Agenda Item 13
November 1,2016
Public Hearing
MEMORANDUM
October 28, 2016
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative
Attome~QJULi
Public Hearing:
Bill 39-16, Housing and
Registration of Vacant Property
Bui~ding
Maintenance Standards ­
Bill 39-16, Housing and Building Maintenance Standards - Registration of Vacant Property,
sponsored by Lead Sponsor Councilmember Hucker and Co-Sponsors Councilmembers Leventhal
and Navarro, Vice President Berliner, Councilmembers EIrich, Riemer, and Rice, and Council
President Floreen, was introduced on September 20,2016. A Planning, Housing and Economic
Development Committee worksession is tentatively scheduled for November 21 at 2:00 p.m.
Bill 39-16 would:
require owners of certain unmaintained vacant buildings to register those vacant
buildings with the Director of the Department of Housing and Community
Affairs;
require owners of certain unmaintained vacant buildings to pay certain fees;
require inspections for certain unmaintained vacant buildings; and
generally amend County law on housing and building maintenance standards.
Additional background materials from Lead Sponsor Hucker is attached on ©8.
This packet contains:
Bi1l39-16
Legislative Request Report
Sponsor materials
Fiscal and Economic Impact statement
Circle
#
1
7
8
14
F:\LAW\BILLS\1639 Registration OfVacant Property\PH Memo.Docx
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Bill No.
39-16
Concerning: Housing
and
Building
Maintenance
Standards
Registration of Vacant Property
Revised: 7/14/2016
Draft No.
~
Introduced:
September 20,2016
Expires:
March 20, 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --'-"N=onC!.>e<--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Hucker
Co-Sponsors: Councilmembers Leventhal and Navarro, Vice President Berliner, Councilmembers
Eirich, Riemer, and Rice, and Council President Floreen
AN
ACT to:
(1)
(2)
(3)
(4)
require owners of certain urimaintained vacant buildings to register those vacant
buildings with the Director of the Department of Housing and Community Affairs;
require owners of certain unmaintained vacant buildings to pay certain fees;
require inspections for certain unmaintained vacant buildings; and
generally amend County law on housing and building maintenance standards,
By adding
Montgomery County Code
Chapter 26, Housing and Building Maintenance Standards
Article I, General
Article II, Registration of Vacant Property
Sections 26-19, 26-20, 26-21,26-22, 26-23, and 26-24
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill,
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment,
Existing law unaffected by bill,
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 39-16
1
Sec. 1.
Chapter 26 is amended by adding Articles I and II (Sections 26-19,
26-20, 26-21, 26-22, 26-23, and 26-24) as follows:
Article I. General.
2
3
4
*
26-19. Definitions.
*
*
5
Article II. Registration of Vacant Property.
6
7
In this Article, the following terms have the meanings indicated:
Department
means the Department of Housing and Community Affairs.
Director
means the Director ofthe Department or the Director's designee.
Dwelling unit
has the same meaning as in Section 26-2.
Fit for occupancy
means ready for immediate occupancy
Qy
more than minor cosmetic changes.
Occupied
means the use of one's residence in improved real property on
regular basis.
Public nuisance
has the same meaning as in Section 26-2.
Vacant building
means residential real property improved
Qy
~
building which
is not occupied. A building is only
~
vacant building
if the Director determines
that there is no resident for which an intent to return and occupy the building
can be shown. To determine whether there is
£!
resident, the Director must
consider:
~
~
8
9
10
11
12
tenant without
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
ill
ill
ill
ill
ill
ill
past due utility notices and/or disconnected utilities;
accumulated mail;
no window covering;
no furniture observable;
open accessibility;
deferred maintenance; and
the dwelling is boarded
~
m
o
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BILL
No. 39-16
28
Unmaintained vacant building
means
required
Qy
Chapter 26, Article
.L
~
vacant building not maintained as
29
30
Visual blight
has the same meaning as in Section 26-2.
26-20. Applicability.
