ORDINANCE CITY OF NEW ORLEANS CITY HALL: December 15, 2016 CALENDAR NO. 31,686 NO. __________________ MAYOR COUNCIL SERIES BY: COUNCILMEMBERS CANTRELL AND WILLIAMS (BY REQUEST) AN ORDINANCE to ordain Article XI of Chapter 26 of the Code of the City of New Orleans, to establish a rental registry program, requiring the registration of rental housing property, and inspections, enforcement, fees, penalties and appeals relative thereto; and to provide otherwise with respect thereto. 1 SECTION 1. THE COUNCIL OF THE CITY OF NEW ORLEANS HEREBY 2 ORDAINS, That Article XI of Chapter 26 of the Code of the City of New Orleans, be and 3 the same is hereby ordained to read as follows: 4 “ARTICLE XI – RENTAL REGISTRY PROGRAM 5 Sec. 26-613. - Title. 6 This Article shall be known as the Rental Registry Program. 7 Sec 26-614. – Purpose and Scope. 8 The purpose of this Article is to establish a registration requirement for owners of Rental 9 Housing Units to protect the health, safety and welfare of the public insofar as they are 10 affected by the maintenance of said Units and the occupancy thereof. The purpose shall be 11 accomplished by requiring Rental Housing Units to be registered, inspected, and properly 12 maintained; and that substandard conditions be identified and corrected. This Article shall 13 be construed to secure this express intent. 14 Sec 26-615. – Definitions. 15 Department – The Division of Code Enforcement or its designee. 16 Director means the Director of the Division of Code Enforcement or the Director’s 17 designee. 18 Housing Unit means any structure or part of a structure that is used or may be used 19 by one or more persons as a home, residence, dwelling or sleeping place (residential 20 purposes); this includes but is not limited to: single-family housing units, duplexes, 21 triplexes and four-plexes; multi-family units, apartment units, condominium units, 22 rooming-houses, guest-houses, dwellings in accessory structures; and any other structure 23 having similar accommodations, with a duration of occupancy greater than 30 consecutive 24 days. 25 26 27 28 29 Owner is the person(s) holding the rights of ownership as defined by Civil Code Article 477 relative to a Rental Housing Unit. Rental Housing Unit means a housing unit that is or will be occupied by a tenant for residential purposes, in exchange for any form of consideration. Tenant means a person occupying or in possession of a Rental Housing Unit, 30 pursuant to a written or oral agreement. 31 Sec 26-616. – Applicability. 32 (a) The registration and inspection provisions of this Article shall apply to all Rental 33 Housing Units with the exception of: 34 35 (1) Rental Housing Units in hotels, motels, bed and breakfasts, hostels, Short Term Rentals, or RV parks; 2 36 37 38 (2) Rental Housing Units in any state licensed hospital, hospice, community- care facility, intermediate-care facility, or nursing home; (3) Rental Housing Units owned, managed, or operated by an educational or 39 medical institution, or by a third party for any of the above institutions, when units are 40 used for the sole use of employees, students, patients or others directly related to the 41 institution; 42 (4) An individual housing unit that is owner-occupied. 43 (b) The inspection provisions of this Article shall apply to all Rental Housing Units with 44 the exception of: 45 Rental Housing Units that a government entity or housing authority owns, operates or 46 manages; or units that receive funding or subsidies from federal, state, or local 47 government, only if the Rental Housing Units are subject to similar federal, state, or local 48 inspections; and 49 Sec 26-617. – Administration. 50 The Division of Code Enforcement, or its designee, shall be the agency responsible for the 51 administration and enforcement of this Article. 52 Sec 26-618. – Registration Requirement. 53 (a) With the exception of properties provided in Sec. 26-216, owners, or their 54 authorized agents, shall begin registering all Rental Housing Units with the 55 Department on January 1, 2018, according to the following schedule: 56 57 a. All properties with ten or more Rental Housing Units shall register by March 31, 2018. 3 58 59 60 61 b. All properties with five to nine Rental Housing Units shall register by August 31, 2018. c. All properties with one to four Rental Housing Units shall register by December 31, 2018. 