Grand Terrace Municipal Code Ch. 5.80 Non-Owner Occupied/Rental Property Program

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Editor's note— Ord. No. 261, § 2, adopted January 24, 2012, repealed and reenacted Chapter 5.80 in its entirety to read as herein set out. Formerly, chapter 5.80 pertained to similar subject matter and derived from Ord. No. 221, § 1, adopted 2006.

The purpose of this Chapter is to identify substandard non-owner occupied/rental property and to ensure rehabilitation or elimination of non-owner occupied/rental properties that do not meet minimum building and housing code standards, exterior maintenance standards or are not safe to occupy.

It is the intention of the City Council to establish a program whereby the exteriors of non-owner occupied/rental housing units can be inspected on a regular basis and certified as meeting minimum standards. The City endeavors to target its efforts to properties where violations exist and are a habitual condition of the property without unduly burdening responsible and prudent property owners.

(Ord. No. 261, § 2, 1-24-2012)

For purposes of this Chapter, the following terms, phrases and words shall have the meanings given herein. Unless otherwise expressly stated, words not defined herein shall be given their common and ordinary meaning.

"Apartment house" means any dwelling, which is designed, built, rented, leased, let or hired out for occupation, or which is occupied as the home residence of three or more families living independently of each other in dwelling units.

"Applicable codes and standards" means those minimum standards governing residential rental property as contained in the State Housing, Building Fire and Civil Codes.

"Approved" means performed in a manner and/or materials consistent with the California Building Code in effect at the time of construction or substantial renovation unless otherwise provided.

"Basement" means a story having a clear height of at least seven feet from finished floor to finished ceiling, the floor level of which is below finished grade but not less than four feet below the average finished grade, having floor and walls of approved construction.

"Code enforcement" means City personnel responsible for enforcement of applicable municipal and building codes and standards. Also referred to as "inspector."

"Habitually substandard" means rental property with code or standards violations that persist for six months or more after notice of violation has been given and where there has been no attempt to abate the problem.

"Inspection fee" means a fee set by the City to cover the cost of administering this program.

"Landscape" means areas defined as the general landscape area, rights-of-way and detention or pond areas.

"Maintenance standards" means standards, which govern the physical appearance and condition of both the exterior and interior areas of an apartment house.

"Non-owner occupied/rental property" means a residential dwelling wherein the owner/landlord gives to another the temporary possession and use of property in exchange for consideration and the latter agrees to return the property to the owner/landlord.

"Notification of inspection" means notice from the City to the property owner/agent that the City will be conducting an inspection.

"Occupant" means any person who occupies a unit, as a tenant or permittee of the owner, but not an owner-occupied unit.

"Owner" means any individual, partnership, corporation including the agent(s) of the owner who has title to a residential rental unit.

"Owner occupied" means a residential unit, which is occupied by the owner.

"Well-maintained properties" means properties with no existing violations of the Grand Terrace Municipal Code, California Housing Code, California Building Code, California Fire Code or the California Civil Code.

(Ord. No. 261, § 2, 1-24-2012)

The provisions of this Chapter shall apply to all existing non-owner occupied/rental property, including parking lots, driveways, landscaping, accessory structures, fences, walls, swimming pools, hot tubs and spas. Hotels, motels, mobile home parks, bed and breakfasts, and other similar occupancies are specifically excluded from the provisions of this Chapter.

Code Enforcement Officers will conduct the initial and subsequent inspections.

(Ord. No. 261, § 2, 1-24-2012)

A. Newly Constructed Buildings. Newly constructed buildings shall be exempt from this Chapter for a period of one year. The exemption period shall begin on the date a certificate of occupancy is issued.

B. Condominiums. Condominium units of which the ownership consists of the interior only, shall be exempt from this Chapter.

(Ord. No. 261, § 2, 1-24-2012)

Property owners with buildings subject to inspection shall pay a fee in the amount set forth in the resolution establishing fees and charges for various municipal services, up to a maximum of $10,000.00 per property. The fee will be used to finance the cost of inspection and enforcement of this program. Should the property owner fail to pay the required fee, the City will recover it, plus accrued interest and penalties, utilizing any remedies provided by law including nuisance abatement or municipal tax lien procedures established by ordinance or State law.