31
32
33
34
35
36
37
This Article does not apply to any real property that is
ill)
owned by:
ill
ill
ill
(hl
under
the government ofthe United States or its instrumentalities;
the State of Maryland or its instrumentalities; or
~
foreign government or its instrumentalities;
active
construction
or undergoing
active
rehabilitation,
38
39
renovation, or repair, and there is
~
building permit to make the building
fit for occupancy that was issued, renewed, or extended within 12
months of the registration date;
(£)
40
41
for
~
period not to exceed 24 months, the subject of
~
probate
42
43
44
45
46
proceeding or the title is the subject of litigation, including
~
foreclosure
proceeding; or
@
maintained as required
Qy
Chapter 26, Article
.L
26-21. Registration of unmaintained vacant buildings; inspection; notification.
ill)
Building maintenance required.
The owner of
~
vacant building must
maintain the building as required
Qy
Chapter 26, Article
.L
47
48
49
(hl
Unmaintained vacant buildings registry.
The Department must maintain
~
list of unmaintained vacant buildings.
50(£)
51
52
53
Registration required.
ill
Within 90 days after
~
building becomes an unmaintained vacant
building, the owner must register the building and
!mY
the
registration fee required in Section 26-23.
An
owner must renew
G-
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BILL
No.
39-16
54
55
56
57
58
59
~
registration annually from the date of initial registration unless
there is
~
change in ownership.
ill
The Director must identify nonregistered unmaintained vacant
buildings. The Director must notify the owner that the owner's
building has been designated as an unmaintained vacant building
and ofthe owner's right to appeal this designation.
60
61
62
63
64
@
Inspections required.
ill
Inspections
required.
The
Director
must
inspect
every
unmaintained vacant building at least annually to ensure that:
(A)
the building complies with all applicable laws, including
Chapter 26, Article
.t
and
65
66
67
.an
vacancy of the building is not;
ill
(ii)
detrimental to the public health, safety, and welfare;
~
hazard to police officers or firefighters entering the
68
69
70
71
72
73
74
75
76
77
building in an emergency; or
(iii)
~
public nuisance.
~
ill
Additional inspections authorized.
The Director may inspect
vacant building more often than annually to ensure compliance
with this Article.
W
County notification.
The Director of the Department of Finance must
notify all property owners of the requirements of this Article at the same
time as the Director notifies property owners of any real property taxes
due.
26-22. Exemptions.
78
79
W
The Director may
~
an exemption from the registration requirement
in Section 26-21 for any real property that is:
@
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BILL
No. 39-16
80
81
82
83
84
85
ill
in compliance with 26-21(a) and the property owner has been
actively seeking in good faith to rent of sell the property if:
.cAl
the time period for sale or rent does not exceed
1
year from
the initial listing, offer, or advertisement of sale or rent of
~
residential building; and
(ill
the building has
~
valid certificate of occupancy;
~
86
87
ill
for
period not to exceed 12 months, the subject of
~
pending
~
application for
necessary approval for development before the
88
89
90
91
92
93
94
95
Planning Board, Board of Appeals, or Office of Zoning and
Administrative Hearings; or
ill
for
~
period not to exceed 24 months, the subj ect of an
inheritance.
ru
(£}
The cumulative time period that
~
vacant building may be exempted
from this Article must not exceed
J
years.
An application for an exemption from the registration requirement must
be made on
~
form the Director prescribes.
@
96
97
A person that believes the Director has incorrectly denied the person's
application for an exemption may appeal that decision according to
Section 26-24.
98
99
100
101
26-23 Fees.
W
The County Executive must set one or more fees
Qy
regulation under
Method
@
The fee must increase for larger numbers of inspections
performed that the Director determines are necessary to ensure
compliance with this Section.
102
103
104
105
ru
A vacant building owned
Qy
the County or its instrumentalities must
comply with the registration requirement of Section 26-21, but is not
subject to any fees required in paragraph
.c&
106
o
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BILL
No. 39-16
107
108
109
110
111
112
113
114
115
116
117
118
26-24. Right to appeal.
.cru
Within 10 days after the designation of an owner's building as
~
vacant
building, the owner may petition the Director for reconsideration
Qy
filing the form prescribed
Qy
the Director. Within 30 days after
receiving the petition, the Director must issue
determination.
