Meeting Time: August 04, 2022 at 7:00pm EDT

Agenda Item

8. Approval of an ordinance for Residential Rental Licensure and Affordable Housing Conservation Program

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    Jim Fogle over 2 years ago

    I own several units in Frederick City. I and my wife do the management. We hear a lot about affordable housing , the $120.00 fee is going to be passed along to the tenet and just drive up rent cost even more. With all the cost rising and rents going up this is going to impose another financial hardship on landlords that will be passed to the tenet. Their fore I am totally opposed to this ordinance

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    Tim Hawk over 2 years ago

    I vehemently I oppose this ordinance. I am a landlord of a single unit. I manage all aspects of the rental process and property management. My primary motive for handling the rental process / management in its entirety is to keep costs at a minimum which allows me to offer lower monthly rental payments to my tenants. Keeping costs at minimum allows me to extend the most competitive rent payments & lease terms to my tenants. This $120/yr fee being proposed will unfortunately get passed along to the tenant/renters and ultimately increase rent payments.

    This ordinance is an attempt to generate additional revenue for the city, and this proposed fee would simply get rolled into the lease via application fees, monthly payments, etc and ultimately increase costs for the average renter.

    This ordinance will not benefit the property owners & it will not make rent more affordable. This ordinance is not a response to the rental market; it’s the city looking to add revenue steam or introduce additional oversight.

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    Jazmin Di Cola over 2 years ago

    My name is Jazmin Di Cola and I'm in favor of the Residential Rental Licensure & Affordable Housing Conservation Program. It will provide tenants rights and protections that already exist, however, many tenants feel not protected and aren't educated. This ordinance will help to enforce humane living conditions for everyone. Many immigrant families face illegal threats from landlords and bad living conditions in rental properties. How will those landlords who aren't in the market and have tenants under the table be tracked? There is more to work on this ordinance but it's a great start. Many children and families lived in poor conditions in homes that have no contracts, therefore there is no accountability. It's time for rental licensing!

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    James Velich over 2 years ago

    My name is James and I live in the Main Farm Subdivision near 355/26. I believe that ones who are proposing this ordinace are actually discouraging the most important thing that individuals need in Frederick City and that is AFFORDABL HOUSING. This Ordinance will greatly discourage homeowners, who may have space in their house, from making their space available for those truly needing affordable housing. These type of rental scenerios are doing more than any type of articles passed by your board to help solve this problem. What this bill will accomplish is to make it more difficult for affordable house to be solved. Not only that, many homeoners in this economic evironment of inflation could really use the added income. I stronly believe that this legislation needs to be "tabled" for serious rethinking about it's effects.

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    Michael Barnes over 2 years ago

    Michael Barnes
    Yellow Springs

    Mayor O'Connor and Board of Aldermen,
    I would like to voice my opposition to the ordinance for enacting a Residential Rental Licensure and Affordable Housing Conservation Program.

    This seems to be a solution in search of a problem. There are plenty of existing ordinances and laws, local as well as state, that can be leveraged with similar outcomes without the need for additional growth of government. At the very least, the requirement for a "Local Agent" to reside within the city is not necessary. We own one rental property in the city and we live barely 200 yards from the city limits. The imposition of the requirement for an agent to reside within the city should, at the very least, be evaluated on a case-by-case basis.

    Thank you for your consideration.

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    Grason Wiggins over 2 years ago

    This testimony is offered on behalf of the Maryland Multi-Housing Association (MMHA), which is a statewide trade association comprised of owners and managers of rental properties. MMHA’s members own and manage approximately 64.4% of the rental units within the City of Frederick.

    MMHA thanks the Mayor and the Board of Alderman for meeting with our representatives to discuss the proposed law. MMHA continues to have significant concerns that the proposed licensing law will subject property owners to overly punitive penalties, subsequently reduce affordable housing, and create constitutional issues. Further, based on recent holdings from the Court of Appeals, MMHA urges the City of Frederick to consider a registration program as a first step before licensure. Please note that due to the character restrictions for testimony, MMHA is unable to fully delineate all suggested changes herein.

