the House Tax Committee. Copies of thi Report are to be sent to all members of the Saint Paul Delegation with the City of Saint Paul's thanks. RECOMMENDATIONS: Approve (A) or qe�ect (fl) PERSONAL SEFVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PIANNING CAMMISSION _ CNVL SERVICE COMMISSION �- Ha5 this pelSONtirm eVec Worked uMer a ContcaCl fof this tlepar[menl? _ CIB COMMITTEE _ YES NO 2. Has this personttirm ever been a city employee? _ STAFF — YES NO _ DISrpIC7 CoURT _ 3. Does this personlfirm possess a skill not normaliy possessed by any current city empioyee� SUPPORTS WHICH COUNdL OBJECTIVE4 YES NO Expialn ell yes answers on separete sheet end attach to green sheet INITIATINCa PROBLEM, ISSUE, OPPORTUNiTV (Who, What, When, Where, Why) The City of Saint Paul is authorized to establish a Pilot Project for rental tax equity for property taxes payable in 1995 for owners of single and two family nonhomestead property, pursuant to Laws 1994, Chapter 587, Article 5, Section 27. A report on the efforts is part of the legislation. This resolution with the attached report will bring us in Co compliance and wi11 also serve as evidentiary material for the Legislature to continue the program and the fundin . ADVANTAGES IF APPROVED: DISAOVANTAGES IF APPROVED �ISADVANTAGES IF NOTAPPROVED: TOTAL AMOUNT OFTRANSACTION $ COSTlREVENUE BUDGETED (CIRCLE ONE) YES NO FUN�IIdG SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION (EXPLAIN) OFFICE OF THE MAYOR HOUSING [NFORMATION OFFICE CITY OF SAINT PAUL Norm Coleman, Mayor ChristineLukeslt, Direclor ��-�� 21WestFourthStreel Telep6one:612-266-600G Saim Paul, MN SSIO2 Facsimile.� 612-298-5054 TO: Mayor Norm oleman and Saint Paul City Council Members FROM: Chris Lukes Director, Housing Information Office DATE: RE: January 23, 1995 Rentai Tax Equity; Saint Paul Pilot Project Attached is a resolution and an advanced copy of the report on the Rental Taac Equity; Saint Paul Pilot Project. The actual report is currently being published. I am requesting your review and approval on the January 25, 1995, City Council meeting, under suspension. The report can then be forwarded to the Minnesota State Legislature as required by the legislation. � ".. . �� °� � .: � , �� . _ , .. � � . . � - _-,c � .:�; i„, � � � r ¢ _ _ t _ ' _ � _- „ _. �.. . � , , - � ..: -., , . ' ,� � _ - . ' � s r -, ta � ��' �'e �. _ ».:x _ - � _ _ - _ � s .. : ., -, , , y ., s.I�EN1`�I, T�X° t`Q�TS�, 5�i�}T P��I. P.�T P�flJ�ET ; >� � � � _ ' > _} ' ��0�� TO 1'�I� NT�I�TESOT� ��AT� �EG�S��`CJR� ; < < �, �. # - < cA Y � � ` - " '" ;= ;TAN�JAItY 199$ , , ; � a x � <- � Y h ( }t t.r Y 1 � _ �-�, ; '� � . � � ..* i t t. ,.K "' r _... ... . . .: _ ., .r� � . .... . . , d.. -. ., �., _ . . . �. . -� .. . � ..� . .. __. +. � � � � � � �` � � [� t_� � � ,� � � � � �� RENTAL TAX EQUITY; SAINT PAUL PII.AT PROJECf REPORT TO THE MINNESOTA STATE LEGISLATURE JANUARY 1995 Prepazed by: City of Saint Paul Office of the Mayor Housing Information Office ��q � � � t � � 1 � � �o�� EXECUTTVE SUMMARY PROGRAM REPORT APPENDIX A: CTTY COLTNCIL RESOLUTION, FILE #94-892 � APPENDIX B: INFORMATION PACKET Letter to Rental Property Owner Tax Equity Program Inspection Guidelines � Program Survey Example Letter to Tenant Map of Target Areas � List of Certified Tax Equity Evaluators APPENDIX C: SURVEY DATA � Program Survey Data Summary of Property Owners' Comments Highlights of Property Owners' Comments � APPENDIX D: ACKNOWLEDGMENTS � � � � � � � a �-a � �� ( i �� i � � �� `�15'� � REN'I'AL Tf�X EQUITY; SAINT PALTL PIIAT PROJECT EXECIJTIVE SUMMARY The Rental Tax Equity; Saini Paul Pilot Project was a successful program through which four-hundred thirty-three (433) reatal properties were certified to receive a property tax credit. The average estimated 2ax credit per property was $1,160, and the average amount spent on repairs was $1,138. The concept of putting dollars into a property in retum for a ta�z break worked. The dollazs spent on improving properties atmost equaled 2he dollazs given in tax crediu. The total amount af estimated ta�c credit is $503,000, while the totat amount of dollars spent on repairs was $438,000. The goal of improving rental propenies was achieved. The Rentai Tax Equity; Saint Paui Pilot Project was a coilaborative effort between pubiic officials and many city and county departments, organizations, and individuals. Through this collaboration, the planning and implementation of ttus program was successfully completed in a very short period of time. If the program had been run for a full year, the one million doltar cap most likely would have been reached. • Repairs were made on three-hundred eighty-5ve (385) or ninety percent (90%) of the �� praperties certi5ed through this program. The majority of these property owners indicated they would not have made improvements without this program. The average cost of repairs per properry was $1,138. Typical repairs had to do with safety iteins such �� as veniing, smoke detectors, handraits, and ground fautt interrupters, as well as interior and exterior maintenance, such as painting, repairing windows, and re-roofing. • While the concept of targeting speci�c areas for priority certification was a good idea, it seemed to slow down the process of implementing the program and created confusion for many property owners. Only seven (7) target azea properties were certified duriug the priority time period. ' Program Report Page 2 The City of Saint Paui gave further priority for certification to properties that were located in target azeas. (See Map of Tazget Areas in Appendix B.) Prior to August 8, 1494, priority for certification was to be given to the first twahundred forty (?AO) properties in the target ateas that completed the program (2A properties in each of 12 target areas were sligible). Properties in target areas (properiy owaers had to be City residents) were certified as soon as compieted evatuations were received. However, oniy seven (?) target-area properties were certified during the "priority" rime period. At the end of the program, a totai of forty- eight (4&) target-area properties received certification. The number of properties certi�ied in each target azea is as follows. Area A: 6 Area B: 12 Area C: 3 Area D: i Area G: 4 Area E: 2 Area H: 3 Area F: 8 Area I: 0 Area J: 5 Area K: 2 Area L: 2 'The total amount of estimated tax credit that will be provided through tlris program on ta�tes payable in 1995 is just over $503,000. This figure is based on estimates from the Ramsey County Department of Properiy Records and Revenue of the difference between the homestead and non-homestead rates for ta�ces payable in 1994. The average estimated tax credit per property is $1,160. The amount spent on repairs for all properties (approximately $438,000) comes close to equaling the estimated one-half million dollazs given in ta7c credit through this program. Approximately ninety percent (90%) of the properties had repairs done in order to receive certification. The majority of needed repairs were related to safety items rather than maintenance or hazardous life-safety items. Typical safety items had to do with ground fault interrupters, handrails, venting, smoke detectors, and improper installation of gas-fired appliances. Maintenance items dealt with repairs to deteriorated sttuctures such as painting, windows, and re-roofing. Very few hazardous life-safety items were cited. However, code compliance foz these items was mandatory regardless of whether or not the property owner chose to comptete the Rental Tax Equity Program. Some of these items included uncapped, live gas lines and illegal cellaz occupancy. Most property owners had a positive response to having the'u property inspected and were glad to learn what repairs were needed. There was a strong sense that property owners care about their rental property and want to properly maintain it. The Program Guidelines required property owners to submit a survey for each property that _ was to be certified under the Rentai Ta�c Equity Pilot Project. The compilation of data from - these surveys provides a comprehensive study of the housing stock, ownership, repair costs, as well as property owners' opinions on various aspects of the program. The suivey results include data on housing costs, rents, and program participation as required by the legislation. (See Appendix C: Survey Data.) Also included are property owners' comments