~
notice of [mal
®
Any person aggrieved
Qy
an action of the Director under this Article
may, within 10 days after receiving written notice of the action, appeal
that action to the Circuit Court under the Maryland Rules of Procedure
for judicial review of
~
final administrative agency decision. An appeal
does not stay the Director's action.
Approved:
119
Nancy Floreen, President, County Council
Date
120
Approved:
121
Isiah Leggett, County Executive
Date
122
This is a correct copy ofCouncil action.
123
Linda M. Lauer, Clerk ofthe Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 39-16
Housing and Building Maintenance Standards
-
Registration o/Vacant Property
DESCRIPTION:
Bill 39-16 would require owners of certain unmaintained vacant
buildings to register those vacant buildings with the Director of the
Department of Housing and Community Affairs; require owners of
certain unmaintained vacant buildings to pay certain fees; and require
inspections for certain unmaintained vacant buildings.
The County has inadequate tools to address vacant homes.
To give the County new tools to address the growing number o f
vacant properties in the County.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
To be requested.
To be requested.
To be requested.
To be researched.
Amanda Mihill, Legislative Attorney, 240-777-7815
To be researched.
A violation of Chapter 26 is a Class A violation.
F:\LAW\8 ILLS\I 639 Registration Of Vacant Property\LRR. Docx
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MONTGOMERY COUNTY COUNCIL
ROCKVILLE, MARYLAND
TOM HUCKER
COUNCILMEMBER
DISTRICT 5
MEMORANDUM
TO:
FROM:
DATE:
RE:
Councilmembers
Tom Hucker
July 13,2016
Establishing a vacant property registry
The second part of my housing package is a bill to establish a vacant property registry,
which is intended to give the County government new tools to address the growing number of
vacant properties in Montgomery County. A review ofDHCA's code enforcement data shows
that there are more than 350 known vacant properties in the county.
There are also hundreds more unidentified vacant properties because this problem is
underreported and not all vacant properties have apparent housing code violations listed. Many
of these vacant properties are inherited, owned by out-of-state residents, or by developers who
simply have no short-term incentive to care for the property or put it back on the market.
Vacant properties can not only be an eyesore, they also pose serious threats to the
community. Research shows they attract squatting, arson and other criminal activity. Vacant
properties place a burden on our public safety and housing resources because they are twice as
likely to generate a call for fire or police service than a non-vacant property[2l, and they have
been found to reduce the community's property values by as much as 9%
[3][41.
The County has inadequate tools to address vacant homes, which is why many of ours
remain empty for so long. Several in my neighborhood in Silver Spring have been the subject of
constituent complaints for nearly ten years. I've discussed them with previous DHCA directors,
the Maryland Department of Housing and Community Development and the Attorney General,
each of whom have claimed that they need stronger authority to incentivize owners to rent, sell
or occupy their homes.
As a result, many of the vacant properties we researched have generated dozens of
County inspections, citations and minor DHCA actions through the Clean and Lien program. A
Clean and Lien occurs when a negligent property owner fails to maintain their vacant property
after being cited numerous times. In response, DHCA will cut the grass, secure the doors or
windows, remove any trash or debris, and put a lien on the property for the cost of these services.
STELLA B. WERNER COUNCIL OFFICE BUILDING • 100 MARYLAND AVENUE, 6"' FLOOR • ROCKVILLE, MARYLAND 20850
240-777-7960
OR
240-777-7900 • MD RELAY - DIAL 711 • FAX 240/777-7989
COUNCILMEMBER.HUCKER@MONTGOMERYCOUNTYMD.GOV • WWW.MONTGOMERYCOUNTYMD.GOV
@
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Unfortunately, this program does not provide enough of an incentive for a negligent property
owner to rent, sell, or occupy the property because the cost of these services is so low.
My proposed bill addresses these issues by requiring DHCA to establish and maintain a
registry ofunmaintained vacant properties. Once the property is registered, DHCA must perform
an initial inspection for housing code violations. Any subsequent inspections performed by
DHCA will be charged to the homeowner using a graduated fee schedule similar to the False
Alarm Response Fee ScheduleJ
5
1
The creation of the registry will allow the County to collect data on the number of vacant
houses for the first time. The more robust inspection regimen will make the County agencies
aware of more violations and will encourage owners to address violations before they become
worse, and the increasing fees will give absentee owners more financial incentive to rent, sell, or
occupy long-vacant properties.
