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96-46Council File # ��= � tD Green Sheet �� 6 I tp RESOLUTION OF SAfNT PAUL, IVtiNNESOTA Presented By Referred To Committee: Date WHEREAS, The City of Saint Paul is authorized to establish a pilot project for rental ta�c equity for property taaces payable in 1996 for owners of single and two family nonhomestead property, pursuant to I,aws 1994 Chapter 587, Article 5, Section 27; and WF�REAS, The pilot program began July 17, 1995 and applications were accepted through September 1, 1995; and WHEREAS, The special legislation required that the City Council provide a report to the Senate Committee on Housing and the Committee on Ta�ces, and also to the House TaY Committee; and WHEREAS, The report required by the speciallegislation has been prepared by tlie Housing Information O�ce and considered by this Council; now therefare be it RESOLVED, That the Council of the City of Saint Paul does hereby direct the Council Secretary transmit a copy of the attached Advance Copy Report of the Rental Tas Equity; Saint Paul Pilot Project to the Senate Committee on Housing and the Committee on T�es, and also to the House Tas Committee. Requested by Department of: _ � By: Form Appro d by Ciry Attorney By: �.�ULl�,."'�-.� �� ,S'-g� � Appraved by � Approve�ayor for Submis �/Co� _ ,� 'v, ,� F ..�.� By: � � Adopted by Council: Date� �b \ `c�� Adoprion Certi£ed by Council ecretary �� RENTAL TAX EQUITY; SAINT PAUL PILOT PROJECT REPORT TO TFIE MINNESOTA STA'I� LEGISLATIJRE JANUARY,1496 Prepared by: City of Saint Paul Office of the Mayor Housing Information O�ce �1�-�-1� C�NTENTS HXECUTIVE SUMMARY PROGRAM REPORT APPENDIX A: CITY COUNCIL RESOLUTION, FILE #95-698 APPENDIX B: INFORMATION PACKET Information Sheet Rental Tas Bquity Program Guidelines Tax Equity Program Inspection Guidelines Sample Letter to Tenant List of Certified Tax Equity Evaluators Program Survey APPENDIX C: Si3RVE'Y AATA APPENDIX D: ACKNOWLEDGMENTS ='1�-L1� RENTAL TAX EQUITY; SAINT PAUL PILOT PROJECT EXECUTIVE SUNIMARY + The Rental Ta7c Equity; Saint Paul Pilot Project has been successfully implemented for two years (on taaces payable in 1995 and 1996). Over the two-year period 1994-1995, the City of Saint Paui used the $1,000,000 allocated by the Mimiesota 5tate Legislature to provide property taY credits to owners of single-family and duplex rental units. Over the same two-yeaz period, almost $750,000 has heen spent on repairs to these rental properties. � The Rental Tas Equity; Saint Paul Pilot Project has been a collaborative effort between public officials and many city and county departments, organizations, and individuals. • In 1995, three-hundred seventy-four (374) properties were certified to receive a property tas credit. The total amount of estimated tas credits on taxes payable in 1996 is $451,000. The average tax credit per property is $1,206. • In 1995, the total amount spent on repairs was approximately $332,500. The average amount spent on repairs per property was $924. • Eighty-two percent (82%) of the property owners indicated that they would not have made all the repairs to their properties without this program. Many owners did more repairs than what was required under the program. Typical repairs dealt with safety items such as smoke detectors, handrails, venting, electrical wiring, in addition to painting, replacing or regairing windows and doors, and re-roofing. • Feedback on the Rentai Tax Equity Program has been very positive. Property owners have expressed how pleased they are that they aze being supported in trying to maintain good rental property while trying to keep it affordable. �� RENTAL TAX EQUITY; SAINT PAUL PII,OT PR03ECT PROGRAM REPORT The Rental Taa� Equity; Saint Paul Pilot Project was established in 1994 by the Minnesota State Legislature to reduce property taxes payable in 1995 on non-homestead single-family and duplex rental properties in the City of Saint Paul (Mimiesota Statutes, Section 645.021, subd. 3). State legislation extended the program to 1995 for property taaces payable in 1996. The primary objective of the program was to give an incentive to landlords to improve their tenant-occupied property and still offer affordable housing. The Saint Paul City Council adopted a resolution to continue the Rental Tax Equity; Saint Paul Pilot Project in 1995. (See Appendix A: City Council Resolution, File # 95-698.} Tn 1995, the Miiuiesota State Legislature gave approval to Saint Paul to spend the remainder ofthe $1,000,000 that had been allocated to the Rental Tas Equity; Saint Pau1 Pilot Project in 1994. The total tax credit given under this program in 1994 (on ta�ces payable in 1995} was $520,961. Therefore, Saint Paul had approximately $479,000 to use for ta�c credits in 1995. The Saint Paul Housing Information Office once again administered the program during the second yeaz. The Saint Paul Department ofPublic Health was responsible for training the tax equity evaluators and implementing the inspection process. The Ramsey County Department of Property Records and Revenue provided the City of Saint Paul with a listing of alt non- homestead singie-family and duplex rental properties. The Housing Information Office sent these properiy owners notification of the program for 1995. (See Appendix B: Tnformation Packet.) The 1995 application process started 7uly 17, 1995, and ended September 1, 1995. The program deadline, by which time properties had to be certified to receive Che tax credit, was November 1, 1995. The legislation required that priority for receiving the taac credit be given to property owners who lived in the City of Saint Paul. This was accomplished by allowing owners who were Saint Paul residents to apply to the program before non-residents, thereby giving them the opportunity to complete the program sooner. Property owners who were non residents could not apply until August 14, 1995. Properties were certified by the order in which the owners completed the program process. During, this "priorit}�' tune period (3uly 1� - August 11), 41% (153 properties) of the appiications were made. In 1995, the City of 5aint Paui received applications to the program for three-hundred ninety- one (391) properties. Three-hundred seventy-four (374) properties were certified to receive a rentai property taY