62 (b) After the applicable registration deadline, it shall be a violation of this Article for 63 any person to permit occupancy of a Rental Housing Unit by a tenant without 64 registering the Rental Housing Unit with the Department. 65 (c) Every application for rental registration shall be filed on a form approved by the 66 Director of the Department, and shall contain the following: 67 (1) The address(es) for each Rental Housing Unit, which shall include the street 68 name, number(s), unit numbers, and zip code, including the number of units 69 and bedrooms therein, located on the residential property. Each individual 70 Rental Housing Unit shall be registered separately, but if an owner owns more 71 than one Rental Housing Unit on a single lot of record, the owner may submit 72 one registration application for all units owned thereon. 73 (2) The name, business address, personal address, telephone number and e-mail 74 address of the owner(s). The address(es) required shall not be a public or 75 private post office box or similar address. 76 a. If the property is owned by multiple natural persons, then the required 77 information shall be that of one person who has legal authority to 78 manage the property. 4 79 b. If the property is owned by a juridical entity, then the required 80 information shall be that of a registered agent or other duly authorized 81 legal representative who has authority to act on behalf of the entity. 82 (3) The name, address, email address and telephone number of the person the 83 tenant is to contact (Tenant Contact) when requesting repairs to their Rental 84 Housing Unit, if different than the owner. The required Tenant Contact’s 85 address shall not be a public or private post office box or similar address. 86 (d) Upon Department’s receipt of a completed rental registry application, the Rental 87 Housing Unit shall be entered into the publicly accessible database required by Sec. 88 26-632. 89 Sec. 26-619. Registration Renewal. 90 The registration of Rental Housing Units shall expire one year from the date of receipt of a 91 completed application by the Department, or renewal thereof. A registration renewal 92 application and the renewal fee shall be submitted at least 30 days before the current 93 registration expires. All information required by Sec. 26-618 shall be updated within 30 94 days of any changes, except as provided in Section 26-620. 95 Sec. 26-620. Registration, Change of Ownership. 96 Any person that acquires ownership of a Rental Housing Unit shall register the Rental 97 Housing Unit as required by Sec. 26-618 within 90 days of acquiring said Unit. 98 Sec 26-621. – Inspection Required. 5 99 (a) The Department shall provide the Owner(s) written acknowledgement of the receipt 100 of a completed application for rental registration. Thereafter, the Department shall 101 notify the Owner(s) of an inspection date as provided in Sec. 26-623. 102 103 (b) The Department shall inspect registered Rental Housing Units for compliance with the Rental Standards in Sec. 26-632. 104 (c) If there are 5 or more Rental Housing Units on a single residential housing 105 property, unit inspections shall be conducted at the discretion of the Department as 106 follows: 107 108 a. 1-4 units – 100% of units inspected with the exception of an owneroccupied unit 109 b. 5-29 units – at least 50% of units inspected; 110 c. 30-49 units – at least 20% of units inspected; 111 d. 50 or more units – at least15% of units inspected. 112 Failure of any Rental Housing Unit to pass inspection may require inspection of all Rental 113 Housing Units on a single residential housing property. 114 (d) The owner, or a person who has legal authority to act on their behalf, shall be 115 present at the Rental Housing Unit at the time of inspection to ensure that the unit 116 is available for inspection. The time of the inspection shall be indicated in the 117 notice issued pursuant to Sec. 26-623, or the time that the inspection was properly 118 re-scheduled in accordance with Sec. 26-624. Violation of this subsection may 119 result in the imposition of a re-scheduling fee. 120 Sec. 26-622. Periodic Re-inspection of Rental Housing Units. 