This is a best-practice approach that is based on successful laws in Chicago, Los Angeles,
Wilmington, and other large municipalities. The District of Columbia also has a very successful
approach to vacant properties; the City assesses a special tax of $5 .00 per $100 of assessed value
for vacant properties and $10.00 per $100 of assessed value for blighted vacant properties.
Unfortunately, this option is unavailable to us under Maryland Constitution, but it illustrates the
seriousness with which our immediate neighbors address this problem in the District.
Attached is a copy of the bill, an FAQ sheet, and some slides to explain more about the
issue. Thank you in advance for your support ofthis bill. Please let me know if we can provide
any additional information, and please contact my office if you would like to cosponsor.
[%rtp:!iv.'Ww. usatoday .com/story/money!personaltinanc.e/20 15/02/ 14/c.redit-dotcom-foreclosures/23 28 708 5/
121http://www.communityprogress.net/filebin/Community]rogress_ Wilmington]INALYEPORT_122214.pdf
3
[
1http://www.pittsburghquarterly.comiindex.phplRegionithe-cost-of-blightlAlI-Pages.html
4
1
Ihttp://Vv·ww.communityprogress.net!filebin!Community]rogress_Wilm ington]INAL_REPORT'-.122214.pdf
[51
http://www.montgomerycolmtymd.gov/POLIChieflbureaus/managementfmgmtbudget!falsealaml!fee2.html
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Unmaintained Vacant Property
Frequently Asked Questions
1. What is the intent of this legislation?
The intent of this legislation is to keep umaintained vacant properties from becoming a
nuisance to the community by requiring that the property owner maintain the property
and move towards occupancy.
2. What is an unmaintained vacant property?
Unmaintained vacant properties are residential real properties that have not been
continuously occupied and the owner has shown no intent to return. To determine
whether a property is vacant, the Department of Housing and Community Affairs
(DHCA) must consider utility usage, physical signs of occupancy, and blight or general
neglect.
3. Why create a registry?
Unmaintained vacant properties have been shown to reduce the property values of
surrounding properties by 6-9%, and they are nearly twice as likely to generate a call for
fire service. Given these statistics, the county has a clear and compelling interest in
making sure that unmaintained vacant properties are being maintained and not a risk to
other homes in the community.
4. Are there any exemptions?
Yes, properties with permits for active renovation, being sold or rented, going through
probate proceedings, or being redeveloped are exempt from registering for up to 3 years.
5. Will residents that leave for the winter have to register?
No, residents that leave for the winter will not have to register because they have a clear
intent to return.
6. Are there any fees and fines associated with registering?
Yes, the fee for registering the property and the fine for failing to do so will be set by
executive regulation.
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7.
What happens after a property is registered?
DHCA will inspect the property for any code violations. The property owner will then
have 30-60 days to address the code violations. Any subsequent inspections performed
by DHCA will be charged to the homeowner using a graduated fee schedule similar to
the False Alarm Response Fee Schedule.
8. What is the False Alarm Response Fee and how does it work?
The Montgomery County Police Department is requested to respond to over 45,000 false
alarms each year. Responding to false alarm calls reduces the police department's
effectiveness and undermines its ability to respond to more critical calls. A false alarm is
defined as any alarm signal that elicits a response by police personnel and for which there
is no evidence of criminal activity to justify a police response.
Below is the False Alarm Response Fee Schedule.
Occurrence
lst
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
Residential Fee
$0.00
$25.00
$50.00
$75.00
$100.00
$150.00
$200.00
$250.00
$300.00
$400.00
$500.00
$600.00
Commercial Fee
$0.00
$25.00
$50.00
$75.00
$100.00
$150.00
$200.00
$250.00
$300.00
$400.00
$500.00
$600.00
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13th
14th
15th
16th
17th
18th
19th
20th
$700.00
$800.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00
$4,000.00
$700.00
$800.00
$1,000.00
N/A
N/A
N/A
N/A
N/A
9. Who owns unmaintained vacant properties and why are they vacant?
Research shows that most of these properties are owned by banks or real estate investors
that acquired the property through a foreclosure sale. These properties are often vacant
because the owners expect to increase profits once the property has appreciated in value.