credit. This year, 96% of the enrolled properties were certified compared to 89°/a 1ast yeaz. Of the seventeen (17) properties that were enrolled this year but Program Report 2 did not receive certi&caYion, five (5) had the fust evaluation done, but the property owners did not wmplete the program. For the remaining twetve (12), initial evaluation reports were never filed. The total amouni of estimated taY credit that will be provided through this program on taYes payable in 1996 is $450,918. TMs figure is based on estimates from the Ramsey County Department of Property Records and Revenue on the difference between the homestead and non-homestead rates for tases payable in 1995. In 1995, the average ta�c credit per property was $1,20b, compared to $1,160 in 1994. The actual total tas credit amount for 1994 was approximately $17,000 or 3.4% more than the total estimated tatc credit amount. Combining the total actual taac credit for 1994 and the estimated total taY credit for 1995, plus allorving for an approximate 4% overage for 1995, the City of Saint Paul will come very close to reaching the one million datlar cap set by the State Legislature for rental property taz credits in 1995 and 1996: A change in the 19951egislation required a properry Yo be in need of repair in order to be eligible for the program. Therefore, repairs were made on all properties this year that were certified to receive a properry tax credit. The totat amount spent on repairs for all properties was appro�mately $333,000 or an average of $924 per property. Typical repairs had to do with safety items such as installing ground fauit intemzpters, providing handrails, correcting improper venting of gas appliances, and instaIling or repairing smoke detectors. Other repairs included pa'rn;ng, repairing or replacing doors and windows, and re-roo&ng. When a hazardous life-safety item was cited, code compliance was mandatory regardless of whether or not the property owner chose to complete the Rentat Taz� Equity Program. There was a positive response from property owners that the evaluators who inspected their proper4es were knowledgeable and helpful. Owners were generally very pleased to leam of needed regairs and eager to properly maintain their rental properties. The Program Guidelines required property owners to submit a survey for each property that was certified under the Rental T� Equity PiloY Project. The compilation of data from these surveys provides a comprehensive study of tfie kousing stock, ownership, rents, repair costs, pro$ram participation, and owners' opinions on various aspects of the prograzn. (See AppendiY C: Survey Data.) The implementation of the Rental Tax Equity Program for the second year went very smoothly. Property owners who participated in 1994 were eager to parficipate again. Some of these owners enrolled different properties. Others found that over a year's time their properties were a;ain in need of repairs and enrolled the same property. One-hundred (100) properties were enrolled for the Srst time. ��-�� Program Report For the two-yeaz period of the Rental T� Equity; Saint Paul Pilot Project, approximately $750,000 was spent on repairing rental property. Five-hundred thirty-four (534) different remal properties throughout the City of Saint Paui have been unproved under this program. Saint Paul needs to preserve its aging housing stock, and at the same tune, keep it affordable. Offering the Rental Tax Equity Program for two yeazs has been a significant start in addressing these needs. However, the real potenrial for this program to make a strong impact on neighborhood stability is in its cominuation, as more landlords participate and more rentai properties are improved. Tenants benefit from repairs being made and rents being kept in check because property owners use this tax credit to fix up their properties rather than increasing rents. The Housing Infoimation Office has received anly positive feedhack on the program in 1995 and continues to get calls from property owners wanting to participate. Owners haue been very pleased with the program and have indicated their desire to see it continue and expand. f �_"� 4 � APPENDIX A CITY COITNCII, RESOLITTION, FIbE #95-698 ORIG1NaL Presented By Re£erred To R�so�u /3 2 WHEREAS, Chapter 264, Article 3, Section 38, Laws of Minnesota 1995, entiUed 3 "Rentai TaY Equity; Saint Paul Pilot ProjecY' amended Chapter 587, Article 5, Section 4 27, Iaws of Minnesota 1994, entitled "Rental Tax Equity; Saint Paul Pilot Pro}ect" which 5 had been previausly adopted by the Council of the City of Saint Paul in its Resolution of 6 Approval, Councii Pile I3o: 94-891, in compliance with Minn. Stat. § 645.021, subd. 3; 7 T'HEREFORE BE IT 9 10 11 12 13 14 15 16 17 RESOLVED, by the Council of the City of Saint Paul, pursuant to the provisions of Chapter 264, Article 3, Section 38, subdivision 10, that Chapter 264, Article 3, Section 38, L,aws of Minnesota 1995, entitled "Rentai Tax Equity; Saint Paul Pilot ProjecY' is in allthings adopted herein by reference and approved; A1VD BE IT FURTHER RESOLVED, that the City Clerk, as tbe chief clerical officer of the City of Saint Paui, shall forthwith file with the Secretary of State, in a form prescribed by the Attomey General, a certificate stating the essential facts necessary to the adoption and approval of said law in compliance with Minn. Stat. § 645.021, subd. 3. Requested by Department of: B Form Approved by City Attozney Adoption Certified by Council Secretary BY � � 4 �!uv�, ,-. � Approved/b�f May�� Date �1 �C•f�� i ay: l �j � .;� '�`�� $,.: ��-, If��-� Appzoved by Mayoz for Submission to Council i � sy: �L , %� a6-�� Council File # Green Sheet # 291 Adopted by Council: Date ��;_ ,�,�! ��°� � �� _ �� •�� r : II3FORMATION PACKET q�-y� D ear Sai� Paul landtord - , � a program in Saint Paul that may allow you to make needed to your rentat property and get a credit on your property taxes! 