and rewmmendations. , � � � � �' � Program Report Page 3 � �-q ► The time frame for planning and start-up of ihis program was one month, and ihe program then ran for approximaiely four months. Some properry owners, particulazly those who lived outside of Saint Paul and were not efigibte to apply until September 6th, had a relatively short time in which to complete repairs. Therefore, some property owners chose not to apply or complete the program due ta the timeline. Since this was a pilot project, there was a fair amovnt of reluctance and a"waii and see" attitude oa the part of some property owners. A1so, there was considerabte concem expressed about the complexity of the application procedures and program guidelines. If more time for planning, promorion, and implementation had been avaitable, the program may have generated much greater participation. There still is a great deai of interest in the program based on the fact that the Housing Information C?ffice continues to receive calls requesting information an the program. � Property owners who participated were generally pleased with the Rental Tax Equity Program, and the Housing Information Office received much positive feedback about the � program. Even after paying for repairs, most owners found that they would still save money � on their 1994 taxes. Property owners were pleased to see that steps are being taken to reduce the taxes they pay on their rental properties. The majority of rental property owners e�ressed strong support for the continuation of the Rental Tu� Equity Program. � � � � � � � �� - , �5 q ( � � � � � � � � � �� APPENDIX A CIT'Y COUNCIL RESOLUATION, FII.E #94-892 � ORi�iNAL Presented Referred To X �/� O, i. . Committee: Date 9�- �� Z �7 �� i q5 -� I 30 WHEREAS, Chapter 587, Article 5, Section 27, Laws of Minnesota 1994, entitied "Rental Tax Equity; Saint Paul Pilot Project" was duly adopted and approved by the Council of the City of Saint Paul; and WHEREAS, Chapter 587, Article 5, Section 27, Subdivision 5, Paragraph (c), Laws of Minnesota 1994, entitled "Program Steps" required the City of Saint Paul to evaluate eligible properties under the pilot project using program guidelines adopted by resolution of the Counci] of the City of Saint Paul; and WHEREAS, the Council of the City of Saint Paui directed city staff to draft appropriate program guidelines for the operation of the pilot project; and WHEREAS, city staff prepared program guidelines which will govern the operation of the pilot project and duly submitted said guidelines for review and approval by the Council of the City of Saint Paul; NOW THEREFORE BE IT RESOLVED, By the Council of the City of Saint Paul that pursuant to the provisions of Chapter 587, Article 5, Section 27, Subdivision 5, Paragraph (c), Laws of Minnesota 1994 entitled "Rental Ta�c Equity; Saint Paui Pilot Project", that the attached d�cument entitled "Guideline Manual" constitute the program guidelines required under the law and that the same are, in all things, adopted and incorporated herein by reference. � � � � Adop�ed by Council: Date -� � y Adoption Certified by Counci Secretary � By �� 1 Approved by Mayor Da _� � s �; ;i/ilLr. l r / � ',._ � �.,,, � ��,1/�% i, i t`.Gl e�X _ _� Council File # Green Sheet # RESOLUTION CITY OF SA1NT PAUL, MINNESOTA Requested by Department of: B Form Approved by City Attorney �_�/ // / BY � : -'�..1/Cy'� Lf �/G��t6—� Approved by Mayor for Submission to Council " , ' _ _ _. ,.�;` ` __ _�-._ _ sy : CIT�' OF SAINT PAUL Nnrn� Cnlrmmr. Mnrnr OFFICE Of THE T1Al'OF HOUSING 1TFORMATIOK OFFICE ChrisiintLuk�sh. Di�rcmr /� r _/� + K J 'L I ?) Wes� Favih Svert Telephone: G)?-26G-C,OOG Sainr Pau7, A1N 5570? Facsimile: Gf2•?9S-SOS4 TAX EQUITY PROGRAM GUIDELINES AND TIMELINES 6/94 ��., TAX EQUITY PROGRAM G�IDELINES Mayor Norm CoZeman and the Saint Pau1 City Council does accept the legislation granted under Chapter 587, Article 5, Section 27, Lar:s of Minnesota 1994 entitled "Rental Tax Equity: Saint ?aul Pi1et Project" and enumerated in City Council File Resolution fi94-891. In addition to the program guidelines identi£ied in the Legislation, the Mayor and City Council have determir.ed additional guidelines to further enhance the success of the Tax Equity Program; to assure the one million dollar cao is not exceeded; and to assure the intent of the legislation is �aximized. The guidelines are listed below and/or are attached to this document and the City Council Fi1e Resolution �9S-II92. The Tax Equity Program is only for single £amily or duplex structures. This Program does not include property held by non- pro£its, condos, townhomes, commercial property, or property that requires a certificate o£ occupancy. Preference throughout the program will be givea to landlords who reside in Saint Pau1. This is a one year program and is only £or taxes payable in 1995. Limit of two properties per owner. To maximize the impact on Saint Paul's ability to meet the project's primary objective of "helping stabilize cost° for the conscientious, industrious landlord who is already providing safe, decent, and affordable housing" and still identify special areas of need for continaed and/or renewed reinvestment in ren.tal proper*_y, twelve targeted areas will be identi£ied. The areas wi11 be four by Pour block areas. hards 1,2,5,6, and 7 kill be allowed two targeted areas. Wards 3 and � will each have one targeted a m a. The City Councilmember of each ward wi11 be responsible for designating each targeted area by July 1, 1999. rach targe*_ed area would receive 20 tar. equity certificates which would be held for the first six weeks of the program for that area only--one per landlord from July 11, 1994 to August 19, 1994. If a11 certificates have not been used in the targeted area, an owner could receive a certificate for an additional property provided she/he has not reacheri the two property maximum limit. Each Saint Paul City Councilmember will identify their respecti•ae target areas by July 1, 1999. A map of those identif±ed targeted areas will be attached to City Council rile Resolution {;9q-S92 and distributed to the District Councils by the Housing rnformation Office. Equally, owners of record for qualifying properties will receive the targeted information_ Tenants of the property a landlord wishes to have ir.spected hiL receive written notification as to when the inspection ef the property wi11 take place and may be present during the insp2c*_ion. � � � �5 The program staff aaticipates approx.imately 100C certificates may be issued. Some 6,000 owners will be noti�ied of the availability of this program. A numbering system has been identified by the Housing Ir.formation Office to assure quality control. Rar�sey County Taxation has provided the City and City staff c�ith tax calculation ability to add to the software which will assure the one miliion dollar cap will not be exceeded, � After the joint Mayor/City Council press conference, numbers would be made available to landlords. SPARL and the Board of Realtors will host a landlord information meeting on July 19, 1994, at Central fiigh School. City and County staff will assist at that � meeting. Certificates in non-targeted areas wil7. be issued after August II, 1995. Between July 11 and August II, inspections can be made in non-targeted areas which will allow time for any identi£ied � repairs to be made. More specific timelines are attached. It is possible the cap may be reached during the first s�x weeks of the program. � � i � C� � � � � � � The admini�tration and inspections portion of this program is 100% paid for by the owners of the property. The City administration non-refundable fee will be 555.00 payable by certifieci check. The inspections fees will be dependent on the market as the inspectors are independent contractors. Staf£ing oi this program will use existing staif, over time pay, and very short term service contracts. This effort will minimize the cost of the program, not add staff, and afford a quick start up time which is especially needed with the timelines set farth in tiie legislation. A Budget reso�ution will be submitted to the City Council once revenue is collected. Finally, a survey will be distributed to each rental landlord/program participant. The landlord/program participant will be encovraged to submit the survey so the Legislature, Governor, Mayor, and City Council can detezmine Che preliminary findings of the program and provide documentation for the needs o� the continuation of the same. Aiso accampanying this document is .the Tax Equity Progzam Inspection Guidelines, timelines, enabling legislatior,, and budget. � Key Dates £or Implementation June 1999--Meetings with Administration/sta£f/County/ Author of Legislation, interested parties June 10, 1999--Brie£ Mayor/Staff & obtain final directives June 19, 1994--Final work on Resolutions, Financing wk wk wk wR wk wk wk Plans, and Designation of staff June 15, 1999--Brief City Councilmembers and submit June 22, June 20, June 27, July 5, July 5, July 11, July 11, July 11, July 19, Aug. 19, Aug. 22 S ept . 