A. Good Landlord/Tenant Program. Well-maintained properties that have passed inspections for three consecutive years may qualify to participate in the good landlord/tenant program. For qualifying participants, the property owner will pay an annual inspection fee that is one-half of the City inspection program's annual fee, provided conditions do not deteriorate to the point where the property would no longer meet eligibility standards for program participation. Well-maintained properties that have passed inspections for four consecutive years will pay an annual inspection fee of 30 percent of the City inspection program's annual fee. For properties eligible under the program, a drive-by inspection will be conducted to ensure satisfactory maintenance.

B. Any property that participates in the good landlord/tenant program may be removed from the program at any time if it fails to meet any or all of the interior and exterior standards described in this hapter. If a property is removed from the Good Landlord/Tenant Program, the annual fee will be increased to the next highest fee percentage. If the property is still not eligible for the Good Landlord/Tenant Program after the second year, the annual fee will be the full amount.

C. On the 11th year of participation, whether in the Good Landlord/Tenant Program or not, the participating property shall revert to first year status and undergo a complete inspection as specified in Sections 5.80.080 and 5.08.090 of this Chapter.

D. At all times, the City shall retain the authority to investigate and address any violation of the Municipal Code, California Housing Code, California Building Code, California Fire Code or the California Code or Regulations.

(Ord. No. 286, § 1, 11-24-2015; Ord. No. 261, § 2, 1-24-2012)

The City shall maintain on its website an educational page entitled, "How to Pass Your Inspection." Annually, each property owner will receive an invitation to visit the web page.

The property owner and/or property managers shall be provided an explanation of what to expect during their inspections that will allow them to objectively assess their own property. The educational information will familiarize property owners, and property managers, with the basic procedures of an inspection, what is considered a violation, and what is considered compliance with the Municipal Code, California Housing Code, California Building Code, California Fire Code and the California Civil Code.

(Ord. No. 286, § 2, 11-24-2015; Ord. No. 261, § 2, 1-24-2012)

A. Inspections—Conformance with Standards.

1. A City Code Enforcement Officer shall conduct an annual exterior inspection of all non-owner occupied/rental properties located within the City. If at the time of the exterior inspection violations are found or other probable cause is present to believe there may be violations within the interior of the property, the inspecting officer may request that an interior inspection be completed. In the event a tenant in possession of a property to be inspected refuses access to said property, the City Attorney is authorized to obtain from a court of competent jurisdiction any warrant necessary based on just cause, to conduct the inspection.

2. Buildings shall be maintained in accordance with the code standard that was in effect at the time the building was constructed, and any additional requirements mandated by the Municipal Code or State Law.

B. Noncomplying Structures. Structures and premises that do not comply with the provisions of this code and the codes listed above must be altered or repaired to obtain the required level of compliance or demolished.

(Ord. No. 261, § 2, 1-24-2012)

In addition to the California Model Building Codes and City of Grand Terrace Municipal Code, and California Health and Safety Code, residential non-owner occupied/rental buildings shall meet the following exterior building maintenance standards:

A. Buildings, or portions thereof, shall have exterior walls that are weather tight, or watertight, and kept free of deterioration, holes, breaks, or loose boards or coverings. Roof surfaces shall be watertight and not have any defects that will allow water to enter into the structure.

B. The exterior finish of all structures shall be maintained. If the exterior finish of a structure is paint or stain, the structure shall be painted or stained prior to a time when the exterior finish has substantially deteriorated.

C. All architectural projections such as cornices, moldings, lintels, sills and similar projections shall be maintained in good repair and free of defects.

D. All chimneys, antennas, vents, gutters and downspouts and similar projections or building accessories shall be structurally sound and in good repair. Such projections shall be properly secured, when applicable, to an exterior wall or roof.

E. Windows shall be weather tight, free from loose and broken glass and cracks that could cause physical injury or allow the elements to enter the structure. Exterior doors shall be maintained weather tight, water tight and rodent proof. Exterior doors of rental dwelling units shall be solid core or equivalent and be provided with an inside thumb-turn deadbolt-locking device that tightly secures the main entry door.