10. Is the state doing anything to address this issue?
In 2012, the General Assembly created the Foreclosed Property Registry, which requires
a foreclosure purchaser to register with the state and transfer the title in a timely manner.
This law was needed because it typically took property owners nine to eighteen months to
transfer the title, which made it difficult for counties to identify the owner responsible for
property maintenance and
tax
payments.
11. How will this affect property taxes?
Long-term vacant properties tend to have lower property values than similar non-vacant
properties. Therefore, many of these properties are assessed lower property taxes than
they would be if the property was being occupied and maintained. This legislation
encourages occupancy and maintenance, which would result in the property taxes that are
on par with other similar non-vacant properties.
@
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12. Why impose fees instead of fines?
Currently, DHCA can impose fines of up to $500 for code violations that are not
addressed within 60-90 days. However, these fines are often contested in court where
judges typically extend the deadline for repairs and reduce or eliminate the fines
altogether. Fees address these issues because they are charged directly to the property
owner for the services provided without the need for judicial intervention. Fees also
speed up the process because they escalate with each additional inspection.
13. Will the coun ty lose money if the property is purchased through a tax sale?
No, unlike other jurisdictions where the property and land values can be lower than the
cost of demolishing or repairing the property, Montgomery County has a healthy real
estate market where the land value can exceed the value of the property itself.
14. How will this affect custom home builders?
As long as the builder can show good faith efforts to sell the property or renovate, then
the property will be exempted from the registry.
15. What impact do vacant property registries have?
The vacant property registry in Wilmington, DE, one of the most successful and most
awarded in the country, had a 40% decrease in vacant properties two years after it was
instituted.
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ROCKVILLE, MARYLAND
MEMORANDUM
October 10, 20 l6
TO:
Nancy Floreen, President, C
, ffice ofManagement and Budget
tor, Depaml1ent of Finance
FEIS for
Bill 38-16, Housing and Building Maintenance Standards···· ForecJosedPropeny
Registl1ltiol1 Penalty; and
Bill 39-16, Housing and Building Maintenanc!4Standards .- Registration of
V
Rcant Property
FROM:
SUBJECT:
Please find attached the fiscaJ
and
economic impact statements for the above­
r\:lenZl1ced
legislations.
JAH:fz
cc; Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin. Offices of the County Executive
Joy Nurmi, Special Assist1nt to the County Executive
Patrick
Lacefield,
Director, Public Infomlation Office
Clarence
J.
Snuggs, Director,
Department
of Housing and Community Affairs
David Platt,
Department
of Finance
Dennis Hettnan, Department
of
Finance
Pofen Salem, Office of Management and
Budg~
Naeem Mia. Office of Management and Budget
®
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Fiscal Impact Statement
Bill 39-16
Housing and Building Maintenance Standards - Registration of Vacant Property
1. Legislative Summary
Bill 39-16 would require owners of certain unmaintained vacant buildings to register
those vacantbuildings with the Director of the Department of Housing and Community
Affairs (DHCA); require owners of certain unmaintained vacant buildings to pay certain
fees; require inspections for
certain
UIimaintained vacant buildings; and generally amend
County law on housing and building maintenance standards.
2. An estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget. Includes
source of information, assumptions, and methodologies used.
DHCAestimates the number of vacant properties in the County is
to
reach approximately
600
to
700 units, and those vacant properties could fall
into
the definition of an
"unmaintained vacant building". Bill 39-16 requires DHCA to establish and maintain a
registry of those unmaintained vacant properties.
Bill 39-16 also requires, at a minimum, an initial inspection of eacl:t unmaintained vacant
building each year. Currently. each DHCA
code
enforcement inspector can inspect
approximately 700 unique units per year. To implement the proposed legislation, DHCA
would require one additional Code Enforcement Inspector III position (Grade 23) to
inspect those unmaintaiued vacant
units.