6 , wk Nov, 1, Nov. 1, Resolutions to Council Research 1999--Resolutions on City Council Agenda 1994--Train Staff/Install software 1999--Train Staff/meet with County 1994--Joint Press Conference to announce program 7/6? 1999--Mandatory Letter goes out to all i&2 landlords 1994--Program begins--priority to St. Paul resident landlords 1999--Targeted Area Certification Process Begins till August 19, 1999 1994--Landlords may pay non re�undzble fee to secure number for certification �241-760 1999--SPARL and St. Paul Board of Realtors host informational meeting for landlords 1999--Numbers 1-?60 due to Housir.g Information Off�ce with inspections report and notice to tenant attached. Certificates issued , 1999--If one million dollar mark has not been reached, program opened up to all single family and dupler. landlords with St. Paul properties ��61-#1500 k�ith sti11 emphasis on Saint Pau1 resident landlords 1999 If one million dollar mark has not been reached, program opened to non Saint Paul resident landlords holding numbers, housing inspection reports, etc. 1999 Appeals process 1999--Cut off date for applying--if million dollar mark has not been reached Nov. 7, 1994--Ramsey County must receive final list oP quali£ied properties Por levy certification puzposes � � � � / � � �' � � � � � � � � �� APPENDIX B INFORMATION PACKET Q5-Q 1 � OFFICE OF THE MAYOR HOUSING INFORMATION OFFICE CTI'Y OF SAINT PAUL Narm Coleman, Mayor Chrisane Lukesh, Director 21 West Fourth Sneet SaintPaul MN55102 �� -� I Telephone:612-266-6000 Facsimile: 672-298-5054 Deaz Rental Property Owner, July 1, 1994 The City of Saint Paul is pleased to offer a one year pilot program, called Rental Taar Equity; Saint Paul Pilot Project, that provides a property taaL credit equal to the difference between the homestead and non-homestead rate for taxes payable in 1995 (for tax year 1994). This is a one year pilot program, and there is no guarantee that funds will be available in future years. The purpose of the program is to stabilize costs for conscientious landlords and is intended to offer an incentive to landlords to improve their tenant occupied property. The pilot program is scheduled to begin July 11, 1994. This pilot is a voluntary program, with a tax credit cap of one million dollars. The state will reimburse local taxing jurisdictions one million dollars to account for the tax shift. When the dollars are depleted, the program will end. Property owners wishing to participate must pay a non-refnndable city fee of $55.00 per structure. Property owners are defined as the tax payer for the rental properry. Each owner is eligible to enroli a maximum of two properties in the program. Partnerships and corporations are also limited to two properties. This program is oniy for single family or duplex rental structures. It does not include property held by non-profits, condos, townhouses, commercial property, or property that requires a cert�cate of occupancy. Thmughout the pilot project, priority will be given to pmperty owners who reside in the City of Saint Paul. Interested property owners with single family or duplex rental structures must demonstrate that their property meets housing standards established by the City of Saint Paul (see enclosed standards). Owners must arrange for an evaluation of their property with an independent housing evaluator, licensed by the City of Saint Paul, to perform Rental Housing Evaluations (see enclosed list of evalnators). The non-refundable fee for the inspector will vary by evaluator; however, the total cost, including the separate non- refundable fee to the City, will be approximately $200.00. If no repair items are cited, property owners will receive a Tax Credit Certi�icate from the Saint Paul Housing Information Office, for a property taac credit in the yeaz 1995, as long as funds remain. If repair items are cited, properry owners must first make needed repairs. Certification will not be made until the repairs are completed. ff property owners choose not to make the needed repairs, they are simply dropped from the program, but will not be reimbursed any fees they have paid. Please Note: Enforcement work orders will be issued for any life or safety hazards. � Page Two Rental Taz� Equity; Saint Paul Piiot Project Tenanu must be notified in writing by the property owner of the rime of the evaluadon and may be present if they so choose. The letter must also state that the tenant's rent credit for 1996 will be reduced. This notice should be a minimum of 24 hours; however, a longer notice is encouraged (see enclosed sample letter to tenants). A copy of the letter to the tenant must be attached to the evalnation report for snbmission to the Saint Paul Housing Information Office prior to release of the Tu Credit Certificate In addiuon, a completed survey must be turned in to the evaluator at the time of the property evaluation. Surveys will be provided by the evaluator. Program Guidelines 1. Target areas have been idenrified for the first s'vc weeks of enclosed map and Program 15meline below). A total of 14 been identified. Each target area is eligible for a maarimum the program (see tazget azeas have of 20 rental units. Owners who have properties in these azeas will be given priority for the tax credit from July 11 to August 19. Owners must also live in the City of St. Paul to receive priority in the target area. Only one $roperty�er target area is eligible for Certification during the first six weeks. An owner may qualify for a totai of two properties if they are in separate tazget azeas. 2. Only rental property owners who live within the city limits of Saint Paul can apply until September 6, 1994. After that time, owners who live outside of the City of Saint Paul but own property in the City ma,y a�plv if dollars to reimburse for tax credits are still available. 3. A rental property owner can qualify for a maximum of two separate structures. Only single family and duplex rental structures within the city limits of Saint Paul are eligible. For example, an owner who has two dpplexes and two single family homes may request an evaluarion on any of those structures, but only two can receive the tax credit, if they meet the standazds. Each property will require a sepazate non- refundable fee and evaluation report. Please note that it is a misdemeanor to apply for and receive taz credit on more than two properties, and offenders will be prosecuted. 4. This pilot �ro�ram is on a first come first served basis. The 1994 legislature provides reimbursement to the local taxing districu for taaL credits not to exceed one million dollars. When the money has been depleted, no new certificates will be issued, regazdless if a fee has been paid or a property evaluation has been completed. A numbering system will be used to provide property owners with a better idea of their chances of obtaining this credit. You must pay the non-refundable $55.00 ' � � � , L� � � g5�qi Page Three Rental Ta�c Equity; Saint Paul Pilot Project fee in order to receive one of these numbers. The number you receive at the time of application will indicate the number of owners who have applied for certification. T� Credit Certificates will be issued on a first come first served basis (withiu each group of numbers) as the completed evaluations aze submitted to the Saint Paul Housing Information Office (see attached Summary of 15meline). 5. Properties must have been non-homesteaded on or before Tanuary 2. 1994. 