1995 Rerr�al t� Fquity Pra,�ram Who's Eligfble? Owners of single-family or duplex non-homestead rental properties in Saint Paui aze eligible. T'his program applies only to properties that are in need of repairs. This is a change from last yeaz's pro- gram, required by 1995 Minnesota state legislation. What's lnvolved? ■ Pay a$55{per property application fee to the City ■ Hire a certified Rental Tax Equity Evaluator to inspect the property and identify needed repairs, based on City Inspection Guidelines f Do the repairs ■ Have the property reinspected by the evaluator How Much !s It Worth? The amount of the tax credit received by a property owner wlll be equal to the difference between the homestead and the non-homestead rate for the 1995 tax year. This ctedit will reduce the taxes you pay in 1996. Last year, the average credit received per property was $1,160. Naw Much Funding ls Available? $450,000 in tax credits is available to Saint Paul this year. When the dollars are depleted, the program will end. Funds will be allocated on a first-come first-served basis. Property owners who are Saint Paul residents will be given priority in the program. lmportant Dates Application starts: Application deadlrne: Program deadline: July 17,1995 - Property owners who are Saint Paul residents August 14, 1995 - Property ocvners who are non-residents Septembex 1,1995 November 1, 1995 � Tv Obtain Complete Program Guidelines please contact: Saint Paul Housing Informafion Office 21 W. Fourth Street Saint Paul, MN 55102 (612)2b6-b000 .� i� � �! . t OFFICE OP THE MAYOR ��" � `� HOUSING INFORMA'IION OFFICE CITY OF SAINT PAUL Nornz Cofemars, Macar Christine Lukesh, Director 21 West Fourth Street Telephone: 612-266-6000 Sairt[ Paul, MN SSIO2 Facsimile: 6I2-298-5054 July 1 Q 1995 RENTAL TAX EQUITY; SAINT PAUL PILOT PROJECT PROGRAM GUIDELINES The City of Saint Paul is pleased to offer the Rental Tazt Equity; Saint Paul Pilot Project for a second yeaz. Tfris program is for single-family and duplez non-homestead rent�i properties in the City of Saint Paul. The program provides a property ta�� credit equal to the difference between the homestead and non-homestead rate for the 1995 tax year (taYes payable in 1996). This is still a pilot progran�, and there is no guarantee that funds will be available in future yeus. The purpose of the program is to offer an incentive to landlords to improve their tenant-occupied property by taking care of needed repairs. The 1995 legslation allows the City of 5aint Paui to provide tax credits totaling approa�mately $450,000. When the dollars are depleted, the program will end. To participate in this program, property owners must apply to the Gity, hire a certified evaluator to inspect their rental property and identify needed repairs, do the repairs, and then have the property reinspected. When this process is completed and the report is filed with the Saint Paul Housing Infom�ation Office, the property will be certified (as long as funding is available) to receive the ta�c credit for 1995 (for taaces payable in 1996). This credit will appear on your 1996 Property Ta�c Statement. State of Minnesota 1995 Session Law, Chapter 264 requires that a Rental Taac Equity Evaluator must have detern�ined that the property needs repairs. The owner must make the repairs and have the properry reinspected in order to qualify for the t� credit PLEASE NOTE: A PROPERTY MUST BE IN NEED OF REPATRS TO BE ELIGIBLE FOR THE PROGRAM. This is a change in the progam this year as required by the 19951egislation. In doing the inspection, the evaluator will make a distinction between repair and maintenance items. The legislation also requires that priority be given to properiy owners who are residents of the City of Saint Panl. Single-family and duglex non-homesteaded structures in the City of Saint Paul aze eligible for the progazn. Properties must have been non-homesteaded on or before January 3, 1995. It does not include property held by non-profits, condos, townhouses, commercial property, or properry that requires a Certificate of Occupancy. Each property owner may enroU a masimum of two (2) properties in the program. "Property owner" is de&ned as the ta�{ payer for a rental property. Partnerships and corporations are atso limited to enrolling only two properties. PSease note: it is a misdemeanor to apply for and receive a taz� credit on more than two properties. � z HOW TO PARTICIPATE TN TFIE RENTAL TAX EQUITY PROGR�IM A. APPLICATION Property owners must apply in person at the Saint Paul Housing Information Office. The office is located in downtown Saint Paul at 21 West Fourth Street. This is across the street from City Hall, betwesn Wabasha a� St. Peter Strests. The office is open Monday through Friday, 8:00 a.m. to 4:30 p.m. Property owners must pay a non-refuudable applicatiou fee of $55.00 per property (maximum of two properties). Personal checks and money orders wil( be accepted (no cas6). Pmperty owners must show a valid driver's liceuse (or other suitahle identification) to verify that they aze a Saint Paul resident in order to be given priority in the program. At the time of applicatioq property owners will receive the fotlowing: • Program Swvey form (one for each enrolled property) • Tenant Notification forms MONDAY. JIILY 17,1995 Property owaers who are residents of the City of Saint Paul can start applying to the program. MONDAY. AUGUST 14.1995 Property owneis who are non-resi@euta of the City of Saint Paul can start applying to the program. FRIDAY. SEPTEMBER 1,1995 APPLICATION DEADLINE d�te - last day for all property owners to 8DD1V to the program. WEDNESDAY. NOVEMBER 1.1995 PROGRAM DEADLINE date — all repairs must be made, reinspections done, and paperwork submitted to the Housing Information Office by ttus date. B. INSPECTIONS After applying, the next step is for the properry owner to contact a Rental Taac Equity Evaluator &om the e,nclosed list of certified evaluators and schedule a time for the inspection. Remal Tas Equity Evaluators are independent contractors. The fee for the inspection is determined by the property owner and the evaluator. The average cost last year was under $200. Prior to the inspection, the property ownet is required by M'innesota law to notiiy the tenant in writing of the date and time of the inspection. Tenants may be present if they so desire. The tenarn notification form provided by the Housing Information Office may be used to notify tenants, or landlords may write their own letter. The letter must aiso state that the teaant's rent credit in 1997 may be reduced. This notice should be a minimum of 24 hours; however, a longer notice is encowaged. ��-� � At the inspection, the evaluator will identify needed