First
year costs are estimated at
$132;508
for
one new merit position and operating expenses (see below).
..
...
­
.........
..
....
­
FTE
FY17 Estimate
Personnel Cost (COde Enforcement Inspector III, Grade 23)
Operating Expenses '­
On~-Time
1.0
$
;!O3,315
$
29,193
$
8,150
(i.e., Vehicle, IT infrastructure)
On-going
Total (for Year 1)
-.-­
$1.32,5~_
In addition, Bill 39-16 requires a new inspection fee to
be
set under Method 2 adoption.
The fee would be charged for
any
subsequent inspection with a recommended graduated
fee schedule similar
to
the False
Alarm
Fee Schedule. The following fee schedule is used
for demonstration purposes only.
1
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I
Inspection
I
1st
2nd
3rd
Fee*
I
I
i
I
!
$
-
$100
..
_
....
-.­
._._
$200
$300
,
4th
5th
6th
7th
8th
9th
I
--
I
I
I
,
$500
$750
$1iOOO
$l i5oo
$2,000
$2,500
--
-
10th
Consistent\\ith the FalSe
Alarm
Fee Schedule, this schedule carries no fee to be charged
on the initial inspection. The firSt re-inspection (second inspection)canies a fee of
$100.
This fee was derived as follows:
• The average hourly total personnel cost (including fringe) for DHCA's Housing
Code Inspectors is $47.18.
• It
is
assumed that
each
inspection would take approximately two hours (including
travel and inspection time), and the cost is estimated to be $94.37. With modest
overhead for gas, the first re-inspection fee could be set to recoup expenses
$100.
• Reoccurring inspections would
carry
a progressively higher charge.
at
This bill is most applicable
to
non-multifamily properties.
In
FY15.
DIlCA performt-'Ci
26,166 total inspections, ofwhich 13,890 were multifamily inspections. Thebalance
(12,276 inspections) were
non~multifamiIy
inspections. These 12,276 inspections were
performed on 7,623 unique
units;
this equates to 61 percent ofall non-multifamily units
required re-inspection (see below).
Assuming there
are
700 vacant properties requiring inspections and given a 61 perceht re­
inspectiortrate and a
$100 fee on
initial
re-inspections,
Bill
39-16 would generate
approximately $42,700
in revenue
from
initial re-inspections;
It is also reasonable to
assume that a certain percentage ofthose
units
:received initial re-inspections would
require additional re-inspections. DHCA anticipates a nominal
rate of25
percent to be
applied for second re-inspections. This second re-inspection would generate an
additional $21,400
in
revenue which result
in
a total revenue of $64;100
that
is likely to
be
generated from this bill.
2
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Total Inspections
13,890
12,276
7,623
1.61
26,166
14,019
1,308
701
...
!
Total
Units
Inspected
R~quired
Inspections
per unit
6,396
1st
Re~
inspection
Total
Vacant Units
Assumed
700
2nd Re-
fns~ction
Notes
Rate
assumed
for
1st re­
inspection=61
%j
for 2nd
re­
inspection=25%
Approximately
$64,100 could be
generated from
re-inspectionS
Vacant Units Required Re-
inspeC!~~!"
_ _ _ _ _ _ _ _
---f_ __
Re-inspect·.I_o_n_Fe~.
_ _ _. __
-+____
e
427
$100
I
;
107
.•..
$200
Total
$42,727
$21.364
As Bi1l39-16 requires annUal inspections of all vacant properties, this fiscal impact
statement assumes that the fee schedule resets each year, regardless of inspection history,
the first re-inspection would be $100. However, the actual fee schedule
"",ill
be
re­
evaluated based
011
the
final
number of unmaintained vacant properties identified and
registered
by
DHCA.
3.
Revenue and expenditure estimates covering at least the next 6 fiscal years.
The total six-year revenue or expenditure is estimated as below:
FY17
Revenue
·64.~OO
. Expenditure
,
,
l3i,508
FY18
64,100
111,465
FY19
FY26
FY21
64,100
111,465
FY22
64Jl~
Total.