6. The proeram begins Tuly ll 1994 and ends November 1, 1994 or sooner if the one million dollar tax credit cap is reached. It is estimated that 800 - 1000 stractures can receive credit through the program. There is an appeals process related to qualification for this program. Appeals wiil be heard by the Code Enforcement Board of Appeals between November 1 and November 15. HOW TO APPLY FOR THE RENTAL TAX EOUITY PROGRAM � � � 1. All property owners wishing to participate in the program must come to the Saint Paui Housing Information Office and pay a non-refundable fee of $55.00 per structure to obtain a number for potential certification. Only a certitied check will be accepted! (No money orders, cash, etc.) Also, a driver's license to verify residency is required. The office is located in downtown Saint Paul at 21 West Fourth Street. This is across the street from City Hall between Wabasha and St. Peter Streets. The office is open Monday through Friday 8:00 a.m. to 4:30 a.m. We are expecting high demand for this program and potentially long lines. � 2. Once the fee is paid and a number is secured, owners may request an evaluation by one of the CertifSed Evaluators on the enclosed list. � � 3. If the structure passes the evaluation, the evaluator will send a copy of the approved evaluation to the Housing Information Office within three worldng days of the inspection. A copy of the notification letter to the tenant and the informational survey must be attached to the evalnation. � 4. The Saint Paul Pubiic Health Department will verify the information in the evaluation report. If satisfactory, the Housing Information Office will mail a Ta�c Credit Certificate to the owner within 7 days verifying their participation for a ta�c � credit for taxes payable in 1995. If funding has been depleted, the owner will also be notified by mail. � � Page Four Rental Tas Equity; Saint Paul Pilot Project 5. If a property does not pass an initiat evaluation, the owner must make the necessary repairs and request a second evaluation or they may drop from the program. There is no additional chazge for the second evaluation. � 7 � If repairs are made, and the second evaluation is satisfactory, #3 &#4 above will be followed. In addition to your TaaL Credit Certificate, your Properry Tax Statement for property taxes payable in 1995 will reflect the change. You aze required to complete an informational survey. Fiowever, you may withhold your name and address. TIMELINE FOR APPLICATION AND CERTIFICATION 1. 2. July 11. 1994 to November 1, 1994 All property owners who live in the City of Saint Paul, with single family or duplex rental units in the City, may come to the Housing Information Office starting 7uly 11, 1994 between the hours of 8:00 a.m. and 4:30 p.m., and pay a non-refnndable fee of $55.00 (certified check onlyZ to obtain a number for participation An owner can schedule an evaluation of the property with a licensed evaluator PLEASE NOTE: THERE ARE NO GUARANTEES HOW LONG FUNDS WILL BE AVAILABLE. July il. 1994 to Au�ust 19, 1994 Property owners with numbers from 1 to 280, who live in the City of Saint Paul and own property in one or more of the target areas may receive Certification during this time period, if an approved evaluation has been submitted by the evaluator and has been approved by the Saint Paul Public Health Department. 3. August 8, 1994 to AuPast 19, 1994 Property owners with numbers from 1 to 720, who live in the City of Saint Paul may receive Certification during this time period, if an approved evaluation has been submitted by the evaluator and approved by the Saint Paul Public Health Department. � � Page Five Rental Tax Equity; Saint Paul Pilot Project � 4. ,� � � 5. � � August 22, 1994 to September 6, 1994 q5-ql Property owners with numbers from 1 to 1,500+ who live in the City of Saint Paul may receive Certification during this time period, if an approved evaluation has been submitted by the evaluator and approved by the Saint Paul Public Health Department. September 6. 1994 to November 1. 1994 Property owners who live ouuide of the City of Saint Paul and own property within the city limits may apply to the program starting September 6 and receive Certification during this time period if an approved evaluation by the evaluator and approved by the Saint Paul Public Health Department and if tax credit dollars are still auailable. � There will be an informational meeting on this program at Cenual High School on Juty 14, 1994, 7-9 p.m., hosted by the St. Paul Association of Responsible Landiords (SPARL). � On behalf of the Mayor, City Council, and the City staff who will assist you in this process, we hope this pilot program will encourage rental property owners to continue to provide safe, affordable, and decent housing in Saint Paul. If you haue any questions, please call the Saint Paul Housing Information Office at 266-6000. cc: Mayor Norm Coleman City Council Members SUMMARY OF TIlvIELINE WHEN PROPERTY OWNERS CAN APPLY At the time of application, the property owner must pay a$55 non-refundable fee by certified check and present a driver's license to verify residency. JULY 11: SEPT. 6: Owner lives in St Paul, property is in a target area (#1-280) Owner lives in St. Paul, property is not in a target area (#281-1500+) Owner Iives out of St Paul, property is in St Paul (# continues where previous group left offl WHEN TAX CREDIT CERTIFICATES WILL BE ISSC�'D Evaluarions will be time-dated as they aze received by the Saint Paul Housing Information Office from the evatuators. Certificates will be issued for each group of mimbers based on the date the completed evaluation (including the notification letter to the tenant and the informational survey) is received. JLJT,Y 11: AUGUST 8: AUGUST 22: SEPT. 6: #1 - 280 #281 - 720 #721 - 1500+ # remaining NOTE: Once the tax credit cap of one raillion dollars is reached, no Certificates will be issued regardless of when evalnations were submitted. � � � � � � [� � � � � �� 6/94 � �l 5 -'1 i CITY OF SAINT PAUL PUBLIC HEALTH HOUSING CODE ENFORCEMENT PROGRAMS TAX EQUITY PROGRAM INSPECTION GUIDELINES � This Guideline Manual i!. intended to seive as a guide for your inspections of one stt�d two family rentai sttvctures Wrhich may qualify for a Ceztificate issued by the City of Saint Paul which wiit reduce the zate of the real estate taxes from a non-homestead rate to a homestead rate for one year. The purpose af this program is to sta6ilize costs far consciendous landlords and is intended to offer an incentive to othez landiords to improve their tenant- occupied ptc�perty nnd shall provide affordable housing. It is not an enforeement program. Participaiioa is voluntary. However, an owner can apply for no more than two tenant occupied properties. Lan3Iords who wish to participate must arrange an inspection with a certified evaluator and must norify the tenant in wriang of the evaluation so that the tenant may be presc,mt. Priority wil! be given to those landlords who live in the City of 5aint Paul, and certain designated areas of the C'sty will be targeted as a priority. Also townhouses, wndomininms, vacant buiidings and apartment units are not eligible to participate. As a ceriified, independent Ta�c Lquity Evaluator, you will be responsible for the accuracy of the inspection reports, p��ompt filing of the reports and the accompanying documents. A five-pari form will be utilixed for these evaluatians and should bo disseminated as foltows: Page One - Ori.ginal inspecCson report to Flousing Infozmatian Office Page Ttvo - Sec:ond inspection report to Housing Information Office Page Three - Ev;�luators copy Page Four - Sec:ond inspection report to landlord Page Five - Original inspection report to landlord This program is a first a�me-first served basis. The property awner is reqaired to pay the Hausing and Information. Office a fee of $55.00, which is due at the time the property owner applies for this pmgram. The Housing and Informarion Offue wi11 then assign a number to the owner which will derermine their status for eIigibility. You are required to file the evaluation report within three (3) business days of each inspection at the: :. � y�. �.i•. � . s J.�1 : '�_'_ _ _ IG.�r/ NYM :: _ . ;�l�l�1; '11 ' . 