repairs based on �nspectiou Guidelines adopted by the Saint Paul City Council. (For your information, the Inspection Guidelines are �closed.) The Rental Taac Fquity Program is not a code enforcement program and participatioa in the program is voluntary. A property owner may choose to drop out of the program at any time and not make the needed repairs. Fees are not refundabie. Please note: enforcement work orders will be issued for any life or safety hazards. If the evaluator dexermines that no repairs are needed, the property is not eligible for the taz� credit. PROPERTIES MUST BE IN NEED OF REPAIRS AND REPAIRS MUST BE MADE IN ORDER TO RECEIVE THE TAX CREDTT. After the initiai inspecrion, the property owner makes the necessary repairs and contacts the same evaluator for a reinspection of the property. A notification letter should again be sent to the tenants informing them of the date and time of the reinspection. To pass the reinspection, all repair and maintenance items that were cited at the initial inspection must be found acceptable by the evaluator. At the reinspection (usually the second inspectioq if all repairs are made properly), the property owner must give the completed Program Survey to the evaluator. The evaluator will submit it to the Housing Inforniation Qflice with the compieted Evaluation Report. C. Within five (5) business days after the reinspectioq the evaluator is required to submit the final Evaluation Report with the Program Survey to the Housing Information Office. Reports will be time/dated as they aze received, and properties will be certified to receive the tax credit by the order in which the completed Evaluation Reports (including the Progam Survey) are received. Agaiq when the money is depleted, the prograzn will end. If the funds are depleted, property owners who have applied to the progam will be notified. PLEASE NOTE: THERE ARE NO GUARANTEES HOW LONG FUNDS WILL BE AVAII.ABLE. Last yeaz 434 properties received the rental taac credit, and tbe average amount of credit per property was $1,160. This year it is estimated that at least 400 properties can be certified to receive the credit. The Remal Tax Equity Program is administered on a first-come, first-serve basis. Property owners who are residents of Saint Paul will be given priority over non-residents in the application process. Therefore, they will have the opporhuiity to make repairs and have the fina( Evaluation Report submitted to the Housing Information Office sooner. Again, please note: properties will be certified by the order in which completed final Evaluion Reports are received. Evaluation Reports will not be accepted until after a property owner has applied to the program. Once the Housing Infom�ation Office receives the Evaluation Report, the 5aint Paul Public Health Department will verify the information. If satisfactory and complete (Program Survey must be included with the Evaluation Report), the Housing Information Office will mail a Taa Credit Certificate to the property owner to verify that the owner will receive a tax credit on taxes payable in 1996. 4 The program deadline date is NOVEMBER 1. 2995. The appfication deadline date is September 1,1995, Repaus must be made and reinspections must be done aitowing tt►e evaivator five (5) business days to submit the paperwork (completed Evaluation Report and Program Swvey) to the Housing Information Oflice by November 1, 1995. There is an appeals process related to qualification for this program. Appeals will be heard by the Code Enforcement Boazd of Appeals between November 1 an@ November 15, 1995. SUbII�IARY OF STEPS IN THE RENTAL TAX EQUTTY PROGRAM Apply to the City in person at the Housin$ Information dffice. a. Pay $55.00 application fee per properry (maximum 2 properties) (check or money order will be accepted - no cash) b. Show driver's license to verify City residency APPLICATION START DATE: Property owner is a City resident: JITLY 17,1995 Property owner is a non-resident: AUGUST 14,1995 APPLICATION DEADLINE DATE: SEPTEMBER 1,1995 2. Flre a certified Rental Tax Equity Evaluator and schedule the inspeckion. 3. Send a notification letter to yow tenant. 4. Inspectioa 5. Make repairs. 6. Contact the evaivator and schedule the reinspection. 7. Send a notification letter to your tenant for the reinspection. 8. Fill out Program Survey. 9. Reinspection - give Program Survey to the evaluator. 10. Evatuator submits the final Evaluation Report (including the Progam Survey) to the Housing Information Office within five (5) business days of the reinspection. PROGRAM DEADLINE DATE: NOVEMBER 1,1995 Property Owner will receive a Certificate of Tax Credit in the mail. Tax credit will appear on the 1996 Property Tax Statement. If you have any questions, please call the Saint Paul Housing Information Office at 266-6000. ��- t � CITY OF SAINT PAUL PUBLIC HEALTH CODE ENFORCEMENT PROGRAMS TAX EQUITY PROGRAM INSPECTION GUIDELINES 6/95 This Guideline Manual is intende@ to serve as a guide for your inspections of one and two famiIy rentai structures which may qualify for a Certificate issued by the City of Saint Paul wluch will reduce the rate of the real estate taees from a non-homestead rate to a homestead rate for one yeaz. The purpose of this program is to offer an incentive to landlords to improve their tenant-occupied properry and provide affordable housing. It is not an enforcement program. Participation is voluntary. However, an owner can apply for no more than two tenant occupied properties. L,andlords who wish to participate must arrange an inspection with a certified evaluator and must notify the tenant in writing of the evaluation so that the tenant may be present. Priority will be given to those landlords who live in the City of Saint Paui. Townhouses, condominiums, vacant buildings and apartment units are not eligible to participate. As a cert�ed, independent Ta:t Equity Evaluator, you will be responsible for the accuracy of the inspection reports, prompt filing of the reports and the accompanying documents. A five-part form will be utilized for these evaluations and should be disseminated as follows: Page One - Original inspection report to Housing Information Office Page Two - Second inspection report to Housing Information Office Page Three - Tenant's copy; duplicate if necessary Page Four - Second inspection report to landlord Page Five - Original inspection report to landlord This program is a first come-first served basis. You are required to file the evaluation report within five (5) business days of each inspection at the: HOUSING INFORMATION OFFICE 21 W. FOURTH STREET (CITY I3ALL ANNE7� ST. PAUL. MIlVNESOTA 55102 It is the Evaluator's responsibility to file inspection reports within five (5) days. A filing fee of $25.00 must accompany the initiai inspecrion report only. If the report is not received within five (5) days of the date of the inspection, the filing fee wiIl increase to $50.00. After you have made the re'mspection and filed the reports, they will be reviewed by a Public Health Inspection Supervisor for accuracy, content and completeness. If your second evaluation shows regairs made and all categories as acceptable, and the accompanying fee and survey report have been received, the landlord will then become eligible for the credit (subject to other conditions}. G � --1--1 � The insp�tion report for this yeaz has been modified to reflect Legislative changes. In order for a property to qualify for the credit this year, r�airs must have been made to the properiy. The column on the right side of the form designates the difference between repairs and maintenance items. This will be discussed in detail at the uaining session. Additionally, at the training seminar all Evaluators will be assigned an identification number and a Certificate of Eligibility to conduct these evaluations. All reports must have the Evaluator's Identificarion number. As a certified Taac Equiry Evaluator you are required to note any life threatening defects or imminent hazards at these properties. Public Health staff will take immediate enforcement action on these pmperties only. Life safery defects include such things as: an unapproved sleeping room in a basement, hazardous electrical defects, improperly installed gas-fired appliances which create an immediate hazazd to the occupants, etc. If in doubt, you should contact Public Health at 292-7771. Truth-in-Sale of Housing Evaluators who conductthese inspections are required to possess a current Certificate of Competency, issued by the Truth-in-Sale of Housing Examining Boazd and must abide by ffie Rules, By-Laws and Code of Ethics established by the Board. In addition, licensed Evaluators must attend the training seminar presented by Public Health in order to be eligible to conduct Tas Equity Evalua6ons. Page 1 The following critetia is established as a Guide for your evaluations: EXTERIOR: i. Ownership Posted Determine that the ownership of the building is properly posted at a conspicuous locarion, readable from the outside of the building and that it contains the required information. 2, Doors Determine that all @oors are in sound condition, free of defects, and have proper locks (1" deadbolt locks on entry doors), fit properiy and are provided with storm/screen doors where appropriate. 3. Windows Determine that all windows are in sound condition, free of defects, have storm/screen windows as required, and if painted, have no paint defects, Check caulking and sealing. Open Porches, Stairs, etc. Determine that all porches, stairways, decks, walkways, etc., are in good condition, safely constructed, maintained and have proper guazdrails and handrails. 5. Roof Determine if the roof is visibly in sound condition, check the eaves, cornice, trim for deterioration. Check mof and eave vents, valleys and soffits for defects and deterioration. 6. Exterior Walls Determine if the exterior walls are in good condition, generally free of defects and not deteriorated. Painted surfaces must be in good condition. Determine that the foundation is properly bacl�'illed. Check for any uncapped sewer rain water connections. � �� Page 2 7. Gatage Determine if the garage is in good condition. Windows and doors should be operable and the building must be securable by normal means. The electrical wiring should be safe and properly grounded. Improper heating appliances are not allowed. The roof, trim and siding must be in sound condition. The garage cannot contain excessive junk, rubbish or gazbage. 8. Yazd Areas The yard 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 pazked on appropriate surfaces. Fences, gates, etc. must be maintained in good condition and there should be no hazards or eyesores in the yard. BASEMENT(CELLAR: 9. General Candition This area should be clean, dry and not contain excessive combustibles or junk. There should be no evidence of rodent or insect infestations. Basement floors which are accessible to tenants must be paved. 10. Stairs and Rails Determine that the basement stairs are safe and capable of supporting normal loads, and is protected with handrailslguardrails. 11. Foundation Determine that the foundation walls have no structural defects, are tuckpointed properly, are not damp or mildewed and not conducive to entry of rodents or insects. Basement windows and hatchways must be tight, clean and maintained. 12. First Floor, Floor System Determine that there is no rotted wood, cut-out joists, overspanning, or any evidence of structural fatiguelfailure. Check stair headers for proper/adequate ° support. Page 3 13. Beams and Columns Determine that the beams and columns have no structural defects and aze in good condirion. Check for decay and 'uvsect damage. Check for improper notching or other alterations that could adversely affect structural integrity. ELECTRICAL SERVICE: 14. Service Size Determine that the electrical service is acceptable for the demands placed on the system. 15. Electrical Service Determine if the installation 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 energized in a manner which complies with the National Electrical Code. Determine that there aze no ungrounded outIets or fixtures in the basement. PLUMBING SYSTEM: 17. Condition of Fixiures Determine if the sinks, tubs, toilets, etc., are clean, og�rable and installe@ properly. Check bathtub sidewalls and tub cauiking for water imperviousness. 