6 121 Periodic re-inspection of Rental Housing Units for compliance with the Rental Standards 122 in Sec. 26-632 shall take place as follows: 123 124 125 126 (a) Properties that passed initial inspection, three years from the anniversary of the initial inspection; (b) Properties that failed the initial inspection, two years from the anniversary of the initial inspection; 127 (c) Properties that fail two consecutive inspections, every 6 months for the first year 128 and annually for the following three years from the anniversary of the date of the 129 first passed inspection. 130 Sec. 26-623. Inspection Notice. 131 Within 60 days of providing the owner the written acknowledgement of a completed rental 132 registration application, as required by Sec. 26-621, the Department shall provide written 133 notification of the date and time of the inspection conducted pursuant to this Article at least 134 14 calendar days prior to the date of the inspection. 135 (a) Notice shall be mailed to the address(s) of the owner(s) provided in Sec. 26-618 136 (c)(2), and the address of the Tenant Contact provided in Sec. 26-618 (c)(3), if 137 different than the owner. 138 (b) The Department shall also mail a copy of the inspection notice to the address of the 139 Rental Housing Unit as provided in Sec. 26-618 (c)(1), to notify the tenant(s), if 140 any, of the inspection. 141 142 (c) The Department shall enclose a copy of the standards set forth in Sec. 26-632 to all mailings required by this section. 7 143 Sec. 26-624. Rescheduling Inspection. 144 An owner may reschedule an inspection by giving written notice to the Department at least 145 seven calendar days prior to the scheduled inspection date. The rescheduled inspection 146 shall be within 21 days of the previously scheduled inspection date. Rescheduling an 147 inspection more than once, or with less than seven calendar days’ notice, may result in the 148 imposition of a re-scheduling fee. 149 Sec. 26-625. Failure to Inspect. 150 It shall be a violation of this Article for any owner to fail to fulfill the inspection 151 requirement of Sec. 26-621. 152 Sec. 26-626. Entry. 153 It shall be the responsibility of the owner to obtain consent of the tenant to inspect the 154 Rental Housing Unit or otherwise obtain legal access pursuant to the terms of the 155 applicable lease or law. 156 Sec. 26-627. Satisfactory Inspection – Certificate of Compliance. 157 158 (a) Upon completion of a satisfactory inspection conducted pursuant to this Article, the Department shall provide the owner a Certificate of Compliance. 159 (b) An owner shall post a copy of the Certificate of Compliance at the Rental Housing 160 Unit, in the business office of the property, in a common area, or another 161 conspicuous place accessible to the tenant(s). 162 (c) After initial satisfactory inspection, the Certificate of Compliance shall be valid for 163 three years from the date of inspection, unless the Department determines that the 164 Rental Housing Unit no longer meets the standards required in this Article. 8 165 Sec. 26-628. Unsatisfactory Inspection. 166 (a) After inspection, if the Rental Housing Unit fails to comply with the provisions of 167 Sec 26-632, the Department shall notify the owner in writing of the deficiencies 168 within ten (10) business days of the inspection. The owner/operator shall be given 169 30 days from the date of the notice to schedule a second inspection. 170 inspection has not been scheduled within that time, the property shall be listed as 171 being out-of-compliance on the Rental Registry Database, required by Sec. 26-632, 172 and remain out-of-compliance until a satisfactory inspection is received. If an 173 (b) Once a satisfactory inspection is obtained after the initial unsatisfactory inspection, 174 the Certificate of Compliance shall be valid for two years from the date of 175 satisfactory inspection, unless the Department determines that the Rental Housing 176 Unit no longer meets the standards required in this Article. 177 178 (c) A Rental Housing Unit failing two consecutive inspections shall be issued a Certificate of Compliance as follows: 179 If the Rental Housing Unit obtains a satisfactory inspection upon the third inspection, the 180 Certificate of Compliance shall be valid for six months and the Rental Housing Unit shall 181 be inspected in six month intervals for one year. Thereafter, if the Rental Housing Unit 182 obtains three consecutive satisfactory inspections, the Certificate of Compliance shall be 183 valid for one year from the date of the satisfactory inspection, unless the Department 184 determines that the Rental Housing Unit no longer meets the standards required in this 185 Article. 