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12/18/1997 - Minutes COMMUNITY HOUSING TASK FORCE MEETING Minutes of Thursday, December 18, 1997 Tigard City Hall MEMBERS PRESENT: Sheila Greenlaw-Fink, Andy Miller, Councilor Ken Scheckla and Susan Wilson. MEMBERS ABSENT: Sharon Fleming-Barret, Cecilia Maciel, Kathy Mattison (for Emily Cedarleaf), Sally Parks and Dedi Streich. ALSO PRESENT: David Scott, Building Official, City of Tigard. The meeting was convened at approximately 1:15 p.m. I. SELF INTRODUCTIONS: Introductions were not necessary. II. APPROVAL OF DECEMBER 4, 1997, MEETING MINUTES The minutes were approved with the following amendments: In Section III.A. add language to reflect the concern expressed that a purely reactive program would not be effective in dealing with problems in units where tenants are reticent to complain, and that the scope of referrals should include self and interdepartmental referrals to address this. (requested by Greenlaw-Fink). In Section III.D. that the sentence regarding mandatory licensing not being considered be changed to state "is not a preferred option." (requested by Wilson). III. WORK SESSION: Prior to continuing with the agenda staff shared copies of the Executive Summary to the August 1996, National Apartment Association's "White Paper on Municipal Apartment Inspection Programs." The paper contains recommendations which appear to be consistent with the direction the Task Force is heading. Miller also presented an article from the 12/18/97 Oregonian regarding rental housing conditions at the Marlene Village subdivision (rental single-family properties). Miller pointed out that tenant comments reported in the article reinforce the idea that many tenants are reticent to complain about health and safety issues in their units. A. How should the housing program be funded? Community Housing Task Force Meeting Minutes of December 18, 1997 Page 2 Staff presented the following options to open the discussion: = earmark existing business taxes assessed to rental property owners to the housing program (revenue currently $5,000 - $6,000 per year, based on $55 per owner - 94 owners paid so far in 1997), tax is currently assessed when more than 3 rental units are owned. The tax formulation could be modified. = assess monthly penalties against owners who fail to comply with correction notices in a timely manner, penalties to assess automatically and be recorded on the property. Staff reported that based upon a pro-rata analysis with Portland's data, similar to that used to determine the potential number of housing inspections, Tigard might anticipate $10,00 - $12,000 from this source. = assess relatively high fines through a hearing process against owners who fail to comply with correction notices after some excessive period of time has transpired. = assess monthly penalties and fines as described above for failure to comply on a timely basis with correction notices from the code enforcement officer (this is an existing program area, the proposal is aimed at generating general fund revenue to off-set general fund costs associated with the housing program - the proposal does not anticipate increased code enforcement activities). Miller suggested that Tigard may be able to secure Community Development Block Grant (CDBG) funds through the County. Staff will investigate this option. The Task Force reached consensus that all of the above proposals have merit and should be explored. Further, the Task Force acknowledged that it is reasonable for some portion of the housing program to be subsidized by general property tax funds because of the general community good the program provides. Wilson commented that it would be her preference to see a direct correlation between program costs and revenues, but acknowledges that general tax subsidy may be necessary short of imposing mandatory fees to fully subsidize program costs. Councilor Scheckla pointed out that the program should bring indirect financial benefits due to decreased police costs and increased property values because of improved neighborhoods. Because of the wide range of options for the penalty and fine proposals, the potential for changing the business tax formula for rental property owners and the fact that the property owner constituency was not in attendance, the Task Force deferred extensive discussion or decision making on the details of these issues until the 1/8/98 meeting. There was some discussion on the possibility of having categories of violations, with varying time limits and penalties. Miller suggested that because the standards are proposed to apply to owner occupied units that such owners also pay a "tax" or "fee" similar in concept to what the rental property owners currently pay. The other members present expressed concern about imposing a new "tax" or "fee" on owner occupied properties. Staff Community Housing Task Force Meeting Minutes of December 18, 1997 Page 3 will bring several options for each of the proposals for consideration at the next meeting. Staff reported, as was requested at the 12/4/97 meeting, that County records show 73 entities own 87 properties having 10 or more units. B. What implementation and program policies should be adopted? Discussion on this item was deferred until the next meeting. C. Other. No other items were discussed. IV. MEETING SCHEDULE CONFIRMATION: The previously scheduled future meeting of 1/8/98 was confirmed. The next meeting following the 1/8/98 meeting was scheduled for 2/5/98. Both meetings will be from 1 PM to 3PM at the same location. The time lapse between these meetings will allow staff to report on the seminar on housing program administration and to bring forward any ideas which hold potential for Tigard's program. It is intended that the task force will have a draft report for review in late February, with a final report to Council in late March or early April. V. ADJOURN The meeting adjourned at approximately 3:15PM. Respectfully submitted, David Scott Building Official isXbldg\sweberlcommhous\minutes\min 1218.doc