1 �1 �1'__ �J : . �I 'The first inspection reporc must have a copy of the letter which the landlord sent (or gave) tc the tenanis. Aftet you have made the reinspection (if requircd) and filed the zeport, it wi11 be reviewed by the Public Health $upervisory staff for accuracy and content. If your second evaluation sfiows ali categories as aeceptable, and the accompanying fee and letter have been received, the landlord w_ill then become eligible for the credit (subject to other conditions). � �5-qi � As a certified Tax Equity Evaluator you aze required to note any life threatening defects or � imminent hazards at these properties. Public Health staff will take immediate enforcement action on these properties only. Life safety defects include such things as: an unapproved sleeping room in a basement, hazardous electrical defeccs, improperly installed gas-fued � appliances which create an immediate hazard to the occupants, etc. If in doubt, you should contact Public Heaith at 292-7771. � Truth-in-Sale of Housing Evaluators who conduct these inspections aze required to possess a current Certificate of Competency, issued by the Truth-in-Sale of Housing Examining Board � and must abide by the Rules, By-Laws and Code of Ethics established by the Boazd. In addition, licensed Evaluators must attend the training seminar presented by Public Aealth in order to be eligible to conduct Tax Equity Evalua6ons. � �� J l_J ' � � � � � � � � Page 1 The foIIowing criteria is established as a Guide for your evaluations: m► �� • � 1. Ownership Posted Determine that the ownership of the buiIding is properly posted at a conspicuous Iocation, readable from the outside of the building and that it contains the required information. f� Doors Determine that all doors are in sound condition, free of defects, and have proper locks (1" deadbolt locks on entry doors), fit properly and ue provided with stormiscreen doors where appropriate. 3. Windows Determine that aIl windows are in sound condition, free of defects, have storm/screen windows as required, and if painted, have no paint defects, Check caulldng and sealing. 4. Open Porches, Stairs, etc. Determine that all porches, stairways, deckc, waIkways, etc., are in good condition, safely constructed, maintained and have proper guardrails and handrails. 5. •.. Determine if the roof is visibly in sound condition, check the eaves, comice, trim for deterioration. Check roof and eave venu, valleys and soffits for defects and deteriontion. 6. Exterior Walls De[ermine if the exterior walls aze in good condition, generally free of defects and not deterioiated. Painted surfaces must be in good condition. Detemune that the foundation is properly backfilted. Check for any uncappeci sewer rain water connections. � � � Page 2 � 7. Garage Q �J `� � � Determine if the garage is in good condition. Windows and doors should be operable and the building must be secunble by nozmal means. The electrical wiring should be safe and properly grounded. Improper heating app&ances are � not allowed. The roof, trim and siding must be in sound condition. The garage cannot contain excessive junk, rubbish or garbage. 8. Yazd Areas �� The yazd should be clean, the ground cover must be adequate and maintained. Refuse must be properly stored in approved containers and vehicles must be licensed, operable and properly puked on appropriate surfaces. Fences, gates, etc. must be maintained in good condition and there should be no hazards or eyesores in the yazd. • :� �� a 9. � � 10. � � I1 General Condition This azea shouid be clean, dry and not contain excessive combustibles or junk. There should be no evidence of ralent or insect infestations. Basement floors which aze accessible to tenanu must be gaved. Stain and Rails Determine that the basement stairs aze safe and capable of supporting normal loads, and is protected with handrails/guardrails. Foundation � Determine that the foundation walls have no structuial defecu, are tuckpointed properly, are not damp or mildewed and not conducive to entry of rodenu or insects. Basement windows and hatchways must be tight, clean and � 12. � � � � maintained. First Floor, Floor System Determine that there is no rotted wood, cut-out joisu, overspanning, or any evidence of structural fatigue/failure. Check stair headers for proper/adequate support. Page 3 13. Beams and Columns Determine that the beams aad columns have no stzuctural defects and aze in good condition. Check for decay and insect damage. Check for improper notching or other altesations that could advezsely affect structural integrity. ELECITUCAL SERVICE: 14. Service Size Determine that the electrical service is acceptable for the demands placed on the system. 15. Electrical Service Determine if the instatlafion is safe and properly installed. Check for a grounding wire around the water meter. 16. Electrical Wiring Determine if all visible wiring is safe, and enetgized in a manner which complies with the National Electrical Code. Detezmiae that there aze no ungrounded oufleu or fixtures in the basement. PLIIMBING SYSTEM: 17. Condition of Fixtures Determine if the sinks, tubs, toilets, etc., are clean, operable and installed properly. Check bathtub sidewalls and tub caulldng for water imperviousness. 18. Pipes A. Determine that the drain, waste and vent piping are properly installed and is free of leaks, defects and improper or makeshift repairs. _ B. Determine that the water piping system is properly installed, free of defects , and provides adequate water pressure to all fiztures. Check the water meter pit and cover for accessibility and cleanliness. � � � � � Page 4 � 19. Gas Piping �5 l � Determine that the gas piping has been properly installed and is adequately ' supported. Check for requued lever handled shut-off valves and check any flexible, corrugated gas appliance connector pipes. � 20. Water Heater � � !� � � � � 22. Determine if the water heater(s) is properly installed and vented. Determine if the water heater(s) aze in goal condition and adequate to provide hot water to all outlets at all times. � HF.ATING SYS1�f: 21. A. B. C. � Determine if the heating system is installed properly and safely. Check for zequired safety controls. Determine if a visible means of heat is provided to each habitable room and the bathrooms. Determine if the heating system controls ue in good condition. Venting � LIVING AREAS: 23. � � 24, � � � Genezal Condition Determine if the combustion venting is adequate, properly and safely installed and is free of deterioration or defects. Determine if che general condiaon of the living areas is clean, rodeni and insect free and generally conducive to a healthy environment. Wails, Ceilings and Floors Determine that [here are no significant defects, water damage, or worn-out or deteriorated floor coveringa. On dupiex units, deternune that theze is proper fire separation between the units. � Page 5 25. Windows and Doors Determine if the windows and doors are in good repair, function properly, aze weathertight, have all requued locks and latches and fit and close ptoperly. Check foz rotted, broken or defective wood and defective painted surfaces. 26. Stairs, Rails and Guazdruls Determine if all stairs aze in sound condition, safe and that handrails and guardrails ue installed properly where they are required. 27. Window Size Determine that windows allow adequate light and ventilation into habitable spaces and that all bedroom windows provide an acceptable egress for escape (the bottom of the window must not be more than 48" off the floor). 28. Smoke Detectors Determine that each dwelling unit is provided with operable, properly placed smoke detectors. Determine that there is at least one smoke detector on each floor with a sleeping room. ATTiC ARF.A: 29. General Condition If the attic is accessible by stairs, determine that there are no hazards or visibie defects in the attic space. Check for excessive accumulation of stored materials. Rental Tax Ec�uitv Sa;nt Paul Pilot Project ..� . q�-q� This is a survey that you are required to complete and give to the Independent Evaluator at the time the property evaluation is completed. Please fill out a survey for each single family home or duplex you are having evaluated. As you know, funding to reimburse the City, County and School District for revenue lost due to this tax credit, is only offered for taaces payable in 1995. To help us convince the Iegislature to provide funding in future years, we need your input on the effectiveness of this program. While your individual responses aze confidential, the collective data will form the basis for a report to the State Legislature. Your name and address are optional. We thank you in advance for your thoughtful responses. Taxpayer Name: Rental Property Address: Ward: 1. 2. 3. 4. 5. 6. 7. 