186 Sec. 26-629. Additional Violations. 9 187 (a) It shall be a violation of this Article for any person to permit occupancy of a Rental 188 Housing Unit by a tenant when the unit has not obtained a Certificate of 189 Compliance. 190 Sec. 26-630. Certificate of Compliance - Rescission. 191 (a) The City, at its discretion, may rescind the Certificate of Compliance and deem a 192 Rental Housing Unit out-of-compliance upon a finding that the unit no longer 193 complies with the standards contained herein. 194 (b) Any tenant may report potential violations of this Article by contacting the 195 Department and requesting an inspection of their Rental Housing Unit to ensure 196 compliance with the standards contained herein. 197 (c) Tenants shall have the right to pursue protected activity pursuant to this Article 198 without fear of retaliation. For purposes of this Article, “protected activity” 199 includes: 200 1) 201 Article; 202 2) 203 this Article; 204 3) 205 of this Article; or 206 4) 207 violation of this Article. Notifying the lessor or his agent of any violation of any provision of this Requesting corrective action reasonably calculated to redress any violation of Notifying regulatory authorities or the members of the public of any violation Providing testimony in court or administrative proceedings relative to any 208 (d) Prohibited acts of retaliation include but are not limited to unlawful termination of 209 a lease, decreasing services, bringing or threatening to bring a lawsuit against a 10 210 tenant for possession, or refusing to renew a lease, where such acts are motivated 211 by the good-faith exercise of protected activity. 212 (e) Tenants shall have the right to raise protected activity under this Article as a 213 defense to any retaliatory action for possession or eviction. 214 Sec. 26-631. Certificate of Compliance - Effect of Denial or Rescission. 215 (a) Vacant units. When a rental dwelling unit certificate of compliance has been 216 denied or rescinded, no further rental and occupancy of Rental Housing Units then 217 vacant shall be permitted until a certificate of compliance has been issued. Notice 218 shall be mailed to the address(s) of the owner(s) provided in Sec. 26-618 (c)(2), and 219 the address of the Tenant Contact provided in Sec. 26-618 (c)(3), if different than 220 the owner. 221 (b) Occupied units. In addition to other penalties under this chapter, when a Rental 222 Housing Unit certificate of compliance has been denied or rescinded, the Rental 223 Housing Units containing such violations shall be vacated after the Director 224 provides notice to the owner and the occupants of the Rental Housing Units 225 containing said violations. Such notice shall direct the owner and occupants of the 226 Rental Housing Units containing such violations to vacate within a period of time 227 as determined by the Director and may provide a reasonable period for the owner or 228 occupants an opportunity to correct such violations. Notice shall be mailed to the 229 address(s) of the owner(s) provided in Sec. 26-618 (c)(2), the address of the Tenant 11 230 Contact provided in Sec. 26-618 (c)(3), if different than the owner, and to the 231 address of the Rental Housing Unit as provided in Sec. 26-618 (c)(1). 232 (c) Occupied units; immediate hazard. In addition to other penalties under this 233 chapter, when a certificate of compliance has been denied or revoked for reasons 234 which, in the determination of the Director, present violations of the housing code 235 that create an immediate hazard to the health and safety of the occupants, the 236 dwelling units containing such violations shall be vacated within 30 days of such 237 determination. The Director’s determination shall be in writing and shall direct the 238 owner and occupants of the dwelling units containing such violations to vacate the 239 premises within a period of time not to exceed 30 days, as determined by the 240 Director. Notice shall be mailed to the address(s) of the owner(s) provided in Sec. 241 26-618 (c)(2), the address of the Tenant Contact provided in Sec. 26-618 (c)(3), if 242 different than the owner, and to the address of the Rental Housing Unit as provided 243 in Sec. 26-618 (c)(1). 244 Sec. 26-632. Rental Standards. 245 All Residential Rental Unit(s) shall comply with the following standards: 246 247 1. All Residential Rental Units shall have an operable fire and smoke detection system and alarm. 