Title
Delinquent Landlord Permit Fee Collection and Fine Calculation (B)
This item recommends amending the Landlord Permit Fee ordinance to include adding an additional delinquent fee collection method and establishing a policy for calculating Code Enforcement Board imposed fines related to violation of the Landlord Permit Fee ordinance.
Explanation
City of Gainesville Code of Ordinances Sec. 14.5 requires a landlord permit be obtained by an owner renting a single-family dwelling, two-family dwelling, three-family dwelling, four-family dwelling, multi-family dwelling, rooming house, dormitory or other dwelling unit within a district designated residential single family. The landlord permit is obtained upon review of a landlord permit application and payment to the City of Gainesville. The landlord permit fee is increased if received after the due date established in Appendix A - Schedule of Fees, Rates, and Charges.
The City issues approximately 3,500 landlord permits annually and an estimated 200 of those permits are either paid after the initial due date or remain unpaid. Those properties with permits that remain unpaid and are, nonetheless, rented in violation of Sec. 14.5 are referred to the Code Enforcement Board for prosecution. Section 14.5 currently includes a process for collecting unpaid landlord permit fees. By ordinance, unpaid fees may be referred to a collection agency and if the agency is unable to collect the unpaid fee the case can be referred to the Code Enforcement Board for prosecution. The case can also be referred directly to the Code Enforcement Board, which is the process used by staff. When found guilty by the Code Enforcement Board, the board issues a compliance date and a fine is assessed which is implemented if the property is not brought into compliance by the established deadline.
In an effort to add an additional collection tool that would increase the effectiveness of fee collection, staff recommends including an option in the ordinance to refer unpaid fees to the city attorney to pursue judicial resolution. This option would conform to other City collection practices.
The City of Gainesville currently has several properties that have running Code Enforcement Board fines resulting from being found guilty of renting a property without a landlord permit. The current ordinance does not clarify how such fines should be calculated or how compliance can be achieved to stop the accumulation of fines. Staff is recommending adding language to Sec. 14.5 to allow for Code Enforcement Board imposed fines to stop accruing at the point any of the following occurs: 1) a valid landlord permit is obtained for the subject property; 2) the owner ceases to rent the subject property; 3) the subject property has been relinquished by the owner by sale, foreclosure, etc.; or 4) The landlord permit year for which the owner is in arrears ends. Fees and fines will still be due and owing to the city up to the date of the occurrence of any of the events, and additional fines may be imposed should non-compliance occur during subsequent years.
Based on the proposed fine calculation method there will be a reduction in the amount of Code Enforcement Board fines due to the City of Gainesville, however staff believes that the proposed method is the appropriate calculation and will result in an increased rate of compliance, an improved ability to collect fines, fewer properties foreclosed on by the City of Gainesville because of the accumulation of fines, and greater redevelopment potential as a result of the removal of liens.
Code Enforcement Board fines owed to the City of Gainesville for violation of Sec. 14.5 total approximately $823,210. If these fines are recalculated based on staff's recommendation the total due to the City will total approximately $45,116.
Fiscal Note
The ordinance amendment to allow unpaid landlord fee collection through small claims court should result in a greater ability to collect delinquent landlord permit fees. This is assumed based on other City fee programs that utilize a similar process.
Code Enforcement Board fines owed to the City of Gainesville for violation of Sec. 14.5 total approximately $823,210. If these fines are recalculated based on staff's recommendation the total due to the City will total approximately $45,116.
Recommendation
The City Commission: direct the City Attorney to draft proposed amendments to City of Gainesville Code of Ordinances Section 14.5 and submit amendments for adoption by the City Commission.