18. Pipes A. Determine that the drain, waste and vent piging aze properly instalied and is free of leaks, defects and improper or makestuft repairs. B. Determine that the water piping system is properly installed, free of defects and provides adequate water pressure to all fiYtures. Check the water meter pit and cover for accessibility and cleanliness. Page 4 19. Gas Piping ��_�i� Detertnine that the gas piping has been properly installed and is adequately supported. Check for required lever handled shut-off valves and check any flexible, corrugated gas appliance connector pipes. 20. Water Aeater A. Determine if the water heater(s) is properly installed and vented. B. Determine if the water heater(s) are in good condition and adequate to provide hot water to all outlets at all times. HEATING SYSTEM: 21. A. Determine if the heating system is installed properly and safely. Check for required safety controls. B. Determine if a visible means of heat is provided to each habitable room and the bathrooms. C. Determine if the heating system controls are in good condition. 22. Venting Determine if the combustion venting is adequate, properly and safely installed and is free of deterioration or defects. LIVING AREAS: 23. General Condition Determine if the general condition of the living areas is clean, rodent and insect free and generally conducive to a healthy environment. 24. Walls, Ceilings and Floors Determine that there are no significant defects, water damage, or worn-out or deteriorated floor coverings. On duplex units, deternune that there is proper fire sepazation between ffie units. Page 5 25. Windows and Doors Determine if the windows and doors aze in good repair, funcuon properly, are weathertight, have all required locks and latches and fit and close properly. Check for rotted, broken or defecfive wood and defective painted snrfaces. 26. Stairs, Rails and Guardrails Determine if all stairs aze in sound condition, safe and that handrails and guardrails aze 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 AREA: 29. General Condirion If the attic is accessible by stairs, determine that there are no hazards or visible defects in the attic space. Check for excessive accumulafion of stored materials. �� Date: Tenant's name: Dear Tenant: In compliance with Minnesota Statute 609.605 regarding lawful entry, I am hereby giving you a 24 hour advance written notice of my intention to allow the inspection of your rental unit by a certified, independent Rental Tax Equity Evaluator. ADDRESS OF RENTAL LTNIT: DATE OF INSPECTION: TINIE OF IN SPECTION: This inspection is being done in order for me to enroll this property 3n the St. Paul Rental Tax Equity Program. You may be present during the inspection, if you so desue. FuRhermore, I am informing you that if I choose to participate in this program, your rent credit in 1997 may be reduced. Sincerely, Landlord �� 1995 TAX SQIIITY PROGRAM EVALIIATORS Bovee, Roger 653-5976 Clark, Kevin 457-3441 Shaller, Jeff 645-5387 Jerry Waldron 698-0847 Charles Blixt 688-6512/688-3581 Cheryll Brown 829-0044 Walter Carlson 457-9600 Dan Niezgocki 738-3764 Ray Hentsche7. 429-8685 Ron Staeheli 293-0100 Darwin Martinson 644-2041 Richard Olson 920-1360 Mark Felion 690-5463 Gary Hartman 699-3197 Harry Hoese 646-2550/680-0442 Joe Scheunemann 646-0009 Gill Borg 368-9488 Ed Parranto 738-6434/622-0258 Roger Hankey 829-0044 Vicki Scheunemann 646-0009 David Edholm 293-9537 Larry Riteck 774-2734 David Clapp 698-8617 Frederick Gerst 824-7444 Roger Pass 690-2122 Dennis Lash 729-6973 David Chapman 522-4220 Neil Schwartz 738-2694 Peter Dean 822-8000 Jeff Blixt 641-0641 Barry Eliason 639-0184/639-0182 Tom Morse 483-8194 Tom Lewis 69Q-900� � �_�l� RENTAL TAX EQUTTY; SAINT PAUL P7LOT PROJECT PROGRAMSURVEY 1995 A completed Program Survey is required for every property in order to receive the property tax credit through the Rental Ta�c Equity Program. While your individual responses aze confidential, the collective data w'sll be used to compile a report to the Mumesota State I.egislature on the effecriveness of this program. Please compiete this form after you have made repairs to yow property and give it to the Rental Taz� Equity Evatuator at your final inspection. USE A SEPARATE PROGRAM SURVEY FORM FOR EACH PROPERTY. Taxpayer Rental ProPeRy Single�family home Ward: Duplex 1. How many properties did you enroll in the program this year (1995)? One 2. Was this property enrolled in the Rental T� Equity Program in 1994? _ 3. How old do you estimate this property to be? 4. What is the assessed market value of this property? 5. How much did you pay for property taaces on this property last year? _ 6. How many bedrooms are in this property? If property is a duplex: 7. What is the rent per month for ttris property? If property is a duplex: Unit 1: Unit 1: 8. What repairs did you make to your property as a result of this program? 9. Approximately how much did you spend on repairs? Unit 2: Unit 2: Two 10. Would you haue made these repairs if you were not enrolled in tivs program? 11. As a result of doing these repairs, do you anticipate increasing the re� in the next six mornhs? 12. If you do plan to increase the rent in the next s'vs months, what would be the range of the increase per month? _ $1-$14 _ $15-$24 _ $25-$49 _ $50 or more 13. How many years fiave you owned this rental property? 14. Wlrich of the following do you feei aze baniers to ownership of rental property? Property taaces Maintenance costs Tenant behavior Housing laws (permiY requirements, zoning, registrarion, licensing, etc.) 15. How much did you pay the evaluator for the inspection? 16. Was the evaluator weIl trained? 17. Was the evaluator courteous and heipfui? 18. Were City staff persons you worked with courteous and helpful? 