248 249 2. All plumbing fixtures shall be properly connected to the public sewer system or to an approved private system if the public system is not available. 250 251 252 3. Every Residential Rental Unit shall contain a bathtub or shower, lavatory, a flushtype water closet and a kitchen sink, which shall be maintained in a sanitary and good working condition. 12 253 254 4. All kitchen sinks, lavatories, bathtubs and showers shall be supplied with hot and cold running water. 255 256 257 258 5. Water heating facilities shall be properly installed and maintained, and capable of providing an adequate amount of water to be drawn at every required sink, lavatory, bathtub, and shower at a minimum temperature of 110 degrees Fahrenheit. 259 260 261 262 6. Every Residential Rental Unit shall be provided with heating facilities reasonably capable of maintaining a minimum room temperature of 68 degrees Fahrenheit in all habitable rooms, bathrooms and toilet rooms. Cooking appliances shall not be used to provide space heating to meet the requirements of this section. 263 264 265 7. A Residential Rental Unit shall be provided with a properly installed and maintained electrical system, which shall be in a safe working condition and capable of performing its intended function. 266 267 268 8. All mechanical appliances, fireplaces, solid-fuel-burning appliances and cooking appliances shall be properly installed and maintained in a safe working condition, and shall be capable of performing the intended function. 269 270 271 272 9. Roofs, windows, and exterior doors must be adequate to prevent dampness or deterioration in the walls or interior portions of the Residential Rental Unit. No evidence of mold shall be present. The roof and flashing shall be sound, tight and not have defects that admit rain. 273 274 275 10. All interior surfaces shall be maintained in a good, clean and sanitary condition. Significant cracking, decaying or other defective surface conditions shall be corrected. Holes in interior walls and floors shall be sealed as necessary. 276 277 11. The Residential Rental Unit and its exterior property shall be kept free from rodent harborage and infestation. 278 Sec. 26-633. Registration Database. 279 The City shall maintain a publicly accessible database that provides: 280 a. The address of the registered Rental Housing Unit; 281 b. The inspection status, including if an inspection is pending, and the result of 282 283 the inspection; c. Date Certificate of Compliance received; 13 284 d. If the Rental Housing Unit is deemed in-compliance or out-of-compliance with the provisions of this Article; and 285 286 e. Violations of Sec. 26-632 that were cited at the property, if applicable. 287 Sec. 26-634. Nonexclusivity. 288 Nothing contained herein shall prohibit, condition, or otherwise limit any inspection 289 conducted pursuant to any other provision of this Code or other applicable law. 290 Sec. 26-635. – Fees. 291 Initial Rental Registration Fee $60.00 292 Inspection Fee, per unit $30.00 – 10 + units 293 $40.00 – 5-9 units 294 $50.00 – 1-4 units 295 Re-inspection Fee $25.00 296 (Including any additional inspection(s)) 297 Annual Renewal Registration Fee 298 Failure to Attend Scheduled Inspection Fee $15.00 299 Registration Reinstatement Fee $40.00 $50.00 300 Sec. 26-636. Certificate of Compliance Appeals. 301 Any owner denied a Certificate of Compliance after an unsatisfactory inspection may 302 appeal the determination in writing to the Department, requesting a hearing before an 303 administrative hearing officer. 304 Sec. 26-637. Enforcement and penalties 14 305 Failure to comply with any provision of this Article shall be deemed a housing violation 306 subject to enforcement, penalty and lien as provided for in the applicable provisions of 307 Chapter 6, Article II of the Code of the City of New Orleans. Nothing contained herein 308 shall limit the City from seeking any equitable remedy available by law.” ADOPTED BY THE COUNCIL OF THE CITY OF NEW ORLEANS ____________ ____________________________________________ PRESIDENT OF THE COUNCIL DELIVERED TO THE MAYOR ON __________________ APPROVED: DISAPPROVED: ____________________ ____________________________________________ MAYOR RETURNED BY THE MAYOR ON __________________ AT __________________ ____________________________________________ CLERK OF COUNCIL ROLL CALL VOTE: YEAS: NAYS: ABSENT: RECUSED: 15