F. All structures and exterior property shall be maintained free of rodent, insect or vermin infestation, which creates an unsafe or unsanitary environment on the subject, or adjacent buildings or properties.

G. All accessory structures shall be maintained in a state of good repair or removed from the site. Such structures shall include, but not be limited to, clubhouses, offices, maintenance buildings, carports, retaining walls, fences, garages, swimming pools, spas, hot tubs, and miscellaneous sheds or structures.

(Ord. No. 261, § 2, 1-24-2012)

In addition to the California Model Building Codes and City of Grand Terrace Municipal Code and Health and Safety Code, residential non-owner occupied/rental buildings shall meet the following exterior site maintenance standards:

A. There shall be no accumulation of weeds, vegetation, junk (to include, but not be limited to, abandoned, unused or nonoperational appliances, equipment, vehicles, machinery, or household furnishings), dead organic matter (including lawns), debris, garbage, stagnant water, combustible materials or similar materials or conditions.

B. All parking areas shall be improved with an impervious surface and kept free of potholes, cracks or other deterioration. All striping and signage, including parking signage and fire lane or access signage, shall be maintained in good condition and clearly legible.

C. All landscape and hardscape areas shall be maintained so as not to constitute a public nuisance.

D. Refuse enclosures shall be installed and maintained at multi-family properties. Oversized trash that will not fit within the refuse enclosure shall be removed from the property.

(Ord. No. 261, § 2, 1-24-2012)

In addition to the California Model Building Codes and Health and Safety Code, residential non-owner occupied/rental buildings shall meet the following interior maintenance standards as defined in California Code of Regulations (CCR) Title 25 definition of a "habitable" rental unit:

A. Plumbing facilities in good working order, including hot and cold running water, connected to a sewage disposal system;

B. Gas facilities in good working order;

C. Heating facilities in good working order;

D. An electric system, including lighting, wiring, and equipment, in good working order;

E. Clean and sanitary buildings, grounds, and appurtenances (detached garage, garden, etc.) free from debris, garbage, rodents, and vermin;

F. Adequate trash receptacles in good repair;

G. Floors, stairways, and railings in good repair;

H. A working toilet, wash basin, and bathtub or shower;

I. A kitchen with a sink not made of absorbent material.

J. Natural light in every room through windows or skylights. Windows in each room must be able to open at least halfway for ventilation, unless a fan provides mechanical ventilation;

K. Safe fire or emergency exits leading to a street or hallway. Stairs, hallways, and exits must be kept litter-free. Storage areas, garages, and basements must be kept free of combustible materials;

L. Operable thumb-turn deadbolt locks on the interior of the main entry doors of rental units, and operable locking or security devices on windows; and

M. Working smoke detectors in all units of multi-unit buildings, such as duplexes and apartment complexes. Apartment complexes also must have smoke detectors in common stairwells. Effective July 1, 2011, the Carbon Monoxide Poisoning Prevention Act (Senate Bill — SB 183) requires all single-family homes with an attached garage or a fossil fuel source to install carbon monoxide alarms within the home by July 1, 2011. Owners of multi-family leased or rental dwellings, such as apartment buildings, have until January 1, 2013 to comply with the law.

(Ord. No. 261, § 2, 1-24-2012)

A. The exterior of the property will be inspected within the first three to six months of each calendar year. The property owner or property manager may request a scheduled inspection. For properties of 16 units or more, the inspector will contact the property owner or property manager to set an appointment for the inspection.

B. If probable cause is observed to warrant an interior inspection, a letter of intent to inspect the property shall be mailed to the property owner stating an approximate date and time of inspection.

C. It shall be the responsibility of the property owner to notify any individual tenants of an interior inspection.

D. At the invitation of the tenant in possession of the property, City Code Enforcement Officers may enter the property for scheduled or unscheduled inspection.