19. Did the implementation of Uus program scem efficient to you? 20. In your opinion, is tkus program a good idea? 21. If this program was offered again, would you participate? If no, why not? 22. Would you be wi]]ing Yo talk with the media or legislators about this program? COMMENTS: Please give this completed form to your Rental Tax Equity Evuluator. � �� APPENDIX C SURVEY DATA °i �� Ward 1 2 3 4 5 6 7 1995 PROGRAM SURVEY DATA Program surveys were obtained from the properiy owners of the 374 singie-family homes and duplexes that were certified under the Rental T� Equity Pilot Project. The 374 properties include a total of 594 rental units. The following is a compIlation of the data reported by the property owners. (Note: not all information was reported by every property owner, so totats may not equal 374. Percentages aze based on the total number of responses provided for each question and aze rounded to tYie nearest whole percent.) NUMBER OF SINGLE-FAMII,Y HOME5/DUPLEXES BY WARD: 1 � 3. � RENTAL TAX EQUITY; SAINT PAUL PII,OT PROJECT # of Single-Family Homes 21 12 27 24 21 23 26 # ofDu�lexes 39 29 20 32 31 29 40 Total 60 (16%) 41 (11%) 47 (12%) 56 (15%} 52 (14%) 52 (14%) 66 (18%) Totals: 154 (41%) 220 (59%) 374 Number of owners who enrolled 1 property in the program: 198 (53%) Number of owners who enrolled 2 properties in the program: 88 (47%) Number of properties enrolled in the program in 1994 and 1995: Number of properties enrolled in the program only in 1995: AGE OF STRUCTURES: 1- 33 Yrs. 34 - 66 Yrs. 67 - 99 Yrs. lOQ+ yrs. 45 (12%) 126 (34°!0) 159 (43°!0} 34 (11°to) ASSESSED 1vIARKET VALUE: $1 - $40.000 $41.000 - $80,000 $81.000 - $120,000 32 (9%) 231 (64%) 87'(24%) 27a (73%) 100 (27%) over $120.000 11 (3%) AVERAGE ASSESSEA MARKET VALUE: $64,451 Survey Data 5. AVERAGE NON-HOMESTEAD TAXES PAID IN 1995: $3,012 6. NUMBER OF BEDROOMS: SINGLE-FANIILY HOMES 1 Bdrm. 2 Bdrm. 3 Bdrm. 4 Bdrm. 5 Bdrm. 1 38 72 35 3 Ni7MBER OF BEDROOMS: DUPLEX UNITS 1 Bdrm. 2 Bdrm. 3 Bdrm. 4 Sdrm. 70 250 107 12 7. DISTRIBUTION OF RENTS: SINGLE-FAbIILY HOMES 1 BEDROOM $500-$599 1 6 Bdrm. 1 2 BEDROOMS (Average: $616) under$400 $400-$499 $500-$599 $600-$699 $700-$799 $800+ 0 2 14 15 6 1 3 BEDROOMS (Average: $733) $400-$499 $500-$599 $600-$699 $700-$799 $800-$899 $900-$999 $1000+ 3 4 25 16 16 1 4 4 BEDROOMS (Average: $854) $400-$499 $500-$599 $600-$699 $700-$799 $800-$899 $906-$999 $I100-$1199 $1200+ 1 2 5 14 4 1 1 7 5 BEDROOMS (Average: $875) 6 BEDROOMS $600-$699 $1200+ $700- 799 2 1 1 2 ��J`l� Survey Data DIS'I'RIBVTIQN OF RENTS: DUPLEX UNITS 1 BEDROOM (Average: $405) under$300 $300-$399 $400-$499 $500-$599 $600-$699 $700-$799 3 30 31 4 1 1 2 BEDROOMS (Average: $536) under$300 $300-$399 $400-$499 $500-$599 $600-$699 $700-$799 $800+ 3 13 66 108 44 11 5 3 BEDROOMS (Average: $661) under$300 $400-$499 $500-$599 $600-$699 $700-$799 $800-$899 $900- 999 $1000+ 4 2 16 46 24 9 2 4 4 BEDROOMS (Average: $598) under$400 $400-$499 $500-$599 $600-$699 $�00-$799 $800-$899 2 0 1 2 6 1 8. See Sample of Types of Repairs Made at the end of Survey Data. 9. COST OF REPAIRS: TOTAL COST OF REPAIRS FOR ALL PROPERTIES: $332,563 (Amount was reported on 360 properties.) AVERAGE COST OF REPAIRS PER PROPERTY: $924 DISTRIBUTION OF DOLLARS SPENT ON REPAIRS PER PROPERTY: $1-$250 $251-$500 $501- 750 $751-$1.000 $1 001-$1,500 109 (30%) 91 (25%) 55 (15%� 29 (8%) 30 ($%) $1_50]-$2.000 $2.001-$2.500 $2.501+ 9 (3%) 7 (2%) 30 (8%) 3 Survey Data 10. WOULD OWNERS HAVE MADE THESE REPAIlLS WITFIOUT THE PROGRAM? YES: 49 (13%) NO: 226 (61%) MAYBE: 20 (5%) SOA�: 77 (21%) t i. DO OWNERS ANTICIPATE RAISING THE RENT IN TFIE NEXT YEAR AS A RESULT OF MAKING REPAIRS UNDER THE RENTAL TAX EQUTTY PROGRAM? YES: 17 (4.5%) NO: 345 (95%) MAYBE: 3(.5%) 12. DIST`RIBITTION OF ANPICIPATED RENT INCREASES: $1 - $14 $15 - $24 $25 - $49 7 4 7 13. DISTRIBUTION OF THE NUMBER OF YEARS RE,NTAL PROPERTY HAS BEEN OWNED: 0- 5 YRS. 6- 10 YRS. 11 - 20 YRS. 21 + yRS_ 90 (25%) 123 (34%) 118 (33%) 31 (8%) 14. BARRIERS TO OWNERSHIP OF 1tENTAL PROPERTY: (Owners listed more than one barrier.) (1) PROPERTY TAXES: 356 (95%) (2) TENANT BEHAVIOR: 237 (63%) (3) MAINTENANCE COSTS: 177 (47%) (4) HOUSINGLAWS: 118 (31%) 15. COST OF HAVII�IG TI� EVALUATION DONE: $1 - $100 $101 - $150 $151 - $200 Over $200 38 (Zl%) 278 (79%) 32 (9%) 4 (1%) 16. WERE EVALUATORS WELL TRAINED? YES: 366 (100%) 17. WERE EVALUATORS COURTEOUS AND HELPFUL? YES: 366 (100%) NO: 0 (0%) NO: 0 (0%) 4 ��` `7� Siuvey Data 18. WERE CITY STAFF PERSONS COURTEOUS AND HELPFUL? I'ES: 363 (100%) NO: 0 (0%) 19. DID TI�. IMPLEMENTATION OF TFIIS PROGRAM SEEM BFFICIENT? YES: 348 (9$%} I3Q: 8 (2%) 20. IS THIS A GOOD PROGRAM? YES: 363 (100%) NO: 1 (0%) 21. IF THIS PROGRAM IS OFFERED AGAIN, WOULD YOU PARTICIPATE? 1VIAYBE: 3(1%) YES: 362 (99%) NO: 1(0%) 5 22. WOULD YOU BE WII,LING TO TALK WITH THE MEDIA OR LEGISLATORS? MAYBE: 16 (5%) YES: 2b0 (78°l0) NO: 56 (17%) ��-�� RENTAL TAX EQUITY; SAINT PAUL PILOT PROJECT SAMPLE OF TYPES OF REPAIRS MADE TO PROPERTIES (From the 1995 Program Surveys) FiYed railings, replaced broken glass panes, repaired screens. Replaced G.F.I. outlet, put in larger new vent in fumace room. Repaired baLhroom door, fised gates on fence, repaired e�erior siding, painted window frames. Repaired deck, repaired bathroom sink, ]attice work azound porch. Replaced rusty, leaky hot water pipe, replaced rusted vent pipe on furnace. Fixed windows and screens, fixed electrical. Installed steel flex on dryer and gas valve, installed G.F.I. in kitchen, replaced three windows. Smoke detectors, plumbing under kitchen sink. Handrail, wiring of fumace, fixed hot water heater. New roof, replaced tiles on bathroom wall, smoke alazm. Crrounded water meter, fixed loose plaster and repainted, fixed trap on sink. Gas lines, G.F.I., repaired windows. Storm door repaired, repaired wiring, repaired screens. Cold air return on fumace, window sash cords repiaced on ail windows. New ]ock on side door, repaired garage and light fvrture in basement, painted garage. New lighting fixture, capped gas line, four new locking systems, fixed window. Electrical, tile work, sheetrock, window and door repair. Replaced handrail, replaced garage roof, repaired garage door, installed discharge pipes. Fixed windows, screens, light fixtures, posted ownership. Pa9nting, screen repairs, ground fixtures, faucet repair, railings, relocated smoke alarms. 