64,100
111.465
64,100
111,465
384.600
689,834
111,465
4. An actuarial analysis through
the
entire amortization period for each bill that would affect
retiree pension or group insurance costs.
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Not Applicable.
5.
An
estimate ofexpenditures related to
County~s
information technology (IT) systems,
including Enterprise Resource Planning (ERP) system.s.
Not applicable.
.
6.
Later actions that may affect future revenue and expenditures if the bill authorizes future
spending.
Not applicable; the proposed legislation does not authorize future spending.
7. An estimate of the
staff
time needed to implement the bill.
Bill 39-16 would require the inspections of an estimated 700 new
uni.ts
annually
designated as unmaintained vacant properties. Currently. each code enforcement
inspector inspects approximately 700 unique units. DHCA estimates
the
implementation
ofthe proposed legislation would require one additional code inspector position as
outlined in #2.
8.
An
explanation ofhow the'addition of new staff responsibilities would affect other
duties.
The
responsibilities as described in Bill 39-16 cannot
be
absorbed within
the
current staff
complement and would require an additional 1.0 FTE.
9.
An
estimate of cost.;; when an additional appropriation
1S
needed.
An
additional appropriation of$132,508 for a Code Inspector IIIposition is needed in the
first year ofimplementation.
10. A description ofany variable that could affect revenue and cost estimates.
Bill 39-16 requires a new inspection fee to be set under Method 2 adoption. The fee
would be
charged
for any subsequent inspection
with
a recommended graduated fee
schedule similar to the False Alarm Fee Schedule. Rates on this new fee schedule may
affect revenues.
1.1. Ranges of revenue or eXpenditures
that
are uncertain or difficult to project.
Not applicable.
12. If a bill is likely to have no fiscal impact, \vhy that is the case.
Not applicable.
@
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13. Other fiscal impacts or comments.
Not
applicable.
14. The following contributed
to
and concurred
with
this analysis:
Clarence Snuggs, DHCA
Tim Goetzinger, DHCA
Chris Anderson, DHCA
Dan, McHugh, DHCA
Pofen Salem, Office of Management and Budget
IO/fO/
ICo
Date
5
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Economic impaet Statement
Bill 39-16, Housing and Building Maintenance Standards - Registration of Vacant
],>roperty
Background:
TIris legislation would:
• require owners of certain unmaintained vacant buildings to register those vacant
buildings \vith the Director ofthe Department of Housing and Community Affairs
(DHCA);
• require owners of certain untnaintained vacant buildings
to
pay certain fines; and
• require inspections
for
certain unmaintained vacant buildings.
1.
The sources of information, assumptions, and methodologies used.
The source ofinfomlation and data includes the DHCA. The Department of Finance did not
develop assumptions or methodologies
in
the preparation of the economic impact statement.
According to DHCA
in
its review of the memorandum dated September 20, 2016, from
Councilmember Hucker to llienibers ofthe County Council,
DHCA
states
that
"it
is
reasonable to estimate that there
are
606 "'- 700 vacant units
in
the County. It is further
reasonable that each vacant property could fall into the definition of
an
'unmaintained vacant
property.... Bill 39*16 would provide DHCA new authority
to
address the vacant properties.
2. A description of any variable that could affect the economic impact estimates.
The economic impact statement does not analyze the impact
OIl
the County's economy
attributed to vacant properties but the impact of providing new authority to DHCA.
Therefore, there
are
nospccific economic variables that could affect the County's economy_
3. The BiU's positive or negative effect, ifany on employment, spending, savings,
investment, incomes, and property values in the County.
Bil139-16
provides new authority to DHCA to address vacant properties. Without specific
data on the condition
and
market value for such properties,
it
is uncertain to
estimate
the
impact on the County's economy,
4. Ifa BiU is likely to have no economic impact,
why
is that the case?
Please see paragraph 3.
5. The following contributed to or concurred with
thiS
analysis:
David
Platt,
Dennis
Hetman, and Robert Hagedoorn. Finance.
..
~~
Alexandre
A.
EspInosa, DIrector
!o
/7.L~!.",--6
_
Date
Department
of
Finance
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