Rental units in International Falls could be inspected by city officials should the International Falls City Council accept a recommendation from its Finance and Legislation Committee.
The committee Monday met with a group of landlords, a few tenants and others who deal with housing issues to discuss a proposal to inspect rental units and charge a licensing fee to rental property owners.
City officials have said they want to ensure that rental units are safe and meeting certain safety standards.
The Falls City Council is expected consider at its July 16 meeting a recommendation from the committee that calls for inspection of rental units with no inspection fee charged to landlords in the first year. In addition, the recommendation is expected to include setting an annual rental license fee structure charged to landlords of $20 for each single family unit; $25 for a multi-family unit; and $30 for four units or more. The recommendation urges a review of the plan two years after its date of implementation.
Committee Chairwoman Cynthia Jaksa, who is also a councilor, said the city may attempt to partner with staff of the United States Housing and Urban Development, which already inspects HUD subsidized rental units.
Jaksa said inspections of rental units that show no safety issues may not be inspected again for another three years. However inspections may be more frequent on units in which inspections reveal safety issues.
The process, she said, would be finalized after the council considers the proposal.
It is estimated that there are 900 rental units in the city.
The recommendation came after several meetings with landlords and a two-hour committee meeting Monday during which several landlords said the council is singling out rental units for issues that should also be addressed on other properties in the city.
Jaksa said inspections can protect landlords from unwarranted claims by tenants should problems occur. For example, she said, if a fire occurred in a rental unit and tenants claim that there was no smoke alarm, an earlier inspection may show properly operating and installed carbon monoxide and smoke detectors at the time of the inspection.
“There are positives for landlords, here,” she said of the inspection proposal.
In addition, Jaksa said inspections and licensing fees would allow the city to compile an inventory of rental units in the city and would ensure that tenants paying to rent units are living in safe conditions.
Landlords say inspections are not needed and will likely be met with objections by tenants and landlords.
Attorney Dan Griffith discussed the proposal with the committee Monday after he was contacted by at least one landlord.
He pointed to a recent legal case in Red Wing in which the Minnesota Supreme Court may hear a case involving the constitutionality of inspections.
A Minnesota Court of Appeals ruled June 11 that city inspectors have the legal authority to enter a rented apartment or home even if they have no evidence of a potential housing code violation.
Griffith said he is confident the high court will reverse the appeals court decision.
According to news reports, the Red Wing ordinance requires an inspection to obtain a seven-year operating rental license, but landlords may obtain two-year permits until an operating license is issued. Inspections are scheduled with the consent of the property owner and primary tenant. But if the landlord does not cooperate, the city may seek “permission to conduct the inspection from a judicial officer.”
The case has “significant, statewide impact on Minnesota cities,” the League of Minnesota Cities said in an amicus brief defending Red Wing’s inspections program. The league said many cities have similar ordinances.
Rental unit owner Bob Discenza said city officials already have authority to shut down units that do not meet standards and have done so in the past.
Discenza said if the city’s primary goal in proposing inspections is to ensure the safety of tenants, no fees should be involved.
Falls Mayor Shawn Mason said city officials do not want to create more government, but instead more efficiency.
“Being a landlord is a business, and tenants do deserve an inspection, whether we collaborate with HUD or do it on our own,” she said, adding that proposals on rental rules and fees have been revised to address landlord’s concerns.
City officials said they plan to establish a task force that includes a small group of landlords and tenants to help address rental housing issues.