2 Capped gas pipe, replaced door locks and handles, replaced plumbing under sink, replaced fuse with collaz type fuse, replaced bathroom light. Replaced light fixture in basement, replaced leaking fiunace pump. Replaced bathroom outlets with G.F.I. outlets, replaced T fuses with S fuses, installed jumper over water meter, capped gas line to dryer, replaced single walI gas Iine to stove with double line, replaced valve pipes. Garage roo� electrical switches, handrails, plumbing repairs. Storm windows, painting, electrical outlets, foundation wall repairs, window screens, storm door. Smoke detector, plumbing, windows. New kitchen floor, deadboit locks, G.F.T. and piumbing repairs. Built stairwell railings and electrical. Patched walls, fiaced hall lights, repaired faucet, cleaned out basement floor drain, replaced two broken windows and a missing sash, installed elech plate. Garage door repair, dryer vent repair, light fixture replaced, debris removai. Lock repairs, window repairs, light fixture replacement. Replaced basement windows, repaired foundation wall, pinmbing repairs. Repaired gas line, installed handrail, repaired windows and screens. Repaued outlets, installed handrail, installed gutters. Repaired closet door, storm door, and light fixture. Front steps and platform, window/screen repairs, coal chute secured. Fixed chimney, foundation, gutters, and roof vents, replaced screens and glass. New siding on gazage, new windows to unit #2, ceiling repair, replaced gazage wiring, door jamb, broken window glass, repaired and painted basement walls. Replaced siding on garage, repaired front steps, repaired bedroom ceiling, cleaned heating/cooling vents, repaired Gght switches. Repaired steps, reptaced smoke detector, fixed kitchen sink drain, repaired electric. 3 Storm door, electrical, smoke detector, bath tub leaks. Window sash cords, outlet in basement, post owner's address. Locks, wall hole, sink leaks, smoke detector. C��`LI � � L Repaired electrical and gas hookups to dryer, repaired bath drain, new smoke detector, repaired window. Painting, railings, electrical repairs. Windows, electrical, joist and roof. Plumbing, screens, light fia garage door. Replaced part of the bathroom wall, replaced kitchen sink trap assembly, replaced bathtub drain plumbing, replaced smoke alarm. Re-roof and cover soffits on garage, reinstalled handrail to basement, added G.F.I: outlet in bath, repaired chimney vent in basement, repaired screen in reaz bedroom upstairs. New driveway and sidewalk, installed screens, replaced double cylinder deadbolt, caulking. Repaired plumbing leaks, screen door, handrail on front entrance, plugged gas line. Installed deadbolts, several handrails, and G.F.I. outlets in bathroom. Smoke detectors, light fistures, stairway hand railings. Repaired sidewalks, electrical in basement, e�terior and storm doors. Masonry repairs to foundation, repairs to deck, soffit, fascia, wallboard and windows, repaired smoke alarm, repaired firewall in basement. Fixed hand railings plumbing leak, gas pipe capped, replaced door handle, posted ownership. New smoke detector, capped holes in chimney, new light fixtures. Screwed water heater vent together and capped a gas line. Smoke detector, capped gas line, fixed fixmace, fixed vent register. Smoke detector, painted outside wood, fixed ceiling, water heater fixed. Fixed loose faucet, tub repair, window repair. 0 Electrical, weatherstripping door, corrected venting for heating, yazd work. Wiring, water heater, walls, windows, doors, smoke detectors. Painted exterior, repaired batt�room faucet, replaced siding and all porch spindles. In addition, fnced bad stair needing repair and made a brick patio with old bricks formerly in driveway. G.F.I. outlets in bathrooms, rails on steps, fuses, proper gas connection to dryer, smoke detector. Storm door repair, water heater, gazage roof, window sashes. Plumbing, electrical, replaced screen. Installed new bath surround, egress window, gutter repairs. New roof, new outside light, and electrical outlet in laundry room. Waste pipe leak, flash around chimney, gutters, screens. Railing to basement, handrail for deck, balusters for deck. Anchored cable at service panel, fi�zed Ioose outlets, secured light fiYture, grounded outlets, replaced broken sash cords and replaced broken window. Window repair, new lock. Paint and plumbing repair. Repaired steps, tuckpointed chimney, replaced outlets with G.F.I., installed new gas line and shut-offvaive on dryer. Repaired putty on windows, G.F.I. outlet, smoke detectors, added insulation. Changed fleaiible gas line and gas valve on dryer, installed new discharge pipe on relief valve on hot water heater, added insulation to attic. ��`�� n��l, r7.��7 ACKNOWLEDGMENTS l� l� ACKNOWLEDGMENTS The Rental Ta�c Equity; Saint Paui Pilot Project was a collaborative effort that included the following organizations, departments, and public officials. Minnesota State Legislature Saint Paul Mayor's Office Saint Paul City Council Saint Paul City Attomey's Office Saint Paul Housing Information Office Saint Paul Department of Public Health, Housing Code Enforcement Ramsey County Department of Property Records and Revenue Saint Paul City-Wide Information Systems Rental Taa� Equity Evaluators Saint Paul Area Association ofRealtors Saint Paul Association of Responsible Landlords Saint Paul Community Stabilization Project Saint Paul Tenants' Union q � - �-1 �., DEPA � ENT/OFPICE/COUNCIL DATE INRIATED O T Housing Znformation Office ��si96 GREEN SHEE N_ 30946 INffIAUDATE INITIAL/DATE CONTACT PEASON & PHONE � DEPRFiTMEM DIRECTOR Q CR1' CAUNQL Chris Lukesh ��x QcmnrroRNer �yI O CtTYCLERK NUYBEfi FON MUST BE ON CpUNGL AGENDA BY (DATE� g0�� Q BUDGET DIRECTOF � FIN. & MGT. SEFVICES DI0. 1/ 10 / 95 ORDER � MAVOR (OP ASSISTANn � TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS POR SIGNATURE) .,�ys.,6l��'�s ACTION AEQUESTED: Appxove the Rental Tax Equity; Saint Pau1 Pi1ot Project 1995 Report. �p,� �� 96 ��,-�'�� RECOMMENDATIONS: Apprwe (A) or Rejeet (a) p�SONAL SERVICE CONTRACTS lAUST ANSWER THE FOILOWING QUESTIONS: _ PLANNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has this person/Firtn ever worked untle� a contract for this departmen[? _ CIB COMMRTEE YES NO _ STAFF 2• Has this person/firm ever been a ciry employee? — YES NO _ DIS7FIC7 COUR7 _ 3. Does this person/firm possess a skill not normally possessed by any curtent ciry employee? SUPPORTSWHICHCOUNCILO&IECTIVE7 YES NO Explain all yes answers on separete sPeet end attech to green sheet INITIATING PROBLEM, ISSUE.OPPORTUNITYrN�o, What. When, W�ere, Why): The City of St. Paul participated in the Rental Tax Equity; Saint Paul Pilot Project in 1995 and is required to submit a report to the State Legislative by January 15, 199b. ADVANTAGES IFAPPROVED: � The City will meet program requirements. DISADVANTAGES IF APPFOVED. None OISADVANTAGES IF NOTAPPROVEP: The City of Saint Paul will not meet its obligation to the State Legislative. TOTAL AMOUNT OF TRANSACTION S COST/REVENUE BUDGE7ED (CIRCLE ONE) YES NO FUNDIHG SOURCE ACTIVITY NUMBEH 3O13� FINANCIAL INFORMATION: (EXPLAIN)