    The proposed rental licensing law will likely reduce affordable housing within the city. In addition to a licensing fee that will be passed onto residents, the proposed law includes some of the highest financial penalties in the state. While MMHA thanks members of the board for indicating that there is no intent for the compensation provision to create an implied private right of action, a recent opinion from the Court of Appeals could still result in rent forfeitures due solely to the lapse of a license. In addition to high licensing fees, property owners will be unable to offer affordable housing when the simple act of forgetting to renew a license for one-month results in rent forfeiture and $30,000 in liability exposure from the city. This fact is additionally concerning given that there is no exemption to penalties for lapse of licensure due to actions of the city or an occupant of the property.

    In addition to affordable housing issues, MMHA is concerned that the proposed law creates constitutional issues. Specifically, the proposed law utilizes a vague standard for requiring inspections at any time then allows for the revocation of a license without a hearing if the property owner denies entry. In addition to that concern, the proposed bill includes a provision that voids a contract and requires a property owner to provide housing without compensation.

    MMHA urges the Board to consider these issues and looks forward to sharing additional information at the hearing on August 4th.

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    Ryan Jackson over 2 years ago

    I oppose this ordinance. I am a landlord of a single unit. I am not a big company with several units.

    I try to do well for my tenants by not increasing the rent during times of inflation. However, I'll will not have a choice if this is passed.

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    Anne Dalauro over 2 years ago

    I own one 2 unit townhouse in downtown Frederick that I rent. Costs incurred when you enact an ordinance that requires more time and paperwork on my part will result in increased rent for the tenants. So if you want to increase the already high rents for the tenants pass this ordinance.
    Frederic D'Alauro

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    Paul Fitzgerald over 2 years ago

    Paul Fitzgerald
    Jefferson, MD

    Mayor and Board of Aldermen,

    I live in Frederick County and own a vacant building in Frederick with plans to convert it into apartments. Regarding this ordinance, I take exception to Sec. 12.5-37 - Local representative.

    I have lived in Frederick and Frederick County for 37 years and have invested in the community. I feel the residency requirement of this ordinance is burdensome and unnecessary. I believe the ordinance could provide accommodation for smaller unit (less than 10) owners and the need for local representation. Today, smart locks can be installed that would allow access from almost anywhere or a lock box with a key can be installed on the property with a combination on file with the City or provided by the owner.

    My question is: what is the need for this requirement? With adequate notice, the owner can provide access or designate someone to provide access without the residency or business requirement. In the event of an emergency, the local authorities would have access as provided under law.

    I request Sec. 12.5-37 be deleted from this ordinance or revised to provide alternative accommodation.

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    Barry Weller over 2 years ago

    Barry Weller
    Frederick, Md
    To the Mayor and Board,
    I oppose this ordinance. I t will add cost and red tape for housing providers, making housing even less affordable.
    The problem in Frederick and across the country is a lack of For Sale and For Rent housing. This bill will do nothing to solve either problem. This bill is an awful idea.

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    Nicole Loser over 2 years ago

    Mayor O’Conner and Board of Alderman Members,
    I represent a Multifamily operator, Berger Rental Communities (BRC), which own and manage Willowdale Crossing Apartments in Frederick, MD and almost 9000 apartment homes across PA, DE, and in MD. We have proudly been a part of the Frederick multifamily business community since 2016. At BRC, we believe renting shouldn’t be hard – so much that we have trademarked this mindset and core value. We extend flexibilities to our renters such Home Purchase Freedom and a 30-day satisfaction guarantee to all new move-ins, providing a resident focused experience from their first interaction through their resident life cycle. Prior to and independent from any requirements to waive late fees in the early stages of the COVID pandemic, BRC extended this across its portfolio for months while at the same time offering payment plans and early refund of Security Deposits. BRC was recently rated #1 in the Nation by Satisfacts Research and Apartment Ratings based on ratings and reviews from our own residents. We truly care about our residents.
    Over the last three years while renewal rent increases and late fees been banned in Frederick, our expenses have continued to rise close to 10%. While some may be tempted to assume that multifamily owners enjoy large margins and can absorb this increase in expenses, as data from the National Apartment Association indicates, on average only 9 cents of every dollar serves as profit. In this same period, market rents for new leases in Frederick have accelerated to partially offset this imbalance in expense increases and income stagnation, ultimately impacting residents moving to or within Frederick and existing residents who could face a steep increase once the ban on rent increases unwinds.
    Now, the proposed rental licensing poses another challenge to Multifamily operators in Frederick. The $120/unit fee, the highest in the State of Maryland, poses an additional burden and as the legislation is currently written with no way of offsetting the additional expense. We understand and support the intention of protecting apartment renters in Frederick and ensuring minimum apartment maintenance standards. As a company, we already hold ourselves to standards with the same goals. We urge you to consider the revisions proposed by the Maryland Multi-Housing Association (MMHA) so that we can continue to work for the apartment residents of Frederick together. Thank you for your consideration.

