Merced housing inspection proposal is too broad, too costly, too punitive
On Monday, Aug. 2, the Merced City Council will consider approving an ordinance to require inspection of all rental housing with significant impacts to tenants and landlords.
The ordinance results in four full-time employees being hired, costing $490,000 annually, to be funded by fees charged landlords, likely resulting in rent increases. This annual inspection will happen for only 778 apartments a year, but every apartment — all 7,782 in the city — will be charged a $25 administrative fee per year whether the dwelling is inspected or not.
Some apartments will pay the fee (and rent increase) for nine years before any inspection is performed. The ordinance requires the inspection of every duplex unit and rental house annually with a fee of $100 per dwelling.
The U.S. Census indicates that there are 7,000 houses/duplexes being rented in the city. Staff plans to conduct 1,442 rental inspections per year. The house/duplexes could pay an administrative fee for many years before being inspected. After successfully completing the first inspection, the annual fee can be changed to $125 per dwelling, called self-certification of the dwelling ‘s good condition. The rental apartment or house receives no service for this annual fee except to be left alone by government.
The ordinance raises privacy issues Article IV of the U.S. Constitution prohibits unreasonable search of private homes without a just cause reflected in a warrant. If a landlord or tenant does not want an inspection, the ordinance authorizes the city to seek an inspection warrant from a court. Inspections will likely be scheduled such that tenants must take time off of work to be present.
The ordinance is harsh toward good landlords as well as bad. If an inspection reveals a problem such as a nonfunctioning smoke alarm, mold under the sink, cockroaches or mice, or other violation of codes regarding a safe dwelling, then a correction notice is issued. Even if the landlord was unaware of the problem and corrects it within 30 days, he is still prohibited by the ordinance from raising the rent for one year. Typically, the rent might be raised 5% annually, so for a dwelling renting for $1,000/month, this corrected violation cost the landlord about $600.
Through this process the ordinance acts as rent control under the disguise of rental inspection. Violation of the ordinance is a misdemeanor subject to penalties of $2,500 per day enforced by the city placing a lien against the rental property. There is no requirement that the City Council hold a hearing to consider an appeal of penalties by city inspectors.
Why is this being proposed ? In the two council discussions of this, mention was made of out-of-town landlords who do not maintain their rentals, of the Siesta Motel on 16th St. that got so bad it is boarded up (the ordinance does not apply to motels), and as a way of creating a proactive way of preventing rentals from becoming so dilapidated that they are demolished.
Targeting out-of-town landlord’s properties for inspection is discriminatory. If the goal is to deal with truly dilapidated and substandard rentals then it seems that the inspection fee structure should be severe only on landlords who do not repair serious deficiencies promptly, and should be minimal on landlords who maintain their rentals in good condition. An inventory of rentals, and an annual education pamphlet with notice to all tenants about how to request an inspection for repairs their landlord refuses to make, should be in the ordinance.
Exclude the 7,000 rentals that are houses, duplexes, or “granny houses” on an existing house lot from annual inspections. Try to make the program function effectively for apartments first before considering houses and duplexes. Try to encourage people to build granny houses on their lots. Try to make housing more affordable. Reduce homelessness.
Try focusing on rentals that are visibly dilapidated or whose tenants are complaining. Reduce the staff required to support this ordinance, thus decreasing the cost. Do not burden good landlords and good tenants to fund the correction of bad landlords’ substandard rentals.
Contact your City Council member to tell them your opinion on this by email at @cityofmerced.org preceded by one of these names, SerrattoM; OrnelasJ; EchevarriaF; PerezB; BoyleS; or Shelton D.