8a. 8b. Is this a duplex or single family property? How many properties did you enroll in this program? How old do you estimate your property to be? What is the assessed market value of your property? How much did you pay for property taxes in 1994? How many bedrooms are in yovr property? What is the rent per unit on your properry? Did you make repairs to your property as a result of ttris program? If yes, would you have made these improvements if you were not enrolled in this program? Sc. Was tfie nature of these repairs voluntary or mandatory? Voluntary meaning that unless the repairs were of a hazardous nature, you had the choice of not maldng the repairs and opting out of the program. Voluntary Mandatory � 10. About how much money did you spend on repairs? As the result of these repairs, do you anticipate a rent increase in the next sut months? (OVER) � 11. If you do adjust rent in the nelct six months, what would be the range of adjustment � per rental unit? $15-$24 $25-$49 $50-or more 12. 13. How many years have you owned rental property? What are the barriers from your perspective to ownership of rental property? property taYes maintenance cost tenant behavior housing laws (permit requirements, zoning, registration, licensing, etc.) 14. What would be your recommendation to effectively deal with run down, badly deteriorated property? Consider that the factors precipitating this condition may include cost, poor management, tenant behavior. I5. 16. 17. 18. 19. 20. 21, 22. 23. 24. 25. 26. What did you pay for the evaluation? `Vas your properry in a targeted area? Were evaluators well trained? Were evaluators courceaus and helpful? If you worked with city housing inspectors, were they courteous and helpful? Were other city staff you worked with courteous and helpful? Did the implementation of this program seem efficient to you? What could you recommend to make this program run more smoothly in the future? In your opinion is this program a good idea? If this program is offered in the following yeaz(s), would you participate? Yes No Undecided If no or undecided, why not? Will you be willing to talk with media or legislators on this program? Yes No Again, thank you for your time. The City may be contacting you in the future to do a � follow-up on these survey questions. L� f � 1 � Date � Tenant Name � Address � Dear Tenant, �:�• rr_ • • � a�-qi In compliance with Minnesota Statute 609.605, regarding lawful entry, I am hereby gving � you a 24 hour advance written notice of my intention io allow the inspection of your rental unit by a certified, independent Tazc Equity Evaluator. � � Address of rental unit: Date of Inspection: Time of Inspection: �� This inspection is being performed as an applicauon criteria for my participation in the Rental Tax Equity Program. You may be present during the inspection, if you so desire. Furthermore, I am informing you that if I choose to participate in this program, your rent credit in 1996 may be affected. � Sincerely, j � � � i � � t � � � � � � � � � � � � � � � � � Q a--� � �"' � � � O � � � � W � F- : . uwlsaM = • . , 35E1 � . . . u°s�l�ef � i . . � 20�y • • � ` � � g � . � � . � ; . .� . . . . � � : � �l � il1 Q mawie j a5-�� -� � -� a a,��E� j . � _ � w � d . @ � � � � � � m r c� .0 � Z� � o �� Q � � �0�¢-` . � � O' E E E E E E E U a E E E E E E E .� 'U '� '� '� '� '� '� � � > > � � 3 � � a� U U U U U U U O +° Q7 � r N C�J � � <O 1� � 'D "O 'O 'O 'O 'O "O ,��/� ( LS N > R N c0 (0 @ (0 VJ � � > � � � � � � Tax Equity Program Target Areas: Boundary descriptions Nofe: Targei areas incfude boYh sides of named boundary streets. More detailed maps of ihe target areas will be available at a later date. Targef Area A(Ward 3): Ford Parkway between Howell and Sneiling; Sneiling Avenue beiween Ford Parkway and Randoiph; and Randolph between Snelling and Lexington. Target Area B(Ward 3): Randolph between Cretin and Snelfing; Sneliing befween Randolph and St. Clair; and St. Clair beiween Fairview and Ayd Mill Road. Target Area C(Ward 4}: University Avenue on the north; Fairview Avenue on the east; lgtehart Avenue on ihe south, and Prior Avenue on the west. Target Area D(Ward 4): Thomas Avenue on the north; Hamiine Avenue on the east; Sherburne Avenue on the south; and Asbury Street on the west. Target Area E(Ward 1): Selby Avenue on the noRh; Dale Street on the east; Holly Avenue on the south; and Victoria on the west. Target Area F(Ward 1): Thomas Avenue on the north; Dafe Street on the east; Sherburne Avenue on the south; and Victoria on the west. Target Area G(Ward 5�: Front Avenue between Galtier and Rice, and Litchfield Street between Rice and Sylvan Street on the north; Sylvan Street on the east; Winnepeg Avenue between Sylvan Street and Rice Street, and Atwater Street between Rice and Gaitier on the south; and Gaitier Street on the west. Target Area H(Ward 5): Magnotia Avenue on ihe nofth; Edgerton on the east; Case Avenue on the south; and De Soto Street on the west. Target Area I(Ward 6): Ivy on the north; Arcade on the east; E. Maryland on the south; and Payne on the west. Target Area J(Ward 7): Maple Street on the north; Conway Street on the east; Mounds Boutevard on the south; and E. Sixth Street on the west. Target Area K(Ward 7): E. Seventh Street on the north; Johnson Parkway on the east; Minnehaha on the south, and Duiuth on the west. Target Area L(Ward 7): Larpenteur Avenue on the north; Christie Place between Larpenteur and Idaho, Etna between idaho and Hoyt, Hazelwood between Hoyt and Nebraska, Dieter between Nebraska and Nevada, and Barciay between Nevada and Arlinqton on ihe east; Arlington on the south; and Clarence on the west. �5-Q 1 CERI�IED ST. PAUL TAX EQUITY EVALUATORS 7oe Scheunemann 7ames I.onetti Charles Blixt Ronald Conrad Ed Parranto Gary Hartman Roger Pass 7erry Waldron Dan Niezgocki I.atry Kiteck Jeff Blixt Leroy Hedquist Mike Moser Richazd Kifian Tom Lewis Peter Beagan Scott Hansing Jeff Shaller Ron Staeheli Barry Eliason Fred Gerst Mark Felion 646-0009 b99-3197 641-0641 426-5012 738-6434 699-3197 690-2122 648-0847 738-3764 774-2734 641-0641 828-9829 455-5888 780-5500 690-9000 641-0641 94432�7 645-5387 293-0100 639-0184 824-7444 690-5463 Myron Fossnm Gary Schutta ]ohn Seoram Tom Morse Cheryll Brown Doug fIastings Dennis Lash Dazwin Martinson Dale Clauson Dennis Moore Dave Kirwin Ray Hentschel Harry Hcese Kevin Clazk Roger Bovee David Chapman Peter Dean Peter DeTomaso 781-6032 780-0932 884-9397 483-8194 829-0044 892-0490 729-6973 644-2041 779-9184 699-3197 784-7973 429-8685 929-4741 457-3441 653-5976 699-3i97 698-7880 552-i888 q5-q� APPENDIX C SURVEY DATA � � � � i � � � � � � � � � � � � � �� RENTALTAX EQUITY; SAINT PAUL PILOT PROJECT PROGRAM SURVEY DATA Program surveys were obtained from 345 property owners on the 433 single-family homes and duplexes that were certified under the Rental Tax Equity Pilot Project. The 433 properties include a total of 680 units. The following is a compilation of the data reported by the property owners. 1. NUMBER OF SINGLE-FAMILY HOMES/DUPLEXES BY WARD: Ward 1 � 3 4 5 6 7 Totals: 186 # of Duplexes 40 34 21 33 41 35 43 247 Total 66 49 55 53 73 62 75 433 2. NUMBER OF OWNERS WHO ENROLLED 1 PROPERTY IN THE PROGRAM: 257 NUMBER OF OWNERS WHO enrolled 2 PROPERTIES IN THE PROGRAM: 88 3. AGE OF STRUCTURES: 1- 33 Yrs. 34 - 66 Yrs. 67 - 99 Yrs. 76 135 190 4. ASSESSED MARKEI' VALUE: 100+ Yrs. 32 $1 - $40.000 $41,000 - $80.000 $81,000 - $120.000 68 262 90 AVERAGE ASSESSED MARKEI' VALUE: $62,164 �. AVERAGE NON-HOMESTEAD TAXES PAID IN 1994: $2,456 # of Sinsle-Family Homes 26 15 34 20 32 27 32 over $120,000 13 � Survey Data Page 2 6. NUMBER OF BEDROOMS: (Note: information was not reported by all ownen.) SINGLE-FAMILY HOM�S 1 Bdrm. 2 Bdrm. 3 Bdrm. 4 Bdrm. 5 Bdrm. 6 Bdrm. 7 Bdrm. 1 50 92 34 3 1 1 DUPLEX UNITS 1 Bdrm. 2 Bdrm. 3 Bdrm. 75 267 136 7. DISTRIBUTION OF RENTS: (Note: information was not reported by all owners.) SINGLE-FAMILY HOMES 1 Bedroom $600 - $699 1 2 Bedrooms (Averaae: $598) under $400 �400 - $499 $500 - $599 $600 - $699 $700 - $799 $800+ 1 5 19 19 4 Z 3 Bedrooms (Average: $697) $400-$499 $500-$599 $600-$699 $700-$799 $800-$899 $900-$999 $1.000+ 3 22 35 26 8 5 3 4 bedrooms (Average: $880) $500-�599 $600-�699 $700-$799 $800-$899 $90�-�999 �1000-$1049 �I100+ 1 6 9 7 2 2 7 5 Bedrooms $300 - $399 $600 - $699 1 2 6 Bedrooms 7 Bedrooms $700 - �799 $900 - $999 1 1 , Survey Data Page 3 � � DUPLEX UNITS 1 Bedroom (Average: $408) � $300 - $399 $400 - $499 $500 - $599 $600 - $699 22 32 4 1 � � � � Q5-q � 2 Bedrooms (Average: $532) $300-$399 $400-$499 $500-$599 $600-$699 $700-$799 �800-�899 $1000+ 23 65 101 43 il 1 3 3 Bedrooms (Average: $666) $300-399 $4001199 $500-599 $600-699 $700-799 $800-899 $900-999 $1000+ 2 8 31 34 20 16 2 2 � 8a. NUMBER OF PROPERTIES WHERE REPAIRS WERE MADE: 385 NUMBER OF PROPERTIES WHERE NO REPAIRS WERE NEEDED: 48 � � � � � , � � � 86. NUMBER OF OWNERS WHO WOULD NOT HAVE MADE IMPROVEMENTS WITHOUT THE PROGRAM: 214 (See attached Summary and Highlights of Property Owners' Comments.) 