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    Liz Tinker over 2 years ago

    Liz Tinker
    Frederick- 21701
    I find this proposed rental licensing ordinance egregious and insulting to my long standing positive reputation as a landlord within the City of Frederick. I live, work, and am a landlord in this city and for the city to institute this ordinance, to catch a few bad players (in my option) is absolutely absurd. What is the cities intent, who are you trying to “catch”, I’m absolutely positive the city has other tools to look into bad landlords and doesn’t need to create a new regulatory authority. I find it absolutely absurd that some city employee (with or without tenant , landlord, or leasing experience) will enter my private property and inspect my tenant home for “poor conditions”. I pride myself on building long lasting, respectful relationships with my tenants and I truly feel that this ordinance with no long support that. Don’t get my wrong, I’ve had my bad time with tenets, but that’s what the law and Maryland State Tenants/Landlord rights are for. I think one of the things my tenants respect the most is that I respond quickly to any and all needs, but I do not both or invade their privacy. I urge you to really think about this ordinance and think about what you are really trying to accomplish and whom you will hurt (by increases rent, interrupting inspections, etc) by adopting this. Please reconsider and use the tools you already have to address any bad landlord issues

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    Bryan Chaney over 2 years ago

    It appears from reading the Executive Summary of the ordinance currently on the COF website that Airbnb properties would be exempt from this ordinance, that it covers only leases over 6 months. Our Airbnb guests typically book our properties from 2-5 days max. Our properties are maintained and operated at a level far in excess of the minimum requirements as outlined in the ordinance and are more in line with a quality level typically found at a 4-5 star boutique hotel. Also our nightly rates are in line with a boutique hotel stay and not even close to the category of an affordable housing situation. While seems obvious that Airbnb's (or short term rentals) would not be covered by this ordinance, it may be prudent to include language that makes it clear. Maybe "short term rentals" or "Airbnb's", etc., along with the current language covering B and B's and so forth.

    I am not familiar with the issues mentioned in the ordinance that are prompting the need for this action, however, my opinion is that if a landlord cannot afford $120 to register their property with the city to assure a basic level of living quality for a tenant, they might consider getting out of that business. Everyone deserves the basic dignity of having a safe, clean place to live. My only concern is that ordinances like these typically grow into overarching rules and regulations that either drive up the rents or cause landlords to throw up their hands and sell the properties, exacerbating the problem of affordable housing and inventory. I might suggest the alderman listen closely to those landlords with rental inventory in the category of affordable housing and work with them closely to craft an ordinance that best accomplishes the balance between safety and affordability.

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    Noah Hawk over 2 years ago

    Alderpersons,

    I support the letters of Ms. Conrad and Ms. Kerr below. I do not support the proposed license for rental license in its current form. Please consider a more targeted approach where management companies and short-term rental owners are required to have licenses. This will protect the majority of tenants from a rent increase in an already hot rental market and will still accomplish the goals of assisting affordable housing. IF the proposal passes as written, please consider a phase-in or grandfather clause for current lessors.