(Ord. No. 261, § 2, 1-24-2012)

Upon completion of the property inspection, the inspector shall send a written report of inspection, via regular mail, to the property owner. The report of inspection shall contain an itemization of the violation(s) and set period of time for correction ranging from 24 hours to up to 60 days.

(Ord. No. 261, § 2, 1-24-2012)

Upon inspection, the inspector may instruct the owner of the facility to perform work, take action, or refrain from action to ensure compliance with applicable codes. If the inspector discovers upon reinspection that the work, action, or inaction requested was not performed, the property owner shall be charged a reinspection fee to the extent set forth in the resolution establishing fees and charges for various municipal services. Should the property owner fail to pay the required fee, the City will recover the amount of the fee plus accrued interest and penalties utilizing any remedies provided by law including nuisance abatement or municipal tax lien procedures established by ordinance or State law.

(Ord. No. 261, § 2, 1-24-2012)

A. Notice of Violation. Whenever the inspector determines that a violation of this Chapter exists, the inspector shall give notice of violation and an order to correct to the property owner. The notice shall be in writing, sent via both mail and certified mail, and shall describe the violation in sufficient detail so that a reasonable owner would understand the violation(s) and have the opportunity to correct said violation(s).

B. Time for Correction. The notice shall provide a reasonable time for correction, ranging from 24 hours to up to 90 days from the date of the notice of violation mailing, depending upon the severity of the violation. The owner may request an extension of time. The extension may be granted if the inspector determines that substantial progress is being made to correct the violation.

C. Building Permits Required. Building permits for the correction of violations shall be issued, as required by the California Building Code, through the City Building and Safety/Public Works Department.

D. Reinspections. Reinspections will be conducted to verify that the violations identified on the initial inspection have been corrected. Any violations that were not noted on the initial inspection report, but are discovered on the reinspection due to subsequent damage or deterioration, shall be subject to correction.

(Ord. No. 261, § 2, 1-24-2012)

Each violation that continues after the set date of correction with no attempt to abate the violation shall be subject to a $100.00 fine, $200.00 for the second citation, and $500.00 for the third and subsequent citations per violation.

The failure of any property owner to pay fines assessed by administrative citation, within the specified time, will result in the City's pursuit of all legal remedies available to recover amount of the fine, penalties, and associated costs.

Further, the City intends to utilize the provisions of California Revenue and Taxation Code Sections 17274 and 24436.5 to encourage the elimination of substandard conditions in non-owner occupied/rental property. Said section provides for the disallowance of State income tax interest, depreciation, taxes, or amortization deductions that are derived from the ownership of rental housing that is not in compliance. The City is also authorized to use the remedies set forth in the California Building Code and the California Code of Regulations.

If after the City has pursued all available options under the law and the property still has not been brought into full compliance with applicable codes and standards, the City will use reasonable means to abate the nuisance and seek recovery from the property owner. Such steps shall be taken no later than 12 months after the initial violation is found. In extreme cases recovery may include the use of civil actions, specifically receivership proceedings.

(Ord. No. 261, § 2, 1-24-2012)

The City may petition the Superior Court for the appointment of a receiver over a substandard property if the property owner has failed to comply with the terms of a notice or order to repair issued by the City.

The petition seeks to authorize the receiver to rehabilitate the property, borrow funds as necessary to pay for the rehabilitation and other receivership costs, and secure any incurred debt with a recorded super-priority lien on the property.

The petition seeks a preliminary injunction that would order the property owner and other interested parties to immediately turn over possession of the property to the receiver, prohibit the owner and other interested parties from collecting income from the property, interfering with the receiver, or encumbering the property during the receivership.

The petition seeks to prohibit existing mortgages from undertaking foreclosure proceedings against the property during the receivership.

(Ord. No. 261, § 2, 1-24-2012)

Any person desiring to appeal a determination of the inspector may appeal in writing and submit an advance deposit of the fine or fee to the City Clerk's office, 22795 Barton Road, Grand Terrace, CA 92313 within 15 days from the date the citation or reinspection fee was issued. An appeal will result in an administrative hearing. The determination of the administrative hearing officer shall be final.

(Ord. No. 261, § 2, 1-24-2012)