8c. NUMBER OF VOLUNTARY/MANDATORY REPAIRS: (Voluntary meaning that uniess the repairs were of a hazardous nature, the owner had the choice of not making the repairs and opting out of the program.) Votuntary: 353 Mandatory: 44 NA: 36 (no answer) 9. COST OF REPAIRS: TOTAL COST OF REPAIRS FOR ALL PROPERTIES AVERAGE COST OF REPAIRS PER PROPERTY: $438,024 $1,138 DISTRIBUTION OF DOLLARS SPENT ON REPAIRS PER PROPERTY: $1- $250 $251 - $50p $5p1 - $750 �751- $1,000 $1,001 - $1,500 $1,500+ 12�8 117 38 29 22 51 ] 0. NUMBER OF OWNERS WHO ANTICIPATE RAISING THEIR RENTS IN THE NEXT YEAR AS A RESULT OF MAKING REPAIRS UNDER THE RENTAL TAX EQUITY PROGRAM: 20 � Survey Data Page 4 I2. DISTRIBUTION OF ANTICIPATED RENT INCREASFS: $1-$14 $15-$24 $25-$49 $SOormore 3 11 0 6 12. DISTRIBUTION OF NUMBER OF YEARS RENTAL PROPERTY HAS BEIN OWNED: 0- 5 rs. 6- 10 vrs. i l- 20 yrs. 21+ vrs• 103 131 150 49 13. BARRIERS TO OWNERSHIP OF RENTAL PROPERTY: PROPERTY TAXES: 406 MAINTENANCE COSTS: 21I TENANT BEHAVIOR 272 HOUSING LAWS: 132 I4. PROPERTY OWNERS' RECOMMENDATIONS FOR EFFECTtVELY DEALING WITH RUNDOWN, BADLY DEI'ERIORATING PROPERTY: (See attached Summary and Highlights of Property Owners' Comments.) I5. COST OF HAVING THE EVALUATION DONE: $1-�100 $101-�150 $151-$200 overS200 164 22A 41 4 16. NUMBER OF PROPERTIES IN TARGEI' AREAS: 48 (Note: 7 properties in target areas were certified during the "priority" time.) 17. WERE EVALUATORS WELL-TRAINED? Yes: 412 No: 0 NA: 21 18. WERE EVALUATORS COURTEOUS AND HELPFUL? � Yes: 418 No: 1 NA: 14 19. WERE CITY HOUSING INSPECTORS HELPFUL? Yes: 165 No: 9 NA:259 (Note: Some property owners may have confused City housing inspectors with tax equity evaluators. Very few owners had any contact with Cit}� inspectors.} � i ' � Survey Da[a Page 5 �P 5 -� 1 2Q. WERE CITY STAFF HELPFCTL? Yes: 395 No: 2 I�iA: 36 21. DID THE IMPLEMENTATION OFTHIS PROGRAM SEEM EFFICIENT? (See attached Summary and Highlights of Property Owners' Comments.) Yes: 362 No: 29 NA: 42 22. RECOMMENDATIONS FOR MAKING THIS PROGRAM RUN MORE SMOOTHLY IN THE FUTURE: (See attached Summary and Highlights of Property Owners' Comments.) 23. IS THIS A GOOD PROGRAM? Yes: 409 No: 1 NA: 23 24. IF THIS PROGRAM IS OFFERED AGAIN IN FOLLOWING YEARS, WOULD YOU PARTICIPATE? Undecided: 15 Yes: 413 No: i NA: 4 25. IF NO, WHY NOT? (See attached Summary and Highliahts of Property Owners' Comments.) 26. WOULD YOU BE WILLING TO TALK WITH THE MEDIA OR LEGISLATORS? Yes: 346 No: 68 NA: 19 �� RENTAL TAX EQUITY; SAINI' PAUL PILOT PROJECT '' SUMMARY OF PROPERTY OWNERS' COMMENTS Generally based on common themes within the survey comments, it was determined that � most of the thoughts regarding problems in rental property ownership revolve around taxes and financial burdens. Eighty-two (82) suggestions were made to increase the number of taac reliefs and incentives, such a the existing Rental Tax Equiry Program. Forry-three (43) � suggestions were made about increasing financial incentives and disincentives, in hopes that owning rental property is more Iucrative and improvements are more feasible. Many suggested yeazly inspections—forty (40) comments were in regard to better enforcement and � stiffer penalties to irresponsible landlords, with mandatory yearly inspections. Other solutions involved expansion of the e�cisting program with few limitations and restrictions (29 cornmenu). In reference to problem buildings (old or dangerous), twelve (12) suggestions E were to bulldoze or condemn ihem, eleven (ii) were to increase community involvement and neighborhood improvement programs, and three (3) suggested owner-occupancy for a period of time. � The e�ciency and effectiveness of this program produced several reactions. The issue surrounding the affordability and convenience of the certified/cashier's checkwas mentioned thirty-seven (37) times. The literature sent out and the procedure was considered confusing and too compiicated by twenty-five (25) appiicants. Twelve (12) felt that the program was costIy and did not provide enough incentive; it was often suggested that the program wouId be unnecessary if taxes were fair to begin with. Eight (8) were dissatisfied with the publicity, and seven (7) wished to apply via mail or otherwise instead of in person. General program satisfaction was the dominaiing response, with nineteen (19) comments to that effect. Sixteen (16) felt that there. should have been more time to make the necessary repairs. Three (3) made the suggestion that coordination with other inspectors (i.e. truth-in-housing, Section 8, City inspectors) would have been more cost effective. Overall, comments were positive and a common theme was that this program is a step in the right direction and should be continued as an ongoing program. '�5 -a i RENTAL TAX EQUITY; SAINT PAUL PIIAT PROJECT HIGHI IGHTS OF PROPERTY OWNERS' COMI��NTS The following are some of the commenu from property owners in response to specific questions on the Program Survey. Qnestion 8: Would you have made improvements if yon were not enrolled in tlus program? The inspection brought a coupie of items to my attention--had I known for any reason, I would have done them. Only because I was not awaze of the problems, plus I voluntarily installed an electric smoke detector. Not as eactensive. I would not have lrnown they were recommended. Yes, but not immediately. Some, not all. I would not have known there was a problem without the inspection. Probably, but not this yeaz. Question 14: What would be your recommendation to effectively deal with run down, badly deteriorated property? Construct programs so that the properties can become owner-occupied. Encourage home ownership. Rental properties do not work under present tax laws. Owners lose money and cannot sell because of taac laws and cannot afford to rehabilitate either. Reduce taxes and easier access to rehab funds (less red tape). This program is the single, most significant program I can think of. The financial inducement is substantial. Make tenants accountable for actions and financially assist property owners willing to rehab. Owners' Comments Page 2 Have a centrai locadon that landlords can call in on a bad tenan� Take Section 8 people off program when they damage the rental property they aze fiving in. Strict conuol and penalties for slum landlords. Make this program permanent, or other types of tax credits. F�pand the Tax Equity Program to more than one year. Lowering taxes, heip increase income available for upkeep. Do not appeal to the lowest common denominator and assume that all landlords would pocket the difference. I.ow interest improvement loans. Quicker and less cosdy eviction of tenants who don't pay rent or wfio damage properry. More programs like this one with "positive" rewards instead of "punitive" actions. Tear down the building. Enforceable laws to hold tenants responsible for damage and problems they cause. Enforce codes already on the books. Make this program mandatory for all rental property. Incenrives to help property owners fix property, loan programs, etc., reduce bureaucratic barriers, and non-homestead taxes. Only the tenant suffers, since we're forced to pass costs to them. Work with grassroots neighborhood organizations to. encowage pride. Yeazly inspection leading to ticketing for deficiencies, with repairs due in 90 days. If it was easy you would have done it already. It's a combination of coming down hard on code violator without hazassing those in compliance. Educate landlords or at least motivate them with programs like this. Make it easier to get rid of bad tenanu. Grant and matching loan programs. Many landlords would make improvements but lack access to loans for rehabilitation. There is now nowhere to go for that. Neighborhood appeazance and neatness is what attracts buyers and increases property values in any given azea. We should have town meetings on tlris subject. , i � , , , !