    Thank You,
    Noah Hawk

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    EMILY CONRAD over 2 years ago

    Emily Conrad
    700blk of Motter Avenue
    Frederick 21701

    Dear Alderpersons,
    We are writing to express our opinion/concerns regarding the new proposed Rental Registration Program. We were prepared to testify at the open meeting, however, since it was cancelled, we are sending our testimony in writing.
    As tenants we do not understand the goal of this program. The city talks about helping low-income residents and yet wants to institute a program that does the opposite. Is this a back-door way to accomplish more gentrification in Frederick city? Small landlords will just throw up their hands and say “enough is enough”. They will opt to sell out, leaving us with even less housing. And you have data to support that.
    You want to get rid of complaint-based enforcement, you say it doesn’t work. It does work. You say if there is a language barrier then it won’t work. Make it work. Use your talents to fix what we have. For example, use a city translator?
    The program wants to end squalor. What squalor? Where is the data?
    The $120/yr will be passed onto us. It won’t stop there, once you put a program of this size into place it will add small cost after small cost. “the Board of Aldermen may establish registration fees, inspection fees, and other administrative or regulatory fees deemed necessary for the effective implementation of this article.
    For those of you who plan to vote in favor of this – maybe you don’t understand the significance of $10 a month. Cable goes up, internet goes up, and now this. It all adds up. That $10 is two gallons of gas.
    If you want to do something to help the renters, then one thing you could do is examine the wording of the leases. The big management companies write leases that practically guarantee the tenant won’t get their deposit back. Fixing leases that favor the Landlord would be a great assistance to the renter.
    There are so many things you can do to help; this program is just not one of them.

    Thank you for your time,
    Emily Caitlin Conrad
    Layla Nicole Stitely
    John Albert Letner
    Gregory Tyrone Weedon

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    Helen Kerr over 2 years ago

    Honorable Mayor O'Connor and Board of Alderpersons,

    I oppose this bill - for all the common sense reasons that others oppose it. Why create a new level of bureaucracy? Use what we have. At the very least, Staff made common sense changes, but Donna put red lines through those changes. For example, exempting tourist homes, airBnB, etc from the regulation. This will be a costly mistake for our City and should be postponed while it is thought out more thoroughly. Provide and examine some data that shows it is needed. Don't vote for such a sweeping thing with no data. Please listen to the 'other side'. Please listen to staff. I have written before, and will let that letter stand, and with the exception of one Alderperson, there was no response; no one was listening. I know of others who have written and again, there was no response. Please listen. Listen to the tenants who don't want their rent to go even higher. Listen to the landlords who say they will pass the expense on to the tenants. Listen to the small landlord who will simply sell their property.
    Helen Rozsics Kerr

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    Malcolm Furgol over 2 years ago

    Honorable Mayor O'Connor and Board of Aldermen,

    I write today to once again, convey the support of the Affordable Housing Council (AHC) for the proposed Residential Rental Licensing program. The stated mission of the AHC is to advocate for the preservation and expansion of safe, decent, and affordable housing in Frederick County.

    We concur with the city's staff, that "Conservation of existing rental housing stock is of tremendous importance, as it provides necessary naturally occurring affordable housing, especially for lower income residents who rely on these options." We also agree, that "It is in the public interest that all residential rental units comply with certain minimum maintenance standards to ensure all residents in rental units are in safe, healthy environments." Further, we agree that relying solely on a complaint-based system is inadequate, for the reasons outlined by staff, and a more proactive approach is warranted.

    I see in the staff report that there are two concepts for the inspection process. The AHC as a body has not discussed the details of the inspection process, so we have no opinion on that. I can see the merits in both concepts.

    Although there may be some potential consequences to this program, we think that the benefits far outweigh the potential downsides. It's our hope that there will be sufficient funds generated by the program to help landlords correct deficiencies so that the harms are minimized.

    Again, the Affordable Housing Council supports this program, and we thank Ryan Trout for his part in initially developing it, and we thank Alderwoman Donna Kuzemchak for championing the program and helping to move it through the legislative process.

    Regards,

    Malcolm Furgol
    Co-Chair, Affordable Housing Council