_� , � � ' � , � � � � � �� Owners' Comments Page 3 Qnestioa 21: Did the implementation of this pmgram seen efficient to you? I feit it could have been better advertised in newspapers. Too many conditions and pages of instructions. A little confusing regazding timing, also certified or cashier check an inconvenience. Because it was limited, I felt I could not participate. Seemed confusing at first. The pubficity was terrible. I knew nathing about it until mid September. Not really, too many costs to receive small benefits. Should accept personal checks. Qnestion 22: What could you recommend to make this pmgram run more smoothly in the future? Not requiring all major repairs be done in the current period. Should be first come first serve regardless of where owner lives. Give more time to allow for fixing the items that are not up to code. Don't restrict to target areas eazly, everyone treated equally. I'm aIready inspected by Section 8. Every inspection has to justify his/her elcistence. Open it up to all non-homesteaded property. Don't ask for certified check. If checks bounce, don't issue the certificate, Allow more lead time to make application - need time to make repairs. I thought the process was efficient and organized. Program seems to run smoothly. � Owners' Comments Page 4 The program is very satisfactory to me. Allow all property owners to apply at the same time. I feel many were disrrin+;nated against based on location of rental property, if outside target azea and residence of landlord. Altow everyone, regardless of where they five, to apply at the same time. Run it for longer period of time - 5 years. Should be for 3 years, not worth it for 1 year. Facpand the program to include more than 2 properties. Fees aze too eacpensive. It should be advertised more widely to inctease participation. Don't be discouraged. More widespread publicity; additional funding. Simplify it Question 25: If this program is offered in following years, why wanld yau not participate? Cost to participate vs. money gain; also time cost. I haven t seen outcome yet. I spent a Iot of money. I would like to see more payback by continuing this program for more yeazs. Not sure of lost savings. Would want to understand the program first, and have more time to complete repairs. _ I would have to see the program. We try to keep our rental units in good repair and also try to keep rents low. The time to schedule all the necessary appointments, etc. is in short supply. We also didn't save that much money. Depends on paperwork and hassle required. , � � � � � 1 ' , � r_��r.��:i.� ACKNOWLEDGMENTS a5-� 1 ' a 5 -q � ACKNOWLEDGMENTS The Rental Tax Equity; Saint Paul Pilot Project was a collaborative effort that included the following organizarions, departments, and public officiais. Minnesota State Legislature Saint Paul Mayor's Office Saint Paul City Councii Saint Paul City Attomey's Office Saint Paul Housing Information Office Saint Paul Deparnnent of Public Health, Housing Code Enforcement Ramsey County Department of Property Records and Revenue Saint Paul City-wide Information Systems Rental Ta�c Equity Evaluators Saint Paul Area Association of Realtors Saint Paul Association of Responsibie Landlords Saint Paul Community Stabilization Project Saint Paul Tenants' Union CITY OF SAINT PAUL Norm Co[emart, Muyor January 25, 1445 Representative Kazen Clazk 503 State Office Building House Housing, Chair Saint Paul, Minnesota 55155 Dear Representative Clark: � '" �,. , �„ :.._ _- . ,._� -- . ,� _c 390 Ciry Hn!! Telepirone: 61 2-2 66 851 0 IS West Ke!lagg Boulevnrd Fatsimilc 612-2668SJ3 Snint Pnul, NLY SSIO2 The City of Saint Paul wouid like to express our thanks to the Minnesota State L.egislature for the opportunity to implement the Rental Tax Equity; Saint Paul Pilot Project which you funded in I994. Equally, we are seeking an extension of the program in the coming years. � We are delighted by the results of the program. The goal of the Rental Tax Equity; Saint Paul Pilot Project was to reduce property taxes payabie in 1995 on non- homesteaded single-family and duplex rental properties in the City of Saint Paul (Minnesota Statutes, Section 645.021). The purpose of the program was to stabilize costs for conscientious landlords who provide safe, decent, and affordable housing and to offer an incentive to Iandlords to improve their tenant-occupied property. As you can see in detail, in the attached report, the Project heralded the following substantive findings: The Rental Tax Equity; Saint Paul Pilot Project was a successful program through which four-hundred thirty-three (433} rental properties were certified to receive a proper[y tax credit. The average estimated tax credit per property was $1,I60, and the average amount spent on repairs was $1,138. The concept of pvtting dollars into a property in return for a tax break worked. The doilars spent on improving properties almost equaled the dollars given in ta�c credits. The total amount of estimated ta�c credit is $503,000, while the total amount of dollars spent on repairs was $438,000. The goal of improving rental properties was achieved. The Rental Tau Equity; Saint Pau1 Pilot Project was a collaborative effort between pubJic officials and many city and county departments, organizations, and individuals. Through this collabora[ion, the planning and implementakion of this program was successfully completed in a very short period of time. If the program had been run for a full year, the one million dollar cap most likely would have been reached. � �s�-�� 7anuary 25, 199� Page Two Repairs were made on three-hundred eighty-five (385) or ninety percent {90%) of the properties certified through this program. The majority of these property owners indicated they would not have made improvements without this program. �'11e average cost of repairs per property was $1,138. Typical repairs had to do with safety items such as venting, smoke detectors, handrails, and ground fault interrupters, as well as interior and exterior maintenance, such as pa?nting, repairing windows, and re-roofing. • Within the short timeframe, we feel confident the success we attained in 1994 can be accelerated and maintained. Respectfully submitted by, 0 /L c--, ! �-----_ Mayor Norm Coleman `�� Vi ce President Janice Rettman Councilmember Dino ciuenn ``� Councilmember Mike Harris n ��z G2� ��--�,(�-�( �Councilmember Robeif Megard cc: Pamela Wheelock, Deputy Mayor Chuck Armstrong, Assistant to the Mayor Chris Lukesh, Housing Information Office Chuck Votel, Code Enforcement Peter Warner, City Attorney Brian Ducklow, Ramsey County Greg Von Rothkirch, Ramsey County Feggy Rector, Ramsey County Chris Samuel, Ramsey County Gale Hawkinson, CIS Rental Tax Equity Evaluators Saint Paul Area Association of Realtors Saint Paui Association of Responsible Landlords Saint Paul Community Stabilization Project Saint Paul Tenants' Union RENTAL TAX EQUITY LETTER� DATED 1/25/95 Saint Paul Delectation - 14 Members Senator Randy Kelly 122 State Capitol Saint Paul, Minnesota 55155 Senator Richard Cohen 317 State Capitol Saint Paul, Minnesota 55155 Senator Sandy Pappas G-27 State Capitol Saint Paul, Minnesota 55155 Senator Ellen Anderson G-27 Capitol Saint Paul, Minnesota 55155 Senator Kevin Chandler 111 State Capitol Saint Paul, Minnesota 55155 Representative Matt Entenza 531 State Office Building Saint Paul, Minnesota 55155 Representative Andrew Dawkins 409 State Office Building Saint Paul, Minnesota 55155 Representative Betty McC011um 501 State Capitol Saint Pau1, Minnesota 55155 Representative Alice Hausman 449 State Office Building Saint Paul, Minnesota 55155 Representative Howard Orenstein 529 State Office Building Saint Paul, Minnesota 55155 Representative Carlos Mariani 403 State Office Building Saint Pau1, Minnesota 55155 Representative James Farrell 423 State Office Building Saint Paul, Minnesota 55155 The Honorable Thomas Osthoff 585 State Office Building Saint Paul, Minnesota 55155 `�'IS�iI The Honorable Steve Trimble 491 State Office Building Saint Paul, Minnesota 55155 Senator pouglas J. Johnson Senate Taxes and Tax Laws, Chair 205 Capitol Saint Paul, Minnesota 55155 Senator Steven G. Novak Senate Jobs, Energy and Community Development, Chair 322 Capitol Saint Paul, Minnesota 55155 Representative Ann H. Rest House Taxes, Chair 443 State Office Building Saint Paul, Minnesota 55155 Representative Karen Clark 503 State Office Building House Housing, Chair Saint Paul, Minnesota 55155